There are currently 14 Haidilao hot pot restaurants in Vietnam as of now.Over the years, Haidilao has overcome the challenges of the market as well as customers and has successfully buil
Executive summary
Haidilao is a famous hot pot brand from China In this report, Group 3 will examine Haidilao's service model in Vietnam in this research including The situation of Haidilao services such as the context of the F&B market in Vietnam, SWOT analysis, and PESTLE analysis In addition, our group also researched Haidilao's consumers using primary research to draw out key insights, challenges, and problems that Haidilao is facing Analyzing and evaluating the 7PS strategy is also a very important step using the service flower model And finally, there are proposals made for Haidilao.
Service organization’s Introduction
Logo
The letter “HI” on Haidilao's logo stands for “Hai Di Lao” which is the name of the brand The word “HI” also symbolizes a warm welcome to diners every time they come to dine and leave with gratitude from the heart even though the food is not to their taste.
Brand History
Haidilao brand was established in 1994 in Jianyang city, Sichuan province With its father, Mr Truong Dung, serving directly across major provinces, integrating the characteristics of hot pot from all over the world.
In 1999 the restaurant network expanded from Sichuan province to Xi'an, Shanxi.
In 2002 the restaurant opened in Zhengzhou, Henan province.
In 2004, opened a restaurant in Beijing.
In 2006, he opened a restaurant in Shanghai.
2012 marked Haidilao's global expansion with its first foreign restaurant opening in Clarke Quay, Singapore.
In 2013, opening a restaurant in Los Angeles, USA, marked Haidilao's entry into the US market.
In 2014, Haidilao restaurant in Seoul, Korea was opened, marking its entry into the Korean market.
In 2015, the restaurant opened in Japan.
In 2017, Haidilao Restaurant opened in Hong Kong, China.
In 2019, Haidilao continued to develop its global restaurant network mainly in Asian, European, American and Australian markets.
With more than 20 years of development, Haidilao International Holding Ltd (Limited company) has become a world-famous food service provider As of June 30,
2020, Haidilao has opened 935 restaurant chains in China, Singapore, US, Korea, Japan, Canada, UK, Malaysia, Vietnam, Indonesia and Australia There are currently
14 Haidilao hot pot restaurants in Vietnam as of now.
Over the years, Haidilao has overcome the challenges of the market as well as customers and has successfully built a quality hot pot brand, creating its own reputation Haidilao combines hot pot specialties from many places in China As a large-scale chain food service enterprise with operations worldwide, Haidilao adheres to business integrity The company places the highest priority on continuously improving the quality and safety of food products, providing more attentive services to customers while providing healthier, safer and more nutritious.
Mission
Brand philosophy: Haidilao is always committed to the mission of creating fun times enjoying Hot Pot and spreading healthy Hot Pot culture to gourmets around the world through selected products and creative service As a large restaurant chain with global reach, following the principle of business integrity, Haidilao seeks to provide consumers with more attentive services and healthier, safer and better food with more nutrition, while improving the stability and safety of food quality.
Brand vision: Communication is a must to build trust between people and Chinese
Hot Pot is a perfect choice to enhance social networking at the dining table Haidilao is committed to encouraging more people to talk to each other and enjoy food at the table, while creating a type of table culture that is popular with young people around the world.
Characteristic service: Taking customer experience as the top priority, Haidilao always provides innovative and pleasant services to customers All the personalized
4 services provided by Haidilao's restaurants originate from the creative ideas of the staff These warm and personalized services turn every meal into one.
Products
Haidilao's main product is hot pot, with many different types of hot pot sauces and dips In addition, Haidilao also provides side dishes such as salads, noodles, rice, etc.
Hot pot: Hot pot is Haidilao's main product Haidilao has many different types of hotpot, including spicy oil hotpot, Thai hotpot, bone hotpot, sour cabbage hotpot, herbal hotpot and mushroom hotpot.
Dips: Haidilao offers a variety of dips, including beef, pork, chicken, seafood, vegetables, and more Haidilao is famous for its Haidilao beef, marinated and thinly sliced according to Cantonese flavors.
Side dishes: In addition to hot pot and dip, Haidilao also offers side dishes such as salad, noodles, rice, etc Haidilao is famous for its free side dishes, such as egg noodles, rice, vegetables, and more.
Achievements
2008: Haidilao was awarded the title of "Chinese Famous Hot Pot" by CCA.
2011: Haidilao ranked 20th in the CCA list of "China's top 100 food service enterprises in 2010".
2011: The “Haidilao” brand was certified as a “National Famous Brand” by the Trademark Office of the State Administration of Industry and Commerce.
2017: Haidilao welcomed more than 100 million customers and signed contracts with nearly 20 foreign restaurants
Service Organization’s Situation Analysis
Business/company Context
In 2019, Vietnam is in the top 10 most attractive destinations in Asia when talking about F&B, according to IBM's assessment In 2020, despite the Covid-
19 pandemic, Vietnam's total revenue of food and beverage products reached 975.867 billion USD, an increase of 3.8% over the same period and accounting for 15.8% of total GDP.
