CUSTOMER SERVICE RECOMMENDATIONS TO INCREASE SALES FOR KICHI-KICHI HOTPOT BAR ON 61 MA MAY STREET, HA NOI

Website: Email : Tel : 0918.775.368

NATIONAL ECONOMICS UNIVERSITY
English for Business Department
Faculty of English for Economics
CAO THI THUY LIEU
CUSTOMER SERVICE RECOMMENDATIONS
TO INCREASE SALES FOR KICHI-KICHI
HOTPOT BAR ON 61 MA MAY STREET, HA NOI
Field: Marketing
Code:
Supervisor: Ms. PHAM THUC ANH
MBA
Hanoi, May, 2010
Website: Email : Tel : 0918.775.368
ACKNOWLEDGEMENT
The writer would like to show thanks to Ms. Duong Hoa Mai, Customer Service
Executive and Ms. Le Bich Diep, Marketing Executive and other staff at Golden
Gate Trade & Service Joint-Stock Company for their help during internship.
The writer has the honor of expressing deep gratitude to Ms. Pham Thuc Anh who
whole-heartedly gave directions.
Due to limited time and ability, this report is inevitable to be present of mistakes
and inappropriate aspects. So the writer is looking forward to all comments from
readers to improve the writing better.
Website: Email : Tel : 0918.775.368
TABLE OF CONTENTS
EXECUTIVE SUMMARY.....................................................................................1
INTRODUCTION...................................................................................................4
CHAPTER 1: INTRODUTION OF THE COMPANY WITH THEIR
PROBLEM............................................................................................................... 5
1. Golden Gate Trade & Service JSC and Kichi-Kichi system.................................5

2. Problem statement.................................................................................................7
3. Research methodology..........................................................................................8
4. Research scope....................................................................................................10
CHAPTER 2: THEORETICAL FRAMEWORK..............................................11
1. Customer care or customer service definition.....................................................11
2. The importance of customer service to business................................................11
3. Requirements on customer service.....................................................................16
CHAPTER 3: ANALYSIS AND FINDING.........................................................19
1. Real state of using customer service activities at Kichi-Kichi Ma May –
Customer satisfaction evaluation............................................................................19
2. Reasons for sales decrease..................................................................................28
CHAPTER 4: RECOMMENDATIONS TO INCREASE SALES....................32
1. Satisfying customers by suitable product, price and promotion policies............32
2. Finding new target groups and satisfy them.......................................................33
3. Training for employees.......................................................................................34
4. Saving marketing budget by investing in selective channels..............................35
CONCLUSION...................................................................................................... 36
APPENDIX............................................................................................................ 37
1. Comment card.....................................................................................................37
2. “Eat 5 Free 1” leaflet..........................................................................................38
3. Result of the survey in January, 2010.................................................................39
`...............................................................................................................................39
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4. The result of survey in April. 2010.....................................................................40
REFERENCES......................................................................................................41
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TABLE OF FIGURES
Table:
Table 1: Revenue of Kichi-Kichi in first 3 months from flotation.......................8
Figure 1: Reasons for Switching to another Vendor...........................................13

Table 2: Effect comparison...................................................................................21
Table 3: “Eat 5 Free 1” effect...............................................................................22
Figure 2: Result of survey in week 4, January, 2010..........................................23
Figure 3: Result of survey in week 2 and week 4, April, 2010............................24
Figure 4: Result of survey in week 4, January 2010...........................................25
Figure 5: Result of survey in week 2 and week 4, April, 2010............................26
Table 4: Competitor analysis: Ha Noi – F1.........................................................28
Figure 6: SWOT model.........................................................................................30

