MARKETING MIX FOR PHO HIEN RESTAURANT

ANDREWS UNIVERSITY
GRIGGS UNIVERSITY
GLOBAL ADVANCED BACHELOR OF BUSINESS
ADMINISTRATION PROGRAM
CAPSTONE PROJECT REPORT
ANALYSIS AND RECOMMENDATIONS FOR
MARKETING MIX OF PHO HIEN
RESTAURANT
Group:
Nguyen Tien Hoang - 113545
Tran Hong Manh - 111868
Nguyen Thu Ha - 116275
Le Thi Dung - 117001
Supervisor:
MSc. Tran Dieu Linh
Hanoi 2014
Nguyen Tien Hoang
Tran Hong Manh
Nguyen Thu Ha
Le Thi Dung Page 2
ABSTRACT:
Competition is one of the most basic characteristics of the market. Therefore, the
operations of the market must follow competition rules. Businesses are constantly
competing each other to gain relative advantages over their competitors.
For effective competition, it would not be enough for a company to solve issues
about financial, productive and technological potentials but the necessary and vital thing
would be the company would properly organize and bring into full play the marketing mix
of the company, especially the one specializing in the business of marketing mix service
and system.
Pho Hien restaurant is a part of Pho Hien Hotel, a great and prestigious hotel in
Hung Yen city. With the advantage of the brand, Pho Hien is holding strong advantages to

catch the opportunity in the modern tendency to maintain its position. During the
internship at the Pho Hien restaurant, with the aim of developing restaurant business,
completely meeting customers’ requirements and promoting the competition of the
restaurants within Hung Yen city, we decided to select the topic “ANALYSIS AND
RECOMMENDATIONS FOR MARKETING MIX OF PHO HIEN RESTAURANT”.
The purpose of the report is to analyze the strengths and weaknesses of this restaurant in
the marketing field. From there, we will have a better overview and get the right strategy
to help Pho Hien become better.
We know that one requirement for a company’s marketing strategy is the ability to
manage all corporal target markets. Corresponding to each target market segment,
marketing mix strategies can be effectively implemented by changing the “Seven P
Formula” (product, price, place, promotion, people, physical evidence, and process) to
adapt to the developments and specific situations of the target market. This thesis is aimed
at mapping out marketing mix strategies suitable for the Pho Hien restaurant.
Nguyen Tien Hoang
Tran Hong Manh
Nguyen Thu Ha
Le Thi Dung Page 3
ACKNOWLEDGMENT
We would like to sincerely thank and express our gratitude whole-heartedly to our
academic supervisor and examiner Lecturer Tran Dieu Linh for her continuous help and
support throughout the whole project.
We would like to thank Mrs. Do Thu Ha for her guiding on the process of this
Capstone project.
We also take this opportunity to express a deep sense of gratitude to Pho Hien
restaurant and all staff for the support, valuable information and guidance us to complete.
STATEMENT OF AUTHORSHIP
We, Nguyen Tien Hoang, Tran Hong Manh, Nguyen Thu Ha, Le Thi Dung
confirm that this thesis has been composed by our group, and describes our own work,
unless otherwise acknowledged in the text.

If the paper has been authored by more than one person, we confirm that all parts
of the paper have been clearly assigned to the respective author.
This work has not been and will not be submitted for any other degree or the
obtaining of Griggs University or any other institution of higher education.
All sentences or passages quoted in this paper from other people's work have been
specifically acknowledged by clear cross-referencing to author, work and page(s). Any
illustrations which are not the work of the author have been used with the explicit
permission of the originator and are specifically acknowledged.
Nguyen Tien Hoang
Tran Hong Manh
Nguyen Thu Ha
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Signatures of capstone members:
Print name above
Signature Date
Print name above
Signature Date
Print name above
Signature Date
Print name above
Signature Date
Nguyen Tien Hoang
Tran Hong Manh
Nguyen Thu Ha
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ORGANIZATIONAL CONTACT INFORMATION
• Date of Application: 10th November 2013
• Organization Name: Pho Hien Restaurant
• Organization Address: 58 Pham Ngu Lao, Hung Yen city, Hung Yen Province
• Project Liaison Name: Ho Dai Vuong

