2014

Group 7:

NGUYEN THI MAI ANH

NGUYEN THI MINH CHAU

LE THI YEN NHI

NGUYEN CAO TOAN

A2 MarketingIntelligence

1

A2 MIGroup 7

Agenda

The quick service (fast food) restaurant industry is significant and growing aspect of

the overall restaurant industry. With the life modernization, citizens tend to choose

quick food restaurants for saving time. Currently, many quick service brands

imported into Vietnam market such as: KFC, Burger King, Mc’ Donald, Jollibee, Pizza

Hut, Alfresco, etc. For long-term success quick service restaurants must be perceived

as offering sufficient value for consumers or receiving the high satisfaction of

customers.

To talk about this industry, in this report, there are two main chapter would be

shown including assessing market size and future demand and measuring customer

satisfaction through an example of Lotteria’s Hamburger.

For chapter one, the first part (3.1) will clear about this market size trends in the

quick service restaurant market. In order to identify and evaluate competitors’

respective strengths and weaknesses (3.2) through key factors of success, the

company could have a better product strategy as well as the effective marketing

(3.3); especially they can position their business.

For chapter two, to measuring the customer satisfaction, it will firstly illustrate there

is a market research needed for Lotteria’s Hamburger through the appropriate

techniques such as Focus Group and Survey (4.1). In this chapter, it continues to

show how to Design questionnaires and complete a customer satisfaction survey at

4.2. Lastly, there is a review of the success of a completed customer satisfaction

survey in order to release strong recommendations for Lotteria’s Hamburger in the

quick service restaurant industry

Table of ContentsAgenda.......................................................1INTRODUCTION.................................................2

2

A2 MIGroup 7

Chapter 1. ASSESSING MARKET SIZE ANDFUTURE DEMAND............33.1Market size trends in fast food market....................3

3.2 Plan and carry out a competitor analysis for a company and a given competitor..........83.3 Evaluate a company’s opportunities and threats for one of their products............12Chapter 2. MEASURING CUSTOMER SATISFACTION...154.1 Evaluate market research techniques of assessing customer response..................15

4.2. Design and complete a customer satisfaction survey.....20Appendix....................................................29Reference...................................................32

INTRODUCTION

INTRODUCTIONLotteria is the reputable fast food chain of restaurants,

which is released first in Japan and Korea in 1972. With

hundreds of restaurant put in more than 27 big cities in

Vietnam, currently Lotteria is accounting for 40% of total

market sales of fast food in VN.

With many diverse fast-food products, the main focus of

Lotteria when entering Vietnam is still hamburger, the forte

of the franchise. Till 2012, Lotteria is a dominant of

hamburger market shares with approximately 70%However, due to

the recent entrance of Burger King – a well-known brand for

3

A2 MIGroup 7

hamburger, Lotteria has decided to create a marketing campaign

to promote and sustain the position of Lotteria in the

marketplace.

Moreover, the target customer of Lotteria’s Hamburger is aimed

at the teenagers, however in recent years, the main customers

of this brand are young people and office staffs.

MAJOR FINDINGS

Chapter 1. ASSESSING MARKET SIZE ANDFUTURE DEMAND

3.1 Market size trends in fast food market1. Current growth trends, market size:

Growth trendsOverall fast-food consumption in Vietnam accounted to US$55.81in 2012 according to an international research; firm BusinessMonitor International (2013). Quick service restaurantrecorded a healthy growth CAGR of 26%, which was slightlyfaster than in 2011 while other industries saw a decline.

Market share: Lotteria occupied 60-70% of hamburger market share and 17%

fast food market share (Nielsen, 2012).

4

A2 MIGroup 7

2. Major drivers of trends:

Political Since the Vietnam has joined WTO in 2007,Vietnamese government has more policies toencourage foreign investment (WTO, 2013). Vietnammarket is opened to different overseas brands andit creates the trend of growing internationalproduct/service. However, integration process alsobrings more competitors to the company.

Demographic

According to Nielsen Vietnam (2013), there is 86%of fastfood industry customer is from 20- 35 yearsold. In 2013, Vietnam’s population is about 92million, in which 31% live in urban, 65% of thepopulation is under 35 years old, who has modern,busy life, prefer to eat out (Tong Cuc Thong Ke,2013). It means that, the spending power ofVietnamese is increased, trend of eating-out makefast-food chains have opportunity to grow rapidlyin such a promising market- Vietnam.

Culture Vietnamese people ingeneral care aboutexpressing themselves,their social staus,financial condition bypurchase andexperienced the goods

or service that represent their status. They areinterested with good, service have foreign style,want to explore new, fun, unique trends that willrelect on themselves.Korean lifestyle: music, film and Korean culture is

5

A2 MIGroup 7

dominating and take much effect on Vietnamese younggeneration, the diffusion of Korea music and filmstimulus Lotteria become very familiar in Vietnammarket. Young people want a catching-eyes, gandyplace to gathered, celebrate birthday party or somespecial events. In Lotteria, they can not onlyenjoy delicious dishes, but also can gather in acolorful and dynamic design restaurant.

Economic: The Vietnamese economy has officially recorded astrong GDP growth from $123.961 in 2012 to $141.67in 2013.

However, in2013 the country's varying rate of inflationremains a concern, as the less affluent classes arenot able to afford to eat-out whenever the rate ishigh, which thereby negatively impacts foodservicesales. (researchandmarkets, 2014)

According to trading economics (2014), theinflation trend is dramatically decreasing in 2014;it helps economic incentive and increase demand.

6

A2 MIGroup 7

Technological

In a century of technology, more and moreVietnamese people can easily access to theInternet. Vietnam ranked the second of internetuser in Asia, just behind the most populouscountry, China and Vietnam has an amazing number ofFacebook users: more than 20 million. Lotteria tookthat advantage of the trend, the company has usingmany effective tools to keep in touch and seek newcustomer such as: Lotterial website, Facebook page.Those tools not only enable customer to orderonline, but also help Lotteria to communicate,catch the customer trends.

