Faculty Of Business Individual Assignment Trung Nguyên Coffee.pdf

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FPT UNIVERSITY FACULTY OF BUSINESSINDIVIDUAL ASSIGNMENT

SPRING 2022

ASSIGNMENT COVER SHEET

Course Details

Subject Code: MKT318

Subject Title :

DIGITAL MARKETING

Lecturer’s Name : MR. LE PHUOC CUU LONGAssignment Details

Due Date : 27TH March 2021

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Student’s DetailsName: Nguyen Duc Thanh

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Table of Contents

A Concise History of Vua Cua...1

Issues of Vua Cua...2

Crisis of Vua Cua...3

Crisis Response...5

References...8

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This report is an analysis and review of King Crab's food communication crisisat the heart of the 2021 pandemic at a time when the development of King Crabrestaurants is on the rise in the F&B industry (ONLINE, 2021). This article willintroduce the development of the Crab King and present the problem causes thatcaused the crisis. Impact of the incident on stakeholder relationships such asshareholders, customers, and employees. At the same time, it shows how the brand'sskillful handling of crisis communication brings satisfaction to stakeholders and thestrong recovery of the company after the crisis.

A Concise History of Vua Cua

The journey to create meals is named happiness.

The first King Cua restaurant was in March 2016, (reserved, n.d.) in thepromised land of Saigon but at a time when the trend of the F&B industry ' Food andBeverage Service " is developing strongly throughout the past years in Vietnam. In theVietnamese market, the big companies in the food industry such as Jollibee and KFCare holding the fried chicken fast food supply chain in Vietnam. Besides the advantageof the sea route over 3,260km (Nguyen Nam,2022) especially for marine life, is a non-loss revenue source for businesses in Vietnam so it was a difficult problem to surviveand develop King Crab. But with a strong desire to revive the soul of Vietnamesecuisine in creative sauces, it gives customers a new perspective on how to prepareseafood while being westernized.

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When it comes to King Crab, people will immediately think of 12 differentspecially prepared sauces according to an exclusive recipe that has been researched(reserved, n.d.). The sauces result from interference from many cuisines in the worldfrom Asia to Europe. Taking the Vietnamese flavor as the central theme, King Crab hasput on a new unique, and diverse shirt with Vietnamese flavor after a long timeperfecting the sauces.

Not only providing diners with new experiences in sauce and seafood but KingCrab also wants to turn the moments when diners eat at the restaurant into the mostcomfortable moments with a cozy, luxurious and luxurious space. The best mostattentive service is possible.

With the motto of bringing happy meals and the principle of serious operation,Defective products are exchanged. King crab has created with guests a great trust.With great responsibility, King Crab also pays great attention to the origin and qualityof products in each stage of importing food ingredients clearly with a team ofexperienced purchasing.

Issues of Vua Cua

Dumplings 140k!!!

Unexpected incidents of food quality. Impact on customer relationships.The power of social platforms - Food reviewer. Impact on employeesImpact of the crisis on stakeholders

This has been a controversial issue at the heart of the Covid-19 season in 2021 inVietnam. There were mixed opinions about the product and the price of the 'dumpling'product of the King Crab store on the market at that time. There have been many

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loopholes in the food production process, which greatly affected the company'sreputation and relationships with stakeholders. However, CEO Doan Thi Anh Thuhandled this media crisis well to calm public opinion and more successfully createdmore trust for customers about king crab's products. Personally, I agree with KingCrab's handling of the crisis, frankly, admitting fault and offering compensation tocustomers.

Crisis of Vua Cua

A promising strategy of King Crab to enter the fast-food market such asdumplings and bread combined with the strategy of King Cua Bike to support mealsfor customers at the heart of the epidemic season in 2021. In simple days, that food canbe called a rare "savior" to help customers satisfy their cravings for street food. KingCrab has launched attractive dumplings at the price of nearly 40,000 VND for adumpling, which is not cheap, but customers are always ready to receive and enjoy.However, the product quality is not as expected. The dumplings are always met withcriticism from the "customer" stakeholders on a food review fan page with nearly700,000 members. Distributing articles, and product criticism are always updated,other social platforms are always around the issue and this crisis has been a focal pointfor news sites (The Shark Tank Brand was accused of being sold 4 Dumplings Pricedat 135k - 2 stars, n.d.) greatly affected a part of customers of King Crab. When thetrust of customers has been lost, it is very difficult to regain it if the solution of theCEO is not smart, it will cause many unpredictable consequences for the company.

The power of social platforms. The Internet is a virtual world where peoplehave the right to freedom of speech and action in moral terms. It always has both

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positive and negative sides, this report will clarify the negative side of the internetaffecting the food service industry. We can't deny that the power of social mediareviews, the 1 and 2-star reviews of some extremists without explanations have greatlyaffected the brand's reputation. King Crab' these bad reviews take a while to recoverfrom the 1.2-star reviews. This negative influence outweighs the good points from the4, 5-star reviews. Besides affecting the reputation and reputation of the business, italso affects the relationship with senior employees when those evaluations are alsoconsidered a KPI at work, so those extreme comments have influenced quite a bit.

