MARKETING MIX FOR PHO HIEN RESTAURANT

ANDREWS UNIVERSITY GRIGGS UNIVERSITY GLOBAL ADVANCED BACHELOR OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT ANALYSIS AND RECOMMENDATIONS FOR MARKETING MIX OF PHO HIEN RESTAURANT Group: Nguyen Tien Hoang - 113545 Tran Hong Manh - 111868 Nguyen Thu Ha - 116275 Le Thi Dung - 117001 Supervisor: MSc. Tran Dieu Linh Hanoi 2014 Nguyen Tien Hoang Tran Hong Manh Nguyen Thu Ha Le Thi Dung Page 2 ABSTRACT: Competition is one of the most basic characteristics of the market. Therefore, the operations of the market must follow competition rules. Businesses are constantly competing each other to gain relative advantages over their competitors. For effective competition, it would not be enough for a company to solve issues about financial, productive and technological potentials but the necessary and vital thing would be the company would properly organize and bring into full play the marketing mix of the company, especially the one specializing in the business of marketing mix service and system. Pho Hien restaurant is a part of Pho Hien Hotel, a great and prestigious hotel in Hung Yen city. With the advantage of the brand, Pho Hien is holding strong advantages to catch the opportunity in the modern tendency to maintain its position. During the internship at the Pho Hien restaurant, with the aim of developing restaurant business, completely meeting customers’ requirements and promoting the competition of the restaurants within Hung Yen city, we decided to select the topic “ANALYSIS AND RECOMMENDATIONS FOR MARKETING MIX OF PHO HIEN RESTAURANT”. The purpose of the report is to analyze the strengths and weaknesses of this restaurant in the marketing field. From there, we will have a better overview and get the right strategy to help Pho Hien become better. We know that one requirement for a company’s marketing strategy is the ability to manage all corporal target markets. Corresponding to each target market segment, marketing mix strategies can be effectively implemented by changing the “Seven P Formula” (product, price, place, promotion, people, physical evidence, and process) to adapt to the developments and specific situations of the target market. This thesis is aimed at mapping out marketing mix strategies suitable for the Pho Hien restaurant. Nguyen Tien Hoang Tran Hong Manh Nguyen Thu Ha Le Thi Dung Page 3 ACKNOWLEDGMENT We would like to sincerely thank and express our gratitude whole-heartedly to our academic supervisor and examiner Lecturer Tran Dieu Linh for her continuous help and support throughout the whole project. We would like to thank Mrs. Do Thu Ha for her guiding on the process of this Capstone project. We also take this opportunity to express a deep sense of gratitude to Pho Hien restaurant and all staff for the support, valuable information and guidance us to complete. STATEMENT OF AUTHORSHIP We, Nguyen Tien Hoang, Tran Hong Manh, Nguyen Thu Ha, Le Thi Dung confirm that this thesis has been composed by our group, and describes our own work, unless otherwise acknowledged in the text. If the paper has been authored by more than one person, we confirm that all parts of the paper have been clearly assigned to the respective author. This work has not been and will not be submitted for any other degree or the obtaining of Griggs University or any other institution of higher education. All sentences or passages quoted in this paper from other people's work have been specifically acknowledged by clear cross-referencing to author, work and page(s). Any illustrations which are not the work of the author have been used with the explicit permission of the originator and are specifically acknowledged. Nguyen Tien Hoang Tran Hong Manh Nguyen Thu Ha Le Thi Dung Page 4 Signatures of capstone members: Print name above Signature Date Print name above Signature Date Print name above Signature Date Print name above Signature Date Nguyen Tien Hoang Tran Hong Manh Nguyen Thu Ha Le Thi Dung Page 5 ORGANIZATIONAL CONTACT INFORMATION • Date of Application: 10th November 2013 • Organization Name: Pho Hien Restaurant • Organization Address: 58 Pham Ngu Lao, Hung Yen city, Hung Yen Province • Project Liaison Name: Ho Dai Vuong • Project Liaison Title: Director • Project Liaison Phone: 0988 749 888 Nguyen Tien Hoang Tran Hong Manh Nguyen Thu Ha Le Thi Dung Page 6 TABLE OF CONTENTS 1. ORGANIZATIONAL DESCRIPTION 10 1.1 Over Look: 10 1.2 Mission: 10 1.3 Scope of work: 10 1.4 SWOT analysis 11 1.4.1 Strengths: 11 1.4.2 Weaknesses: 12 1.4.3 Opportunities: 13 1.4.4 Threats: 14 1.5 Department’s functions: 14 2. LITERATURE REVIEW 17 2.1 Overview on marketing: 17 2.2 The role of marketing in restaurants: 17 2.3 Definition of marketing strategy: 18 2.3.1 Marketing strategy in restaurants: 18 2.3.2 Market segmentation: 19 2.3.3 Target market: 20 2.3.4 Market differentiation and positioning: 21 2.3.5 Marketing