evaluate effectiveness of customer service activities in increasing sales for kichi-kichi hot pot bar restaurant on 61 ma may street

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TABLE OF CONTENTS
INTRODUCTION 2
Chapter 1: Introduce Golden Gate Trade & Service Joint Stock
Company and Kichi-Kichi Hot Pot Bar restaurant and their problem 3
1. Company and Kichi-Kichi hotpot bar restaurant system 3
2. Issue 8
3. Research questions 8
4. Research methodology. 8
5. Research scope 8
Chapter 2: Theoretical framework 9
1. Customer care or customer service definition 9
2. The importance of customer service to business 9
3. Requirements on customer service 15
Chapter 3: Analysis and Finding 20
1. Define position of Kichi-Kichi hotpot bar on market 20
2. Overview of Kichi-Kichi Ma May problem. 23
3. Customer service activities at Kichi-Kichi Ma May-Evaluate customer
satisfaction rate 24
Chapter 4: Recommendation 31
1. Orientation of marketing in 2010: 31
2. Some proposals to increase sales for Kichi-Kichi Ma May: 32
CONCLUSION 34
APPENDIX 35
1. Comment card: 35
2. “Eat 5 Free 1” leaflet: 35
REFERENCES 35
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INTRODUCTION
Eating out is popular more and more every day in every country. Consequently,
restaurants mushroom in all kinds and forms. Alone in the United State, it is

expected that this kind of business can reach return at about USD 577 million in
2010 (Art of restaurant business_Entrepreneur). Viet Nam is not an exception.
Several years up to now, the mushroom growth of restaurants can surprise anybody.
Because of profit objective, businesses try to attract customer by all means. Thus,
restaurant business is now more competitive than ever. Thus, to get success in this
hard industry, it asks for the combination of many factors and among them,
customer service plays an important role. In the service sector, customer satisfaction
is a decisive factor with the existence of a business. Golden Gate is a typical
company in restaurant business, and customer service is its priority care. Thus, in
this study on the topic “Evaluate effectiveness of customer service activities in
increasing sales for Kichi-Kichi hot pot bar restaurant on 61 Ma May street”
writer will focus on analyze and evaluate the effects of customer service activities
used in Kichi-Kichi hot pot bar restaurant on 61 Ma May from Golden Gate from
flotation up to now, and from that point of view, I will offer some proposals in order
to improve customer service policy of company. To do these tasks, descriptive
method will be used to collect all information, and then statistic method to analyze
them.
This essay will be divided into four main chapters:
Chapter 1: Introduction of the company with their problem.
Chapter 2: Theoretical framework
Chapter 3: Analysis and Finding
Chapter 4: Recommendation
Because this is the first time apply marketing theory to build marketing
orientation for Kichi-Kichi restaurant, essay will not avoid some mistakes. Writer is
looking forward to contributions and directions so the research will be better.
The writer has the honor of expressing deep gratitude to Mrs. Pham Thuc Anh
who whole-heartedly gave directions.
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Chapter 1: Introduce Golden Gate Trade & Service Joint Stock
Company and Kichi-Kichi Hot Pot Bar restaurant and their problem.

1. Company and Kichi-Kichi hotpot bar restaurant system.
• Name: Công ty Cổ phần Thương mại và Dịch vụ Cổng Vàng
• International name: Golden Gate Trade and Service Joint Stock Company.
• Address: floor 4, Anh Minh building, 36 Hoang Cau street, Ba Dinh district,
Hanoi.
• Phone: 35 149 837
• Fax: 37 226 755
• Total staff: over 500 staffs.
• Company structure:
• List of Kichi-Kichi Hot Pot Bar restaurants in Hanoi:
Name Location Foundation
date
Phone
number
Kichi-
Kichi
1
st
floor, Big C, 222 Tran
Duy Hung str., Cau Giay Dist
02/2009 04 37868424
4
Kichi-
Kichi
1A Tang Bat Ho str., Hai Ba
Trung Dist
06/2009 04 39727598
Kichi-
Kichi
5

th
floor, Vincom city
Tower, Hai Ba Trung Dist
10/2009 04 39748334
Kichi-
Kichi
101-B1 Pham Ngoc Thach
str., Dong Da Dist
10/2009 04 35739127
Kichi-
Kichi
106 Yet Kieu str., Hai Ba
Trung Dist
11/2009 04 39412321
Kichi-
Kichi
40 Ton Duc Thang str.,
Dong Da Dist
12/2009 04 38489420
Kichi-
Kichi
105 D5 Nguyen Phong Sac
str.
12/2009 04 62690676
Kichi-
Kichi
61 Ma May str., Hoan Kiem
Dist
01/2010 04 39264958
Kichi-

Kichi
241 Nguyen Trai str., Thanh
Xuan Dist
02/2010 04
35578845
Kichi-
Kichi
17 T4 Trung Hoa Nhan
Chinh, Cau Giay Dist
03/2010
04 62510481
Kichi-
Kichi
106 H1 Lang Ha str. 04/2010
• List of Kichi-Kichi restaurants in Hai Phong city:
Name Location
Foundation
time
Phone
number
Kichi-
Kichi
Floor 1, 4 Nguyen Trai str.,
Ngo Quyen Dist
5/2009 031 3552882
• List of Kichi-Kichi restaurants in Ho Chi Minh City:
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Name Location
Foundation
time

