final exam principles of marketing

By the end of June 30, 2020 , Haidilao has opened 935 chain restaurants in China, Singapore, Vietnam… Zhang Yong In 1994, Haidilao HotPot Restaurant was founded inSichuan Province Haid

VIETNAM NATIONAL UNIVERSITY UNIVERSITY OF ECONOMICS AND BUSINESS SCHOOL OF BUSINESS ADMINISTRATION

Class code : BSA2002-E*1

Hanoi, 29/7/2023 INDEX

A.INTRODUCTION 4

1 BRAND STORY 4

2 BRAND VISION 6

3 BRAND PHILOSOPHY 6

4 BRAND SERVICE 6

B MARKETING ENVIRONMENT 7

I MICRO ENVIRONMENT 7

1.COMPETITORS 7

2 SUPPLIERS 7

3 CUSTOMERS 8

4 MARKETING INTERMEDIARIES 9

5 PUBLIC 9

II MACRO ENVIRONMENT 10

1 POLITICAL 10

2 ECONOMIC 11

3 SOCIAL&CULTURE 12

4 TECHNOLOGY 13

III.SWOT 13

1.STRENTHS 13

2.WEAKNESSES 15

3.OPPORTUNITIES 15

4.THREATS 16

C.SEGMENTATION – TAGETING - POSITIONING 16

1 SEGMENTATION 16

2 TARGETING 16

3 POSITIONING 17

D CUSTOMER’S BEHAVIOR 17

E CREATE MARKETING MIX STRATEGY 18

1 PRODUCT 18

2 PRICE 19

3 PLACE 20

4 PROMOTION 20

F.REFERENCES 22

1.BRAND STORY

The brand Haidilao was founded in 1994 by Zhang Yong Haidilao is a smallrestaurant selling Sichuan spicy hot pot dishes With over 20 years of development,Haidilao has become a world-renowned catering enterprise By the end of June 30,

2020 , Haidilao has opened 935 chain restaurants in China, Singapore, Vietnam…

Zhang Yong In 1994, Haidilao HotPot Restaurant was founded in

Sichuan Province

Haidilao focuses on how to serve customers to make the best impression everytime they come to the restaurant: listen, care about what customers need toimprove quality In this way, Haidilao brand has become an international brandand is the only Chinese brand in the ranking of 25 famous brands globally.Besides, Haidilao also tops YouGov’s 2022 Dining and QSR rankings in China

Over the years, Haidilao has withstood the challenges of the market as well as

customers, and has successfully forged a quality hot pot brand which has earned areputation for itself Haidilao combines many kinds of characteristics of hot pot in

many places of China As a large-scale chain catering enterprise with operations allover the world, Haidilao adheres to integrity in business It gives the highestpriority to continuously improving the quality and safety of its food products,providing more thoughtful services to its customers while delivering healthier,safer and more nutritious food.

The first feature of the product is the extremely strong Sichuan hotpot Haidilao'smarketing strategy does not stop at the promotion of these hot pot sauces to diners.Diners can unleash their creativity in making hot pot sauce according to their owntaste This is also one of the experiences that attracts many diners to come back forthe next time

The dipping sauce counter is arranged in an open space Here, diners can maketheir own according to their personal preferences in addition to the availablerecipes to suit their preferences With the motto of putting customer experiencefirst, Haidilao staff will be ready to advise on the right recipe for customers whohave difficulties at this stage And coming to Haidilao, the impressive noodledance is a special experience that customers should not miss when coming here

2 BRAND VISION

“Communication is a must in establishing trust among people and Chinese hot pot

is a perfect choice for enhancing social networking at table Haidilao is committed

to encouraging more people to chat with each other and enjoy their food at table,and creating a kind of table culture favored by young people around the world.”

3 BRAND PHILOSOPHY

Haidilao always commits to the mission of creating happy hot pot time andspreads healthy hot pot culture to foodies all over the world through selectedproducts and innovative services As a large restaurant chain with global outreach,following the business principle of integrity, Haidilao seeks to provide consumerswith more thoughtful services and healthier, safer and better food with morenutrition, while enhancing the stability and safety of food quality.”

