COMPANY BACKGROUND
Key facts
Scope of licensed business: Airline catering, event catering, farming and food processing, import-export activities for catering business
Experience: 33 years of airlines catering services
Quality Management Systems: ISO 9001:2000 (certified); HACCP, Halal (certified)
Plot area: 5,900 sq.m Floor area: 3,600 sq.m (excluding a separate office building) Distance from kitchen to ramp service area: 800 m
Average production: 12,000 meals per day
Special meals: all types of special meals except kosher meals
Average number of departure flights handled: 70 flights per day
Vehicles: 12 hi-loaders which are able to serve wide-body aircraft such as Boeing 747, Airbus 340; 4 mini-vans for last-minute delivery
Cold stores: 17 cold stores and 4 freezers
Development history
1978: A flight catering unit (under Airport Authority) was set up at Noibai International Airport and started serving commercial flights
1993: Noibai Catering Services Enterprise was founded based on the former catering unit It becomes an official member company of Vietnam Airlines Corporation
1994: Noibai Catering Joint Venture Company, which was a joint-venture between Vietnam
Airlines and SERVAIR (France), was founded and it was initially intended to replace Noibai
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Catering Services Enterprise However, the Joint Venture Project was canceled in 1998 due to unfavorable business conditions in Southeast Asia at the time
2004: Noibai Catering Joint Stock Company (NCS) was founded Major shareholders are:
Vietnam Airlines: 60% of shares, Southern Airports Services Company (SASCO): 10% of shares, Vietnam Air Caterers: 1.7% shares
2007: Noibai Catering Joint Stock Company put into operations a new kitchen replacing the old one which fell into clearance site according to the new master plan of Noibai International Airport
2008: NCS’ annual production exceeds 3 million of meals for the first time
2009: NCS welcomed Malaysian Airline as its 13th regular customer
2010: NCS welcomed 3 new customers Mekong Air, Qatar Airways, LOT Polish Airlines
Achievements
2009: ranked “Top Ten Caterer” by Korean Air
2010: awarded as the Best Caterer 2009-2010 by Korean Air
2010: presented the award “Caterer with the most efficient quality management system” by
February 2011: officially presented Halal and Hygiene Compliance award 2010 for excellent performance by Malaysia Airlines
Products & services
- a variety of choices of Vietnamese delicacies
- many traditional cuisines of the world namely French, Chinese, Japanese and Korean
NCS assures its customers with all handling services needed, such as: flight handling, equipment washing & laundry, store management and bonded store operations.
Quality policy
NCS well understands that the quality of products and services is the pre-requisite condition for the success and sustainable growth of the company and that is the number one priority in any of the company’s strategies The quality is always measured by the customer’s satisfaction
To improve the quality and to better meet customer’s requirements, NCS is committed to establish, maintain, continuously and effectively improve the quality management system, train the staff and upgrade technical facilities
NCS’ quality management is based in ISO 9001:2000 and HACCP systems
The quality policy, which is the vision of NCS, has been widely communicated throughout the company for proper understanding and implementation
It must be noted that the management of NCS keeps evaluating the effectiveness of the quality policy on regular basis.
Regular customers
NCS has gained a significant number of loyal customers over the past 33 years Their regular clients now are: Vietnam Airlines, Russian Aeroflot, Vladivostok Air, Korean Air, Asiana Airlines, Hongkong Airlines, Japan Airlines, China Airlines, China Southern Airlines, Dragon Air, Malaysia Airlines, Mekong Air, Qatar Airways, LOT Polish Airlines.