According to market research company BMI, Vietnam has become one of the most attractive F&B markets globally According to statistics, the F&B industry has contributed 15.8% to the total national GDP (2021) Total spending on food and beverages accounts for the highest proportion at about 35% of spending.
In 2022, Vietnam's F&B market is experiencing a significant recovery after theCovid-19 pandemic The scale of F&B industry revenue in 2022 will reach nearly 610 trillion VND, an increase of 139% The eating out market alone recorded a revenue of 333.69 trillion VND, recovering close to the milestone before the Covid-19 pandemic broke out.
SWOT Analysis
Haidilao is known for its high-quality hotpot dining experience and exceptional customer service It has built a strong and positive brand reputation, both in China and internationally.
Haidilao serves 6 typical hotpots including: Thai hotpot, spicy oil hotpot, bone hotpot, mushroom hotpot, sour cabbage hotpot and herbal hotpot Among them is the spicy oil hotpot that shows the typical flavor of Haidilao with a strong, spicy flavor of Sichuan.
As for dipping products, Haidilao is especially famous for its Haidilao beef, marinated and thinly sliced according to Cantonese flavors The menu here is also extremely rich from meat to vegetables, mushrooms,
Besides satisfying the sense of smell and taste, the eyesight is also completely expanded with unique noodle dancing performances, which can also be considered a highlight, making diners unable to rest their eyes.
The sauce counter is placed in a separate area so that diners have space to choose the sauce flavor according to their preferences Besides customized dipping sauce recipes, customers can also create their own sauce flavors to their liking Haidilao staff will also support and advise you on this.
In Vietnam, Haidilao currently has 14 facilities, concentrated in two major cities:
Ho Chi Minh and Hanoi Haidilao has chosen the premises extremely carefully.
=> It can be seen that most of Haidilao's restaurants are located in shopping centers or luxury buildings in the central area This once again clarifies Haidilao's positioning in the market.
Haidilao always puts customer experience first, so when customers encounter any problems, or even when customers have no need, the staff provides support beyond expectations.
With a model, the more it is replicated, the more holes will appear However, looking at how Haidilao's team trains and builds regimes for employees, we will see why they are so willing to devote themselves to serving God This is evidenced in the fact that Haidilao has a human resources organization with an employee turnover rate of 10%, while the management turnover rate here is 0%
To help an entire system be ready to operate, right from the stage of staff training, let them be ready to contribute and serve your customers with 100% enthusiasm with clear policies and thorough training.
At Haidilao, there are support areas to help make the customer experience more complete such as the customer waiting area, nail salon area, and children's play area.
Founder of Haidilao shared: "I am a country person and my opinion is that if you receive money without taking care of it, it is no different than a scam." They are aware that if diners' waiting time is too long, it will unintentionally affect the customer experience There's nothing worse than a hungry person having to wait. This company has arranged a waiting area with a standard and comfortable number of tables and chairs, along with a beauty area for women They can absolutely have a snack while waiting or fold stars, fold cranes,
The company also invested in children's play areas to ensure that parents can still eat in peace while their children can play in the children's area.
Haidilao's staff is fully equipped from headsets to handheld devices, supporting operations and ensuring all arising issues are handled promptly Besides, at each table, customers will be able to order food according to their needs.
System staff will guide and assist customers during the dining process However, for this system to operate and replicate to many facilities, in addition to investing in equipment, it is also a process of observing, learning and understanding its own customers.
Business expansion speed is too fast:
Since 2016, Haidilao has expanded rapidly from 100 stores to more than 1,000 stores worldwide This has led to a number of problems, including: Inappropriate store locations, lack of management staff, failure to build corporate culture, and
Personalized service, entertainment, and extensive menu options can lead to high operating costs This may limit profits in some markets.
Dependence on the Chinese market:
Although Haidilao has expanded globally, its main source of revenue still comes from the Chinese market, making the company vulnerable to economic and regulatory changes in China.
The hot pot market is increasingly competitive, with the emergence of new brands from China and other countries such as Manwah, Hutong, and Hotpot Story This may make it difficult for Haidilao to maintain market share and competitive advantage.
It can be seen that the F&B business potential in Vietnam is extremely huge The clearest evidence is that more and more restaurants and eateries are opening, meeting the large dining needs of customers.
The country's population between the ages of 16 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 Vietnam's F&B industry are extremely abundant Young people's need to eat at restaurants is constantly increasing, especially in big cities Reality shows that young people in our country are always willing to spend large amounts of money on food and beverage services This is also considered the leading target group of food and beverage business locations.
As a world-famous hot pot brand, Haidilao has the opportunity to expand more branches in Vietnam.
With many health risks today, consumers in our country are gradually moving towards using more healthy products Customers are willing to spend more to be assured about the quality of the food and drinks they use Haidilao is always confident with the quality of its food so it can completely meet the needs of today's users.
