Globalization is the key to success for any company (Jobber and Ellis-Chadwick 2012). Every organization should aim at spreading its business in the international locations rather than just spreading the business within the country (Armstrong et al. 2012). ‘Taste of Singapore’ is one such company that is planning to venture in the market of Vietnam. The main aim behind taking the business in the international location is to spread the taste and culture of Singapore in a different country. The company will face huge competition from the market and hence, they should be prepared to face all sorts of challenges as well as welcome the opportunities that will come in the way of the company.
The venture of ‘Taste of Singapore’ will be explained in three parts. Task 1 will be mainly about the environmental analysis of Vietnam so that ‘Taste of Singapore’ gets an idea about the market and the economic conditions of the country. Based on the environmental analysis, the marketing plan will be discussed that will be helpful for the organization to venture in that locations (Wilson et al. 2012). The marketing mix will assess the proper blend of the products and the promotions that will help them to make a smooth venture in the market of Vietnam. Based on the marketing plan, the market entry strategies will be discussed. The rules and the laws of carrying out the business will be entirely different as far as the countries are concerned (Hollensen 2015). The marketing plan will help the readers to understand the factors that should be evaluated when a company is venturing in an international location.
The best way to reach to the people of another country is through food. Thus, ‘Taste of Singapore’ will export the food to the market of Vietnam, which will also be a way of spreading the cultures of Singapore to different parts of the world. Singapore is rich with Asian culture and traditions and famous for different types of food that could only be found in Singapore. On the other hand, Vietnam has been under the rule of French and the United States for a huge period. As a result, the western culture is famous in that place. However, to enter the market of Vietnam, it is necessary to understand the food industry of Singapore and understand the country as a whole (De Mooij 2013). The macro-environmental analysis is the form of PESTLE analysis and the micro-environmental analysis in the form of SWOT analysis will be used to understand the current situation of the market in Vietnam (Czinkota and Ronkainen 2013). The PESTLE analysis will give an overview of the external market of Vietnam that ‘Taste of Singapore’ will face after going to the country. The SWOT analysis will give an idea to ‘Taste of Singapore’ to understand whether they are prepared to face the challenges and the opportunities that they will come through in Singapore. The evaluation of the porter’s five forces will be taken into account the factors that are being evaluated in the PESTLE and the SWOT analysis. The porter’s five forces will help ‘Taste of Singapore’ to assess the areas that the need to develop if they want to venture in the market of Vietnam.
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Political |
Even though Vietnam has gone through various political turmoil in the past, the government is presently supporting the food industry of the country. The ministry supports the Vietnam International Food Industry Exhibition 2016 and the Vietnam Trade Promotion Agency along with the germane authorities has taken the responsibility to organize the events as well as promote the event (Vietrade.gov.vn 2016). The National Trade Promotion Programme along with the exhibition professionals from Europe is working to together to make the food industry of Vietnam famous in the international platform. |
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Economic |
Vietnam has been able to witness a serious economic growth after the economic downturn when the collapse of the western culture (Vu-Thanh 2015). The economic development will be helpful for ‘Taste of Singapore’ to launch their products in the land of Vietnam. |
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Social |
The social structure of the country will helpful for the companies that are thinking of building the business in Vietnam. The population of Vietnam is young and hence, it will be helpful for the companies that are thinking of doing the business in the country. The population in Vietnam is 87.84 million. With the growth rate being 1.2%, it has been expected that the population will increase to 100 million in the year 2020. Over 50% of the population is either 25 years or younger than that. |
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Technological |
The Law of Technology Transfer |
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Environmental |
The investors who are carrying out the business should adhere to Environmental Impact Assessment Reports (EIARs) and Environmental protection undertakings (EPUs). The companies who are doing business in Vietnam should take the undertaking that they will protect the environment along with the district people’s committee. The undertaking consists of the location, scale of the establishments, the form of the organization, the types of products produced as well as the amount of energy used by the organizations. |
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Legal |
The Law On Enterprise (LOE) send the law on investment (LOI) regulate the activities for investment in the country (Earnst and Young Vietnam Limited 2013). The LOI looks into the types of activities taking place while a firm is entering in the country. in addition to this, it keeps a check on the organizational rights of the investors. Vietnam has taken steps to make the environment for the business owners be helpful. The investments and the business agreements will be promoted and protected by the government of Vietnam with sic other countries and territories. Some of those agreements are ASEAN Free Trade Agreements with Australia-New Zealand, China, Japan, Korea and India, the Convention on the Establishment of the Multilateral Investment Guarantee Agency (MIGA), the ASEAN Comprehensive Investment Agreement (ACIA) and the ASEAN Comprehensive Investment Agreement (ACIA). |
