mkt202 services marketing management target company organizatio haidilao international holdings limited

ESSAY PURPOSE AND TABLE OF CONTENTS Building a marketing plan for a service business is extremely important, specifically in this essay, the business we mention is Haidilao Hotpot.. A –

FPT EDUCATION ORGANIZATION FPT UNIVERSITY CAN THO CITY BRANCH

GROUP ASSIGNMENT SUBJECT: MKT202 SERVICES MARKETING MANAGEMENT –

Project: Developing a marketing plan for a service business

TARGET COMPANY/ORGANIZATION: Haidilao International Holdings Limited

INSTRUCTORS: NGUYEN HAI NHAT PHONG

1 Phan Thien Nhan CS170533 NhanPTCS170533@fpt.edu.vn 2 Nguyen Hanh CS170995 HanhNCS170995@fpt.edu.vn 3 Vo Pham Kim Ngoc CE171319 NgocVPKCE171319@fpt.edu.v4 Lam Thi Quynh Nhu CS171173 NhuLTQCS171173@fpt.edu.vn 5 Dang Thi Ai Han CS171252 HanDTACS171252@fpt.edu.vn 6 Ho Duc Quang CS180630 QuangHDCS180630@fpt.edu.v

REQUIREMENTS OF THE GROUP ASSIGNMENT 1 Introduction about the service business:

1.1 Overview about the service business: Analyze the current status of the company's service products in the market

1.2 Identify target customers:

+ Define the target market as precisely as possible (e.g., age, gender, location, income level) + Research the need, interests and preferences of your target market (e.g., product service need, lifestyle and hobbies)

1.3 Market positioning strategy:

+ Identify the company's focus strategy (out of the four focus strategies: fully focused, market focused, service focused or unfocused)

+ Create the positioning map to identify the competitive strategy of the company 2 4Ps Strategy in service marketing:

2.1 Develop or describe service product(s): Identify the core product; supplementary services and delivery process of the selected company

2.2 Manage the distribution of service through marketing channels: Which marketing channels (physical/online channels), which intermediaries are included in each channel?

2.3 Pricing strategies for service products: Set the Objectives of Service Pricing, which pricing strategy: Cost-Based Pricing, Value-Based Pricing or Competition-Based Pricing is selected, and why?

2.4 Promotion strategies: Which communication channels are used? Design a typical communication message, etc

3 Customer Interface strategy (Additional 3 Ps: Process, Physical environment, and People): 3.1 Describe the delivery process of services marketing: Design and document the service processes using blueprinting

3.2 Design service physical environments to deliver better customer experience: Landscape layout, service space, color, physical equipment, staff uniform, music,

3.3 Strategies for managing people in service delivery: Explain how to select, enable and motivate the frontline for the service organization

4 Customer Relationship strategy: Strategies for building customer relationships and maintaining customer loyalty: Which strategies are used?

ESSAY PURPOSE AND TABLE OF CONTENTS

Building a marketing plan for a service business is extremely important, specifically in this essay, the business we mention is Haidilao Hotpot Helping to shape and promote the growth of businessesin the market is one of the key factors when building a marketing plan Help businesses focus on activities that deliver the most value and help achieve desired results, while helping to assess opportunities and risks, identify target customers, and develop appropriate marketing strategies

TABLE OF CONTENTS

A – INTRODUCTION TO SERVICE BUSINESS 5

I – BUSINESS OVERVIEW AIDILAO NTERNATIONAL OLDINGS IMITED: H I H L 5

1) Overview of Haidilao: 5

2) Brand Vision: 5

3) Products: 5

4) Haidilao brand in Vietnam: 6

II – DENTIFY TARGET CUSTOMERSI : 7

1) Primary consumer research: This study was conducted in a survey, the results of the survey can be found at: https://forms.gle/Ao5ArwUtqgLrGRRi9 7

