HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY

INSTITUTE OF INTERNATIONAL EDUCATION

ASSIGNMENT

Major: MARKETING

Course code: MAR130

Course name: SERVICES MARKETING

Lecturer’s name: MSc.Pham Ngoc Tram Anh

Student’s name:

1. Võ Quỳnh Anh ID: 2082300176 Class: 20DMAQA2

2. Huỳnh Ngọc Thảo ID: 2082300101 Class: 20DMAQA2

3. Đinh Đoàn Thúy Quỳnh ID: 2011161048 Class: 20DMAQA2

4. Trần Quốc Thanh ID: 2011231991 Class: 20DMAQA2

5. Phạm Đức Long ID: 2011231783 Class: 20DMAQA2

HCMC, Sep 14th 2021

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 SOCIALIST REPUBLIC OF VIETNAM

Independence – Freedom - Happiness

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COMMENTS OF THE LECTURER

Student’s full name:

1. Võ Quỳnh Anh ID: 2082300176 Class: 20DMAQA2

2. Huỳnh Ngọc Thảo ID: 2082300101 Class: 20DMAQA2

3. Đinh Đoàn Thúy Quỳnh ID: 2011161048 Class: 20DMAQA2

4. Trần Quốc Thanh ID: 2011231991 Class: 20DMAQA2

Lecturer’s comments:
5. Phạm Đức Long ID: 2011231783 Class: 20DMAQA2
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Lecturer’s comments:
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HCMC, ………. (date)

Please sign here
Lecturer’s full name

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 TABLE OF CONTENT

I. MCDONALD'S BUSINESS OVERVIEW: ............................................... 4

1.1 Introducing McDonald's Vietnam ........................................................ 4

1.2 McDonald's products and services ....................................................... 4

1.2.1 Product: ................................................................................................ 5

1.2.2 Service:.................................................................................................. 5

II. CHARACTERISTICS OF TARGET CUSTOMERS: ............................. 6

III. PROPOSED NEW SERVICES FOR BUSINESSES:............................... 7

3.1 Introducing new service ............................................................................ 7

3.2 Four characteristics of service:................................................................. 9

3.2.1 Intangibility .......................................................................................... 9

3.2.2 Inseparability ....................................................................................... 9

3.2.3 Variability............................................................................................. 9

3.2.4 Perishability........................................................................................ 10

IV. DEMAND MANAGEMENT FOR THE NEW SERVICE: ................ 10

4.1 The characteristics of variation .............................................................. 10

4.2 Different Capacity Solutions ................................................................... 11

V. CONCLUSION: .......................................................................................... 11

Summary: ....................................................................................................... 11

Reference: ....................................................................................................... 13

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 I. MCDONALD'S BUSINESS OVERVIEW:

1.1 Introducing McDonald's Vietnam

(Resouce: Internet)
McDonald's is a group of the world's largest fast food restaurant chain, present in 119
countries with about 38,695 restaurants on all continents. Originating in California,
USA the company was founded in 1940 by brothers Richard and Maurice. Thereafter,
the foundation of today's successful business was acquired by Ray Kroc and developed
into one of the most successful fast food ventures in the world. McDonald's is not only
popular in the US but also in many other countries around the world such as: Belgium,
Canada, Japan, Germany, Australia,... In 2014, McDonald's had its first store in
Vietnam and achieved growth 40% per year. Every day, McDonald's worldwide serves
more than 70 million consumers, not only ensuring to bring them delicious, safe and
hygienic meals, but also making them satisfied with McDonald's services. McDonald's
sets a new benchmark for the fast food restaurant industry in Vietnam, providing
customers with a unique experience that can only be found at the restaurant chain. The
ambition of the business is to serve delicious food with professional, friendly staff and
be a good member of the community. McDonald's Vietnam is committed to applying
McDonald's global standards, which are: Quality, Service, Cleanliness and Values. [1]