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Strength Vietnam is thinking of spreading its business and culture among other countries and Vietnam International Food Industry Exhibition 2016 is one of the biggest strength of the industry. The food industry of Vietnam will become stronger mainly because of the international countries who are taking interest in the food industry of the country. The exhibitions will not limit itself to processed food. Processed food is one of the most sought after products in the country. Other types of products like seafood and agricultural products will also be a part of the exhibitions. As far as the food sector is concerned, Vietnam has developed well and the agricultural sector has been helpful to make the industry famous in the country. It has been seen that the agricultural products are even exported to other countries. |
Weakness The main weakness of Vietnam is the security of the country. The food industry is performing well in the market but if the country is not protected from the neighboring countries then it might not be possible for the business owners to carry out the business in that location. |
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Opportunity As the country is opening door for the international countries, many of the international countries will see the industry as a huge opportunity. Some numbers of Singaporean restaurants are present in the market of Vietnam. However, the number is not huge. Less number of restaurants that serve Singaporean cuisines might act as opportunity for ‘Taste of Singapore’. |
Threat The threat that Vietnam is facing is from China (Corr 2016). They are aiming to attack the shores of Vietnam. In addition to this, they will be unable to use the sea for exports and imports and eventually, it will hamper the supply chain management of the companies that are operating in that area. The already established restaurant will pose as threat to ‘Taste of Singapore’. Some of the restaurants that are already present in Vietnam are Lion City Cafe and Restaurant (45 Le Anh Xuan) and Lion City Cafe and Restaurant |
Porter’s five forces will be helpful for ‘Taste of Singapore’ to understand the positive and the negative forces that the company will face while operating in Vietnam. The macro-environmental and the micro-environmental analysis will be able to contribute to evaluate the porter’s five forces that will affect ‘Taste of Singapore’.
Vietnam is opening doors to the international countries. Hence, a number of ne companies are entering Vietnam. As ‘Taste of Singapore’ is one of them, hence, it should think take the new companies seriously. The new companies will prepare themselves while entering in the market and hence there is high chance that the new entrants in the country could over shadow the business of ‘Taste of Singapore’ (McKenzie-Mohr 2013).
When an industry is growing, the rivalry among the industry will also grow (Babin and Zikmund 2015). The restaurants that are present in the country will try to develop themselves as well as the new entrants will also come prepared for the competition. Hence, the threats from the rivalry will also be high.
As Vietnam has been able to develop the food industry, hence, it would not be an issue ‘Taste of Singapore’ to get the raw materials from the country. In addition to this, the bargain of the suppliers will be less. Thus, ‘Taste of Singapore’ will be able to get the raw materials at a lesser rate. ‘Taste of Singapore’ will face the issue if it has to import any of the raw materials from the international countries. It has been seen that China is posing a threat to the country and they are facing trouble to use the sea route for business.
The threats of substitutes will be neutral for ‘Taste of Singapore’. The company is bringing in a culture and taste that is not normal in Vietnam. Vietnam has been known for the western culture and ‘Taste of Singapore’ is introducing an Asian taste to the country. On the other hand, a number of restaurants are present in the country. Thus, the customers will have a number of choices. Hence, it can be said that ‘Taste of Singapore’ will have to adopt a unique marketing style that will help the company to attract the customers.
The bargaining power of the buyers will be strong. The customers will have a number of choices to taste from the cuisines present in the country (Terpstra, Foley and Sarathy 2012). In addition to this, some numbers of Singaporean restaurants are present in Vietnam. The customers can shift to other restaurant if they do not like ‘Taste of Singapore’. As the number is not huge, hence, the research might not have to be intense for ‘Taste of Singapore’. However, other restaurants that offer different types of cuisines will continue attracting the customers. Hence, ‘Taste of Singapore’ will have to develop them in such a manner so that the customers are attracted to them.
The main aim of ‘Taste of Singapore’ is to spread the taste of Singapore in the land of Vietnam. As a result, the restaurant has chosen some of the famous dishes from Singapore to present to the people of Vietnam. The types of foods that are available in china hugely influence the food of Singapore. Some of the famous dishes that would be served by ‘Taste of Singapore’ are:
In spite of extending the business ion an international location, the restaurant will start with the lesser varieties of food. The taste of the people in Vietnam is not knowsn. Hence, if the above-mentioned food gets famous among the people in Singapore then there will be further expansion of the restaurant and the types of food will be introduced for the people of Vietnam.