• Project Liaison Title: Director
• Project Liaison Phone: 0988 749 888
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Tran Hong Manh
Nguyen Thu Ha
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TABLE OF CONTENTS
1. ORGANIZATIONAL DESCRIPTION 10
1.1 Over Look: 10
1.2 Mission: 10
1.3 Scope of work: 10
1.4 SWOT analysis 11
1.4.1 Strengths: 11
1.4.2 Weaknesses: 12
1.4.3 Opportunities: 13
1.4.4 Threats: 14
1.5 Department’s functions: 14
2. LITERATURE REVIEW 17
2.1 Overview on marketing: 17
2.2 The role of marketing in restaurants: 17
2.3 Definition of marketing strategy: 18
2.3.1 Marketing strategy in restaurants: 18
2.3.2 Market segmentation: 19
2.3.3 Target market: 20
2.3.4 Market differentiation and positioning: 21
2.3.5 Marketing mix: 22
3. METHODOLOGY 32
3.1 Data Collection: 32
3.2 Data Analysis: 32
4. ANALYSIS & FINDINGS 34

4.1 Marketing objectives and policies for the future of Pho Hien restaurant: 34
4.2 Segmentation, Targeting and Positioning: 34
4.3 Survey Result Analysis: 36
4.3.1 Question 1, 2 and 3: 38
4.3.2 Question 4, 5 and 6: 39
4.3.3 Question 7: 40
4.3.4 Question 8: 41
4.3.5 Question 9, 10 and 11: 42
4.3.6 Question 12: 43
4.3.7 Question 13 and 14: 44
4.3.8 Question 14 and 15: 45
4.3.9 Question 16: 46
4.3.10 Question 17: 46
4.4 Marketing Mix Analysis of Pho Hien: 47
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4.4.1 Product/Service: 47
4.4.2 Price: 50
4.4.3 Place: 51
4.4.4 Promotion: 52
4.4.5 People: 53
4.4.6 Physical Evidence: 55
4.4.7 Process: 57
4.5 Evaluation of Marketing Mix activities of Pho Hien: 60
4.5.1 Segmentation, Targeting and Positioning: 60
4.5.2 Product/Service: 60
4.5.3 Price: 61
4.5.4 Place: 61

4.5.5 Promotion: 62
4.5.6 People: 62
4.5.7 Physical Evidence: 63
4.5.8 Process: 63
5. RECOMMENDATIONS 64
5.1 Strengthening the organization of marketing models: 64
5.2 Marketing mix policy: 65
5.2.1 Segmentation, Targeting and Positioning: 65
5.2.2 Product/Service: 65
5.2.3 Price: 66
5.2.4 Place: 66
5.2.5 Promotion: 67
5.2.6 People: 69
5.2.7 Physical evidence: 70
5.2.8 Process: 71
6. CONCLUSION, IMPLICATION AND FURTHER STUDY OPPORTUNITY 72
6.1 Conclusion: 72
6.2 Implication: 72
6.3 Limination: 73
6.4 Further Study Opportunity: 73
7. REFERENCES 74
8. APPENDIX 76
A. THE CUSTOMER OPINION SURVEY ABOUT PHO HIEN RESTAURANT
(VIETNAMESE) 76
B. THE CUSTOMER OPINION SURVEY ABOUT PHO HIEN RESTAURANT
(ENGLISH) 78
C. THE INTERVIEW WITH MR HOANG QUANG HUY (VIETNAMESE) 80
D. THE INTERVIEW WITH MR HOANG QUANG HUY (ENGLISH) 81
Nguyen Tien Hoang
Tran Hong Manh

Nguyen Thu Ha
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LIST OF FIGURES, TABLES AND PICTURES
Figure 1.1 Organizational chart
Figure 2.1 Segmentation targeting strategy
Figure 2.2 The Marketing Mix
Figure 2.3 Levels of product
Figure 2.4 Promotion objectives
Figure 4.1 Competitor Analysis
Figure 4.2 Dishes
Figure 4.3 Staff assessment
Figure 4.4 Convenience of restaurant location
Figure 4.5 Party/Wedding reception organization
Figure 4.6 The facilities
Figure 4.7 Favorite foods
Figure 4.8 Why did you order a party at our restaurant?
Figure 4.9 Menu
Figure 4.10 The satisfied of customers about the cheapness of a party table
Figure 4.11 The reason to know Pho Hien restaurant.
Figure 4.12 Three levels of product
Figure 4.13 Diagram of departments in the restaurant and its function
Figure 5.1 Marketing department model
Table 1.1 The SWOT analysis of Pho Hien
Table 1.2 Table of staffing statistic
Table 4.1 Table of menu
Table 4.2 Soft drinks
Table 4.3 Price table
Table 4.4 Form of deposit
Picture 4.1 Chuong Pagoda
Picture 4.2 Dining room

Picture 4.3 Fire fighting system
Picture 4.4 Flower gate
Picture 4.5 Wedding room
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PROJECT FIELD:
Marketing
Research objective: Based on marketing theory and awareness, together with a scientific
approach, the authors have studied, analyzed and evaluated marketing situation at the Pho
Hien restaurant in order to point out some good points and limitations and come up with
some solutions aimed a perfect the marketing mix of the restaurant.
Research scope: Research scope: In this research, the authors studied marketing mix
activities for Pho Hien restaurant, using the “Seven P Formula”: product, price, place,
promotion, people, physical evident, and process.
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Tran Hong Manh
Nguyen Thu Ha
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1. ORGANIZATIONAL DESCRIPTION
1.1 Over Look:
Pho Hien Hotel is an older historic hotel, which has developed in a long time.
Since 2001, the hotel has put the restaurant system into the business activities. Initially,
the size and area restaurants are also quite limited. It often is not enough space to organize
and meet the needs of the conference or large-scale festivals. Therefore, in the beginning
2007, the restaurant has expanded business area, created the space with capacity up to 250
guests. The restaurant has a nice location in the city centre; this is food address for people
with beautiful space and good service.
1.2 Mission:

With a quick, professional, friendly, and clean facility, Pho Hien restaurant
commits to bring customers the satisfaction after stress and hours of work
1.3 Scope of work:
 The restaurant specializes in providing services and organizing banquets: parties,
birthdays, weddings.
 The restaurant always creates an environment, an organization, a service
professionally.
 The restaurant creates favorable conditions, strict management, completes the
outline plan.
 The restaurant implements the working mode, applies the appropriate form of
labor to improve the lives and incomes of workers and employees of the company.
 The restaurant foster and improves education level and professional for staff and
employees.
 The restaurant implements tax obligations to The State.
 The restaurant protects the company, protect the environment, and preserve social
order and security.
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1.4 SWOT analysis
Table 1.1 The SWOT analysis of Pho Hien restaurant
Strengths
Weaknesses
S1: Famous Brand
S2: Good Staffs
S3: Good Facilities
W1: Ineffective IT system
W2: Simple Organization Structure
Opportunities

Threats
O1: Good Location
O2: Tourism
O3: Income
T1: Fierce Competition
T2: Recession
T3: Substitute Products
1.4.1 Strengths:
S1_ Famous Brand: Pho Hien restaurant is a subsidiary of Pho Hien travel and
hotel Corporations Joint Stock that has always been the leading hotels in Hung Yen
province. Pho Hien restaurant is one of the first big restaurants with a long seniority. It
has experienced in area of restaurant business, and it has built a great brand, that many
people know and trust.
S2_ Good Staffs: One of the most important factors of restaurant service is having
good staffs. Besides the good price and a famous brand name, Pho Hien restaurant always
considers the benefits of customers, and they want to build a strong and good relationship
with those customers. Most of Pho Hien’s employees are people having a high
professional competence and many years of experience in the field of restaurant. New
staffs must be educated and known clearly their mission in work. Pho Hien restaurant has
a clear job description to determine what exactly to do for their duties, thereby bring the
best service to customers.
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Table 1.2 Table of staffing statistic
Total
27
Sex:
Male

Female
18
9
Level:
University
College
Vocational school
High school
4
5
8
10
Experience over 5 years
17
Professional skills in restaurant
27
There are 17 employees who have worked in Pho Hien restaurant for a long time.
All staff is people of Hung Yen province; since there they can create sympathy easily
among restaurant and customers. The degree is not really matter if they can work well.
S3_ Good Facilities: The restaurant has a large area of about 800m2; the parking
lot also wide with the area of 200m2. Besides that, the restaurant is located at the
crossroads so they have two facades. The restaurant repainted with two new paint colour
of white and yellow. It makes the restaurant space become more luxurious and modern.
Tables and chairs bring new renovations. Additionally, chandelier system, lighting device
are adequate with 4 large chandeliers and dozens of bulbs. Lighting equipment is
predominantly yellow and white to bring the cosy for restaurant space. At the large
banquet room, the restaurant also installed an air conditioning system includes four air
conditions for big banquet. The restaurant has a great investment in infrastructure in order
to improve its position. The image of the restaurant is enhanced and it will attract more
customers.

1.4.2 Weaknesses:
W1_ Ineffective IT system: Until now, Pho Hien restaurant has no official website
and social network to widely promoted, manage and collect the opinions from the online
customers. Because the business is still good, and due to the subjectiveness of the
restaurant so they has not yet developed this program. Customers cannot find information
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about restaurants, as well as promotions on the internet. They must to go to the restaurant
to retrieve information or call the restaurant.
W2_ Simple Organization Structure: Pho Hien restaurant has quite simple
structure; one person has to do a lot of work for a moment. Therefore, work efficiency is
not high. For example, business department has only one employee but he must do a lot of
work such as managing staffs, dealing with partner and customers, finding external
partners. Business staffs are not present at the restaurant; the other employees will have
difficulty in talking to customers about contracts and services. They can only provide
general information, not details. Customers often desire to be resolved quickly, therefore
they will not be satisfied, and they will probably go the other restaurants.
The scale of the restaurant is not big, and they want to save costs, waiters and
security guards must worry about hygiene issues such as clean the restaurant and parking
lot. This problem is not consistent, and it can be frustrating for staff.
1.4.3 Opportunities:
O1_ Good location: Pho Hien restaurant has a favourable location compared to
other restaurants. This location is near university area, factory area, and populated areas
where have a great number of population. Moreover, it also stays near the scenic and
historic sites, such as Ban Nguyet Lake, Tran Temple, Chuong Pagoda. It also has two
long facades which wide and airy, easy to see and observe, and it has a large area. If Pho
Hien restaurant take the advantage and opportunity to develop and improve of this
strength. It will be a leap of development potential for the restaurant.

02_ Tourism: Following (Ngo Van, 2011) Hung Yen city has many festivals,
scenic such as Mau Temple festival, Pho Hien folk festival. The city is promoting tourism
activities to promote the image of the land and people here to the local and foreign
tourists. It indicates that travel industry is always stable and development that leading to
favourable conditions for the catering service development. As a result, there will be
many tourists come here and they must have dietary needs.
03_ Income: According to Hung Yen city portal, the average of economic growth
rate from 2005 increased 17,68 % per year. The average income per capita is 20 millions
per year. Hung Yen is a young and dynamic city. Therefore, the demand in dietary needs
has increased.
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1.4.4 Threats:
T1_ Fierce competition: Today, the city has grown so much, many people move to
cities to do business. Catering industry is growing strong; many cafes are opened, the
diner are constantly appearing. Many great restaurants appear that enhanced competition
in the restaurant area such as Son Nam restaurant, Hung Thai restaurant.
T2_ Recession: Currently, the economy is growing slowly; prices are rising;
everything is expensive. These factors will limit the need for people to eat at the
restaurant.
T3_ Substitute Products: Human life is always busy; they want one meal with a
short time. There are many substitute products that can help them such as food in fast-
food restaurant, chicken rice and noodle soup in small restaurant. This is a very popular
alternative to dining in the city.
1.5 Department’s functions:
Figure 1.1 Organizational chart
Security
Waiters

Director
Deputy
Director
Culinary
Department
Accounting
Department
Frontline Worker
Business
Department
Cashiers
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Director:
• Director is person who have the highest responsible for all the company's
activities.
• Director has power to decide and direct the work of finance, budget revenues and
expenditures.
• Director signs the economic contract directly and investment business methods.
• Director and deputy director combined to make business plans, objectives and
strategies.
Deputy Director:
• Deputy Director can executive all job on behalf of Director when Director absent
or work far away.
• Deputy Director has the task that advices to the director in all matters relate to
the existence and development of the company.
• Deputy Director coordinates the activities of the restaurant and on behalf of the
restaurant to contact with the other sector outside, with the state agency to resolve

administrative work each day.
Culinary department: comprises two Head Chefs, three cook helpers, and one
dishwasher. This department provide directly dishes to customers according to customer
orders. Culinary department has responsible for checking inventory, listing the inventory
list and purchasing list to report the restaurant manager.
Accounting department: Specialized jobs as wages, documents, accounting records. His
job is calculating wages, invoices, accounting books. He manages the budget and
financial activities of the restaurant. Accounting department has responsibility to record
all input and output of the company, calculate the tax payment following the correct law.
Besides that, accounting department has planned financial distribution with business
department. Report truthfully, accurately and timely on the use of the company capital.
Frontline worker department: comprises four reception staffs, seven waiters, four
Security guards, one cashier and one manager.
Reception Staff: has responsible for welcoming the customer; receiving the
request from customer and report back to management.
Waiter: carrying food from the kitchen to the banquet table for customers,
arranging the banquet table, serving customer requirements.
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Security guard: protecting for the restaurant, and holding vehicle for the customer.
Manager: having responsible for all activities of the front line staffs, assigning
work and their position in the parties.
Cashier: calculating, collecting cash and checks on bills that customers paid.
Business Department:
Business staff has responsible for dealing with partners and contacting with
customers, and representing for restaurant. In addition, this staff must also coordinate with
the kitchen to list the names products need to import from suppliers. Besides that, this
staff regularly studies food products market to compare and find the best supplies for

restaurants.
Moreover, business staff must analysis market; identify direct competitors and
indirect competitors of the restaurant. He compares the strengths and weaknesses of the
restaurant with the competitors. Besides that, He must introduce the measures to attract
customers, competing with rivals, offering management strategies and promotional.
Finally, he prepares advertisement material, preparing solutions to resolve the bad things
can happen during the restaurant are running business, set up introduction programs of
restaurant to customers. At last, regularly reports on the results of market research for
deputy director. Frequently find out the opinion of visitors about the quality of business
management and service quality of the restaurant.
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2. LITERATURE REVIEW
2.1 Overview on marketing:
Marketing is the process of communicating the value of a product or service to
customers, for the purpose of selling the product or service. It is a critical business
function for attracting customers. From a societal point of view, marketing is the link
between a society’s material requirements and its economic patterns of response.
Marketing satisfies these needs and wants through exchange processes and building long-
term relationships. It is the process of communicating the value of a product or service
through positioning to customers. Marketing can be looked at as an organizational
function and a set of processes for creating, delivering and communicating value to
customers, and managing customer relationships in ways that also benefit the organization
and its shareholders. Marketing is the science of choosing target markets through market
analysis and market segmentation, as well as understanding consumer-buying behaviour
and providing superior customer value. (Dr. Musyoka Raymond M, n.d).
2.2 The role of marketing in restaurants:
Marketing takes part in handling basic matters of restaurant activities.

Following (Jim Riley, 2012) like other businesses, restaurants must choose and
deal with basic matters of restaurant business activities.
• The kind of service products a restaurant would like to offer to the market must
be determined. The marketing department will help the restaurant manager handle this
matter by collecting market information, studying consumer behavior and the way
customers use service products and choose a restaurant, looking at how to determine the
need to use hospitality products of individual and corporal customers and their tendency
to change and examining other types of hospitality products on the market.
• Organizing the process of providing service products well.
• Harmoniously handling the relationship of benefits between customers, staff and
restaurant manager.
Marketing becomes a link between restaurants and the market (Dave Samuels,n.d)
• Marketing helps the restaurant manager be aware of market elements, customer
needs, service products and their variations.
• Marketing helps the restaurant manager combine and orient the activities of all
sections and staff toward better satisfaction of customer needs (Dave Samuels,n.d)
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Marketing contributes to creating the competitive position of the restaurant:
Based on (Kimberly Amadeo, n.d) in order to create the competitive position, the
marketing section of a restaurant usually focuses on three major issues:
• Creating the unique feature of service products. This offers the advantage of
differentiation.
• Making customers aware of the importance of differentiation and its advantage
for them by launching propaganda and ad campaigns.
• The ability to maintain the advantage of restaurant differentiation: By pointing
out and maintaining the advantage of restaurant differentiation, marketing helps a
restaurant develop and enhance its competitive position on the market.

2.3 Definition of marketing strategy:
Marketing strategy refers to the process that can allow an organization to
concentrate its resources on the optimal opportunities with the goals of increasing sales
and achieving a sustainable competitive advantage. Marketing strategy includes all basic
and long-term activities in the field of marketing that deal with the analysis of the
strategic initial situation of a company and the formulation, evaluation and selection of
market-oriented strategies and therefore contribute to the goals of the company and its
marketing objectives. (Jim Riley. Sunday 23 September 2012).
2.3.1 Marketing strategy in restaurants:
In business activities in general and restaurant business in particular, a marketing
mix strategy is a local one, showing the relationship between businesses with business
environment, the market, customers and with rivals. It consists of specific strategies on
target market, marketing mix and marketing budget. With the point of view in mind, we
can generalize and systemize marketing mix strategies as follows: “Marketing mix
strategies are a set of oriented coordination and controllable marketing variables a
company could choose and use properly and mutually to locate services and products in a
determined market segment for competitive (Neil Borden,1953).
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Marketing strategy content
The authors know that one requirement for a company’s marketing strategy is the
ability to manage all its corporal target markets. Corresponding to each target market
segment (E. Jerome McCarthy's, n.d), marketing mix strategies can be effectively
implemented by changing the “Seven P Formula” (product, price, place, promotion,
people, physical environment, process) to adapt to the developments and specific
situations of the target market. The measures taken are similar to those of drawing up
marketing mix strategies on key markets. Finally, a company must evaluate and plan
budget for marketing mix strategies.

2.3.2 Market segmentation:
Following (Leigh Richards, n.d) market segmentation is a detailed process
dividing an aggregate market into smaller structures (usually called segments, groups,
parts ) with distinctive parameters, characteristics and behaviors but homogeneous
segment content. An enterprise can wield tangible marketing mix on the target market
segment. The objective of market segmentation is on the basis of analyzing subsets of
customers and marketing efficiency of a company, deep satisfaction of customer needs are
gained with the adaptation of your product promotion to maximize market capacity and
heighten the enterprise position on the selected market segment (MC Carthy, n.d).
Therefore, market segmentation is an objective existence without a trend in itself.
According to (Alexander Hiam and Charles D. Schewe in The Portable MBA in
Marketing), to study and select a key market segment, four following core requirements
must be taken into account:
• First, the relevance: clear identification of market segmentation should be
ensured through selection criteria and they must suit the objective of market
segmentation. Market segments must define correctly: distinction between segments and
homogeneous characteristics and structures within a segment. Market segments must
measure by specific parameters. The scale of the target market segment must be large
enough to achieve the operation goals of an enterprise.
• Second, the accessibility: the core of market segmentation is to select and reach
certain groups of customers. Therefore, market segments are sure to reach and serve them.
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• Third, the feasibility: market segments must ensure the acceptability of subsets
of customers with marketing objectives of an enterprise and the long-term stability of
targeted segments. The feasibility refers to the ability to implement marketing mix
favorably and synchronously not only in products but also in distribution, communication
and promotion channels.

• Fourth, the effectiveness of the feasibility: target segments must suit and promote
the effectiveness of marketing, creating collective strength and relative advantages of an
enterprise over rivals. Expenditures for implementation of marketing mix on market
segments must have the potential to be balanced and make profits, creating preconditions,
taking full advantage of business productivity and expanding market shares and
competitive position of an enterprise on the target market segments as well as on broad
market segments. To satisfy the above requirements for market segmentation, the
selection of segmentation criteria is of utmost importance. Market segmentation criteria
are diverse, but the common criteria restaurants usually use are as follows:
• Geographical market segmentation.
• Geographical and demographic market segmentation.
.• Customer behavioral segmentation.
• Segmentation by products.
2.3.3 Target market:
Market segmentation provides an enterprise with chances in each market segment.
After having analysed its strong and weak points in each segment, an enterprise must
decide to use how many segments and which segments are appropriate. This is the issue
of key market selection. This is the issue of key market selection. To serve the
marketplace, an enterprise could select one of the three following ways (given by legal
information from figure 4.3 principle of marketing):
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Figure 2.1 Segmentation targeting strategy
A: Undifferentiating marketing
B: Differentiating marketing
C: Concentrated marketing
2.3.4 Market differentiation and positioning:
Once having decided to penetrate some areas on the market, an enterprise must