mix: 22 3. METHODOLOGY 32 3.1 Data Collection: 32 3.2 Data Analysis: 32 4. ANALYSIS & FINDINGS 34 4.1 Marketing objectives and policies for the future of Pho Hien restaurant: 34 4.2 Segmentation, Targeting and Positioning: 34 4.3 Survey Result Analysis: 36 4.3.1 Question 1, 2 and 3: 38 4.3.2 Question 4, 5 and 6: 39 4.3.3 Question 7: 40 4.3.4 Question 8: 41 4.3.5 Question 9, 10 and 11: 42 4.3.6 Question 12: 43 4.3.7 Question 13 and 14: 44 4.3.8 Question 14 and 15: 45 4.3.9 Question 16: 46 4.3.10 Question 17: 46 4.4 Marketing Mix Analysis of Pho Hien: 47 Nguyen Tien Hoang Tran Hong Manh Nguyen Thu Ha Le Thi Dung Page 7 4.4.1 Product/Service: 47 4.4.2 Price: 50 4.4.3 Place: 51 4.4.4 Promotion: 52 4.4.5 People: 53 4.4.6 Physical Evidence: 55 4.4.7 Process: 57 4.5 Evaluation of Marketing Mix activities of Pho Hien: 60 4.5.1 Segmentation, Targeting and Positioning: 60 4.5.2 Product/Service: 60 4.5.3 Price: 61 4.5.4 Place: 61 4.5.5 Promotion: 62 4.5.6 People: 62 4.5.7 Physical Evidence: 63 4.5.8 Process: 63 5. RECOMMENDATIONS 64 5.1 Strengthening the organization of marketing models: 64 5.2 Marketing mix policy: 65 5.2.1 Segmentation, Targeting and Positioning: 65 5.2.2 Product/Service: 65 5.2.3 Price: 66 5.2.4 Place: 66 5.2.5 Promotion: 67 5.2.6 People: 69 5.2.7 Physical evidence: 70 5.2.8 Process: 71 6. CONCLUSION, IMPLICATION AND FURTHER STUDY OPPORTUNITY 72 6.1 Conclusion: 72 6.2 Implication: 72 6.3 Limination: 73 6.4 Further Study Opportunity: 73 7. REFERENCES 74 8. APPENDIX 76 A. THE CUSTOMER OPINION SURVEY ABOUT PHO HIEN RESTAURANT (VIETNAMESE) 76 B. THE CUSTOMER OPINION SURVEY ABOUT PHO HIEN RESTAURANT (ENGLISH) 78 C. THE INTERVIEW WITH MR HOANG QUANG HUY (VIETNAMESE) 80 D. THE INTERVIEW WITH MR HOANG QUANG HUY (ENGLISH) 81 Nguyen Tien Hoang Tran Hong Manh Nguyen Thu Ha Le Thi Dung Page 8 LIST OF FIGURES, TABLES AND PICTURES Figure 1.1 Organizational chart Figure 2.1 Segmentation targeting strategy Figure 2.2 The Marketing Mix Figure 2.3 Levels of product Figure 2.4 Promotion objectives Figure 4.1 Competitor Analysis Figure 4.2 Dishes Figure 4.3 Staff assessment Figure 4.4 Convenience of restaurant location Figure 4.5 Party/Wedding reception organization Figure 4.6 The facilities Figure 4.7 Favorite foods Figure 4.8 Why did you order a party at our restaurant? Figure 4.9 Menu Figure 4.10 The satisfied of customers about the cheapness of a party table Figure 4.11 The reason to know Pho Hien restaurant. Figure 4.12 Three levels of product Figure 4.13 Diagram of departments in the restaurant and its function Figure 5.1 Marketing department model Table 1.1 The SWOT analysis of Pho Hien Table 1.2 Table of staffing statistic Table 4.1 Table of menu Table 4.2 Soft drinks Table 4.3 Price table Table 4.4 Form of deposit Picture 4.1 Chuong Pagoda Picture 4.2 Dining room Picture 4.3 Fire fighting system Picture 4.4 Flower gate Picture 4.5 Wedding room Nguyen Tien Hoang Tran Hong Manh Nguyen Thu Ha Le Thi Dung Page 9 PROJECT FIELD: Marketing Research objective: Based on marketing theory and awareness, together with a scientific approach, the authors have studied, analyzed and evaluated marketing situation at the Pho Hien restaurant in order to point out some good points and limitations and come up with some solutions aimed a perfect the marketing mix of the restaurant. Research scope: Research scope: In this research, the authors studied marketing mix activities for Pho Hien restaurant, using the “Seven P Formula”: product, price, place, promotion, people, physical evident, and process. Nguyen Tien Hoang Tran Hong Manh Nguyen Thu Ha Le Thi Dung Page 10 1. ORGANIZATIONAL DESCRIPTION 1.1 Over Look: Pho Hien Hotel is an older historic hotel, which has developed in a long time. Since 2001, the hotel has put the restaurant system into the business activities. Initially, the size and area restaurants are also quite limited. It often is not enough space to organize and meet the needs of the conference or large-scale festivals. Therefore, in the beginning 2007, the restaurant has expanded business area, created the space with capacity up to 250 guests. The restaurant has a nice location in the city centre; this is food address for people with beautiful space and good service. 1.2 Mission: With a quick, professional, friendly, and clean facility, Pho Hien restaurant commits to bring customers the satisfaction after stress and hours of work 1.3 Scope of work:  The restaurant specializes in providing services and organizing banquets: parties, birthdays, weddings.  The restaurant always creates an environment, an organization, a service professionally.  The restaurant creates favorable conditions, strict management, completes the outline plan.  The restaurant implements the working mode, applies the appropriate form of labor to improve the lives and incomes of workers and employees of the company.  