2) Research on customer profiles: 11

III – MARKET POSITIONING STRATEGY: 13

1) Identify Haidilao Hotpot's focus strategy: 13

2) Competitive positioning chart: 14

B – MARKETING MIX 4P BY HAIDILAO HOTPOT 16

I HAIDILAO'S PRODUCT: – 16

1) Core Products: 16

2) Additional services: 16

II – HAIDILAO'S PLACE: 18

1) Direct (physical) distribution channel: 19

2) Indirect (online) distribution system: 20

III – HAIDILAO'S PRICE: 21

IV – PROMOTION'S HAIDILAO: 22

C – CUSTOMER INTERFACE STRATEGY 24

I PROCESS'S HAIDILAO: – 24

1) Process of picking up guests, serving during and after meals: 24

2) Blueprint Service Process: 25

II – PHYSICAL EVIDENCE'S HAIDILAO: 26

1) Landscape layout 26

2) Space and equipment 26

3) About employees 27

4) About Haidilao Menu 27

(See full and detailed Haidilao Menu at: https://haidilaovietnam.com/menu-haidilao/) 27

5) Employee uniforms 28

6) Music: 29

III – PEOPLE'S HAIDILAO: 29

1) Selection: 29

2) Activate the working environment: 30

3) Promotion for frontline services: 30

D – CUSTOMER RELATIONSHIP STRATEGY 31

I R – EALITY WILL MAKE CUSTOMERS HAPPY:STRATEGIES FOR CUSTOMERS HECK THE KITCHEN CAMERA CRIGHT AT THE TABLE 31

II LWAYS LISTEN – A & IMPROVE: 31

III – APPLYING TECHNOLOGY TO THE MEAL TASTING PROCESS TO INCREASE CUSTOMER EXPERIENCE: 31

A – INTRODUCTION TO SERVICE BUSINESS I – Business overview: Haidilao International Holdings Limited

1) Overview of Haidilao:

Haidilao is a hotpot restaurant chain established in 1994 in Jiayang City, Sichuan Province by Mr Zhang Yong In 1999, Haidilao opened the first Haidilao Xian Yalta store, specializing in selling the brand's hot pot and spice products Haidilao made the list of the 25 most popular brands and isthe only representative from China tied with Starbucks, McDonald's, KFC, Pizza Hut and Burger King Haidilao has opened 935 restaurant chains in China, Singapore, USA, Korea, Japan, CanadaUnited Kingdom, Malaysia, Vietnam, Indonesia and Australia

2) Brand Vision:

"Connecting through Chinese cuisine"

Haidilao's brand vision is not just about becoming a premier culinary restaurant with traditional and innovative Chinese Hotpot, but also about creating unique and distinctive culinary experiences for customers across the globe Haidilao is not only a place to enjoy a meal, it also shows the intersectionof Sino-Vietnamese culinary culture, and is also a place to create memories and memorable experiences

Creating a classy, warm and caring environment where every customer feels welcome and welcomeis also one of Haidilao's visions Haidilao constantly strives to improve service quality and innovate in the menu, in order to meet the diverse and diverse needs of customers

Besides, Haidilao is also active in building a vibrant social community where people can enjoy delicious meals together and create memorable memories Haidilao is not only a restaurant, but alsoan interesting and memorable destination in people's lives

3) Products:

Haidilao's main product is hot pot, with various types of hot pot and dipping sauces In addition, Haidilao also offers side dishes such as salads, noodles, rice, The special feature of the product aHaidilao is that the soup is very rich Sichuan Hot pot: Hot pot is the main product of Haidilao

Figurrrre 1: Mr Truong Dung (father of Hadilao) printed on the cover of Forbes and Haidilao magazines at Landmark 81

Haidilao has many different types of hot pot, including spicy oil hotpot, Thai hot pot, bone hotpot, sour cabbage hotpot, herbal hot pot, and mushrooms The hot pot broth at Haidilao is made from pork bones, chicken, beef and herbs, giving it a special flavor The menu is rich with fresh meats, seafood, vegetables Haidilao not only meets all dietary requirements, but also offers a unique and memorable culinary experience

