Professional Documents
Culture Documents
Presented to:
MAX’s Group
Through the
Marketing and Advertising Department
Ramon V. Del Rosario College of Business
De La Salle University - Manila
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
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List of Figures
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
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.
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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
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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
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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
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).
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.
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.
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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.
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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.
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.
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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.
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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
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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
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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
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).
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I. Comparative STEEPLE Analysis
Social
Figure 5. Philippine Census from 1990 - 2015. Retrieved May 2, 2020 from
https://psa.gov.ph/content/highlights-philippine-population-2015-census-population
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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
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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%.
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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).
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
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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.
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
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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
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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
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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.
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percent in the same period in 2019 as per the General Statistics Office of Vietnam
(GSO).
Figure 13: Inflation Rate in Vietnam from 2013 - 2018. Retrieved March 12, 2020 from:
https://worldpopulationreview.com/countries/vietnam-population/
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Environmental
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.
28
Agreement with EU (2012). The following are the ethical laws of Vietnam as retrieved
from the Vietnam International Law Firm:
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.”
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.
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.
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.
● 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.
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.
STRENGTH WEAKNESS
34
OPPORTUNITIES THREATS
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
VI. Methodology
A. Research Design
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
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.
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
40
the Industry's data in Vietnam, assuming that the pizza stores can produce sales
proportionate to the size of Pizza shops:
B. Market Share
41
(43.3%).
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:
42
promising and needs more research in terms of what ingredients
and food style they choose to present in their products.
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.
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.
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
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
46
c. Place and Distribution
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
f. Service Quality
48
relevant to be given sincere interest and concern when they
encounter a problem with their products or service.
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
50
- Brand needs to have a menu
and/or deals and promotions that
cater to this
IX. Strategy
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.
51
sellers from the vegan menu to their main menu to make them even more
open to both vegan and meat lovers alike.
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.
Table 10. D.I.Y. Pizza Strategy Data from Respondents with Weak
Purchase Intent
Have Food 4
delivered 1 or less (Agree)
than 1 weekly
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.
54
4. Delivery Charge
Table 12. Delivery Charge Strategy Data from Respondents with Weak
Purchase Intent
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:
57
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:
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
58
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.
59
D. Personal Selling
1. Staff Training: Behavioral Modification
E. Public Relations
60
1. Influencer Collaborations: Youtube
61
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:
62
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.
63
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.
64
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.
65
give the teacher a framed photo of the entire class, for him to remember
them. They promise to get together again one day.
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
Vegan Food
D.I.Y. Pizza
Delivery Charge
All throughout the year, product development and innovation initiatives will continue through.
Advertising Program
Billboards
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.
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 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
Instagram Influencer
Collaborations
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.
Sponsored Posts
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 :
● Carrying goods on return trips, rather than returning with empty trucks
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● After delivering products to a distributor, an empty truck can be routed to
a nearby vendor to pick up raw materials
● 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)
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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.
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● 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
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
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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.
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● 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.
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Appendix
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