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A. B. I. Introduction ......................................................................................................... 2 Main findings ....................................................................................................... 3 The basic concept of marketing .................................................................... 3 1. Compare alternative definitions of marketing and explain the
importance of being a contemporary marketer for 1901 Hot Dogs ...................... 3 2. Identify the main characteristic of a market orientated organization for
today‟s modern businesses applicable to 1901 Hot Dogs. .................................. 8 3. 4. II. 1. Identify the elements of marketing concept.............................................. 11 Identify and assess the benefits and costs of a marketing approach ....... 13
The content ....................................................................................................... 16 Identify and explain the macro and micro environmental factors which
influence marketing decisions affecting 1901 Hot Dog in Vietnam. ............... 16 1.1 1.2 2. 2.1 2.2 3. Micro factors ............................................................................................ 16 Macro Factors .......................................................................................... 17 Segmentation ............................................................................................ 20 Business to business Segmentation ........................................................ 20 Business to customer Segmentation........................................................ 22 Factors which influence the choice of targeting strategy for 1901 Hot
Dogs..................................................................................................................... 23 3.1 3.2 4. C. Internal factors ......................................................................................... 24 External factors ........................................................................................ 26 Buyer behavior ............................................................................................ 28 Conclusion ........................................................................................................ 31
It was at the height of the Asian Financial Crisis. The country was reeling from the impact. Belts were tightened and many businessmen took conservative routes to ride the crisis over. In the midst of this turmoil, two young entrepreneurs, Tengku Rozidar and Ahmad Zakir, set up the first ever hot dog store in Sunway Pyramid, Malaysia. The rest, as they say, is history. From the first pushcart, 1901 now has grown by leaps and bounds with over 70 outlets by 2007.
In the first part, this report will provide some basic concepts about marketing, including definition, characteristics of market organization, marketing concept as well as the costs and benefits that this concept brings to a company which application to real case study of 1901 Hot Dogs. Moving to next part, the marketing process of 1901 Hot Dogs will be explored deeply in term of business environment influenced factors, segmentation, targeting strategy and buyer behavior affects marketing activities.
The basic concept of marketing
1. Compare alternative definitions of marketing and explain the importance of being a contemporary marketer for 1901 Hot Dogs 1.1 Compare Alternative Definition of Marketing In daily life, people often hear the word “Marketing” repeated a lot of times and find that it is quite familiar. However, how many of them actually understand what marketing definitely is. In fact, every researcher has their own definition to the terminology “Marketing”, based on what they consider what marketing is actually about.
Customer needs Identifying Marketing Anticipating Supplying Mutual beneficial exchange Firm’s objectives
Figure 1. Arriving at a definition of a marketing
According to Philip Kotler, “Marketing is defined as a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with each other.” In this definition, Kotler focus on creating and exchanging process in order to basically meet with human needs (the state of felt deprivation) and wants (the form taken by human needs as they are shaped by culture and individual personality). Furthermore, these processes are based mostly on social and managerial grounds in which people only charge what they feel value and satisfy their requirements.
Kotler and CIM‟s definition. On the other hand. Moreover. “Marketing is the process of planning and executing the conception. as well as the marketing of those goods and services on behalf of a company. Therefore. In their dictionary. goods and services to create exchanges that satisfy individuals and organisation”. the product or service of the company is not only have to help customer achieve what they wants but also benefits or added value. In this definition. Importance of being a contemporary marketer According to Business Dictionary. In other word. In my perspective. but also the companies as sellers.In another way. In other word. the involvement of ranged stages involve in marketing process in order to bring benefits not only for customers like in CIM‟s definition. through marketing. In fact. a modern marketer has to cultivate his necessary skills in order not only to adapt with these changes but also 4 . companies brings added value to satisfy customer‟s demands. marketer is defined as a person whose duties include the identification of the goods and services desired by a set of consumers. the definition focuses deeply on the relationships between the buyers and the sellers in term of win – win relationship. the market is a highly scrutinized environment which always experiences a lot of changes day by day. Chartered Institute of Marketing “Marketing is the management process which identifies. the definition emphasizes mostly on the important of customers that satisfying customer‟s needs as an essential duty of company in long – term business. pricing. due to the incessant change in customer‟s demand. anticipates and supplies customer requirements efficiently and profitably”. promotion and distribution of ideas. in this case. diverse from initial trying to identify what the customer‟s needs are as well as discover how to meet with these needs in short . CIM‟s definition defined Marketing as a term to describe a broad scope. based on the strong relationship that is built between them. and capture value from them in return.term. in which both sides gain added value from exchanging. the American Marketing Association considers Marketing in more complex and comprehensive way rather than Mr. marketing is a management process which includes a number of strategies and tactics in order to create benefits for both customers and companies. Therefore. 1. In contrast with Kotler‟s definition.1.