3. Forecast

Quantitative

Market size forecast = Average frequency purchase/month x

Number of customer/ month

According (red brand builders, 2014), in 2013, there are about

150 customers per day come to Lotteria in 190 stores in

Vietnam, in 2014, it is estimated to reach 200 customer per

day in 195 stores in Vietnam.

7

A2 MIGroup 7

Figure 2: vinasearch.net (2013)

Age Average frequencyof eat- out/ per month (2013) (vinaresearch, 2013)

Number ofcutomer/month in 2013 190*150*30

Marketsize 2013

Average frequency ofeat- out (2015) (vinaresearch,2013)

Number of customer in 2014(195*200*30)

Marketsize forecast in 2014

< 20 1-2 times/ month

855000 5130000

1-2 times/ month

1170000 8190000

20– 30

3- 5 times/ month

4 - 6 times/month

>30 0- 1 time/ month

0- 1 time/ month

After calculate, the result of market size forecast in2014 is 1.6 times compares to the result in 2013. Themarket size of Lotteria in 2014 is predicted growthcontinually.

Qualitative:Economic GDP Predictions — In 2011, GDP reached US$121.6

billion according to IMF (2014). It is estimatedthat Economy in Vietnam will become the 17th

8

A2 MIGroup 7

largest in the world by 2025(vietrf.com, 2014).Demographic

The dominance of young generation in Vietnam stillwill open more opportunity for Lotteria to extendtheir market share in the future.

Culture With many fastfood competitors want to join Vietnammarket, there is a threat for Lotteria Koreanculture style to compare with much wild, free,special Western style.

Technology

In the future, when there are rivals in the market,Lotteria have to stand out and express their owndifferent characteristics from others. The Internetis growing fast either. Knowing the innovation oftechnology will help Lotteria spread the messageand reach more customers quickly.

3.2 Plan and carry out a competitor analysis for acompany and a given competitor

Identify your competitors:

For the whole quick service market, it

is easy to define KFC “Who is

Lotteria current competitors.”

However, in term of Hamburger’s

products, Burger King is considerably Lotteria potential

competitor, which is the fourth of the top global leading fast

food franchise and the second of the top leading hamburger

market. Burger King has entered into Vietnam market in 2012

and it would soon become Lotteria’s solid competitor in term

of retailing hamburgers.

Analyze the strengths and weaknesses

9

A2 MIGroup 7

According to Richins, M. L. (1994), for customers, the value

in shopping/consumption behavior percepts based on perceived

imperative criteria, which are realized throughout the

behavior. In the case of Loterria Hamburger, the most

prominent criteria are: Quality, Price, Menu Variety, Size of Burger,

Speed of Service, Location, Cleanliness, and Atmosphere. These factors

established ultimately leading to the level of customers’

satisfaction, which promotes them to repeat business or

compete with competitors then drives Lotteria profits.

Price:

Price is an essential aspect impacting on customers’ perceived

value of dining experience.

It can be obvious that customer desires to own the best

product with economic price. Thus, the price factor plays an

important position in customers’ mind. It should be marked at

8/10.

For Lotteria, it has different level of price for each kind of

hamburger, with the cheapest hamburger being under

$1(15,000vnd), the most expensive hamburger being more than $2

(48,000 vnd). Thus it can be evaluated that hamburger of

Lotteria is relatively cheap. It should be mark at 7/10.

For Burger King, with the price ranges being from $3 to $4.5

for one hamburger. It seems quite high for a meal with

Vietnamese living standard. We mark 5/10 point for it.

Taste:

10

A2 MIGroup 7

In developed countries, fast food is popular because of its

convenience. However, when this trend import to Vietnam

market, flavor and novelty are the key factors leading to the

success of many quick service refutable brands. That is to

say, customers tend to choose the restaurant where has better

hamburger taste, so we mark it 8/10.

For Lotteria, its menu contain similar flavor to the taste of

Vietnamese customers, which cause the easy adaptability of

customers to the food. Beside that this company has existed

for 8 years in Vietnam market, thus the customer’s acceptable

degree of hamburger taste is high. However, in order to

compare with traditional food of Vietnam, the Lotteria

hamburger taste is hardly to compete. Thus, we mark it 6/10.

For Burger King, the western taste is strange with Vietnamese

flavor, but quality and the taste of them are qualified in

over the world. So it must be marked at 6/10.

Speed of Service:

The speed of service effects indirectly the customer

satisfaction about the product. It could be the factor for

customers to making a purchasing decision because normally

burgers are serviced in a quick timely fashion. Thus it is

easy to understand that quick service restaurants have to

recognize purchaser traffic patterns and have well-organized

and consistent operations. Therefore this factor is a key

success with the mark of 6/10.

11

A2 MIGroup 7

For both Lotteria and Burger King, the staffs are trained

unrelentingly to satisfy their customers. Consequently, there

are little complaints about their service. We mark them 7/10

Variety:

It is a fact that with burger and butter Fast food is easy to

create a greasy feeling, so that customers often want to

change their dish. To remain customers close to brand, the

company needs to provide many options to customers. Thus, in

this quick service industry, the factor of variety is

important at 7/10 score.

For Lotteria, without providing multiplied beef and chicken

burgers, the company also promotes the ocean burgers such as

shrimp and fish burger. Loterria produce more than 15 types of

burger flavor. This means, the level of variety is high. For

lotteria it is scored 8 in term of this factor

Meanwhile, Burger King provides a few options including beef

and chicken burgers.

