THE UNIVERSITY OF DANANG

VNUK INSTITUTE FOR RESEARCH AND EXECUTIVE EDUCATION

INTRODUCTION TO MARKETING 2
GROUP PROJECT PRESENTATION
Research topic:

GOLDEN GATE
Lecturer name : Nguyễn Trường Gia Bảo

Group name : Stars

Assignment due date : March, 21st,2024

Group Member

Ngô Thị Phương Ánh : 22010034

Nguyễn Đức Bảo : 22080022

Nguyễn Thảo Nguyên : 22070015

Ngô Phạm Diệu Linh : 22080037

Lê Thảo Ngân : 22010065

Đặng Thị Minh Thư : 22010045

Da Nang, March, 2024

Table of Contents
1. Introduction about the company and the sector: ...................................................... 3
2. Overview of the F&B Market in Vietnam: ................................................................ 3
3. Overview of Key Market Segments: ........................................................................... 5
4. External Factors Impacting the F&B Market and Golden Gate: .......................... 13
5. References: .................................................................................................................. 14

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 1. Introduction about the company and the sector:
• Golden Gate:

Golden Gate was founded in 2005 and is one of the leading prestigious culinary groups in
Vietnam.
More than 40 restaurant brands with 5 main culinary styles: Hotpot, Grill, Asian, European,
and tea, coffee, and fast food shops. Some famous brands: Hotpot Paradise, Kichi Kichi, Sumo
BBQ, Ashima, Three Sheep, Pho Ngon 37, City Beer Station,...
Some outstanding achievements such as top 10 Enterprises with the best working environment
in Vietnam in 2023, the top 50 fastest-growing enterprises in Vietnam in 2022, and the top 10
most prestigious restaurant brands in Vietnam in 2021.

• Hot pot:

Golden Gate owns a diverse hot pot system including mushroom hot pot, Thai hot pot, crab
hot pot, conveyor belt hot pot, and grilled hot pot.
Thanks to the use of fresh ingredients, diverse flavors and good service such as luxurious
space, enthusiastic staff, and reasonable prices, Golden Gate Hot Pot has created a highlight.
Some prominent hot pot brands include Ashima, Kichi Kichi, Hotpot Paradise, and
SumoBBQ.

2. Overview of the F&B Market in Vietnam:

• Market scale and growth trends (GDP of the F&B sector in the market, etc.):
• In 2019, Vietnam was among the top 10 attractive destinations in Asia for F&B,
according to IBM's assessment. In 2020, despite the COVID-19 pandemic, the total
revenue of food and beverage products in Vietnam reached $975.867 billion, a 3.8%
increase compared to the same period, and accounted for 15.8% of the total GDP.
• In 2022, the F&B market in Vietnam is experiencing a significant recovery after the
Covid-19 pandemic. The revenue scale of the F&B industry in 2022 reached nearly 610
trillion VND, a growth of 39%. The out-of-home dining market alone recorded revenue
of 333.69 trillion VND, recovering close to the pre-pandemic level.

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 • However, from Quarter 4/2023 to the beginning of 2024, the global economy in general
and the Vietnamese economy faced numerous difficulties, threatening consumer
spending and behavior.
• Growth trends:
• According to various studies, Vietnamese people are increasingly spending more on
dining services. One important reason is the rising income of the Vietnamese
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 population. The emerging middle class in Vietnam, with an increasingly prosperous
lifestyle, reflects the country's annual GDP growth rate of 5% over the past 20 years,
which is 1.7 times faster than the global average.
• In the next 5 years, Fitch Solutions, a global credit rating agency, predicts that the
average income per Vietnamese household will have a compound growth rate of around
9% in VND.

=> As a result, the budget allocated to dining activities is also increasing, and the image of
Vietnamese people going to restaurants on weekends is no longer unfamiliar.

• The Business Market Report of the Food and Beverage Industry in Vietnam in 2022
shows positive signs of the F&B and hospitality market due to the reopening and
promotion of tourism.
• The F&B industry in Vietnam achieved high growth with a revenue scale of nearly 610
trillion VND, projected to grow by 18% in 2023 and reach a value of nearly 1 million
trillion VND by 2026. (Tổng quan thị trường F&B Việt Nam 2024. bePOS.)
• Market drivers:
• According to the Vietnam Report, the growth of the F&B industry from now until the
end of 2023 mainly relies on three driving forces. (Top 10 Công Ty Uy Tín Ngành Thực
Phẩm - Đồ Uống Năm 2023, n.d.)
• Firstly, the reduction in interest rates helps F&B businesses reduce borrowing costs and
increase access to capital, promoting production activities and developing distribution
channels.
• Secondly, there are indications that international tourist arrivals are in the process of
recovery, making a significant contribution to the growth of the F&B industry in the
future.
• Thirdly, the trend of shifting from traditional channels to modern ones continues to be
one of the growth drivers for companies in the industry.

