Contents

A. B. I. Introduction ......................................................................................................... 2 Main findings ....................................................................................................... 3 The basic concept of marketing .................................................................... 3 1. Compare alternative definitions of marketing and explain the

importance of being a contemporary marketer for 1901 Hot Dogs ...................... 3 2. Identify the main characteristic of a market orientated organization for

todays modern businesses applicable to 1901 Hot Dogs. .................................. 8 3. 4. II. 1. Identify the elements of marketing concept.............................................. 11 Identify and assess the benefits and costs of a marketing approach ....... 13

The content ....................................................................................................... 16 Identify and explain the macro and micro environmental factors which

influence marketing decisions affecting 1901 Hot Dog in Vietnam. ............... 16 1.1 1.2 2. 2.1 2.2 3. Micro factors ............................................................................................ 16 Macro Factors .......................................................................................... 17 Segmentation ............................................................................................ 20 Business to business Segmentation ........................................................ 20 Business to customer Segmentation........................................................ 22 Factors which influence the choice of targeting strategy for 1901 Hot

Dogs..................................................................................................................... 23 3.1 3.2 4. C. Internal factors ......................................................................................... 24 External factors ........................................................................................ 26 Buyer behavior ............................................................................................ 28 Conclusion ........................................................................................................ 31

Reference................................................................................................................. 32

A.

Introduction

It was at the height of the Asian Financial Crisis. The country was reeling from the impact. Belts were tightened and many businessmen took conservative routes to ride the crisis over. In the midst of this turmoil, two young entrepreneurs, Tengku Rozidar and Ahmad Zakir, set up the first ever hot dog store in Sunway Pyramid, Malaysia. The rest, as they say, is history. From the first pushcart, 1901 now has grown by leaps and bounds with over 70 outlets by 2007.

In the first part, this report will provide some basic concepts about marketing, including definition, characteristics of market organization, marketing concept as well as the costs and benefits that this concept brings to a company which application to real case study of 1901 Hot Dogs. Moving to next part, the marketing process of 1901 Hot Dogs will be explored deeply in term of business environment influenced factors, segmentation, targeting strategy and buyer behavior affects marketing activities.

B.
I.

Main findings

The basic concept of marketing

1. Compare alternative definitions of marketing and explain the importance of being a contemporary marketer for 1901 Hot Dogs 1.1 Compare Alternative Definition of Marketing In daily life, people often hear the word Marketing repeated a lot of times and find that it is quite familiar. However, how many of them actually understand what marketing definitely is. In fact, every researcher has their own definition to the terminology Marketing, based on what they consider what marketing is actually about.

Customer needs Identifying Marketing Anticipating Supplying Mutual beneficial exchange Firms objectives

Figure 1. Arriving at a definition of a marketing

Firms objective

According to Philip Kotler, Marketing is defined as a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with each other. In this definition, Kotler focus on creating and exchanging process in order to basically meet with human needs (the state of felt deprivation) and wants (the form taken by human needs as they are shaped by culture and individual personality). Furthermore, these processes are based mostly on social and managerial grounds in which people only charge what they feel value and satisfy their requirements.

In another way, Chartered Institute of Marketing Marketing is the management process which identifies, anticipates and supplies customer requirements efficiently and profitably. In contrast with Kotlers definition, CIMs definition defined Marketing as a term to describe a broad scope, diverse from initial trying to identify what the customers needs are as well as discover how to meet with these needs in short - term. Moreover, in this case, the definition emphasizes mostly on the important of customers that satisfying customers needs as an essential duty of company in long term business. In other word, the product or service of the company is not only have to help customer achieve what they wants but also benefits or added value. On the other hand, the American Marketing Association considers Marketing in more complex and comprehensive way rather than Mr. Kotler and CIMs definition. In their dictionary, Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individuals and organisation. In this definition, the involvement of ranged stages involve in marketing process in order to bring benefits not only for customers like in CIMs definition, but also the companies as sellers. Therefore, the definition focuses deeply on the relationships between the buyers and the sellers in term of win win relationship, in which both sides gain added value from exchanging. In my perspective, marketing is a management process which includes a number of strategies and tactics in order to create benefits for both customers and companies, based on the strong relationship that is built between them. In other word, through marketing, companies brings added value to satisfy customers demands, and capture value from them in return. 1.1. Importance of being a contemporary marketer