The restaurant foster and improves education level and professional for staff and employees.  The restaurant implements tax obligations to The State.  The restaurant protects the company, protect the environment, and preserve social order and security. [...]... (given by legal information from figure 4.3 principle of marketing) : Nguyen Tien Hoang Tran Hong Manh Nguyen Thu Ha Le Thi Dung Page 20 Figure 2.1 Segmentation targeting strategy A: Undifferentiating marketing Enterprise marketing Market B: Differentiating marketing Marketing mix 1 Area 1 Marketing mix 2 Area 2 Marketing mix 3 Area 3 C: Concentrated marketing Enterprise marketing mix Area 1 Area 2... Manh Nguyen Thu Ha Le Thi Dung Page 21 2.3.5 Marketing mix: The marketing mix is the controllable, tactical marketing tools – product, price, place, promotion, people, process, and physical evidence For tangible products, Marketing Mix is composed of four components Product, Price, Place, and Promotion However, for services (intangible products), the Marketing Mix adds three more elements as People, Physical... theory of marketing, which tools of marketing mix the authors use to evaluate a Pho Hien restaurant Secondly, the authors chose type of primary data to follow In particular, this can be gathered by communication method, which is survey Survey is the tool used for data collection The authors surveyed a sample of 80 customers in Pho Hien restaurant in order to find out what they think about this restaurant. .. general and restaurant business in particular, a marketing mix strategy is a local one, showing the relationship between businesses with business environment, the market, customers and with rivals It consists of specific strategies on target market, marketing mix and marketing budget With the point of view in mind, we can generalize and systemize marketing mix strategies as follows: Marketing mix strategies... hotels in Hung Yen province Pho Hien restaurant is one of the first big restaurants with a long seniority It has experienced in area of restaurant business, and it has built a great brand, that many people know and trust S2_ Good Staffs: One of the most important factors of restaurant service is having good staffs Besides the good price and a famous brand name, Pho Hien restaurant always considers... bring the cosy for restaurant space At the large banquet room, the restaurant also installed an air conditioning system includes four air conditions for big banquet The restaurant has a great investment in infrastructure in order to improve its position The image of the restaurant is enhanced and it will attract more customers 1.4.2 Weaknesses: W1_ Ineffective IT system: Until now, Pho Hien restaurant. .. due to the subjectiveness of the restaurant so they has not yet developed this program Customers cannot find information Nguyen Tien Hoang Tran Hong Manh Nguyen Thu Ha Le Thi Dung Page 12 about restaurants, as well as promotions on the internet They must to go to the restaurant to retrieve information or call the restaurant W2_ Simple Organization Structure: Pho Hien restaurant has quite simple structure;... 2.2 The role of marketing in restaurants: Marketing takes part in handling basic matters of restaurant activities Following (Jim Riley, 2012) like other businesses, restaurants must choose and deal with basic matters of restaurant business activities • The kind of service products a restaurant would like to offer to the market must be determined The marketing department will help the restaurant manager... Thi Dung Page 33 4 ANALYSIS & FINDINGS 4.1 Marketing objectives and policies for the future of Pho Hien restaurant: The objective in the future is constantly expanding customer market, systems and technical infrastructure for operation of the restaurant business, customer relationship, suppliers and partner The restaurant need to equipped adequate facilities for the business, strengthen the quality of... to improve their skills The restaurant do the business with the motto "Productivity, Quality and Efficiently" and create unity in the organization, create synergy to fulfill the assigned tasks, strive to build Pho Hien restaurant become more strong in the field of catering business Pho Hien restaurant is implementing marketing policies in order to maintain and improve the restaurant revenue in the future . into full play the marketing mix of the company, especially the one specializing in the business of marketing mix service and system. Pho Hien restaurant is a part of Pho Hien Hotel, a great. Strengths: S1_ Famous Brand: Pho Hien restaurant is a subsidiary of Pho Hien travel and hotel Corporations Joint Stock that has always been the leading hotels in Hung Yen province. Pho Hien restaurant is one. 21 2.3.5 Marketing mix: 22 3. METHODOLOGY 32 3.1 Data Collection: 32 3.2 Data Analysis: 32 4. ANALYSIS & FINDINGS 34 4.1 Marketing objectives and policies for the future of Pho Hien restaurant: