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A 2021 Yellow Cab Pizza Co.

Global Marketing Plan in Vietnam

Presented to:
MAX’s Group

Through the
Marketing and Advertising Department
Ramon V. Del Rosario College of Business
De La Salle University - Manila

In Partial Fulfillment of the Course


International Business Agreements COBIBMA C31

Prepared by:
Avila, Samantha Cleryce P.
Diosana, Ailh John A.
Lim, Lance Jordan D.
Santos, Kristine Aidette L.
Santos, Martina Victoria A.

Submitted to:
Bienvenido Lorenzo Castañeda Encarnacion, MSM

Submitted by:
May 9, 2020

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TABLE OF CONTENTS

I. Background………………………………………………………………………………..1
A. Comparative Industry Analysis…………………………………………………….1
B. Comparative Company Analysis…………………………………………………..8
1. Product……………………………………………………………………..8
2. Price……………………………………………………………………….10
3. Place……………………………………………………………………….12
4. Promotion………………………………………………………………….13
5. Sales……………………………………………………………………….14
6. Direct Competitors………………………………………………………..15
7. Indirect Competitors……………………………………………………...15
II. Comparative S.T.E.E.P.L.E. Analysis…………………………………….…………….16
III. Porter’s 5 Forces………………………………………………………………………...33
IV. S.W.O.T Analysis………………………………………………………………………...34
V. Statement of the Problem……………………………………………………………...38
VI. Objectives of the Study………………………………………………………………...38
VII. Methodology……………………………………………………………………………..38
A. Research Design………………………………………………………………...38
B. Research Method………………………………………………………………...39
C. Research Participants…………………………………………………………...39
D. Research Instrument……………………………………………………………..39
E. Scope and Limitations…………………………………………………………....39
F. Hypotheses………………………………………………………………………..40
VIII. Market Research………………………………………………………………………...40
A. Market Size………………………………………………………………………..40
B. Market Share……………………………………………………………………...41
C. Market Potential…………………………………………………………………...42
D. Data Analysis……………………………………………………………………...42
1. Interviews………………………………………………………………….42
2. Profile of the Participants………………………………………………..43

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3. Purchase/Usage……………………………………………………….43
4. Awareness and Trial…………………………………………………...44
5. Attitude…………………………………………………………………..45
a. Marketing and Advertising……………………………………..45
b. Product Pricing………………………………………………...46
c. Place and Distribution………………………………………….47
d. Group or Peer Influence……………………………………….47
e. Health Consciousness………………………………………….48
f. Service Quality………………………………………………….48
IX. Framework of Findings in Relation to SOP ………………………………………..49
X. Strategy………………………………………………………………………………….51
A. Product Development and Innovation Initiatives……………………………….51
1. Vegan Food……………………………………………………………...51
2. D.I.Y. Pizza………………………………………………………….......52
3. 100% Biodegradable Packaging……………………………………….53
4. Delivery Charge…………………………………………………………54.
B. Advertising Program……………………………………………………………..55
1. Search Engine Optimization…………………………………………….55
2. Website Renovation……………………………………………………..56
C. Sales and Promotion Program…………………………………………………..57
1. Menu Modification………………………………………………………..57
2. Student Discounts………………………………………………………..58
3. Seasonal Discounts……………………………………………………...59
D. Personal Selling…………………………………………………………………..60
1. Staff Training: Behavioral Modification…………………………………60
E. Public Relations Program………………………………………………………..60
1. Influencer Collaborations: Youtube……………………………………..60
2. Influencer Collaborations: Instagram…………………………………...62
3. Influencer Collaborations: Tiktok………………………………………..62
4. Ecological Initiative: Partnership with Zero Waste
Saigon Organization……………………………………………………..63
F. Social Media Marketing………………………………………………………….64
1. Sponsored Posts………………………………………………………...64

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2. Eat Healthy, Stay Healthy…………………………………………………64
3. Short Story Commercials…………………………………………………65
4. Online Games and Competitions…………………………………………66
G. Direct Marketing…………………………………………………………………...66
1. Email Promotions………………………………………………………….66
H. Gantt Chart………………………………………………………………………....67
I. Logistics…………………………………………………………………………….69
1. Transportation……………………………………………………………...69
2. Inventory…………………………………………………………………...71
3. Location…………………………………………………………………….72
4. Take - out Operations……………………………………………………..73

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List of Tables

Table 1. Products, Variations, and Sizes of Yellow Cab Philippines…………………………….8


Table 2. Product, Variations, and Sizes of Yellow Cab Vietnam………………………………...9
Table 3. Comparative Price Range of Yellow Cab Competitors………………………………....11
Table 4. Vietnam Yellow Cab Prices……..………………………………………………………..11
Table 5. Porter’s 5 Forces Analysis of Yellow Cab Pizza Co. Vietnam……..………………….33
Table 6. SWOT Analysis……..…………………………………………………………………….34
Table 7. TOWS Analysis……..…………………………………………………………………….35
Table 8. SOP Findings Framework……..…………………………………………………………49
Table 9. Vegan Food Strategy Data from Respondents with Weak Purchase Intent………….52
Table 10. D.I.Y. Pizza Strategy Data from Respondents with Weak Purchase Intent………...53
Table 11. Biodegradable Packaging Strategy Data from Respondents with Weak
Purchase Intent……..……………………………………………………………………………...54
Table 12. Delivery Charge Strategy Data from Respondents with Weak Purchase
Intent……..………………………………………………………………………………………….55
Table 13. Website Renovation Strategy Data from Respondents with Weak Purchase
Intent……..………………………………………………………………………………………….57

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List of Figures

Figure 1: Number Growth of Restaurant Outlets in Vietnam…………………………………….2


Figure 2: Sales Growth of the Restaurant Industry in Vietnam………………………………....3
Figure 3: Market Share of the Restaurant Industry in the
Foodservice Market in the Philippines…………………………………………………………….6
Figure 4: Yellow Cab Pizza Co Company Insights: Revenue…………………………………..14
Figure 5. Philippine Census from 1990 - 2015………………………………………………….16
Figure 6. Registered Number of Live Births and Percentage
Change in the Philippines: 2008 - 2018………………………………………………………....17
Figure 7: Consumer Usage of Online Delivery Applications by Age Demographic…………..20
Figure 8: Number of People Using Social Media Platforms in 2018…………………………...21
Figure 9: Inflation Rate in the Philippines from February 2019 to February 2020……………22
Figure 10: Inflation Rate in the Philippines from 2015 - 2020………………………………….22
Figure 11: Philippines GDP Growth Forecast…………………………………………………...23
Figure 12: Forecast of the Inflation Rate in the Philippines from 2021 - 2025………………..24
Figure 13: Inflation Rate in Vietnam from 2013 - 2018…………………………………………25

References…………………………………………………………………………………..…….75
Appendix………………………………………………………………………………………..….79

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EXECUTIVE SUMMARY
Yellow Cab Pizza Co. is a pizza restaurant that operates under Max’s Group, a
company that specializes in food chains in the Philippines. However, the company has
been attempting to expand its horizons to other countries. Yellow Cab Pizza Co. had its
debut in Vietnam in 2017 in partnership with Blue Star Food Corp. The reason why
Yellow Cab Pizza chose to open in Vietnam is due to the country’s given population.
Around 60% of the population is under the age of 35, which is the perfect target market
for Yellow Cab Pizza. The expansion is important to Yellow Cab Pizza to increase its
brand awareness and obtain the upper hand on other pizza competitors in Vietnam. With
the country’s bustling lifestyle and increasing number of restaurant chains, Yellow Cab
Pizza fits right in the fray.
Stronger competitors have taken over, and customer views on the brand are not
the best. In order to turn the situation around, opinions and comments were gathered
regarding customer wants and needs. This was done in order to properly identify the
lacking points of Yellow Cab Pizza in Vietnam, and create solutions to solve this. The
seemingly biggest negative of the brand is its lack of product diversity. The Vietnamese
have different tastes from Filipinos. Yellow Cab Pizza’s Vietnam Division’s main
objectives are to: (1) Improve the customers’ image on Yellow Cab Pizza, and (2)
properly adapt to the Vietnamese food preference and taste. Product development and
innovation initiatives have been implemented in order to solve these two problems of the
brand. Advertising and marketing strategies formed to increase brand awareness,
partnerships with local institutions in order to gain a better perspective of the country,
implementation of Yellow Cab Pizza features that were only available in the Philippines,
and creating events and occasions to increase customer interactions. These are all
some of the few methods that were made in order to tackle the main issues of Yellow
Cab Pizza in Vietnam. With the help of the survey and interview results as a basis for
customer wants and needs, Yellow Cab Pizza can dominate the pizza market in Vietnam
and become the brand that is the top-of-mind pizza restaurant.

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I. Background

Vietnam is a fast growing young country. According to Abadilla (2017) of


Business Inquirer, about 60% of the 95 million population is under 35 years old, and the
country’s middle class is expected to double to 33 million people by 2020. He adds that
this young and affluent demographic is leading the change of the F&B (food and
beverage) industry and a lot of western and casual dining restaurants are flourishing in
Vietnam. In addition, they mention that pizza is one of the most preferred food offerings.

The reporter further states that Blue Star Food is a growing F&B company in
Vietnam. It has operated more than 45 outlets of Baskin Robbins in Vietnam since 2011,
and has been in partnership with Max’s Group Inc. (MGI) in opening Yellow Cab
branches in Vietnam. The company believes that Yellow Cab Pizza, with its
contemporary and hip look and feel inspired by New York, will appeal to their country’s
demographic and market. Furthermore, the reporter adds that Yellow Cab Pizza Co.
mentioned that Max’s Group is a company that has extensive experience not only in the
Philippines but also in the international market, thus this is why they have decided to
agree on partnering with them. Since then, the company has continued to work closely
with MGI in bringing the best quality pizza experience to Vietnam ever since it has made
its debut in 2017.

A. Comparative Industry Analysis


The Restaurant Industry In Vietnam

According to Euromonitor (2020), over the review period, full-service restaurants


in Vietnam saw current value sales rise at a CAGR of 13% the previous year. This was
mainly a result of the rising unit prices in most restaurants, alongside the rising number
of outlets, as well as the increasingly busy lifestyles of consumers,especially in big cities
such as Ho Chi Minh City and Hanoi. Indeed, with less time, many employees, especially
single ones were increasingly eating out rather than self-cooking at home. The report
further states that in Vietnam, full-service restaurants are a highly diverse channel that
encompasses numerous different styles and cuisines from various regions/countries.
Product offers vary considerably, ranging from small independent restaurants with only

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one special dish, to large,high-end restaurants offering a vast array of dishes
(Euromonitor, 2020).

Figure 1: Number Growth of Restaurant Outlets in Vietnam. Retrieved March 12, 2020 from :
https://www.euromonitor.com/full-service-restaurants-in-vietnam/report

As seen in Figure 1, an analysis by the researchers states that it is evident that


the restaurant industry is still continuously growing in popularity. The 8% current value
growth rate seen in 2019 was much lower than the 31% rise recorded in 2018. The fast
growth of 2019 was mainly a result of the rapid increase in unit prices and, therefore,
spend per transaction of most restaurants as a result of the high inflation and rising food
prices, as well as living costs. Although unit prices continued to increase in 2012, these
increases were lower due to the economic downturn, which negatively affected
consumer spending power, as well as category operators. As a result, many restaurants
in 2012 engaged in promotional activities that focused solely on price in order to
stimulate demand and increase sales. For instance, Pizza Hut (Pizza Hut Vietnam, Ltd.)
ran the “50% Off Everyday” campaign, which offered specific discounted dishes on a
daily basis

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Figure 2: Sales Growth of the Restaurant Industry in Vietnam. Retrieved March 12, 2020 from:
https://www.euromonitor.com/full-service-restaurants-in-vietnam/report

In Figure 2, it depicted that there is a steady sales growth of the restaurant


industry in Vietnam, making it a good business to venture in for ones who wish to enter
this market in the future. Leading brands such as Pizza Hut and The Pizza Co invested
heavily in new outlets. Smaller chains, such as Pizza 4P’s also opened a higher number
of new outlets during 2018. In addition to outlet expansion, all players also focused on
their menus. New food and beverages, and price promotions are regularly launched to
encourage customers to return. With high prospects for Vietnamese consumer
foodservice, an increasing number of international chains entered the country to gain
share. For example, the popular hotpot brand Haidilao entered Vietnam in early 2019 in
Bitexco Tower, one of the most premium locations in the central business district of Ho
Chi Minh City.

Furthermore, the report states that casual dining full-service restaurants


remained unpopular in Vietnam thanks to the fact that the majority of full-service
restaurants preferred to position themselves as either economy or high-end
establishments. Furthermore, in Vietnam, similar to cafés/bars, many international and
local chained restaurants chose to expand through company-owned stores. Another

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popular method through which players chose to expand was through franchising;
however, this method required more complicated measures to adhere to the standards

Market Trends for the Food Service Industry in Vietnam

Mordor Intelligence (2020), states that with increasingly busy lifestyles in the
country, take-away and home delivery continued to be increasingly popular in 2012, to
reach a value share of 11% and 6% respectively. Despite the consistent increase, over
the review period, many full-service restaurants still did not pay much attention to
take-away or home delivery, primarily because the take-away customer base was much
lower than that for eat-in. This reflects the fact that many Vietnameseconsumers still
preferred eat-in services when they did not want to cook for themselves.