According to Business Dictionary, marketer is defined as a person whose duties include the identification of the goods and services desired by a set of consumers, as well as the marketing of those goods and services on behalf of a company. In fact, the market is a highly scrutinized environment which always experiences a lot of changes day by day, due to the incessant change in customers demand. Therefore, a modern marketer has to cultivate his necessary skills in order not only to adapt with these changes but also 4

fulfill his work effectively. In this case, a normal question of Where are these importance skills? is raised. Basically, a modern marketer have to understand clearly about business core skills such as solving problems or working with other people in general and marketing concepts, application as well as its impacts in specific. Furthermore, modern marketer also has to have basic technology savvy and always update information. In fact, the biggest differences between traditional and contemporary marketers are on marketings philosophy that they follow. In the traditional perspective, marketing only focus on companys benefits instead of customers as well as their satisfaction. It leads to the fact that some people mistakenly understand that marketing only has advertising and selling which focus on selling product as much as possible in order to achieve great profit. On the other hand, contemporary marketers always try to identify customers need and wants; and how to satisfy their demand as well as bring those benefits. As a result, a durable relationship between customer and company is built and maintained based own satisfactory of both sides and belief in each other. Moreover, when customers felt satisfy, they will come bake to goods and service of company. It not only help the company has loyal customers but also a stable earnings that it can maintain the market share in long term. Furthermore, in recent years, marketing has experienced an evolution, in which marketing is moving away from mass marketing toward one to one and one to many communication principles. Obviously, contemporary marketers are marketers who catch, understand and use these modern marketing kinds such as viral marketing, networked marketing, search marketing and direct marketing in most effective ways. Therefore, they can take absolutely all advantages of new technology to minimize the cost, but still brings convenience to the customers. As a result, the question Who are the winners and losers in modern marketing? has found its answer. The contemporary marketers with their own advantages will take over traditional marketers. As a result, being contemporary marketers appears vital not only to people who are working in marketing but also for the company in the modern day.

Applying to Vietnam scenario, being contemporary marketer is become more and more important especially when Vietnamese economy develops incessantly in dynamic way. In 1986, Vietnam Government decided to perform Doi Moi policy in which Vietnams economy change from subsidization to market. Before this time, there is no such position to marketer due to the fact that government controls all trading activities. After that, along with the growing of market economy, working as a marketer is become more and more popular. Actually, in long period of time, marketing appeared as a hot job and attract a lot of attention. However, until the theories of modern marketing was applied and work effectively, marketers is become more complex job that require a lot of skills as well as perfect practical and keen mind. Moreover, the rain storm development in technology in Vietnam recent year also brings customer more chances to explore information as well as choose suitable products for their demand, make them become erudite customers. Therefore, marketing become not a high - salary but also fierce competition job which require marketer have a wit and creative mind. In order to satisfy the customer demands and making benefits for both sides, all things the marketer should follow are contemporary marketing theories. For 1901 Hot Dogs, like other companies, the key for 1901 Hot Dogs to live in Vietnam is how to satisfy needs of clients. So, marketing is a very importance part of marking profit. Things that the contemporary marketers of 1901 Hot Dogs have to complete are to solve the matter of: product, price, place and promotion. In my view, there are three interests that 1901 Hot Dogs can get when the contemporary marketers expand market into Vietnam. These are: recognizing suitable products, raising revenue by saling products and affirming brand. At first, recognizing suitable products is important. By analyzing market, a contemporary can gather information from customers such as: their taste, their favorite foods, etc. From this, they can make menus and combos that are fitting for Vietnamese. Hence, these products of 1901 Hot Dogs can be popular with Vietnamese more than other products of other companies. One strong point of 1901 Hot Dogs is Vietnamese like fry or stir-fry food. So Hot Dogs are totally fitting with Vietnameses taste. 6

Secondly, raising revenue by saling products depend strongly on pricing. This thing is very important because it is the key that decide the success of 1901 Hot Dogs in Vietnam. Vietnam is still a developing country, so giving an affordable price either is a way to raise revenue or help 1901 Hot Dogs to approach more customers. It also is the mission of a contemporary marketer. Besides that, products of 1901 Hot Dogs can be more popular if they apply some kinds of advertising through TV, magazines, newspapers, or radio.

The final importance of contemporary marketers is that it helps 1901 Hot Dogs to affirm its brand. It is the vital problem if 1901 Hot Dogs want to survive long-term in Vietnam. It can be fulfill if Hot Dogs continuously concentrate on upgrade its products and improve service behaviors of staff. These things will increase the number of loyal customers and equal benefit of company and customers. Also through expanding market into Vietnam, 1901 Hot Dogs can have the chance to identify and understanding many things about competition such as ways to attach buyers, what are the strong points and weak points of 1901 Hot Dogs and which way to overcome these disadvantages, etc. Furthermore, 1901 Hot Dogs can have ability to compete other famous brand such as: KFC, Lotteria, and McDonald.

2. Identify the main characteristic of a market orientated organization for todays modern businesses applicable to 1901 Hot Dogs.

Customer - centered

No Product Orientation Competitor Orientation

Yes Customer Orientation

No

Competitor - centered
Yes

Market Orientation

There are four main characteristic of a marketing orientation: ( As shown in the table above) Product Orientation describe a company which make what it thinks the customer will buy Customer Orientation according to Professors Peter Loos of Chemnitz University of Technology is a central theme in literature. Nevertheless it gives the impression that comprehensive and individual customers needs are not covered. Normally the customer receives individual products and services which are not integrated. At this point we ask specifically how these customer needs can be handled. We answer the question by focusing the possibilities of internet based markets and internet-driven virtual value chains. First of all we define parameters to measure the customer orientation from the perspective of the customer. Existing parameters discussed in the literature only focus the perspective of the seller. In a second step we transfer the parameters in a matrix which helps us to classify the customer orientation. Based on this matrix we discuss suitable production concepts to supply the range of customer-oriented products and services. As a result we note that the traditional crafted customization can not produce self allocatable individual and complex 8