Freshness:

In the nowadays society, consumers are almost concerned about

the freshness of product, which can evaluate how qualified a

product is. However, there is a part of customers who do not

care about the hamburger’s freshness due they automatically

think that reputable brands such as Lotteria or Burger King

already meet the standard of hygiene. Thus, the critical level

12

A2 MIGroup 7

of freshness factor is marked at 5 points. Moreover, in 2014,

KFC, Lotteria and McDonald’s had to face with a bunch of

scandals related to hygiene (phunutuday.vn, 2014) Although

these scandal do not directly involved in Hamburger, this

significantly impact on the buyer’s psychology. Finally, the

weight of this factor is 7 points.

For lotteria, according to the policy of the company provided

by Lotteria manager, any miss-ordered hamburgers will be

eliminated the end of the day. Besides, materials of Hamburger

(i.e. tomato, lettuces, onion, etc.) will be supplied in the

early morning by reliable suppliers. Thus, this factor of

Lotteria is deserved 7 points. However, because of the listed

scandal above, the weight is reduced to 6 points.

For Burger King, with its strict hygiene process, there is no

scandal seen in this brand, so it should be got 8 points.

To sum up, this table below is our final evaluation of KFS in

term of lotteria and Burger King.

13

A2 MIGroup 7

From this figure, it can be seen that the total weight of

lotteria (256.5) is higher than that of Burger King (229), so

Lotteria currently stands as a market leader in term of

selling burger.

Thus, it is easily to emphasize the strengths and weakness of

Lotteria’s Hamburger in order to release valid and practical

recommendations as following:

KFS Weighte

d

Score

of

Lotteri

a

Weighted

score of

Lotteria

Score of

Burger

King

Weighted

Score of

Burger

King

Price 8 8 64 5 40Flavor 7 7 49 6 42Freshness 7 6 42 8 56Speed of

Service

7 6.5 45.5 8 56

Variety 7 8 56 5 35Total 256.5 229

14

A2 MIGroup 7

Lotteria’s Hamburgers

KFS Strengths/

Weakness

with

competitors

Recommendations

Short-term Long-Term

Price Strength Maintaining the

diversity of “value

menu”

Carry out more

promotion activities

with attractive

prices (i.e. discount

days, gold hours for

strategic hamburger)

Create the good

relationship with

the Vietnamese

suppliers to reduce

the costs.

Flavor Strength Continuing to apply

Vietnam traditional

taste.

Adding products

which has

traditional unique

taste from another

countries (i.e.

India)Freshne

ss

Weakness Release the strategic

slogan to assert the

hygiene. (i.e. if any

customer does not

satisfy with the

hamburger’s

freshness, Lotteria

will pay money back)

Publish the

production process to

ensure the product’s

hygiene

Building the

Lotteria Farm to

ensure the quality

of materials with

the strict

management system.

Speed

of

Service

Weakness Increasing the

numbers of sales

force in each

Investing more on

training staffs,

which not only

15

A2 MIGroup 7

3.3 Evaluate a company’s opportunities and threats for one of their products.

After analysing the strengths and weaknesses of Lotteria’s

Hamburger in comparison with Burger King, we aware the

opportunities and threats in the future of this brand as well

as this industry. To utilize the opportunities and overcome

threats, we propose some solid recommendations for Lotteria to

enhance Hamburger line.

There are four factors that company can exploit to realise its

opportunities and threats in the current market.

With the major factors involved in Price and Variety of

Hamburger, Lotteria can take advantages to have more

opportunities for reinforcing its position in Vietnam market.

Firstly, It can be denied that with the strength in large

price range, Lotteria has clear chances to increase the number of sales. To

demonstrate, with the diversity of price level from $0.7

(15,000VND) to $2 (42,000VND), the hamburger product line

might meet the larger number of customer, which leads to the

potential growth of sales. Besides that, due Vietnamese living

standard has a dramatic rise in recent years; customers are

willing to accept Hamburger Price released by Lotteria.

Consequently, to raise the revenue from Hamburgers, the firm

should conduct some reasonable actions. The first action

should be keeping creating the diversity of “value menu” going

with the promotion activities such as attractive prices,

16

A2 MIGroup 7

coupon. For further view, in order to have the competitive

prices, the company is recommended to get on well with the

Vietnamese suppliers, so that the corporation will have

agreement in reducing costs. Furthermore, to compete the new

entrants, Lotteria should think to create a new premium

hamburger with competitive prices.

Secondly, another opportunity what the company can see is

expanding the targets’ customers. For instance, with cheese egg

hamburgers ($0.7) a low-income officer still have a full meal.

It means Lotteria could serve customers in many level of

living standard. Thus, Lotteria should keep the diversified

strategy and consider eliminating the products, which trigger

low business effectiveness. Moreover, the company should

consider the product for over-weight people by creating Diet

Hamburger with lower calorie. For example, Bread made by

flaxseed or desserts made from chia-seed.

Besides identifying opportunities of Lotteria Hamburgers,

there are two threats related to the freshness and speed of

service, which need to improve.

Going along with the higher living standard, Vietnamese pay

more attention on their health, so they tend to find the

freshness in their food. Thus, in the recent time, government

manages more strictly on hygiene standard, especially quick-service industry.

To face with this threat, Lotteria should publish the

production process to ensure the product’s hygiene.

Furthermore, so as to delete the negative impress from the

17

A2 MIGroup 7

recent scandals, Lotteria should commit to customers through

carrying out the strategic slogan to assert the hygiene. For

example, if customer has a valid feedback about Hamburgers,

they will receive a gift or free hamburger from the firm.

Remarkably, Lotteria should proposes to Lotte Group to build

the Lotteria Farm to ensure the quality of materials with the

strict management system.

Moreover, because of the higher level of competitiveness in

the quick-service industry, there is a rigorous competition in

service, as the result, the requirement about speed of service is also rising.