Phone
number
Kichi-
Kichi
SC 3-1 Grand view, Nguyen
Duc Canh str., Phu My Hung,
Dist 7
07/2009 08 54119797
Kichi-
Kichi
19 Phung Khac Khoan str.,
Dist 1
08/2009 08 38277345
Kichi-
Kichi
11 Tu Xuong, Dist 3 10/2009 08 39325880
Kichi-
Kichi
11 Cong Truong Me Linh,
Dist 1
11/2009 08 38239997
Kichi-
Kichi
Lotte Mart, 5
th
flr, 940B 3/2
str., Ward.15, Dist 11
08 22251019
Kichi-
Kichi

736-738 Dien Bien Phu str. 08 39381075
Kichi-
Kichi
161-163 Calmette, Ward
Nguyen Thai Binh, Dist 1
08 39153125
Kichi-
Kichi
48 Nguyen Chi Thanh,
Ward.2, Dist 10
08 39381085
Golden Gate Trade & Service Joint Stock Company is a foreign invested
company operating and managing luxury restaurants. We are proud of our unique
products, beautiful restaurants and hospitality service. Golden Gate is one of the
first companies in restaurant business with its famous brand name Ashima.
Ashima is a restaurant system specializing in Mushroom Hot Pot. Currently there
are 7 units throughout the country centered on Ho Chi Minh and Hanoi with one
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unit in Haiphong. The first Ashima Restaurant opened for business on the 3rd
November 2005 on 44 Phan Dinh Phung Street, Hanoi. Ashima mushroom hotpot is
considered to be not only the first but also the best chain of restaurants in Vietnam
specializing in mushroom hotpot. The chain now has 7 restaurants in total and can
be found in all the major cities of Vietnam, such as Ho Chi Minh City, Hanoi and
Haiphong. Ashima mushroom hot pot was opened with the intention of bringing to
the Vietnamese people a new concept of eating, combined with specialized service.
This has created a “mushroom wave” in Vietnam.
Ashima aims to be the number one in the restaurant business. It focuses on
quality of food and service, not only in domestic, but also in foreign markets.
Natural mushroom hotpot has helped Ashima to achieve the distinction of being the
most professional in the food service industry. Ashima understands fully that the

only way to survive and develop with one kind of product is to be the best. So far,
Ashima has kept to this strategy and strongly believes that it is the right way to go.
Ashima aims to be the first choice for the customer when they think of mushroom
hotpot. Or we can say it slightly differently, “It is the objective of Ashima to always
bring the highest quality food and service to the customer and keep an image in
their mind that Ashima is always the best”.
Serving more than twenty kinds of mushroom and five broth tastes, Ashima is
not famous for its rich nutritional value food but also for its original service manner.
The unique product and service of this new restaurant model resulted in the chain
expanding to 7 restaurants in 4 years. In addition, the restaurants are invariably full,
especially at weekends. That is the major reason why Ashima now is considered as
the leader in the mushroom hot pot market. The Ashima system, with more than
1000 staffs in 7 restaurants currently, is the largest full scale restaurant chain in the
country and also has the most impressive revenue per store in Vietnam.
In 2009, company started running a new kind of drinking and service: Kichi
Kichi hot pot bar with target is fast food market segmentation. With price at about
USD 6 each person and the slogan “eat as much as you can”, Kichi-Kichi receives
warmly welcome from urban customers.
The idea of a hot pot bar came from sushi bar invention in Japan and promptly
spread out to Thailand, Singapore, Hong Kong, etc. And the pioneer who initiated
hot pot bar trend in Viet Nam is Kichi-Kichi. It’s very easy to have a meal in Kichi-
Kichi. Customers just have to buy an opening-seat ticket, chose for themselves their
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favorite broth taste, and enjoy delectable food until full. Owning unique
characteristics of both the traditional and the modern eating and drinking style,
Kichi-Kichi brings to you not only a meal but a cultural space, a new style.
This chain of restaurants provides customers with the variety of options for
dinning out. Instead of cooking so many dishes to satisfy every member’s demand,
people now just need to go to Kichi-Kichi hot pot bar restaurant. Here, people can
choose any among hundreds of dishes on non-stop moving bar that please not only

who love fast food but also traditional customers. You like pork or beef, vegetable
or sea food? Whatever you want, whatever you are interested in, you will be best
served in Kichi-Kichi restaurant. Especially, if you have a passion with Japanese
cuisine, you will pleasure with delicious sushi and other Japan food cooked by
talented cooks. Sake is a favorite wine in Kichi-Kichi restaurant. In the case you are
not interested in alcohol, fizzy drinks may be your choice. There are six tastes of
broth consist of Thai or Sichuan, or Korea style for whom love sea food or peppery
food, Japan style, mushroom broth for people whose taste is vegetable, Shabu broth
is the perfect choice for any food. After dinning, you can order ice-cream or fruit
for dessert.
All the waiters and waitresses in Kichi-Kichi are young, sympathy, friendly,
brisk, and good-mannered, and always ready to serve fellow dinners.
Besides, the architecture of Kichi-Kichi restaurant is unique. Space is
commodious, design is youthful. All inspire people about dynamic and creative
youth. Along with clear and bright stone-tables, high seats make opulent feeling.
The bars are in front of table, move with speed at twenty five dishes per minute, fast
enough to not have to wait and slow enough for anyone not to miss any dish. There
are red ceiling bands which are installed parallel with the moving bar. You can find
a red bar above any bar. The idea of red ceiling bars is based on Eastern people;
especially Vietnamese people’s conception that red is the color of luck and pleasure.
These red ceiling are a symbol of good luck to customers from company. Red is
also preponderant color that makes impression of a space full of vitality. Another
design which is remotely related to traditional conception is rectangle mirrors
covering wood walls. They are all high enough for anybody’s image not to be cut.
At the same time, they cause restaurant area seems to be enlarged.
Specific characteristic of Kichi-Kichi is it represents an image of young,
dynamic, independent, modern, and creative. Kichi-Kichi customers initiatively
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make their own menu. Hot pot bar makes customers feel that they hold the
initiative, taking favorite food is alike taking opportunities in life. This is an eating

