Vietnam Group 1: Jamie Manning, Melissa Hendry, George Butler, Huyen Nguyen

Country Flag ❖ Yellow represents Vietnamese people ❖ Red symbolizes revolution and blood ❖ Five-pointed gold star represents five main classes in Vietnamese society- intellectuals, farmers, workers, traders and soldiers

Country Profile ❖ Location: Southeast Asia, lat of o N and long of o E ❖ Capital: Hanoi ❖ Largest City: Ho Chi Minh City (Saigon) ❖ Area: 332,698 km 2, 6.4% is water ❖ Population: 93,475,941 people (2015) ❖ Population density: 279 people per km 2 ❖ Official language: Vietnamese, Khmer and Cham for minority groups ❖ Independent day: September 2, 1945 ❖ Calling code: +84 ❖ Time Zone: UTC+07:00 ❖ Bordering countries: Cambodia, Laos, China ❖ Internet TLD:.vn ❖ Official religion: none, recognition Buddhism, Catholicism, Protestantism, Islam, Cao Dai, and Hoa Hao ❖ Currency: Vietnamese Dong (VND) ❖ Median age: 30.3 years ❖ Literacy: 94.5% (definition: age of 15 or over can read and write)

Environment Analysis ❖ Type of Government: Socialist Republic of Viet Nam ❖ Politics: stable, unwelcomed dissent, rare internal conflict ➢ Low terrorism threat ❖ Economic: ➢ Stable macroeconomic conditions ➢ Curbed inflation ➢ Growing industry ➢ Increase foreign trading Opportunities ➢ Rapid urbanization, busier lifestyles ➢ Joined the WTO in 2007 and participating in the Trans-Pacific Partnership (TPP) Negotiations Challenges ➢ Uncertainty of government regulations ➢ Strong competition ➢ Unclear intelligent property right

Purchasing Power ❖ GDP - $187 billion ❖ GDP per capita- $3,800 ❖ State-owned enterprises make up 40% of GDP ❖ The main consumption in the country that makes up most of the purchasing power is household consumption with 66.3% ➢ Government consumption- 6.3% ➢ Investment in fixed capital- 23.7% ❖ GDP of sector ➢ Agriculture ➢ Industry- 38.1% ➢ Services- 44% ❖ Vietnam’s export-oriented economy has a GDP growth rate of 5.4% which was one of the slower growth rates since 1999 ❖ Exports have grown strongly and several administrative actions brought the trade deficit back into balance ❖ Disposable income has increased due to the government’s reform policy to open the market

Food Culture ❖ Rice is the dietary staple which most people eat three meals a day ❖ Vietnamese often accompany these main dishes with leafy vegetables and small bowls of salty sauces in which they dip their food ❖ Special dipping sauce is salty fish sauce called “nuoc mam” ❖ Beside rice, Vietnamese people also enjoy eating noodle and vermicelli soup ❖ Traditional meal of old Vietnamese include rice-vegetable (soup)-fish, however, sometimes they replace fish with meat including beef, buffalo, duck, chicken, pork

Attitude toward America ●The Vietnam War was November 1st, 1955 through April 30th, 1975 ●After the war there was a lot of restrictions of Americans and Vietnamese traveling to and from the countries. ●The older generation are content with the communist place they live, they are accustom to living life by control and don’t really want anything to do with other countries. ●The younger generation, wants their children to have a better future, which is coming to the United States of America ●The Vietnamese people want their children to come to America to get a better education, especially women because the US is more accepting of everyone given equal opportunity. ●Currently, strongly favors made-in-US products and US foods

Company Profile ❖ International retailer of premium high quality sweet treats ❖ Founded in 1937 ❖ Headquartered in Winston-Salem, North Carolina ❖ Traded on the NYSE on May 17, 2001 under the ticker symbol KKD ❖ First international store opened in Canada on December, 2011 ❖ Currently over 1,000 shops in 24 countries around the world ❖ Employed approximately 4,300 employees ❖ Committed to strong local community relationship

Product Profile ❖ Signature hot Original Glazed® doughnut ❖ 55 types’ of doughnuts ❖ 35 different drinks including mocha, latte and coffee

Why Vietnam? ❖ Growing economy and curbed inflation ❖ Growing western-style food trend ❖ Adopting modern lifestyle ❖ Generally youthful generation ❖ Favor U.S. food chain ❖ Social Status indication

Target Market Analysis ❖ Youths/ teenagers ❖ Family

Potential Challenges ❖ Uncertain government regulation ❖ Insource the ingredients ❖ Different taste ❖ Price match ❖ Strong competition ❖ Limited good location ❖ Unclear intelligent property right

Competition Analysis ❖ Dunkin Donuts ❖ Starbuck Coffee ❖ McDonald's ❖ KFC: 137 outlets ❖ Burger King ❖ Jollibee: Filipino brand with 39 outlets ❖ Lotteria: korean brand with 86 outlets ❖ Popeyes ❖ Domino's Pizza ❖ Pizza Hut

Product Decisions ❖ Global localization (glocalization): core product strategy ❖ Global branding: ➢ Signature hot Original Glazed® doughnut ➢ Friendly services & clean ❖ Localized marketing adaption: ➢ Sweet treat & cafe style ➢ Less sweet ➢ Yellow mung bean ➢ Coconut ingredient ➢ Real fruit smoothies ➢ Crispy doughnuts

Promotion Decisions ❖ Advertising objectives ➢ Position brand ➢ Creation demand ➢ Popularity ➢ Competition ➢ Supporting salesforce ❖ Media decisions ➢ TV & radio ads ➢ Youtube ads ➢ Poster ➢ Facebook ➢ Event marketing ❖ Message decisions ➢ Home Sweet Home ➢ Free first 200 people ➢ Buy a dozen, get a dozen free ➢ 50% of combo

Distribution Decisions ❖ Ho Chi Minh City ➢ Crowed population ➢ Fast economic pace ➢ High GPD ❖ Open from 7AM to 10PM, 7 days a week

Pricing Decisions ❖ Inexpensive local ingredients ❖ Importing special ingredients ❖ Large quantities ❖ Low production cost ❖ Penetration cost

References