Eim t222wsb 3 Er Project Group 4 MC Donalds

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EIM-T222WSB-3 ER Project Group 4 Mc Donald's
Enterprise Innovation and markets (Western Sydney University)
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TABLE OF CONTENTS
TABLE OF CONTENTS 1
EXECUTIVE SUMMARY 4
ABBREVIATION 5
1. EVALUATION OF CURRENT INNOVATIONS 6

1.1. Overview 6
1.2. McDonald9s Current Innovation 6
2. CURRENT MARKETING ANALYSIS 9

2.1. PESTEL Analysis 9
2.2. SWOT Analysis 9
2.2.1. Internal Factors - Strengths 10
2.2.2. Internal Factors - Weaknesses 10
2.2.3. External Factors - Opportunities 10
2.2.4. External Factors - Threats 11
2.3. Perceptual Positions 11
2.4. Target Market 12
2.5. Current Marketing Mix 7Ps 12
2.5.1. Product 13
2.5.2. Price 13
2.5.3. Promotion 13
2.5.4. Place 13
2.5.5. People 14
2.5.6. Process 14
2.5.7. Physical Evidence 14
3. CURRENT MICROECONOMICS ANALYSIS 15
ER Project - McDonald9s | Page 1

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3.1. Pattern of Supply 15

3.2. Pattern of Demand 16
3.3. Price Elasticity of Demand 17
3.4. Market Structure & Its Consequences 18
4. PROBLEM IDENTIFICATION 19
5. THE NEW INNOVATION & TARGET MARKET PROFILE 20

5.1. The New Innovation 20
5.2. New Target Market Profile 22
5.3. New Perceptual Map 22
6. THE NEW MARKETING MIX STRATEGY 24

6.1. Product 24
6.2. Price 24
6.3. Promotion 24
6.4. Place 25
6.5. People 25
6.6. Process 25
6.7. Physical Evidence 26
7. REFERENCES 27
8. APPENDICES 42
Appendix 1: Preliminary Survey 42
1.1. Survey Questionnaire 42
1.2. Survey Results 46
Appendix 2: PESTEL Analysis 54
Appendix 3: SWOT Analysis 61
3.1. Internal Factors - Strengths 61
3.2. Internal Factors - Weaknesses 64

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3.3. External Factors - Opportunities 65

3.4. External Factors - Threats 68
Appendix 4: Perceptual Positions 71
4.1. Perceptual Map Input 71
4.2. Perceptual Map Output 72
Appendix 5: Target Market 73
Appendix 6: Current Marketing Mix 7Ps 76
Appendix 7: New Innovation and Target Market Profile 87
7.1. New Innovation - Innovation Cycle 87
7.2. New Target Market Profile 87
7.3. New Perceptual Map 89
Appendix 9: Register of Attendance to Meetings 90
Appendix 10: Member9s Task Allocation 91

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EXECUTIVE SUMMARY
The purpose of this report is to analyze McDonald9s and its position in the Vietnamese
market9s fast-food industry. The paper offers information on Vietnamese
microeconomics, examines current marketing tactics, and contrasts McDonald9s with its
rivals - Kentucky Fried Chicken (KFC) and Lotteria. The initiative also identifies
McDonald9s strengths, weaknesses, opportunities, and threats when operating in
Vietnam. Following the investigation, a significant issue for McDonald9s is appointed.
That is, a lack of customer assistance personnel to utilize the Self-Ordering Kiosk (SOK)
during peak hours, which makes it difficult for customers to use it. In order to help
McDonald9s with advertising, product positioning, and branding in the fast-food industry
in Vietnam, recommendations for new innovation and an evaluation of a new marketing
strategy employing the 7Ps marketing mix will be conducted.

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ABBREVIATION
AI Artificial Intelligence
BOGO Buy One Get One (Free)
CIT Corporate Income Tax
COGS Costs of Goods Sold
GRDP Gross Regional Domestic Product
IH In Home
KFC Kentucky Fried Chicken
NI Net Income
NPV Net Present Value
OOH Out of Home
PESTEL Political, Economic, Social, Technological, Environmental, and Legal
RTE Ready to Eat
SOK Self-Ordering Kiosk
SWOT Strengths, Weaknesses, Opportunities, and Threats
VAT Value Added Tax
WOM Word-of-Mouth

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1. EVALUATION OF CURRENT INNOVATIONS

1.1. Overview
McDonald9s is one of the well-known global fast-food corporations with 35,000 stores
scattered across more than 118 countries in the four corners of the world. The
corporation9s mission is to become customers9 preferred location and dining experience.
Therefore, the brand places a considerable emphasis on providing great service to
optimize operations and the patron experience (McDonald’s Mission, Vision & Values,
2022).
In 2014, McDonald9s entered the Vietnamese market after signing a franchise deal with
the Good Day Hospitality firm (Minh, 2013). Up to now, there are 26 outlets, most of
which are found in prominent cities, with a number of well-known menu items such as
Big Mac, Chicken McNuggets, and Egg McMuffin. Many notable innovations have been
put into application by McDonald9s in Vietnam, two remarkable of which are a novel
process and product innovation - the Self-Ordering Kiosk (SOK) machine, and BTS
meals, respectively. These two elements will be the main emphasis of this report.
1.2. McDonald’s Current Innovation
McDonald9s is the first and foremost fast-food

chain in Vietnam to execute robotic placement
stalls, which are named Self-Ordering Kiosk
(SOK). In July 2017, McDonald9s officially
launched the first SOK into the Vietnamese
fast-food industry (Thao, 2017), marking a new
breakthrough in the process dimension for
McDonald9s at the time. The usage of SOK is
likened to innovation in the serving style of
McDonald9s to the existing markets. At the

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beginning of the operation, personnel support is provided to guide customers to become

acclimated to using before letting them pick their own dishes more autonomously. The
system also offers English and Vietnamese language displays and accepts a variety of
payment options, including cash, credit cards, etc. Locations that have installed kiosks
have seen an uptick in revenues (Peterson, 2017). Specifically, through such an
instrument, customers9 particular orders could well be accurately recorded, making it
much easier for diners to select meals and beverages that fulfill their needs. This leads
to misunderstanding minimization, waiting for elimination, time-saving, service
optimization, and customer engagement improvement (Phong, 2017).
The second innovation of McDonald9s is the BTS

Meals Campaign, considered as the Famous Orders.
Thanks to the great success in the USA, McDonald9s
thereby launched this campaign in many worldwide
corners, including in Vietnam. The purpose of
applying this product dimension is to boost short-term
sales and build long-lasting relationships with the
brand9s fans as well as youngsters who are interested
in BTS (Phuong, 2021). McDonald9s had brought the
characteristics and trends of BTS into its traditional dishes, specifically, two new favorite
dipping sauces - Korean Chili Sauce and Cajun Chili Sauce (McDonald9s Vietnam,
2021). Although the BTS meals were released during the COVID-19 epidemic situation,
McDonald9s global sales in the second quarter of 2021 increased by 41% compared to
the same period in 2020 (An, 2021a). Besides, the collaboration between McDonald9s
and BTS resulted in a 12% rise in restaurant visits as well as a sharp increase in social
media subscriptions (Hanh, 2021; Verdict Food Service, 2021). Having noticed a shift in
the demographics of Vietnamese young individuals who are fans of Korean stars, this
campaign helped McDonald9s gain success of VND 1.17 billion on first-day revenue with
more than 10,000 servings sold out throughout the system (An, 2021a). Therefore, it
can be seen that taking advantage of the international influence of BTS has remarkably
brought outstanding McDonald9s revenues.

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In short, both of the aforementioned innovations have been successful to some extent.
In terms of the SOK machines, the system could swiftly change the menu, save serving
time, push sales, and operate the service process through a user-friendly application.
Moreover, the self-catering application might optimize the fast factor in the fast-food
market, not only in terms of processing and usage but also in terms of serving and
ordering rapidly and precisely. Meanwhile, BTS meals have strengthened the love of
McDonald9s brand with young customers under the <fandom= mechanism.

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2. CURRENT MARKETING ANALYSIS

2.1. PESTEL Analysis
A PESTEL analysis, which provides an environmental study dimension of organizational

performance, portrays a framework of the macro-marketing factors facing a firm. To fully
comprehend those macro-environmental elements, an in-depth investigation is provided
in Appendix 2.
To recap, the Political aspects of the Vietnamese market that these enterprises should
take into account include Vietnam9s political stability in comparison to other Southeast
Asian countries, the country9s tax structure, and compliance with public health
initiatives. Economic components that should be considered include the variation of
both economic growth and inflation. As for the Social dimension, fast food companies
should be aware of urban busy lifestyles, cultural diversity, and the trend toward a
healthy lifestyle in order to prevent operational risk and promote sustainable
development. Besides, Technological factors like online ordering habits or internet
development, as well as Environmental considerations like recycling or sustainability,
must also be assessed. These three firms who specialize in the food and beverage
sector should also apprehend Legal rules such as Vietnam9s safety and health
regulations, employment legislation, and animal welfare regulations.
2.2. SWOT Analysis
Numerous series of events are influential on a business action, either directly or

indirectly, and SWOT analysis, which is clearly described in Appendix 3, is therefore
being used to trace strategic recommendations through the use of utilizing strengths
and opportunities to confront weaknesses and threats.