Basic financial data
The Balance Sheet and Income Statement are shown on the next page
Source: http://www.noibaicatering.com.vn/quote July 9th 2011 – 17:00)
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NOIBAI CATERING SERVICES JOINT-STOCK COMPANY
BALANCE SHEET For the year ending 2010 (Unit: VND)
Accounts receivable 34,163,571,355 19,868,445,940 Inventory 8,398,999,895 6,007,852,112 Short-term investments 10,000,000,000 18,839,374,000 Other curent assets 75,087,373 178,501,192
Property, plant, and equipment 73,499,301,819 69,776,196,552 (Less accumulated depreciation) 48,968,240,849 35,900,676,076 Intangible assets 36,401,673 26,140,560
Accounts payable 15,270,798,093 15,095,132,084 Income taxes payable 2,610,177,390 1,064,992,854 Accrued salaries and wages 10,109,710,997 5,920,481,793 Unearned revenue - 2,000,000 Other current liabilities 5,201,901,966 1,673,404,955
Total Liabilities and Owner's Equity 144,325,585,724 108,916,244,852
Figure 1: Balance sheet for 2009 and 2100
NOIBAI CATERING SERVICES JOINT-STOCK COMPANY
INCOME STATEMENT For the Year Ending 2010
Sales revenue 260,160,635,328 179,319,913,505 (Less sales returns and allowances) 2,090,309,356 324,717,997
Figure 2: Income statement for the year 2009 and 2010
(Source: http://www.noibaicatering.com.vn/quote July 9th 2011 – 17:00)
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ORGANIZATIONAL STRUCTURE
NCS’s organisation and the management
The company’s organizational structure are illustrated in the following chart:
The Shareholder Committee with its Monitoring Unit controls the Board Management and Board of Directors’ competence and activities
The Board of Management directly guides and controls the Board of Directors’ management
The Board of Directors with two members are responsible for running and managing all the business activities of the company’s line and departments.
Marketing and planning department
Head of the department: Mr Nguyen Van Tuy who reports to the Board of Directors
Deputy Head of the department: Mr Tran Doan Trung who reports to the Head of the
Two teams of marketing executives:
Mrs Nguyen Hoang Hoa (Team leader)
Mr Ho Thanh Tung Mrs Thai Nguyen Thanh Thuy
Mr Doan Hong Phong Team 2:
Ms Le Kim Ngoc (Team leader)
I belong to team 2 under Ms Le Kim Ngoc’s supervision
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THE MISSION: ASSIGNED TASKS AND GOALS
The position
The intern is appointed to be a marketing executive in the Marketing and Planning Department at NCS The position involves carrying out market research, market analysis, customer surveys and plan developing.
The tasks assigned
Our team is responsible for two major phases in the 2011-2016 project, market review and product strategy We have been assigned a variety of tasks ranging from data analysing, needs analysing to strategic planning More specifically, data analysis involves in-depth analyses and syntheses of data collected from market research carried out from November 2010 to May 2011 on different markets especially Asian countries Also, our marketing team is required to perform a detailed and systematic analysis of low cost airlines’ needs for in-flight food supply Several surveys will be conducted to find out what these airlines are really expecting from our company and what we can do to satisfy their needs Additionally, the team is in charge of working out product strategies in order to expand the market for NCS On the individual basis, I was assigned to perform brief analyses of background and design a draft product marketing plan The specific tasks are as detailed as in the following table:
Table 1: The tasks assigned over different periods Period Tasks assigned Targets to achieve Activities
- get to know the company and the Department
- do brief analysis on business environment
- get deep understanding of the company’s business, sources, capacity, customers,
- bring about a summary of the world economy, Vietnam’s economy, and aviation industry
- reach sound conclusions on the business environment
- point out business opportunities and risks for caterers in such business environment
- search related data from different sources, collect appropriate sources, synthesize and analyse them
- join regular discussions and meetings of the department to exchange ideas and get suggestions from teammates
- write a brief report on the business environment
- do an in-depth analysis of the company
- identify the weaknesses, the potential opportunities and the challenges
- collect data on the company from reports, articles, magazines, websites
- review previous years’ operation and financial reports to point out the success and the shortcomings
- design a stakeholder matrix August 15 th –
- carry out customer survey with the team
- discover Low Cost Carriers’ wants and expectations in the current situation
- identify the gaps in the market
- identify air travellers’ real needs
- join the interviews with key people of target airlines with the supervisor and teammates, record information
- distribute and collect survey questionnaires
- synthesize and analyze the collected data
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- assist teammates in research on competitors
- define the major rivals, their strengths and weaknesses through observations, site surveys
- synthesize the collected data for an analysis of their advantages, disadvantages and of the strategies they have been applying
- design a draft product plan - define the new product and strategic solutions
- review all the syntheses and analyses
- join team discussions and meetings for more suggestions
- submit the first draft to the Head of the Department and the supervisor for recommendation
- write the second draft October 3 rd –
- review the plan - point out the success and shortcomings
- carefully check the details of each part
- analyse the reliability and feasibility of each item such as pricing, distribution
- make a list of possible problems and suggestive solutions
The link between the subject matter and the mission
As the title of the report suggests, the focus of the internship at Noibai Catering Services Joint
Stock Company is developing effective strategies for market expansion It, therefore, can be seen apparently that the subject matter and my mission as well as well as the assigned tasks mentioned above are closely linked to each other All of those market-related syntheses and analyses I have to carry out are basic sources of data on which efficient strategies can be created to draw
12 customers’ to NCS’s product Also, the draft plan on the strategic product is directly linked to the five year project which aims at market expansion.