networked marketing. they can take absolutely all advantages of new technology to minimize the cost. but still brings convenience to the customers. in which marketing is moving away from mass marketing toward one – to – one and one – to – many communication principles. As a result.fulfill his work effectively. marketing has experienced an evolution. application as well as its impacts in specific. they will come bake to goods and service of company. Furthermore. Basically. Therefore. On the other hand. when customers felt satisfy. As a result. Moreover. a durable relationship between customer and company is built and maintained based own satisfactory of both sides and belief in each other. In this case. Obviously. search marketing and direct marketing in most effective ways. a normal question of “Where are these importance skills?” is raised. It not only help the company has loyal customers but also a stable earnings that it can maintain the market share in long – term. 5 . and how to satisfy their demand as well as bring those benefits. in recent years. the question “Who are the winners and losers in modern marketing?” has found its answer. In fact. It leads to the fact that some people mistakenly understand that marketing only has advertising and selling which focus on selling product as much as possible in order to achieve great profit. In the traditional perspective. a modern marketer have to understand clearly about business core skills such as solving problems or working with other people in general and marketing concepts. As a result. modern marketer also has to have basic technology savvy and always update information. marketing only focus on company‟s benefits instead of customers as well as their satisfaction. The contemporary marketers with their own advantages will take over traditional marketers. being contemporary marketers appears vital not only to people who are working in marketing but also for the company in the modern day. the biggest differences between traditional and contemporary marketers are on marketing‟s philosophy that they follow. contemporary marketers are marketers who catch. contemporary marketers always try to identify customer‟s need and wants. Furthermore. understand and use these modern marketing kinds such as viral marketing.
These are: recognizing suitable products. So. marketing become not a high . In my view. there are three interests that 1901 Hot Dogs can get when the contemporary marketers expand market into Vietnam. For 1901 Hot Dogs. In order to satisfy the customer demands and making benefits for both sides. the key for 1901 Hot Dogs to live in Vietnam is how to satisfy needs of clients. etc. like other companies. in long period of time. a contemporary can gather information from customers such as: their taste. recognizing suitable products is important. there is no such position to marketer due to the fact that government controls all trading activities. the rain – storm development in technology in Vietnam recent year also brings customer more chances to explore information as well as choose suitable products for their demand. By analyzing market. marketing appeared as a “hot” job and attract a lot of attention. After that. these products of 1901 Hot Dogs can be popular with Vietnamese more than other products of other companies. working as a marketer is become more and more popular.salary but also fierce – competition job which require marketer have a wit and creative mind.Applying to Vietnam scenario. However. place and promotion. Before this time. Vietnam Government decided to perform Doi Moi policy in which Vietnam‟s economy change from subsidization to market. Actually. marketing is a very importance part of marking profit. From this. being contemporary marketer is become more and more important especially when Vietnamese economy develops incessantly in dynamic way. In 1986. all things the marketer should follow are contemporary marketing theories. 6 . So Hot Dogs are totally fitting with Vietnamese‟s taste. along with the growing of market economy. they can make menus and combos that are fitting for Vietnamese. until the theories of modern marketing was applied and work effectively. At first. Things that the contemporary marketers of 1901 Hot Dogs have to complete are to solve the matter of: product. One strong point of 1901 Hot Dogs is Vietnamese like fry or stir-fry food. marketers is become more complex job that require a lot of skills as well as perfect practical and keen mind. raising revenue by saling products and affirming brand. make them become erudite customers. Therefore. Hence. price. Moreover. their favorite foods.
Secondly. Lotteria. etc. It is the vital problem if 1901 Hot Dogs want to survive long-term in Vietnam. magazines. Also through expanding market into Vietnam. Vietnam is still a developing country. 7 . what are the strong points and weak points of 1901 Hot Dogs and which way to overcome these disadvantages. 1901 Hot Dogs can have the chance to identify and understanding many things about competition such as ways to attach buyers. It also is the mission of a contemporary marketer. Besides that. raising revenue by saling products depend strongly on pricing. products of 1901 Hot Dogs can be more popular if they apply some kinds of advertising through TV. It can be fulfill if Hot Dogs continuously concentrate on upgrade its products and improve service behaviors of staff. 1901 Hot Dogs can have ability to compete other famous brand such as: KFC. These things will increase the number of loyal customers and equal benefit of company and customers. newspapers. The final importance of contemporary marketers is that it helps 1901 Hot Dogs to affirm its brand. This thing is very important because it is the key that decide the success of 1901 Hot Dogs in Vietnam. so giving an affordable price either is a way to raise revenue or help 1901 Hot Dogs to approach more customers. and McDonald. Furthermore. or radio.
2. As a result we note that the traditional crafted customization can not produce self allocatable individual and complex 8 .centered No Product Orientation Competitor Orientation Yes Customer Orientation No Competitor .centered Yes Market Orientation There are four main characteristic of a marketing orientation: ( As shown in the table above) “Product Orientation describe a company which make what it thinks the customer will buy” “Customer Orientation according to Professors Peter Loos of Chemnitz University of Technology is a central theme in literature. Nevertheless it gives the impression that comprehensive and individual customer‟s needs are not covered. Existing parameters discussed in the literature only focus the perspective of the seller. Identify the main characteristic of a market orientated organization for today’s modern businesses applicable to 1901 Hot Dogs. First of all we define parameters to measure the customer orientation from the perspective of the customer. We answer the question by focusing the possibilities of internet based markets and internet-driven virtual value chains. Normally the customer receives individual products and services which are not integrated. In a second step we transfer the parameters in a matrix which helps us to classify the customer orientation. Customer . Based on this matrix we discuss suitable production concepts to supply the range of customer-oriented products and services. At this point we ask specifically how these customer needs can be handled.