3. Overview of Key Market Segments:

• Scale, growth rate, and characteristics of the main market segments.

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 • In reality, after two years of struggling to survive the pandemic, in 2022, the F&B
market has regained its growth, even surpassing pre-Covid-19 levels. Specifically, in
2022, Vietnam had approximately 338,600 restaurants, with an annual growth rate in
the period of 2016-2022 of about 2%. The F&B industry's revenue has seen an
impressive increase of 39% compared to 2021, reaching nearly 610 trillion VND,
surpassing the pre-pandemic period.
• According to a survey, 90% of people enjoy dining out at restaurants, 75% prefer
cooking at home, and 40% consider dining at restaurants as part of their weekly
lifestyle. In many countries, people allocate 6-10% of their total budget to restaurants.
• According to the IPOS.VN reports, that 63.6% of businesses have experienced a
decline in revenue. Despite the economic difficulties, 47.5% of customers increased
their spending in the first six months of the year. Notably, the age group of 23-25 has
the highest increase rate.
• In the context of global economic impact and widespread waves of layoffs, 32% of
customers stated that they have reduced their expenses. The age group of 26-31 has the
highest rate of expenditure reduction at 52.6%.
• The main reasons for the end-of-year decline are inflation and economic difficulties.
Increased bank interest rates and credit tightening have also caused many investors to
pause their plans and wait for better opportunities," the report evaluated.

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 • According to forecasts from the analysis group, although the Vietnamese economy will
face various pressures in 2023, the F&B industry's revenue in Vietnam is expected to
grow by 18%, reaching 720.3 trillion VND. After recovering from the pandemic, the
F&B sector will continue to develop at a stable pace and is projected to reach a value
of nearly 1 million trillion VND by 2026.

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 • Specifically, 95% of F&B revenue comes from individual services such as restaurants
and eateries, while only 5% of the market share is attributed to food service chains.
Notably, independent restaurants and eateries are more popular in the domestic market.
(CleverAds, 2023)
• Demographic factors:

Geographic location: The F&B market in Vietnam is diverse in terms of geographic

locations, ranging from cities to rural areas and tourist destinations. The geographical
differences influence culinary preferences, culinary culture, and consumption
demands. Understanding this aspect allows businesses to customize their products,
menus, and marketing campaigns to suit each geographic region.
Income: Customer income plays a significant role in determining the F&B market
segment. Customers with higher incomes tend to consume higher-end products and
services. Having a clear understanding of customer income enables businesses to create
value and cater to the consumption abilities of different customer groups.
Consumption habits: Demographics help understand the consumption habits of
customers, including timing, frequency, preferences, and culinary styles.
Understanding these factors helps F&B businesses create products and services that
align with customer needs and expectations.

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 • Customer psychological factors:

-Increase profits, and stimulate demand for products and services: during the consulting
and product introduction process, customers and employees must go through many
stages: research, testing, suitability, consideration, comparison, etc. Therefore,
understanding customer psychology is one of the important steps that determines
customers' purchasing behavior.
- Create sustainable relationships, and build customer loyalty and trust in the business:
Understanding psychology, making appropriate choices, and providing great
experiences will make customers feel better. good impression for the business.
- Improve customer experience to improve product and service quality. Bringing the
business's name and products closer to customers and consumers
- Develop new opportunities: Grasping customer psychology helps businesses have the
opportunity to promote themselves and come up with appropriate strategies for many
target groups with different ages, personalities, professions, etc. together

• There are many other customer file classifications:

a, Average customers:
This is a group of customers who care a lot about the price of food/drinks.
=> Restaurants can use price as a competitive factor. For example, meal set 99k, 139k,
etc. Besides, you can actively run promotions and discount policies. But be careful not
to overuse discounts because it will create a "bad habit" for customers: only when there
is a discount will they come to eat.
b, Mid-level customers:
This group of customers can afford meals at mid-range prices. The number of middle-
class customers accounts for the majority of the 3 customer classifications by income.
=> Provide a tasting menu to stimulate their desire to experience new dishes.
c, High-end customers:
This is a group of customers willing to spend on high-end dishes, demanding prices
coupled with quality, appearance, and service attitude. (Diệu, 2023)