1.2 McDonald's products and services

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1.2.1 Product:
The main product lines of McDonald's include: Hamburger and bread, chicken and fish,
Salad, snacks, drinks, desserts, McCafe. McDonald's is known mainly for its famous
Burger product. Therefore, the company has been constantly expanding the number of
its products. Customers can now buy chicken and fish, dessert or breakfast at
McDonald's itself. The product element of McDonald's marketing strategy indicates
that, if they want to attract new customers as well as retain familiar customers,
companies need to change and refresh their
products/services regularly. McDonald's
serves customers with the best quality food.
Raw materials for food preparation are
ordered from suppliers over a long period
of time. Food is prepared to a high and
consistent standard. McDonald's menus are
constantly being reviewed and improved to
ensure that the customer's expectations are
met. In Vietnam, the launch of the rice
menu is a big step for the famous global
food chain McDonald's to get closer to the culinary taste of Vietnamese people. [2]

1.2.2 Service:
The store is open 24 hours. McDonald's Vietnam is the first 24-hour fast food restaurant,
aiming to bring customers delicious meals at any time of the day.

McDonald's Vietnam is the first fast food restaurant to use the drive-thru model, buy
food without having to park, busy customers just need to pull over to the sales window,
order food and receive it. goods right there.

Services for organizing birthday parties for children. The professional organization
team of the business will prepare everything when a customer signs up for the party
planning service here, from planning, decorating, preparing food, games, and so on, you
just need to write to us. Relax and have fun with your baby on this big day.

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Free high-speed wifi system is installed in the restaurant. Customers can access the
Internet using laptops or mobile phones comfortably, enjoy surfing the net, send emails,
update personal pages and connect with friends. [3]

An indispensable service is the door-to-door delivery service. Customers can order food
on applications such as Now, Loship, Beamin or the restaurant's delivery phone number.
The dishes customers order will be delivered to their home in the most convenient and
fastest way. [3]

And an interesting type of service at McDonald's. At the end of July 2017, McDonald's
introduced the Self-order Kiosk (SOK) application to serve Vietnamese diners.
Customers can select dishes on the touch screen. The selection and payment can be done
very quickly and conveniently, customers will not need to wait in line to order. [3]

II. CHARACTERISTICS OF TARGET CUSTOMERS:

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Mcdonald's target customers are teenagers aged 16 - 29 years old. They are energetic
people who like a modern, famous, fast and Western lifestyle. Moreover, in this age
group is the age that likes to dress with personality and style to express their "Western"
nature through fashion, words and especially food. Customers who are young office
workers with stable income often go to restaurants during lunch break or after work
because they don't have much time to cook at home. They are people with stable
incomes, so it is very easy to choose McDonald's as a place to eat and drink with friends.
The most potential customers are children from 5-14 years old because children are
curious people, interested in new things and especially they want to eat greasy Western-
style food. Therefore, it is inevitable that parents buy fast food after school or weekends.
The demand for food especially increases on the weekend, this is the time for everyone
to relax The restaurant has attracted and retained customers with many promotions such
as there is always a children's play area and free gifts such as hats and balls. McDonald's
focuses on customers with middle-high income, because the food here costs 5-10%
higher than competitors such as KFC, Jolibee, .. [4]

III. PROPOSED NEW SERVICES FOR BUSINESSES:

3.1 Introducing new service

All fast food companies know that attracting children to their stores means being able
to attract their parents there, which means more sales. According to Eric Schlosser,
author of the book Fast Food Nation, 9 out of 10 kids between the ages of 3 and 9 visit
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a fast food restaurant at least once a month. There they can play and eat well, children
are considered as the target customers of McDonald's when the stores always have free
gifts such as hats and balls. More specifically, McDonald's also has meals for children,
combos with gifts to attract children, once a child has a good impression of McDonald's,
they will be loyal to McDonald's for the rest of the time of life. This is an additional
service that helps McDonald's fast food service (core service).

Based on those factors of McDonald's, our team has proposed a type of service that is
suitable for the previous marketing campaigns of the business. That's babysitting at a
McDonald's restaurant. Although children do not directly make decisions, they
significantly influence the search and selection needs of their parents. It would be great
for the kids to have a place to play after enjoying the food at McDonald's. In addition,
parents will have their own space to enjoy the food at the restaurant. This is a type of
service with invisible characteristics, children can't see and use the service before
buying a ticket, parents can also assess the quality of the service in advance, they can
hardly feel it. Service quality of the staff here.

