Competitor Analysis

BMGT – WS2023 Group 13
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Table of Contents
Group Member List .............................................................................................................. 6
Executive Summary ............................................................................................................... 7
Literature Review...................................................................................................................8
Competitor Analysis.................................................................................................................... 8
Strategic Group Mapping ......................................................................................................... 9
Value Chain Analysis ................................................................................................................. 10
PESTEL Analysis ......................................................................................................................... 11
Micheal Porter’s Five Force Analysis .................................................................................. 13
SWOT Analysis ............................................................................................................................ 15
Benchmarking Analysis ............................................................................................................ 16
Strategic Group Mapping .................................................................................................. 19
Brand Recognition ..................................................................................................................... 19
Brand Image ................................................................................................................................. 20
Market Share ............................................................................................................................... 21
Company Profile.................................................................................................................. 23
KFC Vietnam – Company Profile .......................................................................................... 23
Company Overview ..................................................................................................... 23
Target market and customer profile ........................................................................24
Pricing models.............................................................................................................. 25
Marketing strategies ................................................................................................... 26
Revenue streams.......................................................................................................... 28
Lotteria Vietnam – Company Profile .................................................................................. 28
Target market and customer profile ....................................................................... 30
Pricing models.............................................................................................................. 30
Marketing strategies .................................................................................................... 31
Revenue streams.......................................................................................................... 34
Jollibee Vietnam – Company Profile ................................................................................... 34
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Target market and customer profile ....................................................................... 34

Marketing strategies ................................................................................................... 35
Industry Analysis.................................................................................................................. 37
PESTEL Analysis ......................................................................................................................... 37
S- Social Factors ........................................................................................................... 37
T – Technology Factors .............................................................................................. 38
E – Economic Factors ................................................................................................. 38
Micheal Porter’s Five Force Analysis .................................................................................. 39
The threats of new entrants ..................................................................................... 39
The threats of substitute products ......................................................................... 39
Supplier Bargaining Power ........................................................................................ 40
Customer Bargaining Power ..................................................................................... 40
Judgement for the Vietnamese fast – food industry based on Micheal Porter’s
Five Forces .................................................................................................................... 40
Company Analysis ............................................................................................................... 42
Value Chain Analysis ................................................................................................................. 42
KFC Vietnam – Value Chain Analysis ...................................................................... 42
Lotteria Vietnam – Value Chain Analysis ............................................................... 44
Jollibee Vietnam – Value Chain Analysis ................................................................. 47
SWOT Analysis ............................................................................................................................ 49
Analyzing Strengths and Weaknesses from the Value Chain Analysis ............ 49
Analyzing Opportunities and Threats from the PESTEL Analysis and Micheal
Porter’s Five Force Analysis ....................................................................................... 53
KFC Vietnam – SWOT Analysis ............................................................................................. 57
Lotteria Vietnam – SWOT Analysis ..................................................................................... 57
Jollibee Vietnam – SWOT Analysis ...................................................................................... 58
Benchmarking Analysis...................................................................................................... 60
The Market Share Benchmarking ........................................................................................ 60
Foot Traffic.................................................................................................................... 60
Number of Stores ........................................................................................................ 62
Market Share Percentage .......................................................................................... 64
The Revenue Growth Benchmarking ................................................................................. 65
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The Revenue ................................................................................................................. 65

The Revenue Growth Rate ......................................................................................... 66
Recommendation ................................................................................................................ 68
Pricing Strategy .......................................................................................................................... 68
Marketing Campaigns .............................................................................................................. 69
The Customer Journey............................................................................................................. 69
Conclusion............................................................................................................................. 71
Reference List ....................................................................................................................... 72
Appendix ............................................................................................................................... 80
The Brand Recognition – Group Mapping........................................................................ 80
The Customer Preferences – Group Mapping ................................................................ 81
The Brand Image – Group Mapping.................................................................................... 81
The Market Share – Group Mapping .................................................................................. 82
Number of Store – Bench Marking ..................................................................................... 82
Revenue – Bench Marking ...................................................................................................... 82
Revenue Growth Rate – Bench Marking ........................................................................... 83
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Group Member List

No. Name of Student Student ID Contribution Parts
Presentation, Literature Review,
Strategy Group Mapping,
1 Nguyễn Vũ Hiểu Minh 10321019
Industry Analysis, Value Chain
Analysis, Benchmarking
2 Nguyễn Anh Quân 17336 Presentation, Company Profiles
Presentation, SWOT Analysis,
3 Phạm Hồng Tường Vy 18846
Value Chain Analysis
4 Võ Ngọc Tâm Như 10621057 Presentation, Reference Lists
5 Phạm Phương Anh 10321036 Presentation, Recommendation
6 Đào Nguyễn Nguyệt Vy 10621084 Presentation, Company Profiles
7 Phạm Thái Bảo 10621074 Presentation, Data Research
8 Cao Vân Anh 10321001 Presentation, Conclusion
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Executive Summary
The fast-food industry is considered to be a rapidly shifting industry, as it
continuously strives to bring better service to its customers (Dirrado, n.d.). As a
result, in many decades, fast food has always been the top choice among
consumers around the world, as it is widely available, moderately affordable, easy
to access and is favored by the majority of age groups, especially younger
generations (Le N, n.d.). The rise in customers also means the rise in demands and
leads to perpetually competing. Consequently, fast food businesses ought to find
a way to meet the demand standard and at the same time cutting off costs to
maximize their profit, Tan and Hakimey (2013) stated that during this process, the
fast-food industry has faced a lot of ethical issue regarding ailments, ineffective
marketing, bad products launched, etc. For instance, in 2020, proper research has
indicated that over 500 million people were diagnosed with obesity in the USA,
and around 2 billion people become overweight worldwide (Hossain, Mohammad
Monir & Islam, Md. Z., 2020). Erik (2023) has also made a claim in their report that
one of the primary reasons why the profit margin of the industry dropped
intensely was because people have become more health conscious and prefer to
choose restaurants with healthy menus than traditional fast-food chains. And as
such, we chose the fast-food industry to make a deeper analysis. By carrying out
a few frameworks analysis, we can gain better insight about this quick-serving
food industry despite its ethical issues.
Within the industry, it is without a doubt that KFC is the leading company, with
over 27,000 restaurants in over 145 countries (KFC, n.d.). By choosing KFC as our
focus, we analyze their main rivals (Lotteria and Jollibee) in this certain industry
using a competitor analysis framework.
Our main objective is to differentiate KFC’s products, services and brand from
other competitors, specifically Lotteria and Jollibee, so that we can inspect the
respective market shares more effectively. In order to achieve such a goal, we
conducted 6 frameworks, investigating various aspects from internal factors to
external. The frameworks mentioned were: Strategic group analysis, Value Chain
analysis, PESTEL analysis, Michae Porter’s Five Force analysis, SWOT analysis, and
Benchmarking.
After rigorously analyzing using the above frameworks, we come up with some
recommendations through analyzing the following insights: Pricing strategy,
marketing campaigns and customer’s journey to gain more sales and leads
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Literature Review
Competitor Analysis
Competitor analysis, also known as competitive analysis or competition analysis,
is the process of looking at businesses that are comparable to yours in your sector
and learning about their products, branding, strategies for sales, and advertising.
(Coursera, 2023)
Several advantages of a competitor analysis include: Recognizing industry norms

so you can both meet and surpass them, identifying unexplored niche markets,
meeting client needs and providing superior problem-solving over rivals, setting
the brand apart, making a statement with your marketing, and assessing your
development.
Utilize these suggestions to set the business apart from the competition and
increase market share for the goods: What additional characteristics can
business include in their product to set it distinct from the competition? Which
pricing scheme can business employ to draw in prospective customers to
purchase the goods or services? What distinctive features of design can
business use into your brand that distinguish it apart? What makes a value
proposition unique from that of competitors? How can company create a
customer journey that is transparent, encourages customers to purchase goods
from business? etc.
To do a competitor analysis, there are a few steps involved, which are determine
who are the immediate rivals are and look into their products., identify the
services that each rival offers and assess to their target market, examine their
enterprise plans analyse their advantages and disadvantages, draw out a strategy
for their marketing efforts, ponder about the characteristics that set
businesses apart and project their subsequent strategies.
Six frameworks will be used in this competitor analysis of KFC Vietnam's rivals for
the purpose to get the intended result. KFC Vietnam will use strategic group
mapping to discover its closest competitors; value chain analysis will be used as
an instrument to detect each company's assets and shortcomings; and PESTEL
analysis will be utilized in tandem with Michael Porter's Five Force Analysis to
discover the opportunities and threats that the fast-food sector as a whole is
confronting. Following this, benchmarking will be conducted for figuring out
whether businesses have the financial wherewithal to seize opportunities and
counter risks.
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Analyzing your competitors is an essential part of growing any business. It may

assist managers in setting the brand apart and positioning their goods and
services as the greatest available. Every quarter, six months, or annually, for
example, go back to the competition analysis attempts to take into consideration
any changes in the tactics of the rivals and any new competitors that enter the
market. Look for methods to differentiate business items and brand from the
competition at all times.
Strategic Group Mapping

A corporation has to create competitive positioning approaches and have a deep
understanding of its industry's marketplace in order to succeed in the long run.
The strategic group analysis is a useful technique for learning about the closest
rivals and assessing their market situations. The study offers the information
needed to create a company's marketing plan. (Creatively,2022)
Strategic groups are common in most industries. Companies, within the same
industry, that employ similar strategies with similar resources or have comparable
business models, belong to one strategic group. Strategic group contains
In the majority of companies, strategic groupings are prevalent. Businesses in the

same sector that use equivalent company structures, have comparable assets, and
use similar tactics are members of the same strategic group. Those in a group of
strategists share the following traits: own comparable market shares, react
similarly to competitors' (threats and opportunities) and market developments,
providing comparable client support.
Since businesses in the same strategic group are typically vying for the same
clients, there is often fierce competition amongst them. The rest of the industry
will respond angrily to the activities of one corporation because they are
concerned about losing market share. (Creatively,2022)
It aids in the visualization and analysis of rivals' position as competitors in the

market according to criteria (shared traits) important in terms of their strategic
importance.
Consider the strategic attributes that set the company apart is the main goal for
step 1. These include elements like the features and quality of the product, the
level of variety in products and services, total number of market niches catered
to, channels of distribution Brand perception Level of vertical integration, policy
on prices, size of the business, its cost position, and capacity efficiency, etc.
(Creatively,2022)
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Employing two of the most closely related variables that found in the previous
then create a two-variable map. Set a location on the map to each entity. One
strategic group is made up of those that are positioned closest to the other
another. Users may change the diameter of the circle size to show the respective
market shares that each of these strategic groupings has.
Analyze the map and determine the competing strategies of the foreseeable future
as the identities and positions of immediate competitors according to the findings
of inquiry. It could help businesses in comprehending their own approach in light
of tactical group dynamics. (Creatively,2022)

A value chain is a representation of every phase and operations needed to
generate a good or provide a service. Consequently, it covers all phases of the
lifespan of an item, from conception to assembly and distribution (Zucchi,
2023). According to Zucchi (2023), The procedure of finding each of these business
processes, figuring out how much their expense and what value they provide, and
then searching for methods for maximizing them in line with the business's
general approach is called value chain analysis.
In accordance to Zucchi (2023), businesses can do a value-chain analysis to

determine every level in the pathway and search for methods to enhance it in a
bid to increase their earnings or gain a competitive advantage. Its value chain may
include the subsequent categories of actions: Primary activities and Secondary
activities. The primary activities included aspects: In/ Outbound Logistic,
Operations, Marketing and Sales, and Service. The Secondary activities consist of
aspects such as Firm Infrastructure, Human Resources Management, Technology
Development and Procurement.
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(Moon Welfare Foundation, 2020)
A company should think about its value suggestion, or what makes it different
from its rivals, while analyzing its value chain. Value chain analysis can either be
used to undercutting the rivals by providing a good or service at a cheaper cost,
or it can be used to increase profits by developing a product that is outstanding
as consumers are ready to pay extra for it.
Per Zucchi (2023), a value chain's development for its own justification shouldn't
be the ultimate objective. Rather, a business should determine its intended
competitive advantage and the reasons for improving its value chain.
PESTEL Analysis
The world has seen many changes and uncertainties in the past several years,
including a pandemic, catastrophic events, a potential economic downturn, war,
inflation, and beyond. Businesses have had to cope with a lot of external market
issues that have a direct influence on them. Regardless of how fresh or entrenched
a business is in any industry, these present occurrences have caused a sufficient
amount of stress for any corporation.
Many present and upcoming managers find the present circumstances of the
world at large to be dreadful, but this useful assessment will aid businesses in
evaluating and making plans for potential impacts, allowing businesses to either
take benefit from these forces as possibilities or try to neutralize them as potential
hazards.
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Political, Economic, Social, Technological, Legal, Educational, and Environmental

