haidilao hot pot services marketing management group project

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

SERVICES MARKETING MANAGEMENT

Group: 3Class: MKT1724

PROF: Nguyen Minh Quang

4.3.Challenges and problems that the service provider is facing 18

5.Analysis and Evaluation of Current 7Ps Marketing Strategy 19

5.1.Product strategy = Core product + Supplementary services (using the Flower of Service model)195.2.Pricing strategy 22

5.3.Placement strategy 24

5.4.Promotion Strategy 24

5.5.Physical evidence strategy 28

5.6.Process (Using the Service Blueprint) 30

5.7.People 34

6.Recommendations and Conclusion 35

7.References 35

1 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.

2 Service organization’s Introduction2.1.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.

2.2.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 intothe 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 adheresto 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.

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 morenutrition, 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

services provided by Haidilao's restaurants originate from the creative ideas of the staff These warm and personalized services turn every meal into one.

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.

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

3 Service Organization’s Situation Analysis3.1.Business/company Context

F&B market in Vietnam:

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 accountingfor 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.

3.2.SWOT Analysis3.2.1 Strength

High brand recognition:

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 Chinaand internationally.

Product quality:

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.

Selective distribution activities:

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.

Outstanding service quality:

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.

Outstanding customer experience:

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.

Application of modern technology:

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 owncustomers.

3.2.2 Weakness

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 "illusion" about business profits.

High operating costs:

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.

Fierce competition:

The hot pot market is increasingly competitive, with the emergence of new brandsfrom 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.

3.2.3 OpportunitiesPotential F&B market:

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 extremelyabundant Young people's need to eat at restaurants is constantly increasing, especially in big cities Reality shows that young people in our country are alwayswilling 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.

Healthy eating needs:

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.

For example, in the fourth quarter of 2023, the consumer trend is to use sustainable products, they are increasingly concerned about health-related issues, and prioritize buying products with clear origins Obviously, not harmful to

health 67% of Vietnamese consumers said they would choose products with green labels or sustainability certification.

3.2.4 Threats

Challenges from competitors in Vietnam: The F&B industry in Vietnam is

currently highly competitive with more and more restaurants opening and Haidilao faces competition from restaurant chains popular drinks and domestic hot pot.

Economic challenges: Economic downturns or fluctuations could also affect

consumers' eating out habits, potentially reducing visits to Haidilao.

Regulatory Challenges: Changes in food safety regulations or labor laws could

increase compliance costs and impact Haidilao's operations.

Concerns about disease outbreaks: Events such as foodborne disease outbreaks

can cause disruptions to food supply chains, affecting product availability or cost, or related concerns health concerns, such as the COVID-19 pandemic, could negatively impact customer base.

3.3.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 than200 stores nationwide Hutong competes with Haidilao in terms of food qualityand culinary experience In terms of price, Hutong is even more expensive thanHaidilao, 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.

3.4.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 theseregulations 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 isvery good, the

food isdelicious.Dedicatedservice even at

night When Icame homefrom going outat 2:00 a.m andcalled to make areservation, thestaff came downto the lobby topick me up andpick me up.

The staff'sserviceattitude isvery good.This is thefactor thathelps me

alwayschooseHaidilao to

eat out onweekends.

Food quality isnot guaranteed.One day I wentout to eat and

ordered beefbrisket, but thepieces were full

of fat and veryflaky.

However, those arejust a few and I amstill very satisfiedwith Haidilao'sservice quality

4.1.2 Customer profile1 Demographic factors:

Gender:

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 18and 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.

Average monthly income:

It can be seen that the majority of survey participants were students, so the results show:

o 50% is income under 5 milliono 20% percent is between 5 and 10 milliono 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.3 Identifying characteristics:

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

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 canenjoy their food.

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

4.2.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 anyposition will pay attention to the customers within their scope Walking along a row oftables, 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 -

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 theissues 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 customerpsychology 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