On the other hand.” “Market Orientation are defined as a company philosophy focused on discovering and meeting the needs and desires of its customers through its product mix. company should focus on determining how to satisfy their customer by exploring customer‟s behavior and consumption trends and produce goods suitable with their demand. the customer provide company their valuable feedbacks on products and services. collecting information from customer before and after using products help company understand partly their customer as well as using trend.outputs. design. On one hand. businesses have different operation orientation. Secondly. market orientation can be thought of as a coordinated marketing campaign between a company and its customer” Normally. This business model uses the internet technology to realize value chain and supply chain activities between different actors and an intermediary who coordinates the network. We present an internet business model to create an adequate solution.e. everything has two sides. In contrast with production orientation. the product is produced and provided due to customer needs and want. In essence. i. market orientation works in reverse. Finally. etc of in order to satisfy customers in highest level. However. attempting to tailor products to meet the demands of customers. which helps the company improve quality. marketing orientation focuses on the needs of the buyers instead of sellers. As a result. which enables them to communicate effectively with the customer. the high satisfaction from the customer also builds a strong relationships between 9 . based on where they place consumer in the marketing process for companies who follow marketing orientation. Unlike past marketing strategies that concentrated on establishing selling points for existing products. It is expressed on R & D projects of the companies. and market orienting is not a special exception with its own advantages and disadvantages. an integrated bundle of customized products and/or services to satisfy a comprehensive and individual need. satisfying customer‟s needs and wants while still making profit appears as the central working philosophy.
company can face trouble with “me-too” products. Finally. hence. it can have ability to compete with others brand which are very famous in Vietnam now like: KFC. On the other hand. products of 1901 Hot Dogs can occupy Vietnam market stably and continuously. company also has to face to some disadvantages when they follow marketing orientation philosophy. 1901 Hot Dogs also can supply this method successfully. Firstly. Lotteria. Once products of 1901 Hot Dogs have already occupied Vietnam market. hence. they have to invest a lot of money on extensive researches to explore the customer‟s needs and wants.customers and company in a long – term. Secondly. Therefore. expect on the requirements of customers. On the other hand. the company have to pay high – leveled attention to the changing of their customer behavior. the company has chance to maintain a stable earnings every year and keep their market share. 10 . it also leads to other problems when the company has to pay a high costs and waste lots of time includes the period to delay for product to market. because the fact that company running mostly to satisfy customer need. By define the value of its own products. the marketing orientation centralize on the customer‟s needs and wants. in case their competitors can sell the same product with the considerable cheaper price by not having to waste money and time to research the requirement of consumers and develop their products. if they do not want their products become tomorrow‟s throwaways. This fact also brings company the high cost of researching customer‟s requirements whereas company always pays attention to the buying behavior may change their objectives. Apply to the case.
and the market. transacions and relationships Value and Satisfaction Figure 2. when the human wants backed by 11 . Wants and Demands Market Marketing Offer (goods. Needs. Identify the elements of marketing concept Needs. transactions and relationships. In addition. clothing. marketing offer.expression) deprivation. In the next part. as well as the application in 1901 Hot Dog case study. warmth and safety). exchange. the core marketing concepts included five main elements linked together in an enclosed cycle: Needs. Model of core marketing concepts As the model above. wants and demands: According to Philip Kotler. every element will be indentified both in separation and relationship with other elements. social (belonging and affection) and individual (knowledge and self . Kotler identify wants under a form that human needs take as they shaped by culture and individual personality. needs is defined as the states of deprivation including physical (food. value and satisfaction. wants and demands.3. Develop from this definition. service or experiences) Exchange.
they will provide products under marketing offers to seek for consumer satisfaction. the exchange occur when the demand of consumer meet with the supply of seller in order to achieve benefit. Furthermore. the company can give out marketing planning in which not only satisfy the consumer‟s needs and wants effectively but also orient their needs and wants companies‟ desire in long – term (trend setting). On the other wore. As a result. transactions and relationships: Exchange is defined as the act of obtaining a desired object from someone by offering something in return. if 1901 Hot Dogs can‟t find any solutions to fix this problem. information. 1901 Hot Dogs have to focus on customer orientation because Vietnam‟s market doesn‟t like other market. the 12 follow . they already take care of their health. Furthermore. On the other hands. So. it also helps them create belief and loyalty in consumer. Therefore. the consumer is satisfied when marketing offer meets with his demand. a product should be created based on human needs and wants. they bring each other satisfaction with benefit and added value. For both sides. In the market. the changing in market indicates the changing in trend of consumption. or experiences offer to a market to satisfy a need or wants. Marketing offer: Marketing offer are combination of products. Exchange. On the other hand. service and experience are exchanged to bring benefits and satisfy both two sides: buyers and sellers.buying power. On one hand. services. they worry about their health because fry-foods and stir-fry foods have too much oil. win – win strategy is applied. through exploring and studying market carefully. the company is also satisfied when their marketing offer is accepted and bring them customer means profit and earning. A symbolic example: although Vietnamese like eat fry-foods and stir-fry foods. Value and satisfaction: Actually. which is very valuable for them in long – term business. actually they really want to eat these foods. it becomes demand. from creating and exchanging process. when the companies identify and discover what their target consumers needs and wants. products. Market: Market is the set of actual and potential buyers of a product or service. Normally. In this case.
