Faculty Of Business Individual Assignment Trung Nguyên Coffee.pdf

Introduction This report is an analysis and review of King Crab's food communication crisis at the heart of the 2021 pandemic at a time when the development of King Crab restaurants is o

FPT UNIVERSITY

FACULTY OF BUSINESS

INDIVIDUAL ASSIGNMENT

SPRING 2022

ASSIGNMENT COVER SHEET

Course Details

Subject Code: MKT318

Subject Title : DIGITAL MARKETING

Lecturer’s Name : MR LE PHUOC CUU LONG

Assignment Details

Due Date : 27TH March 2021

Student’s Details Name: Nguyen Duc Thanh

Table of Contents

Introduction 1

A Concise History of Vua Cua 1

Issues of Vua Cua 2

Crisis of Vua Cua 3

Crisis Response 5

Conclusion 6

References 8

Introduction This report is an analysis and review of King Crab's food communication crisis

at the heart of the 2021 pandemic at a time when the development of King Crab restaurants is on the rise in the F&B industry (ONLINE, 2021) This article will introduce the development of the Crab King and present the problem causes that caused the crisis Impact of the incident on stakeholder relationships such as shareholders, customers, and employees At the same time, it shows how the brand's skillful handling of crisis communication brings satisfaction to stakeholders and the strong recovery of the company after the crisis

A Concise History of Vua Cua The journey to create meals is named happiness

The first King Cua restaurant was in March 2016, (reserved, n.d.) in the promised land of Saigon but at a time when the trend of the F&B industry ' Food and Beverage Service " is developing strongly throughout the past years in Vietnam In the Vietnamese market, the big companies in the food industry such as Jollibee and KFC are holding the fried chicken fast food supply chain in Vietnam Besides the advantage

of the sea route over 3,260km (Nguyen Nam,2022) especially for marine life, is a non-loss revenue source for businesses in Vietnam so it was a difficult problem to survive and develop King Crab But with a strong desire to revive the soul of Vietnamese cuisine in creative sauces, it gives customers a new perspective on how to prepare seafood while being westernized

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When it comes to King Crab, people will immediately think of 12 different specially prepared sauces according to an exclusive recipe that has been researched (reserved, n.d.) The sauces result from interference from many cuisines in the world from Asia to Europe Taking the Vietnamese flavor as the central theme, King Crab has put on a new unique, and diverse shirt with Vietnamese flavor after a long time perfecting the sauces

Not only providing diners with new experiences in sauce and seafood but King Crab also wants to turn the moments when diners eat at the restaurant into the most comfortable moments with a cozy, luxurious and luxurious space The best most attentive service is possible

With the motto of bringing happy meals and the principle of serious operation, Defective products are exchanged King crab has created with guests a great trust With great responsibility, King Crab also pays great attention to the origin and quality

of products in each stage of importing food ingredients clearly with a team of experienced purchasing

Issues of Vua Cua Dumplings 140k!!!

Unexpected incidents of food quality Impact on customer relationships The power of social platforms - Food reviewer Impact on employees

Impact of the crisis on stakeholders

This has been a controversial issue at the heart of the Covid-19 season in 2021 in Vietnam There were mixed opinions about the product and the price of the 'dumpling' product of the King Crab store on the market at that time There have been many

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loopholes in the food production process, which greatly affected the company's reputation and relationships with stakeholders However, CEO Doan Thi Anh Thu handled this media crisis well to calm public opinion and more successfully created more trust for customers about king crab's products Personally, I agree with King Crab's handling of the crisis, frankly, admitting fault and offering compensation to customers

Crisis of Vua Cua

A promising strategy of King Crab to enter the fast-food market such as dumplings and bread combined with the strategy of King Cua Bike to support meals for customers at the heart of the epidemic season in 2021 In simple days, that food can

be called a rare "savior" to help customers satisfy their cravings for street food King Crab has launched attractive dumplings at the price of nearly 40,000 VND for a dumpling, which is not cheap, but customers are always ready to receive and enjoy However, the product quality is not as expected The dumplings are always met with criticism from the "customer" stakeholders on a food review fan page with nearly 700,000 members Distributing articles, and product criticism are always updated, other social platforms are always around the issue and this crisis has been a focal point for news sites (The Shark Tank Brand was accused of being sold 4 Dumplings Priced

at 135k - 2 stars, n.d.) greatly affected a part of customers of King Crab When the trust of customers has been lost, it is very difficult to regain it if the solution of the CEO is not smart, it will cause many unpredictable consequences for the company The power of social platforms The Internet is a virtual world where people have the right to freedom of speech and action in moral terms It always has both

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positive and negative sides, this report will clarify the negative side of the internet affecting the food service industry We can't deny that the power of social media reviews, the 1 and 2-star reviews of some extremists without explanations have greatly affected the brand's reputation King Crab' these bad reviews take a while to recover from the 1.2-star reviews This negative influence outweighs the good points from the

4, 5-star reviews Besides affecting the reputation and reputation of the business, it also affects the relationship with senior employees when those evaluations are also considered a KPI at work, so those extreme comments have influenced quite a bit

We cannot deny the rapid development of the 4.0 era when short content and short videos are on the throne Food vlogs that attract a large number of viewers, combined with Food reviewers, have brought positive and negative aspects to products

on the market When consumers put their trust in culinary experts (Food Reviewer, 2021), food reviewers have built and developed their own personal brands, thus creating trust with their community of followers The influence of Food reviewers on the crisis of King Crab is quite large and more worrying when Vietnamese people spend more time on the Internet due to the influence of the Covid-19 pandemic Each person spends an average of four hours a day using the Internet, in Vietnam there are about 68.72 million internet users and 72 million users of social networking platforms, accounting for about 70.3% and 73.7% population of more than 97 million people (Digital Vietnam 2021 – We Are Social, n.d.)