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2.2.1. Internal Factors - Strengths
Superior brand recognition, a huge fast-food distribution infrastructure, and an

accessible business location are the major strengths that all three businesses rely on. If
McDonald9s is more indicative of its worldwide brand value and financial position,
application of progressive technologies, 24/7 operations, and the current BTS meals
success, then KFC is sounder at catering to Vietnamese customers9 tastes, and Lotteria
is more favorable in diverse ingredients and a blend of Korean and Vietnamese ethnic
identities.
2.2.2. Internal Factors - Weaknesses
The stubborn refusal of McDonald9s to fully grasp the traditional Vietnamese cuisine
culture, the lack of variety in KFC9s ingredients, as well as the lengthy wait times, the
inconsistent progression of the official website, and poor food hygiene and safety of
Lotteria are the weaknesses that could harm these companies9 performance.
2.2.3. External Factors - Opportunities
Common and practical opportunities in the Vietnamese market comprise beneficial

government policy, the rising monthly per capita income, the anticipated increase in
urban residents, and positive changes in consumer behaviors including online
consumption habits and the growth in the younger generation9s preference for fast food.
An increase in customer preference and priority toward reputable-and-hygiene brands,
and a further boost in brand recognition and customer experience through partnerships,
health innovation with the McPlant product line, and stand as travelers9 choice brand are
all special chances that McDonald9s can seize. Similar to McDonald9s, KFC may make
use of rising customer preferences for recognized and sanitary brands, an expansion of
brand recognition through celebrity collaborations, and its excellent present position to
flourish even more in the market for plant-based meat. As for Lotteria, it can continue to

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benefit from capitalizing on the Vietnamese youth9s passion for Korean lifestyles along
with satisfying consumer demands via the establishment of Burger Laboratory.
2.2.4. External Factors - Threats
The greatest threats that these businesses currently confront or will likely to confront in
the future are the rising cost of transportation, negative changes in consumer behaviors,
the popularity of local retailers, the perception that fast food is unhealthy, or the difficulty
of differentiating oneself from other competitors in the market due to the saturation of
the market. McDonald9s is threatened by difficulties relating to animal welfare, a drop in
delivery services together with a disruption of the supply chain caused by the COVID-19
effect, and consequences of defying local preferences. Additionally, KFC is challenged
with false light, pressure from suppliers, and supply chain disruption due to the impact
of COVID-19.
2.3. Perceptual Positions
The perceptual map, which demonstrates the mass market research, the current
position of the business and its main rivals, as well as the sentiments and thoughts of
potential consumers towards its products, services, and brands, is one of the tools we
use to link the information we have from numerous gathered sources in order to develop
overall determinations.
Three objects placed on the scale include McDonald9s and its two main competitors in
the Vietnamese market, KFC and Lotteria. The two basic elements that make up this
model are the horizontal and vertical axes that represent the attributes of price and
quality of customer service, respectively. The figures to construct the map are compiled
mainly from the preliminary survey (Appendix 1) with a sample size of 40 observations
(N = 40), from which the input data was synthesized and computed as shown in
Appendix 4.1.

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From the graphical results (Appendix 4.2), the best operational efficiency is seen in
Lotteria, there is little distinction between Lotteria and KFC, and McDonald9s lags
considerably below its rivals. Specifically, in Vietnam, Lotteria9s market share in the
fast-food industry is the highest, followed by KFC, and McDonald9s comes in last with a
meager market share of only approximately 1.7% (Vietnam Investment Review, 2022).
The rankings of these three brands in terms of price in relation to market share,
however, are at odds with one another. That is, product prices at Lotteria are the most
affordable, then come KFC, whereas McDonald9s is regarded as being far more pricey.
The service quality of all three is positive, yet McDonald9s continues to come in last
behind the two opponents. In synopsis, Lotteria consistently ranks top when all three
factors of market share, inexpensive pricing, and high-quality service characteristics are
taken into account, with KFC not significantly inferior, and McDonald9s must work very
hard to catch up both.
2.4. Target Market
In general, all three brands9 target markets are essentially identical, focusing
predominantly on Millennials (Generation Y) and Generation Z, whose incomes vary
from middle to upper class and who reside in metropolitan regions of big cities in terms
of demographic and geographic (Phan & Nguyen, 2016; Vu, 2021; Tien, 2020). The
difference comes mainly from psychographic and behavioral characteristics, yet there
are still multiple commonalities. For detailed target market information for all three, the
table is shown in Appendix 5.
2.5. Current Marketing Mix 7Ps
A set of marketing tactics to meet customers in the target market of three brands, using
an analysis of seven criteria, is presented and analyzed in detail in Appendix 6.

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2.5.1. Product
McDonald9s, KFC, and Lotteria9s product categories are made up mostly of fried chicken
and burger items among many other things. All three companies strive to, and, employ
packaging that is both environmentally and consumer-friendly (Packaging, Toys &
Waste, n.d.; Valinsky, 2021; Tien, 2020).
2.5.2. Price
All three businesses adopt odd-even pricing and bundle pricing strategies. Especially for
KFC and Lotteria, both these two additionally apply the multiple unit pricing techniques,
and the reference pricing method is formally applied at KFC only.
2.5.3. Promotion
To reach and interact with customers even when they are not at the physical store, with
regards to advertising, official website and app, social media, and in-store display are all
widely utilized by all three. KFC and Lotteria also use out-of-home (OOH) advertising
widely (Ly, 2021). All three brands promote public relations and sales promotion in
addition to advertising, such as communicating with the customers through social
networking platforms (Chi, 2022), enabling community campaigns to increase the
brand's word-of-mouth (WOM) (KFC Vietnam, 2021; KFC Vietnam, 2020), or offering
deals and discounts, e-vouchers and coupons, and other incentive rewards
(McDonald’s Vietnam, n.d.; KFC Vietnam, 2022; Emily, n.d.).
2.5.4. Place
McDonald9s, KFC, and Lotteria all offer both direct distribution via brick-and-mortar
stores located in populated urban areas and large cities, official channels, and delivery
services by their employees, as well as indirect distribution via marketing intermediaries,
such as delivery applications, to allocate goods to buyers.

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2.5.5. People
Identically, requirements for front-line staff are set, requiring that employees be at least
18 years old and exhibit a youthful service attitude (McDonald’s Vietnam, n.d.-a; Tien,
2020).
2.5.6. Process
Customers have three alternatives for ordering fast food: in-person with personnel at the
location, especially, for McDonald9s, two additional options are through the SOK or the
drive-thru system; through the company9s app or website; or through collaborative
delivery applications.
2.5.7. Physical Evidence
The primary colors of McDonald9s and Lotteria are red and yellow (Cutolo, 2022; Tien,
2020), and red and white for KFC (Valinsky, 2021; Dean, 2021). These companies all
decide to utilize red since it drastically accelerates people9s cravings, causing them
increasingly inclined to visit the shop and thereafter make a purchase or purchase
additional food when they are already there (Harrington, 2015).

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3. CURRENT MICROECONOMICS ANALYSIS

3.1. Pattern of Supply
The supply curve for the country9s fast-food industry has shifted to the left for two key
reasons.
The first factor is the temporary disruption of the fast-food supply chain caused by the
COVID-19 pandemic. Currently, McDonald9s, KFC, and Lotteria are struggling with
ingredient shortages such as chicken, beef, and potatoes because suppliers are unable
to meet the requested quantity (Gross, 2022; Czachor, 2020; Kim, 2022). The reason
for this is the closure of production facilities and labor deficiency (Gross, 2022).
Besides, since the suppliers of these three brands are mainly abroad, the restriction of
customs clearance or border travel between countries that occurred during the impact of
the pandemic negatively affects their business also. Therefore, this again results in
lower supply quantities, forcing the supply curve to shift to the left. The supply curve,
however, has a tendency to gradually and slightly shift to the right because Vietnam9s
food and catering sector has increased by 4.83% and the economy has recovered to an
extent of up to 80% during the post-pandemic era (Loc & Long, n.d.).
The spike in shipping costs and manufacturing costs brought on by the confrontation
between Russia and Ukraine is the second factor diminishing supply (Binh, 2022;
Ellyatt, 2022). The increase in petrol prices undoubtedly has a strong impact on
petroleum-intensive industries, and the transport business is the most directly, quickly,
and severely affected, causing brands to increase the selling price of their products
because of a rise in input expenses (Kien, 2022). However, McDonald9s, KFC, and
Lotteria have difficulty in rebalancing the price of their food supplies and the selling price
in this situation. That is, if these fast-food companies raise their selling prices due to an
increase in costs of goods sold (COGS), they risk losing their consumers; instead, if
they seek to maintain their current COGS to ensure such a balance, they must exert
pressure on their suppliers to reduce the shipping cost. The second scenario is
implemented in this fast-food business since the selling prices of these businesses are

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already listed. As it is difficult for suppliers to meet the above required conditions, the
supply curve shifted to the left due to negotiations being protracted.
In conclusion, the supply curve is still on the left in general, although it tends to shift to
the right when the pandemic is less severe.
3.2. Pattern of Demand
The following two factors are the main causes of a leftward shift in the demand curve for
the fast food businesses in Vietnam.
The first element causing the demand curve to decline is the reduction of individual
income levels. According to Statista (2022), before 2019, when the COVID-19 outbreak
had not yet begun, per capita income had been rising, but when the pandemic started, it
tended to fall. Compared to rural areas, metropolitan areas see a faster rate of income
reduction. While the average income of those living in rural areas remained relatively
stable, that of urban residents fell by 3.6% in comparison to 2020 (Ngoc, 2022).
Besides, the average monthly income of people dropped by more than VND 42,000 in
2021 (Ngoc, 2022). As a consequence, consumers may not be willing to buy fast food
that is not affordable at this time.
Subsequently, the impact of COVID-19 has prompted Vietnamese consumers to shift to

a healthy living style. Up to 82% of customers have raised their purchases of essential
goods while cutting back on eating out (Quyen, 2022). Furthermore, nutrition and
healthier meals are mostly major concerns, with 44% of interviewees saying that health
was their top priority - Nielsen, 79% to 89% willing to pay extra for wholesome food -
Kantar and Fi Global, and 88% reading product labels to stay away from unhealthy
items - Kantar (Nguyen, 2019; Fi Global, n.d.). According to Vietnam Credit (2022),
residents of the nation's two largest cities, Hanoi and Ho Chi Minh City, place a high
priority on wholesome and organic foods and beverages, with corresponding