outputs, i.e. an integrated bundle of customized products and/or services to satisfy a comprehensive and individual need. We present an internet business model to create an adequate solution. This business model uses the internet technology to realize value chain and supply chain activities between different actors and an intermediary who coordinates the network. Market Orientation are defined as a company philosophy focused on discovering and meeting the needs and desires of its customers through its product mix. Unlike past marketing strategies that concentrated on establishing selling points for existing products, market orientation works in reverse, attempting to tailor products to meet the demands of customers. In essence, market orientation can be thought of as a coordinated marketing campaign between a company and its customer Normally, businesses have different operation orientation, based on where they place consumer in the marketing process for companies who follow marketing orientation, satisfying customers needs and wants while still making profit appears as the central working philosophy. In contrast with production orientation, marketing orientation focuses on the needs of the buyers instead of sellers. However, everything has two sides, and market orienting is not a special exception with its own advantages and disadvantages. On one hand, the product is produced and provided due to customer needs and want. As a result, company should focus on determining how to satisfy their customer by exploring customers behavior and consumption trends and produce goods suitable with their demand. It is expressed on R & D projects of the companies. Secondly, collecting information from customer before and after using products help company understand partly their customer as well as using trend, which enables them to communicate effectively with the customer. On the other hand, the customer provide company their valuable feedbacks on products and services, which helps the company improve quality, design, etc of in order to satisfy customers in highest level. Finally, the high satisfaction from the customer also builds a strong relationships between

customers and company in a long term, hence, the company has chance to maintain a stable earnings every year and keep their market share. On the other hand, On the other hand, company also has to face to some disadvantages when they follow marketing orientation philosophy. Firstly, because the fact that company running mostly to satisfy customer need, they have to invest a lot of money on extensive researches to explore the customers needs and wants. Therefore, it also leads to other problems when the company has to pay a high costs and waste lots of time includes the period to delay for product to market. Secondly, company can face trouble with me-too products, in case their competitors can sell the same product with the considerable cheaper price by not having to waste money and time to research the requirement of consumers and develop their products. Finally, the marketing orientation centralize on the customers needs and wants, hence, the company have to pay high leveled attention to the changing of their customer behavior, if they do not want their products become tomorrows throwaways. This fact also brings company the high cost of researching customers requirements whereas company always pays attention to the buying behavior may change their objectives. Apply to the case, 1901 Hot Dogs also can supply this method successfully. By define the value of its own products, expect on the requirements of customers, products of 1901 Hot Dogs can occupy Vietnam market stably and continuously. Once products of 1901 Hot Dogs have already occupied Vietnam market, it can have ability to compete with others brand which are very famous in Vietnam now like: KFC, Lotteria.

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3. Identify the elements of marketing concept

Needs, Wants and Demands

Market

Marketing Offer (goods, service or experiences)

Exchange, transacions and relationships

Value and Satisfaction

Figure 2. Model of core marketing concepts

As the model above, the core marketing concepts included five main elements linked together in an enclosed cycle: Needs, wants and demands; marketing offer; value and satisfaction; exchange, transactions and relationships; and the market. In the next part, every element will be indentified both in separation and relationship with other elements, as well as the application in 1901 Hot Dog case study. Needs, wants and demands: According to Philip Kotler, needs is defined as the states of deprivation including physical (food, clothing, warmth and safety), social (belonging and affection) and individual (knowledge and self - expression) deprivation. Develop from this definition, Kotler identify wants under a form that human needs take as they shaped by culture and individual personality. In addition, when the human wants backed by 11

buying power, it becomes demand. Therefore, a product should be created based on human needs and wants. Marketing offer: Marketing offer are combination of products, services, information, or experiences offer to a market to satisfy a need or wants. Normally, when the companies identify and discover what their target consumers needs and wants, they will provide products under marketing offers to seek for consumer satisfaction. Value and satisfaction: Actually, from creating and exchanging process, win win strategy is applied. In this case, the consumer is satisfied when marketing offer meets with his demand. On the other hand, the company is also satisfied when their marketing offer is accepted and bring them customer means profit and earning. Furthermore, it also helps them create belief and loyalty in consumer, which is very valuable for them in long term business. For both sides, they bring each other satisfaction with benefit and added value. Exchange, transactions and relationships: Exchange is defined as the act of obtaining a desired object from someone by offering something in return. On the other wore, the exchange occur when the demand of consumer meet with the supply of seller in order to achieve benefit. Market: Market is the set of actual and potential buyers of a product or service. In the market, products, service and experience are exchanged to bring benefits and satisfy both two sides: buyers and sellers. Furthermore, the changing in market indicates the changing in trend of consumption. As a result, through exploring and studying market carefully, the company can give out marketing planning in which not only satisfy the consumers needs and wants effectively but also orient their needs and wants companies desire in long term (trend setting). 1901 Hot Dogs have to focus on customer orientation because Vietnams market doesnt like other market. A symbolic example: although Vietnamese like eat fry-foods and stir-fry foods, they already take care of their health. On one hand, actually they really want to eat these foods. On the other hands, they worry about their health because fry-foods and stir-fry foods have too much oil. So, if 1901 Hot Dogs cant find any solutions to fix this problem, the 12 follow

foods of 1901 Hot Dogs can be no longer belong to favorite foods of buyer. The buyer will find other foods of other companies that are not only guaranteed about quality but also popular with them. The revenue of 1901 will be fall down rapidly. Worst, 1901 can be bankrupt in Vietnams market.