and drinking style of youth, a style of modern Asian – always move and ceaselessly
discover. Kichi-Kichi infused a fresh spirit and diversified Vietnam eating and
drinking culture.
2. Issue.
From flotation, this chain of restaurant had good sales and received warmly
welcome from urban customers because of it freshness. However, just after several
months after opening, amount of customers go down gradually. This matter happens
most seriously in Kichi-Kichi restaurant on 61 Ma May (Kichi Ma May).
3. Research questions.
In this essay, researcher will focus on studying reasons caused that decrease in
the aspect of customer service; and then give some proposals for sales increasing.
4. Research methodology.
Research information are collected by descriptive and observation methods. All
the statistics are total up from customers commend cards which were drawled to
table companions in all Kichi-Kichi restaurants on Hanoi market during 2009.
These cards are dispensed to customers after their meal by waiters in each restaurant
and then gathered in Marketing Department each Monday. Collecting, reckoning
up, comparing these figures will help me evaluate the effect of marketing strategy in
customer care. Data of revenue and business cost are provided by Accounting and
Marketing Departments. Researcher studied customer behavior with restaurant
promotion program by observing at restaurant and supervising leaflet distribution in
the road show around the Old Quarter and buildings.
5. Research scope.
This research will just customer service activity applied for Kichi Ma May
because I got familiar with it during my internship time.
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Chapter 2: Theoretical framework
1. Customer care or customer service definition.
Customer service is the provision of service to customers before, during, and
after a purchase. According to Jamier L. Scott (2002), “Customer service is a series

of activities designed to enhance the level of customer satisfaction – that is, the
feeling that a product or service has met the customer expectation."
In opinion of customer A, customer service can be a high quality product with
suitable price. However, customer B can consider it on-time delivery while
customer C measures it through service attitude of staffs. In fact, a huge range of
factors can contribute to customer satisfaction, but your customers - both consumers
and other businesses - are likely to take into account: how well your product or
service matches customer needs; the value for money you offer; the
professionalism, friendliness and expertise of your employees; how well you keep
your customers informed; and the after-sales service you provide.
2. The importance of customer service to business.
Customer service is normally an integral part of a company’s customer value
proposition. Every time you have contact with your customers you have an
opportunity to improve your reputation with them and increase the likelihood of
further sales. From the point of view of an overview sales process engineering
effort, customer service plays an important role in an organization's ability to
generate income and revenue. From that perspective, customer service should be
included as part of an overall approach to systematic improvement.
Customer often measures a business on the service that they experience both pre-
sale and after-sale.
Your sales and profitability depends on keeping your customers happy. Thus, the
goal of customer service is customer satisfaction. Customer satisfaction is what
customer feels subjectively and sometimes irrationally. There is all difference
between a customer ‘being satisfied’ and being ‘not dissatisfied’. Most businesses
would be quite happy if their customer scored them 5 or 6 out of 7 on satisfaction.
When ordering a new service or maintaining an existing service, consumers must
take into account the following three key factors: the quality of the service, the price
of the service, and the customer service of the service provider. The first two factors
are relatively objective and usually easy to control. As shown by Figure 1, the
graphical representation of a market research study done a few years ago, customer

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service dissatisfaction is the most important key factor when a consumer decides to
change service providers.
Figure 2: Reasons for Switching to another Vendor
Although product or service company provides is already familiar with the
market or the company is consider as the pioneer or predecessor in one business
sector, it has to prioritize customer service activity. Many businesses spent millions
of dollar on advertising to attract customer, they failed, however, just because they
do not have any or have a poor customer service activity. Customer service plays an
important part in keeping existing and making loyal customer, attracting potential
customer, thenceforth helping company reduce cost and increase turnover.
 Keeping existing and making loyal customer
Firstly, customer service is an effective tool in keeping existing and making loyal
customer. Generally, customer is divided into two kinds: existing and potential
customer.
Retaining existing customers mean making them keep buying company product
or service. Excellence in customer service, using of the idea of relationship
marketing, can help your company retain customers. Relationship marketing
focuses on getting customers and keeping them in longer term using a combination
of marketing, quality, and customer service. It plays an important part in keeping
customers. It means they are less likely to go to your competitors in the increasingly
competitive markets where customers have more choices than ever. As satisfied
customers, they will recommend you to other, resulting in an increase in new
business. It is said that it costs up to ten times as much to win a customer than to
keep an existing one. When being satisfied, they are less likely to tell other people
of bad experiences. Customers experiencing poor service are likely to tell up to
twenty people about their experience, which is not good advertisement for your
business. This may deter other from even trying you out, and so you will not get a
chance to impress them, even with the best or most innovative products and
services. By focusing your attention on your customer that has the highest potential