Service details: When using the food service at McDonald's, parents can let their
children participate in the play area designed nearby by purchasing tickets. After that,
children will be given a bracelet and can enter the play area. Here, we have babysitting
staff, protecting the safety of children while parents enjoy food, check work messages,...
When picking up children, the staff must have the child's confirmation. children that it
is their parents. The play area includes many free toys that children love such as dolls,
logos, coloring comics and slides. There will be staff in charge of playing and looking
after children, they are qualified staff, trained in skills committed to making children
happy and ensuring absolute safety for children. Service will be charged by the hour

Service price list:

Service From 6-12 years old Over 12 years old Accompanying parent

Look after kid 80,000VND/hour 100,000VND/hour Free

(3 dollars/hour) (4 dollars/hour)

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This new service of McDonald's promises to bring children extremely interesting and
fun experiences, especially McDonald's wants to be closer to customers, creating a
loving bond. McDonald's shifts its stance from "better than the competition" to
providing "value to customers". In addition, parents can rest assured that when they are
busy, they still have time to take their children out to play, creating joy for children.

3.2 Four characteristics of service:

Services are useful human activities that create products that do not exist in physical
form in order to fully, timely and conveniently satisfy the needs of production and social
life. A service characteristic is an attribute or property of a service, which has four types
of characteristics: intangibility, inseparability, variability and perishability

3.2.1 Intangibility
Intangibility reflects the fact that rarely does a customer get a real product as a result of
a service activity. The result obtained with the client is often a pleasant experience or
not. This additional service is made up of many different factors, including intangible
elements that the customer cannot see or feel before using the service such as: toys for
children, service attitude of the staff,... only when children use the service can they feel
those elements.

3.2.2 Inseparability
Both the child customer and parent customer will in fact decide the production of the
service. Restaurant babysitters cannot provide service without the child customer input.
Child customers are both users and direct participants in the service production process.
Food service production is not done before the arrival of the customer.

3.2.3 Variability
McDonald's new add-on service is provided by humans (HR) to humans (children).
Parents and children can rate the service quality as high or low. For example, after
experiencing the childcare service of a restaurant, the children are very happy and
excited, this leads to a perception customers' parents about the good service quality for
the restaurant. This requires the restaurant's human resources department to pay more

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attention to the selection, training, placement and compensation of employees to
provide high quality service.

3.2.4 Perishability
Due to the simultaneous production and service users are children, products that are
toys for children may be damaged. Therefore, in addition to the criteria of choosing toys
with eye-catching colors, the restaurant needs to choose toys that are flexible, durable,
and safe for children to attract both children and parents.

IV. DEMAND MANAGEMENT FOR THE NEW SERVICE:

4.1 The characteristics of variation

Fluctuations in demand for services: Fluctuations in service demand are cyclical.

Specifically, McDonald's babysitting service will be used a lot by customers on
weekends, summer and holidays (especially on June 1 - Children's Day).

Patterns demand: On weekends, summer or holidays parents will have more time to
rest than they do not spend too much time at work, instead will focus on family and
their children. Children have more free time to entertain and have fun with their
families after hard school days. As a result, the demand for services will increase even
more. In addition, parents can also combine taking their children out, eating and
texting, meeting and talking with friends through this service without worrying about
anything.

Varies by market segment: At babysitting service, we have 2 main customer groups:

parent group and child customer group. The parent customer group is the group that
has the biggest impact on the service, they are the ones who pay for the services even
though they don't use them. Parents want to find a place when they have food, water
and play area for their children, especially for parents who do not have too much time
to take their children to many places. And with the group of children who use the
service, they can both meet the needs of delicious food that many children love, have
a place to play and bring back gifts. Children's desire to return to McDonald's play
area will make parents feel more secure and sympathetic to the babysitting service at

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McDonald's and will have more customers to choose from if there is a good
communication campaign.

4.2 Different Capacity Solutions

Increase demand: When the service is used by many people, especially on weekends
and holidays, the demand for the service will increase, causing demand to exceed
supply. At that time, we should do two options. The first option, increasing the ticket
price of the game area, will have a different price list on holidays and announced on the
company's social networking sites such as Facebook, Instagarm for customers to know
and choose. The second option appears when the number of customers requesting to use
the service is still quite large. Each combo meal for children will be given a small gift,
children can play their gift at the dining table. This not only helps the company to sell
the main product, attract customers but also retain customers who want to use the
restaurant's additional services.

