ASSIGNMENT 2

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 2 Marketing Planning and Processes

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Student Name Pham Tran Minh Hieu Student ID GBS210603

Class GBS1004B Assessor name: Nguyen Kim Hao

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PART A: COMPARISON 7Ps of mcdonald and competitors

MCDONALD’s BURGER KING KFC

Targeted There are both men and There are both men and
customer women. women. - There are
- In almost all ages. - In almost all both male and
But mainly: 6-15t, 16- ages. female. - In
35t But mainly: 6-15t, 16- almost all ages.
35t But mostly: 6-17t,
- Occupation:
- Occupation: 17-29t
student, student student, student
staff, office - Occupation:
staff, office
staff, internal staff, internal student, student
family support family support staff, office staff,
internal family
support
Product - Hamburger - chicken
-Hamburgers and versions and - vegan meal
sandwiches. sandwiches.
- Breakfast. - drinks
- Chicken. - snacks
- Fried chicken. - - Vegetarian dish.
Rice - Snacks. - twisted dish
- Dish together. - salad
- Desserts.
- Drinks.
- Drinks.
- Desserts.
Distribution McDonald's expands to
many different locations
so that customers can
easily access their
products. McDonald's
marketing strategy has the
following distribution
channels:
- Restaurant system
- Sales Kiosk
- McDonald's mobile app
Price
The price element in
McDonald's marketing
strategy follows the 4P
model, which
harmoniously combines
two pricing strategies:
Package pricing strategy
and psychological pricing
strategy:
With the goal of
maximizing profit margins
and sales, McDonald's
bundle pricing strategy
offers different food
combos at a more
discounted price than
buying each item
individually.
In its psychological pricing
strategy, McDonald's uses
To get the annual KFC has cleverly
revenue as well as the placed its stores in
cost of opening more densely populated
branches, Burger mainly areas such as urban
relies on franchising. areas, thereby
The franchisee will bringing more profit
receive the entire to them. It uses a
frame, equipment and
push strategy, i.e.
recipe and in return takes advantage of
they have to pay some
promotions like
costs for that. discounts to help
push sales of their
products and
services through
distribution
channels. This
creates a sense of
awareness,
selfcontrol, and it
also looks appealing
to customers
With the goal of KFC has adopted a
replacing McDonalds, geographical pricing
Burger King did not strategy, i.e. prices
hesitate to reduce prices vary from country to
in bulk, accepting the country.
Before setting prices
decline in profits at
for its products,
some branches so that
KFC considers
customers could get
certain demographic
closer to them.
factors such as age,
gender, and
household size.
Although there is no
age limit, KFC's
largest consumer
group consists of
young people
regardless of their
gender or gender
 affordable prices like
VND99,000 instead of
rounding that amount.
Thanks to this extremely
smart pricing strategy,
McDonald's encourages
consumers to buy their
products.
Promotion McDonald's marketing
strategy promotes
communication to attract
customers
Customers buy their
products by advertising
activities on television,
television
radio, print and online
media. The ultimate goal is
still coverage
brand with consumers and
increase profits for the
company
Competitor analysis:
McDonald’s – Burger King – KFC
These are competitors with similar products and target audiences.
After the resounding success Ray Kroc had with McDonald's, many other brands followed.
role.
This is what Burger KFC uses
King does best when it promotional offers
comes to a series of as the main tool to
creative ideas. First, they inform their
launched the Burger customers of various
King Talent Search offers on their
program with the chicken products.
participation of many First, their smiling
loyal customers. Players colonel logo is most
can receive gifts by likely an image that
showing their talents makes customers
through incoming videos associate KFC with
and waiting for prizes. In chicken.
addition, Burger King
also links up with
websites specializing in
tourist attractions to
book semi-automatic
stations with the slogan
"Let's move to the next
place quickly" to remind
customers that they don't
take much time. hours
when using Burger King
products
 McDonald's biggest competitors in this field are KFC and Burger King with annual sales of
$2.49 billion (2019) and $1.78 billion (2019), respectively. Similar to McDonald's, they offer
relatively affordable food, quick service, and a consistent menu wherever they go.

