2014
Group 7:
NGUYEN THI MAI ANH
NGUYEN THI MINH CHAU
LE THI YEN NHI
NGUYEN CAO TOAN
A2 MarketingIntelligence
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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
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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
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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).
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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
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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.
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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.
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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
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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
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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:
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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.
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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
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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.
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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
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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
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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,
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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
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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.
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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.
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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:
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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)
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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:
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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
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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
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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)
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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
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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
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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
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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,
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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
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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
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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
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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
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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
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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
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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.
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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.
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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.
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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:
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- 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.
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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
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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.
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