Global Marketing course. Mc Donald's case presentation Presented 11.2014

1. International Marketing
McDonald’s Marketing Strategies in Vietnam

3. Vietnam Fast foods Market Analysis
McDonald’s Marketing Strategies in Vietnam
Discussions

4. Vietnam Fast foods
Market Analysis
• Overview
• PEST Analysis

7. • Achieving higher political stability and absence of violence
• Open door policies: facilitate enterprises , business,
investor all over the world.
•  Right moment for McDonald’s to enter Vietnam

8. • Vietnam has emerged as the most recent of Southeast
Asia's economic success stories, posting the highest GDP
growth throughout the region, and third in global average
annual GDP growth, behind China and India (Lehmann,
2010)
• Low Labor cost
• Vietnam joined the WTO in January 2007 give a major
boost to Vietnam's export led economy and should spur on
the country's economic liberalizing reforms

9. • Young population: population of around 90 million people,
with 70% under the age of 35 (Ahmad, 2010)
• Young and dynamic people easily accept and adapt new
trends from western countries
• More pressure for time fast food has been playing an
essential role in modern and busy life
–

10. • Internet users had reached 24 million in 2010, which accounted for
27.1% of the population of 86 million in 2010
• Rich in raw material: chicken, pork, beef, vegetable, etc.
 Vietnam is a potential but challenging market for McDonald’s to
penetrate.

11. McDonald’s Marketing
Strategies in Vietnam
• Worldwide Strategies
• STP
• McDonald’s Vietnam Marketing Mix

12. Standardization
 Foster customer
awareness of the brand
 Save cost considerably
French fries: McDonald’s
signature

13. Adaptation
 Satisfy different customers’ preferences and needs
 Improve sales in specific regions

15. • Adapt prices according to the country and the location
of the stores within the country
• Criteria:
- Supply and demand
- Evaluation of the competition
- Production cost
- Quality of ingredients
• Offer variety of combos
=> Lower price and increase sales

16. • Over 35,000 restaurants in
nearly 120 countries
• Aggressive and strategic
expansion
• Location requirements:
- 50,000 square feet
- At the corner with visible signs
from two major streets/near a
major intersection with traffic
signals
- Ample parking space
- Adapted for mall, airport and
some downtown locations.

17. Brand globally
- Same brand name with
the golden arches logo
- Partner with Walt Disney
=> universal strategy
- Sponsor World Cup since
1994 => reached
approximately billions of
people

19. • Advertise globally
- Advertising: Utilize
different ways and
channels to deliver the
message
- Public relations: Different
tactics in customer care

20. • Staff locally and promote from
within => understand both the
corporate and local cultures
• Recruitment: Look for right
attitude rather than technical
ability
• Training:
- 22 languages
- Standard practice worldwide
while adapting the content and
teaching methods to each
region

21. –
• Segmented based on demographic factors, particularly ages
• Target:
- Children and families
- Consumers with cars: medium/high income
• Position: a high-class fast food chain for high-class
consumers

22. Standardized meals
BigMac- French Fries – Coca Cola
Standardized ingredients
Australia
Thailand
Atlantic and Pacific Ocean
Russet Burbank potatoes

23. Standardized Services
• Drive-Thru
• 24/24 service

24. Vegetables from Dalat
(lettuces, tomatoes,
onions)
1st to introduce McPork
1st to introduce Hot Tea
ADAPTATION

25. ADAPTATION
“McDonald’s brings us the strictest
requirements ever. They have their own
standards from the color of the buns, the
burgers’ thickness, and even the sesame
amount on the products. We have to
import new baking equipments and tools
to meet high standards from McDonald’s”
Mr. Kao Sieu Luc, CEO of ABC Bakery

26. Relatively high prices (compared to KFC, Lotteria, Jollibee and Burger King)
Big Mac Index:
•85.000 VND (about 4 U.S dollars)
•Lower than the US index
•Higher than indexes in other Southeast
Asian countries (Singapore, Indonesia,
Philippines, Malaysia)

27. 1st Restaurant: Dien Bien Phu Street, District 1.
•Total area: 3000 m2
•In-house: 1300 m2
•Seating capacity: 350
•Drive-Thru service.
Largest fast food
restaurant in Vietnam
until now

28. 2nd Restaurant: Ben Thanh, HCM city
•Beside 23/9 Park in city center
•May 2014
•Total area: 260m2
•Seating capacity: 260 indoor, 80 outdoor
•“To Go” counter
•Conveyor belts: show food
transportation process directly to
customers

29. 3rd Restaurant: Phu Lam, HCM city
•August 2014
•1600m2; in-door: 800m2
•2 floors: 280seats (including 230 in-doors)
•Drive Thru, Play Place,
•2 private room for parties
•Can go through Galaxy Cinema

30. Advertising
Zalo and modern Social media channels
Sales Promotion
Various sales promotion campaigns and
discount programs,
Public Relation
Call upon the public - especially the youth
- to follow the active and healthy lifestyles.
The Iconic character: Ronald
One of the most recognizable characters in
the world, along with Santa Claus.

31. •Workforce diversity: Mc Family
•Standardized training
•Hired foreign staffs and foreign managers

32. Discussions
• Advantages
• Drawbacks
• Comparisons
• Recommendations

33. STANDARDIZATION

34. Locating Strategy
Serve hundred customers at the
same time.
Promotional Campaign
seem to run effectively.
Rating: 4.3 stars
ADVANTAGES

35. Moderately Effective pricing Strategies
• Target: middle and high-income customers;
• For middle-income customers: relatively high price
• High income customers: seem not to prefer fast food
Drive Thru
• most customers go on motorcycles, while car-driving customers seem not prefer fast foods.
• Customers: less than 25 years old  relatively low income and disloyalty to products
• Inconsistence in the process: take around 15 minutes for one customer arrival
Service Quality
• Customer complaints: unsuitable music, slow services; orders missed, sauces charged
• Negative staff attitude on 1st restaurant

36. 3 worldwide problems
Bad financial performance: revenues and stock prices
have not increased through at least 13 months
Healthy issue: junk foods, intensive farming and
production methods…
Labor force issues: high turnover rate, worker strikes

37. • Child obesity rate: 20%
• Main customer target:
children => unethical
• Solution: clear about the
nutrition and calorie counts
of their products
• Recommendation: add green
dishes to the menu

40. • Strong brand name,
image and reputation
• Specialized training
for managers
• Unique features:
drive-through and
24/7 service

43. • Search for restaurants, order
and pay through cell phones.
• Provide information: nutritional
values, discount programs
 Create better customer loyalty,
increased purchase frequency,
and faster line throughput

44. Green Menu

47. Thank you for
listening!