The goal to achieve
In general, the intern along with the team must develop an effective marketing strategy which best serves the company’s prime target of gaining at least two major customers providing cheap airline service by the end of 2012 and turn them out to be the regular customers
As far as the particular goal is concerned, the required outcome after my 4-month internship is a comprehensive market analysis and a draft product plan.
What can I bring to the company?
The mission along with such a great goal is, in fact , an exciting opportunity for an intern like me and I honestly hope to make significant contributions to the 5-year project in particular and to the sustainable growth of the company in general Firstly, all the data collected from market research and analysis focusing on air travel and catering are hoped to bring about in-depth understanding of the real demand and the supply, the customers, the competitors, and the company’s capability in catering market This kind of knowledge will surely help to create an effective strategy to attract customers to the company’s products Besides, I do hope to discover the right customers to target at The internship is also constructive in suggesting a new strategic product appealing to those new targets, in order to increase NCS’s competitiveness in the post recession Moreover, along with the new product, new distribution models which help reduce the handling cost will hopefully be recommended.
The theoretical knowledge to be put into practice
As mentioned earlier, I truly appreciate the knowledge acquired during my academic year in Master AMI and honestly value this occasion since I can put what I have learned into practice
We have covered various subjects in business which are generally beneficial to us Each course brings us certain knowledge and skills in dealing with related issues and is vitally essential and useful in every single task during my internship at NCS
A detailed description of how the related subjects are typically beneficial to my internship tasks is given hereafter
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The topics discussed in this course enable me to better my knowledge in economic issues and my understanding of globalization process and its role in each nation’s development I can also figure out the role of different organizations in the global economy as well as in each nation’s economy These sorts of knowledge help me a great deal in dealing with economic reports and in analyzing economic background for the plan
After the course, I am well aware of new challenges facing a manager in today’s highly competitive environment The course also equipped me with essential issues related to supply chain management thanks to which I know what to consider when making an analysis of external factors I am now able to design a stakeholder matrix and define which organizational structure will be appropriate for a certain phase or project Especially, the Tom Travis’ 6 tenets better my understanding of the key principles to run and manage a project well
The subject provides us with essential items we have to take into account when developing a plan I can figure out what to consider for a business plan or a specific strategy, what should be focused on, and what sort of information should be included to make the plan realistic
The lectures focusing on issues of market globalization, strategy preparation and strategic options are of practical usefulness Different techniques, models and tools in strategic planning and especially in strategic segmentation such as PESTEL, Porter’s five forces, SWOT analysis have been effectively put into practice while carrying out various analyses during the internship
The course keep us updated the facts, the changes and the way to stay adaptable in any circumstances I can understand generally what specific types of customers are expecting from our company basing on the geographical or cultural features and accordingly adjust our strategies to approach them Besides the lectures related marketing issues enable me apply marketing strategies appropriately into my draft plan
All in all, it is sincerely hoped that the missions which have been assigned will be accomplished so that we can achieve the target and bring more success to the company
DEVELOPMENT
BUSINESS ENVIRONMENT
According to IMF’s forecast in WORLD ECONOMIC OUTLOOK in April 2011, the world GDP growth is about 4.5% in 2011 and 2012, compared with 5% in 2010 Real GDP in advanced economies and emerging and developing economies is expected to expand by about 2.5% and 6.5 % respectively
Generally, global economic recovery has solidified and global industrial production and world trade have gained considerable momentum again Nonetheless, the activity is at uneven pace on geographical base and uncertainty remains elevated As is stated clearly in Allizan’s Working Paper 146, “there is now a whole bundle of negative supply and demand-side factors which in total pose a substantial risk to the world economy going forward These include:
• a possible further spike in oil prices triggered by the political turmoil in North Africa and the Middle East
• deterioration on the price front in the emerging markets (particularly in China)
• the need for budgetary consolidation in the eurozone and in the USA
• the natural catastrophes in Japan and the associated nuclear reactor accident”
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The current situation also reveals broadly-based risks to face namely high unemployment rate, especially young unemployment, increasing inflation, budgetary deficit, public debt
All in all, the world economic situation is still worrying despite recent significant recovery in several countries and this will certainly influence the aviation industry
As apparently presented in its August 2011 report the Economist Intelligence Unit (EIU) forecast Vietnam’s GDP growth to stand at 6% for the year 2011 and 6.6% for 2012
In addition, EIU predicts that Vietnam's inflation in 2011 will reach a peak when the CPI increases up to 19% but then slow down from 2012 By 2012, the CPI may increase 8.7% According to EIU, the interest rates still remain high within 2010 at 18.3% which will then go down slightly to 17.5% in 2012 From 2013, the rate will decrease to 12% a year and stop at 11.5% pa between 2014 and 2015
Vietnam's budgetary deficit is forecasted to be under controlled state at the acceptable level of below 5% of GDP in 2011, then it will go up again to 5.6 % in 2012 Reportedly, the current account deficit on GDP is estimated at as high as 4% in 2010, the lowest level in the 2010-2015 period, which tends to rise to 5.2% of GDP by 2014
It is also reported by EIU that Vietnam's external debts will continue increasing in coming years, up to $54 billion in 2015 Vietnam dong will still keep depreciating against US dollar throughout the period The exchange rate is forecasted at 21,019 and 21,685 dongs per US dollar by late
Generally, strong economic outlook along with the government’s appropriate policies and commitment on economic control and stable political environment keeps Vietnam stand out in terms of high growth rate and investment attraction over the next 40 years
Besides these favourable indexes, Vietnam’s tourism is booming Owning six UNESCO world heritage sites, 31 national parks, and more than 21 tourist sites, Vietnam is one of the five most attractive destinations in ASEAN both in terms of number of international visitors and revenue from tourism In 2010 alone, the country welcomed six million visitors and generated $3 billion USD in revenue from tourism
As the World Travel and Tourism Council’s (WTTC) forecasts Vietnam will be among the top
10 major tourist destinations in the world by 2016, which is considered to be a solid base for Vietnam aviation industry According to Vietnam Airlines and The Air Transport Association
(IATA), the air transport is predicted to continue growing in 2012 but with slower pace than in the previous forecast Vietnam Civil Aviation Department forecast that the growth rate of airlines with operation to/from Vietnam will reach 10%-13% in 2012
It can be seen that despite challenges arising during and after the global economic crises the outlook for Vietnam’s economy remains largely favourable and the years to come are likely to be prosperous for its domestic businesses and foreign investors
The economic recession in 2009 and the sharp fluctuation in oil price in 2008 had left severe impact on the airline industry Although demand for air travel is improving now with a remarkable recovery in the economy, the challenges the business faces are so obvious Continuous natural disasters, especially the disastrous earthquake and tsunami in Japan, serious unrest in the Middle East and North Africa, ongoing sovereign-debt crisis in Europe and high oil prices have given the airline industry a mighty hit Accordingly, the International Air Transport Association (IATA) halved its profit forecast for the airline industry from $8.6 billion to $4 billion in 2011
According to IATA, among the mentioned factors the dramatic rise in oil price is regarded as the biggest cause dragging down the industry's profitability, which has raised its average Brent crude forecast by 15% to $110 a barrel for this year in comparison with previous estimate that Brent crude would average $96 a barrel Airlines, therefore, will have to pay an extra $1.6 billion for every one dollar increase in the average annual oil price One IATA’s statement said that "with estimates that 50 percent of the industry's fuel requirement is hedged at 2010 price levels, the industry 2011 fuel bill will rise by $10 billion to $176 billion,” and "fuel is now estimated to comprise 30 percent of airline costs, more than double the 13 percent of 2001.”