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percentages of 60.3% and 51.5%in 2019. Meanwhile, fast food is considered as being
detrimental. Thus, this could be inferred that the demand for fast food is elastic,
therefore causing a drop in customer demand in both the three brands under
consideration and the fast food industry in Vietnam as a whole.
3.3. Price Elasticity of Demand
ýÿÿýÿĀý�㕎�㕔ÿ ýℎ�㕎Ā�㕔ÿ �㕖Ā þþ�㕎Āý�㕖ý�㕦 þÿÿ�㕎Āþÿþ

Price elasticity of demand = ýÿÿýÿĀý�㕎�㕔ÿ ýℎ�㕎Ā�㕔ÿ �㕖Ā ýÿ�㕖ýÿ
According to the World Bank9s demand analysis in Vietnam, the price elasticity of
demand for food and foodstuff is between 0.458 and 0.802, with junk food9s, including
fast-food sector9s, elasticities being one of the highest, around 0.7 to 0.8 (Vigani &
Dudu, 2021). In other words, In the fast-food industry, the demand is predicted to
decline by 0.7% to 0.8% when the price rises by 1%, pointing out that demand for both
McDonald9s, KFC, and Lotteria could be considered elastic, yet in the short-, or
medium-, term. Since the consumer demand for the product is extremely sensitive to
price variations, demand might fluctuate in the foreseeable future as a consequence of
price fluctuations brought on by business decisions or governmental constraints (such
as changes in price, discount offer, or tax, incentive programs, and subsidy policies). In
short, the companies operate in a very cutthroat industrial sector, thus raising their
prices far too much might result in a larger loss of demand than a gain in profits.
Looking at the aforementioned high price elasticity of demand for these fast-food
organizations, customers are sensitive to price shifts and may not engage much time in
such a brand (Savina, 2020). People do not develop a strong loyal connection to the
offerings provided, leading them from immediately cutting back on their purchases or
easily switching to alternative items solely based on price comparison. For example,
when there is a desire to eat fried chicken or burgers, customers will make comparisons
between brands since in their mind, there is not much difference between countless
brands (McDonald9s, KFC, Lotteria, Burger King, Texas Chicken, etc.), thereby taking on

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the substitutes. The higher the price these brand sets, the lower the demand.
Consequently, because the demand is elastic, both three brands are susceptible to
elements that have an impact on the demand for their products as well as their prices.
3.4. Market Structure & Its Consequences
In monopolistic competition, products like fast food are similar and can be comparable
(Why It Matters: Monopolistically Competitive Industries, n.d.). That is, McDonald9s can
be intimidated by international fast food chains such as KFC, Lotteria, and many local
rivals.
According to Dung (2015), the primary factor that attracts customers to fast-food
restaurants and encourages positive brand mentions is delicious food. KFC, Lotteria,
and McDonald9s have received positive evaluations from customers in the proportions of
31%, 11%, and 5%, respectively. As can be observed, McDonald9s has less flavor than
KFC and Lotteria. McDonald9s has had difficulties in Vietnam, a country with a wide
variety of restaurants (Yen, 2018). Additionally, Vietnamese consumers prefer choosing
Mcdonald9s local competition or regional fast-food restaurants because of their quick
service, affordable prices, convenience, and quick purchases (Vietnam Investment
Review, 2019b; Yen, 2018).
In short, when entering into the Vietnam market with monopolistic competition, it seems
difficult for McDonald9s to compete with many other international brands and local rivals.

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4. PROBLEM IDENTIFICATION
Despite being a latecomer, McDonald9s is emerging as one of the leading brands in the
fast-food sector in Vietnam with breakthroughs that focused on enhancing service and
making it customer-centered. One of its typical innovations is the SOK, which has been
advantageous for McDonald9s in a number of aspects. This innovative implementation,
however, has some disadvantages in some respects. According to the survey
conducted in Appendix 1, one of the biggest issues of this innovation execution is a
tendency to lack supporting staff during peak hours, thereby making customers feel
difficult to utilize the machine (Appendix 1.2 - Figure 1.16). To support our assumption, it
is evident that McDonald9s only arranges support staff to guide customers to get used to
the SOK at the beginning of the installation (Phong, 2017). Therefore, the mentioned
issue is, and might, continue to have a negative impact on both customers9 service
experience and the brand if the issue is not resolved. As found by the survey, 65.5% of
users stated that staff support on how to operate the SOK would make it simpler to use
(Appendix 1.2 - Figure 1.15). Hence, it is crucial that McDonald9s should consider
upgrading the SOK in order to address customers9 concerns regarding
challenging-to-use the SOK equipment.

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5. THE NEW INNOVATION & TARGET MARKET PROFILE
Having the problem identified above, we thus propose a product innovation that focuses
on Generation Z market segmentation, especially on those that are fans of famous
celebrities, via the duplication characteristic of incremental innovation. That is, to
improve McDonald9s existing products by incorporating artificial intelligence (AI)
technology into SOK machines as well as integrating visuals and trademarks of
well-known local and international artists so as to ease user operations and bring a new
experience in the interaction between McDonald9s and customers regarding ordering
dishes. The full innovation cycle, from current innovation to problem identification to new
innovation development, is shown in Appendix 7.1.
5.1. The New Innovation
The installation of the virtual assistant <voice= to the SOK devices contributes to
assisting consumers with their orders. McDonald9s has formed a process revolution with
SOK, yet its usefulness in the Vietnamese market is dubious as people are not
accustomed to using technology. To solve this, the integrated virtual technicians inside
the SOK will serve as a trainer who instructs how to use and pay through the machine
as well as a salesperson who introduces existing products and promotions to train users
in the habit of utilizing SOK machines. Vietnamese and English will be the two major
languages used for the voice of AI delivery, making it convenient for both Vietnamese
and foreigners to pick. According to the results gathered from our survey, 65.5% stated
that having instructions is the main factor driving them to use the SOK (Appendix 1.2 -
Figure 1.15), and 54.5% of the respondents who have not experienced the McDonald9s
SOK machines before are also willing to have a trial experience of the SOK if detailed
instructions are given (Appendix 1.2 - Figure 1.17). From this technological guide,
customers will no longer feel challenged in using SOK machines, and the amount of
SOK usage will increase.

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Apart from the main innovation mentioned above, in order to maximize the SOK
machine function, we proffer SOK9s virtual assistant to wear the form of famous artists
to simultaneously take advantage of their influence as opposed to merely being an
anonymous virtual assistant. In other words, this will be a side innovation added at the
same time as the improved integration of the aforementioned assistant9s voice into
SOK. This can increase the level of delight and purchase motivation for clients who are
followers of those celebrities. The enormous success of McDonald9s in introducing BTS
meals illustrates this. With whom to cooperate and when will depend on the preferences
and favorites of young people, allowing McDonald9s to optimize potential chances to
achieve positive and prosperous results.
This innovation, which satisfies customer needs and is a technological advancement, is

considered feasible to function. When screening opportunities, this innovative creativity
is deemed feasible in terms of product dimension since this concept has already been
identically applied and is a great success for Clear, with the AI brand ambassador <Toc
Tien Clear Head= - a virtual version of Toc Tien singer, as well as VPBank in
re-branding, features a virtual assistant dubbed <Ha Wonder= modeling the style of
singer Ho Ngoc Ha (Anh, 2021; Duong, 2021b; VPBank, 2021). Therefore, these
incremental innovations can be manufactured using existing technology if McDonald9s
Vietnam adopts the duplication method by cooperating with T&A Ogilvy, the advertising
agency that has collaborated with Clear and VPBank to create the first two AI artists in
Vietnam mentioned above (Anh, 2021). Furthermore, these advances could also meet
market feasibility, based on the positive customer interaction and consumption of BTS
Meals, Toc Tien Clear Head, Ha Wonder in Vietnam, and the demand for
interconnection; and might meet economic feasibility, too, if the determined net present
value (NPV) of such an investment is positive.

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5.2. New Target Market Profile
Using images of celebrities to make the younger generation (fans) know more about
McDonald9s is an effective way to widen the brand9s position in the hearts of consumers,
which thereby turns them into loyal customers. We reinforce this innovative
development to reach Generation Z as the main target market segment for the following
reasons:
- Followers of celebrities can be a great source of potential customers. It is evident

that Vietnamese fans have an overspending tendency toward the idols they
follow. For instance, a fan page based in Vietnam raised more than VND 600
million as a donation to vote and support a Chinese female trainee in a dance
contest (Hoa, 2020). Or else, Vietnamese fandom used to have a trend of
purchasing real stars and named after their idols to show their devotion (Hoa,
2015).
- In addition, Generation Z in Vietnam tends to spread trends on social media,
which could then boost McDonald9s marketing initiatives. At the moment,
Tik-Tokers often love to follow trends like their idols to be able to catch <cheap
moments= with them. Being able to own items similar to their idol or being able to
interact with their idol through the virtual or real screen can also be called a
<cheap moment= with an idol. Thus, collaborating with famous idols and
incorporating their images into the virtual screen of the SOK system will help
McDonald9s to gain attraction.
The new target segment profile is shown in Appendix 7.2.
5.3. New Perceptual Map
In the new perceptual map shown in Appendix 7.3, (B,A) is the previous position of
McDonald9s in the perceptual map of the fast-food sector in Vietnam. However, by

lOMoARcPSD|10318923
adopting the innovations to optimize the SOK machine, McDonald9s is predicted to aim
for an increase in its customer service quality and target market, by up to 0.5 and 2%,
respectively (B,A9). This is denoted to be McDonald9s goal when implementing our new
innovation into their operations.

