International management

Business project

Mc Donald’sFirm from US and a famous brand

about fast food all over the world

OUTLINEI. INTRODUCTION

II.VIETNAM MARKET ANALYSIS

III.SWOT ANALYSIS

IV.MARKET PRESENTATION STRATEGY

V.CONCLUSION

I. INTRODUCTION

64 million customers daily

I. INTRODUCTION

PRODUCT

I. INTRODUCTION

REASON?

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 customer’s

interest and so on

II. VIETNAM MARKET ANALYSIS

ECONOMICMEMBER OF WTO11.01.2007Conduct tariff reduction

Bind all tariff linesRemove non-tariff barriers in a

time certain

II. VIETNAM MARKET ANALYSIS

ECONOMICSTEADY ECONOMIC

GROWTH

In 2012, Ha Noi at around $ 2,200 /personIn Ho Chi Minh City is $ 3,600 / person

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

II. VIETNAM MARKET ANALYSIS

SOCIAL – CULTURECulture

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

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

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

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

II. VIETNAM MARKET ANALYSIS

COMPETITION

The Vietnamese competitors: sidewalk bakeries

II. VIETNAM MARKET ANALYSIS

COMPETITIONThe foreign competitors: KFCOperated for 16 years in Vietnam (1997)

134 shopsYoung population and children

II. VIETNAM MARKET ANALYSIS

COMPETITIONThe foreign competitors:LoatteriaInvested in Vietnam from 1998146 restaurantsSteady expansion strategy

II. VIETNAM MARKET ANALYSIS

The cost of franchisingRegarding the franchising fees, the initial fee would be no less than

$45.000 Become a mcdonald’s partners , they must be very rich.

III. SWOT ANALYSISSTRENGTHes

-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

III. SWOT ANALYSIS

WEAKNESSes

-Late Entry

-Disgruntled franchises

-Limited Menus than competitors

-Contribution to obesity

III. SWOT ANALYSISOPPORTUNITies

-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

III. SWOT ANALYSISTHREATS

-Strength of existing competitors

-More local and foreign competitors rising quickly

-Government policies on fast food and healthy

meal

-Outbreak of bird flu

IV. MARKET PRESENTATION STRATEGY

PRODUCT STRATEGIES1. Permanent Product Strategy

2. Temporary Product Strategy

3. Local Product Development Strategy

4. Local Adaptation Strategy

IV. MARKET PRESENTATION STRATEGY

PRODUCT STRATEGIES1.Permanent Product Strategy-Menu is permanent

-There is always something familiar for consumers on the menu

IV. MARKET PRESENTATION STRATEGY

PRODUCT STRATEGIES2.Temporary Product Strategy-The McRib - product is offered only seasonally

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

IV. MARKET PRESENTATION STRATEGY

PRODUCT STRATEGIES3. Local Product Development

Strategy

Local customers have foods to

fit their tastes.

IV. MARKET PRESENTATION STRATEGY

PRODUCT STRATEGIES

4. Local Adaptation Strategy

-Quality breakfast -Convenience

-Menu additions -Value for money

-Delivery services

IV. MARKET PRESENTATION STRATEGY

PRICE STRATEGIES-Cheaper rate

-Competitive price

-Combo packs

IV. MARKET PRESENTATION STRATEGY

PROMOTION STRATEGIESSpokesman - Ronald McDonald

Radio and television advertising

"Healthy" menu items

IV. MARKET PRESENTATION STRATEGY

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

-Expending in other large urban centers

-McDonald’s will partner with the Vietnamese Ministry of Agriculture

IV. MARKET PRESENTATION STRATEGY

PLANT OF IMPLEMENTATION---Using a scheme that will satisfy Vietnamese employees---Conducting a 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

IV. CONCLUSION

Maintaining the core strengthsEmphasis on consistency and

qualityTesting with innovative optionsMcDonald’s fast-food image

Thank you for loving

mC donald’s