Continuing its upward trend, the industry report saw drink sales saw a slight
increase in share in 2012 to account for 20% of sales. In Vietnam, the margin of drink
sales is typically higher than for food sales, thus many operators tried to place more
effort on up-selling drinks, offering more variety on the menu, such as fruit/vegetable
juice.

In Vietnam, local independent operators accounted for the majority of sales within
the full-service restaurants category, mainly thanks to their extensive knowledge of
customers’ tastes and preferences, as well as the Vietnamese business environment.
While many of these players chose to compete on price, international players typically
preferred to focus on their brand name and high-quality service.

The industry report mentioned further states that there was no major advertising
campaign within the full-service restaurants category in the previous year.
Word-of-mouth recommendation is considered to be the most effective method for
operators in this category, with many Vietnamese people choosing a restaurant through
their friends’ or relatives’ recommendation. In addition, thanks to the development of the
media, more foodservice operators started to use newspapers and magazines to
introduce their restaurants. Pizza Hut, for example, often advertised its promotional
programmes through the Tuoi Tre newspaper. Other full-service restaurants utilised

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online platforms, such as Hotdeal Co Ltd (hotdeal.vn) or VC Corp (muachung.vn) in
order to not only introduce their restaurants but also boost sales. Towards the end of the
review period, this trend became more pronounced (Mordor Intelligence, 2020).

The Restaurant Industry in the Philippines

In a news article by CNN Philippines (2020), they mention that the restaurant
industry in the Philippines has improved over the m years. It has been a part of the
Filipino culture to dine out during work breaks and when celebrating different occasions.
The introduction of foods like hamburger, spaghetti, sushi, Thai food and even Korean
dishes has contributed to Filipinos’ food preference.

The Philippine restaurant industry is growing at a CAGR of 4.5% during the


forecast period (Market Research, 2019). With a strong economic performance in recent
years and the increase in the number of foodservice establishments, the sales in the
Philippines foodservice market continued to increase. Moreover, establishments
increased due to a rise in the frequency of eating out influenced by the growing
affluence, increasingly busy lifestyles, the desire for convenience and the entry of
several international brands in the Philippines foodservice industry.

In addition to this, the research mentioned showed that this industry in the
Philippines is highly driven by the rise in value-conscious consumers willing to try new
restaurants with a wide range of menu options including interesting international and
local cuisines, which also cater to an increasingly busy lifestyle, will likely find favor in
this market going forward. The market offers the services provided by full-service
restaurant, self-service restaurant, fast food, street stall and kiosk, cafe and bar, and
100% home delivery restaurant structured as independent consumer foodservice,
chained consumer foodservice.

The Market Share of the Restaurant Industry in the Philippines

In the same report, marketresearch.com mentions that the Philippine foodservice


market is highly dominated by independent restaurants. However, chained restaurants

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are expected to grow at a faster pace. Self-service restaurants in the Philippines are
more appealing to the mass consumers for its rich choices of dishes at competitive
pricing among the chained restaurants. In conclusion, the restaurant industry is
dominating a majority of the market share in the food service industry as it can be seen
in the graph provided below.

Figure 3: Market Share of the Restaurant Industry in the Foodservice Market in the Philippines. Retrieved
March 12, 2020 from: https://www.mordorintelligence.com/industry-reports/philippines-foodservice-market

Key chained restaurants which are self-service restaurants in the country include
Golden Arches Dev Corp (with the McDonald’s brand), Yum! Brands, (Pizza Hut and
KFC), Max’s Group, and Shakey’s. Economies of scale are thus, an important factor of
profit margin for players, especially in the foodservice market. The quick-service
restaurants and foreign food chains such as McDonald's, Yum are gaining prevalence
owing to the preferences of the growing millennial.

Market Trends in the Restaurant Industry in the Philippines

As reported by euromonitor.com (2019), The Philippines recently saw the rise of


various new cuisines and food products, because Filipinos are becoming more aware of

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different options and new flavours. North American and Asian restaurants will be
amongst the key growth drivers in full-service restaurants.

In addition to that, full-service restaurants continue to expand, especially outside


Metro Manila, especially in Visayas and Mindanao. Major retailers and shopping centre
developers are moving to these areas, which presents the opportunity to offer products
and services to this untapped market. One of the key trends that shaped dining in the
Philippines in 2018 was the growth of unlimited Korean BBQ restaurants, which
mushroomed in Metro Manila and even in the provinces. Korean BBQ or samgyupsal
restaurants were already mainstays in the country, but received greater attention in 2018
– this was even called a “craze”, with several chained restaurants helping to drive
awareness of the concept.

The Comparison of the Restaurant Industry in Philippines and Vietnam

Collectively, the restaurant industry in both countries isn’t going anywhere, and is
continuously showing to be steadily popular and growing figure wise as shown by the
numbers. An effect of this industry boom is the widened taste preference of both
countries being more open to different cuisines, and preference of eating out rather than
staying at home to cook. This in turn gives international food companies a big
opportunity to venture their businesses into these countries, and for other local
entrepreneurs a chance to enter the market as well and experiment. A big factor would
also be the influx of tourism in the countries, which doesn’t limit target markets to just the
country’s locals, making it an industry of huge possibilities in a business perspective.

The restaurant industry is truly a growing business, especially in Asian countries


such as the Philippines and Vietnam who have shown based on figures, research,
customer preference and statistics that it is a growing part of their food culture now as
well.

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B. Comparative Company Analysis
1) Product

Yellow Cab Pizza Co. is a Philippine based pizza chain that sells New York-style
pizza with premium ingredients and generous toppings. Serving their customer’s the full
New York pizza experience in one visit, New York’s famous pizza style is for the crisp
and slightly toasted bottom, chewy and thick middle, complemented with a gooey top
and generously layered high-quality toppings. There are three available sizes for every
pizza, but pizzas are not the only product Yellow Cab is known for. Their menu sports
complementary foods such as chicken, pasta, and ice cream to pair with your pizza.
Accompanied with an assortment of solo meals and combo meals called “Squad Stuff”.
VIetnamese people are more known for street food and greener options, and that is why
Yellow Cab has tweaked some options in their menu in Vietnam.

Currently, the following are the main choices of Yellow Cab Pizza Co. in the
Philippines and Vietnam, along with their underlying variety of options. The restaurant is
open 24/7, as well as their delivery.

Table 1. Products, Variations, and Sizes of Yellow Cab Philippines.

PRODUCT VARIATIONS SIZES


New York Classic
Classic Hawaiian
Manhattan Meatlovers
Garden Special
BBQ Special
Roasted Garlic and Shrimp
Signature #4 Cheese 9", 12", 15", and 18"
New York’s Finest
Four Seasons Original
PIZZA Legendary Four Seasons All Meat 12", 15" and 18"
Wings Dry Rubs: 4, 10, and 16pcs
Sriracha
Chipotle
CHICKEN Poppers Lemon Pepper Regular and Large

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Sauces:
Sweet Soy
Garlic Parmesan
Hot Chix
Thigh Fillet Bites 6pcs with gravy
Charlie Chan
Chicken Alfredo
Spaghetti and Meatballs
Shrimp Alfredo Regular and Large
Shrimp Aglio Olio Large
Baked Mac Solo

PASTA Mac & Cheese Solo

Table 2. Product, Variations, and Sizes of Yellow Cab Vietnam.


PRODUCT VARIATIONS SIZES
New York Classic
Roa
sted Garlic & Shrimp
#4 Cheese
Hawaiian
Classic Barbecue Chicken 6", 10", 14", and 18"
Cheesy Seafood
New York’s Finest
Manhattan Meatlovers
Premium Teriyaki Salmon Pizza
Pescatore
Four Seasons
Deluxe Smoked Bacon and Apple 10", 14", and 18"
Dear Darla Original
PIZZA Special Roasted Garlic and Ricotta
Garlic Parmesan
BBQ
Poppers Hot Sauce Reglur
Garden Salad Meal
APPETIZERS

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Baked Potato Wedges Regular
Twice Baked Potato Halves Three halves
Hot Wings
Garlic Parmesan Wings
Mango Habanero Wings
WINGS Korean BBQ Wings 4, 6, and 8 pcs
Seafood Pasta
Charlie Chan
Chicken Alfredo
Spaghetti and Meatballs
PASTA Shrimp Aglio Olio Regular
Chicken
Poppers Rice
RICE Wings Rice Teriyaki and Hot Sauce Meal

2) Price

Yellow Cab Pizza Co. presents several food offerings that have a price range of
Php99 to Php1155, with their main product ranging from Php 420 to Php 1155 in the
Philippines. While the price range in Vietnam is currently at VND 59000 to VND 559,000
in general and their pizzas ranging from VND 69,000 to VND 559,000, converted in
pesos they are Php 130 to Php 1201.75 and Php 152 to Php 1201.75 respectively. Their
other products, like the chicken category, have a price range of Php 190 to Php 685,
pasta at Php 99 to Php 480, and lastly Php 99 for the ice cream. All of Vietnam
branches’ pasta choices are priced at VND 99,000, chicken and salad at VND 59,000,
and are converted to peso at Php 219 and Php 130 respectively.

Presented below are tables of the competitive grid of price ranges between
Vietnam Yellow Cab Menu and their direct competitors.

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Table 3. Comparative Price Range of Yellow Cab Competitors
Yellow
Cab Pizza 4P'S Pizza Pendolasco Vittorio Pizza

69,000 to 559,000 150,000VND to 220,500 to 294,000


VND 330,000VND VND 115,000 to 230,000 VND

Table 4. Vietnam Yellow Cab Prices

PRODUCT VARIATIONS SIZES PRICES


New York Classic
Roasted Garlic & Shrimp
#4 Cheese 69,000,
179,000,
Hawaiian
6", 10", 14", and 299,000, and
Classic Barbecue Chicken 18" 489,000 VND
Cheesy Seafood
New York’s Finest
249,000,
Manhattan Meatlovers
429,000, and
Premium Teriyaki Salmon Pizza 599,000 VND
Pescatore
219,000,
Four Seasons
349,000, and
PIZZA Deluxe Smoked Bacon and Apple 10", 14", and 18" 559,000 VND
Fries Reglur 19,000 VND
Garlic Parmesan
BBQ
Poppers Hot Sauce Regular
Garden Salad Meal
Baked Potato Wedges Regular

APPETIZER Twice Baked Potato Halves Three halves 59,000 VND


Hot Wings 69,000,
89,000, and
Garlic Parmesan Wings 119,000 vnd
Mango Habanero Wings
60,000,
WINGS Korean BBQ Wings 80,000, and

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100,000 VND
Seafood Pasta
Charlie Chan
Chicken Alfredo
Spaghetti and Meatballs
PASTA Shrimp Aglio Olio Regular 99,000 VND
Chicken
Poppers
Rice
Wings
RICE Rice Teriyaki and Hot Sauce Meal 49,000 VND

Relative to other local and surrounding pizza brands, Yellow Cab’s prices seem
to be at a higher cost. This type of pricing is most likely to be the premium pricing
strategy or image and prestige pricing, wherein a practice of pricing products significantly
higher than similar products is adopted. This is done to exploit customer’s tendency to
equate price with reputation and quality. Increased profits and improved profits are
positive possibilities of adopting premium pricing. However this might limit one’s
customer base due to it targeting more top-tier clients and could lead your customer’s to
find cheaper alternatives (Maguire, 2015).

3) Place

Yellow Cab Pizza Co. first established its first branch in Makati Avenue,
Philippines wayback April 2001, since then Yellow Cab has established branches in
Brunei Darussalam, Qatar, Saudi Arabia, Singapore, Hawai, United Arab Emirates,
Vietnam and Oman summing up to 124 branches. Max’s Group Inc. struck an agreement
with Blue Star Food Corporation to establish 12 branches in Vietnam in the next 5 years
back in 2017 (Gonzales, 2017). To date, there are 7 Yellow Cab branches in Vietnam
according to their website. The store’s main branding is that of retro-industrial interiors
and an open kitchen that give off an overall New York Pizza Factory setting that is sure
to appeal to local customers. This innovative way of branding has led many consumers
to believe that Yellow Cab origins are not local but international. A secondary channel
that Yellow Cab Pizza Co. utilizes is creating its own website and application to increase

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its presence online and to reach a bigger crowd. These online alternatives give the
customer the luxury of choosing from their extensive menu in the comforts of their own
homes anytime and anywhere. Being one of the first to establish a 24 hour pizza place in
the Philippines, they also offer 24/7 delivery. The website and application lets a customer
locate the nearest branch to their current location in the following countries mentioned
before. Yellow Cab is also open to third party applications and apps such as FoodPanda
that allow cash on delivery and credit card transactions for the convenience of the
customers. However, despite there being various 3rd party delivery applications in
Vietnam such as Vietnammm, Foody, Foodpanda, and more recent ones like GrabFood,
Go Send by Go Viet, and Lalamove, Yellow Cab is only available on the more
established delivery applications (Tu, 2018). Additionally, Yellow Cab has several
hotlines available for your perusal and use. The standard cost for delivery fee for Yellow
Cab in the Philippines is Php 30.00 per transaction while in the Vietnam branch 18,540
Vietnamese Dong is charged on top of the bill if you wish to get your order delivered.

4) Promotion

Their website and application not only serves as a means to order from Yellow
Cab, but also a channel to give updates on promos and new products that they will soon
be adding. In cooperation with their presence in social media platforms, they have a
sturdy relationship built with their customers since they have 1.5 million likes on their
official Facebook account. In their Instagram account, their current posts are pictures
and stories of food taken by customers that have either been sent to them or tagged on.
While their Twitter and Facebook official accounts are more on giving updates on new
promos that customers may avail of and on which branches are not available. This is
also a useful channel when it comes to giving out any information that Yellow Cab Pizza
Co. would like to convey to their customers. Not only does it increase and solidify their
brand recognition and awareness, but it also a good platform to voice out opinions and
suggestions for customers.