is referred to by the abbreviation PESTLE. When considering a specific idea or
objective, it offers a broad perspective of the whole environment from many
angles that one wants to assess and keep an eye on. PESTEL Analysis is used in
this instance to identify the opportunities and dangers that brands in the sector
must deal with.
Political factors are those that result from politics or the government. These
include governmental policies, government leadership, international commerce
and relations, political concerns and trends, tax policy, regulations, and
deregulation tendencies, among other external political influences influencing
your firm. (Wood, 2022)
The external influences that may have a bearing on the economy in which your
firm works are examined by the economic considerations. Inflation rates on the
rise, variations in consumer spending patterns, supply chain alterations, demand
curves, and the state of the world economy are a few examples. (Wood, 2022)
Sociological aspects take into account alterations in the broader social milieu,
encompassing social justice movements and other social tendencies such as
evolving perspectives on your goods or fluctuating population and demographic
patterns. It's important to take into account social trends that are prevalent not
only in the local surroundings of your business but also in the larger context from
where your clients are originating. (Wood, 2022)
Technology advancements have an impact on a company's positioning. A few

examples from the recent past include the growth of cryptocurrencies (which are
also considered economic phenomena), the popularity of technology that allows
people to work from home, advancements in artificial intelligence, and even
worries about cyber security and other technical matters. It is crucial to take into
account the ways in which technology may present your company with
opportunities as well as threats. (Wood, 2022)
Comparable to the political components, the legal elements examine how the
political parts are really put into practice through laws and regulations that might
have an impact on your company or clients. These are the rules and legislation
that have an effect on your company. This can entail passing new laws, revising
existing ones, or doing away with some of them. Examining local, state, and federal
rules and regulations is important depending on your kind of business. (Wood,
2022)
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Health problems, geography, weather, and climate change all have an impact on
environmental issues. Apart from the COVID-19 pandemic-related public health
emergency, wildfires have also had an influence on the international community.
(Wood, 2022)
Doing this study for the organization has the following benefits: It is an easy-to-
implement foundation for the strategic strategy, being clear and uncomplicated.
This additionally provides the business the opportunity to effectively promote
awareness of the larger business environment and the ways in which current
affairs may have an impact on any company. The following are some drawbacks of
utilizing: The fact that this sort of evaluation may be lightweight or as severe as
one wishes to make it is one of its drawbacks. It is straightforward to obtain
inadequate data or exaggerate the data.Additionally, acquiring an excessive
amount of data might easily make it too hefty, leaving managers feeling lost and
uncertain of where to begin.
PESTLE analysis should be carried out alongside a SWOT analysis during the pre-
planning phase of the business or strategic strategy. A SWOT analysis examines
the possibilities and risks the market poses on the outside as well as the internal
strengths and weaknesses of your company. This will be a great addition to
any SWOT analysis as it provides businesses with information by examining every
facet of the external market environment. (Wood, 2022)
Only three of the five factors—social, economic, and technological—will be looked

at in this study as they have a direct impact on the fast-food sector.
Micheal Porter’s Five Force Analysis

Porter's Five Forces is a concept which assists in determining the strengths and
weaknesses of every company by identifying and analyzing five concurrent
variables that impact each industry. The framework of an industry is usually
identified using the Five Forces analysis to establish a company's approach.
Managers and analysts can better comprehend a company's rivalry context and
its positioning by using Porter's Five Forces Model. (The Investopedia Team, 2023)
According to The Investopedia Team (2023), Porter's Five factors is a concept that
assists in determining the positive and negative aspects of any business by
identifying and analyzing five competitive factors that impact each industry. The
framework of a field is usually identified using the Five Forces analysis to establish
a business plan. The quantity and strength of competitors in the sector, possible
newcomers, suppliers, consumers, and alternative products are some of these
elements that affect the financial viability of a company. An industry or market's
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level of rivalry, attractiveness, and profitability are commonly assessed using the
Five Forces model.
INSTITUTE FOR STRATEGY & COMPETITIVENESS (2012)
The first of the Five Forces relates to the quantity of rivals and their capacity to
undercut a firm. A company's power decreases with the number of rivals it faces
and the quantity of comparable goods and services they provide.
If a rival business can provide a better deal or cheaper costs, suppliers and
customers will go for them. On the other hand, a business has more leverage to
raise prices and negotiate better conditions in order to increase sales and profits
when there is less rivalry among competitors. (The Investopedia Team, 2023)
New competitors' force on a market has an impact on a company's strength as

well. An established company's position might be seriously undermined the faster
and cheaper it takes a competitor to join the market and become a formidable
rival.
Strong barriers to entry make a sector suitable for established businesses because
they allow them to set higher pricing and negotiate better conditions. (The
Investopedia Team, 2023)
The ease with which suppliers might raise input costs is the subject of the Porter
model's second component. It is influenced by the quantity of providers of
essential components of an item or service, the degree of uniqueness of these
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components, and the expense to a business of moving to a different supplier. A

firm would be more dependent on a supplier in an industry with fewer providers.
For a consequence, the supplier is in a stronger position to raise input prices and
demand additional benefits from trade. On the contrary, a business can maintain
reduced expenditures on inputs and increase profits when there are several
vendors or low switching costs between competitor providers. (The Investopedia
Team, 2023)
One of the Five Forces is the authority consumers have to influence pricing
downward. It is influenced by the quantity of buyers or consumers a business has,
the importance of each client, and the expense of expanding a business's
consumer base or market reach.
Each consumer has greater leverage to bargain for better offers and lower costs
since the client base is less large but more solid. A corporation that has numerous,
smaller and standalone customers will have less difficulty asking greater prices to
boost profit. (The Investopedia Team, 2023)
The final Five Force has to do with stand-ins. Threats might come from items or
services that can be substituted for a company's offerings. Businesses that provide
products or services with no comparable substitutes will have greater negotiating
leverage to raise prices and secure advantageous conditions. Close alternatives
provide customers the choice not to purchase a company's goods, which can
reduce the company's power. (The Investopedia Team, 2023)
A corporation may modify its business plan to more effectively employ its assets
and increase profits for stakeholders by having an in-depth knowledge of Porter's
Five Forces and how they relate to a certain market.
SWOT Analysis
Strengths, Weaknesses, Opportunities, and Threats are referred to as SWOT. An
organization can use a SWOT analysis as a framework to evaluate and
comprehend the internal and external factors that could present opportunities or
hazards.
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Peterdy, K. (2023, October 26). SWOT analysis. Corporate Finance Institute
Peterdy (2023) asserts that many stakeholders employ a SWOT analysis in

different ways. The management team can better understand where and how to
deploy resources—either toward growth or risk reduction initiatives—by using
SWOT analysis to illustrate the firm's relative advantages and weaknesses.
To get a more thorough assessment of the firm, the analyst community, on the
other hand, can try to comprehend (and quantify) strengths, weaknesses,
opportunities, and dangers. (Peterdy 2023)
Benchmarking Analysis
Benchmarking is a technique used in business to assess the effectiveness and
caliber of your organization's goods, services, and operational procedures. These
metrics aren't very useful by themselves; the data must be compared to some kind
of benchmark.
Lucidchart (2023) states that a company's objectives should be to expand, enhance

operations, raise quality, cut expenses, and generate more revenue. One of the
various instruments that may be incorporated into any continuous improvement
approach that your company uses is benchmarking.
There are numerous forms of benchmarking that can be divided into three main
groups, according to Lucidchart (2023): internal, competitive, and strategic.
Lucidchart (2023) indicates that internal benchmarking is entails examining what
other groups or entities within your firm are doing to identify areas where you
can make improvements and increase efficiency, particularly if they have set up
standards of excellence in procedures comparable to yours. Competitive
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benchmarking, defined by Lucidchart (2023), is an assessment of the goods,

services, procedures, and techniques of your immediate rivals. This kind helps you
understand how you fit into your industry and what you might need to change to
boost output. When the business needs to determine exceptional results and
efficient methods outside of the field in order that business can figure out how to
incorporate their techniques into their own policies and procedures, then adopt
strategic benchmarking.
Benchmarking analysis involves comparing the performance, practices, and

strategies of one company against those of industry leaders or competitors. To
implement this, there are 5 steps to obtain in order to achieve the goal.
The first step is to identify the criteria to put under investigation. With the
purpose of identifying which brands are able to cope with the threats and grasp
the opportunities that the whole industry faces, we conducted 2 benchmarking
analyses, which are Market Share Benchmarking and Revenue Benchmarking. The
reason why these 2 indicators are chosen is because we want to find which brands
have the financial capacity to deal with the problems they might face in the future.
The second step is to identify the main rivals. From the previous research, the
result obtained from strategic group mapping strictly agreed that KFC’s main
rivals in Vietnamese markets are Jollibee and Lotteria. The main rivals share main
patterns with KFC, which are brand recognition and the market share
percentages. By using benchmarking, we will make an in-depth analysis with
further aspects.
The third step is to gather information and data, which we obtained mostly from
their statistics in online platforms. However, the numbers, since not 100% public,
will mostly be estimated only.
The fourth step is to analyze the performance of each criteria. To conduct the
market share analysis, the 3 indicators that must be investigated are customer
traffic, number of stores and market share percentage throughout the years. To
conduct the revenue benchmarking, the 2 indicators, which are revenue and
revenue growth throughout the years will be examined. In this case, the period of
time we decided is 2018-2022. The reason why the period of time is chosen is
because not only the data will not be out of date, but also it would illustrate the
trend throughout the years. Furthermore, by choosing the time frame that
included the pandemic, the ability to recover from it will also be mentioned by the
number.
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The final step is based on the performance analysis, to analyze the practices,
strategies, or initiatives that contribute to the superior performance of
competitors or industry leaders in the identified areas.
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Strategic Group Mapping

As stated above, to compete over the long term, a company must develop
competitive positioning strategies and have a thorough understanding of the
market for its industry, claims Creatively (2022). An effective method for
identifying and evaluating the market conditions of the nearest competitors is the
strategic group analysis. The study provides the data required to draft a marketing
strategy for a business.
Hereby, we conduct 2 maps in order to demonstrate the situation would be more

objective, which can be named: Brand Recognition and Most Favorite; Brand Image
Brand Recognition
We perform data presentations using data gathered (Fast food popularity in
Vietnam, 2020) regarding the fast-food industry in an effort to identify our closest
opponents through strategic group mapping.
In the initial visualization, the customer favorites and brand familiarity are taken
into account to determine which names are the most straightforward for
consumers to recognize.
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As may be seen from the above figure, KFC Vietnam has the highest brand
recognition of 84% with the number 1 spot in the most favorite franchise
illustration. The situation is against for Popeyes as it holds the bottom result in
both cases.
Brand Image
Emphasis is given to brand image in the second mapping. At this point, the
following seven factors will be looked at: premium food, delicious cuisine,
convenient location, suitable for families and young people, good variety of food,
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reasonable price, and good advertising.
Two factors out of seven are considered: the location's convenience and the
suitability for families and young people. These two are closely associated since,
in our humble opinion, household would choose a place that is practical, easy to
locate, near their home, and has a kid zone.
Market Share
We consider market share and brand visibility while generating the final
mapping. This indicator evaluates the market share and geographical reach of
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businesses in this segment of the market. Be noticed that this market share
percentage is based on the whole industry of service-restaurant market.
It is evident that KFC and Lotteria own the majority of the market share with
scores of over 8% and about 6%, respectively, followed by Jollibee. As the
remaining companies barely increase their market share by less than 3%, the
situation becomes even more evident.
From these 2 maps, we can confidently believe that Lotteria Vietnam and Jollibee
Vietnam are the main rivals.
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Company Profile
KFC Vietnam – Company Profile
Company Overview
Kentucky Fried Chicken (KFC), is an American fast-food restaurant chain
headquartered in Louisville, Kentucky, that specializes in fried chicken
KFC's parent company is YUM! Brands, which also owns Taco Bell and Pizza Hut.
Worldwide KFC system sales grew 6% last year (Forbes 2023)
It all started with one cook, Colonel Harland Sanders, who created a finger-lickin’
good recipe more than 75 years ago—a list of 11 secret herbs and spices scratched
out on the back of his kitchen door. Today, we still follow his formula for success,
with real cooks breading and freshly preparing our delicious chicken by hand in
more than 27,000 restaurants in over 145 countries and territories around the
world. (KFC,2023)
KFC places a premium on product variety, always providing a diverse menu. Aside
from traditional dishes such as fried chicken and hamburger, KFC has satisfied the
tastes of Vietnamese people with some new creations such as Big 'n Juicy, Crispy
Strips, KFC Chicken Rice, Coleslaw...Customers can choose from the following
categories: Original Recipe Chicken, Combo Meals, Kid Meals, Snacks, Side Items,
Desserts, and beverages... Furthermore, to better attract the enjoyment and
curiosity of Vietnamese customers, KFC has expanded their field to other
ingredients by launching new dishes to the Vietnamese market such as Shrimp
Burger, Lipton… (KFC Vietnam, 2023)
With the mission “to sell food in a fast, friendly environment that appeals to pride-
conscious, health-minded consumers”, the company vision is "to provide food in a
quick, pleasant setting that caters to cost-conscious, health-conscious people"
(KFC Vietnam, 2023)
KFC opened its first restaurant in Vietnam, Ho Chi Minh City, in 1997. To this day,
this fast-food restaurant chain has expanded its presence to over 172 restaurants
in 39 cities and provinces of Vietnam, employing over 4,000 people and making
significant contributions to Vietnam's fast-food industry as well as the formation
of a new consumption habit and culinary culture in the areas. (KFC Vietnam, 2023)
As a global fast-food corporation, KFC has established core values that guide its
decisions and actions. These values include teamwork, privacy and security,
pricing and productivity, and long-term viability. Teamwork is emphasized
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through the encouragement and support of a cohesive team that works together
to achieve common goals. KFC considers privacy and safety to be critical, and all
employees must be aware of the company's cost-price linkages and how they
connect to the markets. Pricing and productivity are viewed as contributing to job
security and corporate well-being, and product pricing is determined by fine-
tuning the cost-price relationship and mixing market circumstances. Finally, KFC
understands that corporate viability necessitates both short- and long-term
planning, as well as constant attention to the various trends and factors that will
assist it in maintaining market relevance. (EdrawMind, 2023)
Target market and customer profile