To increase competitiveness, McDonald's constantly updates the menu to retain less loyal
customers. On the other hand, they don't remove any popular items from the menu to retain
loyal customers.

Besides, McDonald's also regularly creates new dishes for a limited time to attract new
customers and create brand awareness.

McDonald's – Starbucks – Dunkin Donuts

These are competitors with different products but similar target audience.

Starbucks and Dunkin Donuts sell different types of products than McDonald's, but meet the
needs of the same customer base as McDonald's.

Brands like Starbucks and Dunkin Donuts can be considered indirect competitors of
McDonald's. However, these two brands are direct competitors of McDonald's in the coffee
category.

In the case of Starbucks, they serve customers who are characterized by a preference for comfort
and a good service experience. Therefore, their customers are willing to pay a high price to get
what they need.

Dunkin Donuts is famous for its donuts. The brand is currently targeting consumers who are
interested in an affordable product. Plus, they don't have the need to pay a high price to be in a
luxury store.

Although McDonald's main business is selling meals at any time of day. However, they have
also penetrated the market of Starbucks and Dunkin Donuts with the McCafé chain.

McCafé is part of McDonald's and sometimes it's an independent business that primarily sells
hot drinks and sweet snacks. McCafé now also offers comfortable venues and affordable menus,
similar to competitors.

- Market analysis
According to the chairman of the Association of Asian Agricultural Economists (ASAE), Mr.
Choe Yangboo, said: "Asian consumers are tending to prefer Western-style food", and fastfood is
also the trend. is one of those. As the pace of life is accelerating along with the increasing
introduction of Western culture and lifestyle, the demand for fast and convenient fast food
culture is higher than ever.
Next to the issue of demand, supply is also an issue that needs to be considered when
assessing McDonald's business opportunities in Vietnam. With products such as fried chicken,
hamburger, beef, snack or salad, an agricultural country like Vietnam can completely become an
abundant source.
Consider factors of economic, legal, and demographic environments. These can also be
considered as favorable factors for the development of fast food, especially since Vietnam joined
the WTO. First of all, in terms of economy, in recent years, GDP growth rate has always been
quite high and stable at over 6%, along with a series of economic development policies,
monetary policies, economic policies. encourage investment to help the economy continuously
develop, boost spending and create opportunities for the development of the food industry,
including fast food. In addition, a series of laws on food hygiene and safety, on franchising...
were introduced to facilitate and help businesses have a clearer view when approaching the fast
food market.
In addition, the large population, most of which is young, with the ability to quickly adapt is
also an advantage to increase the demand for fast food.

Define the market

McDonald's fast food restaurant identifies its target customers as people aged 16 - 29 years old.
They are young teenagers who like a modern, fast and "Western" lifestyle. Moreover, people at this
age often tend to find ways to express their "Western" nature through fashion, words and especially
food. Finally, this group of customers are those with a certain income from middle to high, so they
also easily choose McDonald's as a place to eat.
In particular, children aged 5-14 years old are curious, like novelties and especially they want to eat
greasy Western-style dishes. Therefore, it is inevitable that parents will buy fast food after school or
weekends.
Main segments
Segment Demographics Mentality Behavior
Children Age: 5-14 All Because McDonald's fast food Usually, children will
genders restaurant thinks that children ask their parents to buy
are the age with curious them for them when:
characteristics, like novelty and • after school
especially they want to eat fast • Holidays
food. • Weekends
Teenagers Age: 15-29 Busy People at this age often
All genders Have a They are young teenagers who tend to find ways to
lowmedium-high like a modern, fast and express their "Western"
income or income "Western" lifestyle. nature through fashion,
Students, students, words and especially
employees who food.
have just gone to
work
 Adults Age: 30-44 Customers in this segment Buy to eat quickly, no need
All genders are usually working, so to prepare in advance
Have income they don't have much time Parents take their children
Convenient to eat
Parents take their children
to eat

- Assessment of competition
1. Scale
The Vietnamese fastfood market is likened to a "sleeping beauty" with the advantage of being
a densely populated country with a young population. According to the latest statistics, our
country's population is currently ranked 15th in the world, more than 98.51 million, of which
51.5% is the young population under the age of 35. Therefore, it can be said that Vietnam is a
market. quite attractive to fast food business groups
2. Demand
Fast food is still a relatively new form in Vietnam, and Vietnamese people also have a rather
difficult look and taste compared to customers in many other countries. Most Vietnamese
customers still prefer to buy and finish their meals at restaurants. Besides, as a custom, people
still prefer ethnic dishes, dishes like pho easily "eat off" the invitation of Cheese Burger Combo.
If to choose a culinary space for the whole family, most Vietnamese still choose restaurants with
all kinds of food, but rarely choose fast and simple restaurants.
However, nowadays, in big cities in Vietnam, people are also starting to "get addicted to fast
food" because the food supply network of this type is quite developed. Vietnamese youth - the
main customer group targeted by the fastfood network, are increasingly attracted, accounting for
more than 80% of the total number of customers. Another point worth noting is that Vietnamese
people especially like fried foods, and are easily a bridge to dishes such as french fries, fried
chicken...
3. Consumption ability
According to the General Statistics Office, the average income per capita a month in Vietnam
in 2021 is VND 4,205,000, however, there is a big difference between regions. Among the
total population, urban population 36 .57 million people, accounting for 37.1%; rural
population 61.94 million people, accounting for 62.9% There is a rather surprising reason,
which, according to the manager of fast food stores, makes the fast food market in Vietnam
grow slower than other Asian countries. On the other hand, motorbike traffic is not
convenient and does not create opportunities for consumers to drive and eat fast food at the
same time. 4. Potential
With the majority of the population under the age of 25, Vietnam is also an attractive market
for the catering and entertainment business. This younger generation will more and more
readily accept foreign tastes and products.
Although the number is quite modest, only a small part of the population has the habit of
using fast food, and the habit is not something that can be changed overnight, but with the
rapid development of the economy and Consumer demand is increasing in modern life,
Vietnam fastfood market is really a fertile land for investors.
 identify the main competitors
Currently, if it wants to penetrate into Vietnam, McDonald's will have to face at least 3
formidable names: KFC and Lotteria.
KFC: KFC (Kentucky Fried Chicken) is the brand name of the second most famous fast food
chain in the world after McDonald's. KFC mainly deals in fast food made from chicken and the
most famous dish is Fried Chicken KFC started to set foot in Vietnam in 1997. Currently, KFC
has 153 stores in 36 provinces and cities across the country.
Lotteria: Lotteria is a world famous fast food brand originating from Japan. In Vietnam,
Lotteria is currently one of the fast food brands that are close to Vietnamese consumers with
more than 255 fast food chain stores across Vietnam and concentrated in big cities.
In addition to the three brands mentioned above, the massive invasion of foreign fast food
brands into Vietnam must include many other names such as Jollibee (Philippines) or as in 2009,
PizzaHut, a giant in the field. This area has officially entered Vietnam. It can be said that with
such developments, the competition in the Vietnamese fastfood market is becoming very fierce.
market position assessment
Positioning refers to choosing the most appropriate marketing mix for the target customer
segment. McDonald's uses adaptive product positioning, and accordingly, the company engages
in the periodic repositioning of its products and services according to changes in the segment.
Brand Positioning McDonald's Brand Positioning: How's It Happening? If a brand wants to
succeed overnight, trying to position itself in the market can be a safe move. McDonald's is one
of the successful brands that has secured its place in the minds of consumers. PRODUCT
POSITIONING LOCATION McDonald's positions itself as an affordable and friendly family
restaurant, committed to the values of quality, fun and excitement. It is also positioned as a
restaurant that makes customers feel special and makes them smile. So it has a clear position as
a family restaurant that customers come to for a quick bite.
- Analyze the external environment.