cleanliness. But come along with advantage there always a disadvantage. instead of product at central place in marketing strategy and activities. McDonald‟s is the most successful brand in the world. not only in the revenue but also in the reputation and the quality of food. For example. However. The buyer will find other foods of other companies that are not only guaranteed about quality but also popular with them. but in Philippines McDonald‟s had lost most of the market share to Jollibee. the satisfaction brings loyalty of customer to the company. It is proved in every entree. customer are afraid of trying something new unless that new products it‟s a break through. they only selling fried chicken. but one advantage 1901 Hot Dogs is none of its competitor selling hot dogs. Furthermore. In order to have this “ Break-through”. As a foreigner Fast food company. and hamburger (KFC.foods of 1901 Hot Dogs can be no longer belong to favorite foods of buyer. it leads to cross – selling opportunities in which explosive growth 13 . etc…). BQQ chicken. Identify and assess the benefits and costs of a marketing approach In Vietnamese scenario. and this marketing approach brings not only benefits but also considerable costs for the company. 1901 Hot Dogs will have to exploring the market in order to identifying the customer who defined as purchaser of a product or service is not out of this process. In Vietnam there are more than one fast food services. he/she will prefer a fast. 1901 can be bankrupt in Vietnam‟s market. Jollibee put rice in it. The revenue of 1901 will be fall down rapidly. 1901 Hot Dogs will have to a lot of research in both market and Vietnamese cultural. Worst. and affordable services rather than waiting in a old fashion long line. The main reason for Jollibee successful is that Jollibee had done a good market investigation. 1901 Hot Dogs should use some marketing approach that have been borrowed from other fast food company such as KFC. and the food is similar to what “ a Filipino mother would cook at home” and is designed “ to suit the Filipinos palate”. 1901 Hot Dogs should follows marketing orientation in which they approach the market by focus on customer. Obviously. 4. When a some one rush in 1901 Hot Dogs. everything has two sides.
it does not only help 1901 Hot Dogs gain earning from loyal customer but also remain and expand market share. by establish long lasting relationship with loyal customer. Firstly. it has to spend a lot of money on research and development projects to understand market as well as customers. taking advantage of loyal customers is one of the most effective ways to attract other customers in order to achieve their satisfaction and loyalty. For example. the customer tends to trust on what experience consumers said. Normally. a loyal customer can introduce the brand to other people or provide positive comments on the Internet for the company. Moreover. instead of company‟s advertisement.html 14 . keep existing customer 1 http://www. the company might reduce the extra cost on looking for customer and marketing campaigns. Moreover.businessdictionary. going along with benefit is the cost that 1901 Hot Dogs has to face with when they decide to enter Vietnamese market. In other words. Image 1. Viral Marketing through customer’s contact However.com/definition/viral-marketing.in sales or spread of product information though customer contact1. when the company chooses marketing orientation approach and centralizes customers. In long term.
Secondly. when customer is the central of marketing process. the taste of customer not only changes incessantly day by day but their requirements are also rising. every product is produced and provided based on what they need and want. many serious consequence can occurs.retention as well as gaining potential customer also make up a considerable amount of money. As a result. 15 . In case 1901 Hot Dogs lose its customer. including after – selling services and PR campaigns. company also have to focus on quality movement in order to satisfy customer in the highest level. Furthermore. effect negatively on company‟s profit and operations.
1901 Hot Dogs has become an international brand but 1901 „s products are not very popular in Vietnam.1 Micro factors Microenvironment consists of the factors close to the company that affect its ability to serve its customers: the company. as known as stakeholders. a considerable part of Vietnamese people assume that foreign products often own quality over domestics one. As a result. marketing intermediaries. This could be the worst critical situation if 1901 want to join Vietnam fast food market. this mean 1901 didn‟t exploit the full potential of mass media. connected (suppliers. Strength: The first strength of the company lies in the international brand that 1901 Hot Dogs has already built. are classified under 3 main categories including internal (within company). Particularly. These factors. Another weakness is 1901 Hot Dogs has a lack of toys that come with kiddy meals while its competitor like KFC has every chicken action figure in each 16 . 1. customer markets. suppliers. the experience as well as the international fame of 1901 Hot Dogs brand appears as an advantage for the company when they confidently build initial image with high – level products. and publics in general. competitors. Another points is that. Even though. Weakness: The main weakness of 1901 Hot Dogs is that they don‟t have the proper marketing strategies. Identify and explain the macro and micro environmental factors which influence marketing decisions affecting 1901 Hot Dog in Vietnam. The content 1. In addition. information about 1901 are only available in limited source such as 1901 Hot Dogs and Facebook.II. opportunities and threats of the company. intermediaries) and external stakeholders (competitor. public) in order to explore the effect of them on strength and weakness. the entering of foreign especially international brands into Vietnam are welcomed and appreciated in a warm way.
