7/27/2019 Project Finale

1/33

International management

Business project

7/27/2019 Project Finale

2/33

Mc Donalds

Firm from US and afamous brand

about fast food all overthe world

7/27/2019 Project Finale

3/33

OUTLINE

I. INTRODUCTION

II. VIETNAM MARKET ANALYSIS

III. SWOT ANALYSIS

IV.MARKET PRESENTATION STRATEGY

V. CONCLUSION

7/27/2019 Project Finale

4/33

I. INTRODUCTION

64 million customers daily

7/27/2019 Project Finale

5/33

I. INTRODUCTION

PRODUCT

7/27/2019 Project Finale

6/33

I. INTRODUCTION

REASON?

7/27/2019 Project Finale

7/33

II. VIETNAM MARKET ANALYSIS

POLITICAL

- OPEN TO FOREIGN INVESTMENT

- Government is paying more attention to the benefits and interests of customers

- Business firms must meet the requirements on product safety, labor laws, truth in adverts, environmental issues, and

customers interest and so on

7/27/2019 Project Finale

8/33

II. VIETNAM MARKET ANALYSIS

ECONOMICMEMBER OFWTO11.01.2007Conduct tariffreduction

Bind all tariff lines

Remove non-tariff barriers in a time certain

7/27/2019 Project Finale

9/33

II. VIETNAM MARKET ANALYSIS

ECONOMICSTEADY ECONOMIC GROWTH

In 2012, Ha Noi at around $ 2,200 /person

In Ho Chi Minh Cityis $ 3,600 / person

7/27/2019 Project Finale

10/33

II. VIETNAM MARKET ANALYSIS

ECONOMICEmerging market

Ground floor and growing opportunitiesfor foreign exporters and

investors

In 2020: Stabilize the economy

Build world-class infrastructure

Create a skilled labor force

Strengthen market-based institutions

7/27/2019 Project Finale

11/33

II. VIETNAM MARKET ANALYSIS

SOCIAL CULTURE

CulturePopulation = 89.2 millionFood is a very important part of Vietnamese culture

7/27/2019 Project Finale

12/33

II. VIETNAM MARKET ANALYSIS

SOCIAL - CULTUREConsumption habits

- Vietnamese like to buy at a cheap price- Careful in buying decision

- Not loyal to one product, but some are likely to choose the products they trust

- Vietnamese prefer to try products by themselves than to believe salespersons

7/27/2019 Project Finale

13/33

II. VIETNAM MARKET ANALYSIS

TECHNOLOGY

- Vietnam is a rapidly developing country in technology.

- Modern and high-tech equipment are in use

- Standard of living has improved is offered various products and services

on demand

7/27/2019 Project Finale

14/33

II. VIETNAM MARKET ANALYSIS

LEGISLATION

-Enacted Constitution in 1992-The Law on Investment in Viet Nam

-The Law on Enterprises in Vietnam

-Weak and evolving legal system

-Judiciary is controlled by the ruling party (CPV).-Potential government interference to satisfy their own agenda

7/27/2019 Project Finale

15/33

II. VIETNAM MARKET ANALYSIS

COMPETITION

The Vietnamese competitors: sidewalk bakeries

7/27/2019 Project Finale

16/33

II. VIETNAM MARKET ANALYSIS

COMPETITION

The foreign competitors:

KFC

Operated for 16 years in Vietnam (1997)134 shops

Young population and children

7/27/2019 Project Finale

17/33

II. VIETNAM MARKET ANALYSIS

COMPETITION

The foreign competitors:

Loatteria

Invested in Vietnam from 1998

146 restaurants

Steady expansion strategy

7/27/2019 Project Finale

18/33

II. VIETNAM MARKET ANALYSIS

The cost of franchising

Regarding the franchising fees, the initial fee would be no less than

$45.000

Become a mcdonalds partners , they must be very rich.

7/27/2019 Project Finale

19/33

III. SWOT ANALYSIS

STRENGTHes

-Brand equity..world wide

-Enthusiastic and responsible staffs

-Strong public relations strategies

-Good quality assurance and good customer service

-Low price of products

-Ability to learn from competitors mistakes

7/27/2019 Project Finale

20/33

III. SWOT ANALYSIS

WEAKNESSes

-Late Entry

-Disgruntled franchises

-Limited Menus than competitors

-Contribution to obesity

7/27/2019 Project Finale

21/33

III. SWOT ANALYSIS

OPPORTUNITies

-International expansion

-Increase in demand for fast food in Vietnam

-Innovation in product and services

-Fast food penetration still low which is --an opportunity for growth

-Huge pool of skilled labor force

7/27/2019 Project Finale

22/33

III. SWOT ANALYSIS

THREATS

-Strength of existing competitors

-More local and foreign competitors rising quickly

-Government policies on fast food and healthy meal

-Outbreak of bird flu

7/27/2019 Project Finale

23/33

IV. MARKET PRESENTATION STRATEGY

PRODUCT STRATEGIES

1. Permanent Product Strategy

2. Temporary Product Strategy

3. Local Product Development Strategy

4. Local Adaptation Strategy

7/27/2019 Project Finale

24/33

IV. MARKET PRESENTATION STRATEGY

PRODUCT STRATEGIES

1.Permanent Product Strategy

-Menu is permanent

-There is always something familiar for consumers on the

menu

7/27/2019 Project Finale

25/33

IV. MARKET PRESENTATION STRATEGY

PRODUCT STRATEGIES

2.Temporary Product Strategy

-The McRib - product is offered only seasonally

-The Big Ocean was offered only for a few months in 2007

7/27/2019 Project Finale

26/33

IV. MARKET PRESENTATION STRATEGY

PRODUCT STRATEGIES

3. Local Product Development Strategy

Local customers have foods to fit their tastes.

7/27/2019 Project Finale

27/33

IV. MARKET PRESENTATION STRATEGY

PRODUCT STRATEGIES

4. Local Adaptation Strategy

-Quality breakfast -Convenience

-Menu additions -Value for money

-Delivery services

7/27/2019 Project Finale

28/33

IV. MARKET PRESENTATION STRATEGY

PRICE STRATEGIES

-Cheaper rate

-Competitive price

-Combo packs

7/27/2019 Project Finale

29/33

IV. MARKET PRESENTATION STRATEGY

PROMOTION STRATEGIES

Spokesman - Ronald McDonald

Radio and television advertising

"Healthy" menu items

7/27/2019 Project Finale

30/33

IV. MARKET PRESENTATION STRATEGY

DISTRIBUTION STRATEGIES

-HCM city is the first best city conditions restaurant to open

-Expending in other large urban centers

-McDonalds will partner with the Vietnamese Ministry of Agriculture

7/27/2019 Project Finale

31/33

IV. MARKET PRESENTATION STRATEGY

PLANT OF IMPLEMENTATION---Using a scheme that will satisfy Vietnamese employees---Conductinga comprehensive market survey of competitors store locations in

Vietnam combined with demographic data

---Continuing to have the right products at the right price

---Distributing outlets into showplaces

---Keep promoting the brand in Vietnam

7/27/2019 Project Finale

32/33

IV. CONCLUSION

Maintaining the core strengths

Emphasis on consistency and quality

Testing with innovative options

McDonalds fast-food image

7/27/2019 Project Finale

33/33

Thank you for lovingmC donalds