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 => Provide worthy luxury dining experiences. In particular, the restaurant always
emphasizes the origin of high-quality, fresh, and healthy ingredients.
• Psychological characteristics of customers aged 18 - 34 years old:

+ Have independence in consumption, have the ability to make money, and freely buy
products they like
+ Like things that are new, creative, and suitable for them
+ Often choose products based on emotions and preferences

• Psychological characteristics of customers aged 35 - 65 years old

+ Tend to choose products based on price and form

+ Choose products according to reason and necessity
+ Pay attention to convenience, high value/good for health

• Buying behavior factors:

• Social influence: External factors influence how consumers perceive and evaluate F&B
services. This includes opinions and feedback from family, friends, relatives, or the
community. Customers may decide to make purchases based on social influence, such
as online reviews, recommendations from acquaintances, or community reactions to a
specific restaurant or product.
• Service: Service is an important factor influencing buying behavior. Good service, staff
attitudes, and overall experiences at a restaurant can create positive or negative
impressions on customers.
• Price: Price is a determining factor for consumer purchasing decisions. Customers often
compare prices of products and services with the value they receive. Price levels can
be a deciding factor in choosing between restaurants or products.
• Food quality: Food quality is a crucial factor in purchasing decisions. Consumers
expect tasty, clean, and safe food when buying from F&B establishments. Quality
assurance and the origin of food ingredients can also influence customer purchasing
decisions.
• Purchasing behavioral factors

a, Income and purchasing behavior:

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 (Admin, 2023)

• High-income customer groups tend to eat out more, often spend more on meals, and
frequently use online delivery services.
• Low-income customer groups often choose to eat out on special occasions and tend to
spend more modestly on regular meals.

b, Social factors and social networks:

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 (Admin, 2023)

• Social networks and brand websites play an important role in customers' information
search and purchasing decisions.
• Advertising on social networks and diverse information channels plays an important
role in attracting and retaining customers.

=> Customers may make purchasing decisions based on social influence, for example through
online reviews, recommendations from acquaintances, or community reaction to a particular
restaurant or product.
c, Service and experience:

• Good service, staff attitude, and the overall restaurant experience can all create a
positive or negative impression on customers.

d, Costs and prices:

• Customers will often compare the price of products and services with the value they
receive. Price can be the deciding factor in choosing between restaurants or products.

=> A deep understanding of these factors and providing the right products and services is key
for F&B businesses to succeed in attracting and retaining customers.

