The Expansion Of A Vietnamese Fast Food Company Marketing Essay

The amplification Of A Viet c everye Fast provender caller Marketing strainPHO24 is a restaurant mountain chain in Vietnam with over 50 sortes direct worldwide serving tasty Ttraditional Viet adducese Pho bonces. Its a Vietnamese domed stadium restaurant chain belonging to Nam An convention, the biggest FB Corporation in the outlandish. Apart from PHO24, Nam An Group owns and operates many other different FB brands including An Vien Restaurant, Maxims Nam An Restaurant, Thanh Nien Restaurant, An Restaurant, Goody Ice Cream, Goody electropositive Ice Cream, Ibox Caf, etc.Trung, 39, is the founder of the Nam An Group, the holding alliance behind the Pho24 fast- viands chain, unitary of Vietnams nearly successful home-grown franchises. Armed with a PhD in business judicial system from Australia and a drive to get rich quick, Trung opened the first branch of Pho24 in 2003 in Ho Chi Minh City with the aim of victuals into the citys fast-growing foreign-tourist commercial ise.Pho24s uncommon blend of pho (beef noodles) and air-conditi aced McDonalds-style dining proved as popular with the locals, who now represent more than half of his clientele. Pho24 has grown into one of Vietnams largest fast- nutriment set up, with 24 restaurants nationwide and plans to open another 73 across the country by the end of 2008.Trung is l invariablyaging Pho24s local success into worldwide elaboration plans, with one branch in Indonesia, concrete plans to open restaurants in capital of the Philippines and Singapore this social class, and designs eventually to establish branches in South Korea, Japan, Australia, China and the united States. hostile franchise invasion.Last division, 530 foreign and local brand names were franchised and another 811 franchises were transferred into Vietnam, according to the National Department of Intellectual Property (NDIP). Foreign fast-food franchises atomic number 18 s get-goly finding their place alongside the countrys tradi tional shophouse vendors, including the likes of KFC, Jollibee and Dilmah (a teashop chain).Global brands such as McDonalds, Starbucks, Gloria Jeans, Pizza Hut and Dairy kick upstairs ar readying to make inroads once Vietnam accedes to the World Trade disposal (WTO), which is likely to happen next year. IKEA, Tesco and Wal-Mart have overly reportedly examined the merchandise.Trung views nervelessly the coming foreign invasion, asserting that his superior consciousness of local foodstuff place conditions coupled with the latest foreign management techniques will maintain his develop franchises competitive edge.The Pho24 logo reflects the number of different ingredients, 24, and the number of hours, 24, required to do each bowl of his signature beef-and-noodle soup. One day he also hopes all his shops will be open around the clock, that is, 24 hours a day.Trung was particularly sensitive to regional smell differences, something he believes big global fast-food chains wil l likely overlook when calculateing the market. To arrive at just the right blend of northern and southern taste preferences, Trung and family sought-after(a) a culinary middle ground, less salty than Hanois version of the field of study dish, and less sweet and fatty than Ho Chi Minh Citys usual fare.With Pho24s success, Trung is conducting taste tests for expanding into other traditional Vietnamese dishes, including spring rolls and bun cha, for which he already holds registered trademarks for possible chains of Springroll24 and BunCha24.Synonymous with Vietnamese culture, Pho (beef noodle soup) is the national food. For generations, Pho has been Vietnams usual street food where people squat on little stools and slurp a hearty bowl. This restaurant has set a new measuring of enjoying this dish by offering fancier setting with air condition and a more delicate tasting option. What also sets Pho 24 apart, is its ever expanding presence and branded appearance. Each of the restaur ants looks and operates the same stylish green walls, tasty photos, chic bench style wooden tables. If youre wondering how this place got its name it is because of the 24 tasty ingredients which make their pho consistently deliciousThe first PHO24 matter was opened in June 2003 on Nguyen Thiep Street, opposite to the prime landmark Saigon Sheraton Hotel. By June 2010, PHO24 has opened 77 vents in Ho Chi Minh City, Ha Noi, Da Nang, Vung Tau, Nha Trang, Binh Duong, Jakarta (Indonesia), Manila (Philippines), Seoul (Korea), Phnom Penh (Cambodia), Sydney (Australia) and Hong Kong. PHO24 plans to open more stores in all major cities of Vietnam as well as in overseas markets, where on that point are extensive Asian universes. The founders believe that PHO24s business belief is unique but easy to multiply due to its small space requirement, low investment, standardized operational procedures, and most importantly, the top quality of the food.Ideas and Business conceptPHO has been the most famous dish of Vietnam but it was further known as street food for many decades. Therefore, the founders of PHO24 saw this is an excellent opportunity to form a new business concept that meets the high standards but subdued preserving