SWOT.
1. Strength
• Most Valuable Brand – This is the brand's main strength
McDonald's is the 10th most valuable brand in the world. Having incredible brand value, the
company has strong competition and dominates the restaurant industry. McDonalds is a popular
outlet and is available in many places. Possessing excellent service and products, this is truly the
most valuable brand in the fast food industry.
• International network
Having an international presence is one of the strengths of the brand. The company has a wide
presence in about 119 countries, and it has both store types as a maintained company and
licensed stores in its international network. Up to now, the total number of restaurants in the
McDonalds system has reached 38,695. Based on the number of restaurant stores, the brand is
the second largest store of food brands in the world after Subway.

•Good food
This is another strength of McDonalds. The food of this fast food brand is enjoyed by everyone
and is very tasty. McDonalds is known for the best fries in the food industry. In addition,
broken rice dishes commonly found on the streets of Vietnam also appear abundantly on
McDonald's menu. Most recently, the company launched a cultural fusion when it launched a
new dish, the Pho Burger.
•Brand identity
Its brand and logo are easily recognizable in all markets. Customers can easily find McDonalds
restaurants at key locations by looking at the company's logo. In addition, there are many things
that set McDonalds apart from other existing fast food companies. The brand has run many
successful campaigns and advertisements to increase brand awareness and attract more customers
to their brand.
McDonalds promotional campaigns also promote differentiated products. The brand also spends
a lot of money on its advertising. To increase brand awareness, McDonalds uses a variety of
digital channels including paid promotions and social media to increase awareness of its brand.
McDonalds physical stores play an important role in their brand awareness. The main marketing
means for brand recognition are through word of mouth and publicity in the media

• Innovation and technology acquisition

McDonalds is always changing and absorbing innovation from technology to enhance the
consumer experience. The company has used kiosks, mobile ordering systems, and convenient
payment systems, bringing many benefits to users.
The brand has been at the forefront of technology with a variety of acquisitions that enhance
customization and personalized marketing.
2. Weaknesses
• Highly dependent on Western markets
As a leading fast food brand, McDonalds is heavily reliant on Western markets. The top markets
that McDonald's focuses on are the UK, US, France, and Canada, and account for a large portion
of its revenue. Of these, the US alone accounted for about 35% of the brand's sales in 2018. In
Vietnam, the fast food market develops more slowly than in other Asian countries, due to the fact
that motorbike traffic is not convenient and does not create opportunities for consumers to drive
and eat fast food at the same time. . Besides, as a custom, people still prefer ethnic dishes,
dishes like pho easily "eat off" the invitation of Cheese Burger Combo. If to choose a dining
space for the whole family, most Vietnamese still choose restaurants with all kinds of food, but
rarely choose fast and simple restaurants.
3. Opportunities
• Digital Marketing

Digital marketing in the new technology era has helped many leading brands worldwide to
increase market share and revenue. McDonald's also increases its competitive advantage by
integrating with the digitalization process. The brand has been making effective use of leading
digital channels for marketing purposes.
In addition to social media platforms, McDonalds also uses other digital marketing channels
including corporate websites and blogs to market and engage customers. Digital marketing can
bring brands closer to more people. McDonald's uses digital technology for employee
engagement, customer engagement, supply chain management, and franchise management.

• Innovation in the menu

There are more and more demands from customers and markets. Today's generation is gradually
becoming more health conscious. They prefer healthy foods and low-calorie diets.
Therefore, in order to increase the number of health-conscious and diet-appropriate customers,
McDonald's should offer a menu that best suits the current generation to increase customer base
and retain existing customers, such as publicizing the amount of calories in a dish. Besides,
creating new dishes suitable to the geographical location and eating habits of Vietnamese people
in each region.

• Rebuild visual effects

The concept of many people is that fast food is junk food. A lot of brands are struggling to
overcome that image. And McDonald's should find a way to get rid of this "label", quickly build
brand value.