To reach to the customers and spread the culture of Singapore, it is important to implement a proper marketing plan and involve every step that will help in reaching to the correct customers, at the correct time and the correct place.
To reach to proper customers, it is important to segment the market (Hartley and Claycomb 2013). ‘Taste of Singapore’ will segment the market based on the place and behaviour of the customers of that country.
Geographic
The restaurant will be mainly set up in the urban locations, as the customers who are residing in rural location might not be well acquainted with the food from a new country (Boone and Kurtz 2013). In addition to this, it should be set up in a commercial place so that they are able to get more customers (Sheth and Sisodia 2015).
Demographic
At times, it has been seen that the younger generation has the interest for trying with new food (Kotler 2012). Hence, the target customers will start from, the age group of 16 years and will go on until 35 years. It is not that that target customers will not be beyond that age, but chances are high that main customers will be from the mentioned age group (Strauss 2016).
Psychographic
People who have an affinity for trying out new food will be the main target for the restaurant (Rosenbloom 2012). In addition to this, the customers who are from Singapore will be the main target for the organizations. The Singaporeans will be happy to get the food from their country in Vietnam. In addition to this, the Asian people staying in that country will be the main target for the restaurant.
The 4 Ps of the marketing mix strategy will help ‘Taste of Singapore’ to understand the correct marketing tools that will be needed by them. The marketing mix will give a proper idea about the plan to place the product and eventually promote the products (Shank and Lyberger 2014).
Product
The Unique Selling Point (USP) of the product will be the authentic taste of Singapore (Dávila 2012). They will not sell any other cuisines and will stick to the authentic taste of Singapore. The visitors who are coming to ‘Taste of Singapore’ should feel that they are entering a restaurant in Singapore. The chefs who will work at ‘Taste of Singapore’ will also come from Singapore. The customers should feel that they are getting the value of the products that they are paying for (De Vries, Gensler and Leeflang 2012).
Price
Pricing of the products will relatively lesser than other shops (Huotari and Hamari 2012). However, they cannot continue to give very less price as they preparing an entirely different cuisine in country that is completely different from the land ‘Taste of Singapore’ coming from (Armstrong et al. 2014). The basic raw materials will be avowable in Vietnam. However, for specific products or spices, they have to import it from Singapore.
Place
The restaurant will be in a commercial location and in a place, that has a number of restaurants (Berthon et al.2012). A place near Coochin Food Court will be perfect for ‘Taste of Singapore’. The restaurant should come into notice of other customers who are coming to the restaurant. Once the restaurant will be able to catch the attention of the customers, it would be easier for them to become famous (Papadopoulos and Heslop 2014). Initially, one branch will be operating. If the business goes well, then it will open other branches in different places.
Promotion
Promotion will be mainly done with the help of hoardings (Christopher and Peck 2012). Hoardings and print advertisements are the best way to make the people known about a new business (Kim and Ko 2012). Hoardings will help the organization to catch attention of the customers. The print advertisements will also help them to reach to number of people who mainly rely on either magazines or newspapers (Peppers and Rogers 2012). Printing the advertisements in any of the food magazine will also help ‘Taste of Singapore’. In addition to the print advertisements, it is necessary to have an online presence (Christopher, Payne and Ballantyne 2013). ‘Taste of Singapore’ should create website and promote it on the social media. As the younger generations are well connected with the social media, hence, the online presence will give them good lift (Baker 2014).
Once the marketing mix for ‘Taste of Singapore’ has been assessed, the marketing tools and techniques that will be useful for the company will be assessed.
Value additions
Adding value to the products makes the product more valuable to the customers who are using it (Wilson and Gilligan 2012). As ‘Taste of Singapore’ is coming first time in the market of Vietnam, hence it should give inaugural discounts to the customers. In the first month of the launch, they can give complementary drinks or desserts to the customers. They can also give complementary gifts like souvenirs to the customers. In this way, the customers will get attracted to the restaurants. In addition to this, ‘Taste of Singapore’ can start the idea of happy hours for the customers. In the happy hours, they will give extra discounts to the customers who are coming to the restaurants (Pike 2015).