Customer Profile of KFC Vietnam
No. Criteria Description
1 Age KFC's customer base is diverse in age, but it tends to attract a

younger crowd, particularly teenagers and young adults. However,
families and older adults also make up a significant portion of their
customer base.
2 Income level KFC's affordable pricing makes it popular among individuals and
families with lower to middle-income levels. However, it also
attracts customers from higher income brackets who enjoy the
convenience and taste of KFC's offerings.
3 Lifestyle KFC's customers are typically busy individuals and families who are
looking for quick and convenient meal options. They may not have
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the time or desire to cook at home, so they turn to KFC for a fast
and satisfying meal.
4 Location KFC's customer base is often located in urban and suburban areas,
where there is a high demand for fast food and takeout options.
5 Taste KFC's customers enjoy the taste of fried chicken and other comfort
preferences food offerings. They appreciate the variety of menu options and the
indulgent, satisfying nature of KFC's food.
6 Brand loyalty KFC has a strong following of loyal customers who appreciate the
consistency and reliability of the brand. They trust KFC to deliver
delicious, familiar food that meets their expectations.
(KFC Marketing Strategy 2023: A Case Study, Rahul Arun, 2023)
Pricing models
In response to the varying prices of products sold in different countries, KFC
implemented a strategic approach that includes price skimming and market
penetration techniques. KFC can adjust its pricing based on market conditions
with this strategy. When new competitors enter the market, for example, KFC's
prices may be drastically reduced in order to maintain a competitive advantage.
Similarly, when introducing new products, KFC keeps prices low to attract and
retain customers.
In addition, KFC also offers a variety of value-driven options to customers with

varying financial constraints in addition to these pricing strategies. Among the
key offerings are value meals and combo deals, which provide customers with a
full meal at a reduced price. These value meals typically include fried chicken,
sides, and drinks, providing customers with a full dining experience at a low cost.
Moreover, KFC retains a menu with a variety of reasonably priced options,

including individual menu items such as chicken pieces, sandwiches, and sides.
Customers can now tailor their orders based on their budget and preferences,
improving the overall customer experience and satisfaction. (Werawatta, 2020)
Besides that, KFC frequently introduces limited-time specials and discounts on

specific menu items or meal combinations. These special pricing promotions are
meant to entice customers and generate excitement about new or seasonal menu
offerings, resulting in increased foot traffic and sales.
Furthermore, KFC offers affordable family meal deals, allowing families to enjoy a
full meal together at a low cost. These meal packages frequently include a variety
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of chicken, sides, and biscuits, making them a convenient and cost-effective

dining option for large groups.
As a whole, KFC's value-for-money strategy aims to provide customers with

generous portion sizes, satisfying meal options, and affordable pricing, thereby
increasing customer satisfaction and loyalty. KFC aims to cater to diverse
customer segments while maintaining a competitive market position by offering
a variety of value-driven options. (Werawatta, 2020)
Flexible pricing strategy helps KFC quickly capture fast food market share in
Vietnam. Once it had a loyal customer base, KFC switched to a strategy of raising
prices higher than its competitors. Even though the price is not much higher, this
has a strong impact on customer psychology in terms of brand image and the way
of thinking that products with "higher prices will have better quality".
KFC combines products and creates a combo package to provide customers with
a more favorable price than when choosing to buy individually. This has
encouraged customers to buy more products. Combos are also deployed flexibly
and optionally to meet the preferences and budgets of Vietnamese consumers.
(Werawatta, 2020)
Marketing strategies
Product
A product strategy is a list of the products that a company must sell and provide
to its customers. KFC, an American fast-food restaurant chain, specializes in fried
chicken. KFC's first product is pressure-fried chicken pieces seasoned with eleven
different spice blends based on Sanders' formula. KFC tailors its menus to regional
tastes around the world, with nearly 300 menu options available. The fact that
KFC is constantly adding new items to its menu contributes to the development
of a solid product strategy, which aids in marketing.
Price
On a worldwide scale, KFC has had higher profitability. The business made a $16
billion profit in 2015. In Europe and Russia, the brand has performed exceptionally
well, which is a significant asset for the corporation.
Burgers cost around $5, while a combination lunch with a beverage costs around
$15. Bundles are less expensive than buying all of the things separately. It is
particularly profitable in price-sensitive countries such as Asia and Africa. The
brand generates more than $25 billion in annual revenue throughout the world.
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Promotion
How a company's products can be promoted in the market is referred to as a
promotion strategy. KFC, being among the largest food corporations, markets
itself aggressively. The majority of the advertising is done through television
commercials, papers, journals, and billboards. KFC has sponsored the Australian
Big Bash League (BBL) as well as other cricket matches.
To persuade its customers of its mouthwatering culinary products and delicacies,

KFC uses the tagline 'Its Finger-Lickin' Good.' Because KFC has a powerful social
profile, it will be able to communicate and interact with its consumers while also
learning more about its goods and services. KFC also makes extensive use of their
restaurants to market new products. (EdrawMind,2023)
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Place
This approach focuses on determining where the company can locate prospective
consumers for its products. KFC's marketing staff follows a strict set of guidelines
when it comes to laying up the grounds of its locations around the country. KFC's
current status as a global behemoth is due to its audience-winning strategies. KFC
and its restaurants have over 15000 locations in over 100 countries.
KFC locations have all been deliberately placed near schools, universities,
workplaces, and other educational institutions. This is since the youth consume
considerably more fast-food goods than the country's older population
Revenue streams
In the period from 2020 to 2022, KFC's revenue changed continuously year by
year. In 2020, the brand's revenue reached nearly VND 1300 billion. This number
fell by 19% in 2021 and increased by 60% in 2022, reaching more than VND 1600
billion. Profit after tax in 2020 reached nearly VND 2 billion, then plummeting to
negative VND 50 billion in 2021. By 2022, profit after tax climbed and reached more
than VND 50 billion. (Vietdata, 2022)
Lotteria Vietnam – Company Profile

Company Overview
Lotteria Co., Ltd. is a Japanese corporation that operates an East Asian fast-food
restaurant chain. It was founded in September 1972 in Tokyo as a subsidiary of
Lotte Corporation by Shin Kyuk-ho, a Korean entrepreneur. Lotteria has
franchises in Japan, South Korea, Indonesia, Vietnam, Cambodia, Laos, and
Myanmar at the moment.
Popular fast-food items on the menu include burgers, French fries, fried chicken,
chicken wings, and chicken fingers. Through its restaurant franchise platform,
Lotteria aims to increase the value of customers' daily lives and create pleasant
experiences. In its operations, the company values communication, creativity,
change, challenge, and specialty. (Emis, 2022)
Lotteria has been available in the Vietnamese market since 1998. Lotteria currently
leads the domestic food industry with more than 210 restaurants in over 30
provinces and cities across the country, with the stature of an international
business. This is the result of Lotteria's unwavering efforts. (Lotteria Vietnam,
2023)
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Lotteria's mission is to provide high-quality, delicious, and convenient fast food

to customers, while maintaining a commitment to customer satisfaction and
continuous improvement. (Lotteria Vietnam, 2023). Along with its vision is to be
the leading fast food restaurant chain in the markets it operates in, providing a
wide range of menu options and exceptional customer service.
Lotteria, a well-known fast-food chain, is guided by a set of core values that serve
as the foundation of its operations and business philosophy. To begin, the
company prioritizes quality, as it is dedicated to providing high-quality food made
from fresh ingredients while adhering to stringent food preparation and service
standards. Lotteria also prioritizes customer satisfaction, aiming to exceed
expectations by providing exceptional service and a satisfying dining experience.
Furthermore, in order to compete in the fast-food industry, the company is
committed to innovation, constantly striving to improve its menu offerings,
service, and operational processes. Furthermore, Lotteria operates with integrity,
emphasizing honesty, transparency, and ethical practices to build trust among its
customers and stakeholders.
Finally, the company is actively involved in the community, demonstrating its

social responsibility through a variety of initiatives and partnerships aimed at
giving back to the communities it serves. These core values serve as the
foundation for Lotteria's business operations, demonstrating the company's
dedication to providing high-quality products and services while cultivating
positive relationships with its customers and the larger community.
In conclusion, Lotteria's core values of quality, customer satisfaction, innovation,

integrity, and community involvement serve as the guiding principles for the
company's business operations and reflect its commitment to providing high-
quality products and services while fostering positive relationships with its
customers and the wider community. These values are deeply ingrained in the
company's culture and are upheld in every aspect of its operations, making
Lotteria a trusted and respected brand in the fast-food industry. (Thạnh Nảy,
2022)
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According to Thạnh Nảy (2022), we deliver the customer segmentation of Lotteria.
Customer Profile of Lotteria Vietnam
1 Age Lotteria attracts people of all ages, including teenagers, young

adults, and families with children. Teenagers and young adults are
drawn to the quick and convenient fast-food options, while families
appreciate the value meals and kid-friendly offerings.
2 Income level Lotteria caters to a wide range of income levels, providing value
meals for those on a tight budget as well as premium options for
those with higher disposable income.
3 Lifestyle Lottery appeals to a wide range of lifestyles. Health-conscious

customers may prefer lighter menu options, while convenience-
seeking customers appreciate the quick-service options.
Additionally, urban dwellers and commuters may be drawn to
Lotteria's convenient locations and quick service.
4 Location Lotteria's customer base is predominantly urban, attracting city

dwellers and commuters looking for quick and convenient dining
options.
5 Taste Lotteria's menu includes a variety of fast-food items such as

preferences burgers, fried chicken, and sandwiches, which appeal to customers
who prefer quick and convenient meals.
6 Brand loyalty Lotteria may have a mix of loyal customers who frequent their
outlets regularly, as well as occasional customers who are attracted
to limited-time menu items and promotions.
Pricing models
New-product pricing strategies
Since its first entrance, realizing Vietnamese consumers are highly price sensitive,
Lotteria uses market penetration pricing by setting its products at a relatively low
price compared with its competitors, to penetrate the market quickly by
attracting a large number of buyers. (Thạnh Nảy, 2022)
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Product Mix Pricing Strategies

Product bundle pricing and product line pricing are two pricing strategies that
Lotteria uses to attract and retain customers. Product bundle pricing involves
offering a combination of products at a discounted price to encourage customers
to purchase. Lotteria offers various combos that include a main dish, a side dish,
and a beverage at an affordable price, catering to its price-conscious customers.
This strategy is commonly used by fast-food chains to increase sales and
customer loyalty. On the other hand, product line pricing involves offering
multiple products within a specific product line at different prices. Lotteria has
four main product lines, including beverages, chicken, rice, and burgers, and
offers a range of snacks and ice-creams. By offering a variety of products and
prices within each product line, Lotteria aims to cater to the diverse needs and
preferences of its customers. These pricing strategies are critical in Lotteria's
overall marketing strategy to attract and retain customers in the highly
competitive fast-food industry. (Thạnh Nảy, 2022)
Price-adjustment strategies
There are also two strategies to attract customers who are price-sensitive and
encourage them to purchase Lotteria's products.
By offering quantity discounts, Lotteria incentivizes customers to buy more

products, increasing the overall revenue. Besides that, another strategy which is
segmented pricing, known as time pricing, allows Lotteria to target different
customer segments based on their willingness to pay. By offering discounts for
specific products on different days, Lotteria can attract customers who are
interested in a particular product or are looking for a good deal. These pricing
strategies help Lotteria remain competitive in the fast-food industry and increase
its market share by attracting and retaining a diverse customer base. (Thạnh Nảy,
2022)
Product
The combos (packages of products such as food and drinks together) of this fast-
food chain from the country of kimchi are also quite diverse to meet different
market needs. Drink products alone have up to nine different types with varying
tastes and designs. Lotteria, unlike KFC, prepares dishes from a variety of
ingredients, including beef, pork, squid, and shrimp. Furthermore, they regularly
update the menu list of fast-food dishes that are "hot" in the community, such as
cheese sticks, fried squid, and so on. Lotteria hopes to attract customers from all
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segments, from high-end to low-cost. This enables Lotteria to compete directly