next choose to occupy which placement in the market segment. According to Kotler &
Armstrong in Principles of Marketing textbook (2009), positioning is arranging for a
product to occupy a clear, distinctive, and desirable place relative to competing products
in the minds of target consumers. As one positioning expert puts it, positioning is “how
you differentiate your product or company – why a shopper will pay a little more for your
brand”. In another way, successful product positioning will make it easy for customers to
see the difference; simultaneously they will find what they are looking for. Besides, it also
allows enterprises to spot their chances on the market closely.
Marketers want to develop unique market positions for their product; firstly, they
have to define possible customer value differences that provide competitive advantages
upon which to build the position. Next, the company can offer greater customer value
either by charging lower prices than competitors do or by offering more benefits to justify
higher prices. Once the company has chosen a desired position, it must deliver and
communicate that position to target consumers. (Kotler & Armstrong, 2009)
Enterprise marketing
Market
Marketing mix 1
Marketing mix 2
Marketing mix 3
Area 1
Area 2
Area 3
Enterprise marketing mix
Area 1
Area 2
Area 3
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2.3.5 Marketing mix:
The marketing mix is the controllable, tactical marketing tools – product, price,
place, promotion, people, process, and physical evidence. For tangible products,
Marketing Mix is composed of four components Product, Price, Place, and Promotion.
However, for services (intangible products), the Marketing Mix adds three more elements
as People, Physical Evidence, and Processes because services have characteristics
different from tangible products. These tools are blended to product the response it wants
in the target market. (Kotler & Armstrong, 2009)
Figure 2.2 The Marketing Mix
(Source: />Nguyen Tien Hoang
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Product:
From the standpoint of marketing, products are associated with the satisfaction of
customer needs. Therefore, they need to be considered on both aspects: physical and non-
physical. Basically, restaurant products belong to service products. They have both
tangible and intangible features. Thus, in addition to characteristics like ordinary goods,
restaurant products provided to customers include others as follows:
The heterogeneity of restaurant products show restaurant products are usually
created from different customer needs.
The invisibility of restaurant products: Restaurant products differ from other
physical products in that customers cannot use physical parameters to measure them or try
them before buying and test elements are impossible.
The inseparability of restaurant products from origin shows that the production,
delivery and consumption happen simultaneously.
The perishable feature of restaurant products shows that it is impossible or
difficult to save them.
The impossibility of ownership transferability: The reception and use of
restaurants products do not mean customers own them, but they mean customers only pay

for the restaurant products they are using.
In fact, customers do not buy goods or services but they just get the values and
specific benefits which service goods bring to them. Service products can be divided into
four levels as follows:
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Figure 2.3 Levels of product
(Source: marketingteacher.com)
 The first level: Core products or basic services. This is the most basic level,
showing basic benefits customers really gets. Example: the core benefit of mobile
phone could be to contact with everybody more easily and faster.
 The second level: Tangible products. The marketer puts some tools into tangible
products to make a real product that clearly represents and communicates the offer
of the core benefit. The tools used to create the product include design
specification, product features, quality level, branding and packaging. For mobile
phones, they have larger battery, modern design, touch screen, and larger capacity
that producers put on them
 The third level: Augmented product. They are the ones with additional benefits, so
they are the elements that completely differentiate a service from similar service
products. For instance, a computer manufacturer may offer installation, user
training and after-sales service, to enhance the attractiveness of the product
package. This will affect the satisfaction and benefits that the buyer gets from the
exchange.
 The fourth level: Potential products. They are the ones with additional benefits
available in the future. They are those which suppliers have designed to satisfy
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customer needs better. For example: semiconductor technology cycles (Frances
Brassington and Stephen Pettitt, 2005)
Based on the target segment, an enterprise will determine the service product and
its benefits for customers. When it comes to product strategies of a restaurant, some
questions must be answered: From what kinds of customers will restaurant service
products meet the biggest needs in the market? What are the products which attract
potential customers like? On the other hand, another function of product strategy is to
specify the number of products and target markets. However, each type of service product
does not focus on the number but it gives the name of a market. Its duty is to give three
sizes of a product collection: length (total of service products on the list an enterprise will
provide to the market), width (total of groups of different service products of an
enterprise) and depth (different marketing plans for each product on the list)
To fulfil the above requirements as well as to stabilise and accelerate the sales of
service products for maximum profits, an enterprise could select one or combine all three
following strategies: strategy on product perfection and development, strategy on category
variations and strategy on category expansion, restrictions or division
Strategy on product perfection and development: When a product group have had
an appropriate length, you could adjust each part or change a series of product as well as
comment on customer attitudes towards the change.
Strategy on category variations: This is an essential approach for an enterprise to
pursue product strategies adaptable to the market.
Strategy on establishment of a service product: A service product means a
combination of length, together with the level of harmony of different services, forms a
system of services meeting target customer needs. That is why this strategy must choose
to maintain or eliminate or add one or some names of new service products to current
service product. It is possible to limit a category (if too expensive) or expand a category
(if too short) to one or two directions, or to add a category to some new categories
belonging to the current service product group.
Price

We know prices are a marketing mix tool a company uses to reach its marketing
objectives. Decisions on prices must be combined with decisions on service products and