4. Identify and assess the benefits and costs of a marketing approach In Vietnamese scenario, 1901 Hot Dogs should follows marketing orientation in which they approach the market by focus on customer, instead of product at central place in marketing strategy and activities. However, everything has two sides, and this marketing approach brings not only benefits but also considerable costs for the company. As a foreigner Fast food company, 1901 Hot Dogs will have to exploring the market in order to identifying the customer who defined as purchaser of a product or service is not out of this process. In Vietnam there are more than one fast food services, but one advantage 1901 Hot Dogs is none of its competitor selling hot dogs, they only selling fried chicken, and hamburger (KFC, BQQ chicken, etc). But come along with advantage there always a disadvantage, customer are afraid of trying something new unless that new products its a break through. In order to have this Break-through, 1901 Hot Dogs will have to a lot of research in both market and Vietnamese cultural. For example, McDonalds is the most successful brand in the world, not only in the revenue but also in the reputation and the quality of food, but in Philippines McDonalds had lost most of the market share to Jollibee. The main reason for Jollibee successful is that Jollibee had done a good market investigation. It is proved in every entree, Jollibee put rice in it, and the food is similar to what a Filipino mother would cook at home and is designed to suit the Filipinos palate. 1901 Hot Dogs should use some marketing approach that have been borrowed from other fast food company such as KFC. When a some one rush in 1901 Hot Dogs, he/she will prefer a fast, cleanliness, and affordable services rather than waiting in a old fashion long line. Obviously, the satisfaction brings loyalty of customer to the company. Furthermore, it leads to cross selling opportunities in which explosive growth 13

in sales or spread of product information though customer contact1. For example, a loyal customer can introduce the brand to other people or provide positive comments on the Internet for the company. Normally, the customer tends to trust on what experience consumers said, instead of companys advertisement. In other words, taking advantage of loyal customers is one of the most effective ways to attract other customers in order to achieve their satisfaction and loyalty. Moreover, by establish long lasting relationship with loyal customer, the company might reduce the extra cost on looking for customer and marketing campaigns. In long term, it does not only help 1901 Hot Dogs gain earning from loyal customer but also remain and expand market share.

Image 1. Viral Marketing through customers contact

However, going along with benefit is the cost that 1901 Hot Dogs has to face with when they decide to enter Vietnamese market. Firstly, when the company chooses marketing orientation approach and centralizes customers, it has to spend a lot of money on research and development projects to understand market as well as customers. Moreover, keep existing customer
1

http://www.businessdictionary.com/definition/viral-marketing.html

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retention as well as gaining potential customer also make up a considerable amount of money, including after selling services and PR campaigns. In case 1901 Hot Dogs lose its customer, many serious consequence can occurs, effect negatively on companys profit and operations. Secondly, when customer is the central of marketing process, every product is produced and provided based on what they need and want. Furthermore, the taste of customer not only changes incessantly day by day but their requirements are also rising. As a result, company also have to focus on quality movement in order to satisfy customer in the highest level.

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II.

The content
1. Identify and explain the macro and micro environmental factors which influence marketing decisions affecting 1901 Hot Dog in Vietnam. 1.1 Micro factors

Microenvironment consists of the factors close to the company that affect its ability to serve its customers: the company, suppliers, marketing intermediaries, customer markets, competitors, and publics in general. These factors, as known as stakeholders, are classified under 3 main categories including internal (within company), connected (suppliers, intermediaries) and external stakeholders

(competitor, public) in order to explore the effect of them on strength and weakness, opportunities and threats of the company.

Strength: The first strength of the company lies in the international brand that 1901 Hot Dogs has already built. Particularly, a considerable part of Vietnamese people assume that foreign products often own quality over domestics one. As a result, the entering of foreign especially international brands into Vietnam are welcomed and appreciated in a warm way. In addition, the experience as well as the international fame of 1901 Hot Dogs brand appears as an advantage for the company when they confidently build initial image with high level products.

Weakness: The main weakness of 1901 Hot Dogs is that they dont have the proper marketing strategies. Even though, 1901 Hot Dogs has become an international brand but 1901 s products are not very popular in Vietnam. Another points is that, information about 1901 are only available in limited source such as 1901 Hot Dogs and Facebook, this mean 1901 didnt exploit the full potential of mass media. This could be the worst critical situation if 1901 want to join Vietnam fast food market. Another weakness is 1901 Hot Dogs has a lack of toys that come with kiddy meals while its competitor like KFC has every chicken action figure in each

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of its kiddy meals. This encourage the young age customer to urge their parent to buy KFCs products. Opportunities: Despite the weakness which was mentioned above, 1901 Hot Dogs still has it own opportunities that none of its competitor has. For example, 1901 Hot Dogs is the first fast food company in Vietnam that sell hot dogs, so it'll have the privilege of being the first company to step foot in hot dog business in Vietnam. Threat: How ever, being the first isnt always good, everything has it two sides, if 1901 did not do well in market research, it could lose market shares in its own area or worst being over throne by a new comer who did well on customer research. 1.2 Macro Factors

Major external and uncontrollable factors that influence an organization's decision making, and affect its performance and strategies. These factors include the economic, demographics, legal, political, and social conditions, technological changes, and natural forces2. Normally, the macro environment factors are analyzed under PEST formula (Politics, Economics, Society and Technology). Politics: Firstly, Vietnam is considered as a safety investment place for foreign country based on its political stable. Therefore, it can ensure that there is no consideration religious conflict, terror attacks or unstable politics can affect the companys running in both long term and short - term. Moreover, the stable of politics enable residents to live peaceful and have time to care about both physical and spiritual life. As a result, there will be a potential opportunity for 1901 to approach the customer and help them to satisfy their spiritual demand in return of earnings and frame. Secondly, Vietnamese government has had positive policy in order to attract foreign companies invests and run business in Vietnam. Moreover, Vietnamese government focuses on attracting FDI (foreign direct

investment) as one of the main sources for economic growth. From this

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direction, the government provides a considerable number of policies to encourge foreign investors to pour capital in Vietnam. Economy: In term of economy, 1901 Hot Dogs products is put under label of luxury goods which defined as one which has income elasticity larger than one3. In fact, the price of companys products range from 59 000 VND to millions VND, which is pretty high to middle income in Vietnam in comparison with lovely and lacey gift market. According to statistics from GOS (general office statistics), the income of Vietnamese people increase incessantly year by year from $403/person to $1080/person, in spite of the economic influence under global economy recession in 2008. In recent years, the economics of Vietnam maintains developing despite of being influence significantly by global economic recession. According to the statistics of General Statistics Office, GDP (Gross Domestic Product) in nine months of 2010 was estimated increasing by 6.52% as compared to nine months in 2009, of which it rose by 5.83% for 1st quarter; by 6.4% for 2nd quarter and by 7.16% for this quarter. This was a rather high growth as compared to that of 4.62% in the same period last year.4 Furthermore, the Octobers CPI rose by 1.05% against the previous month5 while the retail market in 2009 reached 66 billion. These statistics above indicate a lighten potential market that always open the door to welcome the international brand like 1901 Hot Dogs enter. However, the whole economy is under unstable situation. Budget deficit stand at 9% in 2009 while inflation is still remain high year by year.

Moreover, the USD exchange at black market rise higher and higher effect considerably in import expenses which can influence on products price of 1901 Hot Dogs. Social: Firstly, Vietnam is a multi religion country but no one of them becomes national religion. Thus, the religion factor does not have much significant influence on 1901 Hot Dogs business. In other words, unlike Islam countries such as Israel or Saudi Arabia, the company does not have
3 4

http://www.lse.co.uk/financeglossary.asp?searchTerm=&iArticleID=2093&definition=luxury_good http://www.gso.gov.vn/default.aspx?tabid=622&ItemID=10505 5 http://vneconomy.vn/2010102305201231P0C19/cpi-thang-10-tang-cao-nhat-trong-15-nam-qua.htm

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to care about religion elements in their products. It also help the company save a consider amount of money in customers explored projects. Secondly, the culture factors have influenced on every foreign firms which desire to operate in Vietnam because of its direct effects on customers buying behaviors. With Vietnamese people, gifts are a special message between people and people and granting gifts has become a culture feature which has passed from generation to generation. Furthermore, Vietnamese young generation these days has an open view and they mostly feel comfortable to accept new international brand. As a result, 1901 Hot Dogs with its unique products has opportunities to conquer the potential market of Vietnam.

Technology: Within 20 years, there is a tremendous jump in manufacturing industry in Vietnam that transform from handmade manufacturing sector to mass industry in industrialization and modernization orientation. Therefore, this development enables the companies to increase productivity effectively while reduce manufacturing time, labor costs as well as some miscellaneous expenses. This mean instead of import high quality hot dog from Malaysia, 1901 can build a factory an produce same quality Hot Dogs right in Vietnam, this will save 1901 a lot of money in import tax, storage and transportation fees. Furthermore, the 21st century is marked by the Information Technologys explosion with the Internet and Social Network. In this case, Internet appear as a effective tool in order to help 1901 Hot Dogs approach the customer, especially in marketing and PR campaign which bring information to customer in a convenient and quick way. For example, 1901 Hot Dogs can attract potential customer by designing a lovely and informative website, using advertising banner on popular websites and forums such as Zing forum. Moreover, the social network seems to be a potential place to spread the information effectively. Through Facebook or Twitter, all both positive and negative comment from customers and consumers about 1901 Hot Dogs products are spread away as a trustworthy information to other people, especially when contemporary wise customers tend to goggle (using 19

Google to look up information) everything before deciding to buy product or not. Therefore, the development in IT brings not only opportunities to gain customer and build long term relationships with them buy brings brand and customer closer, but also threats when company have to maintain the quality of every unique product. 2. Segmentation Market Segmentation is defined by Philip Kotler as the subdividing of a market into distinct and increasingly homogeneous subgroups of customers, where any subgroup can conceivably be selected as a target market to be met with a distinct marketing mix. In modern marketing business, determining a reasonable segmentation does not only help the company serve and achieve the customers satisfactory better but also minimize unnecessary cost. Moreover, the segmentation plays important part on raising company competitive ability.