lifetime value, you can improve profitability. Your staff will have a “feel good”
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factor because of the environment and atmosphere that lead to happy customer. This
can help to attract new customers over time.
In their book Rules to Break and Laws to Follow, Don Peppers and Martha
Rogers, Ph.D. write that “customers have memories. They will remember you,
whether you remember them or not." Further, "customer trust can be destroyed at
once by a major service problem, or it can be undermined one day at a time, with a
thousand small demonstrations of incompetence”. All the customers want to receive
the highest attention from supplier, want their supplier considers their demand as
the top priority. Only the fastest and most effective service can satisfy customers.
Once companies provide an excellent customer service, they can retain their
customer and make them loyal. These loyal customers help company retain a fixed
income and even make more profit because when customers are pleasured, they will
buy not only more but more regular. Existing customer relationships are
opportunities to increase sales because your customers will already have a degree of
trust in your recommendations. A study by United State Management Association
shows loyal customer account for 65 percent of company total proceeds (Nguyen
Thac Minh), especially in price sensitive market or market that exist similar
products and service. If you currently retain 70 percent of your customers and you
start a program to improve that to 80 percent, you'll add an additional 10 percent to
your growth rate. The more the number of your frequent customer, the less cost you
spend on advertising and marketing.
Information collection is the core phase in “loyal-making” process. By studying
existing customer information, you can find business opportunities, customer
categories and their demand. Once having a firm grasp on hobbies, behavior of your
best customers, you can build marketing campaigns aim at potential customers who
have similar characteristics. In business-to-business trading, providing a high level
of customer care often requires you to find out what your customers want. Once you
have identified your most valuable customers or best potential customers, you can

target your highest levels of customer care towards them. Another approach,
particularly in the consumer market, is the obligation to treat all consumers to the
highest standard. Information about your customers and what they want is available
from many sources, including their order history; records of their contacts with your
business such as meeting, phone call, and so on; direct feedback - if you ask them,
customers will usually tell you what they want; changes in the overall success of
specific products or services; feedback about your existing range - what it does and
doesn't do; enquiries about possible new products or services; feedback from your
customers about things they buy from other businesses; changes in the goods and
services your competitors are selling; feedback and referrals from other, non-
competitive suppliers.
While good overall service is the best way of generating customer loyalty,
sometimes new relationships can be strengthened or old ones refreshed, using
customer loyalty schemes. These are programs that use fixed or percentage
discounts, extra goods or prizes to reward customers for behavior that benefits your
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business. They can also be used to persuade customers to give you another try if
you feel you have successfully tackled past problems with your customer service.
You can decide to offer rewards on the basis of repeat custom, cumulative spend,
orders for large quantities or with a high value, prompt payment, length of
relationship. You can also provide key customers with loyalty cards that entitle
them to a discount on all their purchases.
Particularly because of the high cost of landing new customers versus the high
profitability of a loyal customer base, you might want to reflect upon your current
business strategy.
These four factors will greatly affect your ability to build a loyal customer base:
• Products that are highly differentiated from those of the competition.
• Higher-end products where price is not the primary buying factor.
• Products with a high service component.
• Multiple products for the same customer.

Reach Out To Your Customers! Contact . . . contact . . . contact with current
customers is a good way to build their loyalty. The more the customer sees someone
from your firm, the more likely you'll get the next order. Send Christmas cards, see
them at trade shows, stop by to make sure everything's okay. Send a simple
newsletter to your customers-tell them about the great things that are happening at
your firm and include some useful information for them. Send them copies of any
media clippings about your firm. Invite them to free seminars. The more they know
about you, the more they see you as someone out to help them, the more they know
about your accomplishments-the more loyal a customer they will be.
Building customer loyalty will be a lot easier if you have a loyal workforce-not at
all a given these days. It is especially important for you to retain those employees
who interact with customers such as sales people, technical support, and customer-
service people. Many companies give a lot of attention to retaining sales people but
little to support people. I've been fortunate to have the same great people in
customer service for years-and the compliments from customers make it clear that
they really appreciate specific people in our service function.
Employees who deal with customers' orders should be fully aware of current
offers and keep customers informed. Sometimes brochures and other marketing
materials are the best way of getting word out about a new customer incentive.
Don't forget though that your customers' view of the overall service you provide
will influence their loyalty much more than short-term rewards will.
 Attract new customer
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Loyal customers are so important to every business. However, to exist and
develop in this competitive environment market, business must try its best to win
new customers. The first step to attracting new customers in any economic climate
is pleasing your regulars because the word-of-mouth buzz you gain from them will
be a huge boon in attracting new business. Getting close to your regular customers
in an economy that is tough for both of you may involve offering longer warranties
and easier return policies on products, or special deals and discounts for your most

valued patrons. Your customers have to bear with bad economic times just as much
as you do. It is so clever to let them know you're in it together by reaching out to
them and making your relationship as hassle-free as possible. Show some empathy
and you'll receive it in return. Satisfactory customers will tell others about excellent
service you provide that is more effective and trustworthy than anything you
advertise or broadcast on public media.
Next, you could reach your target groups by some direct means such as sales
promotion, meeting, and free consultancy, etc. have function is to provide new
customers with more information about company as well as product and service,
along with gain sympathy and trust from potentials. To begin with, you have to let
people know you exist – advertise yourself. If people don’t know where you are and
what you do, they can’t buy from you and you will never make enough money to
stay open. Advertising greatly increases your chances of success if you know who
your customer is. Then you can tell them what they want to hear. However, good
advertising techniques are useless without an effective message. An effective
message gives people reasons to spend their money with your business. Explore
various types of traditional advertising methods such as classified ads, yellow page
ads, television and radio spots, and display ads in magazines and on other Web
sites, go with what meets your budget and best reaches your target group. Whatever
type you chose, you must make five important decisions when developing an
advertising program: setting advertising objectives, budget, message, media, and
finally, evaluate the result.
Figure 3: Major advertising decisions
Objective setting
Communication
objectives
Sales objectives
Budget decisions
Affordable approach
Percent of sales