Competitor Analysis
Haidilao's main competitors in the Vietnamese market:
Manwah: Manwah is another famous Chinese hot pot restaurant chain, with more than 1,000 stores nationwide Manwah competes with Haidilao in terms of food quality, customer service and price The difference in price is that Manwah is cheaper and has a free offer for children under 1m and a 40% discount for children from 1m3 to 1m5 Waiting time to get to the table is shorter than Haidilao However, Manwah's service is not highly appreciated and the quality of the food is uneven.
Hutong: Hutong is a high-end Chinese hot pot restaurant chain, with more than
200 stores nationwide Hutong competes with Haidilao in terms of food quality and culinary experience In terms of price, Hutong is even more expensive than Haidilao, but it still has the same price incentives as Manwah and it also takes time to sit at the table like Haidilao The quality of the food is also high-class like Haidilao
Hotpot Story: Hotpot Story is a famous Korean hot pot restaurant chain, with more than 50 stores worldwide Hotpot Story competes with Haidilao in terms of price and culinary experience.
=> These hot pot brands do not have the culinary experience and service quality of Haidilao.
PESTLE analysis
Political: Political factors do not affect Haidilao's business development activities too much Although originating from China, Haidilao has not been involved in any political dramas like other brands of the same origin like Mixue In Vietnam, the advantage is high political stability, no coups or riots, so it attracts many investors to Haidilao.
Economic: Economic fluctuations can affect consumer spending habits In a strong economy, consumers may be more inclined to experience dining out, while in a recession they may cut back on discretionary spending As Haidilao expands internationally, fluctuations in exchange rates may affect the cost of imported raw materials and the conversion of currency into international earnings.
Sociocultural: Being a hot pot restaurant but with quite high prices, Haidilao targets high-class customers Social factors influence Haidilao at many different levels and need to be considered carefully Haidilao also needs to adapt its menu and service style to cater to local cultural preferences in different countries Changes in social trends, including preferences for online ordering or food delivery, could affect Haidilao's business model.
Technological: In Vietnam, while many food companies link with online delivery applications to increase revenue, it seems that this path is not paid attention to by Haidilao The nature of Haidilao's business does not allow this brand to convert to food delivery At Haidilao, dine-in services are the strength The unique experiences at Haidilao restaurant as mentioned will be completely useless if "on the app" Selling takeout food or combining it with invisible food delivery apps will be taking away your competitive advantage.
Legal: Haidilao must comply with food safety and health regulations set forth by governments in the countries where the company operates Changes in these regulations may affect a company's operations and costs Haidilao is famous for its customer-centric service, so it is necessary to comply with labor laws and regulations related to employee benefits and working conditions.
Environment: Environmental factors are important in Haidilao's operations because it directly affects consumers' health Consumers today have increased awareness of environmental issues and a preference for sustainable and locally sourced ingredients Haidilao's sustainability efforts may be in line with this trend However, problems such as epidemics or unreliable food supplies could have a strong negative impact on Haidilao.
Haidilao staff is very good, the food is delicious.
Dedicated service even at night When I came home from going out at 2:00 a.m and called to make a reservation, the staff came down to the lobby to pick me up and pick me up.
The staff's service attitude is very good.
This is the factor that helps me always choose Haidilao to eat out on weekends.
Food quality is not guaranteed.
One day I went out to eat and ordered beef brisket, but the pieces were full of fat and very flaky.
However, those are just a few and I am still very satisfied with Haidilao's service quality
The first question concerns gender; Based on the survey results, we can observe that 40% of men are interested in Haidilao and 60% of women are also interested This accurately reflects the proportion of men and women today interested in Haidilao services.
Most people interested in Haidilao services are young people between the ages of 18 and 25:
According to survey results: o 70% of the population is between the ages of 18 and 35. o 30% of people over 35 years old
Survey results show that students are the most interested in Haidilao services. o 70% of people are students o 30% are office workers and teachers.
It can be seen that the majority of survey participants were students, so the results show: o 50% is income under 5 million o 20% percent is between 5 and 10 million o 30% percent over 10 million
2 The group of potential customers is divided into 2 main groups
People from 18-35 (Subject 1): Mainly students, income mainly comes from family allowances or part-time jobs.
People over 35 (Subject 2): Mainly working and financially independent people.
Target group 1: o Behavior: Customers tend to search and read reviews before using a service
They can find information online, read reviews, look at options, and compare brands. o Interest: Unexpected, interesting service, comfortable space. o Color preferences: Some customers have their own color preferences, such as warm, outstanding colors or simple, neutral colors. o Demand for use: Customers can search for Haidilao service to use to eat and explore cuisine They look for services with the same income that suit their needs. o Special needs: Some customers have special needs such as checking in, and taking trendy photos according to online trends. o Pain connection: As a student, price will always be an issue before making a choice. o Aspiration: to have many options with lower prices but still be able to experience the service
Target group 2: o Behavior: Usually only free on weekends, makes quick decisions if the time suits yourself and friends Some customers may appreciate service convenience This can also be easily found in Haidilao's service. o Interest: Service quality, food o Demand for use: Customers can look for shops that have a comfortable space design Places that are suitable for them are pleasant and not noisy so they can enjoy their food.