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5) Sales

Max’s Group is the restaurant group that Yellow Cab Pizza is under. According to
the Max’s Group website, the company has generated systemwide sales of Php 4.4
billion for the first quarter 2018, which is a 13% rise from the Php 3.9 billion from the
previous year of 2017. Total revenues rose as well, by 11% to Php 3.2 billion from Php
2.9 billion in 2018 and Php 2.7 billion from Php 2.4 billion in 2017. The strong showing is
attributed to a solid same store sales performance of 5% and a 10% increase in overall
transaction volume, primarily indicating guarded market share position (Max’s Group,
n.d.) The company’s commissary sales went up 21% to Php 377.7 million from Php
311.4 million as franchising operations continue to flourish. However, the franchising
income has decreased by 15% to Php 152.6 million for first quarter 2018 from P180.1
million. This was due to the lower development agreement fees booked compared to the
same quarter last year.

Revenue

Figure 4: Yellow Cab Pizza Co Company Insights: Revenue. Retrieved on April


10, 2020 from: http://tiny.cc/nejlnz

In the 4th quarter of the year of 2018, Yellow Cab Pizza had a revenue of
Php 300,000,000. For the 1st, 2nd, 3rd, and 4th quarter of 2019, their revenue
was Php 450,000,000, Php 350,000,000, Php 350,000,000, and Php

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495,000,000, respectively. Their next recorded revenue is for the 1st quarter of
the year 2020, which is Php 495,000,000.

6) Direct Competitors

Direct competitors are other competing businesses that more often than not
target the same customer groups, and sell similar goods and products (SBBC, 2011).
The pizza and fast food industry in the Philippines has strong brands and companies
that are Yellow Cab Pizza Co’s direct competitors. To name a few, Domino’s Pizza,
Greenwich, Pizza Hut, S&R Pizza, and Shakey’s Pizza are prime examples of pizza
restaurants in the Philippines. These businesses share similar products with Yellow Cab
Pizza Co., as their menus also include pizzas, chicken and pasta as their main meals,
and only deviate in a few appetizers and desserts. In regards with branding and other
similarities, these pizza places are well known and loved in the Philippines.

However, in Vietnam, their locals are not as fond of fast food as Filipinos are, but
there are a few noteworthy pizza restaurants in Vietnam. These direct competitors are
Pizza 4P’s, Pizza Pendolasco, Espy Pizza, Vitorrio Pizza, Pizza and BIA, and Oliver’s
Pizza. Conveniently located in Ho Chi Minh City. These pizza restaurants all share close
resemblances with Yellow Cab’s Menu, but with different backgrounds and themes.

7) Indirect Competitors

In regards with Indirect Competitors, these are competitors that provide slightly
different products or different products altogether yet still cater to similar customer
groups and also want to satisfy the same needs (SBBC, 2011). Indirect competitors for
Yellow Cab Pizza Co. would be the likes of Burger King and KFC. These indirect
competitors noticeably specialise in different products of their own like burgers, chicken,
burger + burrito concept, and pastries respectively. Additionally, both Burger King and
KFC share a similar target market with Yellow Cab pizza for adults and young adults,
leaning on the male market (Bhasin, 2018).

15
I. Comparative STEEPLE Analysis
Social

The Philippines has a population of 100.98 million residents as of 2015 according


to the 2015 Census, as seen in Figure 5, with a growth - rate of 1.72% each year
(Philippine Statistics Authority, n.d.). According to the organization, a total of 1,668,120
live births were registered in 2018, which is equivalent to a crude birth rate (CBR) of 15.8
or 16 births per thousand population. As seen in Figure 6, the number of registered live
births showed a decreasing trend, noticeably from 2012 to 2018. The decrease in the
last six years was 6.8 percent, from 1,790,367 live births in 2012 to 1,668,120 recorded
births in 2018. More males (870,832 or 52.2%) were born than females (797,288 or
47.8%), which resulted in a sex ratio at birth of 109 males per 100 females.

Figure 5. Philippine Census from 1990 - 2015. Retrieved May 2, 2020 from
https://psa.gov.ph/content/highlights-philippine-population-2015-census-population

16
Figure 6. Registered Number of Live Births and Percentage Change in the Philippines: 2008 -
2018. Retrieved May 5, 2020 from https://psa.gov.ph/vital-statistics/id/144897

Vietnam has a population of 95.54 million residents as of 2020, with a growth -


rate of 0.91% each year (World Population Review, n.d.). The Central Intelligence
Agency World Factbook has also produced some interesting figures in relation to life
expectancy and these stand at relatively healthy levels. The organization claims that in
2011, those figures stood at 71.33 years overall, which could be divided between males
at 68.52 years and females at 74.33 years. This is arguably one of the most diverse
countries on earth when it comes to ethnicity splits and in fact, the Vietnamese
government recognizes no less than 54 ethnic groups within the country. The breakdown
is as follows: Kinh (Viet) at 85.7%, Tay 1.9%, Thai 1.8%, Muong 1.5%, Khmer 1.5%,
Mong 1.2%, Nung 1.1%, Hoa 1%, other ethnicities 4.3% (Central Intelligence Agency,
n.d.). In terms of health care and access to clean drinking water and improved sanitation
facilities, the same organization states that 7.1% of the GDP is spent in healthcare,
resulting in .82 professional physicians available per 1,000 residents and 2.6 beds
available in healthcare institutions per 1,000 individuals. When we examine the access
to drinking water, 97.6% of the population has improved access, while only 78% have

17
improved access to improved sanitation facilities. 94.5% of the population aged over 15
is literate.

Dining out in restaurants or malls has been an escalating trend for quite some
time in the Philippines. More Filipinos are opting to eat out as opposed to having their
meals at home as depicted by a shopper trend report with 1,783 males and females as
participants aged 16-65 years old, belonging to different socio-economic classes in
urban areas throughout the country (Nielsen, 2014). Additionally, malls in the big cities of
the Philippines may be considered the centers of lifestyle communities, as well as
cultural landmarks (Ortigas Malls, 2019). The Philippines even contains three of the
world’s largest malls. One may argue that the manner in which individuals allocate their
leisure time is what depicts their culture, and only in the Philippines is “malling” used as
a verb, which is an implication of its central importance in the daily lives of its citizens
(Rico, 2017). This may prove advantageous to Yellow Cab as they are present in
multiple malls in the Metro, as well as around populated schools.

Healthy eating has been an increasingly popularized trend worldwide, and the
Philippines is no exception. Kantar Worldpanel’s study on Filipino food and beverage
consumerism argues that there is an indication of a change in the lifestyle of Filipinos
which lean more towards health and wellness (Miraflor, 2017). In fact, in a study
conducted on 89 countries around the world, the Philippines ranked 13th and 14th most
health conscious when it comes to eating and working out respectively (Limos, 2019). As
a fast food company, Yellow Cab is directly affected by health habits of
consumers--especially when it comes to food.

Vietnam is ranked fourth in the world’s thinnest countries, partly because of poor
government allocation of funds, but also because their cuisine consists mostly of low-fat
and low-sugar, gluten-free food containing vitamins, minerals, and antioxidants (Sulem,
2016). Due to this, Vietnam has a very low percentage of obesity in their country at
13.1%.

Another cultural trait of Filipinos is that family is considered to be the foundation


of most of their social lives (Evason, 2016). Generally, the strong bond exists not only

18
with immediate family, but extended family as well--even those non-blood related
including distant relatives, close neighbors, and family friends. With this being said,
marketing that addresses this type of culture is common in the Philippines as
characterized by commercials and online short story advertisements with references to
them. In Vietnam, teachers are highly respected figures in society, as characterized by
their country’s traditional saying “My king, my teacher, my father”, which characterizes
their view of their country’s social order (Norris, 2016). In their community, the benefit of
the family and community comes before the individual (Evason, 2016).

In light of COVID-19, it is expected that people will be more health conscious.


One of the contributing factors may be a fear of the viruses that have been contracted
from animals over the years. Veganism, an eating lifestyle that revokes the consumption
of any meat or animal products--including dairy foods, eggs, and honey, is also on the
rise (Vila, 2020). The movement is driven by the youth since approximately 42% of
vegans are under the age bracket of 15-34 (Marsh, 2016). This plant-based diet is on
the road to becoming mainstream in the Philippines as vegan grocers are trying to
popularize the lifestyle and rallies against animal cruelty are increasing (Vila, 2020).
Another expected effect of COVID-19 is that interest in brands with advocacies such as
being eco-friendly will increase. With a lot of people recognizing that the pollution levels
have gone down significantly since the shut down of most operations due to COVID-19,
people are likely to be more inclined to maintain it as much as possible. Furthermore,
people would be likely to prefer food to be home delivered or cooked by them due to
hesitance to go outside because of the risk of COVID-19. This will lead to higher delivery
purchases.

Technological

Technological factors are an important force driving the growth of the fast food
industry since the fast food sector cannot rely only on the attractiveness of its menu, as
well as its food quality (Pratap, 2016). These advancements have been thriving over the
last decade and as a result, online shopping has become a mainstream activity. As such,
consumers are increasingly resorting to new online applications for food delivery
(Lardieri, 2019). According to a study conducted by Zion & Zion, the youth--specifically

19
those aged 18-29 years old comprise more than half of the market at 63% as seen in
Figure 7. With the rise of demand for food and beverages available at the click of a finger
for the consumers’ convenience, more and more companies have made themselves
available to third party apps that may be used as a medium for their orders and
deliveries. Vietnam is known for being a motorcycle kingdom, with sales of more than
three and a half million recorded in 2018 (Xinhua, 2019). As such, the adaption of this
food delivery system will come very easily to their country. However, their country’s
infrastructure is still weak. Roads, railways and ports are inadequate to cope with the
country’s economic growth and links with the outside world.

Figure 7: Consumer Usage of Online Delivery Applications by Age Demographic. Retrieved


March 12, 2020 from: https://www.usnews.com/news/national-news/articles/
2019-07-30/survey-people-willing-to-pay-more-for-food-delivery

Social media platforms continue to gain more traction, with at least 3.5 billion
users online (Ospina, 2019). With this, companies have been utilizing social media
marketing as a means to reaching a wider variety of audience, building a stronger
relationship with consumers, easier and quicker content sharing, increasing brand
awareness, as well as boosting brand loyalty (Sigil Digital Marketing, 2019). Influencer
marketing has also come into play as a branch of social media marketing that focuses on

20
the idea of celebrity endorsements and positioning it into a modern day content-driven
marketing campaign (Influencer Marketing Hub, 2019). This innovative type of marketing
consists of brand deals between the companies and the talents--most of which are social
media workers or influencers. The aim of companies with influencer marketing is to
employ leading, niche content creators to enhance product or service awareness,
maximize traffic, and grow engagement through the use of the type of following their
influencer has (Baker, 2020).

Figure 8: Number of People Using Social Media Platforms in 2018. Retrieved March 12, 2020
from: https://ourworldindata.org/rise-of-social-media

Economic

As seen in Figure 10, it may be observed that the inflation rate in the Philippines
has been irregularly rising and falling throughout the span of 2015-2020. The fluctuation
of the same results in an inconsistency of expenditure for inputs needed for the

21
production of the company. Despite the inflation rate’s attenuation after reaching its
alarming peak back in 2018 at 5%, data seen in Figure 9 depicts that it is once again
escalating from approximately 0% in November of 2019 to 2.1% as of February 2020.

Figure 9: Inflation Rate in the Philippines from February 2019 to February 2020. Retrieved March
12, 2020 from: https://tradingeconomics.com/philippines/food-inflation

Figure 10: Inflation Rate in the Philippines from 2015 - 2020. Retrieved March 12, 2020 from:
https://tradingeconomics.com/philippines/food-inflation

22
In light of COVID-19, the Philippines’ economic growth is expected to slow
significantly in 2020 before a strong rebound in 2021 as seen in Figure 11, with
expansionary fiscal and monetary policies partly offsetting slower domestic demand and
disruptions in tourism, trade, and manufacturing (Asian Development Bank, n.d.). In its
annual flagship economic publication, Asian Development Outlook (ADO) 2020, ADB
projects the Philippines’ gross domestic product (GDP) to grow at 2.0% in 2020 following
the “enhanced community quarantine” imposed by the government in March to stop the
spread of the novel coronavirus disease (COVID-19) in the country. However as seen in
Figure 9, ADB expects a strong recovery to 6.5% GDP growth in 2021, assuming that
COVID-19 infections in the country are curbed by June this year. Additionally, a forecast
by the Philippine Statistics Authority as seen in Figure 12, argues that it will continue to
rise over the next five years. The Philippine Statistics Authority claims that the 2.2%
increase in transport costs had the biggest impact on the prices of basic goods, closely
followed by a 1.7% increase for food and non - alcoholic beverages (Lopez, 2020).