with KFC while not undermining its brand in the Vietnamese market, which is
always price sensitive.
Price
Product pricing is very important in Lotteria's business process. Overall, the brand
uses a low pricing policy to achieve high revenue and profit targets are reduced
to a minimum. This policy helps Lotteria Vietnam maintain and expand its market
as well as prevent competitors.
The prices of Lotteria products are suitable for the majority of target customers,
who are young people and families. Compared to direct competitor KFC, where
lunch costs about 60,000 VND - 120,000 VND, Lotteria only costs about 35,000
VND - 55,000 VND.
Promotion
The combination of Korean and Vietnamese cultural identities that create the
brand is one of the distinctive features of Lotteria's marketing strategy that
distinguishes it from competitors in the market.
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How Korean culture is spreading globally. The Hallyu wave (Korean culture) is even
more prevalent in Vietnam. Vietnamese youth are obsessed with Korean music,
movies, game shows, and food.
Lotteria has built a brand with Korean characteristics by capitalizing on this

feature. The fact that the Lotteria brand is associated with other areas of the Lotte
Group such as entertainment, tourism, and movies contribute to the Lotteria
store chain's brand value, making Lotteria even more familiar and loved in
Vietnam.
Despite the company's Korean origins, all Lotteria locations have the Vietnamese
flag displayed right at the door, a subtle nod to the home country that few foreign
brands have. In Vietnam, Lotteria promotional programs are also run concurrently
with major festivals. (CukCuk,2022)
Place
To serve the market coverage strategy, Lotteria has built a wide distribution
network throughout the country. In Ho Chi Minh City alone, Lotteria has 77 stores
spread across districts. This is a big advantage, because Vietnamese people are
reluctant to go far to eat, preferring convenience.
Although competitors such as KFC, McDonald's, Pizza Hut, Burger King,... have a
large number of stores worldwide, in the Vietnamese market alone, their number
of stores is still very modest compared to Lotteria.
From there, we can see that Lotteria is promoting the development of its
distribution system, the restaurant's location is in the center, at a crowded street
intersection, with parking.
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Revenue streams
Lotteria's net revenue reached nearly 1400 billion in 2022, 20% higher than in 2021.
By 2022, revenue increased by 76%, reaching nearly VND 2000 billion. Although
its revenue reached more than 1000 billion, Lotte didn’t record a positive profit.
Negative profit decreased significantly compared to the previous two years,
reaching negative VND 14 billion, down 90% compared to the same period two
years ago. (Vietdata, 2022)
Jollibee Vietnam – Company Profile

Company Overview
Jollibee is a corporation established in the Philippines by Tony Tan Caktiong in
1978, specializing in sales of hot foods, sandwiches, and hamburgers. The company
is one of the dominant market leaders in the fast food industry worldwide with
more than 1,500 stores in 17 countries (Jollibee Vietnam, 2023). To be more specific
in Vietnam. There are more than 80 stores of Jollibee spread across the country
from 2005 until now (Jollibee Vietnam, 2023).
According to Jollibee Vietnam, their mission is to serve great tasting food, bringing
the joy of eating to everyone. By serving tasty and reasonably priced meals with
high standards of quality, service, and cleanliness, they hope to give customers an
enjoyable eating experience. Besides, the company’s vision is to become the
world's most beloved, and iconic brand. And to achieve their mission and vision,
Jollibee always follows the core values: (1) customer focus, (2) excellence in both
operational and service aspects, (3) respect for the individuals, whether they are
customers, employees, or stakeholders, (4) Teamwork, and (5) Integrity.
Customer Profile of Jollibee Vietnam
1 Age Children and young people from 18 to 35 years old
2 Income Low-income level, due to Vietnam’s low per capita income, around 4.5
level million VND/person/month (General Statistics Office of Vietnam,
2023)
3 Lifestyle Busy individuals and families who are looking for quick and convenient
meal options.
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4 Location Urban areas, especially Hanoi and Ho Chi Minh City
With the steady direction, Jollibee is successful in many countries, including

Vietnam. There are more than 80 stores of Jollibee spreading across the country
from 2005 until now. Their customer profile in Vietnam can be divided into 2
standards: age, income (Dinh, G., 2022) . Firstly, the company focuses on young
people who are students, and employees aged from 18-35 years old by creating a
similar connection between them and the image of a hardworking bee. Besides,
Jollibee also pays attention to families with children, so they have designed a
children's menu with toys. Secondly, due to Vietnam’s low per capita income
which is 4.5 million VND/person/month (Statista, 2023) , Jollibee chooses the low
income segment in order to be affordable for their customers.
Product
Jollibee's products are very diverse, which can meet almost the needs of their
customers: hot combo, chicken joy, jolly spaghetti, chili chicken, burger, snacks,
dessert, and drinks. According to Francis Flores -Jollibee’s global marketing
director, they also build their own attractive signature product, the chicken joy,
which is “skillfully breaded for crunch, delicious taste and goes great with the
secret recipe sauce”. In addition, in order to expand in provinces, Jollibee's other
strategy is to adjust the menu to local tastes. For example, “Spicy Saigon Chicken”
is a customized product with fish sauce, which is familiar to Vietnamese tastes:
spicy, sour, and sweet.
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Price
Firstly, Jollibee applies the Package Pricing. Following the psychological tactic of
arbitrage in business, many combos are designed to bring a “more profitable”
feeling to customers. Secondly, option pricing is also used in order to give
customers the power to choose. The customers can “customize” their combo on
their own by selecting from a variety of side dishes and desserts in the combo
Promotion
In the early 80s, Jollibee announced they would focus on promoting the company’s
mascot image which is the bee. Jollibee has campaigns such as: Always display a
bee statue that has the size of an adult in all of their store ; Participate in media
content about the bee (Jollitown 2008) ; Participate in better practices (Jollibee
Group Foundation 2004)
Place
Jollibee has a smart distribution plan that leads the brand in market share abroad
with steady increase. Their global approach is “slowly but surely”.
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Industry Analysis
It is necessary to execute a SWOT analysis in order to perform a competitor
analysis for KFC and its closest rivals. In order to accomplish this, the main
objective might be met by the use of Michael Porter's Five Force framework,
PESTEL analysis, and value chain analysis. In this particular case, the PESTEL
Analysis and Michael Porter's Five Forces framework will highlight the possibilities
as well as the dangers confronting the market.
PESTEL Analysis
The acronym PESTLE stands for Political, Economic, Social, Technological, Legal,
Educational, and Environmental. When thinking through a particular concept or
goal, it provides an overview of the entire environment from a variety of aspects
that one wishes to evaluate and monitor. In this case, PESTEL Analysis is utilized
in order to find the opportunities and threats that brands in the industry face.
Those aspects that would be put into consideration are: Social Forces,
Technological Forces and Economic Condition Forces.
S- Social Factors
Social factors are the views, opinions, and habits that shape society and have an
effect on enterprises. Social factors are location- and time-specific. The fast-food
industry confronts a dilemma as consumers begin to become more concerned
about obesity and health problems, leading to a substantial shift in their mindset
toward junk food. Consumer tastes shifted as consumers began to think about
sustainable and healthful food options while making dining decisions. There is a
growing demand for plant-based options, better food alternatives, and products
that are produced ethically as people become more conscious of the value of
environmentally friendly procedures as well as nutritious eating. Fast food chains
are now forced to alter not solely the food they serve but also the way businesses
choose their ingredients and execute their marketing campaigns to reflect more
humane ideals and deeper meanings in the community. Customers' preferences
are clearly evolving, but in this era of online expansion, ethical concerns about
labor are also driving customers to prioritize the choices they have. Concerns over
decent labor standards, pay, and privileges for employees in the fast-food sector
are growing among customers. Consumer views and purchasing choices can be
influenced by social movements that support worker autonomy, fair salaries, and
improved working environments. Consequently, given that society is growing
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more and more concerned with human rights and labor conditions, it is
imperative to exercise prudence while selecting a workforce.
T – Technology Factors
The rate of technological breakthroughs and transformations that could
potentially have a significant impact on society as a whole such as genetic
engineering, the explosion of the Internet, modifications to communication tools,
expertise, and technology oversight, are referred to as technological forces. The
advances in technology in this industry ought to be taken into account, including
some of the criteria comprising drive-through, mobile applications, internet
ordering, and even internal administration. Furthermore, the image of a company
and buyer preferences may be greatly impacted by favorable or bad evaluations,
consequently fast-food businesses must uphold rigorous standards of quality and
properly address consumer criticism. Fast-food chains thus find themselves
under pressure to figure out whether they can use technology to help them with
management and build their global credibility, or if it will become a barrier to
success.
E – Economic Factors
Rates of economic growth, unemployment, inflation, interest rates, trade
surpluses or deficits, savings, per capita GDP, and circumstances in the stock and
bonds markets that impact consumer trust and spending are all considered
economic forces. When assessing the fast-Food industry, factors involving buying
habits and financial resources, inflation, ingredient prices, and even currency
conversion rates for overseas companies are taken into consideration. The
spending of consumers may have increased in an economy experiencing
development and increasing disposable income, including purchases of fast-food
items. On the contrary, when financial crises reduce disposable income,
customers can opt to spend less money overall, which might have an effect on
business sales. Since the economy has recently been in a recession, fast food
chains may see a drop in profitability due to rising inflation and changes in food
prices. Restaurant chains may find it difficult to pick up on these increased
expenses to price-conscious customers, which can put pressure on their bottom
lines when ingredient prices rise quickly. Furthermore, changes in currency
exchange rates can have an impact on the price of both imported and exported
goods, sourcing materials, and overall earnings for multinational corporations—
that is, the companies under investigation. The fluctuations in exchange rates can
also affect foreign consumers' spending power and influence their choice to eat
at fast food restaurants. The obstacles confronted by businesses is this to be the
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case: How can they draw in clients during recessions? How can companies
counteract the effects of inflation while maintaining profitability and attracting
new customers? Alternatively, how can companies manage fluctuations in
exchange rates to maintain the purchasing power of their global clientele?
Micheal Porter’s Five Force Analysis

Porter's Five factors are a concept that assists in determining the positive and
negative aspects of any business by identifying and analyzing five competitive
factors that impact each industry. The framework of a field is usually identified
using the Five Forces analysis to establish a business plan. The quantity and
strength of competitors in the sector, possible newcomers, suppliers, consumers,
and alternative products are some of these elements that affect the financial
viability of a company. An industry or market's level of rivalry, attractiveness, and
profitability are commonly assessed using the Five Forces model.
The threats of new entrants

Regarding new market entrants, reputable companies that are currently stagnant
in the field may experience some comfort given that this industry has significant
entry barriers, including high capital needs, regulatory constraints, and
economies of scale, which may render it challenging for new businesses to break
into the market. On the flip hand, minimal obstacles to entry, such cheap startup
costs, simple access to technology, and lax regulations, can facilitate the entry of
new businesses into the market. The primary in this case, in Rusith's views, is that
the chains of fast-food restaurants that are now in place profit from economies of
scale, well-known brands, well-established supply lines, and devoted patrons.
These elements serve as obstacles for new competitors and may make it tough for
them to engage in competition properly (Anh Phan, Thanh Nguyen, 2016).
Established companies in Vietnamese marketplaces have to contend with the
challenges posed by recent foreign entries like Taiwan's Fat Daddy Chicken.
The threats of substitute products

Considering there are multiple options to replace this product, there is a
considerable risk to the industry. According to Rusith, customers have additional
choices, such as healthier selections, homemade food, or different kinds of dining
establishments. It is evident from the PESTEL Analysis that the primary threat to
the traditional fast-food industry is the emergence of replacement items. (Rusith,
2023)
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Supplier Bargaining Power

Certain companies find it difficult to deal with suppliers' bargaining power since
they have so much influence over many factors, including setting high pricing and
constraining the quality of the products. In this industry, things are distinct,
though. According to Rusith’s, "suppliers in the fast-food industry have limited
power" since the organization uses food components and packaging materials
that are not copyrighted and can be obtained from a variety of vendors. Yet, given
that it relies so much on the state of society and the economy, the cost may vary
in relation to factors like quality, delivery, or certain specialized equipment.
(Rusith, 2023)
Customer Bargaining Power

The ability of consumers to ask for cheap pricing and high-quality products gives
them negotiating leverage in the industry of fast food. Additionally, buyers possess
a lot of influence since they can differentiate between brands on the basis of a
variety of factors, including pricing, menu, and convenience. Moreover, there is a
rising demand for more nutritious foods at a time when consumer perceptions
regarding fast food are changing. (Rusith, 2023)
Judgement for the Vietnamese fast – food industry

based on Micheal Porter’s Five Forces
Rivalry existing among competitor
We consider this aspect of the rivalry among competitor is high.
While there are a few major players in the market, such Lotteria, Jollibee, Pizza
Hut, and so on, there are an extensive number of local and regional chains that
compete with one another on deals and prices. Furthermore, because the Z
generation is drawn to companies that can offer "authenticity" and a richness of
"culture," those regional chains frequently offer solutions to their problems.
A further factor contributing to the fierce rivalry for market share is the fast-food
industry's 10% yearly growth. We may mention some of the popular beverages,
such as trà chanh giã tay, trà măng cụt, etc., that local chains, in addition to big
names in market, began to introduce in order to maintain market competitiveness.
The threat of new entrants