4. Threat
• Competitors

The fast food industry is growing at a rapid pace and there are many companies that are strong
competitors of McDonald's. Some big competitors are Burger King, KFC, Lotteria, etc. There
are many local brands that are also growing at a fast rate.
In order for McDonald's to remain at the top, McDonald's should increase its marketing
investment and change the variety in its menu all the time. This will bring in more customers
and most of them will stick with them. As the competition increases, the company should focus
more on being more customer-centric and invest in more product and market research.

• Threat culture

As a fast food chain, McDonalds sees a threat in many parts of the world that could damage its
brand image. This becomes a big challenge for the brand as it operates in different franchises
and the flavors have to suit people according to different local cultures.

5. Objective
Create a more bustling atmosphere and blend in with it. The company's drink truck will be the
focus of everyone's attention when running around. The company's goal has always been to
reach as many customers as possible. With its current popularity, going around sales will be
what makes people interested and buy from the company, especially young people who tend to
go out on holidays. The cost of food and drinks is cheap and accessible. This is considered a
special event of the company, when McDonald's first sold its goods in this way. Event time: 3
days, from September 9 to September 11. Taking place in District 1.
Start time: 18h-23h
People often love and are attracted to things that sound or are different. So when selling for the
first time by running around central places like Q1 will cause more positive effects as the
company continuously creates innovation and becomes special and becomes attractive, and this
This is where the holidays are the most crowded. For example, at times like the MidAutumn
Festival, at this time, young people often go out to play or gather, creating more bustle will
make people feel happy, seeing this way of selling on the street, here It's time to create
customers to buy your products these days.
From there, not only increase revenue but also create more good impressions of customers for
the company. McDonald's marketing is always focused on special, along with this marketing
goal will create more new customers in the future as well as create a good impression for
customers. The company always focuses on creating experience and innovation to retain old
customers and create new customers, so this is an opportunity for McDonald's to create more
positive effects on its brand.

•Marketing stragy
Target customers: - McDonald's fast food restaurant defines its target as people aged 16 - 29
years old. Because that is the age of young teenagers who like a modern, fast and very
"Western" lifestyle. Moreover, people at this age often tend to find ways to express their
"Western" nature through fashion, words and especially food. Finally, this group of customers
are people with a certain income from middle to high, so they also easily choose McDonald's as a
place to eat. In addition, through this customer group, MC Donald's "bus" strategy will become
more widespread.

McDonald's has positioned itself as a family-friendly, low-cost fast food restaurant.

Many McDonald's restaurants have two drive-thru systems to reduce wait times and to increase
customer service. What sets McDonald's apart from its competitors is in the way it markets to
the home market.

Differantion
7Ps

In the differentiation strategy, MCDonald's fast food chains need to be more selective in their
product offering and more creative in their promotion strategy. McDonald's offers a
regionspecific version of the menu. This leads to product differentiation from other competitors'
products. Mc grill sandwich in USA and Canada. Mc Chicken Premiere & Chicks. Zesty in the
UK, France, Italy and Belgium. Adjusting products in India- Vegetarian options, No beef or
pork, McMasala - Diverse menu of Indian menu items; In Vietnam rice and pho are Vietnamese
favorites, so Mc Donald's newly launched Rice and Pho Burger menu is available to serve at the
Vietnam branch.

+ Product: McDonald's will sell by car model, so our products will be limited to dishes such
as…. Big Mac Burger chicken, beef, fish, McCafe and Soft drinks, MCdonald's burger combos,
plus additional drinks such as soft drinks and coffee

+ Prices: In terms of pricing and spending plans, the shared potential of each McDonald's store
is to provide a competitive, value-driven fulfillment application to buyers.. McDonald's has
decided to bundle at least two products or services that have related and charge a single price for
them. Customers will buy more items at a lower price using this pricing strategy than buying
individual products. Example In Vietnam, customers can choose their favorite snacks and drinks
with prices ranging from VND 130,000 to VND 280,000. It will be less money if customers buy
each item individually. In addition, MC Donald also attracts a lot of customers with a
psychological pricing strategy using the "9" effect. On the McDonald's bus, a combo will be
served for 69k. Customers are motivated with this McDonald's strategy and it makes customers
think that the price will be lower.