Follows ups and feedbacks
Following up with the customers and taking their feedback can help in making a long-term relationship with the customers (Kotler et al. 2015). The customers will feel that their responses are important to the company and the company could use the feedback to make changes in the business (Krishna 2012). Following up after the service in the form of feedback forms sent to their e-mail will help in making in the marketing process smooth both for the owner of the restaurants as well as for the customers (Peck et al. 2013). Customers will be happier if they see their suggestion being implemented in the restaurant when they will visit it next time (Shimp and Andrews 2012).
The customers do not like monotonous restaurant (Halinen 2012). Hence, change is one of the famous methods of marketing techniques. ‘Taste of Singapore’ can start with small number foods and then can move forward with other factors that will help in enhancing the business. It could be the services or the decor that could be changed by ‘Taste of Singapore’. Changes always attract the customers (Erdo?mu? and Cicek 2012). Once they will see changes, they will visit the restaurant more often. Once the footfall will be more, business will be enhanced. However, it might be difficult for ‘Taste of Singapore’ to bring constant changes in the business. Hence, it should bring small changes at a time so that the restaurant is able to show the change whereas they do not have to make huge changes in the business (Ryan 2016). For example, they can change the food items on discount during the happy hours or can change the offers during the happy hours. They can either introduce a new product or make changes in the product. However, they should keep the old products even if they change any product in the restaurant.
Along with ‘Taste of Singapore’, other restaurants provide Singapore cuisines. ‘Taste of Singapore’ has to stand out in the crowd to make its presence felt in the market. Decorating the interior of the restaurant in Singaporean style can be an option for ‘Taste of Singapore’. The customers should feel that they have entered a restaurant that is in Singapore and not in Vietnam. Along with food, the essence of the place is huge factor that will affect the visitors (Jobber and Ellis-Chadwick 2012). If the customers feel that are in Singapore while they dining at the hotel, it will help ‘Taste of Singapore’ promote themselves in a better manner.
Product will be more valuable to the customers once it will act as resource to the customers (Armstrong et al. 2012). As ‘Taste of Singapore’ is representing the culture of Singapore, they can provide free information to the people who want to travel to that country. ‘Taste of Singapore’ might not act as a complete tourist guide but small information about the locality will help the customers when they will visit the country. However, one thing that they should keep in mind is that they should not charge the customers while giving them the information (Wilson et al. 2012). It will act as a type of complementary resources for them. The complementary services will help the restaurant to attract more customers (Hollensen 2015). The customers might come again just because of the gesture made by ‘Taste of Singapore’. On the other hand, if the resources are helpful for the customers, they might come back gain to the restaurant, which will be a sort of thanksgiving visit (De Mooij 2013). Eventually, these customers will act as the word of mouth and will highlight the restaurant positively because of their complementary services (Czinkota and Ronkainen 2013).
The customers do not just want the products or services (McKenzie-Mohr 2013). They look out for more that they could gain from the products. Even if they are satisfied with the products or services, they will become loyal once they get something extra from the services (Babin and Zikmund 2015). The nutritional content of the food will help in filling up the place. The customers should be given information about the ingredients and the nutritional value of the food (Terpstra, Foley and Sarathy 2012). They will be satisfied that ‘Taste of Singapore’ is taking care of their health and giving the necessary information about the food.
Adhering and promoting a sustainable business can also help an organization to promote it (Hartley and Claycomb 2013). They can work with solar energy instead of using the normal electricity. In addition to this, they can use environmental friendly material to carry out their business (Boone and Kurtz 2013). In this way, they will be able draw more people and getting financial help later will be easier. If ‘Taste of Singapore’ wants to expand its business, then it might require financial help from other marketers in Vietnam. The sustainable business will help them to gain easy help from the clients (Sheth and Sisodia 2015).
As the ‘Taste of Singapore’ is venturing in the international location, it has to choose some of the best marketing entry strategies that will help the organization to make its presence felt in the market. Some of the marketing entry strategies that can be used ‘Taste of Singapore’ are:
While entering a new location, ‘Taste of Singapore’ will use the waterfall strategy. ‘Taste of Singapore’ has well established market in Singapore. It should enter one market at a time rather than entering a number of markets at one go (Kotler 2012). In this way, ‘Taste of Singapore’ will be able to get an idea about taste and preference of the customers. They can take the future steps by depending on the experience they had from that one market (Strauss 2016).
Licensing is one of the most important parts of the business for the company (Rosenbloom 2012). For ‘Taste of Singapore’ doing business in Vietnam can be challenging as the laws and the rules in Vietnam at a fast rate. ‘Taste of Singapore’ is setting up a restaurant in the country. They have to take permit for the locations, have to keep check the employment laws and the laws for doing in the country (Shank and Lyberger 2014) . The Investment Law 2014 and the Enterprise Law 2014 should kept in mind by ‘Taste of Singapore’ while entering the market of Vietnam.