Consequently, the firm should concern more about this element

through providing more sales force in each restaurant as well

as controlling unrelentingly service management system.

Besides, investing more in modern technology and staff

training programs are also efficient suggestions.

To sum up, with two great strengths involved Price and Variety

of Hamburgers, Lotteria might catch market opportunities

through maintaining diversified strategy in price as well as

Hamburger products. Besides, creating new kinds of Hamburgers

such as premium and Diet Hamburgers will bestow upon long-term

success for the company. Not only focusing on Strength, the

firm should also concern about its threats related to

Product’s Freshness and Speed of Service. In order to overcome

them, it is necessary that the company would consider

enhancing the hamburger’s quality by the Lotteria Farm

systems. In addition, human resources, especially sales force,

should be invested more by the management system as well as

service-training courses.

18

A2 MIGroup 7

Chapter 2. MEASURING CUSTOMER SATISFACTION

4.1 Evaluate market research techniques ofassessing customer response

Before choosing the most appropriate techniques to assess

customer responses, it is essential to identify the needs of

KFS Opportunities Recommendations

Price - Increasing the

number of sales

because of the

large price

range and the

higher living

standard.

Act: Maintaining the

diversity of “value menu”

Re-act: create the good

relationship with the

Vietnamese suppliers to reduce

the costs.

Pro-act: create a new premium

hamburgerVariet

y

- Expand

targets’

customers (ages,

genders)

Act: Keeping the diversified

strategy.

Eliminating the products,

which has low business

effectiveness

Pro-act: Diet Hamburger

KFS Threats Recommendations

Freshne

ss

- Higher

hygiene

requirement

- Rigorous

accreditation

by government.

Act: Publish the production

process to ensure the product’s

hygiene.

Re-act: Release the strategic

slogan to assert the hygiene.

Pro-act: Building the Lotteria

Farm to ensure the quality of

materials with the strict

management system.Speed

of

Service

-Increasing

competitors

leads to higher

service

requirements

Act: Increasing the numbers of

sales force in each restaurant.

Enhancing the managers’

responsibility in controlling

the service.

Shorten the production process.

Invest for updating technology.

Re-act: Investing more on

training staffs.

19

A2 MIGroup 7

company’s research. These demands could be invisible or

visible.

Thus, we recommend a valuable model to illustrate the process

in identifying the company’s problem, which illustrates below:

From this model, it can be

obvious that the second area (2) shows that CEOs do not aware

the information existing in

internal sourse such as staffs,

product lines managers, etc.

Beside, the third are (3)

represents the company has no

ideas about the concern

existing, while the last space

(4) indicates that the company

awares the problem but they do not have evidences. Any company

desires to allocate their problem coming to the first area

(1), where they know exactly the problem with valid evidence

to carry out strategies.

In each area, there are several efficient techniques for the

firm to move to the better area as can be seen in the

following figure.

Items Area 3 Area 2 Area 4

Awareness No/Low No/Low HighKnowledge No/Low High No/LowKey

Techniques

Focus Group Interview

Focus group

Survey, Observe,

Interview

Figure 2:

20

A2 MIGroup 7

For the study on Lotteria Hamburger, it could be considered in

the third area (3). This means, Lotteria has no ideas about

the concern existing. Therefore, to convert to the first

space, they should follow the process below:

Stage 1: From area (3) to area (4)

Firstly, the researcher should collect basically information

to have a right consumption through focus group method of

sales forces. They directly approach to the customers so those

gathered information would be more practical and valuable.

Focus group is known as an interview in a group of around 8

people normally. These participants are relatively

homogeneous. Using this method gives many advantage and

disadvantages in particular situation

In Lotteria phenomenon, eliminating those drawbacks, this is

the most useful research technique to realize the needs of

research.

1. Focus Group

Area 32. Survey

Area 4implementing

Area 1

(Source: http://www.evalued.bcu.ac.uk/tutorial/4b.htm)

21

A2 MIGroup 7

We picked five staffs from each selected central to implement.

Fortunately, managers provided good chances for us to contact

with current staffs. Consequently, we made two appointments to

have group interviews last Friday and

Saturday (20th and 21th June) in their offices.

Before starting, we presented a keychain per

participant for the good cooperation. In our

meeting, there are four main discussed

questions in order to exploit the information.

- What are the hot products that have the greatest amount of sales?

- Are there any customer’s complaints?

- When is the best time for sale?

- What do you feel about the customers? (Attitudes, habits, etc.)

Overall, the final result of focus group meeting is that:

The most popular Lotteria product line is Hamburger, and there

are many customers’ complaints about this kind of product

also. However, this data is still internal subjective opinion.

Hence, it is necessary to study on “How satisfied customers are

about Lotteria’s Hamburger” from external sources.

(The detail of meeting will be lay on Appendix.)

Stage 2: From area (4) to area (1)

After identifying the needs of research in the first stage -

“How satisfied customers are about Lotteria’s Hamburger”, it should be

focused on collecting the primary data by survey so as to

switch Lotteria situation from area (4) to area (1).

Survey:

22

A2 MIGroup 7

Firstly, surveys is one of the most widely known and useful ways

when the company want to measure something quantitatively or

objectively; or test the more specific questions base upon the

previous exploratory portion. Moreover, survey could query in

a relatively large sample it leads save costs in comparison

with interview or focus group. Survey can be used effectively

for satisfaction research, measuring attitudes or fact gathering,

so that is why Lotteria should use to do research. The company

could easily do survey from questionnaire for 100 customers at

two Lotteria stores in Times city and Royal City to know how

satisfied they are.