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 4. External Factors Impacting the F&B Market and Golden Gate:
• Economic:
• As per the General Statistics Office (GSO), Vietnam observed a 5.05% rise in its GDP
from the previous year, reaching $430 billion in 2023. This increase surpasses the
growth rates of 2.91% in 2020 and 2.58% in 2021, the years marked by the peak of the
Covid-19 pandemic. (Theinvestor.Vn, 2024) Consequently, there's an upsurge in
consumer expenditure, particularly in the F&B sector.
• Vietnam's reports indicate that F&B expenditure constitutes the largest share of
consumer spending, accounting for 35% of monthly outlays and 15% of the national
GDP. (Chin Media, 2023)
• This underscores the burgeoning potential of the F&B industry, leading to intensified
competition as more establishments enter the market. A notable illustration of this
competitive landscape in Vietnam's F&B scene is the proliferation of new coffee shops
challenging established giants such as Highlands, Phuc Long, and The Coffee House.
=> The F&B sector presents a cutthroat business environment.
=> Vietnam's F&B market is witnessing robust growth alongside significant expansion. With
product diversification and fierce competition, businesses are compelled to prioritize quality
and innovation to attract and retain clientele.
• Culture and Society:
• In contemporary Vietnam, the nation is progressively intertwining with the global
community, particularly the younger generation, embracing increasingly modern
lifestyles and keeping pace with trends. They value a high quality of life and are
inclined towards indulgence. Despite modest incomes, as per a report by Decision Lab
(Linh, n.d.), whether they are students or recent entrants into the workforce, Gen Z
devotes a considerable portion of their earnings towards purchasing food and beverages
outside, averaging around 900,000 Vietnamese Dong (approximately 40 USD)
monthly. Their inclination towards novelty often drives them to seek out new
experiences, particularly in exploring international cuisines, thereby contributing to the
diversification and expansion of culinary and beverage offerings rooted in various
cultural backgrounds.
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 • Furthermore, an article by Brand Vietnam mentions a study from the NPD Group (Le,
2020), indicating that in 2018, Gen Z spent 14.6 billion USD on restaurants. This shows
that this generation now holds a 25% share of the entire foodservice market. Gen Z
seems to be becoming the largest consumer group, holding the role of making
significant consumption decisions.
=> Consequently, it's imperative for Golden Gate to continually adapt to evolving market
trends to cater to the contemporary needs of Gen Z, crafting products that resonate with their
lifestyles, and cultural inclinations, and address their preferences to bolster competitiveness.
Seizing the opportunity to invest more substantially in attracting the Gen Z cohort presents a
compelling avenue for considerable revenue growth that cannot be overlooked.
• Technology Environment: Integrating Technology to Support the F&B Industry
• According to market research firm IMARC Group, with a dominant young population,
Vietnamese consumers are quick to catch up with trends, proficient in technology
usage, open to different cultures, and always pushing businesses to invest in developing
new features. (Quân, 2024)
• F&B enterprises are also proactively applying technology to enhance operational
efficiency and business control. The remarkable development of digital banks and
online payment platforms (fintech) has also facilitated convenient payment solutions
for applications.
=> The collaboration between F&B businesses and fintech in terms of technology has
contributed to the rapid growth of Vietnam's F&B industry in recent years.
=> Digital transformation is not mandatory for all F&B businesses, but those who want to
succeed must embrace it.

5. References:
Admin. (2023, June 29). Nghiên cứu thị trường để khám phá thói quen tiêu dùng của thực khách tại
Tp Hà Nội & Tp Hồ Chí Minh -. Mibrand - Công ty Cổ phần Mibrand Việt Nam.
https://mibrand.vn/nghien-cuu-thi-truong-de-kham-pha-thoi-quen-tieu-dung-cua-thuc-khach-
tai-tp-ha-noi-tp-ho-chi-minh/

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CleverAds. (2023, October 16). Thị trường F&B: Phân tích SWOT và triển vọng trong tương lai.
Marketing Blog| CleverAds Make customers come to you. https://cleverads.vn/blog/thi-
truong-fb/
Diệu N. (2023, May 7). Tâm lý khách hàng là gì? Bí kíp nắm bắt tâm lý của khách hàng. Nhà Hàng
Số. https://nhahangso.com/tam-ly-khach-hang-la-gi.html#google_vignette
Hằng T. (2024, March 14). [MỚI NHẤT] Tổng quan thị trường F&B Việt Nam 2024. bePOS.
https://bepos.io/blogs/thi-truong-fb-viet-nam/#ftoc-heading-4
Le T. (2020, November 18). Chiến dịch marketing chinh phục khách hàng Gen Z | FNB Việt Nam.
FnB Việt Nam. https://fnbvietnam.vn/chinh-phuc-trai-tim-nhom-khach-hang-gen-z/
Linh, N. V. H. (n.d.). 5 things you need to know about Generation Z. Decision Lab.
https://www.decisionlab.co/blog/3-reasons-why-convenience-stores-are-your-next-direct-
competitors-0#:~:text=They%20are%20willing%20to%20spend,40USD
Quân A. (2024, February 22). Tín hiệu hồi phục của ngành F&B tại Việt Nam. Mekong ASEAN.
https://mekongasean.vn/tin-hieu-hoi-phuc-cua-nganh-fb-tai-viet-nam-post31876.html

6. Reference:
Theinvestor.Vn. (2024, January 11). WB revises down Vietnam’s 2024 GDP growth forecast to 5.5%.
theinvestor.vn. https://theinvestor.vn/wb-revises-down-vietnams-2024-gdp-growth-forecast-
to-55-d8175.html
Top 10 Công ty uy tín ngành Thực phẩm - Đồ uống năm 2023. (n.d.). vietnamreport.net.vn.
https://vietnamreport.net/Top-10-Cong-ty-uy-tin-nganh-Thuc-pham--Do-uong-nam-2023-
10673-1067.html

- IN THE END -

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