2.1

Business to business Segmentation

2.1.1 Micro Segmentation based Once 1901 Hot Dogs desire to enter the market with Business and business segmentation, the vital thing they have to care carefully about is the organizational based in order to plan targeting strategy in the most effective way Size of Organization: In fact, all of 1901 Hot Dogs competitor are choosing big place for their organization just for a few simple reasons. First, bigger place can serve more customer. Second, a big place can attract more potential customer. For example, if a customer walk by a big fast food store with crowded people, colorful decoration, the first thing will come to his mid is this is a famous brand which is selling good stuff, and the price is affordable with high quality service. Therefore, as the big investor from

Malaysia to Vietnam, 1901 Hot Dogs should take great consideration in choosing area with high competition.

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Product: In this case, the retailers, especially super market are the main targets segmentation that company should consider. In addition, a wholesale price is one of the attractive things to these supermarket.

2.1.2 Macro Segmentation based

Buyer seller relationship: The buyer and seller relationships mostly focus on how different as well as similar between 1901 Hot Dogs and its partners value. In other word, this relationship bases on the understanding value between the two sides. By exploring and satisfying the customer value and demand, the company will build a strong relationship that brings loyalty of customers in long term.

Technology: The development of a technology brings 1901 Hot Dogs chance to maintain the relationships with existing business customer and build new with others. Moreover, the technology support the company perfectly in designing which is can be suitable with every organization customers characteristic and demand. In the website of company, 1901 Hot Dogs provide chance to customer to feedback toward products as well as services, however, the interaction between the company and customer is still limited.

Buying decision process: In some case, the supply of 1901 Hot Dogs does not match with the demand of customer in term of size. Therefore, the company has to decide whether deal with the partner or not. If the exchange occurs, 1901 Hot Dogs will have to consider carefully about the number of products which is enough to provide the rest of market, or wait until enough products imported from Malaysia.

Policies: The marketing policy of 1901 Hot Dogs also has influence on segmentation. In business to business segmentation, the discount and after selling play an important part in keeping the relationship stays with the company. As the report mentioned above, for example, the discount policy based on the number of products purchased can appeal the big partners when they have to wait until their order imported to Vietnam.

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Decision making unit: Decision making unit or DMU is defined as a group of people in a company or organization involved in making an important decision, especially decision to buy something6. As a result, the voice of DMU in a company has a big influence and effect the organization partner in particular way. Thus, 1901 Hot Dogs should invest on explore the DMUs behavior in order to achieve and satisfy customer who are organizations. 2.2 Business to customer Segmentation 2.2.1 Geographic segmentation Geographic segmentation divides the market into different geographical

units such as nations, regions, states, counties, or cities. The Vietnamese market is divided into three main submarkets: northern, center and southern regions; the culture and behaviorism of resident in every region have the different unique which also leads to difference in buying behavior.

We can divide Vietnam into two main markets according to life style criteria: Southern market and Northern market. There are many differences between two areas. Vietnamese who live in the South have an impartial life. They usually spend all of their money in anything they like and dont care about how much they have purchased or what is the price of goods or services they like. Because of this generous life style, 1901 Hot Dogs can open some outlets in entertainment & cultural centres, supermarkets, etc in order to attract more customers and pricing products in high price. However, this price should not too high because Vietnamese income is still low. In comparison with the Southern people, Northern people tend to live simply. They usually save their salary to other bigger purposes. So, 1901 can price products in Northern market lower a little bit versus Southern market. 1901 also can increase the revenue by applying some promotions. This may be help 1901 company reach to the highest interest.

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2.2.2 Demographic segmentation Demographic segmentation divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality. 2.2.3 Psychographic Segmentation Psychographic Segmentation divides buyers into different groups based on social class, lifestyle, or personality traits. Vietnamese customer has a preconception that eating outside for lunch or dinner usually cost more than what you can cook at home but the truth is eating out make you spend a big of money at one moment but with that same amount of money you can just buy the ingredients to cook at you. May be this is a problem of 1901 Hot Dogs. Although each combo of 1901 is about 45,000 VND, cheaper than products of competitors like KFC, BBQ. It still high for student and people with low income. There is a real that the income of Vietnamese is improving but it is still very hard for 1901 to compete with other famous brands. The best solution for this problem is to segment market into two groups: employment and unemployment. By this way, the requirement of each group can be complete easier.