Questionnaire:

One of the most useful ways of surveying

is to make questionnaires because of both

its benefits and its scale. With a large

number of 100 respondents (50 males and 50

females), using questionnaire sheets is the most possible

way for the company. Also, this way is reliable due to

saving our costs, time, and human resources as well as

covering the main ideas of the customers .The table below

shows the advantages and disadvantages of using

questionnaire:

Advantages Disadvantages

- Save money, time, human

resource

- Quick and convenient for

- Misunderstand about

questions given

- Gain invalid answers

23

A2 MIGroup 7

customers

- Large-scale survey.

- Gain honest answers

because the clients are

anonymous

- Standardize easily

answers collected

because of the superficial

respondents.

- Might not collect

profoundly information

related to customer conducts,

behavior or attitude.

According to salesnexus.com,

Permission Based Marketing is “The

practice of sending marketing communications only

to recipients who have given their consent to receive

them”. However, not only sending

marketing communication with customer

permission, but it is also a modern

marketing strategy of the company to

improve the relationship between

customers and the firm. All marketing activities should follow Permission

Based Marketing and Survey technique is also not exceptional. To

illustrate, if researchers have the customer agreement before

doing survey, which means that the data collected will be more

reliable. Besides, the company might improve its image through

polite conducts of researchers.

In Lotteria case, before we carry out the questionnaire, it is

courteous to obtain customer permission. We identify the

customers who order Hamburger products in Lotteria restaurants

and wait them finish their meal. After that, we will ask their

24

A2 MIGroup 7

agreement to do survey, which will ensure the relevance for

Permission Marketing. We might say that:

“Thank you for select Lotteria Brand, Would you mind cooperating with us to

done this survey so that the company might serve better in the next time”

How to do surveyAfter deciding to apply Survey method to collect primary data,

the company should follow five fundamental steps which are

demonstrated below to ensure the success of research.

For the first step, validity and reliability of data will be

reinforced through high representive sample. Thus, selecting

appropriate sampling methods plays an essential role.

Step 1: Identify Sample

1 Identify firms, sample2 Collect primary data3 Summarize data4 Analyze and evaluate data 5 Recommendation

Hanoi(100)

Royal City(76)

Vincom Time City

Tower(24)

25

A2 MIGroup 7

We decided to use Cluster and Quota Sampling in our research

for some reasons. Firstly, this sampling technique is cheap,

quick and easy. Instead of sampling the entire country when

using simple random sampling, our company can allocate our

limited resources to the few randomly selected clusters or

areas when using cluster samples. Related to the first

advantage we can also increase his sample size with this

technique. Considering that we will only have to take the

sample from a number of areas or clusters, we can then select

more subjects since they are more accessible. Thus we could

focus group interview as well as Survey more people without

increasing cost. Besides, two type of methods also suits with

research purpose. To make it more clearly, we chose Hanoi to

represent for our research methods because of some following

reasons:

- Hanoi has crowed diverse population with 7 million where

includes mainly people from many different provinces of

Vietnam.

- Living standard of Hanoi is high, that is to say their

demand in using fast food is also high.

Because target customers of Lotteria are young people,

official Staffs and Family, consequently, we decided to carry

out our survey in two big entertaining centers in which have a

huge number of its target customers, especially in weekend.

After considering common sampling methods, we decided to

implement non-random sampling method, which contains cluster

and quota sampling. The main reason for this decision is those

26

A2 MIGroup 7

methods have no sampling frame required. The purpose of our

mission is to identify how satisfied Lotteria Customers are

about the brand’s Hamburgers, it is unnecessary to release

questionnaire to all people living in the city. Hence a

sampling frame cannot be established. In addition the arrivals

density of each shopping center is totally different.

Consequently, the number of recipient in each place should be

selected differently and compatible with the ratio of arrivals

density so as to ensure the data is representative. The

following table will illustrate the number of arrivals and

recipients of two big shopping centers in Hanoi.

City Name of shopping center Number of

recipients (person)Hanoi (7

mil)

Vincom Mega Mall Times

City (12.000

arrivals/day)

24

Vincom Mega Mall Royal

City (38.000

arrivals/day)

76

In detail, so as to save finance for the company, we just

release the survey in Hanoi by the cluster method. Then, we

will implement quota-sampling method to release questionnaire

to people in the big shopping centers chosen. At the Vincom

Time City Tower and Vincom Royal city, we will choose randomly

100 people (with 50 males and 50 females) who order Hamburger

products to carry out questionnaire

100

27

A2 MIGroup 7

Facts have shown that, using cluster and quota method still

exists weakness; that is high potential of bias. Thus we have

to undertake questionnaire as main survey method so as to

overcome this drawback.

In the case of the company, some other methods are not

appropriate. To demonstrate, Random sampling requires high

cost because the population is so big. For systematic

sampling, the problem is high bias. In addition, stratified

and multi-stage method requires sampling frame and multi-Stage

concentrate on Geographic population. All method mentioned

above might not suit with the purpose and situation of

research.

Step 2 +3: Collecting and summarizing dataAfter releasing 100 questionnaires, we received 91 valid

sheets. This data will be standardized by Microsoft Excel. To

specific, we import the data gathered into the software and

present it through bar-chart, pie-chart or diagrams, etc. in

order to synthesis and analysis the primary data.

The next steps will be illustrated in outcome 4.2

4.2. Design and complete a customer satisfaction survey

Survey time: 17/06/2014 - 25/06/2014

Sample size: Released100 surveys (50 male: 50 female),

received 91 valid respondents (43: 48).

Location: Lotteria in Timescity and RoyalCity in Hanoi

Number of question: 7

28

A2 MIGroup 7

Activities Tues

(17/6)

Wed Thu Fri

Sat

Sun Mon Tue Wed

(25/6)

Researchpreparation(human resources,transport, money,focus groupdesignquestionnaire)

Focus group

Releasequestionnaire

Collect thedata

Analyse andevaluate data

Recommendation

Total 9days

As we mentioned above, this research’s purpose is to find out

how satisfied of customer about Lotteria’s Hamburger and

identify the problems of this product. We applied focus group

with the staffs of the company. After that, we will have

better assumtion to help designing questionaire.