16 o Special needs: Some customers have special needs such as meeting friends
Because these are people who work all day and they need a place where they can eat as well as meet friends and talk. o Pain connection: Limited time, urgency, and dislike of waiting o Aspiration: no need to wait in line, comfortable space to chat with friends, family, colleagues
Haidilao customers value service quality and want attentive service o According to customer surveys, the poor rating is only because of the service attitude, not because of the food and the reason is "forgetting customers" "Forgetting" here means that the restaurant may welcome customers well but wait for a long time, miss orders, or ignore customer notes when calculating the bill slowly. o According to the survey, when mentioning Haidilao, almost 100% of people remember the feeling of being cared for like: "a VIP customer", being carefully served "from head to toe", from the moment they step in until the moment they step in until you return.
To be able to do this, Haidilao has really researched carefully and worked hard to update customers' needs and psychology, to be able to build a systematic training process According to customer observations, customer service at the restaurant is divided into 3 steps: Welcoming guests - serving guests - and saying goodbye You will not find moments of dizziness from waiting outside, because any employee in any position will pay attention to the customers within their scope Walking along a row of tables, there are about 4 employees in 4 different positions Whenever they see a customer's eyes, they will say hello, whether they are on a task or not.
From the "little details" in serving customers, being properly trained has made a difference in service You can criticize the hot pot for its poor taste or high prices, but you will have to end with a compliment about Haidilao's customer service.
Doesn't like waiting and likes new valuable experiences o According to the survey we conducted, customers want to find a new experience that is not available at other restaurants. o Haidilao has turned customers' waiting time into time to experience new, free relaxation services such as mailing and snacks while waiting -
17 something that relieves customers' discomfort Or reduce bills that not many people dare to do with basic games: folding paper cranes, folding stars, drawing hands, etc.
Consumer Research
Key Insights
Haidilao customers value service quality and want attentive service o According to customer surveys, the poor rating is only because of the service attitude, not because of the food and the reason is "forgetting customers" "Forgetting" here means that the restaurant may welcome customers well but wait for a long time, miss orders, or ignore customer notes when calculating the bill slowly. o According to the survey, when mentioning Haidilao, almost 100% of people remember the feeling of being cared for like: "a VIP customer", being carefully served "from head to toe", from the moment they step in until the moment they step in until you return.
To be able to do this, Haidilao has really researched carefully and worked hard to update customers' needs and psychology, to be able to build a systematic training process According to customer observations, customer service at the restaurant is divided into 3 steps: Welcoming guests - serving guests - and saying goodbye You will not find moments of dizziness from waiting outside, because any employee in any position will pay attention to the customers within their scope Walking along a row of tables, there are about 4 employees in 4 different positions Whenever they see a customer's eyes, they will say hello, whether they are on a task or not.
From the "little details" in serving customers, being properly trained has made a difference in service You can criticize the hot pot for its poor taste or high prices, but you will have to end with a compliment about Haidilao's customer service.
Doesn't like waiting and likes new valuable experiences o According to the survey we conducted, customers want to find a new experience that is not available at other restaurants. o Haidilao has turned customers' waiting time into time to experience new, free relaxation services such as mailing and snacks while waiting -
17 something that relieves customers' discomfort Or reduce bills that not many people dare to do with basic games: folding paper cranes, folding stars, drawing hands, etc.
Enjoy in a private, comfortable space with a pleasant scent. o According to the data we surveyed, Haidilao customers want to enjoy the service as well as enjoy the food in a comfortable, private space, with little disturbance from surrounding influences Highly designed chairs with partitions make the dining space more comfortable.
Went out to eat late at night o According to the survey, customers want to go out at night and want to eat late, for example after 12 midnight At that time, most competitors such as Manwah, Hutong, or other hot pot companies will close Haidilao has opening hours at its Hanoi and HCM locations until 1 a.m., even 3 a.m in some places.
Staff are always observing, listening o According to the survey, most of you are very surprised with what Haidilao prepares for customers.
For example hair tie (for female guests), wet tissue to clean the phone screen, a hot towel to wipe the face, a bag to store personal items, apron. o That's the interesting thing when Haidilao knows how to observe, listen, and meet customer needs When customers have bad experiences and need suggestions, Haidilao is ready to receive them and is willing to improve the issues Understanding and willingness to improve in customer service are Haidilao's highlights.
Solve psychological problems for families with young children o According to the survey, families with young children often encounter problems when taking their children with them.
=> To solve that difficult problem, Haidilao used the children's play area effectively Although this has been applied by many restaurants, it has not fully captured customer psychology Children aged 6 or 7 years old or younger, even if there is a play area, still need someone to look after them.
Haidilao created 2 touchpoints: o "Nanny" in the area to look after the children
18 o Creating absolute peace of mind for parents when dining, the restaurant provides tablets right at the desk.
=> Therefore, parents can check the camera while eating to see how their child is doing.