2 Macro Factors Major external and uncontrollable factors that influence an organization's decision making. Normally. 1. From this 2 http://www. and natural forces2.businessdictionary. Moreover. technological changes. Society and Technology). Economics. demographics. 1901 Hot Dogs is the first fast food company in Vietnam that sell hot dogs.html 17 . being the first isn‟t always good. This encourage the young age customer to urge their parent to buy KFC‟s products. if 1901 did not do well in market research. everything has it two sides. there will be a potential opportunity for 1901 to approach the customer and help them to satisfy their spiritual demand in return of earnings and frame. terror attacks or unstable politics can affect the company‟s running in both long – term and short . For example.term. As a result. legal. Threat: How ever. Politics: Firstly. the stable of politics enable residents to live peaceful and have time to care about both physical and spiritual life. These factors include the economic. and affect its performance and strategies. Moreover. political. Vietnamese government focuses on attracting FDI (foreign direct investment) as one of the main sources for economic growth. Secondly. Vietnamese government has had positive policy in order to attract foreign companies invests and run business in Vietnam. the macro environment factors are analyzed under PEST formula (Politics. it could lose market shares in its own area or worst being over throne by a new comer who did well on customer research. Therefore. 1901 Hot Dogs still has it own opportunities that none of its competitor has. and social conditions.of its kiddy meals. it can ensure that there is no consideration religious conflict. so it'll have the privilege of being the first company to step foot in hot dog business in Vietnam. Vietnam is considered as a safety investment place for foreign country based on its political stable. Opportunities: Despite the weakness which was mentioned above.com/definition/macro-environment.
These statistics above indicate a lighten potential market that always open the door to welcome the international brand like 1901 Hot Dogs enter.direction. the USD exchange at black market rise higher and higher effect considerably in import expenses which can influence on products‟ price of 1901 Hot Dogs. in spite of the economic influence under global economy recession in 2008.vn/default. the price of company‟s products range from 59 000 VND to millions VND. Thus.asp?searchTerm=&iArticleID=2093&definition=luxury_good http://www.4 Furthermore. the economics of Vietnam maintains developing despite of being influence significantly by global economic recession. Moreover.05% against the previous month5 while the retail market in 2009 reached 66 billion.gso. the religion factor does not have much significant influence on 1901 Hot Dogs business. the government provides a considerable number of policies to encourge foreign investors to pour capital in Vietnam. the company does not have 3 4 http://www.4% for 2nd quarter and by 7. According to the statistics of General Statistics Office. the whole economy is under unstable situation. Social: Firstly. In other words. This was a rather high growth as compared to that of 4. According to statistics from GOS (general office statistics).62% in the same period last year. In recent years.52% as compared to nine months in 2009.htm 18 . Budget deficit stand at 9% in 2009 while inflation is still remain high year by year. the October‟s CPI rose by 1.83% for 1st quarter. 1901 Hot Dogs products‟ is put under label of luxury goods which defined as one which has income elasticity larger than one3.uk/financeglossary. Vietnam is a multi – religion country but no one of them becomes national religion. by 6.vn/2010102305201231P0C19/cpi-thang-10-tang-cao-nhat-trong-15-nam-qua. unlike Islam countries such as Israel or Saudi Arabia. GDP (Gross Domestic Product) in nine months of 2010 was estimated increasing by 6. of which it rose by 5. which is pretty high to middle income in Vietnam in comparison with lovely and lacey gift market.aspx?tabid=622&ItemID=10505 5 http://vneconomy.lse.gov. However.16% for this quarter. Economy: In term of economy. the income of Vietnamese people increase incessantly year by year from $403/person to $1080/person.co. In fact.
Through Facebook or Twitter. Therefore. this will save 1901 a lot of money in import tax. This mean instead of import high quality hot dog from Malaysia. especially in marketing and PR campaign which bring information to customer in a convenient and quick way. the 21st century is marked by the Information Technology‟s explosion with the Internet and Social Network. storage and transportation fees. all both positive and negative comment from customers and consumers about 1901 Hot Dogs products are spread away as a trustworthy information to other people. Furthermore. 1901 Hot Dogs with its unique products has opportunities to conquer the potential market of Vietnam. Moreover. As a result. especially when contemporary wise customers tend to goggle (using 19 . labor costs as well as some miscellaneous expenses. using advertising banner on popular websites and forums such as Zing forum. Secondly. It also help the company save a consider amount of money in customers‟ explored projects. 1901 Hot Dogs can attract potential customer by designing a lovely and informative website. For example. Technology: Within 20 years. the social network seems to be a potential place to spread the information effectively. 1901 can build a factory an produce same quality Hot Dogs right in Vietnam. there is a tremendous jump in manufacturing industry in Vietnam that transform from handmade manufacturing sector to mass industry in industrialization and modernization orientation.to care about religion elements in their products. Vietnamese young generation these days has an open view and they mostly feel comfortable to accept new international brand. With Vietnamese people. this development enables the companies to increase productivity effectively while reduce manufacturing time. Furthermore. the culture factors have influenced on every foreign firms which desire to operate in Vietnam because of its direct effects on customers buying behaviors. Internet appear as a effective tool in order to help 1901 Hot Dogs approach the customer. gifts are a special message between people and people and granting gifts has become a culture feature which has passed from generation to generation. In this case.