4 BRAND SERVICE

Taking customer experience as their top priority, Haidilao always providesinnovative and pleasant services to their customers All the personalized servicesoffered by our restaurants are derived from the innovative ideas of our staff Thesewarm and personalized services turn every meal into a happy experience

Haidilao always knows how to please customers and understand customerinsights All Haidilao employees are trained to satisfy any needs of customers Youwill easily see trending customer tik tok videos with viral Haidilao staff Beingencouraged makes many people come here to experience such a dedicated servicestyle Therefore, what can be learned here is to always focus on the quality of thefood, take care of customers, and bring the best experience to customers whencoming here From then on, customers will always mention Haidilao even thoughHaidilao doesn't spend that advertising cost

Haidilao staff

- Global Chinese Cuisine Market - Haidilao: the Clear Leader in Overseasexpansion:

+ In order to take advantage of the growth of the global Chinese cuisinemarket, a number of China-based restaurant groups have expanded overseas

in the past few years

+ The five largest players only held a 0.6% share of the global market in terms

of 2017 revenue Haidilao was the largest Chinese cuisine company globally

in 2015, 2016, and 2017 in terms of revenue

2 SUPPLIERS

- Haidilao primarily procure food ingredients that do not require processingfrom third-party suppliers and processed Ingredients from Shuhai Group

- Decoration materials, renovation services and decoration projectmanagement services from Shuyun DongFang.

- Soup base and instant hot pot products from Yihai Group

- Lamb products from Jarud Qi Haidilao

- Human resources management and consulting services from WeihaiConsulting

=> Haidilao generally has more than two qualified suppliers for each type of majorfood ingredient to reduce reliance on a single supplier Through our years ofoperations, it has identified and established stable business relationships with highquality suppliers for our major food ingredients → Suppliers are not tooconcentrated

3 CUSTOMERS

the most popular dine-out option among Chinese cuisine brands

- Dining experience: Haidilao ranked first in terms of dining experience

among Chinese cuisine restaurant brands: Approximately 99.3% ofparticipants who have dined at Haidilao left satisfied, among which over50% of participants were very satisfied with the dining experience

major Chinese cuisine brands

- Repeat guests: 68.3% of the participants who have dined at Haidilao visit at

least once every month and 98.2% of the participants who have dined atHaidilao would visit again

4 MARKETING INTERMEDIARIES

- Haidilao is known as a chain of famous hot pot restaurants around the world andcurrently has 466 directly managed non-franchise stores with a growth rate of 5-7stores opening each year In Vietnam, Haidilao currently has 14 facilities withpremises mainly in 2 big cities, Ho Chi Minh and Hanoi Haidilao grills are mostlylocated in commercial centers or luxury buildings in the central area

- Hadilao distributes services through 2 channels:

+ Directly: Haidilao’s restaurant => customers come to the counter to order,order via machine => experience the service

+ Indirect: customers order via website, fanpage => shipper receive goods anddeliver to customers

=> Haidilao is a direct service distributor without intermediaries in the form offranchising

+ In 2017, Haidilao earned a revenue of 10.76 billion yuan ($1.57 billion), up35.9 percent from the year prior, while its revenue grew by 7.5 percent to1.19 billion yuan A breakdown of Haidilao’s revenue in 2017 shows that97.6 percent of its total revenue came from its restaurants business.

in product advertising Create a trend, not a trend: Haidilao smartlyencourages its employees to be creative by rewarding employees withcreative suggestions for the restaurant

II.MACRO ENVIRONMENT

1 POLITICAL

● Government stability

- No imminent threats from terrorists and military issues in existing markets

- Political stability in existing markets: China, HongKong, Malaysia,Singapore, VietNam, … → support business’s growth expansion

- China has good records of consistently adhering to international treaties,specifically WTO’s regulations on Restaurant Industry

● Tax policies

- Taxation policies – Over the last two decades Haidilao Intl has benefittedfrom lower taxation policies throughout the western hemisphere It hasresulted in high profits and increasing spending in the research and

development The increasing inequality in Hong Kong can lead to changes

in the taxation policies Secondly local governments are also looking intoRestaurants specific taxation policies to contain the carbon footprint of theServices sector

● Trade blocs

- China maintains 17 Free Trade Agreements (FTAs) and is implementingadditional 8 FTAs→ Business can lower resource costs, increase supply oftalented labor, and benefit from gaining advanced technology andknowledge from foreign experts

2 ECONOMIC

● GDP and rate of economic growth

- GDP growth rate signals growth in demand -> Business leverages this trend

by expanding its product range and targeting new customers (by identifyingchanges in consumption patterns -> emerging value proposition)

● Inflation Rate

- High inflation can cause an increase in prices (→ lose brand loyalty andconstant endeavors to manage costs.) and decrease in disposable income (→lower purchasing power)