Competitive parity
Objecives and task
Message decisions
Message strategy
Message execution
Media decisions
Reach, frequency, impact
Major media types
Specific media vehicles
Media timing
Campaign
evaluation
Communication
impact Sales
impact
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Advertisers should set clear objectives as to whether the advertising budget is
supposed to inform, persuade, or remind buyers. The advertising budget is based on
what is affordable, on a percentage of sales, on competitors’ spending, or on the
objectives and tasks. The message decision calls for defining reach, frequency, and
impact goals; choosing major media types; selecting media vehicles and scheduling
the media timing. Finally, advertising evaluation calls for measuring the
communication effect and measuring the sales effects of advertising before, during,
and after the advertising is placed.
There are a number of free or nearly free ways to advertise your business or
service. You could rely on word of mouth. Sure, that does not cost anything, but it
might take a long time before word spreads. A second inexpensive method would
be flyers. You could print out flyers at your local print shop and distribute them
throughout your area by putting them on cars or in mailboxes. This method can be
very effective for certain business, but the effect does not last long. Chances are the

person will take one look and throw away the flyer. Hopefully, the flyer will be
memorable enough that they remember your business' name. A third relatively
inexpensive advertising method is newspaper advertisements. You could place a
small ad that runs for a few weeks in a few local newspapers. This will give you
great exposure to your selling area. However, the ads do not run forever unless you
want to keep paying. An effective way to advertise that has a relatively low initial
cost is with sales promotion. Sales promotion covers a wide variety of short-term
incentive tools such as coupons, premiums, contents, buying allowances that are
designed to stimulate consumers, the trade, and the company’s own sales force.
Sales-promotion spending calls for setting sales-promotion objectives, selecting
sales-promotion tools, developing, presenting, and implementing the sales-
promotion programs, and evaluating the results.
In the sales promotion strategy, promotion products are a difficult question to
many businesses. What are promotional products? Promotional products are items
as diverse as pens, golf balls, bags, key chains, shirts and coffee mugs that proudly
display your company's name and information. Sure, the initial cost is more than
using flyers or newspaper ads, but, unlike the other methods, the promotional
product makes a lasting impression. Every time some uses your pen, drinks coffee
from your mug or wears your polo shirt, they will immediate think of your
company's name. Then when they are ready to make a purchase, your company's
name is at the top of their mind. Not only are you helping people remember your
company's name, but you're also giving your potential customers something they
can actually use. With the right promotional product, a small business owner will
see a great return on their investment.
 Reduce cost and increase sales
Good customer service can help company reduce cost. It is true. When customers
aren't happy with your business they will complain. They, however, usually won't
complain to you - instead, they'll probably complain to just about everyone else they
know and take their business to your competition next time. As a result, you have to
find solution to solve the trouble, and that task costs your budget. On the other

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hand, as mentioning above, satisfactory customers easily become loyal customers,
and so you will save budget for attracting new users.
Customer care is a tool increases your sales promptly. Your existing customers
are among the most important assets of your business - they have already chosen
you instead of your competitors. Keeping their custom costs far less than attracting
new business, so it's worth taking steps to make sure that they're satisfied with the
service they receive. There are a number of techniques you can employ, including:
• providing a free customer helpline
• answering frequently asked questions on your website
• following up sales with a courtesy call
• providing free products that will help customers look after or make the most
of their purchases
• sending reminders when services or check-ups are due
• offering preferential discounts to existing customers on further purchases
Existing customer relationships are opportunities to increase sales because your
customers will already have a degree of trust in your recommendations.
Cross-selling and up-selling are ways of increasing either the range or the value
of what you sell by pointing out new purchase possibilities to these customers.
Alerting customers when new, upgraded or complimentary products become
available – perhaps through regular emails or newsletters - is one way of increasing
sales.
To retain your customers' trust, however, never try to sell them something that
clearly doesn't meet their needs. Remember, your aim is to build a solid long-term
relationship with your customers rather than to make quick one-off profits.
Satisfied customers will contribute to your business for years, through their
purchases and through recommendations and referrals of your business.
3. Requirements on customer service.
Customer service is the lifeblood of any business. You can offer promotions and
slash prices to bring in as many new customers as you want, but if you cannot get

some of those customers to come back, your business won’t be profitable for long.
Good customer service is all about bringing customers back. And about sending
them away happy, happy enough to pass positive feedback about your business
along to others, who may then try the product or service you offer for themselves
and in their turn become repeat customers.
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If you’re a good salesperson, you can sell anything to anyone once. But it will be
your approach to customer service that determines whether or not you’ll ever be
able to sell that person anything else. The essence of good customer service is
forming a relationship with customers, a relationship that individual customer feels
that he would like to pursue.
For all these above reasons, a business’s top priority task is a good customer
service. How to deliver a good customer service?
Firstly, be up front, even bold, in stating how your goods or services make things
better for your customers, so that they can make a decision about whether to ask for
more information. This respects their time and attention by answering the question,
"What can you do for me?"
Secondly, be clear about what it takes for you to deliver consistent value. How
much time? How much money? How much energy? What kind of commitment?
What support? What resources? What else? When you know what you need in order
to deliver good customer service, set your prices, policies, and procedures
accordingly and make it easy for your customers to understand them.
Moreover, you should show up in your business. Use language, imagery, colors
that are consistent with the way you naturally serve your customers. It's almost
certain that lots of people do what you do and do it as well or better. However, it is
highly unlikely that anyone else relates to their customers and serves them quite like
you do. Make it easy for prospective customers to tell how well you're likely to fit.
Besides, offering a test drive is an important step. If you sell products, give
samples. If you sell services, give samples. What does that look like? An eight-page
special report, a newsletter, reprints of articles, audio of speeches or seminars. Keep