We cannot deny the rapid development of the 4.0 era when short content andshort videos are on the throne. Food vlogs that attract a large number of viewers,combined with Food reviewers, have brought positive and negative aspects to productson the market. When consumers put their trust in culinary experts (Food Reviewer,2021), food reviewers have built and developed their own personal brands, thuscreating trust with their community of followers. The influence of Food reviewers onthe crisis of King Crab is quite large and more worrying when Vietnamese peoplespend more time on the Internet due to the influence of the Covid-19 pandemic. Eachperson spends an average of four hours a day using the Internet, in Vietnam there areabout 68.72 million internet users and 72 million users of social networking platforms,accounting for about 70.3% and 73.7% population of more than 97 million people(Digital Vietnam 2021 – We Are Social, n.d.)

The corporate crisis affecting investor relations is inevitable. When theinvestors in King Cua are famous people like Nguyen Anh Tuan (Will 356), theinfluence on the reputation of these individuals is there when the company was

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marketing its brand on the popularity of these individuals in the early days. invest.More importantly, King Crab has just successfully raised capital on the shark tankprogram (VTV, 2021) a few months when there was a quality problem with thedumpling product that had just been released on the market. Although it is not clearhow this crisis has had an internal impact on relations with investors.

Crisis Response

It can be seen that, the CEO of King Crab has used the criterion of good serviceas the key to solving the quality problem of products circulating in the market. CEODoan Thi Anh Thu stood up to apologize to customers and received all the errors in theproduction process of the business that gave customers a bad experience with theproduct. King Crab has clearly pointed out that the reasons for the poor quality ofdumplings are that of meeting the needs of consumers, they have applied machines tothe dumpling production line. To receive the sympathy of customers, King Crabquickly posted a notice on the recall and compensation of inferior dumplings onSeptember 5 and 6, 2021.

Not only did the CEO's representative apologize to customers, but on the socialpages of the restaurant, King Cua immediately posted an apology to customers for thisunintended food incident (King Crab - Articles | Facebook, n.d.).

King crab and respectful attitude to customers. CEO of King Crab – Ms. DoanThi Anh Thu directly commented below the post to explain and apologize to thecustomer. This move by King Crab shows that this business is extremely important tocustomer experience, even if only for a few single customers in a closed group. Not

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only that, but the CEO of Crab King also personally contacted this guest to apologizeand explain the unintended incident and send another product to compensate.

Besides, King Cua gave heroic sayings to dispel public opinion such as'smearing, deleting reviews is a cowardly job of businesses' If they want to becomebig, businesses should not blame customers or tends to force or ask customers toremove bad reviews. Instead, businesses need to look at their own mistakes to reviewand correct them." (CEO Doan Thu shared). These sayings have quickly created thereputation of the Cua King brand in the hearts of users.

The solution has shown the satisfaction of the stakeholders about the CEO's joband the stability of the brand after the crisis by using good communication strategies tolaunch promotions and recalled products defective products on the market. Thismethod of King Crab has helped the dumpling product not be boycotted but alsobecome more popular in the market and interest many people. The customer'ssympathy for the brand in solving the "seal" also helps customers to prioritize buyingproducts because they feel confident. And that belief has led to each consumer'sbuying decision. Although the action of King Crab is not too big of a problem, thebrand still shows the heart of a sustainable F&B business, building and going up frommistakes, towards the best experience for customers' consumption.

Conclusion

The king of crabs has handled the communication crisis according to the criteriaof respecting customers and frankly admitting mistakes from the food production stageof the business. From doing that, it can be shown that King Crab is a civilized businessthat respects customers and takes customer experience as a goal for its development,

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not intentionally hiding unexpected incidents. would like. The work of the Cua Kingbrand is remarkable and worth learning, especially at a time when the voice ofconsumers is becoming more and more influential thanks to the development of socialnetworks. brand and stakeholders are still connected and develop the company.Stakeholders' satisfaction with the enterprise's crisis handling can be seen through thecompany's post-crisis operations.

In any corporate crisis incident, silence or deliberate delay is an irresponsibleattitude, disrespecting customers, causing confusion and loss of trust for consumersand the community. Just focusing on advertising to regain the brand image shows thatthe business does not have an understanding of its customer file which can lead to abrand boycott.

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References

ONLINE, 2021. King of the Crab becomes the fastest-growing F&B today.

Retrieved from Vua Cua trở thành F&B tăng trưởng nhanh bậc nhất hiện nay - TuNiTrO Online (tuoitre.vn)

Reserved, n.d. About the king of crabs. Retrieved from Về Vua Cua - Vua CuaRestaurance

Nguyen Nam,2022. The geographical location of Vietnam's sea route.

Retrieved from Shark Tank Brand was accused of being sold 4 Dumplings Priced at 135k - 2 stars,n.d

Retrieved from Thương hiệu từng lên Shark Tank bị tố bán 4 cái bánh bao giá 135k 2sao

-Food Reviewer , 2021 . Reviews influence on restaurant reputationRetrieved from Vietnam 2021 – We Are Social , n.d. Analysis of Vietnamese Internet usebehavior

Retrieved from Digital Vietnam 2021 – We Are Social

VTV, 2021. King of crabs successfully raised capital at Shark Tank VietnamRetrieved from Shark Tank Việt Nam

Vua Cua - Bài Viết | Facebook, n.d. The Crab King's sincere apology on socialnetworks

Retrieved from: Vua Cua -Facebook

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