Use of internet and social media will be perfect for entering the market for ‘Taste of Singapore’. The online tools will be quite helpful for ‘Taste of Singapore’. Some of the techniques that they can use are:
Autosend will help the company to reach out to a number of customers by sending them personalized email (Dávila 2012). If any of the customers visits the website, the company can track the mail ID. Based on their search, Autosend will send them mail, personal messages that will be targeted mainly towards the choice of the customers (De Vries, Gensler and Leeflang 2012).
The best way to reach the younger generation is to create a page in the social media (Huotari and Hamari 2012). Website will be must for a company that is operating in today’s market (Armstrong et al. 2014). The page in the social media will redirect the customers to their website (Berthon et al.2012). The idea of tagging location in Facebook will give ‘Taste of Singapore’ the required promotion. The users should be able to past feedbacks in the pages. As social media connects huge number of people, hence, managing a social media will be the best entry strategy (Papadopoulos and Heslop 2014). At times, the user compares a new restaurant with other restaurants present in the vicinity (Christopher and Peck 2012). ‘Taste of Singapore’ will be able to keep a track of the competitors with the help of the users. However, the market entry strategy will be successful once they make the changes as per the feedback of the customers (Kim and Ko 2012).
Oktopost is a social media tool that will help ‘Taste of Singapore’ to manage the content of the post in the social media. They can keep a track on the campaigns and understand whether it is successful or not (Peppers and Rogers 2012). Oktopost will also help in managing conversation with the users of social media (Christopher, Payne and Ballantyne 2013).
While entering a market, the best way to attract the customers is by designing advertisements (Baker 2014). However, it is not possible to create the advertisement as per the location or the size (Wilson and Gilligan 2012). Advertisements should have different lengths depending on the place of promotion (Pike 2015). Canva will be helpful for ‘Taste of Singapore’ to create the desired advertisement in the shape that will be perfect for the company (Kotler et al. 2015). It will not be time consuming and ‘Taste of Singapore’ concentrates on other strategies rather than thinking of designing the advertisements for their promotions
Even though the wholly owned strategy will be risky for a new country, yet ‘Taste of Singapore’ will adhere to the wholly owned strategy (Krishna 2012). However, there will be a partnership between two chefs in Singapore. They will be operating the business together but would not go into a joint venture with any company in Vietnam. They will be at gain because two people will share the profit as well as the loss (Peck et al. 2013). As they do not have a strong idea about the restaurants present in Vietnam, hence they would not think of collaborating with any of the Vietnamese restaurant. If they collaborate with any of the restaurant, then they have to include ideas that will be given by the worn of another restaurant. They mainly want to spread the culture of Singapore in Vietnam. If the business is not successful, then they can think of a joint venture later to enhance their business (Shimp and Andrews 2012). Not many Singaporean restaurants are operating in Vietnam and ‘Taste of Singapore’ would like take the advantage of this situation to set up their business in the country (Halinen 2012).
Conclusion
After going through the environmental analysis, marketing techniques and tools that could be used by ‘Taste of Singapore’ and the market entry strategies, it can be concluded that the market conditions of Vietnam will be favourable for ‘Taste of Singapore’. The government of Vietnam is taking special interest in the food industry and the food exhibitions are helping the new companies who want to come to the country for business purpose. The sudden boom in the food industry in Vietnam will be helpful as well as challenging for ‘Taste of Singapore’. They will get good opportunities but the competition will also rise accordingly. It has been seen that there are restaurants that serve Singaporean dishes. However, the numbers of such restaurants are comparatively lesser. ‘Taste of Singapore’ would be taking the opportunity to spread their business in Vietnam. The marketing tools and techniques that should be applied by ‘Taste of Singapore’ will be adding value to the products, bringing in changes in the restaurant, act as the resource centre and give the customers the feeling that they are entering a Singaporean restaurant in Vietnam. Moreover, telling the customer about the nutritional value of the food can also be a part of marketing techniques. ‘Taste of Singapore’ will make use of the waterfall strategy to enter Vietnam and it will be a wholly owned business without any joined venture with any of the restaurant in Vietnam. However, two chefs will be the owners of ‘Taste of Singapore’ who hail from Singapore. The social media and internet will also help in market entry strategy. Software like Autosend, Oktopost and Canva will help them reaching the customers online and create advertisements without consuming much time.
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