2.2.4 Behavior Segmentation Behavior Segmentation divides buyers into groups based on their knowledge, attitudes, uses, or responses to products. The behavior segmentation can be chosen by some main factors: occasions, benefits sought user status, usage rate and loyalty status. 3. Factors which influence the choice of targeting strategy for 1901 Hot Dogs In order to build the achieved both B2B and B2C segmentation, every companies have to determine where the suitable targeting strategy is, and 1901 Hot Dogs is not a special expectations. With Vietnamese market, there are both internal and external factors that influence significant in the companys choice.

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3.1 Internal factors As mentioned above, there are three internal factors that affect directly the choice of marketing strategy. They are: company resource, product life-cycle and product variability.

Company resource: In terms of company resource, there are 2 kinds of resource that 1901 Hot Dogs must consider when joining in Vietnam market are human resource and financial resource. For sure that 1901 Hot Dogs mustnt care about lack of human resource because labour resource of Vietnam is very profuse. However, the problem here is the professional qualification of Vietnamese labour is still limited. Therefore, 1901 Hot Dogs need to rent more staff in order to increase the effect of working or delegate Malaysian managers to check the quality of foods and services, combine with giving supports for Vietnamese staffs. About financial resource problem, 1901 Hot Dogs can invest more on marketing strategies. However, if 1901 doesnt really confidence about finance of company, it can focus on potential markets first in order to improving financial problem. After that 1901 should open more outlet to increase interest. In Vietnam, there are two potential markets that 1901 Hot Dogs should concentrate on is Hanoi capital and Ho Chi Minh city. There are many differences between this two markets about life style, habit, buying behaviour, etc. Hence, 1901 should have marketing strategies that are suitable with each market to increase the revenue of company. Normally, if companies want to be successful fast, they usually focus on this two markets first.

Product variability: We can understand product variability is way that the firm can develop in order to attract many people from different groups of market. In addition, the taste of customer is not the same every time. It change rapidly. So, in order to satisfy the needs and wants of customer perfectly, companies have to have products with variety of styles and designs. Of course, the quality of product have to keep at the same level or 24

more after improving product. 1901 is famous for many kinds of delicious hot dogs that customers will have opportunities to choose the most appropriate meal. However, 1901 still must change their foods continuously and create some new foods to make customer feel excited with the taste of new foods. Not all of new foods are suitable with Vietnamese taste. So, 1901 should focus on customer research and try to follow trends that change quickly in Vietnam market. In addition, 1901 also need pay attention on loyal customers by maintaining signature products to claim the differences with other companies.

Product life-cycle: The final internal factors is product life-cycle. This process includes four stages: Introduction stage, growth stage, maturity stage and final is decline stage. Please look at this chart below.

We can realize clearly that the requirements about one product will be declined after market reach to the full maturity. In the scenario of 1901 Hot Dogs, its products had been successfully in Malaysia, Singapore and Indonesia for many years. However, foods of 1901 Hot Dogs are still one of the most favourite of many people. In Vietnam market, products of 1901 have not appeared yet. This is the causes of low awareness of Vietnamese about 1901s foods. So, we can identify that products of 1901 are in the stage of growing. In order growing more in Vietnam market, 25

1901 Hot Dogs should have a suitable marketing strategy, taking fully advantage of mass media, combine effectively between advertising on TV, radio and newspaper and magazines. This result also means 1901 Hot Dogs will have to invest more money on advertising in order to be more popular in Vietnam market. However, with the advantage of 1901 is hot dogs, a new kind of fast food in Vietnam market, 1901 have enough ability to compete other companies.

3.2 External factors Factors that come from outside affect the choice of marketing strategy include market variability and competitors marketing strategies.

Market variability: Market variability could be understand as the needs and wants of customer. In some way, it is quite the same with market segmentation. Because Vietnamese customers have different tastes and preference, 1901 Hot Dogs must recognize exactly what are the requirements of each group of customer. Therefore, it is appropriate for 1901 to make some different marketing plan in order to satisfy each group of customer more perfectly. Moreover, 1901 also can take advantages of unique products of 1901 which had made successes for 1901 to suppose for marketing maintains.

Competitors marketing strategies: Taking about competitor, it is claimed that this is an important factor which can decide whether company can get interest or not. In Vietnam market, there are two biggest competitors of 1901 are KFC and Lotteria. These two brands had done business in Vietnam for a while so they have some specific advantages. They have many outlets in many populous areas with modern facilities. In addition, their brand is well-known as the best fast food in Vietnam nowadays. However, 1901 also had its own advantages. The brand of 1901 Hot Dogs had been allowed as an international brand. 1901 itself had got many successes when being established in Malaysia and expanded in Singapore and Indonesia. The problem of 1901 Hot Dogs is

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competitors marketing strategies hold almost whole market in Vietnam and it seem to be hard for 1901 to run business in this market. However, hot dogs is a new kind of fast food in Vietnam market nowadays. 1901 should have marketing strategies that concentrate on drawing people who would like to eat hot dogs. Gradually, people will recognize that the conveniences of hot dogs in comparison with other fast foods and the revenue of 1901 Hot Dogs will be improved. In some situation, 1901 Hot Dogs can also apply some sale off programmes to compete KFC and Lotteria more effectively.