It can be claimed that global airline industry has been experiencing a very hard time in the history of development Needless to say, in order for the industry to survive and to stay profitable, mapping out effective strategies is of vital importance for the time being More particularly, tightening operation cost including catering cost is likely to be the very first step that airlines should apply
(Sources: https://www.allianz.com/static-resources/en/economic_research/July 25 th 2011 – 19 :00 http://www.chinadaily.com.cn/cndy/2011-06/07/content_12646515.htm/ July 26 th 2011 – 19:00)
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Table 2: Outcome of SWOT Analysis
Facilities - well and fully-equipped
- of high quality which is closely monitored
- strictly in accordance with IFSA/ITCA guidelines
Supply - abundant within the country
Cost - reasonable compared with competitors
- well-equipped with superior industry knowledge
Staff - well-trained, skillful, dedicated and loyal
Brand - well-known with various prizes given by demanding airlines
- well-supported by Vietnam Aviation Corporation and its subsidiaries
- partly dependent on the government’s regulations and headquarters’ policies in strategic planning
- possible operational irregularities such as bad weather or technical problems
- Despite downturns, over time air travel tends to continue to grow and this airline market growth offers continual expansion opportunities for both leisure and business destinations
- Aviation market in Vietnam is increasing despite the economic recession Many airlines have increased their flights either domestically or internationally
- Vietnam Airlines has opened several new routes which offers NSC new customers
- Most of the current customers maintain their service policies
- Czech Airlines is expected to start their operation in November 2011
- Vietjet Air and Air Asia are likely to operate by the end of 2011 under the association with the catering service supplier
- Jetstar Pacific and Tiger airways are targeting the model of association in supplying in-flight food
- Airlines are tightening their operating costs due to negative changes in global economy, high oil price and unfavourable taxes in several countries
- Northeast Asian and Southeast countries are loosening their policies on air transport, therefore, there are many airlines especially low cost carriers namely Air Asia, Tiger Airway, starting operation in the area, which leads to tougher competition in the business
- Hongkong Airlines reduced flight frequency and may use the double catering service provided by Hongkong International Airport
- Air Mekong ends its contract with NCS
- Several airlines have issued policies of cost reduction (especially cost of catering and handling) due to global somber economic situation, high oil price, tax policies and fluctuating exchange rate
- Airlines are likely to put
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- On domestic basic: The only competitor is Air-Mekong which has just started running a small-scale catering service
- Air Mekong has operated its self-supply base Although it merely influences high standard companies in the industry such as NCS, it may establish a trend of self- sufficiency among the peers
- Singapore Airlines, one of the major competitors tends to expand its operation with various types of attractive services
- NCS is based in an agricultural country where food supply is increasingly abundant thanks to appropriate investment from the government
- NCS has established good relationships with suppliers through out the country
- Agreements have been signed with foreign suppliers from Thailand, Indonesia
- Inflation rate is still at high level which strongly affects the price of materials
- The increasing breeding cost and widespread diseases will also lead to the rise in food supply especially seafood and pork, which are the two most popular materials
- There’s a gap in the market for low-cost food served on planes
- The government’s policies are not sufficiently detailed to support flexible decisions on particular client in specific period of time
- There has not been a product design or pricing strategy for Low Cost Carriers or Near Low Cost Carriers so far
MINOR ASSESSMENTS
The outcome of the SWOT analysis above leads to the specific statements on the real needs as follow:
The market share for LCC and NLCC is increasing
• Low Cost Airlines and Near Low Cost Airlines in domestic market including Jet star Pacific, Air Mekong, Vietjet-Air Asia, Indochina Air make up 30% of the market
• Other international Low Cost Carriers and Near Low Cost Carriers which are planning to stop at Hanoi are Air Asia, Tiger Airway, JetStar, Trans Asia Airways and joint-ventures between Air Asia and Japanese and Korean airlines which are hoping to join the market in the near future will probably account for an increasingly big market share
Passengers’ demand for in-flight food and drink is growing
• Influenced strongly by the economic recession, more and more people tend to satisfy their need of air travel by low cost airlines
• There is a true the demand for in-flight food and drink with Vietnamese typical consuming habits