Side dishes: In addition to hot pot and dipping sauce, Haidilao also offers side dishes such as salad, noodles, rice, Haidilao is famous for its free side dishes, such as egg noodles, rice, vegetables, Haidilao restaurant serves a variety of drinks, from beer, soft drinks, juices, bubble tea to wine The dessert is small but delicious, consisting of tea, fruit and 5-flavored Merino ice cream

4) Haidilao brand in Vietnam:

In Vietnam, Haidilao currently has 17 campuses with premises mainly in 3 big cities: Ho Chi Minh, Hanoi and Nha Trang Haidilao grilled hot pot is mostly located in commercial centers or luxury buildings in the central area Shows the position of this cult brand in the market Although originally from China, when introduced to Vietnam, the chefs of Haidilao Vietnam have made a delicate variation, combining Chinese Vietnamese flavors to create dishes that both retain the original –flavor and suit the taste of Vietnamese people

Business context:

The demand for restaurant dining is increasing, especially in big cities Vietnam's F&B market is highly competitive with the participation of many domestic and foreign brands The demand for dining at restaurants, especially hot pot restaurants, is increasing in Vietnam

In 2022, the revenue scale of the F&B industry reached nearly VND 615 trillion, an increase of 139% Particularly, the food market recorded revenue of VND 333.69 trillion, recovering near the level before the outbreak of the Covid-19 pandemic The COVID-19 pandemic has negatively affected the F&B industry in general and Haidilao in particular However, Haidilao quickly adapted to the new situation

Figurrrre 2: A Haidilao hot pot set taken by guests and Haidilao's vegetarian mushroom hotpot package

II – Identify target customers:

1) Primary consumer research: This study was conducted survey, the survey results can be found at: https://forms.gle/Ao5ArwUtqgLrGRRi9

a) Demographic factors:

Gender: according to the survey, the female gender accounts for 52.7%, the remaining gender is male with 47.3% Haidilao attracts customers of both genders, but looking at the chart we see that women seem to prefer Haidilao to men

Age: The age group from 18 to 25 accounted for 87.6%, followed by the age group from 25 to 35 accounting for 6% These 2 age groups are also the age groups that are most interested in Haidilaobecause the age group from 18 to 35 will be highly interactive and social, enjoy time with family, colleagues and friends

Work: 78.1% are students interested in Haidilao Next are those working in the service industry group accounting for 6.5% The rest are other industry groups

Figurrrre 3: Chart showing GENDER via Google Form survey

Figurrrre 4: Chart showing AGE via Google Form survey

Current income: Due to privacy issues, the survey's income has been hidden by 20.4% But if you divide this 20.4% evenly by 4, all 3 income groups under 2 million, from 5 to 10 million and over 10 million account for a very high percentage This suggests that almost everyone has the ability to enjoy a meal at Haidilao

b) Potential customers Based on age group:

Age group from 18 to 35: Mainly students, students and employees of industry groups The economy mainly comes from family allowances, part-time jobs and hard-wage jobs

Age group 35 and above: Mostly independent people with stable jobs and financial independence Based on personal experience with the brand:

showing the OCCUPATION GROUPthrough the Google Form survey

Figurrrre 6: Chart showing INCOME LEVEL through Google Form survey

The individual's experience with the brand is that customers already know the brand whether they have eaten it or not This is an important customer group because it is easy to create trust andcredibility

c) Characteristics of identifying potential customers:

Group 1 characteristics: Based on age group

Online Social Activity: The 18-35 age group is often a strong presence on social media platforms such as Instagram, Facebook, and TikTok They can share their culinary experience at Haidilao, post photos and videos of meals, contribute to the spread and development of word-of-mouth marketing for the brand

Seeking new experiences: they enjoy exploring and experiencing new things Haidilao offers a unique culinary experience with Hotpot hotpot and special dishes, matching their curiosity and enjoyment of new culinary experiences