Challenges and problems that the service provider is facing
Service quality at facilities is uneven
Quick statistics show that, after nearly 3 decades, Haidilao now owns over 1,300 branches in 14 countries, of which the largest concentration is still in China In Vietnam, after just over 2 years of joining, this brand has opened 14 new restaurants, all located in the most expensive locations in Hanoi and Ho Chi Minh City According to the survey we conducted, customers who went to eat Haidilao at different establishments felt that the service quality at Haidilao at different establishments was uneven.
The hot pot market is increasingly competitive Haidilao's competitors such as Manwah and Hutong are applying new strategies to attract customers, such as reducing prices and improving service quality.
According to the survey we interviewed, there are some customers who say they will not come back to eat anything with the price they spend, but they want to eat and experience at restaurants that also have services like this However, the price will be cheaper.
According to a survey of people who have experienced dining in Haidilao Although this is a company that produces and sells spicy hot pot dishes originating from China But when entering Vietnam, the taste and culture of Vietnamese people will be different Haidilao needs to adjust his preferences and style to be more suitable.
The quality of food products does not meet customers' expectations, there is no meticulousness and meticulousness for the dishes.
Analysis and Evaluation of Current 7Ps Marketing Strategy
Product strategy = Core product + Supplementary services (using the Flower of Service model) 19 5.2 Pricing strategy
The core products that Haidilao provides are hot pots and hot pot toppings:
There are a total of 8 types of hotpot broth: Spicy oil hotpot, herbal hotpot, mushroom hotpot, tomato hotpot, bone hotpot, sour mustard hotpot, Thai hotpot, sweet and sour hotpot In addition, because of the variety of broths, customers coming to Haidilao will be able to choose up to 4 hot pot flavors, this increases the choices for customers Among the 8 choices above, there are 4 traditional types: spicy hot pot, tomato hot pot, spicy and sour hot pot, bone stew hot pot with mushrooms, which are best sellers because they have the Southeast Asia flavor, suitable for the Vietnamese taste
Hot pot topping: The menu of dipping dishes and hot pot is also extremely varied with all kinds of hot pot fillings from meat to vegetables, mushrooms They are also beautifully decorated to stimulate customers' taste buds Meats, seafood, balls hotpot, each portion of food is about 200-300 grams Haidilao is especially famous for its Haidilao beef, marinated and thinly sliced according to Cantonese flavors When diners enjoy each flavor of hot pot broth, it will bring its own flavor In addition, the menu will also be changed to suit the tastes of the people of each country.
After eating hot pot at Haidilao, most customers commented that the quality of the food was not fresh Haidilao needs to take measures to ensure fresher food.
Information: Haidilao Hot Pot ensures that its customers can access accurate and relevant information about their menu choices, ingredients, and prices on tablets at the restaurant They provide a clear menu with detailed descriptions of each dish such as the type of shrimp available - live or frozen or like the spice level.
Order-taking: Haidilao has a team of professional service staff, ensuring that dishes are brought at the appropriate time and quantity Customers can book a table in advance at Haidilao in one of two ways: calling to book a table via the phone number of the branch of your choice or ordering via the Facebook fanpage The restaurant is often crowded, so if customers do not book a table in advance, they will need to wait 30-60 minutes But instead of arranging waiting seats for customers, Haidilao will provide the best services and experiences such as nails, shoe polishing massage, coffee or enjoying some snacks while waiting.
Payment: Haidilao Hot Pot accepts many payment methods, including cash, credit cards, mobile apps, and QR code scanning Customers using electronic payment methods also enjoy special incentives from Haidilao.
Billing: Haidilao Hot Pot ensures the bill is calculated accurately, quickly, and easily because in addition to Chinese, there is also Vietnamese right below so customers can easily check the bill Waiters will always carefully check the food and quantity before charging customers to ensure that they are not overcharged.
Consultation: Haidilao has a team of professional and attentive service staff, assisting customers in finding dishes that suit their specific tastes and needs Staff can also assist consumers in finding foods that fit their diet Furthermore, the service attitude of Haidilao staff is quite dynamic, always welcoming visitors.
Hospitality: Haidilao hotpot provides a beautiful and friendly space, making diners feel comfortable and relaxed The restaurant's customer service work is divided into 3 steps: "welcoming guests - serving guests - goodbye" and is performed by the staff smoothly and professionally, without making any mistakes. Customers' feelings are always paid attention to by Haidilao employees From small things like hair ties, glasses wipes, or if you're traveling alone, you'll have a teddy bear sitting with you If you go out to eat on your birthday, the staff will sing happy birthday and give you a cake birthday or longevity noodles, All of these things also show the sophistication of the restaurant and are a plus for customers The service staff are also extremely dedicated and attentive, ensuring customers receive the best service possible.
Safekeeping: Staff taking orders will wear a mask to ensure hygiene when talking to customers, keep their hair in a high bun and wear a half-hat To avoid touching the plate when serving food to guests, the waiter must wear completely tight clothing, especially with tight wrists Eating utensils are always stored in a setup cabinet with an absolute disinfection system In addition, Haidilao also makes customers feel secure when they are ready for diners to check the kitchen camera to ensure food hygiene and safety issues Haidilao has clearly and skillfully affirmed its commitment to strictly implementing food safety and hygiene.