• There is an apparent demand for in-flight food and drink due to the inconvenient chosen slots, which is early hours or late hours, by Low Cost Carriers and Near Low Cost Carriers
• That Low Cost Carriers are planning over-5- hour flights (to Japan, Korean, Australia ) generates real needs for food
It can be seen that there exists a real market opportunity of providing in-flight food to LCC and NLCC The demand is forecast to be bigger due to the fact that more and more LCC and NLCC joining this market It is therefore highly advisable that NCS pay more attention and effort in order to be ahead of the game to meet the carriers’ real needs and to dominate this niche before other caters can join
On local scale: Air Mekong a small airline applying the self-supply scheme at the same time
Thư viện ĐH Thăng Long low capacity almost inexperienced in catering industry small-scale service making ambitious plans to offer catering services to other airlines
On international scale: Singapore Airlines, TG airlines, and EVA well-earned reputation large capacity excellent experience in aviation transport and catering industry However, their competitive edge is just equally comparable
Their prices are often higher than NCS’s due to high costs of material and labour Their quality is almost equal to NCS’s.
STRATEGY AND ACTION PLAN
As can be seen clearly from the analysis above, while the economic situation is relatively gloomy, the demand for air travel all over the world is increasing Nonetheless, air travellers tend to use lower cost airlines which can not only satisfy their need of fast travel in the best way but also charge them a reasonable price Besides, cheap flights these days are not limited within short distance any longer, which brings about the demand for food during the long flight In the current business situation, with an attempt to lower costs to make their flight cheaper, the questions of how to provide passengers with cost-effective products while staying profitable is put forward Low cost airlines have taken in-fight food into serious consideration And at NCS we think this is a great opportunity for us In-flight packaged meals are hoped to fulfill these airlines’ needs and wants
In carrying out the analysis of the product, it is well recognized that in addition to satisfying conventional requirements of traditional airlines namely nutrition quality, hygienic safety, and organoleptic requirement, one of the most concerned matter is the costs, which include the cost for the meal itself and the cost of service and handling Below is a brief outcome:
Table 3: Product Requirements and Solutions
1 Food - sell the meal to those passengers in need
- minimise the number of unsold meals
- minimise the numbers of out-of- expiry meals due to low demand on certain flights
- LCC recognize passengers who require in-flight food and drink through ticket agencies or booking systems
- Caterers design simple and light meals which can be preserved for a long time under appropriately controlled condition on planes
- Generic meals ( no choice) and frozen meals
2 Handling - very low or hardly charged
- Food will be provided right at NCS’s restaurant chain at the airport
- Handling cost may be included in the price of the meal
- minimise the number of flight attendants
- Food served with disposable tools will be provided at NCS’s restaurant
- save costs on petrol - diminish the in-flight meals with related tools
The choices of food and drinks are usually limited in a certain range agreed in advance between NCS and LCC Passengers who need food and drink on planes have to place the order and pay when booking or buying tickets The data will then be passed through to NCS which is to supply the required orders
By this way, LCC can monitor the required meals and therefore diminish the number of unsold ones
Generic meals are the same meals for all passengers on a flight during a particular period
Frozen meals are the food which will be frozen after cooking to increase the preservation time
Passengers who have placed their requirements for food brings the certified codes to NCS’s restaurant chain at the airport to get their packaged meals before boarding to serve themselves on planes or NCS will take the meals onto the plane where passengers receive their ordered food
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It is essential to take a brief look on the traditional in-flight meal to identify prominent features that the proposed product offers a Traditional meals: diversified with different dishes either on local basis or international basis, which result in the high cost due to:
- different sources of material supply required at one time
- high labour cost in preparing and producing
- possible waste if passengers do not eat or do not feel like eating during their flights served in a big tray with a full set of tools namely knife, spoon, fork, chopsticks, as shown in the illustration below:
This, again, causes the high cost of operation because of:
- high cost of handling from the caterer’s restaurants to planes
- high labour cost on serving and clearing the meals b Proposed meals