Step 4: Analysis and evaluate data collected

After complete customer satisfaction survey, we have collected

91 valid respondents, we release some conclusion by graph,

29

A2 MIGroup 7

chart to help the company have an overview about all the

aspects. First of all, we would like to give a brief overview

of the data, each one separately from one another before go

further in analysing the relation between two different data.

1. Gender, age

In the second figure, the

highest number using Lotteria’s

hamburger is customers from 24-

30 years old. The lowest

number is belonging to less

than 18 years old and more than

30 years old customers. It is

obviously that people from 24-

30 years old have their own

independence financial, busy to

work and rarely have time to

cook for themselves, so that,

they have more opportunity to

eat out and enjoy Lotteria’s

product. On the other hand, most of under 18 years old

customers have to live with family and they also do not own

much money to eat out. The lowest number also goes to

customers more than 30 years old; they also settled down and

30

A2 MIGroup 7

enjoy their home- cook meal, also, they want to save money to

build family instead of eat- out.

2. Recommend to others

This pie chart illustrates the percentage of how people will

recommend Lotteria buger to others. The highest percent (35%)

peole said that they will probably will recommend and the

lowest number is 9% said that they will definitely recommend.

It means that, just a few number of peple actually like

Lotteria burger, while the negative result still take a big

propotion (30%).

3. Customer satisfation about Lotteria’s

hambuger

Most of Lotteria customer

are satisfied about

hamburger diversity and

rate quite high, which is

7 point. Since the company

follow the diversify

prodcuct strategy, they try to release new variety product

every month, it will stimulate customer, make them cirious

9%

35%

26%

16%

13%Recommend to others

Definitely will recommendProbably will recommendNot sure

31

A2 MIGroup 7

and want to try new product. This aspect become a strend and

competitive advantage of Lotteria. However, customers are

quite disapointed about the price and rated it as the lowest

one.

In the following figures we are going to identify the

difference between the satisfaction of daliy user and 2-3

months user. It is obvious to see that daily user are much

more satisfy than the 2-3 months user. They are almost

atracted with the taste of the product and they are also

interested in Hamburger diversity and performance. On the

other hand, with customer who use the product once per 2-3

months seem not really satisfy with it. They average mark of

them is around 4/10 and they do not agree with the price of

product. Thus, the company need to improve the quality and

consider more about the price of the product to attract more

customers.

Product Taste Product performance

Price Hamburger Size

Hamburger diversity Waiting time

Dail

y

0 1 2 3 4 5 6 7 8 9

Daily Users and their satisfation

32

A2 MIGroup 7

Product Taste

Product performance

Price

Hamburger Size

Hamburger diversity

Waiting time

Ever

y 2-

3 mon

ths

4

5

3

4

5

4

Every 2- 3 months users and their satisfaction

4. Gender and frequency

The bar chart shows the

mix chart between

gender and frequency.

In general you can see

the number of two

genders in frequency

are nearly equal. In

addition to that the

highest number of customer in both two gender tend to use the

product once a week, and the smallest number of customer in

both gender belongs to the group of customer who use the

product daily, it is nearly ten times less with the customer

use weekly.

To sum up, this bar chart presents that almost customer in

both gender use the product weeky or might be once a month.

However the number of female customer who use the product

often is higher than the number of male customer, the reason

might be that female are easy to be atractted with good

looking product or new trend.

Male Female0

5

10

15

20

Gender and frequencyNever used DailyWeekly Once a monthEvery 2- 3 months

33

A2 MIGroup 7

5. Gender and their satisfaction

Male

Female

0 1 2 3 4 5 6 7

Gender and their satisfactionWaiting time Hamburger diversity Hamburger Size Price Product performance Product Taste

It can be clearly seen that male customer seems more satisfy

with the Humbuerger of Lotteria than the female customer. The

factor that male customer satisfy most is the Humburger

diversity of the company with many kind of Humburger make them

easy to choose and male customer mark them 7/10 point. With

female customer, they satisfy most with the product taste,

product size and product diversity, however they marked them

only 5/10. Might male customer are easier to satisfy with food

and baverage than female customer, thus they seem to satisfy

with Lotteria’s Hamburger.

However, in general, customer in both gender are not really

satisfy with the lotteria’s hamburger because we can see that

they marked for the quality of product is only around 5 or

6/10.

6. Gender and repurchase at the same frequency

34

A2 MIGroup 7

Male Female05101520

Gender & Repurchase at the same frequencyDefinitely will Probably will

Might or might not

Probably will not

Definitely will not

As we mentioned above, customer who use the product daily are

female but the male customer seems more satisfy with the

product, that might be the reason leads to the act of

repurchase at the same frequency in the bar chart in this

part. The number of male customer who will definitely

repurchase at the same frequency is double the number of

female customer, beside that the number of female customer who

will never purchase Lotteria’s hamburger at the same frequency

three times the number of male customer.

To sum up, the number of male customer who tend to repurchase

the product with the same frequency is much higher than the

number of female customer.

7. Gender and recommendation

35

A2 MIGroup 7

Definitely will

recommend

Probably will

recommend

Not sure Probably will not recommend

Definitely will not recommend

2

10 106

15

8

19

14

52

Gender & RecommendationMale Female

It is obvious to see that female customer will easy to

recommend the Hamburger of Lotteria for other than the male

customer. Total female customer who will definitely recommend

and probably recommend is more than three times of male

customer.

However, in the previous part, we have analizied that the

number of female who satisfy with Lotteria’s Hamburger is less

than the male customer, it migh be influenced by the

psychologic factor belongs to male and female characteristics.

We can see that might the female customer are not satisfy with

the product but it is easy to make them recommend the product

of the company to others than male customer.