EXECUTIVE SUMMARY
Kichi-Kichi is a system of hotpot bar restaurant which appeared in 2009 on Ha Noi
market. Its freshness and originality make it successful. However, a unit on 61 Ma
May Street (Kichi-Kichi Ma May) is an exception with its decrease in sales. This
problem can be caused by many reasons but in this study on the topic “Customer
service recommendations to increase sales for Kichi-Kichi hot pot bar restaurant
on 61 Ma May Street, Ha Noi”, the researcher just focuses on reasons that belong to
customer service section.
In this study, the researcher uses primary data from customers’ opinion poll results
and observation at restaurant and secondary data provided by Marketing and
Accounting Department from Golden Gate Trade & Service Joint Stock Company.
Primary data:
• Survey:
The survey is carried out daily after customers’ meal. Each customer will fill in a
comment card which consists of both closed and opened questions. The answers for
closed questions will provide researcher with customers’ data including their personal
information such as name, gender, age, and communication information such as
telephone number and e-mail address; customers’ evaluation to restaurant’s product
and service. Through these answers, the writer will also know what advertising
channels are most effective in marketing restaurant’s image as well as what features
can attract most customers to restaurant. Besides, opened questions’ result voices the

feelings and expectations of customers to restaurant at present and in the future.
• Observation:
The researcher studies its major competitor F1by having lunches at F1 five times
including two times in off-peak hours and three times in peak hours. The quality of
product and service of F1 will be exposed, so the researcher can evaluate its
competitive power and then compare with Kichi-Kichi competitive ability.
1
In order to find out reasons that caused the decrease in sales at Kichi-Kichi Ma
May, the researcher directly comes to restaurant and observes purchasing behavior
and feelings of customers and service manner of employees. After two weeks
observing in both off-peak hours and peak hours at weekdays and weekend,
researcher can know the strengths that need to be upheld and weaknesses that should
be improved.
Secondary data:
All the data about each restaurant turnover and result of promotion programs are
provided by Marketing and Accounting Department from Golden Gate Trade &
Service JSC. The writer will collect and analyze these data.
According to the study result, the writer recognizes reasons of sales decrease:
• Strong competitors
Rivals of Kichi-Kichi exist on both Ha Noi and Ho Chi Minh City market. On Ha
Noi market, F1 is the strongest competitor with similar products, similar concept and
similar payment procedure.
Direct competitors of Kichi-Kichi Ma May are restaurants and old make shift
shops in the Old Quarter
• Wrong place
Placing in the Old Quarter, a famous tourist area, the restaurant is far from its
target customers: office staff. There is no car parking around the restaurant site. This
is a reason that makes it difficult for car-driving customers to come to Kichi-Kichi
Ma May.
• Lack of employee

With its medium size, Kichi-Kichi Ma May used to be short of human resource at
peak hours. English level of all the staffs at Kichi-Kichi Ma May is too low to serve
foreign travelers.
After defining sources of sales decrease, the researcher proposes recommendations
to increase turnover for Kichi-Kichi Ma May:
2
• Strengthen competitive power: Improving product, price, and promotion
policies to fit with conditions in the Old Quarter, to satisfy existing customers.
• Adjust to the Old Quarter environment: Finding new target customers such as
children and foreign tourists and satisfy them.
• Attach special importance to employees training as well as the recruitment.
• Saving marketing budget: by cutting off ineffective advertising channels such
as radio along with promoting effective channels including advertising on hoarding
and on internet.
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INTRODUCTION
Eating out is popular 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
1
. 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 “Customer service recommendations to increase sales for
Kichi-Kichi hot pot bar restaurant on 61 Ma May street, Ha Noi” the writer will