Looking for social spaces: 18- to 35-year-olds often look for spaces to meet friends and family, and Haidilao provides a comfortable and enjoyable environment for them to enjoy their time together Haidilao's warm space and dedicated service make this age group feel comfortable and happy

Figurrrre 7: More than 95% of people know Haidilao

Menu flexibility and variety: Diversity in tastes and culinary preferences is an important factor to attract the 18 to 35 age group Haidilao offers a wide range of ingredients and dishes for customers to choose from, from meat, seafood, vegetables to noodles, mushrooms and special soups This reflects the diversity and flexibility in tastes of this age group

Group 2 characteristics: Based on personal experience with brands (whether eaten or not):

We believe that, whether customers eat Haidilao or not, if customers know about Haidilao, this is also an opportunity to convince them to come and enjoy Haidilao The fact that they know Haidilao is a successful business at the beginning, so why not take the next steps to get customers to come to the restaurant to experience the real thing:

Regularly search for information about delicious hot pot restaurants: Haidilao's potential customers often refer to information on social networks, review websites, or ask relatives and friends Tendency to make reservations before going to restaurants: Haidilao is often crowded, especially on weekends or holidays, so customers often make reservations in advance to avoid waiting Willing to pay a high price for good food quality and service: Haidilao's potential customers are willing to pay a higher price for a good experience

Figure 8:::: Food safety and good service are important determinants of customers

Return to the restaurant often if you have a good experience: Haidilao has a high return rate due tosatisfaction with the quality of food and service

2) Research on customer profiles: a) Customer segmentation:

Haidilao attracts a broad range of customer segments, from young people who love innovative food and unique culinary experiences to families who want an interactive and exciting meal This group of customers can include both lovers of traditional Chinese food and those who want to discover new flavors For Haidilao, understanding each of these segments is important to develop the right marketing and service strategy

Big cities: The demand for high-end dining in big cities is higher, Haidilao focuses on developing in this area

Tourist area: Haidilao attracts international tourists by its famous brand and attentive service b) Eating habits:

Haidilao customers often have eating habits that reflect diversity and creativity in taste They like to enjoy a variety of ingredients and dishes in a hot pot meal, from beef, pork, shrimp, to vegetables and mushrooms This eating habit reflects Haidilao's customers' creativity and enjoyment in discovering new flavors and creating unique culinary experiences

Frequency: Customers often go to eat hot pot, especially on weekends and Tet holidays Some customers use online ordering services or home delivery

Food: Hot pot is the most popular dish in Haidilao Customers often choose a variety of hot pots such as Sichuan spicy hot pot, collagen hot pot, mushroom hot pot , The side dishes are diverse and rich, meeting the diverse needs of customers

Service: Customers appreciate Haidilao's attentive and dedicated service Some outstanding services such as: free snacks, manicure, children's play area ,

c) Customer psychology:

Haidilao customers often have a relaxed and excited mentality when coming to the restaurant The warm environment, luxurious décor and dedicated service of the staff help create a fun and comfortable space for customers They feel happy and relaxed while enjoying a meal with friends and family in Haidilao

Desire to be respected and cared for: Customers expect attentive, dedicated service and feel respect from employees

Looking for convenience: Customers prefer the convenience of booking, paying and using services at restaurants

Customers often share their experiences at Haidilao on social media and other communication channels

d) Needs and preferences:

Haidilao customers often have diverse needs and preferences when coming to restaurants Some customers are looking for a traditional and classic Chinese culinary experience, while others want to explore and experiment with new and innovative dishes For Haidilao, meeting the diverse needs and preferences of customers is crucial to create a unique culinary experience and best meet the wishes of customers

Food quality: Haidilao customers care about the quality of the dish, especially the freshness of the ingredients

Premium service: Customers want to experience attentive, dedicated service and have good memories at the restaurant

Cozy space: Haidilao customers prefer a cozy, comfortable space so that they can enjoy meals withfamily and friends

Reasonable price: Customers are willing to pay for high-quality food and service, but still want reasonable prices

III – Market positioning strategy:

1) Identify Haidilao Hotpot's focus strategy:

Haidilao Hotpot has gained a reputation for adopting a strategy of strong focus on customer service, especially in the culinary sector In the context of an increasingly competitive food service industry, Haidilao Hotpot has succeeded in building a solid brand image through its focus on providing excellent culinary experience and dedicated customer service.