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4. Buyer behavior
From the perspective of customer both individual and organization, the buying process is expressed through SPR model. Firstly, customers waken up by stimulus under influence of culture, social, peer group and marketing mixture from the suppliers. Therefore, a process occurs to satisfy this stimulus which affected significantly by psychological and physiological factors, perceptions and feelings. The model ends with the respond of customer; and in the modern, individual or business customer buy and use product with attitude and belief. In order to giving out an effective marketing plan with appropriate marketing activities, every company has to understand this process as well as the effect of each stage on marketing activities.

Stimulus

Culture Social Influences Reference group Marketing Mix

Process

Psychological Factors Physiological factors Perceptions and feelings

Response

Attitude and beliefs Buying Behavior Buying Practise

Figure. The SPR model

Consumer behavior can be defined as the decision processes and acts of individuals involved in buying and using products or services. As the process below, customer

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buying process consists of five stages, and each stage effect marketing activities in different way.

Problem Regconition

Information search

Evaluation of alternatives

Purchase Decision

Post purchase behavior

Figure 3. Customer buying process

Problem recognition:

When a person recognize the he lack of

something and needs to have it to fulfill his deprivation, he will find the way to solve the problems. In fact, there are many factors effect on the first stage, including personal factor and psychological factor. In order to understand needs and want, the an indispensable model of Maslows pyramid of hierachial appears as the most reasonable explanation.

Image 2. Maslows Hierarchy of Needs

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Information search: Normally, when people recognize what they need, they will seek information to solve out their problem in the most effective way. In recent year, Internet with Google appears as the most convenient sources to looking up for multi - aspect and diversified information, beside traditional sources such as newspapers.

Evaluation of alternatives: After seeking for information, the customer will put all their choices into an intangible scale to analyze them with each other in order to find out what is the best choice in term quality and prices.

Purchase decision: In this stage, people decide whether the exchange occur or not. However, there still some factors effects on the final decision in the last minus. This problems might depend on quality of services, sale assistants, financial problems or accidental mind changes

Post purchase behavior: After purchasing, the customer will examine whether the product and service satisfy their need or not. If they feel satisfy, they will come back and continue to use the service of 1901 Hot Dogs. As a result, in this case, the marketing activities also play a vital role beside the quality from itself. The 1901 Hot Dogs should concentrate on the after purchase policy such as member cash or discount for loyal customer. Furthermore, one advantage of using relationship with loyal customer is they can help the company with free marketing and PR to other people as viral marketing. Another proposal, in some special occasions such as holidays or wedding season, the company should have some sale promotion policies to improve the sales. For example, a small gift is not only make customer delighted but also a secretive marketing method indirectly.

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C.

Conclusion

In conclusion, marking is defined in variety ways based on how each stage of marketing process important. Then, the key characteristics as well as elements of marketing concepts are identified and explained in the real case of Love Lace. From the marketing approach of this company, the report mentioned the benefits as well as the costs for the company. In the next part, the marketing process of 1901 Hot Dogs will be explored deeply in term of business environment influenced factors. Next, the report proposed two appropriate segmentations that 1901 Hot Dogs should target, hence, outline the factors influence on determined targeting strategy for the company. Finally, through exploring buyer behavior process, the report answered the question about its effects on company marketing activities. With the information provided in this report, the researcher hope that they will useful and value for 1901 Hot Dogs in order to plan marketing activities effectively and gain the heart of customers in Vietnam market.

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Reference
Book sources: BPP Professional Education, 2004, Mandatory Unit 1, Marketing Degrees Course Book, London, BPP Professional Education Kotler, P 1999, Principles of marketing, Prentice Hall Europe, Britain.

Internet sources

Business Dictionary, 2010. Viral marketing definition [Online] Available at: http://www.businessdictionary.com/definition/viral-marketing.html [Accessed: November 4, 2010 ] General Statistic Office, 2010. Economic situation in the early 9 months of 2010 [online] Available at: http://www.gso.gov.vn/default.aspx?tabid=622&ItemID=10505> [Accessed November 5, 2010] VN Economy Newspaper, 2010. CPI of October raises highest within recent 15 years [online] Available at: http://vneconomy.vn/2010102305201231P0C19/cpi-thang-10tang-cao-nhat-trong-15-nam-qua.htm [Accessed: November 5, 2010] Business Dictionary, 2010. Macro Environment [online] Available at

http://www.businessdictionary.com/definition/macro-environment.html [Accessed: November 6, 2010] Financial Times Lexicon, 2010. Decision making Unit [online] Available at: http://lexicon.ft.com/term.asp?t=decision_making-unit [Accessed: November 8, 2010] Customer concept : CONCEPTS OF CUSTOMER ORIENTATION - INTERNET BUSINESS MODEL FOR CUSTOMER-DRIVEN OUTPUT by Prof. Dr. Peter Loos Market orientation: On Market Orientation: Development and empirical validation of two symmetric component measures of market orientation" by Hans Eibe Srensen

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