Figure 11: Philippines GDP Growth Forecast. Retrieved April 24, 2020 from:
https://www.adb.org/news/philippine-gdp-growth-slide-2020-due-covid-19-strong-reboun
d-seen-2021-adb

23
Figure 12: Forecast of the Inflation Rate in the Philippines from 2021 - 2025. Retrieved March 12,
2020 from: https://tradingeconomics.com/philippines/food-inflation

Vietnam, on the other hand, has stabilized its inflation rate since its surge in 2016
as seen in Figure 13. This indicates that Yellow Cab will not have an issue in regards to
their average expenditure for basic goods such as ingredients for their goods. However,
government funding for the healthcare sector has been alarmingly low for the past few
years. This has triggered a shortage in doctors, nurses, hospitals, clinics--and as a
result, there have been issues with the dissemination of health information which led to
malnourishment (Sulem, 2016). The country also has a large, skilled, and low-cost
workforce which may make it very easy for Yellow Cab to find experienced and qualified
workers.

According to the Asian Development Bank (ADB), Vietnam’s economy has


shown strong growth in 2019, as a result of high domestic demand, a strong
manufacturing and processing industry, and high Foreign Direct Investment (FDI). The
second outbreak of COVID-19 in March started a new phase in the fight against the
pandemic, severely affecting all of Vietnam’s major trading and investment partners. As
a result, Vietnam’s GDP fell to 3.8 percent in the first quarter of 2020 compared to 6.8

24
percent in the same period in 2019 as per the General Statistics Office of Vietnam
(GSO).

Regardless of the impact of the COVID-19 pandemic, Vietnam is forecast to be


one of the fastest-growing economies in Southeast Asia. According to the ADB’s Asian
Development Outlook 2020 report published on April 3, 2020, Vietnam’s economic
growth will decline sharply to 4.8 percent in 2020 but bounce back up to 6.8 percent in
2021, provided the pandemic is contained. As of April 24,2020, Vietnam has officially
lifted its enhanced community quarantine, resumed business operations and ended
social distancing with no official deaths. Therefore, the forecast is reliable.

Figure 13: Inflation Rate in Vietnam from 2013 - 2018. Retrieved March 12, 2020 from:
https://worldpopulationreview.com/countries/vietnam-population/

25
Environmental

As the world becomes more aware of environmental threats of modern


businesses, governments are now regulating the way companies handle their waste.
Such is characterized in the Philippines by the Department of Environment and Natural
Resources’ adamancy on proper waste disposal. According to the DENR, the passage of
RA 9003, otherwise known as the Intensified Environmental Protection: Solid Waste
Management, prioritizes the improvement of the environment, particularly the air and
water, as well as addresses solid waste problems.

Consumers are also becoming actively involved with the packaging, production,
and delivery of the products they consume, leveraging the power of social media to
consciously be outspoken supporters for certain types of products and services (Shike,
2019). Buyers now believe that the products and services they decide to purchase are a
reflection of their own values and beliefs. In more than 90% of consumer packaging
goods categories, sustainability marketed products grew faster than their long-standing
counterparts (Whelan, 2019). Consumers are now pushing for products and services
that promote sustainability as they become more and more conscious of the negative
effects of companies conducting their regular operations that harm the environment. The
increasing demand for eco-friendly goods has forced companies to become more
mindful of their activities from production to packaging and, in some cases, even
publicize it in order to boost brand image.

Political

Political factors such as health and sanitation regulations, wages, and food
quality requirements provided by the government play a hand in the company’s day to
day activities (Pratap, 2016). The company may be affected by revisions on stipulations
of the policies and increases in the minimum wage requirement. The Philippines also
has a food packaging regulation called the “Food and Safety Act of 2013” regulated by

26
the Food and Drug Administration (Clark, 2013). Food products in Vietnam, on the other
hand, are mainly regulated by their Ministry of Health, Ministry of Agriculture and Rural
Development, and Ministry of Industry and Trade. Yellow Cab must strictly comply with
these policies as it is in the food and beverage industry.

Governments play a big role in the fast food industry, as the attitude of the
authorities of a country towards their businesses has a definite effect upon the
companies’ performance (Pratap, 2016). The Philippines has been known to be one of
the countries that have the highest taxes in the Southeast Asian region (Golez, 2019).
The TRAIN2 program poses various pros and cons for companies, some of which
include a 5% decrease in corporate income tax, the elimination of the optional 15% tax
rate of gross income, and a 5% decline in the allowed credit against tax due.

Legal

The Philippines has policies and regulations in terms of the food being sold to its
citizens, as to protect consumers from health risks. Examples of which are the DO 13, S.
2017, otherwise known as the Policy and Guidelines on Healthy Food and Beverage
Choices in Schools and DEPED Offices, the Republic Act No. 10611: Strengthening the
Philippine Food Safety Regulatory System, and the Food Safety Act of 2013. Companies
are required to follow these laws with strict compliance, otherwise there will be penalties.
The government has also implemented the Consumer Act of the Philippines in order to
protect the interest of the consumer, especially towards goods and services such as food
and beverage companies which pose potential hazards to health and society if not
managed well. Vietnam implemented laws such as the Law on Food Safety 2011, Law
on the Quality of Products and Goods 05/2007/QH12, Law on Standards and Technical
Specifications 68/2006/HQ11, and Decree Nos. 38/2012/ND-CP and 43/2017/ND-CP in
order to properly manage their food and beverage industry. Companies such as Yellow
Cab should take extra precautions in order to make sure that their customers are
informed as to the ingredients of the food they are consuming.

Ethical

27
In the Philippines, business ethics are greatly influenced by the plurality of
languages and ethnicities, geographic fragmentation and the predominant Roman
Catholic religion, together with the still relatively short experience in nationhood (Sison &
Angeles, 1997). In addition, the rapid growth and liberalisation of the economy, coupled
with the inequitable distribution of wealth, the destruction of the environment and
corruption (Sison & Angeles, 1997), account for the main ethical concerns. Among the
Philippines, Vietnam, Cambodia, and Indonesia, the Philippines has probably the most
advanced stage of implementation of different professional bodies related to code of
ethics, including the marketing society MORES (Marketing and Opinion Research
Society). MORES is an association of qualified research practitioners from advertising
agencies, advertisers, media, research agencies and individuals.

The following are the top following dirty work ethics that are commonly seen in
the Philippine workplace:
● Padrino System or “Palakasan” - it is one of the most common, most
corrupt, unfair and dirtiest methods of getting a job in the government
and/or other private industry without the hassle due to connections
● Crab mentality - it is a metaphor that refers to a basket of crabs. Instead
of getting out individually, one will grab and pull each other down. A
workplace example would be if an individual is highly recommended to
get promoted for good performance, workmates might not like it and try to
prevent the individual from getting that position.
● Backstabbing - the action or practice of criticizing someone in a
treacherous manner while feigning friendship.

Vietnam ratified the UNCAC with certain reservations. In addition, Vietnam is a


member of the ADB/OECD Anti- Corruption Initiative for Asia and the Pacific. According
to the Vietnam International Law Firm, Vietnam has also signed certain bilateral
agreements for the purpose of sharing information, exchanging experience and
enhancing the effectiveness of anti-corruption programmes, e.g. the Development
Partnership Agreement with the United Kingdom (2006), the Joint Committee with Japan
for Preventing ODA Related Corruption (2008), the Cooperation Agreement on
Anti-Corruption Measures with Malaysia (2010), and the Partnership and Cooperation

28
Agreement with EU (2012). The following are the ethical laws of Vietnam as retrieved
from the Vietnam International Law Firm:

Key anti-corruption laws


In Vietnam, there are four key laws relating to anti-bribery:
● Law on Prevention and Combat of Corruption No. 55/2005/QH11 dated 29 November
2005, as amended by Law No. 01/2007/QH12 dated 4 August 2007 and Law No.
27/2012/QH13 dated 23 November 2012 (Anti-Corruption Law);
● Decree No. 59/2013/ND-CP of the Government, dated 17 June 2013, detailing a number
of Articles of the Anti- Corruption Law;
● Decision No. 64/2007/QD-TTg of the Prime Minister, dated 10 May 2007, on the
Promulgation of the Regulations on Giving and Receiving Gifts and Returning Gifts
Applicable to Agencies, Organisations and Units Using State Budget and Cadres, Civil
Servants and Public Officials (Decision 64); and
● Penal Code No. 100/2015/QH13 dated 27 November 2015 (New Penal Code). Note that
in 2015, Vietnam’s National Assembly passed the New Penal Code, which was to meant
to take effect from 01 July 2016 and replace Penal Code No. 15/1999/QH10 dated 21
December 1999 (amended by Penal Code No. 37/2009/QH12 dated 19 June 2009).
However, Vietnam’s National Assembly subsequently promulgated Resolution No.
144/2016/QH13 dated 29 June 2016 suspending the implementation of such New Penal
Code for unspecified term due to certain drafting formality and consistency errors therein
and has a plan to rectify such errors of the law. It is expected that the New Penal Code
with revised provisions would soon take effect. This writing is updated based on the New
Penal Code.

Features of bribery offences


The primary law penalising corruption activities in the public and private sectors
is the New Penal Code, which covers both active and passive bribery. “A bribe is
construed as: (1) money, assets or other material benefit in any form, which has a value
of VND 2 million (approximately US$90) or more (or less than VND 2 million if the act of
bribery was committed repeatedly) or (2) intangible benefits either provided, offered or
promised by any person to a person holding an official position or power with the intent
of taking advantage of his or her official position or power in order to perform or refrain

29
from performing certain acts for the benefit of, or as requested by, the person who offers
the bribe. The New Penal Code covers bribery of foreign public officials, so a
Vietnamese individual would be subject to criminal liability in accordance with
Vietnamese law if such individual gives bribes to a foreign public official. A Vietnamese
citizen who pays a bribe to a Vietnamese public official when abroad may be subject to
criminal or administrative liability under Vietnamese laws. A foreign citizen paying a bribe
to a Vietnamese public official outside of Vietnam’s territory may also be subject to
criminal liability under the New Penal Code.”

Compliance defence and mitigation


Persons who are coerced to offer bribes but report them before being detected
are deemed to be innocent and will have the entire property offered as bribes returned.
Non-coerced bribe givers or bribery intermediaries who report the bribes before being
detected may also be exempt from penal liability. The laws of Vietnam do not expressly
provide that having adequate compliance procedures in the context of anticorruption is
an express defence or a mitigating factor. If the anti-corruption programme or
compliance procedures help to prevent or reduce the violation then these procedures
can be taken into account by the court as a mitigating circumstance.

Facilitation payments
There is no express recognition of, or exemption for, facilitating payments if the
person offering or making the facilitating payment had the intention of requiring the
public official(s) to perform or refrain from performing certain acts. According to the
scope of bribery set out in the New Penal Code, a person receiving a facilitation payment
may still be subject to criminal liability even if the ensuing action is in accordance with
the law.

Gifts and entertainment


Generally speaking, the giving or receiving of gifts and hospitality will be deemed
a bribe under Vietnamese law if it satisfies all elements of a bribe as described in
paragraph 2 of Features of bribery offences Section above. “Decision 64 provides
regulations on the receiving and giving of gifts by organisations, units, and ‘staff, public
officials and officials’. Under this Decision, a gift includes, among other things, cash,
‘valuable papers’ (such as shares, bonds, certificate of deposits or promissory notes),

30
goods, properties, tourism benefits, medical services, education and training. Decision
64 also prohibits ‘staff, public officials and officials’ from directly or indirectly receiving
gifts when the public official has responsibilities and/or power over the gift giver’s activity
and the gift giving is not justified by a clear and legitimate purpose.

Corporate liability for the acts of intermediaries


Generally, companies are not liable for the acts of their intermediaries, such as
their subsidiaries because under Vietnamese laws: (a) only individuals can be subject to
criminal liability with respect to bribery offences (companies can only be administratively
sanctioned); and (b) a subsidiary is usually regarded as a separate legal person from its
parent company and is therefore responsible for its own conduct only.

Liability of individual directors and officers


Subject to the imposition of criminal liabilities in the case of directors and officers
who are accomplices or their failure to denounce crime, Vietnam laws do not expressly
stipulate any particular responsibility of individual directors and officers for consent to, or
connivance in, a corrupt act in their company. Nevertheless, a head and deputy head of
an enterprise may be subject to discipline or criminal liability upon the occurrence of
corrupt acts in their enterprise.

Penalties
According to the New Penal Code, a bribe receiver may be liable for criminal
penalties of: (a) imprisonment, including life imprisonment, or capital punishment; (b) a
fine of up to VND100 million; (c) confiscation of all or part of the properties; and (d)
prohibition from holding a public position for up to five years. A bribe giver may be liable
for criminal penalties of: (a) up to 20 years’ or life imprisonment; and (b) a monetary fine
of up to VND50 million. A bribe intermediary may be liable for criminal penalties of: (a)
up to 15 years’ imprisonment; and (b) a monetary fine of up to VND200 million.

Enforcement agencies
From the central to the local level, the key enforcement agencies within the
anti-corruption sector include the following:

● Central Committee for Internal Affairs of the Communist Party of Vietnam, which is
responsible for directing and coordinating anti-corruption activities in Vietnam. By law,

31
this Committee is a part of the Communist Party and does not have judicial or executive
function but given the current political settings in Vietnam, the Committee possesses
significant weight in the fight against corruption;
● Steering Committee for Corruption Prevention and Combat at the central and provincial
levels, which are responsible for directing, coordinating, inspecting and expediting
anti-corruption activities at nationwide and local scales respectively;
● State Inspector and the State Audit, who are responsible for the inspection and audit of
corrupt acts;
● Ministry of Police, the Ministry of National Defence, the Procuracies and the Courts,
which are responsible for the investigation, prosecution and adjudication of
corruption-related crimes; and
● Ministry of Foreign Affairs and the Ministry of Justice, which play an active role in
corruption cases involving foreign elements.