The corporate crisis affecting investor relations is inevitable When the investors in King Cua are famous people like Nguyen Anh Tuan (Will 356), the influence on the reputation of these individuals is there when the company was

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marketing its brand on the popularity of these individuals in the early days invest More importantly, King Crab has just successfully raised capital on the shark tank program (VTV, 2021) a few months when there was a quality problem with the dumpling product that had just been released on the market Although it is not clear how this crisis has had an internal impact on relations with investors

Crisis Response

It can be seen that, the CEO of King Crab has used the criterion of good service

as the key to solving the quality problem of products circulating in the market CEO Doan Thi Anh Thu stood up to apologize to customers and received all the errors in the production process of the business that gave customers a bad experience with the product King Crab has clearly pointed out that the reasons for the poor quality of dumplings are that of meeting the needs of consumers, they have applied machines to the dumpling production line To receive the sympathy of customers, King Crab quickly posted a notice on the recall and compensation of inferior dumplings on September 5 and 6, 2021

Not only did the CEO's representative apologize to customers, but on the social pages of the restaurant, King Cua immediately posted an apology to customers for this unintended food incident (King Crab - Articles | Facebook, n.d.)

King crab and respectful attitude to customers CEO of King Crab – Ms Doan Thi Anh Thu directly commented below the post to explain and apologize to the customer This move by King Crab shows that this business is extremely important to customer experience, even if only for a few single customers in a closed group Not

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only that, but the CEO of Crab King also personally contacted this guest to apologize and explain the unintended incident and send another product to compensate Besides, King Cua gave heroic sayings to dispel public opinion such as 'smearing, deleting reviews is a cowardly job of businesses' If they want to become big, businesses should not blame customers or tends to force or ask customers to remove bad reviews Instead, businesses need to look at their own mistakes to review and correct them." (CEO Doan Thu shared) These sayings have quickly created the reputation of the Cua King brand in the hearts of users

The solution has shown the satisfaction of the stakeholders about the CEO's job and the stability of the brand after the crisis by using good communication strategies to launch promotions and recalled products defective products on the market This method of King Crab has helped the dumpling product not be boycotted but also become more popular in the market and interest many people The customer's sympathy for the brand in solving the "seal" also helps customers to prioritize buying products because they feel confident And that belief has led to each consumer's buying decision Although the action of King Crab is not too big of a problem, the brand still shows the heart of a sustainable F&B business, building and going up from mistakes, towards the best experience for customers' consumption

Conclusion The king of crabs has handled the communication crisis according to the criteria

of respecting customers and frankly admitting mistakes from the food production stage

of the business From doing that, it can be shown that King Crab is a civilized business that respects customers and takes customer experience as a goal for its development,

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not intentionally hiding unexpected incidents would like The work of the Cua King brand is remarkable and worth learning, especially at a time when the voice of consumers is becoming more and more influential thanks to the development of social networks brand and stakeholders are still connected and develop the company Stakeholders' satisfaction with the enterprise's crisis handling can be seen through the company's post-crisis operations

In any corporate crisis incident, silence or deliberate delay is an irresponsible attitude, disrespecting customers, causing confusion and loss of trust for consumers and the community Just focusing on advertising to regain the brand image shows that the business does not have an understanding of its customer file which can lead to a brand boycott

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References

ONLINE, 2021 King of the Crab becomes the fastest-growing F&B today

Retrieved from Vua Cua trở thành F&B tăng trưởng nhanh bậc nhất hiện nay - TuNi TrO Online (tuoitre.vn)

Reserved, n.d About the king of crabs Retrieved from Về Vua Cua - Vua Cua Restaurance

Nguyen Nam,2022 The geographical location of Vietnam's sea route

Retrieved from https://luathoangphi.vn/duong-bo-bien-nuoc-ta-dai-bao-nhieu-km

The Shark Tank Brand was accused of being sold 4 Dumplings Priced at 135k - 2 stars, n.d

Retrieved from Thương hiệu từng lên Shark Tank bị tố bán 4 cái bánh bao giá 135k -2sao

Food Reviewer , 2021 Reviews influence on restaurant reputation

Retrieved from https://ipos.vn/food-reviewer/

Digital Vietnam 2021 – We Are Social , n.d Analysis of Vietnamese Internet use behavior

Retrieved from Digital Vietnam 2021 – We Are Social

VTV, 2021 King of crabs successfully raised capital at Shark Tank Vietnam

Retrieved from Shark Tank Việt Nam

Vua Cua - Bài Viết | Facebook, n.d The Crab King's sincere apology on social networks

Retrieved from: Vua Cua -Facebook

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