Food is prepared in the form of ready-made package or packet just to meet the basic need of passengers on a long flight
Price will be dramatically lower than traditional in-flight meals
The quality is guaranteed thanks to plentiful sources of material supply within the country, a team of skilled chefs and over 30 years’ experience in catering industry
Packed or wrapped in a paper or film bag, the product which is light weight and space- saving can offer the airlines enormous benefits as listed below:
• the airlines carry less weight so the payload is surely lower
• if the food is served at the airport, that can help to reduce cost of handling
• the passengers serve themselves with the given package so airlines can remarkably reduce the number of flight attendants for a particular flight, and thus, can save the cost and time of in-flight service
• the product is really user-friendly and of huge convenience as the passenger can eat the food at anytime they want without waiting for the scheduled service as usual
• the product is environmentally-friendly as it can help lessen the amount of rubbish and waste
• most importantly, airlines can reduce the consumption of oil, which is really worth considering
Overall, the product is promising to meet the real need of low cost airlines that is to sell the lowest fares with the highest quality
The new product is aimed at low cost airlines which are looking for a solution to their in-flight service including food supply On the particular note, over the period of 2010-2012 it is targeted at Jetstar, Air Asia for the following reasons:
In order to lower handling cost the food can be distributed :
- At NCS’s restaurants inside the airport
- On planes (under the association contract)
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CONCLUSION
Three months have passed and I am on completing my internship which has been of huge success from my perception, my supervisor’s as well as my teammates’ I have undertaken particular tasks and reached specific targets First of all, I have collected useful data from which a panoramic picture of business environment could be drawn Second, I have carried out market research and a SWOT analysis which not only highlighted the opportunities await for our company but also pointed out the challenges we might face I also identified what competitive advantages NCS owns to confidently participate in the competition and who should be our major rivals Such questions as what way we at NCS have been doing and will do better than our competitors, what our competitors can do better than us, whether NCS is exploiting the most of the opportunities available, or how the company should respond to changes in its external environment could be fully answered Thanks to the data collected I was able to build up a draft plan in which I could figure out what exactly our customers were expecting from us, what sort of product could satisfy such expectations, who exactly we should target at and how we were going to distribute the new product
The internship is claimed to make significant contribution to the progress of Marketing and Planning Department in particular and to the long-term project of the company in general It has achieved the expected goal and all the outcome is considered to be a solid base for further use and reference With positive suggestions on how to carry out an analysis of internal factors and external factors, what should be considered when surveying customers, or the ideas on balancing the 4Ps in the marketing mix and the pricing strategy I have contributed effectively in the success of the department in the first phase (Market Review) of the project Moreover, all the data syntheses and analyses which prove my great effort are inevitable sources for more intensive studies and research required in later phases of the project Partly thanks to my analysis, new customers have been discovered and are becoming attractive targets for the company Another contribution I have made is the proposed product which is considered to be feasible for NCS’s progress of market expansion Besides, two distribution models which hopefully help lower handling cost have been suggested Most importantly, my draft plan brought about a pioneering idea in terms of product innovation It has been regarded as a well-prepared one which was, on the one hand, an inevitable part in Phase 3 (Product Strategy) that the Department was
26 responsible for It, on the other hand, opened a new direction for the company’s long-term strategic product plan
Prepared in limited time and with limited practical knowledge, the draft plan reveals several shortcomings which should be considered more seriously and dealt with more promptly so as to formulate a better and more complete product plan The details are explained as below:
The price of the proposed product has not been defined due to fluctuations in the consumer price, the price of raw material and interest rates
Packaging may be problematic within “”clean- green” but low-cost orientation
Diversification of the product is not guaranteed as data of passengers’ real needs on certain dishes have not been synthesized