Exception: Haidilao makes customers always remember after the first experience because of the outstanding and unexpected things that can be found at Haidilao such as getting nails done while waiting for a table, making your own dipping sauce, watching the noodle dance right at the table and celebrate a surprise birthday Especially with the extremely exciting birthday celebration service for customers at Haidilao Organize a surprise birthday party, especially with the extremely exciting birthday celebration service for customers at Haidilao Staff will note tables for birthday celebrations at Haidilao A special request here could be that the customer brings their birthday cake to deliver to the staff or otherwise
21 the staff will also give a small gift of a small cake on a plate with candles and wishes.
Although Haidilao's service quality is very good, for Haidilao in Vietnam, there is one point that should be improved In 2018, Haidilao launched Haidilao Super App Through this mobile application, customers can reserve tables in advance, view menus and orders, earn promotion points, search for stores, call for services, and receive promotional notifications But currently this app is not widely used in Vietnam If HDL can promote this by releasing a Vietnamese version of the app and encouraging customers to use the app, will make the service flower fresher or simply put, giving customers the most optimal experience.
For example, instead of having to go to Haidilao Vietnam's fanpage to find nearby offshore addresses and then call each establishment to ask if there are still tables available, customers can use the app to view the addresses of the offshore and see if each store has any seats or receive notifications about the waiting time of each store
In addition, when customers come to HDL, the app can guide customers step by step to order instead of having to have staff give instructions Many people will have the opinion that being guided by staff is better, but in many cases, customers may be introverted or when the store is too crowded, the staff cannot serve customers in time and causes errors in customer service Or in case you plan to celebrate a relative's birthday, through the app you can signal the staff to create a surprise In addition, the app will also store customer information about table reservations and dishes customers have ordered so that they can give customers suggestions during the next ordering process Or simply using customer data to launch personalized promotions or accumulate points is also one of the factors that motivate customers to use the service more.
Haidilao sets prices based on the value provided to customers By pricing its products at high prices for certain product lines, the goal is to encourage people in the target customer group to have a positive perception of the brand and product Not only that, setting high prices for products also encourages customers to have good awareness of the quality of Haidilao products By setting high prices for its products Haidilao has added privilege and high value to itself while also helping to maintain significantly high profits and steady business growth What makes the Haidilao vn brand always
22 mentioned is the quality of service This pricing method makes the Haidilao brand always mentioned as service quality.
When looking at Haidilao's menu, we will not see prices ending with the number 9 like in supermarkets which people often call “charming pricing”, instead, HDL uses prices ending in 0 to mean "Prestige Pricing" Ending with a zero gives the customer the impression that they are paying for something expensive and worthwhile (Jedidi and Heil, 2019) Psychological pricing also helps Haidilao succeed in adding value to the product through the customer's perspective.
In addition to ordering each dish as usual, Haidilao also offers customers a more convenient choice: combos based on the number of customers including combos of 2 guests, 4, 6 and 8 guests Each combo will have a fixed price and menu for spices, hot pot sauce and hot pot dipping toppings.This will help customers not have to spend too much time choosing dishes and types of hot pot sauce.
Decrease related non-moneytary cost
Placement strategy
Haidilao Haidilao is building its own direct distribution channel and reaching customers directly In Vietnam, Haidilao has 16 facilities scattered in two major cities: Hanoi and Ho Chi Minh City This help Haidilao have a high business growth, and a boost for rapid market expansion and penetration At its direct stores around the world, Haidilao also learns about local consumers and culture, so Haidilao products are adjusted to suit local cultural values The localizing its product offerings to enhance brand equity and brand image.
Haidilao has developed a successfully operational website for online order placement and order tracking, also encourages sales through social media portals, where the company takes orders through direct messages, as well as through a mini-shop model. The firm also supplies its items with smaller local online retailers and major online retailers like Amazon and eBay Online retailing and using the Internet to make sales has enhanced Haidilao's revenues as well as the accessibility of its products for customers.
Haidilao has a fairly high price, suitable for the income of people in big cities Therefore, it is quite reasonable to locate Haidilao stores in commercial centers of big cities At the same time, using indirect distribution channels also helps Haidilao reach more customers.
Promotion Strategy
Includes activities that help increase sales, make customers recognize the brand as quickly as possible, and lead to action, through forms such as: Advertising, PR, Personal communications, Promotions/events, and WOM
Marketing Communications Planning: The ‘5 Ws’ Model
Who is our target audience?
People who want to experience new cuisine - Chinese hot pot cuisine Families and individuals who want a unique culinary experience Specifically, Haidilao wants to reach residents in big cities in Vietnam aged 18-45, focusing on those who like to try new dishes and want to experience new hot pot service.
What do we need to communicate and achieve?