36

A2 MIGroup 7

4.3 Review the success of this survey, present the findings and make recommendations.

Conclusions on research findings

i. There are several factors can affect customersatisfaction about Lotteria’s hamburger which isproduct taste, product performance, price, hamburgersize hamburger diversity, waiting time.

ii. The survey results show that Lotteria has beenexperiencing mainly young, customers from 24- 30 yearsold and have financial autonomy. In addition, most ofthem use the product once a month. The research alsodemonstrates that customers are attracted the most bythe diversification of the product and they are notsatisfied about the price.

iii. By combining the variables, we have clearer perspectiveabout two genders on how frequency, satisfied, andidentify whether they will repurchase and recommendothers about Lotteria’s hamburger. Based on surveyresults, both genders have a similarity on thefrequency to use the product, in which, the majorityuse once a month. The result also shows that female aremore open to express their feedback and recommendationto their friends, family, colleagues. In addition, maleare more satisfied about the product than female andthey have higher rate on repurchase aspect.

iv. The research also demonstrates that daily users aremore satisfied than every 2-3 months users.

Overall research limitationsDue to shortage of time and financial resources, theresearch has some limitaion following:

Due to limited of time, the survey are not wellprepared enough. The lack of survey skills andinterview may affect the data collection.

37

A2 MIGroup 7

Small sample size can not represented for the wholecustomer satisfy in Hanoi.

Validity and reliability This research try to get rid of the limitation and aim tohave the best result as possible. This research has ensured tomeet the validity, reliability standard for the whole processto have the best findings.

o Validity:

Content validity: We designed questions that can reflectthe issue and cover the subject of the research as wellas follow strickly all KFS mentioned above, we make surethat key related subjects are not excluded. Our questionincluded all factors that can affect customersatisfaction about Lotteria’s hamburger which is producttaste, product , price, hamburger size hamburgerdiversity, waiting time. We also as customer about howfrequency they came to eat hamberger and their repurchaseto find out deeper about the satisfation relate to habitin oder to effective and appropriate data.

So how can we creat a “right question survey”.Firstly, the assumption for questionaire have to base onsocial conception and psychological by carring on forcusgroup research method. A respondent can give the rightanswer to the wrong questions or the wrong answer to theright questions. For instance, respondents will not tellthe true about personal, information experience such asfrequency, age using Lotteria’s product. Lotteriaresearch has to also aware to make the wrong questionssuch as leading question (“Do you like Lotteriahamburger” Yes/No), no exhaustive question (“The reasonwhy you eat Lotteria Burger” and give lack of availableanswer for customer) (Nguyen, 2014).

o Reliability

Quantitative data collected from staffs who have trueexperience and comunicated closely and frequently withcustomer, will provide better assumption for survey.

38

A2 MIGroup 7

The survey is more reliable since the sample is collectcarefully. We identify the research objective are whoorder Lotteria’s Burger, we wait them to finish theirmeals so that the number of customer agrrement toconduct the survey will be high. Appling permission basedmarketing theory, we asked for customer permission tohave the ethical admit. Therefore, the research result ismore reliable.

Step 5: Recommendations

For the researchBecause of lacking time thus we do not prepare well for the

research and the research is not run so well, we need to

prepare more carefully:

- create more comfortable environment during the focusgroup meeting with Lotteria’s staffs such as find anotherplace outside the office or restaurant, or bring somegift for them.

- during the time collecting data we should seprate that intwo different period such as in lunch or dinner in orderto help the result more reliable

- enlarge the sample size in Hanoi to collect theinformation effectively as much as we can ( might be upto 500 survey because everyday at leat 150 hamburger aresold in each restaurant of Lotteria( red.vn) so we dosurvey to 100 customers in each restaurant and we choose5 restaurants in five big shopping malls)

we can use the online survey to reduce the limit of financeand time, beside that we might do research in larger samplesize. we still maintain Permission Based Marketing to haveethical admit from customers.

For the company’s productIn conclusion, we would like to bring some recommendation forLotteria to attract more customer with the hamburger product:

39

A2 MIGroup 7

- consider about the price and the hamburger’s size tosatisfy customer about the attractive prices or coupon throughgetting on well with the Vietnamese suppliers, so that thecorporation will have agreement in reducing costs.

- create more kinds of hamburger to keep the diversity ofproduct as the compatitive advantage of the brand, such diethumburgers with lower calorie or prenimum hamburgers. Forexample, Bread made by flaxseed or desserts made from chia-seed. - create promotion in the special events which can attractboth male and female customer such as valentine’s day, woman’sday, or in the world cup period the company can design morepromotion or gift for customers.- create some photo competitions such as “customer withhamburger”, “smile with Hamburger to enlarge the image of thebrand ( because Vietnam female has a low impess of presentinghamburger such as: unattracted hamburger, additionally, femaleare enthusiatic enjoying selfie competition so it can makethem be more interested in the brand) - create attractive image of the hamburger to engage morecustomer especially the female customer who are easily torecommend product of the company for other.- enhance the level of freshness and healthiness throughbuild the Lotteria Farm with the strict management system(because female is interested in the high healthy food)

CONCLUSION

With the success of Lotteria’s Hamburger in the quick-service restaurant industry in these years, it has shown that the company’s current strategies are running well such as diversified product with the multiple variety of price. Therefore, the firm should keep retaining those in the short-term. However, for long-term success quick service restaurantsnot only operation but also human resources department has to involve.

40

A2 MIGroup 7

Appendix A.Focus Group- What are the hot products that have the greatest amount of sales?

A: Chicken fried!

B: I think Hamburger, because of “Happy Lunch menu”. It is economic price.

C: Yes, with only $1.7 customers can eat a chicken Hamburger with Pepsi and

potato.

E: And the egg hamburger is just only $0.7 for one, so the number of sales is quite

high.