Anti-money laundering laws


In Vietnam, the key legal instruments governing the antimony anti-money
laundering activities include:

● Law on Prevention and Combat of Money Laundering No. 07/2012/QH13 (AML Law);
● Decree No. 116/2013/ND-CP of the Government, dated 4 October 2013, detailing the
Implementation of a number of Articles of AML Law;
● Circular No. 35/2013/TT-NHNN of the State Bank of Vietnam (SBV), dated 31 December
2013, guiding the Provisions on Prevention and Combat of Money Laundering (as
amended by Circular No. 31/2014/TT-NHNN of the SBV dated 11 November 2014)

Whistleblowing
In Vietnam, whistleblowing or denunciation is mainly handled in accordance with
the Law on Denunciation No. 03/2011/QH13, the Criminal Proceedings Code No.
19/2003/QH11 and the Anti-Corruption Law.

Data privacy
Currently, there are no specific laws governing the protection of data privacy in
Vietnam. However, the requirement for keeping private information relating to an
individual or organisation confidential may be found in various legal documents, such as

32
the Civil Code No. 91/2015/QH13 effective as from 1 January 2017, the Law on
Information Technology No. 67/2006/QH11 and the Law on Electronic Transactions No.
51/2005/QH11. In principle, the collection and/ or publication of any information and
material of an individual or organisation must be approved in advance by that person or
organisation, except as required by the competent authority in accordance with the laws.

Disclosure and privilege


Under Vietnamese laws, lawyers are required to keep information relating to the
cases and the clients confidential during and after their supply of legal services, except
as approved otherwise by the client or requested in accordance with the laws.
Nevertheless, as Vietnamese laws do not expressly recognise any privilege with respect
to the disclosure of confidential information in the legal profession, it is arguable whether
lawyers have the obligation to disclose confidential information of their clients upon the
request of the competent authority during any investigations or legal proceedings.

II. Porter’s 5 Forces

Table 5. Porter’s 5 Forces Analysis of Yellow Cab Pizza Co. Vietnam

Threat of Full service restaurants have a growing popularity in Vietnam however,


new entrants the expected growth is not that high at around 13% CAGR. This may
NORMAL attract new entrants but not massively. Moreover, there are only a few
restaurants that offer pizza as their main product (direct competitors) in
Vietnam, they are at around 402 in number. Barriers to entry for Yellow
Cab are consumers’ attachment to existing pizza shops, high
economies of scale by existing players such as known brands like Pizza
Hut, and gaining access to distribution.

Threat of There are a lot of indirect competitors for Pizza shops such as fast food
substitutes chains and restaurants of small to large scales. There are a total of
EXTREMELY HIGH 83,825 indirect competitors.

Bargaining power Due to the very limited restaurants that offer Pizza as their main
of customers product, the buyers have low bargaining power. Pizza restaurants can

33
LOW freely influence the prices of products as they are only few in the
industry. Buyers taste and preference weighs a huge factor for them to
purchase and be loyal to the brand.

Bargaining power The Pizza industry has a High bargaining power of suppliers due to the
of suppliers small population of market players and large demand of ingredients
HIGH with high differentiation. Moreover, Yellow Cab maintains its Western
Style Pizza reputation offering selected and high quality inputs in their
menu.

Competitive The degree of competition amongst rivals in the industry is Low as


rivalry product differentiation is also low among pizza shops who only
LOW for Direct compromise 0.48% of the full service restaurant industry. However, the
Competitors extremely competitive situation with the substitute shouldn't be
overlooked as indirect competitors such as fast food chains and other
restaurants are taking control (at 99.52%) of the industry’s sales.

III. SWOT Analysis

Table 6. SWOT Analysis

STRENGTH WEAKNESS

1. Brand image is westernized (New 1. YellowCab is newly introduced in


York style) which has higher Vietnam
perceived value for Vietnamese 2. Product costs are relatively high
2. Has wide product differentiation in compared to competitors
their menu compared to 3. Weak social media presence and
competitors strategies
3. Offers assured high quality
ingredients

34
OPPORTUNITIES THREATS

1. Increase in demand for full-service 1. Increasing inflation (although it is


restaurants that offers starting to stabilize), the price per
home-delivery like yellow-cab unit of goods are relatively high
2. No major advertising campaigns 2. Strong competitors both direct and
within the full-service restaurants. indirect
3. Vietnam has a large, skilled, and 3. Vietnamese are not fond of fast
low-cost workforce which may food and ranked 4th in the list of
make it very easy for Yellow Cab the world’s thinnest countries
to find experienced and qualified
workers.
4. Popularization of Veganism
5. The use of the country's traditional
social order, "My king, my teacher,
my father."
6. Rise of influencer marketing
7. Consumers becoming actively
vocal about the packaging,
production, and delivery of the
products they consume--favoring
sustainability

TOWS ANALYSIS
Table 7. TOWS Analysis

STRENGTH-OPPORTUNITIES WEAKNESS-OPPORTUNITIES
STRATEGIES STRATEGIES

S1O2: W1O1:
Emphasize western style pizzas in ads Utilize media and other platforms that

35
and design location in western style. advertises Yellow Cab as a full-service
restaurant that offers home-delivery.
S2O1: W2O2:
Develop a better online menu for delivery Position Yellow Cab as a ”luxurious”
and point of purchase including quality product in ads offering high quality
service. ingredients and service.

S3O2: W3O3:
Emphasize product quality in ads and Hire digital and social media marketing
menu boards by disclosing ingredients. officer that facilitates the online
advertisements of Yellow Cab in Vietnam.
S1O3:
Provide adequate training for staff that W3O5:
matches the service being advertised. Social media online advertisements in the
form of short video commercials
S2O4: appealing to the consumers' emotional
Modification of their menu--either by regards to their social order.
creating new vegan options or making a
vegan alternative of food they already W3O6:
have. Collaboration with Instagram and Youtube
influencers in the promotion of Yellow
Cab's products.

W1O7:
Switching product packaging to more
sustainable options.

36
STRENGTH-THREATS WEAKNESS-THREATS
STRATEGIES STRATEGIES

S1T1: W1T2:
Relate New York style to the high price of Utilize local dialect in ads through
Yellow Cab’s product. Position the slogans, promos and informations while
company as affordable luxurious. maintaining value and brand image to
increase awareness.
S2T2:
Utilize differentiation as advantage W2T3 & W2T1:
against competitors through wide scope Provide emphasis on healthy products in
of ads to inform. the menu as well as customization of
healthy options as this increases price
S3T3: value perception.
Disclose healthy ingredients of high
quality and provide nutritious benefits in W3T1 & W3T3:
ads, menus and point of purchase Advertisement should disclose Yellow
paraphernalia. Cab as an affordable luxurious brand that
offers healthy options to create hype and
S3T1: recognition online.
Higher bargaining power with suppliers.
The company may procure high quality
ingredients for a lower price.

37
IV. Statement of the Problem

One of the main problems of Yellow Cab Pizza Co. is acquiring a larger market
share. The company is still new to Vietnam, hence they struggle with awareness and the
penetration of the market with competitors. Yellow Cab Pizza Co. may progress through
researching and discovering the factors that enable consumers to want to purchase from
their brand. This will thereby increase their customer retention and sales.

Main Problem: Increasing sales through acquiring a larger market share and improving
customer retention.
Problem 1.1: Improving brand image in Vietnam’s environment
Problem 1.2: Adaptation to Vietnam’s culture

V. Objectives of the Study

1. To determine the extent of awareness, trial and usership of pizza restaurants,


specifically Yellow Cab Pizza Co. vis-a-vis select competitors
2. To uncover the factors affecting consumer and buying behavior, as well as its
relation to Yellow Cab Pizza
3. To determine the target market for Yellow Cab Pizza in Vietnam.
4. To craft a Marketing Plan based on the results of the study that would help retain
Yellow Cab Pizza Co.’s existing pool of customers and expand the brand’s
market share in Vietnam

VI. Methodology
A. Research Design

The researchers collected information through the use of various methods


in order to acquire ample data in both quantitative and qualitative forms. The
researchers utilized a descriptive research design, as it involves the observation

38
and studying of subject behavior. Furthermore, the data sent back through the
online surveys were thoroughly analyzed and used as a basis for creating
insights on the matter at hand.
B. Research Method

The data used in this research will be collected through the use of online
surveys and in depth interviews. The in depth interviews are conducted in order
to have a more accurate interpretation of the answers of the respondents.
Through the use of online surveys the researchers will be able to collect
quantitative data for analysis.

C. Research Participants

There will be a total of 30 respondents through surveys; all of which are


Vietnamese. The age range of the chosen respondents will be 18-29 years old.
Furthermore, there were 2 participants in the in-depth interviews which were
conducted through video calls. These aforementioned participants were a Yellow
Cab Pizza Co. consumer and (mirror expert).

D. Research Instrument

The survey was divided into two main parts. The first half acquired the
respondents’ profile such as their age, occupation, income/allowance, and the
like. This data will be utilized to define the market segments. The second half
contained statements regarding the industry in general, as well as the chosen
restaurant, Yellow Cab Pizza. The statements included their exposure to the
restaurant and the frequency of which they interact with them, as well as their
attitudes towards it. The survey was further separated into 5 subtopics which
were the researchers’ chosen 5 factors affecting purchasing intentions which are
stated in the hypotheses.

E. Scope and Limitation

39
The researchers investigated how yellow cab will advance their business
in the context of a post COVID-19 situation in Vietnam. This global marketing
plan includes data collections on the country’s market, culture, industry, and
consumer trends which were key in the creation and planning of a well designed
launching campaign in this particular country. Given that the pandemic was still
ongoing upon the conduction of this research, the presented data and forecasted
results should be given allowance for adjustment. Further limitations include the
language barrier between the researchers and their respondents.

F. Hypotheses

HO1: Marketing and advertising campaigns have a positive correlation to Yellow


Cab consumers’ purchase intention.

HO2: Group or peer influence have a positive correlation to Yellow Cab


consumers’ purchase intention.

HO3: Health consciousness has a negative correlation to Yellow Cab consumers’


purchase intention.

HO4: Service quality has a positive correlation to Yellow Cab consumers’


purchase intention.

HO5: App delivery availability has a positive correlation to Yellow Cab


consumers’ purchase intention.

VII. Market Research


A. Market Size

Market size for Pizza Restaurants is 455,868 in population which is


approximately 0.48% of Vietnam’s total population. This industry in relation to its
population market size can generate USD 2,776,236.12 or Php 140,588,597.12.
Below is the supporting evidence on how the market size is being proportioned to

40
the Industry's data in Vietnam, assuming that the pizza stores can produce sales
proportionate to the size of Pizza shops:

Full Service Restaurant Industry in Vietnam


Sales USD 582,280,000 or Php 29,486,659,200
(Restaurant Industry Vietnam, 2018)
Population 95,540,000 (Vietnam 2020)
Businesses 84,227 (Total number of restaurants in Vietnam, 2018)

Sales per population USD 6.09 or Php 308.40


Population per business 1,134

For Pizza Industry in Vietnam


Businesses 402 (Total Pizza restaurants in Vietnam)

Market Size in sales


Pizza Businesses x Population per business x Sales per population =
402 x 1,134 x USD 6.09

= USD 2,776,236.12 or Php 140,588,597.12

Market Size in Population


402 x 1,134
= 455,868

B. Market Share

In terms of awareness in the Pizza Industry in relation to the UAI results in


Vietnam, Yellow Cab has 2nd place in the Market Share (63.3%), first on the list
is Pizza 4P’s and Oliver’s Pizza (both garnering 66.7% awareness). Pizza
Pendolasco (56.7%) is in 3rd place, followed by Espy Pizza as the 4th placer
(46.7%). Lastly, the fifth place is shared by Vittorio Pizza and Pizza and Bia

41
(43.3%).

Brand Awareness on Pizza Restaurants of Vietnamese Consumers

C. Market Potential
Applying both data for market size and market share, the total population
of the projected market size is 455,868 multiplied to the market share of 63.3%,
this will give Yellow Cab a market potential of roughly 288,564 potential
customers in Vietnam. Moreover the target market of Yellow Cab (18-29 years
old) in Ho Chi Minh City where the branch is located is around 1,245,143 (World
Population Review, 2020). Thus, the market potential in percentage is around
23.18% equivalent to 288,564 potential customers over the total population of the
target market of 1,245,143.

D. DATA ANALYSIS
1. Interviews
The interview was conducted on April 2, 2020 through an online
platform: Zoom. The interviewee is a mirror expert, and chooses to
remain anonymous. Nevertheless, the interviewee gave his full consent in
conducting the interview and taking part in this paper. The main key
points or takeaways mentioned are the following:

● Product authenticity is a major issue as their product quality, taste,


serving and presentation does not mirror their advertisements.
● The product menu in general does not cater to the preferred taste
of the Vietnamese people. Hence, the food and taste is not

42
promising and needs more research in terms of what ingredients
and food style they choose to present in their products.

2. Profile of the Participants

The online survey was distributed to the target respondents from


April 1 to April 4, 2020. Majority of the participants in the survey were
either students or employed and 73.3% of them had a monthly allowance
or income of more than 7,000,000 Vietnamese Dong (VND) or 15,093.33
Philippine Pesos (PHP). Furthermore, 70% of the participants usually
spend more than 225,000 VND or PHP 485.14 for every meal on
average. Hence, a conclusion could be drawn that the majority of these
participants have the capability and have more money to spend
food-wise.