Haidilao needs to convey the unique differences that customers experience here, such as Chinese hot pot, authentic ingredients, and special customer service: dancing noodles, making your dipping sauce, or getting your nails done, etc.
Goal: increase revenue and enhance brand awareness in the region.
How should we communicate this? To communicate effectively, Haidilao will use a combination of marketing channels: social media through regular posts on social media platforms such as Facebook, TikTok, And email marketing, collaboration with KOLs, KOCs, and other channels.
Where should we communicate this?
Communicate both offline and online: Offline at Haidilao restaurant branches and online through social media.
When do communications need to take place?
There will be a specific schedule with specific campaign methods.
Monthly social media posts and emails.
The loyalty program will run year-round.
Special promotions and campaigns coincide with holidays and change seasonally…
Insight: Haidilao clearly understands the needs of its target customers, not only simply coming to Haidilao to enjoy the taste or quality of the food, but also the restaurant space, especially the service that makes them feel comfortable truly a
"god" Haidilao helps customers satisfy all 5 senses: taste, touch, smell, sight, and hearing.
Communication channels: social networking platforms Facebook, Instagram,
Content: Post videos about real activities that take place when customers come to experience at the restaurant: dancing noodles, mixing dipping sauce, Use content, and visual design to interact with customers during holidays, Tet or to introduce new products.
About design: Haidilao designs its advertising posts quite simply As can be seen, all posts have Haidilao's identifying logo with just the word "Hi" enclosed in a circle and the words "Haidilao hot pot restaurant", along with typical Haidilao characters Colors will revolve around red and white tones.
About the message: Haidilao creates many slogans, and mantras that cause
"storms" on social networks However, almost all the messages posted on restaurant channels do not bear Haidilao's mark so when they arrive, people will immediately think of Haidilao Haidilao mainly creates messages to adapt to each occasion Example : Quốc Khánh : " Mừng ngày độc lập 02/09
- Cùng HAIDILAO tụ tập " or Tết Nguyên Tiêu : " Vui Tết Nguyên Tiêu - Đoàn viên sum vầy"
Media channels: Youtube, Tiktok, Facebook
Goal: Gain trust and show customers satisfaction when Haidilao serves them.
Method: "Word of Mouth" This is the main way in Haidilao's PR strategy They book KOLs and KOCs to carry out PR for this brand.
Content: KOLs and KOCs make videos about their journey to eating hot pot, clearly showing: How they were served by Haidilao when eating hot pot here How do staff welcome them? How to make Haidilao's hot pot dipping sauce, Haidilao automatically becomes "Viral" without needing to invest much money in product advertising.
=> Haidilao creates trends, not follows trends: Haidilao was very smart to encourage its employees to be creative by rewarding employees who have creative suggestions for the restaurant Ideas such as giving away phone cases, creating heart shapes with Haidilao staff, were all thought up by the staff here and became viral on social networking sites and were promoted by customers or KOLs KOCs.
Use a lot of gifts for customers: At Haidilao, if a customer says a "magic spell" to the staff, they will receive a surprise gift (spells "I am a fairy", "My Destiny", " Bing-chi-ling", ) or the service of providing free teddy bears when eating hot pot alone or in small groups of customers (3.5 people),
In addition, while waiting for a table, customers can arrange stars or paper cranes, and when they reach a certain number, they will receive a discount right on the bill Customers are also served free services such as manicures, birthday parties, homework help, etc These services have created trends across social networks.
Haidilao does not pay too much attention to promoting on Facebook as evidenced by the fact that posts are largely seasonal The posts do not have Haidilao slogans that when mentioned by viewers, they always remember the brand It is recommended that Haidilao should post posts with Haidilao characteristics, slogans that will create trends.
Physical evidence strategy
Haidilao creates friendly and warm service for customers Furthermore, staff are trained to be attentive, and interactive, and provide a quick experience for users at the restaurant, something unique and different from other service staff.
The first condition for the appearance of a Haidilao restaurant is that a place must have a large area, so most branches of Haidilao Vietnam are located in large commercial centers.
All Haidilao restaurants are divided into different areas: waiting area, nail salon, children's play area, and main area: family dining area, VIP room, line counter, dipping sauce-dessert In addition, there are extremely comfortable walkways (to push drink carts and customers or employees around).
The restaurant is designed in a traditional Chinese style combined with modern machinery, bringing a feeling of both luxury and sophistication Haidilao divides the restaurant into 2 hot pot areas: the VIP room and the common area
With VIP rooms optimized for private parties Step into the spacious room, filled with warm lights and fully equipped amenities
For the common area, the dining tables and chairs are wooden frames, and the chairs have soft cushions in gentle, elegant colors Each table has a partition, creating a private space for each customer to use.
Haidilao brand color identity: Cream-avocado green mixed with red and black
"details" or "border" designs, in some places, there will be large walls with a gray background tone and attached brand logo.
At a hot pot restaurant, the mixed smell of hot pot sauce, raw food, dipping sauce, is inevitable But thanks to the spacious open space and Haidilao's exhaust system, the smell also dissipates quickly, without causing discomfort to customers The partition between dining tables is also a factor that makes each customer's dining table only smell the aroma of their hot pot.