Reduce demand: The need for services will decrease on weekdays, when parents are
busy with work and do not have too much time to spend with the family. Therefore, it
is necessary to have a plan to attract customers to use the service, babysitting service
will be discounted by 15% on Wednesdays every week. Moreover, at the amusement
park, there will be a drawing contest for children, the results will be announced on the
McDonald's page, the prize for the winner will be the restaurant's children's meal.

V. CONCLUSION:

Summary:

Mc'Donalds is a in the most of the brand of fast food, has many branches and has the
highest sales in the United States. In 2014, McDonald's opened its first store in Vietnam
and achieved a growth rate of 40% per year. Every day, McDonald's worldwide serves
more than 70 million consumers, making sure not only to bring them delicious, safe and
hygienic meals, but also to make them satisfied with McDonald's service. A unique
experience that can only be found at chain restaurants. McDonald's global standards,
which are: Quality, Service, Cleanliness and Value.Mcdonald's target customers are

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teenagers from 16 - 29 years old, who prefer a modern, Western lifestyle. Moreover, at
this age is the age that likes to dress with personality and style to express his "Western"
nature through fashion, words and especially food. Some customers are office workers
with stable income who often go to the restaurant during lunch break or after work
because they do not have much time to cook at home. They are people with stable
incomes, so it is easy to choose McDonald's as a place to eat and hang out with friends.
The most potential customers are children from 5-14 years old because children are
curious objects, like new things and especially they want to eat greasy Western-style
food. Therefore, it is inevitable for parents to buy fast food after school or on the
weekend. The demand for food is especially high on weekends because this is the time
when people relax. The restaurant has attracted and retained customers with many
promotions

But in today's competitive business, Mc'Donald's needs to be more creative to make

their food and services more accessible and satisfying, changing their strategy
accordingly, adapting with a changing society. We've proposed several new offerings
for the restaurant's business that align with the business' previous marketing campaigns.
It's babysitting at a McDonald's restaurant. Although children do not directly make
decisions, they have a significant influence on the search and selection needs of parents.
It will be great when the children have a place to play after enjoying the food at
McDonald's. In addition, parents will have their own space to enjoy dishes at the
restaurant. This is a type of service with invisible characteristics, children cannot see
and use the service before buying tickets, parents can also pre-evaluate the quality of
the service, they can hardly feel it. Service quality of the staff here. This new service,
charged by the hour, promises to bring children an extremely interesting and fun
experience, especially McDonald's wants to be closer to customers, creating a loving
bond. In addition, parents can rest assured that when busy, they still have time to take
their children out to play, creating fun for children. Specifically, McDonald's
babysitting service will be used by many customers on weekends, summer and holidays
(especially June 1 - Children's Day). work, will instead focus on their families and
children. Children have a lot of free time to relax and have fun with their families after
hard school days. As a result, the demand for services will increase. The parent customer

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group is the group that has the biggest influence on the service, they are the ones who
pay for the services even though they don't use it. Parents want to find a place when
there is food, water and play area for their children, especially for parents who do not
have too much time to take their children to many places. And for the group of children
who use the service, they can both meet the needs of delicious food that many children
love, and have a place to play and bring back gifts. Children's desire to return to
McDonald's play area will make parents feel more secure and more sympathetic to the
babysitting service at McDonald's.

Reference:
[1]. Market realist. Mcdonals overview segments buybacks valuation [online], viewed
October 7th 2020, from:< https://marketrealist.com/2019/11/mcdonalds-overview-
segments-buybacks-valuation/ >

[2]. McDonal. Thuc don [online], viewed December 5th 2021, from:<
https://mcdonalds.vn/thuc-don >

[3]. Dan tri, kinh doanh. Goi mon tu dong trong nha hang [online], viewed November
8th 2016, from:< https://dantri.com.vn/thi-truong/goi-mon-tu-dong-trong-nha-hang-
nganh-fb-trong-cuoc-dua-cong-nghe-20170802121324224.htm >

[4]. Slideshare, ke hoach marketing cho mcdonald [online], viewed May 4th 2013,
from:< https://www.slideshare.net/MaCaRong123/k-hoch-marketing-cho-mcdonalds-
ti-vit-nam-young-marketers-2013 >

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