Two suggested models of distribution stated in Chapter 4 raise the question of restaurant staff and management, and the model of association or contract between NCS and airlines
Competitors have not been sufficiently studied Major competitors may join the market with flexible strategies The model of self-supply of in-flight food is not an exception which has not been considered adequately
The plan has not mentioned possible risks of insufficient supply which may arise due to unexpected weather phenomena
Basing on the above shortcomings, several suggestions have been put forward
A more detailed cost estimate should be made with serious consideration of possible changes in inflation rate, prices of supply, and interest rates
There should be a competition through which best ideas of wrap, bag or film samples could be selected NCS needs to consult professionals so as to have the most effective method of packaging Referencing other models is also a good idea The packaging must not only be appealing to passengers but also leave them a feeling of safety either hygienically or environmentally
An intensive survey on potential passengers’ view of the food alternatives and their special requirements must be carried out From the data collected, choices of dish ranges should be considered and decided These ranges had better be changed according to the routes over a particular period of time This way can guarantee the diversity of food which meet the needs of passengers coming from different cultures
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NCS’s restaurants need reorganizing for the new type of business A team responsible for packaged meals is necessary to undertake the activities involved Training courses on managing and handling the business are of vital importance to ensure that the restaurants can run smoothly
It is advisable that NCS take into account the fact that Singapore Airlines or TG Air may move down market in order to increase their market share in the period of post-recession That many airlines might copy Air Mekong’s self-supply model must be taken into consideration Therefore, NCS should develop a promotion campaign with various means and methods to establish the awareness for the new brand
Drastic changes in global climate are causing more unexpected unfavourable weather conditions which may lead to instability of material supply A detailed plan for preservation especially during high season must be made
It can be concluded that the internship at NCS is an extremely worthwhile experience It offered me great opportunities where I could turn the theoretical knowledge acquired during AMI course into practice efficiently and where I was able to better various skills In fact, I got a deep and inspiring insight in the international marketing research as well as the work of a marketing executive Working in a team with regular meetings and discussions and site trips also helps sharpen my skills I can work much better in a team and manage time more effectively after three months Besides, that the job requires frequent travel and tight deadlines made me become more organised and energetic Also, regular business site trips brought me plentiful opportunities to improve my communication skills with potential foreign customers and to widen my relationships Last but nor least is what I learnt from the company supervisor and from my lovely, experienced teammates They are so friendly, helpful and cooperative staff members who took a lot of effort to make it a helpful journey for me in every way Their broad understanding in marketing as well as in the catering business along with constant eagerness to learn more has given me fresh inspiration in this job and environment
All the benefits I gained during the internship will surely help me a great deal in my career from now on I truly believe that NCS will soon achieve their goal and be more and more successful with its vision and strategy
CHRISTOPH H.LOCH and ARND HUCHZERMEIER, Hiding behind risk in fear of innovation, Financial Times Mastering, 2000, Volume 1, pp147-151
PETER L.BERNSTEIN, The enlightening struggle against uncertainty, Financial Times Mastering, 2000, Volume 1, pp 5-9
ERIC MILLIOT, Stratégies d’internationalisation, Fascicule FAD, IAE, Université de Poitiers,
JODY HOFFER GITTELL, The Southwest Airlines Way: Using the power of relationships to achieve high performance, McGraw-Hill companies, Inc, 2003
SAK ONKVISIT and JOHN SHAW, International Marketing – 4 th Ed, New York: Routledge,
3 WEB RESOURCES http://www.noibaicatering.com.vn http://www.allianz.com http://www.chinadaily.com.cn
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Table 1: The tasks assigned over different periods 10 Table 2: Outcome of SWOT Analysis 17 Table 3: Product Requirements and Solutions 22
Figure 1: Balance sheet for 2009 and 2010 10 Figure 2: Income statement for 2009 and 2010 11 Figure 3: Company's organizational structure 13
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IAE NICE Institut d'Administration des Entreprises de Nice
NCS Noibai Catering Services Joint-Stock Company
NLCC Near Low Cost Carrier