The entire space is equipped with yellow lights to create warmth and increase customers' impression of the dishes.
Haidilao doesn't seem to focus on sound so there isn't any sound/ sometimes there is very low music.
Main purpose: To let customers focus on chatting, eating and fully enjoying the moment with family, and friends on the hot pot table
Other goals: Haidilao has performances that attract customers' attention such as noodle dance or mask dance with music.
The Russell Model of Affect for Hai Di Lao
Russell's influence model is used to measure how people react to their environment Affect can be caused by sensations, perceptions, and cognitive processes of any degree of complexity For that reason, Haidilao always tries to aim for an exciting and pleasant end of the model This is ensured by the environment and staff always working conscientiously and serving customers at the maximum level.
Haidilao always strives towards pleasant environments leading to high customer approach behavior Because of being located in pleasant environments, positive effects such as feelings of enjoyment or satisfaction with the experience, can increase customer loyalty, they are likely to share their positive emotions with others others.
Process (Using the Service Blueprint)
Starts as soon as customers set foot at Haidilao restaurant Every Haidilao restaurant has a waiting room for customers Customers will have the option to register as a
30 member or log in as an existing member After logging in as a member, customers can access all information related to reservations, food orders, or restaurant menus. While waiting for your turn to sit, Haidilao has different areas to meet customers' different needs such as hand massage and nail services, indoor children's play area, or free fruit and vegetables snacks.
When customers are notified to come to the table, a staff member will warmly welcome them and lead them to the table A warm towel, apron, and fruit will be given to customers as soon as they take their seats Each table will have a receptionist who will always serve you wholeheartedly.
Customers will start choosing food through the table or can ask staff for assistance When dining, customers can experience Chinese culture through a face-changing dance performance or a noodle dance performance.
After customers finish eating, the staff will provide free dessert and fruit.
Customers will be asked how their experience and service was today.
Furthermore, after paying, they will receive additional gifts from Haidilao such as ready-made hot pot bags, ice cream, and snacks, etc.
With Haidilao's current success, it can be seen that Haidilao's current process is very suitable for businesses Always with the motto of putting customers first, every step in the customer service process is focused, it is difficult to find failing points in Haidilao's current process.
People
Looking at the overall picture of Haidilao's successful development, it is not difficult to realize that this business follows service employment called the “Cycle of Success” They have a long-term vision of financial performance and seek to prosper by investing in people to create “Circle Success” This success applies to both employees and customers Haidilao always puts customer experience first, so when customers encounter any problems, or even when customers have no need, the staff provides support beyond expectations.
Looking at how Haidilao's team trains and builds regimes for employees, we will see why they are so willing to devote themselves to serving customers Haidilao staff are well-trained and proficient with the service motto from A to Z They are trained in many behavioral scenarios and diverse situations when communicating with customers Haidilao's employee policies are extremely good and very clear in terms of promotion paths.
Deduct 3% of the store's profits to reward management levels at that store, attaching responsibility to the benefits that individuals receive so that they are more motivated to manage and operate.
Reward employees for innovation, support, good customer care, determination, and putting the customer first: warm towels to wipe your face, phone cases to protect against food, dining apron, hair tie
Apply clear promotion policies and roadmaps for employees with long-term work experience, do not recruit managers, and ensure benefits for long-term employees with contributions who will be promoted worthy of reward One more thing to ensure that recruiting senior management does not lose
Policies on subsidized accommodation and education insurance for children as well as the entire family, so that employees can contribute with peace of mind and ease the burden of life.
Build a training center for staff, and provide professional and methodical training from the beginning.
=>This is evidenced by the fact that Haidilao has a human resources organization with an employee turnover rate of 10%, while the management turnover rate here is 0% To help an entire system be ready to operate, right from the stage of staff training, let them be ready to contribute and serve your customers with 100% enthusiasm with clear policies and thorough training.
Besides, what is the real problem that HR is facing? For them to be able to concentrate and make efforts, what additional factors do they need? Employees with a good mindset, good attitude, and diligence will certainly make your business results good Otherwise, even if you put a lot of effort into attracting customers, if the service attitude and quality are not good, then the story becomes meaningless.
Recommendations and Conclusion
In short, Haidilao, a Chinese hot pot restaurant chain, has had certain success in the Vietnamese market in particular, as well as the global market in general Haidilao's success is built on dedicated customer service and innovative thinking that makes a difference in the highly competitive F&B industry The company's unique service model, which includes entertainment and personalized experiences, has not only built a loyal customer base but also created a strong brand presence both in China and abroad internationally.
Haidilao's rapid expansion shows its ambition to become a global leader in the restaurant industry However, as the company continued to expand, it faced various challenges, including maintaining quality and consistency across multiple locations, adapting to different cultural preferences, and addressing address sustainability concerns.
But ultimately Haidilao's success will depend on the company's ability to adapt to market changes while maintaining the core values from the beginning.