● Employment rate

- If the employment rate is high then it will impact Haidilao's strategies intwo ways – it will provide enough customers for Haidilao's products, andsecondly it will make it expensive for Haidilao to hire talented and skillfulemployees

=> Vietnam is a signatory to the most free trade agreements in the world, reducing

and eliminating tariff barriers, as well as non-tariff barriers, towards theestablishment of a free trade area This is a good sign because it has ensured equalaccess to resources between state-owned and private enterprises, between domesticand foreign-invested enterprises, removing market barriers The corporate cateringbusiness group has many brands such as Haidilao, Jollibee, Pizza Hut, …so there isalso a chance to increase competitiveness thanks to easier access to resources The economy has grown positively since 2013 – especially the structuraltransformation of the service sector, which has developed impressively People inHaidilao's target market have an increased economic life, so they are moreinterested in enjoying services, especially food services Besides, the integrated

economy makes people have the need to exchange jobs, meet partners, officemeetings,., which increases the demand for food services at restaurants likeHaidilao and increases profit from the market.

3 SOCIAL & CULTURE

a) Social

● Demographic

- Gender roles, power structure in society, portion of youngsters, birth rates…

- A higher portion of the younger population is beneficial for Haidilao as it will allow the company a larger consumer population base

● Attitude towards Health & Safety

- The attitude towards health and safety is often reflected in the quality of theproducts and cost structures of manufacturing processes Haidilao hasstringent norms for health and safety norms so in emerging economies

● Level of Social Concerns & Awareness in Society

- Higher levels of social concerns in society often result in higher consumeractivism and pressure from non-governmental organizations, & pressuregroups

b) Culture

Hot pot is a familiar dish for Asians in general Hotpot brings the spirit ofreunion, a gathering and warm atmosphere Eating hot pot has become a habit ofour Vietnamese people, so when having family reunions, hotpot is one of the topchoices

With the typical Chinese hotpot flavor, especially Sichuan spicy hotpot, Haidilaohas brought a new experience, different from the traditional hot pot in Vietnam.Thus, when enjoying hot pot at Haidilao, customers will receive the values andquintessence of the new culinary culture

4 TECHNOLOGY

With the widespread explosion of the influence that technology has on all aspects

of life, the Internet and electronic devices have become an indispensable part,covered by all ages With the vital importance of the Internet in modern life,restaurants need to know how to use all the benefits that the Internet brings toserve their business strategies

In addition, the dominance of social networking sites in giving and spreadinginformation is something that everyone can see Most of the age groups use socialnetworks as a habit in daily life This also poses a problem for the restaurant'smarketing strategy in the selection of promotion channels appropriate to the targetmarket However, the development of technology not only brings opportunities,but also when technology develops, people are different in terms of distance, butstill easily reach each other, the need for face-to-face meetings at restaurants isdecreased, significantly affecting the target customer behavior and the revenue ofHaidilao restaurant

Haidilao has a human resources organization with an employee turnover rate of10%, while the turnover rate at management level here is 0% To make the wholesystem ready for operation, right from the staff training stage, let them be ready to

dedicate, serve your customers with 100% enthusiasm with clear policy, trained.

At Haidilao, there are support areas to help make the customer experience morecomplete such as guest waiting area, nail salon area, children's play area…

Sharing with the media, the founder of Haidilao said: "I am a country person and

my opinion is that if I receive money without taking care of the heat, it is nodifferent from a scam." They are aware of the waiting time of diners if too longwill affect the customer experience There is nothing worse than a hungry personwaiting

Any employee is fully equipped with headphones, ordered by tablet system Arestaurant has many cashier counters, an average of 10-15 tables will put 1 counter.

In the F&B industry, slow checkout processes are often the reason customers givepoor service scores Therefore, investing in a payment system will reduce theinhibitions for customers Highly appreciate this part of Haidilao, because it isnormal for 4.0 technology to be used today, but using it effectively is anothermatter

difficult to expand to office customers

Singapore officials, during a routine inspection of a local Haidilao store,discovered that a store employee was not wearing gloves when handlingfood management

market becomes saturated or experiences a recession

- Vulnerable to supply chain disruptions and raw material price fluctuations: due to a centralized purchasing system

3 OPPORTUNITIES

- Potential F&B market: According to experts' forecasts, by 2023, the

revenue of the F&B industry may double, reaching 408 billion USD andcontinue to grow further as the middle class in Vietnamese society isincreasing

and 30 currently accounts for about 25% of the country's total population.With a large young population, resources to develop and bring creativity to