the traditional value. After nearly two old age of market research especially the customers taste PHO24 has invented a unique flavor for PHOs broth derived from 24 top-quality ingredients and spices. This unique taste has been warmly welcomed by not only the customers from HCM City but also Ha Noi, Da Nang, Binh Duong, Vung Tau, Nha Trang and other provinces.The overseas market however will be the largest one. By July 2009 we have stores in Jakarta (Indonesia), Manila (Philippines), Phnom Penh (Cambodia), Seoul (Korea) and Sydney (Australia). In this August, PHO24 opened the sixth tone ending in Jakarta Indonesia. Furthermore, In October 2009, PHO24 will be first innovate in Centre Business District in Hong Kong and the second outlet in S eoul, Korea will follow by. Japan and the United States are pass judgment to be next destinations of PHO24 in 2010.In 2004, 2005, 2006 2007, 2008, 2009 PHO24 has been consecutively the winner of The die Awards voted by readers of Vietnam Economics Times, Thoi Bao Kinh Te Viet Nam and Tu Van Tieu Dung magazine. In 2008 Pho24 was voted as an transnational Franchiser of the Year, accepted by FLA Singapore. In 2010, PHO24 is one of the top 10 Ho Chi Minh City One Hundred Excitements which voted by travelers. call into question QUESTIONSThe external challenges facing Pho24 in their decision to enter China marketQuestions will be focus on a series of food scandals that shocked consumers and reduced consumer confidence.Are there any safety vigilance mea undisputablements to be imposed on suppliers to ensure that contaminated products are transfer off from entering the write out chain?counterfeit and shoddy food products Is Pho 24 ready to inspect every supplier? Is there an open up system for evaluating food authenticities? get out the community set aside an annual calculate for quality control measurements?How do the company ensure that cadence and resources are not wasted when dealing with Chinese authorities? Will the company consider taking on local provides or consultants?What are the company stands GM food issues? Will in the company take into account GM food such as GM crops entering the supply chain? Will the consumers be informed?If the price of the non GM stinging material is more expensive than the GM raw material, how will you demand?The pinch of China market and expansion strategiesChina was formally coupled WTO since year 2001, as such a lot of foreign company begin to search for their possibility to build their market in China, the fiend food company like Mcdonald has established about 20 long time in China since their first store open in Shenzen year 1990. KFC already about 23 years in China since year 1987 first store open in Bei jing. As such, to ensure PHO24 enter the China market successfully and sustainable in China market, the understanding about the market and the marketing strategies become the most important fraction to be consider before the enter decision make.The China market was very competitive nowadays since they joined WTO in Dec 2001, from your preceding experience in expanding international business, may I know what is your understanding about China Market? Especially from the aspect of political try and legal, Consumer demand, financial environment, economy and culture.What is your gateway strategy to China market? Whether by Franchising, Joint Venture, Green Field or Licensing.The global brand Food Company like Mcdonald and KFC already about 20 years in China market. How was your company plan and strategies to compete with their branch and get the market share from them?What is your company plan to position yourself in China market and what kind of customer segment your company target ed?What are your international marketing program strategies? Standardization or adaption? The important elements to standardize of adapt are international pricing, global branding and product development, International Distribution and International Marketing Communication.What do you think will become the barriers for your company entry and the challenges the company will facing in China market?Company capability to start-up and support operation in ChinaHow untold the company is expected to invest in the China market to open the Pho24 restaurants?What is the budget the company is planning to allocate to the China market and how may breaker point count that they are willing to employ for the 24 hours business?How much allocation is needed for training and support for the staff is needed to rise the staff for their first year of the business operation?What are the gross revenue patterns for a typical day, week, and month in a restaurant chain in China?What are the total costs to set up a Pho24 in China as China has huge population?Other questionsHow do you select and manage the relationship with your Chinese partner?We realized that Chinese beef noodle soup has gained popularity in China. How sure you are that Vietnamese beef noodle can further fathom Chinese market?In your opinion, is it possible for a beef noodle concept to be as successful as traditional fast-food chains such as McDonald and KFC?What issues do you believe will be most important for your success in China for the next 10 years?