- Are there any customer’s complaints?

E: The fact that customers sometimes complain about our service. Sometimes, it

could be fried chicken. For example, customers don’t satisfy when our fried

41

A2 MIGroup 7

chicken is inadequately cooked and they require to getting another product.

Recently, they also complain about our Hamburgers because they see that

Hamburger is too small compared with image in menu. Especially, it is egg

Hamburger; it has the greatest number of consumer complaint.

A: Hamburgers are distorted is another complaint about Lotteria Hamburger! it is

unpredicted situation in transferring process!

D: Customers complain about waiting time, I think it is not our fault, because you

know that, the number of customer in the afternoon is extremely terrible. We

might forget or confuse customer orders, which is the main reason for this issue.

B: Yeb, I am stressed too much in peak hours like afternoon and at early night.

- When is the best time for sale?

C: It is surely in the afternoon, because in this time, we carry out a cheap combo.

So we have more number of sales.

D: At early night, clients also usually have a dinner in our restaurant. Sometimes

they are couple, family or friend in this time.

B: In almost holidays and special day of Vietnamese, Lotteria also have the best

sales.

- What do you feel about the customers? (Attitudes, habits, etc.)

B: I think normally that, they have a good attitude and be willing to corporate

with us. But it still has some unpredicted situations. For example, Customers are

overbearing, or they slight us.

C: They think that we just employees, so they might criticize us!

E: For habits, I think that officers tend to order hamburger to delivery in the

afternoon, because they don’t want to leave their office.

Reference

Businessmonitor.com, (2013). Food & Drink Industry Analysis | Food & Drink

42

A2 MIGroup 7

Market Research | Business Monitor. [online] Available at:

http://www.businessmonitor.com/food-drink [Accessed 22 Jun.

2014].

Do, A. (2013). Vietnam has the biggest online population in Southeast Asia

with.... [online] Tech in Asia. Available at:

http://www.techinasia.com/vietnams-biggest-online-

population-southeast-asia-161-million-monthly-users/

[Accessed 16 Jun. 2014].

Fast food Market in Vietnam. (2013). 1st ed. [ebook] Hanoi:

vinasearch. Available at:

http://www.vinaresearch.net/userfiles/file/W&S%20-%20Kh

%E1%BA%A3o%20s%C3%A1t%20th%E1%BB%8B%20tr%C6%B0%E1%BB%9Dng

%20th%E1%BB%A9c%20%C4%83n%20nhanh%20t%E1%BA%A1i%20c%C3%A1c

%20th%C3%A0nh%20ph%E1%BB%91%20l%E1%BB%9Bn%20-%2012_2012%20-

%20Viet.pdf [Accessed 21 Jun. 2014].

Franchisedirect.com (2014) Top 100 Global Franchises - 2014

Rankings [online] Available at:

http://www.franchisedirect.com/top100globalfranchises/rankings

/[Accessed 17 Jun. 2014].

Gi?i, H. (2013). Vietnam fast-food market sees bright future | DTiNews - Dan

Tri International, the news gateway of Vietnam. [online] Dtinews.vn.

Available at: http://dtinews.vn/en/news/018/30491/vietnam-

fast-food-market-sees-bright-future.htm [Accessed 16 Jun.

2014].

Imf.org, (2014). Vietnam and the IMF -- Page 1 of 8. [online] Available

43

A2 MIGroup 7

at: http://www.imf.org/external/country/vnm/ [Accessed 22

Jun. 2014].

ltd, R. (2014). Vietnamese Foodservice: The Future of Foodservice in Vietnam

to 2016. [online] Researchandmarkets.com. Available at:

http://www.researchandmarkets.com/research/3p6g47/vietnames

e [Accessed 17 Jun. 2014].

Nationmaster.com, (2014). Vietnam People Facts & Stats. [online]

Available at:

http://www.nationmaster.com/country-info/profiles/Vietnam/P

eople [Accessed 21 Jun. 2014].

Phunutoday.vn (2014). Kinh hoàng đồ ăn nhanh kém chất lượng

của KFC, Lotteria, McDonal's [online] Available at:

http://phunutoday.vn/xa-hoi/kinh-hoang-do-an-nhanh-kem-chat-

luong-cua-kfc-lotteria-mcdonals-41198.html [Accessed 18 Jun.

2014].

Red brand builders, (2012). Vietnamese youth loving fast food - red brand

builders. [online] Available at:

http://red.vn/blog/vietnamese-youth-loving-fast-food/

[Accessed 17 Jun. 2014].

Review, W. (2014). Vietnam Population 2014 - World Population Review.

[online] Worldpopulationreview.com. Available at:

http://worldpopulationreview.com/countries/vietnam-

population/ [Accessed 16 Jun. 2014].

Richins, M. L. (1994). “Special Possessions and the Expression

of Material Values,” Journal of Consumer Research, 24 (3), pp.

522-33

44

A2 MIGroup 7

Stoxresearch.com, (2014). Vietnam Food Report 2013 | Sector Reports |

M&A Reports | Market Reports | StoxResearch.com. [online] Available

at: http://stoxresearch.com/Reports/142-vietnam-food-

report-2013.aspx#sthash.9JqWn32w.dpuf [Accessed 16 Jun.

2014].

Vietrf.com, (2014). Invest in Vietnam | VIETRF.com. [online]

Available at: http://vietrf.com/about-vietnam/invest-

vietnam [Accessed 17 Jun. 2014].

Vnexpress.net (2012) KFC, Lotteria, Jollibee chiếm lĩnh thị

trường fastfood Việt2012 [online] Available at:

http://kinhdoanh.vnexpress.net/tin-tuc/quoc-te/kfc-

lotteria-jollibee-chiem-linh-thi-truong-fastfood-viet-

2740219.html[Accessed 17 Jun. 2014].