focus on analyzing and evaluating the effects of customer service activities used in
Kichi-Kichi hot pot bar restaurant on 61 Ma May street from Golden Gate from
flotation up to now, and from that point of view, the writer will offer some
recommendations in order to improve customer service policy of the company. To do
these tasks, descriptive method will be used to collect all information, and then
statistic method will be used 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
1
Art of restaurant business, Entrepreneur
www.tailieu.vn
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CHAPTER 1: INTRODUTION OF THE COMPANY WITH THEIR
PROBLEM
1. Golden Gate Trade & Service JSC and Kichi-Kichi system
Golden Gate Trade & Service Joint Stock Company is the international name of a
company in restaurant business which is called Cong Ty Co Phan Thuong Mai va
Dich Vu Cong Vang. Situating on the 4
th
floor in Anh Minh Building on 36 Hoang
Cau Street, Ba Dinh District, Ha Noi, Golden Gate Trade & Service JSC consists of
more than 500 staffs.
Golden Gate Trade & Service Joint Stock Company is a foreign invested company
operating and managing luxury restaurants. They are proud of 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 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.
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.
5
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 guests, colleagues, friends, and families 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.
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 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 band 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 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.
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2. Problem statement
From flotation, this chain of restaurant had good sales and received warmly
welcome from urban customers because of its freshness and diversification. 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.
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 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, and Shabu broth is the perfect
choice for any food. After dinning, you can order ice-cream or fruit for dessert.
However, just after several months after opening, amount of customers goes down
gradually. This matter happens most seriously at Kichi-Kichi Ma May.
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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
Table 1: Revenue of Kichi-Kichi in first 3 months from flotation
In this essay, the researcher will focus on studying reasons caused that decrease in
the aspect of customer service and then give some proposals for sales increasing.
3. 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, and
comparing these figures will help the writer evaluate the effect of marketing strategy
in customer service. Data of revenue and business cost are provided by Accounting
and Marketing Departments. The 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.
Primary data:
• Survey:
8
The survey is carried out daily after customers’ meal. Each customer will fill in a
comment card which consists of both closed and opened questions. The quantity of
cards depends on the customer number each day. The answers for closed questions
will provide researcher with customers’ data including their personal information
such as name, gender, age, and communication information such as telephone number
and e-mail address; customers’ evaluation to restaurant’s product and service.
Through these answers, the writer will also know what advertising channels are most
effective in marketing restaurant’s image as well as what features can attract most
customers to restaurant. Besides, opened questions’ result voices the feelings and
expectations of customers to restaurant at present and in the future.
• Observation:
The researcher studies its major competitor F1by having lunches at F1 five times
including two times in off-peak hours and three times in peak hours. The quality of
product and service of F1 will be exposed, so the researcher can evaluate its
competitive power and then compare with Kichi-Kichi competitive ability.
In order to find out reasons that caused the decrease in sales at Kichi-Kichi Ma
May, the researcher directly comes to restaurant and observes purchasing behavior

and feelings of customers and service manner of employees. Because of special
characteristics of a busy tourist site, working and relaxing and eating hours in the Old
Quarter are later than other area. Peak hours at Kichi-Kichi Ma May at lunch time is
from 12h30’ to 14h, at dinner time is from 20h to 21h30’. After two weeks (from 15
th
March to 28
th
March) observing in both off-peak hours and peak hours at weekdays
and weekend, researcher can know the strengths that need to be upheld and
weaknesses that should be improved.
Secondary data:
All the data about each restaurant turnover and result of promotion program are
provided by Marketing and Accounting Department from Golden Gate Trade &
Service JSC. The writer will collect and analyze these data.
9
4. Research scope
This research will just study customer service activities that are applied for Kichi-
Kichi on 61 Ma May Street, Ha Noi because the researcher got familiar with it during
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."
2
In opinion of this customer, customer service can be a high quality product with
suitable price. However, another customer can consider it on-time delivery while
other customer 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 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 customers and making loyal customers
2
www.wikipedia.com
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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.
Your sales and profitability depends on keeping your customers happy. 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. Thus, the goal of
customer service is customer satisfaction. Customer satisfaction is what customer feels
subjectively and sometimes irrationally.
3
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
service dissatisfaction is the most important key factor when a consumer decides to
change service providers.
3
www.eDigitalPhoto.com
12
Figure 1: Reasons for Switching to another Vendor
(www.iec.org)
Retaining existing customers mean making them keep buying company product or
service. 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.
4
Businesses can improve profitability by focusing their attention on their customer
that has the highest potential lifetime value.

In their book Rules to Break and Laws to Follow (2008), 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”.
4
2009, The Chartered Institute of Marketing, 10 Minutes Guide: Customer Service Program
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