the development in IT brings not only opportunities to gain customer and build long – term relationships with them buy brings brand and customer closer. In modern marketing business. Therefore.Google to look up information) everything before deciding to buy product or not. determining a reasonable segmentation does not only help the company serve and achieve the customer‟s satisfactory better but also minimize unnecessary cost. but also threats when company have to maintain the quality of every unique product. all of 1901 Hot Dogs‟ competitor are choosing big place for their organization just for a few simple reasons. 2. Therefore. the first thing will come to his mid is this is a famous brand which is selling good stuff. if a customer walk by a big fast food store with crowded people. as the big investor from Malaysia to Vietnam. bigger place can serve more customer. For example. 20 . colorful decoration. the vital thing they have to care carefully about is the organizational based in order to plan targeting strategy in the most effective way Size of Organization: In fact. Second. 2.1.1 Business to business Segmentation 2. First. Segmentation Market Segmentation is defined by Philip Kotler as the subdividing of a market into distinct and increasingly homogeneous subgroups of customers. 1901 Hot Dogs should take great consideration in choosing area with high competition. where any subgroup can conceivably be selected as a target market to be met with a distinct marketing mix. and the price is affordable with high quality service. a big place can attract more potential customer. Moreover.1 Micro Segmentation based Once 1901 Hot Dogs desire to enter the market with Business and business segmentation. the segmentation plays important part on raising company competitive ability.
If the exchange occurs. Therefore. the interaction between the company and customer is still limited. In addition. the discount policy based on the number of products purchased can appeal the big partners when they have to wait until their order imported to Vietnam.2 Macro Segmentation based Buyer – seller relationship: The buyer and seller relationships mostly focus on how different as well as similar between 1901 Hot Dogs and its partners‟ value. As the report mentioned above. the company has to decide whether deal with the partner or not. especially super market are the main targets segmentation that company should consider. for example. or wait until enough products imported from Malaysia. the company will build a strong relationship that brings loyalty of customers in long term. Moreover. In other word. In the website of company. the discount and after – selling play an important part in keeping the relationship stays with the company. 2. 1901 Hot Dogs provide chance to customer to feedback toward products as well as services. the technology support the company perfectly in designing which is can be suitable with every organization customer‟s characteristic and demand. 1901 Hot Dogs will have to consider carefully about the number of products which is enough to provide the rest of market. the retailers. however. In business to business segmentation. By exploring and satisfying the customer value and demand. 21 . Policies: The marketing policy of 1901 Hot Dogs also has influence on segmentation. the supply of 1901 Hot Dogs does not match with the demand of customer in term of size. Buying decision process: In some case. a wholesale price is one of the attractive things to these supermarket. Product: In this case. this relationship bases on the understanding value between the two sides. Technology: The development of a technology brings 1901 Hot Dogs chance to maintain the relationships with existing business customer and build new with others.1.
ft.1 Geographic segmentation Geographic segmentation divides the market into different geographical units such as nations. 1901 also can increase the revenue by applying some promotions. center and southern regions. especially decision to buy something6. Because of this generous life style.2 Business to customer Segmentation 2. 6 http://lexicon.asp?t=decision_making-unit 22 . This may be help 1901 company reach to the highest interest. supermarkets. this price should not too high because Vietnamese income is still low. Thus. regions. We can divide Vietnam into two main markets according to life style criteria: Southern market and Northern market. Vietnamese who live in the South have an impartial life.2.com/term. 2. The Vietnamese market is divided into three main submarkets: northern. the culture and behaviorism of resident in every region have the different unique which also leads to difference in buying behavior. There are many differences between two areas. 1901 Hot Dogs can open some outlets in entertainment & cultural centres. states. They usually save their salary to other bigger purposes. However. or cities. So. 1901 can price products in Northern market lower a little bit versus Southern market. Decision making unit: Decision making unit or DMU is defined as a group of people in a company or organization involved in making an important decision. the voice of DMU in a company has a big influence and effect the organization partner in particular way. counties. As a result. Northern people tend to live simply. 1901 Hot Dogs should invest on explore the DMU‟s behavior in order to achieve and satisfy customer who are organizations. They usually spend all of their money in anything they like and don‟t care about how much they have purchased or what is the price of goods or services they like. etc in order to attract more customers and pricing products in high price. In comparison with the Southern people.
Although each combo of 1901 is about 45.2 Demographic segmentation Demographic segmentation divides the market into groups based on variables such as age. or responses to products. there are both internal and external factors that influence significant in the company‟s choice. With Vietnamese market. religion. income. The best solution for this problem is to segment market into two groups: employment and unemployment.3 Psychographic Segmentation Psychographic Segmentation divides buyers into different groups based on social class. gender. or personality traits. cheaper than products of competitors like KFC. 3.2. 23 . lifestyle. race. By this way. every companies have to determine where the suitable targeting strategy is. the requirement of each group can be complete easier. family size. Factors which influence the choice of targeting strategy for 1901 Hot Dogs In order to build the achieved both B2B and B2C segmentation. uses. education. family life cycle. The behavior segmentation can be chosen by some main factors: occasions. and nationality. There is a real that the income of Vietnamese is improving but it is still very hard for 1901 to compete with other famous brands. 2. benefits sought user status. and 1901 Hot Dogs is not a special expectations. Vietnamese customer has a preconception that eating outside for lunch or dinner usually cost more than what you can cook at home but the truth is eating out make you spend a big of money at one moment but with that same amount of money you can just buy the ingredients to cook at you. usage rate and loyalty status. attitudes. 2. It still high for student and people with low income. occupation.2. generation.4 Behavior Segmentation Behavior Segmentation divides buyers into groups based on their knowledge. BBQ.2. May be this is a problem of 1901 Hot Dogs.2.000 VND.