your eyes and ears and mind open, and your samples may add up to a product and a
new income stream.
And finally, make it easy for clients and customers to pay for your work. When
your just-right customer pays for a service, they are making a conscious
commitment to getting their money's worth. This makes it a lot more likely that they
will do what it takes to benefit from what you offer.
Customers often have assumptions about a business through their first impression
which usually come from advertising, company website, or even from staff
habiliment. These assumptions can be right or not. Quality customer service begins
with your employees. You need to care about staff’s attitude also because each staff
is a representative of your company. Remember 95% of elements that decide your
company reputation and sales depend on your sales people (Nguyen Thac Minh).
There are maybe hundreds of employees in a company, which means that there are
hundreds of representatives for it, and the problem is how it makes these employees
a consistent image which can express company’s business manner, vision, and
17
mission. Buyers can never meet company management; they often still score
company through these representatives.
To satisfy clients, you have to set them first. The first step is to set standards.
Then, make certain everyone in the company understands them. Finally, reward
employees for achieving your service goals. Seek out and solve any annoyances
they might have that could lead to poor morale. An employee with a complaint
cannot be completely effective in dealing with customers. If you take care of your
employees, they will take care of your customers. Hiring the best people means
trusting them. Your employees should be able to do what is necessary to make the
customer happy without fear of reprisal. Policies and procedures are helpful only as
guides toward an end result. When employees run out of possibilities to make the
customer happy, they must have the latitude to improvise to make it right. Most
employees operate in a state of fear that their own generosity with a customer will
be viewed as foolishness by their boss. This situation can stifle flexible customer

service.
Staying close to customer is a decisive factor to quality of a business’s customer
service. In the smartest companies, asking questions and listening carefully to the
answers is an important part of customer service. These firms train their employees
to focus on what the customer is saying, and then tailor products or services to meet
customer needs. Says one corporate executive, "Knowing what's on the customer's
mind is the smartest thing we can do." It is also cheaper than attracting new
customers. According to the Customer Service Institute, 65% of a company's
business comes from existing customers, and it costs five times as much to attract a
new customer than to keep an existing one satisfied. Losing a customer is even
more expensive. According to studies by the Technical Assistance Research
Programs Institute, 91% of unhappy customers will never buy again from a
company that has displeased them and will also voice their dissatisfaction to at least
seven other people. This responsibility to be receptive does not lie solely with your
employees, however. If you want your business to be successful, you must listen to
and talk with customers as well. There is no substitute for getting out "where the
action is" to learn from the customers themselves how you might serve them better.
The best business owners are not only committed to staying close to their clientele,
but also identify with them. They give their customers the level of service they
themselves would expect to receive. Moreover, a good relationship with customers
necessitates paying attention to every link in the distribution chain. That means
listening to everyone who helps get your products to market and asking them for
suggestions on improving your service. Be sure to take advantage of feedback from
employees, especially those whose everyday job is dealing with customers. They
can serve as tremendous reservoirs of information.
You have also to pay attention to the details. Many owners search for a special
touch that will make them stand out from the crowd. Discount coupons, longer
hours, home delivery or free coffee, for example, all show customers you want to
take that extra step to please them.
18

Some of the most effective "extras" are really very basic adages of conducting
good business, although customers are often surprised when they take place. These
include answering the phone by the third ring; treating customers respectfully and
courteously at all times; greeting them by name; promptly answering their questions
and, if you can't, getting back to them with an answer as quickly as possible; and
manufacturing high-quality goods that work the first time and keep working.
Customer service is definitely worth pursuing. It's no longer the domain of a few
clever companies that have made it synonymous with their names. No business,
whatever its size, can afford to take customers for granted, because it's without
question a buyer's market and becoming more so every day.
To succeed, you must give your customers what they want, not what you think
they want. And, as you never know who might eventually become a customer, that
means providing courteous, friendly service to your suppliers and others with whom
you come in contact, as well as current customers.
Critical to keeping customers happy is to understand them and the way they
think. For example, customers do business on the basis of emotional desire - they
want what they want when they want it. Customers also tend to gravitate toward a
company or group of people they like. And, most customers have a strong tendency
to stick with businesses with which they are familiar, and are slow to change buying
habits unless given a very good reason. An important key to serving customers well
is this - don't try to change them.
Here are five specific steps to help you take full advantage of the critical element
of customer care:
• Conduct your own survey. Profit from the ideas, suggestions and complaints
of your present and former customers. Talk and meet with your customers. Ask
questions. Learn their attitudes, what they want and what they dislike.
• Check employees' telephone manners periodically. This link is particularly
important for small businesses, as bad telephone handling can undermine other
constructive efforts to build a profitable enterprise.
• Rules such as prompt answering and a cheerful attitude of helpfulness are of

critical importance. Have someone whose voice is unfamiliar play the role of a
customer or prospective customer, preferably a difficult one.
• Make customer service a team effort. Use group meetings, memos, posters
and in-house publications to build customer consciousness throughout the
organization. Continually drive home the crucial rule that getting and holding
customers requires team play, and invite employee ideas.
• Extend your efforts after hours. It's the friendly feelings people have that
draw them to you and your business. Take advantage of the relaxed atmosphere of
19
social occasions or a neighborly chat over the back fence to turn friends into
customers, or to reinforce the loyalty of existing ones.
Monitor the quality of your services and products constantly. Satisfied customers
who spread the word about your business are the best source of new customers. Pay
attention to pricing, customer service, product availability and prompt delivery.
An important task of customer care is dealing with complaint from customers.
Every business has to deal with situations in which things go wrong from a
customer's point of view.
However you respond if this happens, don't be dismissive of your customer's
problem, even if you're convinced you're not at fault. Although it might seem
contradictory, a customer with a complaint represents a genuine opportunity for
your business:
• if you handle the complaint successfully, your customer is likely to prove
more loyal than if nothing had gone wrong
• people willing to complain are rare - your complaining customer may be
alerting you to a problem experienced by many others who silently took their
custom elsewhere
Complaints should be handled courteously, sympathetically and - above all -
swiftly. Make sure that your business has an established procedure for dealing with
customer complaints and that it is known to all your employees. At the very least it
should involve:

• listening sympathetically to establish the details of the complaint
• recording the details together with relevant material, such as a sales receipt
or damaged goods
• offering rectification - whether by repair, replacement or refund
• appropriate follow-up action, such as a letter of apology or a phone call to
make sure that the problem has been made good
If you're proud of the way you rectify problems - by offering no-questions
refunds, for example - make sure your customers know about it. Your method of
dealing with customer problems is one more way to stay ahead of your competitors.
20
Chapter 3: Analysis and Finding
1. Define position of Kichi-Kichi hotpot bar on market.
The first Kichi-Kichi restaurant was opened in Feb, 2009 and there are 22 units
over country up to now, and 11 units among them are placed in Hanoi. Target
customer is class B people who live in city, for example, Ho Chi Minh City, Hanoi
and other potential cities in Vietnam: Danang, Cantho, Nhatrang, etc. at the age
from 20 to 40. Company aims at administrative staff circle - accounts for about 20%
population, mostly in HCMC and Hanoi – who has tendency to go eating outside,
meeting with guest, colleague, friend, and family at lunch and dinner time; and who
is interested in a restaurant with clean environment, that is good at food and service,
that is convenient for their travelling, parking and the price is affordable.
HCM C
Population
Ha Noi
Population
Total Class B (20%)
7,200,000 6,400,000 13,600,000 2,720,000
Source: Statistic of VN Economy, 2009
Figure4: Market size
Quantity of Kichi-Kichi customer is about 100,000 people per month, accounts

for 3.6% market size. Possibility of market penetration is still very high, as long as
Kichi Kichi continues to open widely and guarantee to do what Kichi Kichi has
committed to customer.
Company also studied carefully major competitors: Cocaxuki in Ho Chi Minh
City and F1 in Ha Noi, analyzed 4Ps element, strengths as well as weaknesses of
both company and competitors, in order to from that point of view, marketers can
give opportunities and threats for Kichi-Kichi development. You can see the result
of that study in below tables.
Product Price Place promotion
Combine
between fine
dining and
conveyor hotpot.
But Cocaxuki does
not follow all you
can eat concept,
but pay by color of
average check is
130.000 VND/
person (included
VAT and drink)
located in big
cities such as
HCMC, Hanoi and
Haiphong, mostly
follow department
store – Parkson.
not have
promotion program
21

plate
Strength: Combination between fine dining and conveyor can meet various
demand of customer
Can utilize fine dining to diversify food menu of conveyor
Weakness: Not clear in brand positioning
Short conveyor
Food is not good at quality and diversification
Depend on quantity of department store’s customer
Source: Marketing Department
Figure 5: Competitor analysis: Ho Chi Minh City - Cocaxuki
Product Price Place Promotion
Combine
between fine
dining and
conveyor hotpot.
Pay attention to all
you can eat
concept in
conveyor hotpot
average check
119,000 VND/
person (included
VAT)
good location
for business and
advertising, Hanoi
city
free 1 dish of
New Zealand beef
for a month of

opening
Strength: As a follower, F1 does not take time to open new market
Not have to spend expense for R&D, marketing
Weakness: Also as a follower, customer would notice that and brand F1 would
be very hard to reach the leading position
Brand identity is not clean, not elegant
Source: Marketing Department
Figure 6: Competitor analysis: Ha Noi – F1
Researcher made a research in order to understand more Kichi-Kichi major
competitor in Hanoi – F1. After several times went eating at F1, researcher found
that beside F1 has advantages of a follower, it does not take time to open new
market and does not need budget for R&D and marketing as mentioning above, it
attracts customer by lower price and cooler room. However, it is not as creative as
Kichi-Kichi, everything made by Kichi-Kichi would be followed by F1 afterward.
Furthermore, customer cannot find any handmade dish such as sushi, sausage,
shrimp tempura, etc. In addition, waiters are unprofessional, just within ten minutes
22
researcher was asked for drink three times. From all these features, researcher
affirms Kichi-Kichi can be confident on its competitive power.
Brand positioning of Kichi-Kichi is “non-stop moving”, expresses an image of
modern, active and friendly youth. Kichi-Kichi builds impression of differences:
Conveyor of Kichi Kichi is started from sushi bar idea, but hotpot value added;
focus on conveyor as center of restaurant; eating hotpot, but buffet paying.
Developed by Ashima, a leading brand name in hospitability business, along with
its core competitive advantages including food is delicious; place are convenient;
space is comfortable; price is affordable; style and promotion are enjoyable; and
service is professional, Kichi-Kichi is confident of its ability to give customer
convenience, enjoyable cuisine style.
You can know more about Kichi-Kichi position on market and development
ability by studying SWOT model below:

Internal
Strengths Opportunities
Threats Weaknesses Negative
Positive
External
Create and lead the trend of all
you can eat conveyor hot pot in
VN
Consistence in branding
development
Focus on conveyor hot pot
Chain of many restaurants in
VN System of menu controlling
New product adding up fast
Fast speed of opening outlets
Officer has high demand of place
for lunch and dinner outside of
working place
Style of all you can eat is popular
in modern society
Despite of the world economic
crisis, demand of eating out is
still high in cities
Competitors appear and penetrate
KK market share
Appearance of new style that
more attractive than hotpot
conveyor
Short timing on the market (10
months), not enough for brand’s

strength yet, especially in
Hochiminh city – only 3 months
Model is easy to be copied Low
cost limits quality of food
Lean on the conveyor too much:
in case of broken, everything
will be stopped
Restaurants require strictly
controlling system, otherwise
the brand identity will not be
unique
23
Source: Marketing Department
Figure 7: SWOT model
2. Overview of Kichi-Kichi Ma May problem.
Kichi-Kichi Ma May was opened in January 2010, founded in a beautiful
location in the old quarter area.
Since flotation, sales of Kichi-Kichi Ma May is always much lower than other
units despite ideal characteristics come from a famous tourist area. Below table
shows total revenue of some restaurants in the first three months from opening.
Thus, we can compare growth rate between Kichi-Kichi Ma May and others.
Kichi-Kichi Revenue in first three months from flotation
(VND)
Vincom 2,987,328,500
Tang Bat Ho 2,631,484,000
Pham Ngoc Thach 2,599,085,060
Big C 2,505,310,500
Ma May 1,624,671,009
Source: Accounting Department
Figure 7: Revenue of Kichi-Kichi in first 3 months from flotation

The sales of Kichi-Kichi Ma May surprises everyone. A comprehensive research
was carried out to find a cure for this headachy trouble. The board of director judges
Kichi-Kichi place, the most important factor to the success of a restaurant, is wrong.
The Old Quarter is famous for traditional and modern eating and drinking along
with streets always crowded with tourists. This is favorable condition to restaurant
business. However, it seems not to be suitable with Kichi-Kichi. Firstly, target
customer of Kichi-Kichi is office staffs circle while buildings and offices in the Old
Quarter is quite far from Ma May Street. Consequently, that potential group doesn’t
even know the restaurant existence. If they want to have lunch at a Kichi-Kichi
restaurant, they will go to Kichi-Kichi on 1A Tang Bat Ho. Besides, there is no car
parking near restaurant. Thus, car driving customer has to pass a long distance from
car parking to have meal. Merchants, tourists and local people have custom to eat at
old, small, make ship shops on sidewalk. Secondly, it was the ideal condition of the
Old Quarter that causes trouble to Kichi-Kichi. There are so many restaurants and
bars in all kinds and forms strongly compete with the newcomer Kichi. A subjective
24
source of this fall is the lack of skillful employees. Most of customer there are
foreign traveler, so English is compulsory requirement to all employees or to
receptionist at least. According to researcher’s observation, English level of Kichi-
Kichi workers is very low, so they are often embarrassed whenever a foreign
customer appears. Sometimes, employees witness customer leave just because of
language difference.
To solve the problem, company need to make good its shortcomings and
overcome all obstacles and difficulties at once.
3. Customer service activities at Kichi-Kichi Ma May-Evaluate customer
satisfaction rate.
All the product and price policies at Kichi Ma May and other units are the same.
The first month of opening is the promotion month with price at about VND 99,000
excluding VAT per head. In addition, each customer will be taste for free a dish
Australia beef and fizzy drink and fruit and ice cream in dessert. Proceeds that

month were good. After opening month, stable price is VND 130,000 each serving
(exclude drink). In February, turnover is down VND 217,744,291 - from VND
794,322,400 to VND 576,578,109; the number of customer decrease from 3,394
people in January to 2,965 people in February.
- “Eat 5 Free 1” program:
For increasing in purchasing power, in the first half of February, company
applied a promotion program at Kichi-Kichi Ma May called “Eat 5 Free 1” which
will last on 15
th
, April 2010.
 Objectives of program are to increase turnover by 50%; attract new
customers to Kichi-Kichi Ma May, especially in lunch time.
 Mechanism of voucher delivery: There are two ways to deliver promotion
voucher to customer. Firstly, customer will receive a voucher when buy opening
ticket at reception room. Second way is based on leaflet. Voucher is printed on
about 10,000 leaflets distributing at building around the Old Quarter and at night
market area.
Schedule: 1
st
Feb-15
th
Mar: deliver voucher
From 9
th
Feb: validate voucher
25
15
th
Apr: close program
Expected voucher: 10,000 units

 Content of program: Cashier will put a seal for each ration on customer’s
voucher when they pay the bill. Once customer collect five stamps on his/her
voucher, cashier will gather that voucher and give customer a free helping at Kichi-
Kichi at lunch time. This program is not available for children ration.
 The voucher consists of two sides. Program name “Eat 5 Free 1” and logo of
Kichi-Kichi are printed on the front side. There are five blank square coupons to
add date, manager’s sign, and stamp; customer’s information including name,
email, telephone number; series number; and content of program on the other side.
 Management mechanism: In order to control and evaluate the effect of each
service channel, the series printing on voucher which is delivered at restaurant is
different from series printing on leaflet voucher. Only if the voucher has company
seal and expire date is that voucher considered valid. Restaurant manager will
resend these vouchers to Marketing and Accounting Department to monitor, collect,
expand customer base.
 Communication:
Stick banner on glass and put tent card on reception desk to draw customer’s
attention.
Organize a road show including five PGs who will ride bicycles around the Old
Quarter to introduce the promotion plan and deliver leaflets at buildings.
In the first period of campaign when vouchers are just delivered at reception
desk, the increase in customer quantity is negligible. Only when leaflet is
distributed, situation is better. However, if just aim at office area, it could not
produce the desired effect because significant characteristic in the Old Quarter is
full of merchants and tourists, office staff just is a very small proportion. Thus,
management determines special direction for Kichi-Kichi Ma May. Realize that
“Eat 5 Free 1” campaign is so fit for the Old Quarter inhabitants; company conducts
a second leaflets distribution along crowded streets including Hang Ngang, Hang
Dao, Cau Go, etc., and up to West Lake area. The writer takes part in this second