7. II. VIETNAM MARKET ANALYSIS
POLITICAL
- OPEN TO FOREIGN INVESTMENT
- Government is paying more attention to the benefits and interests of customers
- Business firms must meet the requirements on product safety, labor laws, truth in adverts, environmental
issues, and customer’s interest and so on
8. II. VIETNAM MARKET ANALYSIS
MEMBER OF WTO
ECONOMIC
11.01.2007
Conduct tariff reduction
Bind all tariff lines
Remove non-tariff barriers in a time certain
9. II. VIETNAM MARKET ANALYSIS
ECONOMIC
In 2012, Ha Noi at around $ 2,200 /person
STEADY ECONOMIC GROWTH
In Ho Chi Minh City is $ 3,600 / person
10. II. VIETNAM MARKET ANALYSIS
ECONOMIC
Build world-class Emerging market
infrastructure
In 2020: Stabilize the economy
Create a skilled labor force
Ground floor and growing opportunitiesfor foreign exporters and
Strengthen market-based institutions
investors
11. II. VIETNAM MARKET ANALYSIS
Population =
SOCIAL –
89.2 million CULTURE
Culture
Food is a very important part of Vietnamese culture
12. II. VIETNAM MARKET ANALYSIS
SOCIAL - CULTURE
Consumption habits
- Vietnamese like to buy at a cheap price
- Careful in buying decision
- Not loyal to one product, but some are likely to choose the products they
trust
- Vietnamese prefer to try products by themselves than to believe
salespersons
13. II. VIETNAM MARKET ANALYSIS
TECHNOLOGY
- Vietnam is a rapidly developing country in technology.
- Modern and high-tech equipment are in use
- Standard of living has improved is offered various products and
services on demand
14. II. VIETNAM MARKET ANALYSIS
LEGISLATION
-Enacted Constitution in 1992
-The Law on Investment in Viet Nam
-The Law on Enterprises in Vietnam
-Weak and evolving legal system
-Judiciary is controlled by the ruling party (CPV).
-Potential government interference to satisfy their own agenda
15. II. VIETNAM MARKET ANALYSIS
COMPETITION
The Vietnamese competitors: sidewalk bakeries
16. II. VIETNAM MARKET ANALYSIS
COMPETITION
The foreign competitors:
KFC
Operated for 16 years in Vietnam (1997)
134 shops
Young population and children
17. II. VIETNAM MARKET ANALYSIS
COMPETITION
The foreign competitors:
Loatteria
Invested in Vietnam from 1998
146 restaurants
Steady expansion strategy
18. II. VIETNAM MARKET ANALYSIS
The cost of franchising
Regarding the franchising fees, the initial fee would be no less than
$45.000
Become a mcdonald’s partners , they must be very rich.
19. III. SWOT ANALYSIS
STRENGTHes
-Brand equity…..world wide
-Enthusiastic and responsible staffs
-Strong public relations strategies
-Good quality assurance and good customer service
-Low price of products
-Ability to learn from competitors’ mistakes
21. III. SWOT ANALYSIS
OPPORTUNITies
-International expansion
-Increase in demand for fast food in Vietnam
-Innovation in product and services
-Fast food penetration still low which is --an opportunity for growth
-Huge pool of skilled labor force
22. III. SWOT ANALYSIS
THREATS
-Strength of existing competitors
-More local and foreign competitors rising quickly
-Government policies on fast food and healthy meal
-Outbreak of bird flu
23. IV. MARKET PRESENTATION STRATEGY
PRODUCT STRATEGIES
1. Permanent Product Strategy
2. Temporary Product Strategy
3. Local Product Development Strategy
4. Local Adaptation Strategy
24. IV. MARKET PRESENTATION STRATEGY
PRODUCT STRATEGIES
1.Permanent Product Strategy
-Menu is permanent
-There is always something familiar for consumers on
the menu
25. IV. MARKET PRESENTATION STRATEGY
PRODUCT STRATEGIES
2.Temporary Product Strategy
-The McRib - product is offered only seasonally
-The Big Ocean was offered only for a few months in 2007
26. IV. MARKET PRESENTATION STRATEGY
PRODUCT STRATEGIES
3. Local Product Development Strategy
Local customers have foods to fit their tastes.
27. IV. MARKET PRESENTATION STRATEGY
PRODUCT STRATEGIES
4. Local Adaptation Strategy
-Quality breakfast
-Convenience
-Menu additions
-Value for money
-Delivery services
29. IV. MARKET PRESENTATION STRATEGY
PROMOTION STRATEGIES
Spokesman - Ronald McDonald
Radio and television advertising
"Healthy" menu items
30. IV. MARKET PRESENTATION STRATEGY
DISTRIBUTION STRATEGIES
-HCM city is the first best city conditions restaurant to open
-Expending in other large urban centers
-McDonald’s will partner with the Vietnamese Ministry of Agriculture
31. IV. MARKET PRESENTATION STRATEGY
PLANT OF IMPLEMENTATION
---Using a scheme that will satisfy Vietnamese employees
---Conducting a comprehensive market survey of competitors’ store locations
in Vietnam combined with demographic data
---Continuing to have the right products at the right price
---Distributing outlets into showplaces
---Keep promoting the brand in Vietnam
32. IV. CONCLUSION
Maintaining the core strengths
Emphasis on consistency and quality
Testing with innovative options
McDonald’s fast-food image