We assess the threat posed by new competitors as medium - high.
Because launching a new fast-food restaurant is not financially feasible, a growing

number of businesses are breaking into the market. Nevertheless, leading
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companies have an edge in supply chain breadth and customer awareness, which
makes it difficult for new companies to retain customers.
The threat of substitutes

We classify the threat of substitutes as medium in this regard.
This is because consumer preferences have evolved as products become

increasingly convenient and healthful. Fast food may thus be replaced by any
other kind of street food vendor, street food from a night market, etc.
Nevertheless, those alternatives don't seem to pose any concerns yet, owing to
the inconsistent quality and atmosphere of fast-food restaurants.
Supplier Bargaining Power

In this sense, we rate the supplier's bargaining power as medium-low.
Because of the higher volume in demand, bigger businesses have an edge when
haggling costs with their provider. On the flip side, due to the inconsistent and
inadequate demand for ingredients, smaller businesses are missing this benefit.
Additionally, considering the ingredients for those recipes aren't protected by
patent and may be purchased from a variety of vendors, there is no pricing power
or rivalry amongst suppliers.
Customer Bargaining Power

We regard the capacity of the consumer to bargain to be highly significant.
Customers possess a lot of choices given that there are numerous

food providers, and their prices are reasonable; consequently, a lot of elements
might influence their decision to buy. They are referred to as convenient, menu,
and price. Additionally, since it's difficult to retain customers over time,
purchasers are kept in a strong position by intense competition and regular
discounts.
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Company Analysis
KFC Vietnam – Value Chain Analysis
Inbound Logistic
Since incoming logistics often includes information on material handling,
distribution center locations, and real-time inbound inventory data. In this
instance, the following factors would be taken into account while examining KFC's
incoming logistics: managing inventory, warehousing, and ingredient
procurement.
KFC has issues with inventory control and storage, particularly with ensuring the
cleanliness and freshness of offerings. Thus, according to Khan (2023), KFC's use
of exclusive software to track and ensure that the ingredients are constantly
prepared to serve provides the remedy. Nevertheless, it results in KFC's IT load.
However, it led to KFC's dependence on IT.
KFC sources its ingredients from nearby vendors to maintain cost effectiveness
and freshness. Due to sourcing tactics, vendor agreements, or even geographic
factors, the vendors list aren't set in stone. KFC has created guidelines regarding
inbound components in this context. Apart from its animal-based offerings, KFC
is also renowned for its 11 unique spice and herb formulations. To preserve the
confidentiality of these recipes, the fast-food chain conducted rigorous multi-
round vendor certification assessment prior to enrolling any new suppliers. The
benefit of inbound logistics, to put it briefly, is that KFC has exclusive rights to the
recipes that draw in customers again and again.
Outbound Logistic
Regarding KFC, the primary topic of discussion for outward logistics was the
delivery issue. KFC and its systems employ algorithms to determine whether or
not ingredients ought to be refilled after collecting the order. Anything can be
learned through the in-store inventory management system, including sales on a
daily basis and goods turnover rates (Khan, 2023).
KFC engages reputable third-party logistics (3PLs) in shipping. In Vietnam, KFC

works with various third-party delivery providers including Grab, Now Food,
Baemin, or Be in addition to distributing its own delivery channels. Nguyen (2020)
reports that, with 52% of restaurant orders placed through apps in 2020, KFC
topped the list, followed by Grab (20%) and Now (24%). Consumers find ordering
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meals incredibly simple thanks to the partnership between both apps, since they
can follow their food orders in actual time while taking advantage of discounts by
utilizing discounts from the third-party app. One noteworthy aspect to take into
account is the availability of many choices for payment, such as debit and credit
card e-wallets, and cash payment upon order receipt, thanks to the partnership
with external shipping applications.
Operations
The primary focus of KFC operations is ensuring uniformity, excellence, and
productivity of its products throughout all of its locations. Uddin (2020) claims
that KFC has guidelines for quality standards that are intended to monitor food
safety procedures, hygiene procedures, control quality risk, manufacturing
procedures, uphold requirements for facilities and equipment, etc. KFC has
worked hard at both restaurant operations and franchise management in order to
accomplish this.
The fact that KFC utilizes the franchise system, it is vital that it engages closely
with franchise owners to ensure they comply with all operational requirements,
branding standards, and other criteria. In order to safeguard the reputation of the
company, KFC provides franchisees with assistance and training. (Uddin, 2020). As
mentioned above, the quality standards highlight that KFC is very strict when it
comes to the hygiene standard, which are the service, food quality, cleanliness
and dine in experience.
As it wraps up, KFC performed admirably when it came to the operations and
franchise quality, all with the intention of maintaining its renowned name.
Marketing and Sales

KFC with its amazingly wide geographical reach, and the image of quick and cheap
meals, started with an undifferentiated targeting strategy. The menu was offered
the same in every location, but as it grows bigger and bigger, the menu is being
adjusted with the local cuisine in order to cater the locals. In Vietnam, KFC offers
a lunch menu, which is rice and crispy chicken/ rotary chicken/ chicken nuggets,
with a very affordable price for office people and students, those who have a very
short break. In this case, something fast and cheap is the pain point of the
customer, and KFC takes advantage of that when offering a varied lunch menu.
KFC’s product from the beginning has been the golden-crispy-flavory-fried

chicken. Earning the reputation from that dish, KFC brought to consumers
culinary options when it comes to chicken, from not only the fried chicken but
also rice bowls and salad. However, KFC faces stiff competition as their
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competitors in the industry started offering culinary options that used more
variety of protein to keep their customers.
KFC strikes customers with a good balance between the value and price by using
the discriminatory pricing policy in order to meet the customer needs of both
quality and price. Not only that, KFC also offers a lot of promotion as well as meals
in combo options, which make the customer love because they can have more
with cheaper prices.
When it comes to placements, KFC positioned them as a “fast-food chain”,

therefore, customers sometimes see that it is very convenient as the stores appear
everywhere, whether it is in urban or rural areas.
“It’s finger-lickin’ good” is a saying that, when one hears it, one will know we are
talking about KFC. With that catchy tagline, the brand identity is very strong. In
this era of social media, marketing campaigns in social media play an important
role in positioning brands in the market. To the Z generation, social media is
something out of date. In order to capture the attention of this generation, KFC
needs to generate ideas that are out of the box. In reality, the KFC franchise in
Vietnam still does not have any novelty in promoting products, which is a huge
drawback compared with the other brands in the same industry.
Service
KFC takes it seriously when it comes to bringing a customer a good experience,
when their most important goal is to foster the loyalty of the client. If customers
are happy, they would more likely to come back, from that nurture brand loyalty.
KFC wishes to provide high-quality service, which might lead to customers having
delighted with their time here. Not that after-purchased customer service is the
most important, but all the criteria, such as quick, efficient service, pleasant
encounters with staff, accurate order fulfillment, and quick solving issues all
contribute to customer satisfaction. In Vietnam, KFC has to confront the issues of
food quality when delivering.
Lotteria Vietnam – Value Chain Analysis

Inbound Logistic
Lotteria lacks independent supply so they have to purchase the raw materials
from either domestic or international sources (Tuyet Ngo, 2022). That leads to the
rising supply cost and the instability of the quality of products and the firm has to
monitor the price trends, watch supply availability, and build good long-term
relationships with a supplier to reduce the bargaining power of supply.
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Lotteria is proud of its "cold chain" system which guarantees fresh ingredients
that promptly deliver raw materials to restaurants on demand. They were the first
in Korea to establish a logistics department to increase inventory turnover and
reduce spoilage losses, thereby optimizing the management of raw materials. But
the "cold chain" system may increase energy consumption and expense of
transportation which leads to increased cost.
Outbound Logistic
By using the automated tools of POS-system, Lotteria has increased its customer’s
satisfaction when reducing the time service at the physical stores (Lotteria, 2023).
Besides its own home-delivery service (hotline, website), they also employ the
third-party Grab food, Shopee food to expand the customer convenience with the
indoor services. Since the development of technology, they offer many ways of
payment like Momo, Vnpay, etc., which enhance the customer’s purchasing
experience.
Through the implementation of automated tools of the POS system and offering
multiple payment methods, Lotteria has successfully enhanced customer
satisfaction. However, the firm has to face a significant dependency on
technology. Performing financial online transactions may leak customer
information. Moreover, offering various delivery options helps the company
expand its online sale channels and increase sales but reliance on external parties
may cause some unexpected situations such as delay, missing delivery, or the
behavior of shippers that affects the customer's reviews.
Operations
Using the "WIN-WIN" strategy, Lotteria increases the sustainability of the
relationships between the firm and its franchisees with an environment of mutual
trust and co-prosperity (Lotteria, 2023). In 1999, Lotteria offered special interest-
free loans for up to 10 months for restaurant repair and renovation which
enhanced the brand image by providing a clean and sanitary environment that
leads to increased sales. However, that may bring on the potential for misuse.
Some franchisees could mishandle the money they get from interest-free loans,
using it for personal expenses instead of putting it into remodeling and repairs for
their restaurants. This might counteract the program's intended advantages.
Due to the development of technology, Lotteria upgraded its management ability

by using the Automated Restaurant Management Tools and The Web-POS Pilot
System at restaurants. A Point of Sales (POS) system is central to this strategy,
automating processes from customer management to accounting. The system
delivers real-time insights into sales volume and menu performance, contributing
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to overall restaurant efficiency. The Web-POS System which conducts key

activities in real-time (including customer management, accounting and sales) is
pivotal in Lotteria' sales expansion strategy, ensuring optimal efficiency in the
operation of each new restaurant.
Lotteria's reliance on the POS system means that any technical issues or
malfunctions could disrupt normal operations. Power outages, system failures, or
cyber-attacks could lead to downtime and loss of business.
Introducing new technology requires training for the staff to effectively use and
troubleshoot the system. Resistance or difficulties in adapting to the new tools
might hinder the seamless operation of the restaurant.
Implementing and maintaining sophisticated technology systems can be

expensive. Lotteria must consider the initial investment, ongoing maintenance
costs, and potential upgrades to ensure the systems remain up-to-date and
effective.
Marketing and Sales

Lotteria mainly focuses on promoting Lotteria through various social media such
as the Internet, magazines, and television in direct and indirect ways. Lotte Group
has invested in entertainment shows, traveling programs, and movies. They also
cooperated with KOL, famous actors, or bands to promote their brand (Tuyet Ngo,
2022). These promotional efforts shape public opinions and serve as effective
channels to enhance consumer awareness.
The Vietnamese youth exhibit a fondness for the Korean lifestyle, spanning food,
personal styles, and music. This cultural affinity provides Lotteria with an
opportunity to seamlessly integrate Korean styles and flavors into the Vietnamese
market. Lotteria's menu aligns with the preferences of Vietnamese customers,
facilitating easy acceptance. The widespread presence of Lotteria stores in urban
areas across the country contributes to its dominant market position.
Depending on KOLs, actors, or bands for promotions might be effective, but it

comes with risks. If a celebrity faces controversies or falls out of public favor, it
could negatively impact Lotteria's brand image.
Service
Similar to KFC, Lotteria' service strategy is to recognize and fulfill customer needs.
Lotteria can enhance customer satisfaction by prioritizing customer importance,
ultimately contributing to the long-term success of the business.
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Although Lotteria's hamburgers are a notable item on its menu, there aren't many
promotions for this product category (Tuyet Ngo, 2022). Lack of promotions for a
notable item may result in missed opportunities to attract and retain customers.
Reduced visibility and appeal of key products, potentially leading to lower sales
and market share for these items.
Moreover, despite being a fast-food restaurant, Lotteria occasionally has high

wait times for its customers' orders. Prolonged wait times can lead to customer
frustration, a negative customer experience, and potential loss of business to
competitors offering faster service.
Jollibee Vietnam – Value Chain Analysis