+ Place: The bus will move around in District 1, Ho Chi Minh City. At the end of the day, the
bus will stop at Nguyen Hue Pedestrian Street.

+ Promotion:

Free social media can play an important role. For example, people can know about the price
while sitting at home, Facebook, web, instagram and special magazines can help to promote
McDonald's services which will help customers to advertise about the McDonald's. McDonald's
bus through Posts about this project. In addition, McDoanal also uses these means to spread the
event to McDonald's customers.

+ Process:
Food preparation at McDonald's is completely transparent, meaning the entire process is visible
to the customer

Human: we will need 8 people

*The oder department is 2-person
*2-3 person processing department
* The remaining 3 people will rotate shifts

+ Physical evidence: McDonald's will sell by the take-a-way method in the morning and noon
and afternoon. In the evening, the bus will stop at Nguyen Hue Pedestrian Street and next to the
McDonald's bus will have a few low tables and chairs for customers to eat on the spot.
• Action plan

• Control and Monitoring

Control: Every company needs to have some person responsible for overseeing the
implementation process to ensure that it will proceed according to the original plan if it is to be
successful. By following the guidelines, MacDonald can ensure that the chosen strategies are
successfully implemented.
 The first step is to identify the parameters that will be used to measure the company's
performance The next step is to define the target values for the parameters to be used. The third
step requires taking the measurements that were used in the previous stages.
Last but not least, it is important to compare actual results with predicted or planned results to
identify successful strategies and eliminate ineffective ones. Supervisors should take appropriate
precautions to ensure that the company is maintaining effective strategies within the company.

Outline the control and measurement methods that will be used to measure the performance of
your marketing.
The important marketing performance metrics that businesses need to pay attention to to develop
effective business are as follows:

First, CAC - Customer Acquisition Cost is the cost a business needs to spend to acquire a new
customer. This is also an important metric to measure the effectiveness of the marketing process.
Marketing and Sales Expenses = Marketing Costs + Labor Costs + Commissions + Bonuses +
Incidents
Second, A%-CAC (Agency % of customer acquisition cost) is the percentage of new customers
coming from the business's resellers. This number is calculated as a percentage from the total
CAC.
A%-CAC = Marketing expenses allocated to agents/Total sales and marketing expenses
Third, metrics in e-commerce (LTV: CAC): LTV - Lifetime value is a basic revenue
measurement tool, assessing the value of each application as well as of each user over the life of
the product. that application, which can be measured in currency or time, social sharing or
article.
The formula is as follows: ROI = LTV: CAC
Every business is interested in profit, but more importantly, Return on Investment (ROI) or
return on investment. The higher the ROI, the better your client's sales and marketing team will
achieve. Spending more on sales and marketing will reduce your LTV:CAC ratio, but can help
accelerate your company's growth.

Fourth, the CAC payback period is the time it takes for your customer to complete the payment
for a product/service before they become a new customer.
Calculation: Take the CAC and divide by the customer profit adjusted revenue each month for
one customer.
Formula:
Discount-adjusted revenue = Average customer pay per month
Payback Period CAC = Margin-CAC Adjusted Revenue.
Fifth, the percentage of natural customers who are customers who bring revenue to businesses
by offline methods, at agents distributing products and services, etc.
Calculation: Choose a specified period, take all new customers, divide by the number of
customers obtained from the marketing program.
Sixth, the customer acquisition rate from marketing includes all new customers that the
marketing team has interacted with and turned customers into Leads, or at any point in the sales
process. Calculation: Take all new customers accumulated by customers in a certain period and
find out what percentage of them have any interaction with your marketing programs to become
Leads . Formula: Total number of new customers interacting with marketing Total number of
new customers = Marketing affects customers %.