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6. THE NEW MARKETING MIX STRATEGY

6.1. Product
Taking advantage of AI celebrities as the SOK9s assistants, to attract customers to the

SOK machine, McDonald9s may visualize the storytelling about the SOK machine with
those celebrities. For example, the story is about how customers can hear their voices,
and meet a famous person by ordering McDonald9s products through the SOK machine.
Moreover, McDonald9s may also attach celebrities9 stickers that are integrated into the
SOK machine, or the SOK machine9s <chibi= stickers, on their product packaging to
enhance the existence of the SOK.
6.2. Price
To encourage customers to buy products connected with celebrities and the SOK
machine, McDonald9s should apply the higher price with the larger sizes and more
promotions. As a result, besides McDonald9s current pricing strategies - the odd-even
pricing and bundle pricing, they may additionally apply the reference pricing strategy to
provide products with celebrities in medium and large sizes. The purposes of this
strategy are for customers to compare the prices and sizes of products and have a
higher chance to choose the higher product.
6.3. Promotion
To pay customers9 attention to the SOK machine, McDonald9s will have to implement a
related marketing campaign. For instance, using sale promotions such as, if the
customers use this machine to order food, they will receive a discount per bill or get a
voucher for their next order. Also, McDonald9s can run ads for the SOK machine using
websites such as Facebook, Youtube, TikTok, and delivery apps such as Grab, Gojek,
or put up billboards on the street to push the SOK awareness.

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6.4. Place
Besides the three locations that already have McDonald9s SOKs (in Ho Chi Minh City),
McDonald9s should distribute more SOK machines in large-scale stores located in
strategic areas around big cities like Hanoi to attract more Generation Z clients who are
fans of popular artists. This will not only enable McDonald9s to provide more
convenience and delight to its consumers, but it can also significantly increase sales
and profits.
6.5. People
In actuality, <people= are one of the things that contribute to a business9s success.
According to Figure 1.6 (in Appendix 1.2), the service attitude of the staff at McDonald9s
is rated as the lowest by consumers compared to KFC and Lotteria. Although the
introduction of SOK has, and would continue to, helpeld the restaurant reduce
interaction between employees and customers, McDonald9s still has to train their staff to
have a more friendly and gentle attitude, driving a professional image for McDonald9s.
6.6. Process
McDonald9s has been using a variety of different service methods to meet the needs
and desires of customers, such as ordering food directly at the restaurant, via the SOK
machine, and via the app delivery. Therefore, they do not need to change anything but
continue to develop the SOK to enhance and refresh the customer experience when
coming to McDonald9s.

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6.7. Physical Evidence
McDonald9s should design more posters and artwork related to SOK around its
restaurant9s dining environment in order to introduce and increase the popularity of SOK
to more consumers. Young people9s trends of taking check-in photos are more and
more popular, so McDonald9s may need to decorate some more corners to support the
check-in of today9s young people because the new target customers are youngsters.

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ml

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8. APPENDICES
Appendix 1: Preliminary Survey
1.1. Survey Questionnaire
Section 1 - Overview of the Respondents
1. What is your gender?

● Male
● Female
● Other/do not want to answer
2. What age group are you in?

● 18 - 22
● 22 - 40
● 40 - 60
3. Do you often use fast food or not?

● Yes
● No
Section 2 - All-around Survey of Three Fast-food Brands
4. [Brand Awareness] When considering out-of-home eating, which fast-food brand is

your priority? Rank from high to low.
1 2 3
KFC ⚪ s s
McDonald9s s s s
Lotteria s s s

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5. [Price] In your opinion, rank the following brands in order of low to high product price.
1 2 3
KFC s s s
McDonald9s s s s
Lotteria s s s
6. [Service Quality] In your opinion, rank the following brands from terrible to good in
terms of employee attitude.
1 2 3
KFC s s s
McDonald9s s s s
Lotteria s s s
7. [Taste] In your opinion, rank the following brands in order of less delicious to
delicious.
1 2 3
KFC s s s
McDonald9s s s s
Lotteria s s s
Section 3 - Specific Survey of Each Fast-food Brand
8. [Price] The food prices of the following fast-food brands are expensive.

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Totally Disagree Normal Agree Totally

Disagree Agree
KFC s s s s s
McDonald9s s s s s s
Lotteria s s s s s
9. [Service Quality] The service attitudes of the following fast-food brands is good.

Disagree Agree
KFC s s s s s
Lotteria s s s s s
10. [Diversity] The below fast-food brands have many choices for customers.

Disagree Agree
KFC s s s s s
Lotteria s s s s s
11. [Product Quality] The food quality of the below fast-food brands is good.

Disagree Agree

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KFC s s s s s
Lotteria s s s s s
Section 4 - Detailed Survey of McDonald’s
12. Have you ever experienced McDonald9s restaurants?

● Used to
● Never
13. Do you know anything about McDonald9s SOK automatic order machines?
● Yes
● No
14. Have you ever experienced that SOK?

● Used to
● Never
Sub-section 4.1 Sub-section 4.2

Have Experienced SOK Before Have Not Experienced SOK Before
15. How do you feel when using it? You 17. Are you willing to experience the SOK
may choose more than one. if detailed instructions are given?
● Don9t know how to use ● Yes
● Easy to use without instructions ● No
● Easy to use after having
instructions
● Difficult to use despite instructions

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● Other (type in)
16. What are the things that you do not

like when using SOK? You may choose
more than one.
● Long waiting line
● Hard instruction
● Complicated payment process
● Feeling difficult to use due to lack
of interaction with employees at
rush hours
● Other (type in)
1.2. Survey Results
Sample size: 40 observations (N = 40)
Section 1 - Overview of the Respondents
Figure 1.1
What is your gender?

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Figure 1.2
What age group are you in?
Figure 1.3
Do you often use fast food or not?
Section 2 - All-around Survey of Three Fast-food Brands
Figure 1.4
[Brand Awareness] When considering out-of-home eating, which fast-food brand is

your priority? Rank from high to low.

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Figure 1.5
[Price] In your opinion, rank the following brands in order of low to high product price.
Figure 1.6
[Service Quality] In your opinion, rank the following brands from terrible to good in
terms of employee attitude.

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Figure 1.7
[Taste] In your opinion, rank the following brands in order of less delicious to delicious.
Section 3 - Specific Survey of Each Fast-food Brand
Figure 1.8
[Price] The food prices of the following fast-food brands are expensive.
Figure 1.9
[Service Quality] The service attitudes of the following fast-food brands is good.

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Figure 1.10
[Diversity] The below fast-food brands have many choices for customers.
Figure 1.11
[Product Quality] The food quality of the below fast-food brands is good.

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Section 4 - Detailed Survey of McDonald’s
Figure 1.12
Have you ever experienced McDonald9s restaurants?
Figure 1.13
Do you know anything about McDonald9s SOK automatic order machines?
Figure 1.14
Have you ever experienced that SOK?

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Sub-section 4.1 - Have Experienced SOK Before

(N = 29)
Figure 1.15
How do you feel when using it? You may choose more than one.
Figure 1.16
What are the things that you do not like when using SOK? You may choose more than
one.

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Sub-section 4.2 - Have Not Experienced SOK Before

(N = 11)
Figure 1.17
Are you willing to experience the SOK if detailed instructions are given?

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Appendix 2: PESTEL Analysis
Political - Political situation: The political situation in Vietnam is

generally more stable than that of other Southeast Asian
nations (GOV.UK, 2021). Vietnam may therefore be the ideal
location for long-term operations from foreign investments.
- Tax policy: In 2021, restaurant services must pay 10% CIT
(Corporate Income Tax) and 5% VAT (Value Added Tax)
(Acclime Vietnam, 2021). However, as a result of COVID-19,
starting in 2022, the Vietnamese Government has implemented
a policy of reducing the VAT from 10% to 8% on selected
categories of goods and services in order to assist business
recovery as well as support socio-economic recovery and
development initiatives (Ministry of Industry and Trade of the
Socialist Republic of Vietnam, 2022; Acclime Vietnam, 2022).
Despite the fact that restaurant services like McDonald9s, KFC,
and Lotteria are not exempt from VAT, they benefit from the
costs of purchasing items (the inputs).
- Implementing public health policies: The Government has
implemented a national strategy on nutrition with goals from
2021 to 2030 and a vision to 2045 to improve nutritional status
appropriate for each population and locality, lowering the
burden of disease and boosting the stature, physical fitness,
and intelligence of the Vietnamese people (Prime Minister,
2021). Consequently, fast food restaurants may not be regarded
in this situation. However, these outlets can improve by making
their food adjustments that are healthier than before to be able
to follow a national nutritious strategy, which could give
customers a more positive outlook.