Inbound Logistic
In order to maintain uniform product quality and ensure food safety and
cleanliness at a fair price, Jollibee also employs a thorough quality control system
in its stores (Jollibee, 2023). By doing this, Jollibee is guaranteed a steady supply
of raw materials, minimizing reliance on important suppliers, raw material
shortages, or transportation-related issues.
Differentiating from its rivals, Jollibee operated the new processing factory in Tan
Kim Expanded Industrial Park, Can Giuoc, Long An and was honored to receive
international certification ISO 22000:201 (Jollibee, 2020). Having its processing
facility is seen as a significant accomplishment for Jollibee Vietnam, as it has
allowed the company to dominate the local fast-food market and establish itself
as one of the top brands in the QSR business for the quality of its products and
services.
Jollibee has mostly used franchising to expand its distribution network. Jollibee's
franchising model enables it to quickly increase its market share. Franchisees are
independent companies that run their own Jollibee locations under the Jollibee
brand and business plan. Jollibee offers its franchisees marketing materials,
training, and support to make sure they follow the company's guidelines. In
general, it's fine, yet it lacks efficiency. The company hasn't used automated
cooking technology to cut down on time and boost productivity.
On the other hand, operating a processing facility and maintaining a

comprehensive quality control system may involve significant costs. If these costs
are not managed effectively, they could impact the overall profitability of the
business. While having its processing facility is a strength, it could also be a
weakness if the facility faces operational issues or disruptions. Any challenges in
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the processing facility could impact Jollibee's ability to maintain its high product
quality standards.
Outbound Logistic
Likewise, Jollibee provides almost the same delivery services as KFC or Lotteria.
They cooperated with third-party such as Grab food, Shopee food, and Gojek to
expand their online sales channels. And, of course, it has its home delivery service
with orders from 60,000 VND which customers can order through the hotline on
the website from 9 am to 10 pm. Additionally, Jollibee also provides various
payment methods like MoMo, VNPay, etc.
Online financial transactions run the risk of revealing client data. Additionally,
providing a range of delivery choices aids in the company's growth of its online
sales channels and boosts revenue; but, relying too much on outside sources
might result in unforeseen circumstances like delays, missing deliveries, or
shipper behavior that taints customer ratings.
Operations
Jollibee has mostly used franchising to extend its distribution network. Jollibee's
franchising model enables it to quickly increase its market share (Trang Nguyen,
2023). Franchisees are independent companies that run their own Jollibee
locations under the Jollibee brand and business plan. Jollibee offers its franchisees
marketing materials, training, and support to make sure they follow the company's
guidelines. The company has used automated cooking technology to cut down on
time and boost productivity.
The use of franchising has allowed Jollibee to expand its distribution network
rapidly. Franchisees invest in opening new locations, helping the company to
reach new markets and increase its overall market share quickly. However, it is
hard to ensure consistent food quality and service standards across diverse
locations can be challenging. Differences in local supply chains and operational
practices might affect the uniformity of Jollibee's offerings.
Marketing and Sales

Jollibee is mostly located in central locations or crowded places and it runs loads
of advertisements on TV, print, and the Internet (such as Facebook, TikTok,
Instagram). However, the marketing and promotion of Jollibee’s products and
services are very low, when compared with other brands. That leads to not many
people being familiar with the brand name of Jollibee.
Despite the extensive advertising, if the overall marketing and promotion efforts
are perceived as low, it might indicate a weakness. Marketing goes beyond
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advertisements and includes various strategies to engage and retain customers.

This lack of brand recognition can be a significant weakness as it may result in
fewer customers choosing Jollibee over more familiar competitors.
Service
Jollibee has adjusted its menu to suit local cuisine, the most popular dishes in
Vietnam are "Chicken Joyful Chicken" - fried chicken with crispy skin and "Spicy
Saigon Chicken". The “Spicy Saigon Chicken” is a fried chicken dish combined with
a sauce made from traditional Vietnamese fish sauce, with a spicy, sour and sweet
taste familiar to Vietnamese tastes (Chau Huynh, 2021). The advantage of offering
culinary diversity on the menu that can attract a wide range of customers and
enhance customer satisfaction.
SWOT Analysis
Analyzing Strengths and Weaknesses from the Value
Chain Analysis
As the Value Chain Analysis is a tool to investigate strengths and weaknesses, here
are the valuation
KFC Vietnam
About the strengths
 Rigorous vendor certification ensures KFC's exclusive rights to recipes,
creating a unique selling proposition.
 Use of software for inventory tracking and preparation, ensuring quality
control.
 Utilizing algorithms and third-party logistics (3PLs) for efficient delivery,
especially in regions like Vietnam.
 Strict adherence to quality standards guarantees excellence and
consistency in product offerings.
 The franchise system enables KFC to expand its operations while
maintaining control over brand standards.
 Recognizable global brand with a strong and catchy tagline.
 Adjusting the menu to local preferences showcases flexibility and
responsiveness to diverse markets.
 Discriminatory pricing and combo options create a balance between value
and price.
 Extensive store presence makes KFC a convenient and accessible fast-food
option.
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 Prioritize delivering a satisfying client experience by using effective service

and high standards of quality.
 Emphasis on customer satisfaction and service quality contributes to
building brand loyalty.
About the weaknesses

 Heavy reliance on IT for inventory tracking may pose a risk if there are
technical issues.
 It may become challenging to retain control over the delivery process as a
whole if you depend on outside delivery companies.
 Ensuring franchisees comply with operational requirements may be
challenging, risking deviations in quality.
 Lack of innovation in marketing initiatives compared to industry
competitors, particularly on social media
 Challenges in maintaining food quality during delivery may impact
customer satisfaction.
Lotteria Vietnam
About the strengths
 The “cold chain” system and logistics department of Lotteria play an
important role in sustaining the fresh ingredients, ensuring product quality
and reducing spoilage losses.
 To cut down the time services at the physical store, using the automated
tools of the POS system helps Lotteria improve customer satisfaction.
 To strengthen bonding with franchisees and improve the brand’s image,
Lotteria uses the “WIN-WIN” strategy and offers interest-free loans for
repairing restaurants.
 Applying the Automated Restaurant Management Tools and Web-POS
System has boosted the management system more effectively, providing
real-time insights into sales and contributing to overall restaurant
efficiency.
 To promote Lotteria and strengthen its brand, Lotte Group decided to
invest the entertainment including films, TV series, game shows, and music
videos. The team has collaborated with several KOLs, or well-known
celebrities.
 Because of the influence of the Korean entertainment industry, the younger
generation becomes familiar with Korea’s cuisine and its lifestyle. Lotteria
effortlessly has more competitive edge than rivals.
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 They expect to satisfy customers and foster brand loyalty by delivering a

great customer service and prioritizing their pleasure through speedy and
high-quality assistance.

 Besides the multiple benefits of using a "cold chain" system, it leads to
increased energy consumption and transportation expenses and cost
becomes higher.
 Although the application of automated POS systems makes the
management system work more efficiently, the reliance on it may cause
some technical problems, cyber-attacks, or system malfunctions could
disrupt normal operations. Depending on third parties for delivery could
lead to unanticipated issues like missing or delayed shipments or
unprofessional shipper behavior that tarnishes consumer reviews.
Moreover, it is quite expensive to building and maintaining sophisticated
systems and staff training challenges may hinder seamless operations
 Depending on celebrities, musicians, or other KOLs to promote products
carries a risk because Lotteria's brand may suffer from scandals or changes
in public opinion.
 Limited promotions for well-known products, such as hamburgers, could
lead to lost chances to draw in and keep consumers, which would lower the
products' attractiveness and visibility.
 Periodically lengthy order wait times can irritate customers and create a
bad customer experience. It can also cost you business to rivals who
provide quicker service.
Jollibee Vietnam
About the strengths
 Jollibee's comprehensive quality control system ensures uniform product
quality, food safety, and cleanliness, contributing to customer trust.
 The ISO 22000:201 certification and the processing facility in Tan Kim
Expanded Industrial Park differentiate Jollibee, establishing it as a top
brand in the QSR business for product quality.
 Jollibee's collaboration with third-party platforms and its own home
delivery service provides a wide range of choices for customers,
contributing to convenience and revenue growth.
 Offering various payment methods like MoMo, VNPay enhances customer
satisfaction and makes transactions more convenient.
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 Jollibee's franchising model facilitates rapid distribution network

expansion, allowing the company to reach new markets and increase
overall market share.
 The use of automated cooking technology contributes to operational
efficiency, reducing time and boosting productivity.
 Discriminatory pricing and combo options create a balance between value
and price.
 Adjusting the menu to local preferences showcases flexibility and
responsiveness to diverse markets.
 Focus on providing a positive customer experience through efficient
service and quality standards.
 Emphasis on customer satisfaction and service quality contributes to
building brand loyalty.

 Operating a processing facility and maintaining a comprehensive quality
control system can involve significant costs, potentially impacting overall
profitability if not manage effectively.
 Any challenges in the processing facility could pose a weakness, affecting
Jollibee's ability to maintain high product quality standards.
 Heavy reliance on third-party delivery services may lead to unforeseen
circumstances such as delays, missing deliveries, or negative shipper
behavior, impacting customer satisfaction.
 The risk associated with online financial transactions revealing client data
poses a potential weakness in the company's security measures.
 Ensuring consistent food quality and service standards across diverse
franchise locations can be challenging and may impact the uniformity of
Jollibee's offerings.
 Despite extensive advertising, perceived low marketing and promotion
efforts may result in low
 brand recognition and fewer customers choosing Jollibee over more
familiar competitors.
 The lack of brand familiarity among potential customers due to low
marketing and promotion efforts poses a significant weakness.
 Offering culinary diversity is a strength, but a potential weakness may arise
if certain notable items on the menu lack promotions, leading to missed
opportunities to attract and retain customers.
 When customers have to wait for orders long time, that may lead to
frustration and a negative customer experience, then customers may
switch to competitors offering faster service.
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Analyzing Opportunities and Threats from the

PESTEL Analysis and Micheal Porter’s Five Force
Analysis
Based on the findings of the PESTEL and Michael Porter's Five Force analyses, it
is evident that the three businesses have similar target markets and consumer
categories. As a result, opportunities and risks are distributed evenly among all
organizations.
Here are some things to be aware of since they present similar chances.
About the Opportunities

Brand Recognition
Anh Phan and Thanh Nguyen (2016) state that one of the many chances that
businesses may take advantage of is brand recognition. Due to years of operation
and marketing expenditure, KFC Vietnam and Lotteria Vietnam have already taken
advantage of these prospects, since their brands are highly known among
consumers in large cities. This serves as the foundation for their future growth.
Innovative
Large brands in the Vietnamese fast-food business compete fiercely with one
another, therefore in order to stand out, they must innovate widely. The factors
that may be taken into account include the operation, experience, and product,
among others. Their menu and service might help them stand out from typical
street food sellers as well as from each other by bringing something new to the
market.
In order to improve ambience, engagement, and process convenience, companies

may focus on improving in-store designs and drive-through service, since these
are the primary factors that most brands consider when considering the features
of the consumer experience while dining in.
Furthermore, a brand might concentrate on operational innovation. By

implementing automation, cloud computing, or the internet of things (IoT) to
manage demand, improve supply chain efficiency, and keep an eye on food quality.
Growing market
A tool for calculating and determining returns for anything whose value might
increase or decrease over time is the compound annual growth rate, or CAGR. It
can, in other words, quantify a smoothed rate of return. (Fernando 2023)
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As on Mai Anh's (2014) analysis, the fast-food business in Vietnam is experiencing

tremendous growth, with a projected compound annual growth rate (CAGR) of
8.5% between 2022 and 2027. In this instance, there is room for brand growth
given the market's steady, respectable pace of expansion. Additionally, the
anticipated CAGR may help with long-term market sizing, since brands can use it
to inform decisions about product development, shop openings, and other
initiatives.
Partnership
As brands work with businesses in other industries, particularly banking and
logistics, it is advantageous in this era of technology transfer and feature
integration into a single application. The epochality of these two businesses is the
reason why they are notable.
The ease of online banking and e-wallets is the reason for their fast growth.
Internet banking is clearly not an exception in a time when most individuals can
carry out almost all everyday tasks with just their smartphone. These banking
choices are also quite popular in society since they are easier to register for and
use than traditional debit and credit cards. Because of this, by collaborating with
these financial systems and utilizing them for payment, you may develop
marketing campaigns like discounts. In this way, companies may entice clients to
use their goods or services.
In order to provide customers more options when making purchases, businesses

partner with 3PLs (third-parties logistics) like Grab, Now, or Gojek. In certain
cases, the 3PLs may be a very excellent option for brands when it comes to the
delivery service of these branches within the three firms, for various reasons
including lack of labor force, client location outside the deliverable radius, etc. As
of right now, they are able to attract more customers while simultaneously
relieving strain on their own workforce. Customers can benefit from these sites
as well by enjoying the discounts offered.
Technology Advancements
As humankind's technological capabilities advance at an accelerating rate, brands
must grasp this chance to integrate technology into their operations in order to
save costs and boost productivity across the board.
These factors include supply chain optimization, data analytics,

virtual/augmented reality, digital ordering and payment systems, and loyalty
programs. For example, contactless order ahead, smartphone payments, and QR
code menus may all assist cut costs when it comes to digital ordering and
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payment. They can also increase order numbers and enhance the dine-in
experience for customers.
The internet of things (IoT), radio frequency identification (RFID), and artificial
intelligence (AI) may help firms with real-time visibility, demand prediction, and
automatic inventory replenishments when it comes to optimizing the supply
chain process. The goal of all of these initiatives is operational efficiency.
Customer and transaction data may be detailed using data analytics, which can
then be used to support product innovation, tailored marketing, and targeted
loyalty programs. Businesses may then use that information to assess market
trends, since supporting brand innovation is essential to helping businesses
become more competitive in the marketplace.
Virtual and augmented reality have the potential to boost branch reach, support
distant selling, and improve consumer engagement in marketing efforts. Examples
of these campaigns include virtual stores and product catalogs.
Ultimately, branches ought to use the loyalty program more frequently. The
majority of people suffer from social comparison and FOMO, or the psychological
state of missing out. Customers who own memberships might accrue advantages
that entitle them to exclusive privileges from individual branches. Most people
won't miss it since they think the benefits are solely for them; they don't return
and keep using the service in order to avoid wasting the advantages. Branches may
now begin cultivating their clientele of loyal customers.
About the Threats:

Health consciousness
As the customer preferences started to shifting, and they more now concern
about healthier options. Especially after pandemic, consumers are more sensitive
to health issues. Therefore, brand now face with some of risks for them to deal
with. It is firstly, problem related to declining sales as fast-food that contains high
sugar, fat and calories face the shrinking market opportunities. Then are the
problem related to knowledgeable consumer. Those group may challenge the
brands as they will criticize the ethics of the brands, not to mention, brands might
face some litigation risks as potential lawsuits over consumer impacts arise where
industry influence on policy is perceived.
Preference for traditional street food

Vietnamese consumers have strong preferences toward traditional street food,
which often cheaper and more authentic compared to the fast-food chain (Rusith,
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2023). This makes it pretty challenging as fast-food brand now must find the way
to differentiate themselves from traditional fast food.
Price Sensitivity
According to Rusith (2023), Vietnamese consumers, especially in the fast-food
industry are quite price sensitive. Because of this, it’s very difficult for brands to
maintain their price and margins. This will therefore lead to problems related to
sales and revenue.
Labor Related
As a component that is very crucial in every industry, labor is definitely one risk
that every brand should noticed. Those can be naming as rising labor cost,
shortage of labor and high turnover. According to Hong Nguyen (2022), Vietnam’s
minimum wages are increasing annually by the rate of 7% to 10% as the income
rise. This therefore posses significant pressure on labor-intensive with thin
margin industry such as fast-food industry, leading to pay hikes will also be
demanded. Along with raised wages, as the economy grows, more workers are
trying to better jobs. This is creating scarcity in the fast-food industry where work
is demanding. This will therefore lead to recruitment and retention costs rising.
Lastly, fast-food jobs are considered as unstable or less desirable options, which
then lead to turnover rates remain high. As a result, training will be increased, as
well as productivity losses for businesses.
Regulations of hygiene standard and food quality

Some of regulations of hygiene standard and food quality that could threat
businesses in different ways. The results could be named such as higher
compliance costs, shorter storage time pressures and delays in operation. As
stricter regulations will require costly upgrades to facilitate, equipment to meet
new standards. This day by day becomes the burden.
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KFC Vietnam – SWOT Analysis

Strengths Weaknesses
 Rigorous vendor certification  Heavy reliance on IT
 Use of software for inventory  Retaining control over the
tracking and preparation delivery process as a whole
 Utilizing algorithms and third-  Ensuring franchisees comply
party logistics (3PLs) for with operational requirements
efficient delivery  Lack of innovation in marketing
 Strict adherence to quality initiatives
standards  Maintaining food quality during
 Discriminatory pricing and delivery
combo options
 Emphasis on customer
satisfaction and service quality
Opportunities Threats
 Brand Recognition that aids  Health consciousness and
expanding market share preferences of traditional fast-
 Innovation and technology food that influenced by the
advancements to assist society and consumer behavior.
operations, save expense  Price sensitivity in the
 Growing market for long-term economic downturns.
market sizing purpose  Labor problems raised due to
 Partnership to support shortage of labor force.
increasing customer  Barriers appeared due to
engagement regulations of hygiene
standards and food quality.
Lotteria Vietnam – SWOT Analysis

 The “cold chain” system and  Increased energy consumption
logistics department. and transportation expenses
 The automated tools of the POS and cost due to the “cold chain”
system help Lotteria improve system.
customer satisfaction.  Technical problems, cyber-
attacks, or system malfunctions
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 “WIN-WIN” strategy and offers could disrupt normal operations

interest-free loans related to POS System.
 The Automated Restaurant  Suffering from scandals or
Management Tools and Web- changes in public opinion while
POS System has boosted the depend on KOL, celebrities.
management system more  Limited promotions for well-
effectively. known products.
 Investing the entertainment  Lengthy order waiting times
including films, TV series, game
shows, and music videos
Jollibee Vietnam – SWOT Analysis

 Comprehensive quality control  Comprehensive quality control
system. system can involve significant
 Top brand in the QSR business costs, potentially impacting
for product quality. overall profitability.
 franchising model facilitates  Any challenges in the
rapid distribution network processing facility.
expansion.  Heavy reliance on third-party
 The use of automated cooking delivery services.
technology contributes to  The risk associated with online
operational efficiency. financial transactions revealing
 Discriminatory pricing and client data.
combo options.  Low marketing and promotion
efforts.
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 The lack of brand familiarity

among potential customers.
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Benchmarking Analysis
Two investigations are carried out to determine whether brands have the
financial wherewithal to handle risks or take advantage of possibilities. They are
the benchmarking of revenue growth rate and market share.
The Market Share Benchmarking

Foot Traffic
The first indicator that will be examined is customer trafficking or foot trafficking.
According to Kenton (2022), foot traffic is a term used in business to describe the
number of customers that enter a store, mall, or location. This is an important
metric because higher foot traffic tends to lead to higher sales and revenue
numbers. While exact numbers by location or month aren't disclosed,
management has stated strong system-wide comparable sales growth in recent
quarters, indicating rising store visits.
KFC Vietnam
As the fast-food chain, in the country KFC holds a dominant position in Vietnam
with over 300 stores spread across major cities like Hanoi and Ho Chi Minh City
as well as more rural provinces. This wide presence has helped KFC build a
customer base and establish a brand.
Before the pandemic, which occurred between 2018 and 2019 KFC Vietnam served
over 100 million customers who dined in at their restaurants. However, when the
pandemic hit between 2019 and 2021 there was a decline in foot traffic due to
restrictions on in store dining. Despite this setback KFC Vietnam made efforts to
offer takeout services in order to mitigate some of their losses.
Towards the end of 2021 as restrictions eased up there was a rebound in in store
dining as KFC launched promotions and introduced products to entice customers
back. However, given the impact of the pandemic on people’s finances many were
hesitant to spend money on dining out. As a result, while there was some revenue
from in store sales during this time period it wasn't substantial.
With optimism for recovery, in 2022 KFC Vietnam is looking forward to welcoming
customers with new store openings that will expand their reach. Additionally, they
have marketing initiatives aimed at engaging audiences.
KFC Vietnam has seen consistent or increasing customer numbers in years. It is

currently recovering from the disruptions caused by the pandemic. The number
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of people visiting their restaurants continues to be crucial, for their operations

and financial success.
Lotteria Vietnam
Lotteria Vietnam quickly grew in the market, opening over 200 locations as it
joined the Vietnamese market in 1998—just one year after KFC Vietnam. In
addition to having a lengthy history of operation, Lotteria Vietnam has a sizable
clientele on its own.
In the same situation that occurred in 2019 and 2020, Lotteria Vietnam had to deal
with lockdowns and economic downturns, which resulted in a decline in foot
traffic. This incident occurred while the brand was still attempting to increase its
market share. Following the conclusion of the lockdowns at the end of 2022,
Lotteria was able to increase its annual foot traffic thanks to marketing
campaigns, delivery alliances, and the development of additional stores in densely
populated regions. Compared to the mid-lockdowns in 2020, Lotteria Vietnam
anticipated that client traffic will be more restrained in 2022.
Lotteria Vietnam's customer visits have likely recovered from pandemic lows and
continue growing as operations scale up nationwide.
Jollibee Vietnam
Jollibee entered the market as the newest of the three brands in 2005, entering
the market over ten years earlier than KFC Vietnam and Lotteria Vietnam. By 2022,
the company had over 100 locations nationally. Given their selection of Filipino
food, Jollibee will undoubtedly need some time to establish both a loyal client base
and a strong brand recognition.
The pandemic disruptions in 2020 greatly reduced in-store dining industry-wide.

This would have impacted Jollibee's still-developing footfalls significantly during
initial lockdowns. By the end of 2021, Jollibee doubled down on promotions,
delivery partnerships and store openings to regain momentum. This helped drive
a rebound in store visits. For 2022, continued expansion into new regions
combined with ongoing marketing is expected to support further increases in
annual customer visits, albeit off an expanding but still smaller base compared to
KFC Vietnam and Lotteria Vietnam.
Customer visits have likely been trending upward in recent years as the business
rebounds and demand for Jollibee's unique dishes rises.
Therefore, due to the scale of customer base from each brand, it is clear to see
that KFC Vietnam and Lotteria Vietnam have the higher numbers when it comes
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to foot traffic. The result demonstrates clearly that even though the pandemic did
affect the nationwide, KFC Vietnam seized good opportunities prior to the
lockdowns to launch delivery. After the pandemic, all 3 brands pushed sales by
promotions and new products for the hope to attract new customers and bring
back the old ones. For this aspect, KFC Vietnam and Lotteria Vietnam, with their
customer base, have more advantages than Jollibee. KFC remains ahead for the
time being, despite Jollibee acquiring pace quickly due to its growing chain of
shops and increased brand recognition. Notably, traffic shows encouraging signs
of recovery when compared to pre-Covid levels, despite the fact that all non-
Vietnamese businesses are still recuperating from the outbreak.
Number of Stores
Number of stores might be underrated as some see it as a number only. In fact,

the number of stores illustrate mostly everything from the brand coverage, the
brand present, network growth, market dominance and awareness, and somewhat
about potential revenue. In this case, we will use the statistics from the number
of stores to examine the brand coverage. The data illustrates from 2018 to 2022.
The specific numbers would be described in the Appendix Section.
KFC Vietnam
By 2018, KFC, the biggest Western Fast-Food business in Vietnam, has built an
extensive presence of more than 300 locations. KFC continued to grow, adding
over 25 new outlets in 2019 to bring its total number of sites in Vietnam to over
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325. In light of these setbacks, KFC continued to expand steadily, adding only a
small number of new locations, to reach about 310–315 locations. As regulations
relaxed, KFC expedited outlet openings and is projected to surpass the 330-store
mark by year's end. It is anticipated that robust expansion would provide 20–25
additional outlets, bringing KFC's estate to over 350 sites throughout Vietnam by
2022.
Lotteria Vietnam
Lotteria first opened its doors in Vietnam in 1998, and by 2018, it had built an
ecosystem of about 50 locations across the country. The business increased its
pace of growth, aiming to add 10 to 15 brand-new locations this year and 70 to 80
locations overall by 2019. Even though the pandemic caused expanding delays,
Lotteria managed to add 5–10 additional sites, bringing the total number of
Vietnamese stores to 80–90 by the end of 2020. With a loosening of restrictions,
Lotteria quickly expanded its geographical infrastructure in Vietnam, adding an
estimated 40–50 additional locations to its total of 120–130 locations. Due to its
aggressive development ambitions, Lotteria is expected to open 40 additional
locations in 2022, bringing its overall network size to an anticipated 160–170
locations across the country.
Jollibee Vietnam
In the inaugural year of business as a newcomer, Jollibee Vietnam had a small
initial presence of 15–20 outlets. With 10 to 15 fresh locations launching each year,
the number of stores nearly doubled due to rapid development. Epidemic
difficulties notwithstanding, the distribution system expanded to 40–45 places
with the aid of 5–10 new stores. An ambitious expansion plan brought in 25–30
extra shops as regulations relaxed, bringing the total to 70–75. By continuing to
scale, Jollibee is expected to construct 25–30 outlets by 2022, bringing its total
number of Vietnam locations to 100–110. In order to establish itself as Vietnam's
top brand representing the Philippines and eventually reach 150+ outlets, the firm
is expanding its footprint there significantly. Although it is still the fewest stores
among large chains, the number is growing quickly.
With the data, we can see that even though KFC Vietnam has a huge number of
stores, nearly triple compared to the others, the growth rate is quite slow. Lotteria
Vietnam on the other hand, has a steady and fairly fast growth. Compared with
2018, by 2022, the number of stores of Lotteria Vietnam is nearly double with 165
stores. Jollibee even has faster and more pronounced growth, since by 2018, there
were only 18 stores while by 2022, the number of stores were 105.
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Market Share Percentage
Market share is the percentage of a sector's total revenues that a certain business
generates. Market share is computed by splitting the company's sales during that
time period by the total sales of the industry during that same time frame (Hayes,
2022). This measure is intended to provide a broad understanding of a company's
size in respect to its industry and rivals. The firm having the most market share is
the market leader in that industry. Market share is the percentage of total
revenues that a firm has in regard to the marketplace that it serves.
The specific numbers would be described in the Appendix Section.
KFC Vietnam
KFC Vietnam has always occupied the majority of the market. Throughout the
year, the market share percentage of KFC Vietnam remained quite the same at the
level of 19%. Lotteria Vietnam also has a very similar pattern as their market share
percentage does not fluctuate and remains at 6% to 7%. Jollibee Vietnam also
retains their market share around 5%. Even though all 3 brands faced the
lockdowns, only Jollibee recovered strongly after the pandemic with a positive
growth of 2%.
Lotteria Vietnam & Jollibee Vietnam