3. Purchase/Usage (Purchase Patterns)

In a week, most respondents eat out around 4 or more times


(56.7%) followed by 2 -3 times (30%) and lastly once or never (13.3%).
This data only shows that the respondents are most likely to eat outside
their homes such as restaurants, fast food chains and the like in a certain
week.

Moreover, data also shows that the majority of them avail home
delivery for food 2 to 3 times a week (53.3%) and 4 or more times
(23.3%). This concludes that most Vietnamese avail of food delivery
services which is a positive feature for Yellow Cab since they offer the
same service to their customers. Purchasing wise, most of them spend
more than 50,000 VND in a meal with most having a budget of 225,001 to
350,000 VND (40%), followed by more than 350,000 VND (30%) and
lastly 50,000 to 225,000 VND (26.7%). Thus, this manifests that the
majority of them have the range of above average budget for a meal
which fits Yellow Cab’s product pricing.

43
For the Vietnamese respondents, the quality of food (86.7%) is the
top reason why they buy and are attracted to purchase in a restaurant.
This is followed by the variety of food offerings and online advertisements
(70% for both reasons). There is almost a neutral effect to packaging
(46.7%) and Vietnamese seem to be less conscious of the pricing of food
being sold to them (low pricing at 30% and high pricing at 13.3%). This is
good news for Yellow Cab as they positioned themselves with the price
value aligned to their quality - high pricing and high quality. However,
online advertising for the company should be prioritized as they lack
efficiency in this area of marketing strategy.

4. Awareness and Trial (Consumption Patterns)

According to the results from the survey that was conducted, none
of the respondents think of Yellow Cab Pizza first when it comes to pizza
restaurants. While 19 out of the 30 (63.3%) respondents actually know
the restaurant itself, 10 of the 30 (33.3%) have said to have never even
tried Yellow Cab Pizza. Their preferred pizza restaurants are Pizza 4P’s,
Pizza Pendolasco, and Oliver’s Pizza, but 23 (76.7%) of them answered
that they like Yellow Cab Pizza. When asked how often the respondents
order or eat in Yellow Cab food chains, more than half of them, 16 or
53.3%, responded that they buy from the restaurant once or twice in the
span of a month.

Going back to the brand awareness, it was asked in the survey


how they came to know the brand, as well as how they experience Yellow
Cab Pizza advertisements. 8 (26.7%) of the respondents came to know
the brand through physical advertisements, while another 8 (26.7%) say
that they found the brand through the social networking site, Facebook.
As for their experiences with brand advertisements, 9 (30%) often see
physical advertisements for the brand, while 8 (26.7%) find brand
advertisements for Yellow Cab Pizza through Facebook. It would seem

44
that while it has been 3 years since the debut of Yellow Cab Pizza in
Vietnam, the brand still has a long way to go to becoming the nation’s #1
pizza restaurant.

5. Attitude
a. Marketing and Advertising

When presented with the question of what strikes the


respondent in regards to a brand’s advertising, the results show
that the product itself is what stands out the most (83.3%).
Followed by the celebrity and model endorsers hired by the brand
(80%) and the specific advocacies that come with the
advertisement (70%). The data further presents that the price of
the product is another factor that stands out, but is shown to have
not caught the respondents attention compared to the former
three. The aesthetics of an advertisement (50%) surprisingly stood
out to only half of the respondents, and lastly deals and
promotions (30%) is the characteristic the least stood out to the
respondents.

56.7% of the respondents strongly agreed that they are


more attracted to aesthetically pleasing online advertisements as it
catches their attention more, and only 3.3% slightly disagree to
this. In regards to whether the respondents like the product and
services promoted by their favorite celebrities, 63.3% agree to
this, 20% disagree, while 16.7% answered neutral. 83.3% have
responded to be following influencers on their preferred social
media platforms such as Instagram and Twitter, while 16.7%
pointed out that they in fact do not. 73.4% agree to liking products
promoted by their favorite influencers, 16.6% disagree to this, and
10% are neutral

45
83.3% of the participants of the survey agree to being
attracted to brands that also have an advocacy, while 86.6% agree
to also being attracted to brands that have views and values
likened to theirs.

b. Product Pricing

The data depicts that the majority of our respondents


(40%) spend approximately 250,000 to 300,000 VND when asked
how much they usually spend for meals, closely followed by an
expenditure of 300,001 (30%). This indicates that 70% of the
participants spend about Php 500 - 650 when converted into
Philippine currency.

Despite exactly half of our survey participants being


students, our study shows that only 6% of the respondents
strongly agree that they prefer products that are cheaper. The
majority (40%) leaned more towards a neutral opinion on the
aforementioned statement. Furthermore 30% of the participants
disagree with the aforementioned statement--entailing that they
prefer products which are a bit more expensive. This may be
backed up by their response when asked if they prefer products
that are of better quality, regardless of the price. 40% of the
participants agree, while 33.3% strongly agree.

The data shows similar results in the succeeding


statements regarding their preference for cheaper and more
expensive restaurants. Both statements garnered almost 50%
responses for a neutral opinion on their preference. The rest of the
responses are scattered among the rest of the choices almost
evenly. This is in line with all the previous statements regarding
price, indicating that the consumers are willing to spend less or
more depending on the quality of the product at hand.

46
c. Place and Distribution

In terms of app delivery, the circumstances differ when it


comes to the preference of the respondents. The majority that is
33.3% of the respondents neither completely agree nor disagree
that they prefer ordering in 3rd party apps as opposed to eating
out.

On the other hand, 33.3% agree that a factor as to why


they would prefer ordering off 3rd party apps is because it would
be easier than physically going out in some cases, such maybe
like going out to buy groceries to cook, and the like.

50% majority of the respondents slightly agree that they


prefer to order off 3rd party apps as opposed to cooking at home,
giving the impression that the respondents in this age group are
not so fond of cooking at home, and if given the choice would
rather order food to be delivered.

d. Group or Peer Influence

The data show that almost all of the respondents agree


that they are inclined to restaurants that their friends have
suggested to them (90%), but have a lesser percentage (63.4%) in
terms of those who were more inclined to restaurants that their
family suggested and a neutral result of 30%. Additionally, nearly
all of the research participants (96.7%) claim that the popularity of
the restaurants among their peers made them more inclined to
buy from them, while the remaining 3.3% were neutral.

47
Lastly, the data suggests that the majority of the
respondents eat out with their friends (83.4%) and co-workers
(60%). However, more than half of the respondents (56.7%)
claimed that they did not eat out with their families.

e. Health Consciousness

The study depicts high levels of health consciousness


within the respondent pool, as 94% of them agree that they are
conscious of what they eat. Similar results were realized when
asked if they try to follow a diet, with the majority of the
participants (86%) claiming to have been doing so. In line with
Vietnamese culture, the survey also shows that more than half of
our respondent pool (60%) likes to eat healthy food. However, the
data is almost evenly split in terms of their consumption of junk or
fast food.

Nearly all of the survey participants (90%) are interested in


trying vegan food, and a similar percentage (90%) was realized
when asked if they were willing to spend more for healthier options
of junk or fast food. Furthermore, when asked if they prefer to eat
healthier food even in fast food restaurants, 76% of the
respondents agreed that they would like to do so.

f. Service Quality

In terms of overall service quality, a majority of the


respondents greatly value and find it important to be provided with
service of good quality.

63.6% of the respondents find it important to be given prompt


service. Meanwhile, a little above half (56.7%) of them find it

48
relevant to be given sincere interest and concern when they
encounter a problem with their products or service.

The character and appearance of the employees serve an


important role in service quality as well, according to the
respondents. 56.7% of them agree that employees should treat
them with friendliness. Furthermore, keeping a good and clean
appearance related to having good service, as 73.3% agree that
they find this important.

VIII. Framework of Findings in relation to SOP

Table 8. SOP Findings Framework

Main Problem: Increasing sales through acquiring a larger market share and improving
customer retention.

Problem 1.1: improve brand image Problem 1.2: adapt to Vietnam’s food
culture

No one thinks of Yellow Cab Pizza Co. Majority claim they have a positive
first when asked abt pizza restaurants: opinion on and have tried Yellow Cab
- They are lacking in social media Pizza Co. but more than half do not buy
presence; most have only heard of from them, and the rest only buy on a 1-2
them through physical times a month basis:
advertisements - High Awareness and Trial, yet low
Usage → the brand requires
product modification

Data results stress the importance of Most are willing to spend more for higher
celebrity and model endorsers, quality and unique products.
advocacies linked with the company, and - Customers will be willing to
aesthetically pleasing online increase expenditure if they are in
advertisements.

49
agreement with the product
modification
- Yellow Cab Pizza Co.’s menu
offers food ranging from Php 200 -
999, so this will bode well with the
majority of the market, as well as
provide leeway for those only
willing to spend less than the
average answer and those willing
to pay more

The majority of the responses show that The respondents express a preference for
consumers are most inclined to purchase eating out and ordering from delivery
from restaurants that have been applications.
suggested to them or were popular to - Having a delivery website and
their peers. having your food products or
- Media advertisements should services available in 3rd party
have large reach and be delivery applications should be
interactive taken into high consideration.

Most respondents have food delivered 2-3 Nearly all of the respondents give great
times a week. importance to or lean more towards
- Brand should make promote their purchasing healthier food options and
24 hour delivery service alternatives.
- Brand needs to expand line of
products to be more versatile and
increase differentiation

Majority eat out with friends and


co-workers since circumstantially, they
are already out for school or work.

50
- Brand needs to have a menu
and/or deals and promotions that
cater to this

IX. Strategy

Campaign Slogan: PLANT BASED but SAME TASTE

The marketing strategies will revolve around the four main product development
and innovation initiatives of the brand: (1) the addition of vegan food to the menu, (2)
D.I.Y. Pizza, (3) 100% biodegradable packaging, and (4) an update in delivery charge
terms. All other strategies are to be implemented in order to support or complement the
aforementioned developments and initiatives.

A. Product Development and Innovation Initiatives


1. Vegan Food

The innovation initiative of adding a vegan option in the menu of


Yellow Cab directly addresses the concern of problem 1.2 which is the
adaptation to Vietnam’s food and culture. Given that the numbers agree
to Vietnamese people being highly health conscious, enjoy eating healthy
food, and are interested in trying vegan fast food, this strategy takes
advantage of this data and is pretty much self-explanatory. Inorder to
achieve this, they have to expand their menu to more vegan options,
given the demand. Adding a separate vegan menu with at least two
vegan options under each section (pizza, pastas, etc.) would be an
effective start. This menu has to be well designed and researched enough
that the vegan options are just as appetizing and maintain their quality as
the rest of their products. From then on after enough time of having the
vegan menu launched, a great suggestion would be adding the best

51
sellers from the vegan menu to their main menu to make them even more
open to both vegan and meat lovers alike.

This strategy will also increase trial or possibility of purchase due


to the segmented data gathered:

Table 9. Vegan Food Strategy Data from Respondents with Weak


Purchase Intent

Classification of Mean Results of the Question


Respondents
I am interested in I am willing to spend a
trying vegan food. little bit more money for
healthier versions of
junk/fast food.

Eat out 1 or less 3.75 4


than 1 weekly (Agree) (Agree)

Have Food 3.86 4


delivered 1 or less (Agree) (Agree)
than 1 weekly

Haven’t tried 4 4.1


Yellow Cab (Agree) (Agree)

2. D.I.Y. Pizza

According to the data analysis, most are willing to spend more for
higher quality and unique products and customers will be willing to
increase expenditure if they are in agreement with the product
modification. This D.I.Y Pizza innovation strategy directly tackles problem
1.2 in the SOP. Having a D.I.Y Pizza option for consumers allows them to
have a unique experience with Yellow Cab to create their own pizza to
their liking. To accomplish this, the company manager and store designer
has to strategically allot an area where the D.I.Y Pizza station would take
place: having a see-through window wherein they could simply dictate to
the chef of how they want their pizza and see it happening before their
eyes allows them to be more immersed in this option. To ensure that this

52
does not take over inventory costs, have a maintainable menu and
practice efficiency: a separate menu with limited options should be given
to present to them. The D.I.Y Pizza option would vary in price, depending
on the ingredients they choose, but ensures an affordable price range for
this option. This separate menu may include : how they would like their
crust to be (thin or thick), 3 toppings, sauce of their choice, and the like. In
addition to that, this strategy indirectly addresses problem 1.1 as it could
possibly improve the company’s brand image as this unique option in their
menu gives them a competitive advantage and an increase in product
differentiation against other pizza restaurants in Vietnam.

This strategy will also increase trial or possibility of purchase due


to the segmented data gathered:

Table 10. D.I.Y. Pizza Strategy Data from Respondents with Weak
Purchase Intent

Classification of Mean Results of the Question


Respondents
I follow or try to follow a diet.

Eat out 1 or less 4


than 1 weekly (Agree)

Have Food 4
delivered 1 or less (Agree)
than 1 weekly

Haven’t tried 3.8


Yellow Cab (Agree)

3. 100% Biodegradable Packaging

Addressing problem 1.1 of the SOP would include strategies that


could help improve the company’s brand image. According to the data
analysis, having specific advocacies that come with the product and
advertisement is one of the key factors as to what strikes the consumers.
According to Johnson (2019), many businesses are now improvising with

53
new ways of designing and producing their products, attempting to lessen
their carbon and environmental footprint, while simultaneously saving on
costs. Incorporating the 100% Biodegradable packaging not only gives
Yellow Cab an identity of doing their part in contributing to eco-friendly
practices, but could also possibly lower their production costs and
expenses which is advantageous to them. To achieve this, the company
must do their cost research and source a good supplier for this packaging
that would be efficiently delivering or providing this to their different
branches across Vietnam. Packaging should include: pizza boxes,
take-away containers, plates, cutlery, beverage cups, and even napkins to
mention a few. It’s important to also have the “100% BIODEGRADABLE
PACKAGING” marked on these as it already becomes a walking
advertisement of a simple advocacy and easily accessed or seen directly
by the consumers.

This strategy will also increase trial or possibility of purchase due


to the segmented data gathered:

Table 11. Biodegradable Packaging Strategy Data from Respondents with


Weak Purchase Intent

Classification of Mean Results of the Question


Respondents
I am attracted to I am attracted to brands
brands that also that have the same views
have an advocacy and values as me.
(feminism,
sustainability, etc.)

Eat out 1 or less 3.75 3.75


than 1 weekly (Agree) (Agree)

Have Food 3.86 4


delivered 1 or less (Agree) (Agree)
than 1 weekly

Haven’t tried 3.9 4.2


Yellow Cab (Agree) (Agree)

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4. Delivery Charge

This product development aims to cater to the presumed


continuous upward trend in delivery purchases as a result of COVID-19.
Yellow Cab Pizza Co. previously had a fixed price for delivery charges for
any purchase regardless of the amount reached. This modification allows
consumers to forgo this additional fee after paying at least VND 95,000,
which converts to approximately Php 200, making relatively bigger orders
delivery charge free.

This strategy will also increase trial or possibility of purchase due


to the segmented data gathered:

Table 12. Delivery Charge Strategy Data from Respondents with Weak
Purchase Intent

Classification of Results for Budget Per Meal


Respondents
Below 50,001 225,001 350,001
50,000 VND - VND - VND and
VND 225,000 350,000 up
VND VND

Eat out 1 or less 0% 100% 0% 0%


than 1 weekly (majority)

Have Food 14.3% 57.1% 14.3% 14.3%


delivered 1 or less (majority)
than 1 weekly

Haven’t tried 0% 30% 50% 20%


Yellow Cab (majority)

B. Advertising Program
1. Search Engine Optimization

This program aims to address problem 1.1 in the SOP. Since the
company also sells their products through their website, it would benefit
their company to make use of Search Engine Optimization (SEO). Yellow

55
Cab Pizza Co.'s website is already comprehensive. It is easy to find all
necessary information, especially store locators, customer service, and
how to order. The menu and prices are also clearly stated and their
website is already mobile - friendly. In order to widen their market reach,
they must maximize the number of visitors for their website
(yellowcabpizza.vn) by ensuring that the same appears high on the list of
results returned by a search engine. This may be done by mastering key -
word research. The company must determine what their consumers look
up online in order to find products like what they sell, as well as questions
related to them. Google Keyword Planner is a mainstream tool to
determine the aforementioned words. After accomplishing this, they may
make the proper adjustments to their website by making sure they contain
these tags--whether they be headings for the products themselves,
descriptions, or tags that may be seen in their Frequently Asked
Questions (FAQ’s). Utilizing the Search Engine Optimization will benefit
their company.

2. Website Renovation
This strategy will address problem 1.1 in the SOP, consumers are
most inclined to purchase from restaurants that have been suggested to
them or were popular to their peers, a factor being raised as feedback to
this matter is to provide an interactive platform for consumers. Yellow Cab
utilizes its website as its alter ego - a representation of itself. Renovating
the website through showcasing PR advocacies such as healthy living
can provide and develop an identity to the brand. The website should
include cross reference links from experts and contents for healthier
living, diet, exercise and hygiene and sanitation management especially
that the COVID19 situation is still fresh. The website can also disclose the
ingredients in their product emphasising health benefits, calorie count,
protein percentages and other nutrition labels. The website can have an
interactive A.I. who can answer these information whenever customers
would want to ask as well as provide suggestions for healthier options in
the Menu or for D.I.Y. pizzas.

56
This strategy will also increase trial or possibility of purchase due
to the segmented data gathered:

Table 13. Website Renovation Strategy Data from Respondents with


Weak Purchase Intent

Classification of Mean Results of the Question


Respondents
I prefer brands that II prefer brands that have
have a nice and a quick delivery system.
easy website for
delivery.

Eat out 1 or less 4 4.25


than 1 weekly (Agree) (Agree)

Have Food 4 4.14


delivered 1 or less (Agree) (Agree)
than 1 weekly

Haven’t tried 4.6 4.6


Yellow Cab (Highly Agree) (Highly Agree)

C. Sales and Promotion Program


1. Menu Modification

The modification of the current physical menus of Yellow Cab


Pizza Co. in Vietnam is a measure done as a result of problem 1.1 and
1.2 in the statement of the problem, and the results of the UAI revealing
that most Vietnamese consumers tend to purchase healthier food and are
also willing to pay a slightly higher price for this healthier alternative. The
modifications on the menu will highlight the newly added healthy options
and vegan alternatives to their classic favorites. Close detail will be given
in disclosing the exact healthy ingredients of the new options,
guaranteeing that these ingredients are of high quality and provide
nutritious benefits. In addition, details on group deals will also be added

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considering the results of the UAI that state that most of the consumers
eat in groups. This ensures that easy access to group deals and better
prices for them to choose from. These customization in the design of the
overall menu will in turn increase price value perception of the said
products for the consumers.
There will be three culinary institutions that the company will be in
collaboration with for the menu modification. These professionals will be
able to guide the restaurant to attracting customers with high-standard
tastes. The three are:

● The Saigontourist Hospitality College - A cooking and


tourist based college that prioritizes teaching its students
the arts of cooking and the mechanics of tourism. Their
base of operations is in Ho Chi Minh City of Vietnam,
where they have been operating for more than 30 years.
● Hanoi Cooking Center - A hands-on culinary workshop that
specializes specifically on Vietnamese food. They are
based in Hanoi City in Vietnam, and is run by Chef Tracy
Lister, a renowned Vietnamese chef and author of the
Vietnamese Street Food book.
● Green Bamboo Cooking School - Led by the mutli-lingual
Vietnamese Chef Van, the culinary school is meant to
teach the intricacies of Vietnam’s food culture. It is a school
that is for all ages, and is the perfect learning center for
beginners and foreigners. It is located in Hoi An.

2. Student Discounts

This program aims to address both problem 1.1 and 1.2 stated in
the SOP, as well as the UAI finding that Vietnamese consumers often eat
out with their peers as half of our target market are students. Since the
majority of basic education students are enrolled on a half - day basis,
they are more compelled to eat out for lunch. This program enables all

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students to receive a 10% discount on school months upon the
presentation of their school identification card.

3. Seasonal Discounts
Although data analysis shows that discounts and sales are at the
bottom of what mainly attracts consumers in an advertisement, Drew
(2019) states that seasonal discounts are still used all the time to attract
markets and are a potentially useful tool to help a business manage its
uneven revenue patterns throughout the year and ensure inventory
turnover. The specific details and context of these seasonal discounts will
depend on their sales activity in the coming future, thus there are two
simple guidelines for Yellow Cab to execute seasonal discounts
successfully.

● Identify Low Demand Products


The amount of the discount is usually highest on the items of
lowest demand. Not only does this create an attraction for foot traffic to
increase, but it also helps with their inventory and promotion of their
brand. This is mainly the reason why the specific details and context of
these seasonal discounts will depend on their sales activity in the coming
future.

● Execute on Date-Specific Seasons


According to Wong (2018), a few peak seasons that increase foot
traffic in restaurants would involve Chinese New Year, Christmas,
Valentine’s Day, Back-to-School, and Graduation. Yellow Cab should
release their seasonal discounts during these peak dates. The context
and theme of these discounts should pattern with these seasons
especially when incorporating games and contests. Incentives would
include winning coupons, purchase tickets or stickers, and other prizes.

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D. Personal Selling
1. Staff Training: Behavioral Modification

Staff attitude and behavior is an important factor in determining if


customers will be coming back for more. According to Emily Newman
(n.d.), employee attitude can greatly affect customer behavior. That is why
staff training will be imposed to make sure that the employees are
properly trained and ready to represent the brand in a good image. This is
a solution to Problem 1.1 in the Statement of the Problem, which is
concerned with the overall image of the restaurant. Based on the results
of the survey, 56.7% of the respondents say that it is important to them
that the staff show proper behavior and maintain a friendly and pleasing
attitude throughout their visit. 73.3% also say that appearances are
important for restaurant appeal. Employees on the front line will have to
clean up their appearances, make sure that they are following the proper
dress codes and keep an upbeat attitude. Upon hiring, they will be tested
in order to determine if they are able to uphold the restaurant’s name and
serve the customers.

63.6% of the respondents in the interview say that it is important to


them that they are given prompt service. Alongside this, 56.7% of them
say that it is important for employees to be genuinely interested and
concerned when a problem is found. Staff will be properly trained to
handle these types of situations, and will have supervisors to watch over
them in order to monitor their response to the problem and attitude
towards it.

E. Public Relations

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1. Influencer Collaborations: Youtube

Mukbangs and food ASMR (autonomous sensory meridian


response), have been rising in popularity for the past decade. Mukbangs
are otherwise known as eating shows, where people show off delicious
food that they eat in order to please the viewer’s eye. Food ASMR is akin
to mukbangs, where food is being eaten but in a quiet environment where
only the sound of the food being eaten is heard. There are thousands
upon thousands of mukbangs and food ASMR videos on Youtube, an
online video-sharing platform, with millions of views for a lot of them. The
reason that these videos are garnering such attention is because of the
food, especially when they look incredibly appetizing and appealing to the
eye.

According to Katie Jackson of TODAY, it first started as a Korean


phenomenon that has since 2015 expanded globally. Many people have
been able to create careers out of this, posting regular mukbangs and
food ASMR videos with different food every video. The more the views,
the bigger the income for the content creators. That is why Yellow Cab
Pizza will be collaborating with various mukbang channels in order to
promote Yellow Cab products. The collaborators will be showing off new
Yellow Cab products every new release, as well as using it in their
mukbang videos in order to entice viewers. Newly released goods will be
sent over to the collaborator and must immediately be used for video
content in order to ride the wave of the new release. The Youtubers that
the restaurant will be in collaboration with must be Vietnames Youtubers,
or at least have enough Vietnamese subscribers to make an impact in
sales. The following are possible collaborations:

● Chén ASMR-Family Chen - Vietnamese - 70.4K


subscribers
● QT-Vietnam - Vietnamese - 159K subscribers (Original
channel has 1.85M subscribers)

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This will all be in line with Problem 1.2 of the Statement of the
Problem, which is concerned with how Yellow Cab pizza is not catered to
Vietnamese tastes. The collaborating Youtubers must appeal to the
Vietnames market with the given Yellow Cab food.
2. Influencer Collaborations: Instagram
For Instagram, sponsored posts are not uncommon. Many
celebrities and social media influencers partner up with big companies on
the regular. In order to address Problem 1.2 of the Statement of the
Problem, which talks about how the Vietnamese respondents wanted a
Yellow Cab Pizza that was more catered to their taste. That is why in
collaboration with Vietnamese Instagram influencers, Yellow Cab Pizza
will be showcasing new goods that are catered to the Vietnamese public.
In order to gain a bigger audience on Instagram. Yellow Cab Pizza’s
Vietnamese Instagram account is mostly inactive, and has only posted
about new product releases so far. In order to get more attention to the
account, the following Vietnamese Instagram influencers are possible
collaborators:

● @sontungmtp - 2,937,224 followers


● @chipupu - 2,699,090 followers
● @tuilatranthanhday - 2,243,357 followers

The project will go as follows: After contacting the


influencers and agreeing to participate in a sponsorship, the
influencers will be sent the products. The influencer must then
create a post that showcases the product, along with a caption that
will be of the brand’s choosing. This partnership will go on for 6
months, when Yellow Cab Pizza can look for other influencers to
spread brand awareness even further.

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3. Influencer Collaborations: Tiktok

Much like the other sites such as Instagram and Youtube, TikTok
has become one of the biggest hits of 2019 and so far, 2020. With TikTok
stars becoming more and more famous with every video, it would be a
good plan for Yellow Cab to collaborate with TikTok stars in Vietnam to
spread brand awareness. A popular concept on the app is creating D.I.Y
recipes, ones that are crazy yet effective. This is a concept that Yellow
Cab Pizza can adopt as well, with pizza being the canvas. A
build-your-own pizza, or D.I.Y pizza feature will be installed into the
website so that pizzas can be made in every person’s individual tastes.
This is a solution to Problem 1.2 in the Statement of the Problem that
talks about the lack of Vietnames styled flavors. In collaboration with
Vietnamese TikTokers, the D.I.Y pizza feature can be advertised to the
public in order to bring attention to this solution. A possible partner for this
collaboration is Quang Dang, a Vietnamese celebrity who created a viral
dance in TikTok. With this influence, he will be able to increase brand
awareness by a significant amount.

4. Ecological Initiative: Partnership with Zero Waste Saigon


Organization

In relation to the product innovation strategy of incorporating 100%


biodegradable packaging to their products and supplies, it's important to
note that there is a growing number of people, businesses, and
organizations in Vietnam that advocate green alternatives according to
Phung (2018). This ecological initiative tackles both problem 1.1 and
problem 1.2 of the SOP. Connecting the Zero-Waste Initiative by taking
the 100% biodegradable packaging strategy under its wing would make it
more effective and solidify Yellow Cab’s eco-initiative. The company
should start a partnership with Zero Waste Saigon Organization in
Vietnam. According to Phung, the organization has a one-stop shop for
all things zero waste in Vietnam. In the matter of ten months, the blogger

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reports that these eco-warriors founded the Zero Waste Facebook Group,
opened a shop, and partnered with 15 restaurants to help them switch to
biodegradable alternatives. Given their brief background, their growing
reputation would be beneficial to both parties involved. Launching Yellow
Cab’s ZERO WASTE Initiative would involve a meeting up with the
organization and a thorough discussion of the partnership proposal with
all necessary people involved; such as the marketing directors to ensure
its effectiveness, agreements, and the like.