1 Internal factors As mentioned above. In Vietnam. Product variability: We can understand product variability is way that the firm can develop in order to attract many people from different groups of market.3. Hence. there are three internal factors that affect directly the choice of marketing strategy. it can focus on potential markets first in order to improving financial problem. if 1901 doesn‟t really confidence about finance of company. About financial resource problem. the quality of product have to keep at the same level or 24 . 1901 should have marketing strategies that are suitable with each market to increase the revenue of company. there are two potential markets that 1901 Hot Dogs should concentrate on is Hanoi capital and Ho Chi Minh city. It change rapidly. Of course. the taste of customer is not the same every time. the problem here is the professional qualification of Vietnamese labour is still limited. They are: company resource. After that 1901 should open more outlet to increase interest. For sure that 1901 Hot Dogs mustn‟t care about lack of human resource because labour resource of Vietnam is very profuse. companies have to have products with variety of styles and designs. habit. In addition. However. product life-cycle and product variability. 1901 Hot Dogs need to rent more staff in order to increase the effect of working or delegate Malaysian managers to check the quality of foods and services. buying behaviour. Normally. they usually focus on this two markets first. etc. there are 2 kinds of resource that 1901 Hot Dogs must consider when joining in Vietnam market are human resource and financial resource. However. 1901 Hot Dogs can invest more on marketing strategies. There are many differences between this two markets about life style. So. combine with giving supports for Vietnamese staffs. if companies want to be successful fast. in order to satisfy the needs and wants of customer perfectly. Therefore. Company resource: In terms of company resource.
In order growing more in Vietnam market. growth stage. In the scenario of 1901 Hot Dogs. Not all of new foods are suitable with Vietnamese taste. its products had been successfully in Malaysia. We can realize clearly that the requirements about one product will be declined after market reach to the full maturity.more after improving product. Please look at this chart below. Singapore and Indonesia for many years. products of 1901 have not appeared yet. In addition. However. we can identify that products of 1901 are in the stage of growing. 1901 still must change their foods continuously and create some new foods to make customer feel excited with the taste of new foods. foods of 1901 Hot Dogs are still one of the most favourite of many people. 1901 is famous for many kinds of delicious hot dogs that customers will have opportunities to choose the most appropriate meal. So. However. Product life-cycle: The final internal factors is product life-cycle. So. 1901 should focus on customer research and try to follow trends that change quickly in Vietnam market. This is the causes of low awareness of Vietnamese about 1901‟s foods. In Vietnam market. 1901 also need pay attention on loyal customers by maintaining signature products to claim the differences with other companies. This process includes four stages: Introduction stage. 25 . maturity stage and final is decline stage.
However.2 External factors Factors that come from outside affect the choice of marketing strategy include market variability and competitor‟s marketing strategies. their brand is well-known as the best fast food in Vietnam nowadays. Therefore. Because Vietnamese customers have different tastes and preference. there are two biggest competitors of 1901 are KFC and Lotteria. taking fully advantage of mass media. 1901 itself had got many successes when being established in Malaysia and expanded in Singapore and Indonesia. with the advantage of 1901 is hot dogs. 1901 have enough ability to compete other companies. In Vietnam market. 3. 1901 also can take advantages of unique products of 1901 which had made successes for 1901 to suppose for marketing maintains. a new kind of fast food in Vietnam market. combine effectively between advertising on TV.1901 Hot Dogs should have a suitable marketing strategy. They have many outlets in many populous areas with modern facilities. it is appropriate for 1901 to make some different marketing plan in order to satisfy each group of customer more perfectly. it is claimed that this is an important factor which can decide whether company can get interest or not. 1901 Hot Dogs must recognize exactly what are the requirements of each group of customer. Moreover. radio and newspaper and magazines. The brand of 1901 Hot Dogs had been allowed as an international brand. This result also means 1901 Hot Dogs will have to invest more money on advertising in order to be more popular in Vietnam market. In some way. 1901 also had its own advantages. In addition. However. Market variability: Market variability could be understand as the needs and wants of customer. These two brands had done business in Vietnam for a while so they have some specific advantages. it is quite the same with market segmentation. The problem of 1901 Hot Dogs is 26 . Competitor’s marketing strategies: Taking about competitor.
people will recognize that the conveniences of hot dogs in comparison with other fast foods and the revenue of 1901 Hot Dogs will be improved. 1901 Hot Dogs can also apply some sale off programmes to compete KFC and Lotteria more effectively. Gradually. hot dogs is a new kind of fast food in Vietnam market nowadays. 1901 should have marketing strategies that concentrate on drawing people who would like to eat hot dogs. In some situation. However.competitor‟s marketing strategies hold almost whole market in Vietnam and it seem to be hard for 1901 to run business in this market. 27 .