Outstanding Customer Service: Haidilao is renowned for its attentive and dedicated customer service that goes beyond the industry standard They offer many free services suchas:

Well-trained staff: Haidilao invests heavily in employee training so that they can provide

interact with customers, as well as encouraged to develop themselves and contribute to theservice improvement process.

Efficient operation process: Haidilao applies methodical operating procedures to ensure

to improve customer experience.

Focus on customer experience: Haidilao Hotpot's focus strategy is not merely about providing delicious and varied dishes on the menu, but also about creating an exceptional culinary space and customer service experience as best as possible Haidilao is always

looking for ways to improve customer experience by listening to feedback and launching new initiatives

Highly competitive food service industry: The food service industry is increasingly competitive, therefore, Haidilao needs to make a difference to attract and retain customers Customer service is important: Good customer service can create customer satisfaction and engagement, helping them come back often and recommend restaurants to others Haidilao has the potential to invest in services: Haidilao is a large company with ample financial resources, allowing them to invest in training employees, improving operating processes and developing new services

The service-focused strategy has helped Haidilao Hotpot become one of the most successful hot pot brands in the world Haidilao is a prime example of the importance of customer service in the food service industry.

Besides, Haidilao also applies some elements of a market-focused strategy, such as:

High-end brand positioning: Haidilao targets the high-end customer segment, ready to pay for high-quality services

Market expansion: Haidilao is expanding its market to other countries around the world However, customer service remains the most important element of Haidilao's strategy.

2) Competitive positioning chart:

Figurrrre 10:::: Map of Haidilao's competitive position with rivals

Haidilao location: Haidilao is located in a premium location - premium service on a location map

· High: Haidilao is positioned as a high-ehot pot brand with a higher price than tgeneral market.

mass customer segment.

its excellent, attentive and dedicatcustomer service.

food quality, service is only at a basic levCompetitors:

Final Thoughts Haidilao has successfully positioned itself as a premium hot pot brand with outstanding customer service To maintain its competitive position, Haidilao needs to continue to improve service quality, develop new dishes and expand its market to other countries

B – MARKETING MIX 4P BY HAIDILAO HOTPOT I – HAIDILAO’S PRODUCT:

1) Core Products:

Haidilao offers a wide range of hot pot broths, varied with eight different types including Thai hot pot, sweet and sour hot pot, mushroom hotpot, tomato hotpot, bone hotpot, spicy oil hot pot and herbal hot pot This offers a wide selection for customers, from traditional hot pot dishes to special flavors and to suit local tastes In the list of hotpot options of Haidilao, there are four classic varieties that are highly appreciated for their popularity and appeal, especially with Southeast Asian flavors, attracting a large number of consumers in Vietnam: spicy hot pot, tomato hotpot, spicy and sour hot pot and bone stew hotpot with mushrooms One of

the reasons is because the broth of these hot pots is designed to suit the taste of Vietnamese people, with a delicate combination of sour and spicy Among them, tomato sauce is one of the most popular choices, with a moderately sour and spicy taste, easy to eat and suitable for the majority of Vietnamese

Besides, Haidilao also offers a variety of hot pot toppings, including meat, vegetables and mushrooms, but it also has dipping sauces with available recipes, customers can make their own recipes, can also ask the help of staff or make their own dipping sauces to suit their taste and preferences individual customers

2) Additional services:

Figurrrre 11:::: There are more than 10 types of Haidilao hot pot broth

Figurrrre 12:::: Haidilao's 4-compartment pouch One of the restaurant's best-selling hot pot dishes