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Economic - Economic growth: As forecasted, Vietnam9s economy would

expand faster in 2022, with a predicted increase in GDP growth
to 5.5% compared to 2.6% in 2021 (The World Bank, 2022).
Alternatively, Ho Chi Minh City's gross regional domestic
product (GRDP) was expected to have increased by 3.82%,
formulating a total of VND 728,706 billion in the first half of 2022
(Luc, 2022). Therefore, those two signs show that the
Vietnamese economy is doing well, encouraging businesses to
invest more confidently.
- Inflation: Due to supply chain problems caused by the
COVID-19 pandemic as well as fueled by the Russia-Ukraine
conflict, the inflation rate has occurred in many worldwide
nations. In Vietnam, the inflation rate and food inflation rate in
Vietnam in June 2022 were 3.37% and 2.87% respectively,
higher than 0.51 and 0.45 respectively compared to the last
same period (Trading Economics, 2022). This has led to cost
pressure on restaurants and a decline in consumers9
purchasing power (Bão giá và lạm phát l°¢ng thāc đang càn
quét khắp châu Á, 2022; Vu, 2022b). For that reason, these fast
food brands9 profits may decline dramatically this year.
Social - Busy lifestyles in urban areas: Nowadays, numerous

people9s lifestyles and eating habits are dictated by simplicity,
accessibility, convenience, time constraints for cooking, or a
distaste for meal preparation (Ensle, 2007). That is, due to busy
working hours, fewer dishes are cooked and prepared at home,
less time for dining together, as well as modern consumers are
increasingly looking propensity to seek processed meals,
ready-to-eat (RTE) food, or out-of-home (OOH) dines instead of
in-home (IH) eating. Hence, McDonald9s, KFC, and Lotteria
might have more possibility for transition to broaden further if

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this social factor is properly exploited. McDonald9s Canadian

branch, for instance, has announced Family Nights, which are
held every Wednesday evening, attempting to assist today9s
hectic families to enjoy moments together with their family
members over dinnertime (McDonald9s Canada, 2020).
- Cultural diversity: Forming menus with a majority of
mass-produced dishes and a few additional localizations, all
three brands operate the transnational strategy to maintain their
standardization and uniformity over countries (Mourdoukoutas,
2017; Bell & Shelman, 2011). Still, each country, in particular, or
each region or continent, in general, has different ways of living,
leading to different eating habits and preferences. Therefore,
they should deliver extra consideration to a variety of different
local consumers9 preferences in varied regional markets while
developing products since failure to do so might lower business
profitability.
- The trend for a healthy lifestyle: When wellness worries
spread around the world, especially after the COVID-19 illness,
individuals are becoming pickier over what they feed their
bodies and moving away from junk food and fast food (Anh,
2020; Fi Global, n.d.). This sociocultural element is therefore
among the greatest threats fast-food institutions are facing.
These businesses will have to improve the nutritional value of
their menu in response to claims of the unfavorable health
consequences of several offerings from health-conscious
consumers. It should be emphasized, nevertheless, that the
proliferation of low-calorie, low-oil, or green components and/or
product lines may not become a turning point. Compared to the
standard menu items, the healthier selection is viewed as a
far-less appealing choice since this is opposed to the traditional

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product type of McDonald9s, KFC, and Lotteria - fried chicken

and hamburgers. These businesses may then run the danger of
losing potential and loyal consumers who like their classic
menus if they cannot achieve the correct balance in reshaping
the menu.
Technological - Online ordering trends: This trend is forecasted that by 2023,

the number of people using food delivery services will more
than double compared to 2018, about 13 million people. Due to
the favored trend, these fast food firms have partnered with
services such as Grab, Gojek, Baemin, etc., to expand the
consumer base which can bring them a great number of sales
(Toan Phat Trading Corp, n.d.).
- Internet development: Today, in addition to operating and
profiting from brick-and-mortar stores, businesses have also
taken advantage of the popularity of the internet to easily
market to the target audience, advertise via social platforms,
and for convenient online trading prospects to arise. In Vietnam,
the Internet penetration rate is reported to be 77.4% in 2022,
according to Statista (Nguyen, 2022c). This number shows that
the Internet is no longer strange to the Vietnamese. As a result
of the Vietnamese people's extensive use of the Internet, this is
considered as a chance for enterprises who have been utilizing
the Internet's popularity to grow their operations to exploit
further in this area.
Environmental - Recycling: According to The World Bank (2021), Vietnam

currently has the 4th highest rate of plastic waste worldwide.
The Government of Vietnam has set a national strategy for the
years 2022 to 2030 with the objective of guaranteeing that the
ecosystem is healed and people could thereby live in a clean

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and safe environment by the year 2050 (Pham, 2022). The

Policy places a strong emphasis on laws for the management of
solid waste and wastewater and further encourages the growth
of recycling companies and recycling industrial zones.
Currently, the products of the three brands are packaged with
recycled materials to reduce the use of environmentally
hazardous packaging. The use of environmentally friendly
packaging contributes to ensuring the health of consumers
since styrofoam food containers are at risk of lead
contamination, which is harmful to the liver and health (Thuy,
2021). Moreover, the use of environmentally friendly recycled
packaging by McDonald's, KFC, and Lotteria is seen as a big
plus in the eyes of consumers.
- Sustainability: Sustainable development depends on the
efficient use of energy and the reduction of its use. Saving
money through competitive procurement, strategically reducing
usage, and lowering greenhouse gas emissions are all reasons
why energy management is important to the firm. Benefits of
Energy Management include the ability to lower the amount of
environmentally harmful carbon emissions while increasing
operational costs (Atalian, 2020). It is subject to numerous
taxes, therefore a decrease in carbon emissions can lower the
cost and support sustainable development. Therefore, this is
also a good opportunity for McDonald9s, KFC, and Lotteria to
save costs and help protect the environment. It cannot be
denied that McDonald9s has done a good job of managing its
energy through its commitment to installing energy-efficient
kitchen appliances and LED lighting in all of its restaurants to
save energy (McDonald9s, n.d.).

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Legal - Safety and health regulations: Legally and morally,

restaurants in Vietnam are required to get a specific number of
permits before they may open in accordance with Decree
15/2018/ND-CP. For instance, the food franchise needs to have
a license for advertising, a certificate for food safety and
cleanliness, a certificate of satisfaction with the firefighting and
preventive conditions, etc. Additionally, franchise enterprises
must follow the requirements regarding food safety and
cleanliness by self-certifying their compliance and publishing
responsible food safety measures on Vietnam9s multimedia
website (Mah, 2018). These three brands can be taken into
consideration by consumers since their levels of food safety
have been compared to international food safety standards,
which is why consumers in Vietnam currently favor fast food
with a high degree of food cleanliness and safety (Hoan, 2019).
This will be a strength of the three brands in creating a sense of
food safety in eating for consumers.
- Employment laws: The government decree establishes a
minimum wage applicable to all employers. There is no required
form of wage payment. Direct payment of wages should be
done on time and in full to the employee. Payment methods are
subject to the parties' agreement. In addition, a 13th-month
wage bonus is typically given to all employees across all
industries in Vietnam. Moreover, employees who work overtime
will be paid more or less depending on whether it is a holiday or
a normal day (Trinh et al., 2021). Large and well-known fast
food restaurants such as McDonald9s, KFC, and Lotteria have
responded well in paying employees in accordance with the
laws in Vietnam. This helps employees to be more willing to
work overtime and work on weekends with higher allowances.

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As a result, brands may not have problems with opening their

doors over the weekend, the prime time for week-long profits for
the fast food industry.
- Animal welfare act and regulations: Animal feed that has
been authorized for importation into Vietnam by organizations
or individuals must first appear on the Ministry of Agriculture
and Rural Development9s portal (Vo, 2021). To ensure that
animal feed farming complies with the manufacturer9s
recommendations and meets the criteria of goods quality
assurance and environmental protection, it is necessary to own
or rent a warehouse. Therefore, McDonald9s, KFC, and Lotteria
should comply with regulations on the animal feed business
when entering the Vietnamese market to avoid some negative
effects on customers and revenue. For example, animal rights
protests in the UK condemn animal rights that have disrupted
distribution centers and affected 1,300 McDonald9s restaurants
(Muncaster & Besley, 2021).
<< Back to <2.1. PESTEL Analysis=

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Appendix 3: SWOT Analysis

3.1. Internal Factors - Strengths
McDonald’s KFC Lotteria
Three brands all have high brand awareness (Popular fast food chains in Vietnam, 2020):
1. KFC: the 1st
2. Lotteria: the 2nd
3. McDonald's: the 3rd
- Brand value: In 2019, McDonald9s - Distribution: With 153 outlets - Distribution: Lotteria is the largest
was known as one of the most around the country, KFC is fast food distribution system in
valuable fast food brands in the Vietnam9s second largest fast food Vietnam with 210 locations across
world (Ranking Royals, 2019). chain (Nguyen, 2022a). the country (Nguyen, 2022a).
McDonald9s brand value increased - Convenient business location: - Convenient business location:
to about USD 45.8 billion in 2021 KFC stores are located in Lotteria stores are located in
(Best Global Brands 2021, n.d.). high-density, convenient places high-density, convenient places
- Financial position: Being a global where they can readily draw the where they can readily draw the
multinational corporation with a attention of customers in different attention of customers in different
strong financial foundation, segments, from high-end to low-end segments, from high-end to low-end
McDonald9s generated more than (Popular fast food chains in (Popular fast food chains in
USD 6 billion in total revenue in Vietnam, 2020). Vietnam, 2020).