Buyer behavior From the perspective of customer both individual and organization. social. As the process below. customers waken up by stimulus under influence of culture. the buying process is expressed through SPR model. The model ends with the respond of customer. every company has to understand this process as well as the effect of each stage on marketing activities. Therefore. individual or business customer buy and use product with attitude and belief. Firstly. customer 28 . a process occurs to satisfy this stimulus which affected significantly by psychological and physiological factors. peer group and marketing mixture from the suppliers. and in the modern. In order to giving out an effective marketing plan with appropriate marketing activities.4. The SPR model Consumer behavior can be defined as the decision processes and acts of individuals involved in buying and using products or services. perceptions and feelings. Stimulus • Culture • Social Influences • Reference group • Marketing Mix Process • Psychological Factors • Physiological factors • Perceptions and feelings Response • Attitude and beliefs • Buying Behavior • Buying Practise Figure.
the an indispensable model of Maslow‟s pyramid of hierachial appears as the most reasonable explanation. there are many factors effect on the first stage. In order to understand needs and want. Problem Regconition Information search Evaluation of alternatives Purchase Decision Post purchase behavior Figure 3. Image 2. including personal factor and psychological factor. and each stage effect marketing activities in different way. In fact. he will find the way to solve the problems.buying process consists of five stages. Maslow’s Hierarchy of Needs 29 . Customer buying process Problem recognition: When a person recognize the he lack of something and needs to have it to fulfill his deprivation.
Information search: Normally. there still some factors effects on the final decision in the last minus. As a result. The 1901 Hot Dogs should concentrate on the after – purchase policy such as member cash or discount for loyal customer. they will seek information to solve out their problem in the most effective way. in some special occasions such as holidays or wedding season. Another proposal. Purchase decision: In this stage. the customer will put all their choices into an intangible scale to analyze them with each other in order to find out what is the best choice in term quality and prices. the customer will examine whether the product and service satisfy their need or not. Evaluation of alternatives: After seeking for information. they will come back and continue to use the service of 1901 Hot Dogs. This problems might depend on quality of services. beside traditional sources such as newspapers. financial problems or accidental mind changes Post purchase behavior: After purchasing. However. In recent year. the marketing activities also play a vital role beside the quality from itself. 30 . Internet with Google appears as the most convenient sources to looking up for multi . sale assistants. one advantage of using relationship with loyal customer is they can help the company with free marketing and PR to other people as viral marketing. the company should have some sale promotion policies to improve the sales. a small gift is not only make customer delighted but also a secretive marketing method indirectly. Furthermore. when people recognize what they need. If they feel satisfy. people decide whether the exchange occur or not. in this case.aspect and diversified information. For example.
hence. through exploring buyer behavior process. the key characteristics as well as elements of marketing concepts are identified and explained in the real case of Love Lace. From the marketing approach of this company. 31 . Finally. Conclusion In conclusion. Next. Then. In the next part. outline the factors influence on determined targeting strategy for the company. marking is defined in variety ways based on how each stage of marketing process important. the report answered the question about its effects on company marketing activities. the marketing process of 1901 Hot Dogs will be explored deeply in term of business environment influenced factors. the report proposed two appropriate segmentations that 1901 Hot Dogs should target. the report mentioned the benefits as well as the costs for the company. With the information provided in this report.C. the researcher hope that they will useful and value for 1901 Hot Dogs in order to plan marketing activities effectively and gain the heart of customers in Vietnam market.
asp?t=decision_making-unit [Accessed: November 8.businessdictionary. 2004. 2010.com/term. London. 2010. 2010 ] General Statistic Office. Prentice Hall Europe.com/definition/macro-environment. Internet sources Business Dictionary.aspx?tabid=622&ItemID=10505> [Accessed November 5. 2010] Financial Times Lexicon.gov. 2010] Customer concept : CONCEPTS OF CUSTOMER ORIENTATION . 2010. P 1999. Decision – making Unit [online] Available at: http://lexicon.businessdictionary. BPP Professional Education Kotler. CPI of October raises highest within recent 15 years [online] Available at: http://vneconomy.com/definition/viral-marketing. Marketing Degrees Course Book. 2010. Viral marketing definition [Online] Available at: http://www. Macro Environment [online] Available at http://www. Economic situation in the early 9 months of 2010 [online] Available at: http://www.gso.vn/2010102305201231P0C19/cpi-thang-10tang-cao-nhat-trong-15-nam-qua. Mandatory Unit 1. 2010.Reference Book sources: BPP Professional Education.vn/default.INTERNET BUSINESS MODEL FOR CUSTOMER-DRIVEN OUTPUT by Prof. 2010] Business Dictionary. 2010] VN Economy Newspaper.htm [Accessed: November 5. Peter Loos Market orientation: On Market Orientation: Development and empirical validation of two symmetric component measures of market orientation" by Hans Eibe Sørensen 32 . Dr. Britain. Principles of marketing.ft.html [Accessed: November 4.html [Accessed: November 6.
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