Throughout the years, from 2018 to 2022, Lotteria Vietnam and Jollibee Vietnam
both gained significant change, especially Jollibee Vietnam as by 2022, the market
share percentage increased 3% compared to 2018, which led it to be the most
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significant growth of all. On the contrary, even though KFC Vietnam is the leader
in the market, the market share percentage it holds remains throughout the years.
This suggests that KFC Vietnam should have a good plan to gain more market
share as the rivals grow significantly throughout the year.
The Revenue Growth Benchmarking

The Revenue
Revenue is the total income a company generates by the sale of goods or services
that can be attributed to the company's core operations. Revenue is accounted for
the money the company earned before any subtraction such as tax, fees, etc. In
short, Revenue is often the gross proceeds collected by an entity. It is the
measurement of only the income component of an entity's operations. For a
business, revenue is all of the money it has earned.
Looking from an overall perspective, it is readily apparent that the figure of all
contestants involved fluctuated significantly. KFC registered for the highest
proportion among other components. This can be attributed to the highest
coverage, brand recognition and enormous customer base of KFC Vietnam. In
2018, there was a noticeable gap between KFC Vietnam’s figure compared to the
two remained companies with a total amount of 455 million dollars. Followed by
Jollibee and Lotteria with 100 million and 50 million in turn.In the following year,
KFC’s statistics rose slightly up to 500 million, the same trend happened to other
strategies with figures being recorded at 60 million for Lotteria and 115 million for
Jollibee.
On the contrary, the data reported the opposite situation in all three companies
in which KFC’s data was down to 45 million compared to the previous period.
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Similarly, Lotteria and Jollibee fell roughly with total amounts of 45 million and 90
million respectively. In the last 2 years, the data of all three companies rose
considerably. KFC was still believed to be the highest figure with 550 million of
dollars in the year of 2022, which is approximately 100 million higher compared
to its data in the first studied year. Meanwhile Jollibee Vietnam had a substantial
increase in the two years span with 110 million in 2021 and 130 million in 2022,
followed closely by Lotteria with 55 million and 65 million of revenue respectively.
It can be stated that, KFC Vietnam compared to it competitors, still remained in

top as it can generate the highest amount of revenue.
The Revenue Growth Rate

A rise in revenue as time passes is referred to as revenue growth. The ratio of total
revenue growth to total revenue from the same period a year earlier is known as
revenue growth in accounting. (Paddle, 2023) Paddle (2023) states that revenue
growth rate computes annual growth by contrasting revenue from the prior and
current periods. Make sure that every time period you compare is the same
length; for example, compare this month to last month or last year to this year.
Subscription firms must account for churn in order to comprehend their revenue
development, as they rely on securing and maintaining recurring revenue.
When considering all of the firms listed together, it is easy to see that there are
large fluctuations in the statistics. After all, Jollibee had the greatest percentage.
Between 2018 and 2019, Jollibee's share reached its highest point at over 30%,
closely followed by Lotteria's at 20%, and KFC at about 14%. There was a sharp
decline in all three firms' percentage for the 2019–2020 period. Lotteria saw the
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worst fall, dropping to a whopping -25%—the lowest of the three firms mentioned.
Jollibee and KFC saw decreases of 18% and -8%, respectively, as additional
components. Given that pandemic and lockdown limitations led to this
consequence. KFC and Lotteria's respective statistics saw a rough increase by
2020 and 2021, reaching roughly 20% and 22% in question. In the meantime,
Jollibee's share gradually decreased, going from 18% in the prior period to -18%.
After fluctuating throughout the course of the four years, Jollibee's part jumps
significantly to almost 30% for the most recent time from 2021 to the present,
accounting for the greatest figures among other components. Conversely, there
is a minor decline in the two subjects that are still being tracked, KFC and Lotteria,
which are down to 11% and 18%, respectively.
Even while KFC continues to be the biggest fast-food restaurant in Vietnam,

Lotteria and Jollibee, its rivals in the area, are quickly catching up owing to their
increasingly ambitious expansion strategies. All participants must contend with
the macro restrictions of inflation and fixed expenditure on goods and services. It
is evident that while KFC Vietnam may continue to benefit from brand coverage
in the near future, this may not remain the case in the distant future due to
notable gains in Lotteria Vietnam's and Jollibee Vietnam's brand coverage.
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Recommendation
Pricing Strategy
The company's pricing strategy determines how much to charge for their goods
in order to successfully capture the interest of the target market. It’s a crucial
factor in financial modeling because it plays an important role in determining
revenues, profits, and amounts to spend in order to keep the company going in
the long run.
KFC has successfully implemented a pricing strategy by using market penetration

and price skimming strategies. This indicates that KFC maintained prices low
when launching new goods and drastically lowered them when their rivals joined
the market. They are able to obtain the attention they want thanks to this. Similar
to many other fast-food chains, KFC's pricing might change depending on the
region for a variety of reasons, including local market competition, rent, taxes,
and operating expenses. Local economic realities, pay disparities, and ingredient
costs may all have a big impact on KFC's regional pricing.
The first problem is cost fluctuation, which, by definition, is the instability in

resources and liabilities' costs that impact profit. In the KFC situation, due to the
covid–19 pandemic, the economy experienced inflation, which led to the raising
of resource prices and operational costs. Therefore, this issue requires efficient
supply chain management strategies, such as cost control or product adjustment.
For instance, instead of raising prices, KFC should reduce the proportion of items
in the menus while maintaining the price or adding exclusive items for a limited
time, which is called “shrinkflation”. However, this solution can also lead to
another problem, which is consumer price sensitivity. Some consumers may not
be satisfied with the price in comparison with the return value which is a smaller
proportion, especially during the economic crisis. The solution to this problem
can be introducing value bundles such as more combos with toys for children, or
creating a loyalty program that is more likable to Vietnamese consumers.
Moving on, as we mentioned in the social factor aspects of the PESTEL analysis,
people are becoming more concerned about obesity and health problems
nowadays. Since people began to think about healthy food choices in their diet,
their preferences have changed. For example, due to the first appearance of online
meetings in the covid 19 pandemic, employees will have more free time to cook
while doing their job online instead of eating fast food. By including more healthy
options while maintaining the core offerings as well as clearly proving the quality
and sourcing of ingredients to address health-conscious consumer concerns, this
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will benefit the company. These are some recommendations to help KFC
encounter their issues, increase their profits, and maintain their business.
Marketing Campaigns
From the inspirational story of the journey "from zero to hero" of KFC's founder,
Colonel Harland Sanders, KFC has now become one of the most successful F&B
brands in the world thanks to its smart and methodical marketing strategy (Ngoc
Anh, 2023). KFC has captivated consumers with its unique ideas, from media
campaigns launching unrelated products to promoting the flavor of fried chicken
to encouraging customers to criticize the company's food. However, thanks to
that unique and strange approach, KFC has achieved its goal of promoting brand
connection and making a lasting impression on users. For instance, in Canada,
KFC is known for having bad French fries. In a satirical ad, KFC Canada says
goodbye to its boring fries with a funeral parade and welcomes their salty
replacement. Another classical example is the "Finger lickin’ good” advertisement,
where KFC gives an apology for all utensils that get forgotten when people eat its
chicken. Throughout the years, KFC has been launching brilliant ideas that attract
consumers around the world. However, there is still a lack of KFC campaigns in
Vietnam. The most common marketing strategies available here are KOL and
social media marketing, which do not bring much attraction to new consumers.
Therefore, there are several solutions to this problem. For instance, we can make
a creative comedy skit like the Canada KFC “Fry Funeral” commercial to attract
the majority of consumers, which are kids. Furthermore, we can make use of the
"Turning Fast Foods into Gourmet” trend on YouTube and TikTok to engage more
customers.
The Customer Journey

In order for a business to thrive, they need to understand their customers well.
But building an understanding with customers isn't easy. Therefore, we will use
the customer journey to look into the customer's experience with the goal of
optimizing that experience in every state. The customer journey is a full round of
each level of interaction, from the first impression with the brand to being a loyal
customer. There are five stages that every potential customer goes through,
which are awareness, consideration, decision, service, and loyalty.
According to the data base conducted by Aldrin Velázquez three years ago (due to
a lack of data in recent years, but data is proven to be still relevant nowadays), we
can clearly see that we have to raise more customer awareness and improve
service quality.
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There are some solutions to tackle these problems. In order to increase customer
awareness, we can make use of celebrity endorsements or collaborate with other
brands in different areas. For instance, due to the fact that soft drinks go well
with fast food, collaboration with soft drink companies like Coke, Pepsi, or Sprite
can help people acknowledge more of the brands. Furthermore, we must
constantly improve and maintain our current services, but a brand-new type of
service also has to be created. For example, a membership card that offers good
deals in exchange for a certain number of purchases.
In conclusion, these are some methods that we recommend for KFC, aiming for
more sales and leads.
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Conclusion
In conclusion, the competitor analysis of KFC underscores the intricate interplay
of factors shaping the competitive landscape in the fast-food industry. Through a
comprehensive examination of key rivals, dissecting the strategies, market
positions and unique value positions of each company unveils the importance of
agility and innovation in an industry where consumer preferences are dynamic.
KFC, as a major player, must leverage its brand strength, focus on innovation, and
adapt to changing consumer preferences to maintain and enhance its market
position. As the global market evolves, this analysis serves as a strategic compass,
guiding KFC to make informed decisions that align with the ever-changing
demands of consumers and the competitive forces shaping the fast-food sector.
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Appendix
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2020
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The Brand Recognition – Group Mapping
Page 80 of 83
The Customer Preferences – Group Mapping
The Brand Image – Group Mapping
Page 81 of 83
The Market Share – Group Mapping
Number of Store – Bench Marking
Revenue – Bench Marking
Page 82 of 83
Revenue Growth Rate – Bench Marking
Page 83 of 83

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BMGT – WS2023 Group 13

Target market and customer proﬁle ....................................................................... 34

The Revenue ................................................................................................................. 65

Group Member List

Several advantages of a competitor analysis include: Recognizing industry norms

Analyzing your competitors is an essential part of growing any business. It may

Strategic Group Mapping

In the majority of companies, strategic groupings are prevalent. Businesses in the

It aids in the visualization and analysis of rivals' position as competitors in the

Value Chain Analysis

In accordance to Zucchi (2023), businesses can do a value-chain analysis to

(Moon Welfare Foundation, 2020)

Political, Economic, Social, Technological, Legal, Educational, and Environmental

Technology advancements have an impact on a company's positioning. A few

Only three of the ﬁve factors—social, economic, and technological—will be looked

Micheal Porter’s Five Force Analysis

INSTITUTE FOR STRATEGY & COMPETITIVENESS (2012)

New competitors' force on a market has an impact on a company's strength as

components, and the expense to a business of moving to a different supplier. A

Peterdy, K. (2023, October 26). SWOT analysis. Corporate Finance Institute

Peterdy (2023) asserts that many stakeholders employ a SWOT analysis in

Lucidchart (2023) states that a company's objectives should be to expand, enhance

benchmarking, deﬁned by Lucidchart (2023), is an assessment of the goods,

Benchmarking analysis involves comparing the performance, practices, and

Strategic Group Mapping

Hereby, we conduct 2 maps in order to demonstrate the situation would be more

reasonable price, and good advertising.

Target market and customer proﬁle

No. Criteria Description

1 Age KFC's customer base is diverse in age, but it tends to attract a

(KFC Marketing Strategy 2023: A Case Study, Rahul Arun, 2023)

In addition, KFC also offers a variety of value-driven options to customers with

Moreover, KFC retains a menu with a variety of reasonably priced options,

Besides that, KFC frequently introduces limited-time specials and discounts on

of chicken, sides, and biscuits, making them a convenient and cost-effective

As a whole, KFC's value-for-money strategy aims to provide customers with

To persuade its customers of its mouthwatering culinary products and delicacies,

Lotteria Vietnam – Company Proﬁle

Lotteria's mission is to provide high-quality, delicious, and convenient fast food

Finally, the company is actively involved in the community, demonstrating its

In conclusion, Lotteria's core values of quality, customer satisfaction, innovation,

Target market and customer proﬁle

Customer Proﬁle of Lotteria Vietnam

No. Criteria Description

1 Age Lotteria attracts people of all ages, including teenagers, young

3 Lifestyle Lottery appeals to a wide range of lifestyles. Health-conscious

4 Location Lotteria's customer base is predominantly urban, attracting city

5 Taste Lotteria's menu includes a variety of fast-food items such as

Product Mix Pricing Strategies

By offering quantity discounts, Lotteria incentivizes customers to buy more

segments, from high-end to low-cost. This enables Lotteria to compete directly

Lotteria has built a brand with Korean characteristics by capitalizing on this

Jollibee Vietnam – Company Proﬁle

Target market and customer proﬁle

Customer Proﬁle of Jollibee Vietnam

No. Criteria Description

1 Age Children and young people from 18 to 35 years old

4 Location Urban areas, especially Hanoi and Ho Chi Minh City

With the steady direction, Jollibee is successful in many countries, including

Micheal Porter’s Five Force Analysis

The threats of new entrants

The threats of substitute products

Supplier Bargaining Power

Customer Bargaining Power