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2021 (McDonald’s Corporation, - Meet Vietnamese customers’ - Diverse ingredients: Lotteria9s

2022). preferences: KFC has frequently dishes are made from many
- The application of advanced modified the taste, size, and design different ingredients such as beef,
technologies: McDonald9s has of its products to suit Vietnamese pork, squid, shrimp, etc. (Hanh,
applied advanced technologies tastes (Nguyen, 2016). 2017).
such as the SOK, mobile ordering, - Combining Korean and
and payment table locator to Vietnamese cultural identities:
enhance customer experience Taking advantage of Vietnamese
(Vietnam Investment Review, youth's preference for Korean style,
2019a). Lotte Group has invited influential
- Operate 24/7: McDonald9s is the figures in the Korean entertainment
first fast-food chain to operate 24/7 industry to be brand ambassadors
and pledge delivery within 20 to 40 such as Big Bang. Besides, there
minutes after receiving an order in are many famous Korean movies
Vietnam (Thu, 2017). Consequently, filming at Lotteria, which has
McDonald9s might satisfy the increased the brand's recognition
demands of busy customers for a and popularity in Vietnam (Hanh,
quick delivery service even at 2017).
midnight.
- The significant success of BTS
meals: In 2020, searches for
McDonald9s surged by 8%

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year-over-year within two weeks of

the release of the BTS Meals. This
cooperation experienced an
astonishing 81% rise in Google
searches when compared to the
same period prior to the epidemic -
2018 and 2019. This figure depicts
McDonald9s growing global brand
awareness (Hanh, 2021).
<< Back to <2.2.1. Internal Factors - Strengths=

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3.2. Internal Factors - Weaknesses
- Failure to grasp the traditional - Non-diverse ingredient: Chicken - Long service time: Customers are
culture of Vietnamese cuisine: is the only ingredient used by KFC, frequently subjected to long wait
Vietnamese people enjoy sharing so customers do not have a variety times for their orders (Huyen &
meals, yet McDonald9s Mac cake is of choices. Nam, 2015).
not something to share (Men, - The Lotteria official website’s
2018). As this is somewhat contrary inconsistent development: Such
to the culture, this product line is an inconsistency can disrupt the
not favored. experience of target customers,
who frequently search for menus
and/or could consider ordering
online.
- Low level of food hygiene and
safety: Lotteria9s food safety is
poor, which might create a negative
image in the minds of customers
(Ngoc, 2016).
<< Back to <2.2.2. Internal Factors - Weaknesses=

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3.3. External Factors - Opportunities
- Government policy: The Vietnamese government has launched advantageous business conditions including tax
incentives for foreign investment, from which these businesses can optimize their net income (Das, 2018).
- The increase in monthly per capita income: From 2010 to 2021, there could be a growth in purchasing power
(Nguyen, 2022b).
- The projected rise of urban citizens: These brands9 locations are distributed primarily in urban areas, and the
percentage of urban citizens is estimated to rise to 64.8% by 2069 (Nguyen, 2021); as a result, this might increase
the number of buyers (Nguyen, 2021).
- Positive changes in consumer behaviors:
+ Young consumers prefer online consuming styles: Because these brands all provide home delivery services, the
in-home consumption market has a great deal of promise (Ministry of Industry and Trade of the Socialist Republic of
Vietnam, 2021a).
+ The youthful generation's preference for fast food increases: This provides greater opportunities for fast food
restaurants to expand their market share in the future (Huyen, 2021).
- Customer preference and priority - Customer preference and priority - The Korean lifestyles preference
toward reputable-and-hygiene toward reputable-and-hygiene of the Vietnamese youngster:
brands increase: Customers have brands increase: Customers have Young individuals enjoy Korean
a tendency to choose to consume a tendency to choose to consume lifestyles, from food to personal

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fast-food products at big stores like fast-food products at big stores like styles or to music, allowing Lotteria
McDonald9s rather than at KFC rather than at traditional to readily adapt more Korean trends
traditional Vietnamese snack food Vietnamese snack food outlets and tastes to the Vietnamese
outlets and/or street vendor meals and/or street vendor meals due to market (Hanh, 2017).
due to higher food hygiene and higher food hygiene and safety - Meet customer preferences via
safety (Hoan, 2019). (Hoan, 2019). the launching of Burger
- A further increase in brand - A further increase in brand Laboratory: The purpose is to
awareness and customer awareness through partnerships meet customer preferences and
experience through partnerships: with celebrities: By using the enhance customer experience. For
AI drive-thru with IBM; plant-based influence of hot artists, KFC attracts instance, in addition to providing
meats with Beyond Meat; with a large number of new customers to chicken, beef, and shrimp burgers,
many famous celebrities at the experience its product and thereby the advanced Burger Laboratory
time, like Mariah Carey, BTS, increases the opportunity to expand also offers vegetarian selections as
Saweetie, Travis Scott, etc. (Lucas, the customer base and awareness. well as regional specialties (The
2021; Kelso, 2021; Kambhampaty For instance, the Jack Harlow Meal Burger Laboratory by Lotteria,
& Creswell, 2021). (Canal, 2022). 2017). Thus, Lotteria Vietnam might
- Health innovation with the - KFC is currently in a great likewise do such in order to
McPlant product line: To increase position to expand further in the increase customer satisfaction.
the number of customers who are plant-based meat market
health-conscious, McDonald9s is segment: After the incredible
cooperating with Beyond Meat to success gained from conducting
introduce plant-based products vegetarian chickens through the

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(burgers, chicken, beef, pork, etc.) partnership with Beyond Meat, KFC
to enter and expand into the is having the opportunity to
vegetarian market (Kelso, 2021; penetrate further into this
Dominko, 2021). health-conscious market when
- Travelers’ choice brand: deciding to launch the new
McDonald9s outlets around the plant-based option called Beyond
world are synchronized, with the Fried Chicken (Starostinetskaya,
same menu and facilities (Osman et 2022).
al., 2014). Many overseas travelers
are unfamiliar with the local cuisine,
and McDonald9s is surveyed to be
on top of their ideal options.
<< Back to <2.2.3. External Factors - Opportunities=

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3.4. External Factors - Threats
- The rise in transportation cost: Fuel costs have gone up following a dispute between Ukraine and Russia, driving
increasing transportation costs. Many businesses have seen an increase in costs of goods sold (COGS) as a result of
this. Due to the inability to modify the sale price per unit, the company's profitability and net income might suffer
adversely (Ha, 2022).
- Negative changes in consumer behaviors: Consumers tend to reduce the frequency of eating out activities and
shift to a healthy living style after the COVID-19 pandemic, resulting in higher demand for healthier offerings and
lower demand for fast-food post-pandemic (Quyen, 2022; Fi Global, n.d.).
- The advantage of local stores: Vietnamese consumers are interested in local fast food stores due to their faster
serving and lower prices, such as Banh Mi. Moreover, since Vietnam9s government has long had propaganda and
consumer advocacy campaigns <Vietnamese people prioritize Vietnamese goods=, this has gradually contributed to
switching and forming consumers9 perceptions and mentality of a preference for domestic products (Vietnam
Investment Review, 2019b; Ministry of Industry and Trade of the Socialist Republic of Vietnam, 2021b; An, 2021b).
- Consideration as unhealthy food: Since fast food is identified as high in fat, salt, cholesterol, triglycerides, and food
additives that could lead to some diseases such as obesity or diabetes, fast food is taken into consideration as
unhealthy food in the minds of customers. Therefore, there could be a decline in consumption (Huyen, 2021;
Expanding Fast Food Outlets Place Strain on Obesity Worry, 2021).
- Difficult to stand out and be saturated as having many industrial competitors: In this industry, there are
countless competitors (KFC, McDonald9s, Jollibee, Popeyes, Lotteria, Burger King, Texas Chicken, etc.), yet the taste

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is commented to be quite similar between brands. Therefore, it is difficult to find loyal customers when they can easily
switch brands that offer the same product at a lower price at the time.
- Animal welfare issues: - False light: For instance, although

McDonald9s using industrial chicken KFC does not use genetically
eggs in captivity rather than manipulated creatures instead of
free-range chicken eggs has chickens, the allegation from a
caused protests from Vietnamese popular Internet scam has also
youth (Dung, 2022). This could affected and severely damaged
result in a negative image of the KFC in terms of public
brand in the minds of consumers. communication (Peterson, 2016).
- A delivery service decline due to - Pressure from suppliers: Due to
the COVID-19 impact: McDonald9s high pressure gained from the
can only operate via drive-through, suppliers, KFC Vietnam would not
delivery, or reduced seating be able to actively implement the
capacity due to a 30.5% decrease price strategy and would have to
in revenue during the pandemic rely heavily on suppliers (Nhon,
(Reuters, 2020). n.d.).
- Supply chain disruption because - Supply chain disruption because
of the COVID-19 impact: of the COVID-19 impact: KFC has
McDonald9s has generally generally experienced supply chain
experienced supply chain disruptions, forcing them to remove

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disruptions, forcing them to remove several of its regular menu items

several of its regular menu items such as fries and chicken portions
such as fries and chicken portions (Quan, 2022).
(Quan, 2022).
- Outcomes due to going against
customer tastes: McDonald9s has
removed most of the healthier
choices from its menus, including
salad and yogurt (Patton, 2022). In
order to maintain uniformity,
McDonald9s Vietnam may also
eliminate those healthy options,
resulting in customer
dissatisfaction.
<< Back to <2.2.4. External Factors - Threats=

<< Back to <2.2. SWOT Analysis=

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Appendix 4: Perceptual Positions

4.1. Perceptual Map Input
Stage 1 - Raw Data Input
Price 1 2 3 Sources
McDonald9s 5 7 28 Figure 1.5
KFC 10 25 5
Lotteria 20 15 5
Service Quality 1 2 3 Sources
McDonald9s 15 14 11 Figure 1.6
KFC 8 21 11
Lotteria 8 19 13
Stage 2 - Perceptual Map Input
Price Service Market Share Sources

Quality
McDonald9s 2,575 1,9 1,70% Price:

Calculated
Service
Quality:
KFC 1,875 2,075 11,40%
Calculated
Market share:
Vietnam
Lotteria 1,625 2,125 17,90%
Investment
Review (2022)
<< Back to <2.3. Perceptual Positions=

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4.2. Perceptual Map Output
<< Back to <2.3. Perceptual Positions=

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Appendix 5: Target Market
Target segment McDonald’s KFC Lotteria
Demographic - Age: from 5 to under 40 - Age: from 5 to under 30 - Age: from 5 to under 35
years old years old years old
- Gender: male & female - Gender: male & female - Gender: male & female
- Income: Middle to upper - Income: Middle to upper - Income: Middle to upper
- Occupation: students, - Occupation: children, - Occupation: children,
white-collar workers (the students, workers students, workers
main segment) (white-collar and blue-collar) (white-collar and blue-collar)
(Phan & Nguyen, 2016) (Vu, 2021) (Tien, 2020)
Geographic - Density: Target customers - Density: Target customers - Density: Target customers
live in urban areas of large live in urban areas of large live in urban areas of large
cities such as Ho Chi Minh cities such as Hanoi, Ho Chi cities such as Hanoi, Ho Chi
City, Hanoi. Minh City, Danang. Minh City.
Psychographic - Personality: Youthful, - Personality: commitment to - Personality: fun, youthful,

modern, trendy trying new things, youthful socialized, open-minded,
energy, modern willing to try new things
- Lifestyle: - Lifestyle: - Lifestyle:

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+ Modern, busy with work + Modern, busy, and + Modern, busy with work
and study trendy lifestyle and study
+ Love family gatherings + Love family gatherings + Love family gatherings
+ Love taking kids out for + Love taking kids out for + Love taking kids out for
eating out eating out eating out
+ Possess positive views + Possess positive views + Possess positive views
toward fast food toward fast food toward fast food
+ Discover new things + Discover new things
+ Dynamic and trendy with
(McDonald9s Vietnam, n.d.-b; a touch of Korean
Osman et al., 2014) (Nhon, n.d.) (Tran & Ha, 2019)
Behavioral - Attitude towards product: - Attitude towards product: - Attitude towards product:
Positive attitude when Positive attitude when Positive attitude when there
having family events, having family events, are tailored children and
discounts discounts family events, discounts
- Benefits soughts: - Benefits soughts: - Benefits soughts:
+ Delicious and diversified + Delicious and diversified + Delicious and diversified
food food food
+ Diverse menus + Suitable price + Suitable price
+ Fresh food + High product quality + High product quality

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+ Food hygiene and + Convenient services + Convenient services

safety such as home delivery such as home delivery
+ Beautiful decoration of service service
food and dishes + Lively, friendly, youthful, + Lively, friendly, youthful,
and warm environment and warm environment
(Duong, 2021a) (Giang, 2016) (Giang, 2016)
<< Back to <2.4. Target Market=

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Appendix 6: Current Marketing Mix 7Ps
Current McDonald’s KFC Lotteria

Marketing Mix
Product - Product classification: - Product classification: - Product classification:

+ Burger (main product) + Chicken (main product) + Burger (main product)
+ Fried chicken + Spaghetti + Promotion
+ Rice + Burger + Combo
+ Happy meals + French fries + Value
+ Snacks/sides + Snacks + Set
+ Beverages + Desserts + Chicken Set
+ McCafe - 4 product lines: + Chicken
+ Desserts + Combo 1 person (For + Rice
+ McCafé one) + Dessert
+ Condiments (special + Group combos (For + Meli Menu
dipping sauces sharing) + Drinks
compared to other rivals) + Hot deals
+ Single-odd dish
(McDelivery Vietnam, n.d.) (KFC Vietnam, n.d.) (Lotteria Vietnam, n.d.)
- Packaging: Over 80% of - Packaging: A prominent-size - Packaging: Because Lotteria
McDonald9s packaging is image of Colonel Sanders9 focuses on recycling and

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made from sustainable head is garnished on the front environmentally friendly

materials. The company also of the containers, packets, programs, its products are
set targets for using only and cups, in the KFC9s packaged with recycled
environmentally friendly trademark red and white color materials such as glassware
packaging and recycling at scheme. Most recently, KFC and plastic to minimize the
the majority of its stores by packaging incorporates usage of environmentally
2025 (Packaging, Toys & storytelling at its back by hazardous packaging (Tien,
Waste, n.d.). providing guidelines for 2020).
reheating leftover chicken, a
short history of its fried
chicken, and the tagline <It9s
Finger Lickin9 Good= (Dean,
2021). Additionally, the paper
bucket packaging is also
earth-friendly since it is made
of approved recyclable
paperboard (Valinsky, 2021).
Price - Odd-even pricing: Instead - Odd-even pricing: When - Odd-even pricing: Instead of
of VND 70,000 for an EVM looking at the KFC9s menu, VND 40,000 for a Beef Egg
combos, McDonald9s set the most of the product selling Teriyaki Burger Value, Lotteria
price at 69,000 VND, which price is listed in odd numbers, set the price at VND 39,000,

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can be perceived as cheaper varying from VND x1,000 to which can be perceived as
than the even price by VND x9,000, and very few cheaper than the even price
consumers. products are priced at VND by consumers.
x0,000 (for instance, VND
37,000 rather than VND
40,000). This tells the
customer that the product is
priced at the right value, not
fooled by rounding up to the
nearest VND.
- Bundle pricing: McDonald9s - Bundle pricing: Bundle - Bundle pricing: Lotteria
offers food combos that are pricing is kept much lower offers food combos that are
more discounted than buying than the price of individual more discounted than buying
each item separately. For products in order to entice each item separately. For
example, customers can consumers to buy instance, customers can
choose a Happy Meal combo combinations instead of just a choose a Fish Burger combo
including fried chicken, few items. This is clearly including fries, burger, and
burger, soft drink to save shown in the Combo 1 person soft drink to save VND
costs. (for one) and Group combos 12,000.
(McDelivery Vietnam, n.d.) (for sharing). For instance, a
combo including one burger,
one piece of fried chicken,

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and one drink only costs VND

87,000 while costs the sum of
VND 102,000 if bought
separately.
- Multiple unit pricing: Dishes - Multiple unit pricing: Dishes
are sold in packages for less are sold in packages for less
money than they would cost money than they would cost
as individual units. That is, for as individual units. For
one piece of fried chicken, example, the price of one
KFC charges its customer piece of fried chicken is VND
VND 35,000. While two 35,000. Meanwhile, the price
pieces of fried chicken cost of three pieces of fried
VND 68,000 (VND 34,000 chicken is VND 99,000 (VND
each) and three pieces of 33,000 each).
fried chicken cost VND (Lotteria Vietnam, n.d.)
101,000 (VND 33,000 each).
- Reference pricing: KFC
implements the 8upsize9 deals
for identical products in order
for its customer to have
relevant comparisons and
may therefore trade up (for

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instance, placing an item

charging a reasonable price,
VND 48,000 for three pieces
of hot wings, next to a more
costly one, VND 75,000 for
five pieces of hot wings).
(KFC Vietnam, n.d.)
Promotion - Advertising: - Advertising: - Advertising:

+ Official Website & App + Official Website & App + Official Website & App
+ Social media: + Social media: Facebook, + Social media: Facebook,
Facebook, Instagram, YouTube, Instagram Instagram, Zalo, YouTube
Tiktok + In-store display: All KFC (for example, in Lotteria9s
+ In-store display: chains execute in-store commercial ads on
McDonald9s stores have hypes on new items, YouTube, they use
in-store displays deals, and periodic celebrity endorsement
announcing its latest discounts through store strategy by working with
promotions and events. billboards, posters, and celebrities, such as
videos. young singer Amee, to
+ Out-of-home (OOH) catch more attention from
advertising/Billboard: In young consumers who
2019, KFC partnered with

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Agency PS21 to launch are the main segment for

an innovative OOH Lotteria (Chi, 2022)).
advertising campaign + In-store display: Lotteria
called the Chicken uses in-store banners
X-Rays Campaign, which and posters to advertise
uses X-ray images of its new products,
chicken pieces to display promotions, and monthly
the quality of fried discounts.
chicken pieces (Ly, + Out-of-home (OOH)
2021). advertising/Billboard:
Lotteria uses billboard
advertising in big cities
like Hanoi or Ho Chi
Minh. It places the
billboard in crowded
locations like
intersections to easily
catch the eyes of motor
riders.
- Public relations: Uses - Public relations: KFC - Public relations: Lotteria9s
Facebook as McDonald9s consistently engages in a Facebook page frequently
primary channel for variety of sponsorship and broadcasts any new Lotteria

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consumer communication, charitable endeavors to promotion campaign and

giveaway, and grand opening contribute to society, improve menu. Because Facebook is
announcements. Besides the efficacy of communication a strong medium for
that, the business is active on and word-of-mouth (WOM), interacting with clients, this is
other social media networks enhance customer relations, a wonderful approach to
such as Tiktok and Instagram and create goodwill with sharing information on social
to advertise its brand and customers. A few of them media.
share updates. Additionally, include the activity of <Charity
McDonald9s occasionally For Life= of KFC Vietnam to
hosts community events to aid the poor and the old (KFC
enhance brand awareness. Vietnam, 2021), or a charity
For example, sponsor a campaign to provide food for
partnership with Vietnamese medical personnel in
organizations to award concentrated isolation areas
scholarships and presents to in Ho Chi Minh City and
children with disabilities in Hanoi during the COVID-19
Vietnam on Children9s day epidemic (KFC Vietnam,
(Vu, 2022a). 2020).
- Sales promotion: - Sales promotion: - Sales promotion:
+ Weekly deals: From + Weekly deals: Being + Weekly discount:
Monday to Friday, aware of the tastes and Customers who visit
customers can visit preferences of Lotteria9s outlets directly

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McDonald9s to receive Vietnamese consumers, can get a Happy Lunch

weekly offers such as KFC regularly launches combo for only VND
buy-one-get-one-free promotions that are valid 37,000 from Monday to
(BOGO) or additional not just on holidays but Friday from 11 am to 14
goods (McDelivery also on random pm (not applicable on
Vietnam, n.d.). weekdays. holidays).
+ E-voucher/Coupons: + E-voucher/Coupons: + E-voucher/Coupons:
Special offers and Normally, customers can Normally, customers can
coupons on delivery immediately hunt for hot immediately hunt for hot
apps such as Grab. e-voucher deals that KFC e-voucher deals that
+ McDonald’s app gives away for free Lotteria offers without any
exclusive deals and without any cycle or cycle or special occasion,
rewards: Customers can special occasion, yet with yet with a limited quantity,
get free meals when a limited quantity, on the on the promotions section
downloading McDonald9s promotions section of of ZaloPay or Grab
app for the first time. App MoMo e-Wallet or (Emily, n.d.).
users may receive ZaloPay. + Patronage rewards: For
exclusive offers, + Cash gratitude: On customers who frequently
discounts, and/or KFC9s birthday, purchase items from the
patronage rewards that customers may have the store will be given a
are not available in opportunity to receive LPoint card, which will
either cash in hand, a accrue points each time