F. Social Media Marketing


1. Sponsored Posts

This section of the marketing strategy aims to address problem


1.1 in the SOP. Yellow Cab Pizza Co. Vietnam currently has
approximately 660 and 45,000 followers on Instagram and Facebook
respectively. In order to utilize their following, as well as grow it, the
company has to practice consistent posting and have one to two
sponsored posts every month which will be pushed by the social media
application for the whole duration of the month. In accordance with the
UAI results, the posts content will vary based on the timeline of strategies
and activities implemented for the month or season in order to utilize
unique selling points. Furthermore, they must incorporate aesthetic ways
of presenting the product/s, as well as promote their advocacies.

2. Eat Healthy, Stay Healthy

This section of the marketing strategy directs focus on the


promotion of new and fresh vegan alternatives in Yellow Cab’s social
media platforms. This is one of the solutions for problem 1.2 of the SOP.
In order to be able to adapt to Vietnam’s culture more seamlessly, the
promotion of healthy alternatives is exploited. According to findings, a
large chunk of the respondents preferred eating healthy, indicating a
strong trend in purchasing healthier food options and alternatives.

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Additionally, the majority of the Vietnamese consumers have been found
to be following certain diets, willing to pay a higher price for healthier food,
and are more likely to order greens even in fast food restaurants.

3. Short Story Commercials

The animated short story commercial (due to constraints on


physical production technicalities for the new normal) will be tackling the
concerns of the respondents, about how everyone should be able to have
a good time when eating out with friends especially with the adjustments
to the new normal living. According to Cody Delistraty, there is huge
importance in eating together with friends and family. It can give people a
sense of belongingness, one that people need in their lives. The story of
the commercial will go as follows. The cast are two boys and two girls,
who will act as a group of best friends. After each individual character is
given their own set of good news, they all call each other up to celebrate.
They agree on celebrating at their usual spot, Yellow Cab Pizza, their old
hangout spot from their youth. They all get together and smiles are all
around. After ordering their usual food, they all talk and gossip about the
latest happenings in their lives.

Another commercial will be shot in Vietnam. This commercial will


showcase the Vietnamese values of respect for other people, especially
teachers. The Vietnames hold teachers in high regards, and are incredibly
important in shaping the minds of their youth. The commercial will go as
follows. A Vietnamese teacher is shown to not have a family, so he treats
his own students as his family. However, graduation day for his students
arrive, and his makeshift family will have to separate. The students find
out that their teacher is upset about their graduation, so they plan to
surprise him in Yellow Cab Pizza. There, they throw him a party to show
him how much they appreciate him. Everyone is happy and smiling. They

65
give the teacher a framed photo of the entire class, for him to remember
them. They promise to get together again one day.

This commercial can be made through animation or tweaked to an


online story through video chat scenes and other creative execution that
manifest the new normal living. Moreover, showcasing frontliners in the
story can also be a way to show gratitude and representation to the new
heroes of the society.

4. Online Games and Competitions

Online contests are a staple for brands that mean to increase and
maintain social media interaction across their platforms. A series of online
games will be carried out throughout the various seasons and holidays in
Vietnam to foster interaction and increase social media presence. The
games are going to be themed according to the holiday or season that
they will be released on, prizes will vary from coupons, discounts, and
season or holiday themed goodies.

G. Direct Marketing
1. Email Promotions
This section of the marketing strategy aims to address problem
1.1 of the SOP. It will involve the use of email and text messaging to
effectively and efficiently communicate directly with or solicit response or
dialogue from customers and prospects. Information will be collected from
Yellow Cab Pizza Co.’s database of consumers who have purchased
online--hence providing their email addresses and/or cell phone numbers.
The contents of the message shall vary based on the timeline of
strategies and activities implemented for the month or season in order to
utilize unique selling points. Emphasized talking points will be the
announcement of new vegan products and D.I.Y. pizza feature, the
ecological initiative, COVID-19 initiative, as well as the improved service

66
to be obtained from the staff training to address the UAI findings about the
complaints on and expected attributes in relation to customer service.

H. Gantt Chart
Table 14. Gantt Chart

Month (2022)
Strategies
1 2 3 4 5 6 7 8 9 10 11 12

Product Development and Innovation Initiatives

Vegan Food

D.I.Y. Pizza

100% Biodegradable Packaging

Delivery Charge

All throughout the year, product development and innovation initiatives will continue through.

Advertising Program

Billboards

Search Engine Optimization

Website Renovation

Before the year starts, advertisements and website adjustments will be placed in order to make sure
that they are all effective by the time the year starts. These advertisements and website
adjustments will be in place all throughout the year.

Sales and Promotion Program

Menu Modification

Student Discounts

Seasonal Discounts

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Student discounts will be held quarterly after schools have finished conducting their final exams or
tests. The seasonal discounts are strategically placed in order to hit specific seasonal events which
are: Valentine’s Day, Chinese New Year, Christmas Season, Graduation Days and Back-to-School.

Personal Selling

Staff Training and Behavioral


Modification

Staff training will be held 3 times a year within a 3 month gap in order to refresh and update
employee skills efficiently. This is done in order to provide time for any major or minor adjustments.

Public Relations

Youtube Influencer Collaborations

Instagram Influencer
Collaborations

Tiktok Influencer Collaborations

Ecological Initiative Advocacy

The Youtube Influencer Collaborations will be alternating with the Instagram Influencer
Collaborations in order to give focus on one specific collaboration. On the other hand, the TikTok
Influencer Collaborations and Ecological Initiative Advocacy will continue throughout the year as it
has lower cost compared to the first two.

Social Media Marketing

Sponsored Posts

Eat Healthy, Stay Healthy


Campaign

Short Story Commercial

Online Games and Competitions

The sponsored posts will be conducted every 4 months within a year, as opposed to every month.
This will make sure to keep brand awareness while not being too overbearing with the
advertisements. The Eat Healthy, Stay Healthy Campaign will last throughout the year, as it is
always important to always keep oneself healthy. The Short Story Commercials will be shown thrice
a year, once at the beginning, middle, and end of the year. The Online Games and Competitions will
be the alternative schedule of the Seasonal Discount schedule, just to keep the consumers aware
and participative in non-seasonal times.

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Direct Marketing

Email Promotions

Email Promotion will be sent out on three occasions: (1) The first two months of the season which
are just after Christmas season, (2) the middle of the year when various companies give out the
13th month pay, and the -ber months, where there are numerous holidays.

I. Logistics
Main logistical objectives:
● Cost Reduction
● Capital Reduction
● Service Improvement

1. Transportation
a. Efficient vehicle utilization :

● Maximizing vehicle load rates requires optimal routing and scheduling

● Consolidating delivery routes and reducing the number of required stops

● Apply a Transportation management system (TMS)


>TMS software automates many key transportation functions,
including optimal carrier selection, load building, fleet
management, routing and scheduling, and freight audit payment.
(expensive, but ROI is < 1 year)

These strategies contribute to reducing carbon footprint, increase logistics


efficiency, and reduce transportation cost.

b. Reducing Empty Backhauling:

● Carrying goods on return trips, rather than returning with empty trucks

69
● After delivering products to a distributor, an empty truck can be routed to
a nearby vendor to pick up raw materials

These strategies can significantly improve vehicle load rates as


backhauling increases overall fleet efficiency and reduces transportation costs for
suppliers and customers, as well as help reducing environmental impacts

c. Appropriate vehicle selection

● Short term: leasing a vehicle allows organizations to avoid up-front


investment
>Maintenance costs, risk of mechanical breakdowns are all
responsibilities of the leasing company

● Long term : purchasing a vehicle can be less costly in the long run,
depending upon the terms and conditions of the leasing contract (e.g.,
interest rate, down payment, and payment period)

This strategy aims to address and contribute to transportation efficiency.

d. Frequent and timely deliveries


● Ensuring on-time deliveries
> facilitates effective and efficient cross docking by reducing
waiting times for outbound trucks.

● Frequent deliveries in large quantities


>This is because small quantities can depress vehicle load rates,
creating a financial burden for suppliers and distributors

Having frequent and timely deliveries encourages repeat business,


maintenance of good product quality and benefits customers by increasing
product availability and freshness.

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e. Developing transportation collaborations

● Horizontal collaboration
> occurs between organizations in different supply chains to better
utilize assets and reduce overall costs
> organizations cluster their logistics activities and assets (e.g.,
through shared transportation and processing facilities)
> shared consolidation centers, joint trucking routes, and
optimization of the entire transportation network across multiple
competing supply chains

● Vertical collaboration
> occurs between entities belonging to the same supply chains,
either upstream (i.e., with suppliers), downstream (i.e., with customers),
or internally across functions in an organization
> information exchange via interconnected system between
successive partners in a supply chain
> real-time sharing of information between distributors and
retailers will enable them to identify delivery problems as they
occur.

Successful supply chains rely on long-term strategic collaborations that


enable participants to work together to create an effective and efficient
transportation system.

f. Third-Party Logistics (3PL)

● Manages one or more logistics processes or operations (typically


transportation or warehousing) for another company
● Providers integrate multiple customer loads using sophisticated software
to improve load rates and enable product traceability

71
● Provide aggregated information for many small suppliers in a single
location

2. Inventory
a. Automate Your Inventory Management Systems

● Automated stock management systems are not only more efficient than

manual stock management, but also more precise, time-saving and


productive. By automating their stock management, business owners can
cut costs while also reducing errors and increasing efficiency
b. Data and Analytics
● Using data enables business owners to always have accurate product
information and sales forecasts at a moment’s notice. With the
information, they’re able to better predict product market demand and, in
turn, help their businesses to scale their inventory up or down, depending
on the immediate need.Just In Time Inventory Management
c. Just In Time Inventory Management

● Focuses on adopting the approach of ensuring that only what’s needed to

fulfill current and expected customer orders is kept in stock. This way, you
can cut your warehousing costs and better optimize your existing storage
space more cost-effectively!
d. Employ a Safety Stock Inventory
● With this strategy, a business owner makes sure that a small but surplus
amount of goods are kept on-hand. This way, they’re able to guard
against any unexpected surge in demand that could strain their existing
product stock.
e. Integrate with Mobile Technology
● By downloading any apps for inventory management tools, business
owners can access their critical stock data anytime and anywhere!

3. Location

a. Growth and Expansion

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● In congruence with the development contract of Max’s Group
Incorporated and Blue Star Food Corporation, the establishment of at
least 12 Yellow Cab Pizza Stores within 5 years from 2017 was agreed
upon. Currently there are a total of 7 store locations situated all over Ho
Chi MInh City. The remaining 5 stores for the next two years will be
planned on.
b. Strategic Store Placements
● Seeing as the current seven store locations are placed in the heart of Ho
Chi Minh’s busy streets, it would only be natural to establish the
succeeding restaurants further north in the capital and second most
highly populated city in Vietnam, Hanoi City. The remaining restaurant
location will be strategically placed in key areas such as universities and
busy work areas in the city. This will ensure a steady flow of customers
and a high influx during work or school breaks.
c. Additional Warehousing
● Warehousing is essential in the placement of physical stores, as these
buildings will store a majority of the products, and ingredients that the
stores will use. The more convenient the location and size of the
warehouse is the better and quicker it is to access.
d. Distribution Planning
● Distribution planning between warehouses and restaurant locations will
make a difference in efficiency. Warehouse movement should be planned
in order to be able to go from restaurant locations with ease.
e. Warehouse Labor Policies
● More effective policies and practices can be conducted. With proper
supervision on the implementation of the new policies and practices,
stocks of fresh ingredients for multiple products especially for the
healthier food alternatives will be efficiently delivered.

4. Take - Out Operations

a. Collaboration with Delivery Services

73
● Collaboration with delivery apps such as Food Panda and GrabFood to
deliver to more areas that may not be within range of the Yellow Cab
Pizza restaurant.
b. Investment in Company Delivery System
● Investment in better equipment used for deliveries such as motorbike
vehicles, as well as proper screening during rider recruitments.
c. Addition of New/Improved Features to Yellow Cab Now App
● Introduction of tracking system after order has been placed. Driver is
precisely located with estimated travel time, accounting traffic reports,
weather, and any other casualties.
● Enabling messaging with delivery drivers.
● Rating system after food has been successfully delivered, as well as a
comment section to input concerns and comments that could improve
delivery system.
● Delivery charge fee after a certain price has been passed, VND 95,000 on
both the Yellow Cab Now app and other food delivery apps.
● Users of the Yellow Cab Now app will only be given a 3-minute window to
cancel their order if they wish. After the time has passed, they cannot
cancel their orders, as it is already in the process of being made.
d. Freebies
● Restaurants give customers an expected time of arrival for their delivery,
but unlikely circumstances can cause deliveries to be late. 15 minutes
after the expected time of arrival has passed, drivers will include coupon
cards in the delivery as compensation for the late arrival.

74
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9 Eco-Friendly Packaging Alternatives for Your Business's Shipping Needs.
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shipping-needs/

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