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stores (McDonald’s App, KFC gift voucher, or a they make a purchase.

n.d.). mobile top-up code when They can save 10% on
making purchases at their upcoming bill if they
KFC, whether dine-in, have earned enough
take away, or for delivery points.
service (KFC Vietnam,
2022).
Place - McDonald9s offers both - KFC offers both types of - Lotteria offers both types of
types of distribution: distribution: distribution:
+ Direct distribution: - Direct distribution: + Direct distribution:
Providing products Providing products Providing products
directly to customers (via directly to customers (via directly to customers (via
physical brick-and-mortar physical brick-and-mortar physical brick-and-mortar
storefronts, official storefronts, official storefronts, official
channels, and home channels, and home channels, and home
deliveries by brand deliveries by brand deliveries by brand
employees). employees). employees).
+ Indirect distribution: - Indirect distribution: + Indirect distribution:
Utilizing marketing Utilizing marketing Utilizing marketing
intermediaries to intermediaries to intermediaries to
distribute goods to distribute goods to distribute goods to

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consumers (via delivery consumers (via delivery consumers (via delivery

applications like Grabs, applications like Grabs, applications like Grabs,
Baemin, Shopee Food, Baemin, Shopee Food, Baemin, Shopee Food,
GoJek, Loship, etc.) GoJek, Loship, etc.) GoJek, Loship, etc.)
- McDonald9s places its stores - KFC places its stores in - Lotteria stores are located in
in densely populated urban densely populated urban densely populated urban
regions. Currently there are regions and large cities such areas and large cities such as
26 stores (1 store in Nha as Hanoi, Ho Chi Minh City, Hanoi (38 stores) or Ho Chi
Trang, 6 stores in Ha Noi and Da Nang, Can Tho, and Hai Minh City (62 stores).
19 stores in HCM city) Phong, etc. Without massive Currently, Lotteria has 230
development, KFC expands outlets in total in Vietnam.
its store system in a solid
direction, yet expands up to
153 outlets now).
People - Frontline employee - Frontline employee - Frontline employee

requirements: requirements: requirements:
+ 18+ years old + 18+ years old + 18+ years old
+ Service style is friendly + Service style is young, + Service style is young,
and professional. enthusiastic, attentive, enthusiastic, attentive,
and polite and polite
(McDonald’s Vietnam, n.d.-a) (Tien, 2020) (Tien, 2020)

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Process - 3 ways consumers can - 3 ways consumers can - 3 ways consumers can
buy/order: buy/order: buy/order:
+ directly at the store: with + directly at the store: with + directly at the store: with
the staff, using SOK, or the staff the staff
using a drive-thru system + via KFC website or KFC + via Lotteria website or
+ via McDonald9s website app Lotteria app
(McDelivery) or + via collaborative delivery + via collaborative delivery
McDonald9s app apps (Grabs, Baemin, apps (Grabs, Baemin,
+ via collaborative delivery Shopee Food, GoJek, Shopee Food, GoJek,
apps (Grabs, Baemin, Loship, etc.) Loship, etc.)
Shopee Food, GoJek,
Loship, etc.)
Physical - The main color: red and - The main color: red and - The main color: red and
evidence yellow (Cutolo, 2022) white (Valinsky, 2021; Dean, yellow (Tien, 2020)
2021)
<< Back to <2.5. Current Marketing Mix 7Ps=

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Appendix 7: New Innovation and Target Market Profile

7.1. New Innovation - Innovation Cycle
<< Back to <5.1. The New Innovation=
7.2. New Target Market Profile
Customer portrait
Age: 18-31
Job: Students, white-collar workers
Income: Non-to-upper
Living: Urban areas in Vietnam
- Familiar with online delivery services on Grab, Baemin, Gojek, etc.

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- Love eating out and spending time with friends.

- Catch up with the latest trends on social media such as Tiktok.
- Interested in collecting merchandise from both local and international
celebrities.
- Enjoy having discounts on their meals.
Customer insights of eating habits

Focus group (N = 5)
- I want to have convenient, affordable, and tasty food since I am very busy with my
work and/or study schedule.
- I want to dine out with family and friends.
- I want to enjoy my meals in a well-decorated, colorful and modern restaurant with
friendly staff.
- I want to have healthy options that are low in calories and beneficial to my health.
Customer insights about McDonald’s

Focus group (N = 5)
- I want McDonald9s Vietnam to have a wider range of sauces like foreign ones such
as hot mustard, ranch, etc.
- I want McDonald9s Vietnam to create more dish options that suit local tastes.
<< Back to <5.2. New Target Market Profile=

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7.3. New Perceptual Map
<< Back to <5.3. New Perceptual Map=

<< Back to <5. THE NEW INNOVATION & TARGET MARKET PROFILE=

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Appendix 9: Register of Attendance to Meetings
NAMES W5 W6 W7 W8 W9 W10 W11 W12 NOTES

(+ Contribution Percentage)
Le Thanh Dat P P P PE P P P P - A: Absence without reason
(60%) (*) or with irrational reason

- AR: Absence with a rational
P P P P P P P P
Huynh My Ky Duyen
reason
(100%) (***)
- P: Fully present
PL PL P P P P P P - PL: Present yet join late
Nguyen Quynh Giang
(65%) (**) - PE: Present yet leave early
P P P P P P P P Overall Result: Positive
Giap Kim Ngan
Contribution
(100%) (***)
- A: 0/48
P P PL P P P PE P
Nguyen Le Kim Phung - AR: 0/48
(60%) (*) - P: 43/48
P P P P P P P P - PL: 3/48
Nguyen Phuc Anh Thy
- PE: 2/48
(60%) (*)
(*) Not actively discussing (**) Slightly contribute to the discussion (***) Actively discussing

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Appendix 10: Member’s Task Allocation
What needs doing? List required tasks. List names of team

As per the <Marking criteria & How long will it take members who collaborated
standards=. to complete each in completing each task.
task? This is not an individual
task!
1. Critically evaluate any two 1 weeks ● SOK machine: Ngan,

current innovations, of your Duyen, Phung
choice, selected from your ● BTS meals: Duyen,
team9s allocated industry Phung, Dat
(comprising various
enterprises) within the
Vietnamese marketplace.
Refer to chapter 1.
2. Critically analyze current 4 weeks ● Survey: All members

marketing activities of your ● Draw Perceptual Map:
allocated 8Enterprise – brand9s Giang
product category9 and its two ● Describe and analyze
main competitors in the Perceptual Map: Ngan
Vietnamese marketplace. ● Other activities of the
Refer to chapters 3-5. task:
- McDonald’s: Dat,
Giang
- KFC: Ngan, Thy
- Lotteria: Duyen,
Phung

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3. Critically analyze current 3 weeks ● Supply: Giang, Phung

microeconomics ● Demand: Duyen
conditions facing your ● Price of Elasticity: Ngan
allocated 8Enterprise – brand9s ● Market Structure and
product category9 and its two Consequences: Thy,
main competitors in the Duyen
Refer to chapters 6 & 8.
4. Link your team's research 1 week ● Survey: All members

analysis in steps '1-3' to ● Problem identification:
identify Duyen, Dat
and explain one (1) problem
facing your allocated
8Enterprise - brand9s product
category99 in the Vietnamese
marketplace.
5. Apply creativity to transform 2 weeks ● New Innovation: Ngan

the one (1) problem, see task ● New Target Profile:
4, to an innovation for a new Giang, Phung, Duyen
product within the same ● Revised Positioning
allocated 8Enterprise – brand9s Map: Giang
product category9. Refer to
chapters 2 & 1.
6. Develop a marketing mix 2 weeks Thy, Dat

strategy to launch your
new product in the
Refer to chapters 4 & 5.

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7. In-text citations – APA 1 week Ngan

WesternSydU style.
8. Reference List – APA 1 week Ngan

WesternSydU style.
9. Proofread and format 4 days Ngan

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EIM-T222WSB-3 ER Project Group 4 Mc Donald's

Enterprise Innovation and markets (Western Sydney University)

Studocu is not sponsored or endorsed by any college or university

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1. EVALUATION OF CURRENT INNOVATIONS 6

2. CURRENT MARKETING ANALYSIS 9

3. CURRENT MICROECONOMICS ANALYSIS 15

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3.1. Pattern of Supply 15

5. THE NEW INNOVATION & TARGET MARKET PROFILE 20

6. THE NEW MARKETING MIX STRATEGY 24

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3.3. External Factors - Opportunities 65

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1. EVALUATION OF CURRENT INNOVATIONS

1.2. McDonald’s Current Innovation

McDonald9s is the first and foremost fast-food

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beginning of the operation, personnel support is provided to guide customers to become

The second innovation of McDonald9s is the BTS

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2. CURRENT MARKETING ANALYSIS

A PESTEL analysis, which provides an environmental study dimension of organizational

2.2. SWOT Analysis

Numerous series of events are influential on a business action, either directly or

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2.2.1. Internal Factors - Strengths

Superior brand recognition, a huge fast-food distribution infrastructure, and an

2.2.2. Internal Factors - Weaknesses

2.2.3. External Factors - Opportunities

Common and practical opportunities in the Vietnamese market comprise beneficial

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2.2.4. External Factors - Threats

2.3. Perceptual Positions

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2.4. Target Market

2.5. Current Marketing Mix 7Ps

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2.5.7. Physical Evidence

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