Term July 2012

Understanding today consumers

Lecturer
Mr.Tom Marotta

Presented by Thuan duc ly (Lee)

Table of contents

Introduction……………………………………………………………………………………….3
Au Lac do Brazil background...…..……………………………………………………………….4
Marketing mix 4Ps and target customer…………………………………………………………11 Product and service…..……………………….………………………………………….11 Price…..………………………..………………………………………………………...11 Promotion…..…………………………………………………………………………….11 Place …..…………………………………………………….…………………………...11
Target customer …..…………………………………………………….………………12
Internal influence……………..…..……………………………………………………………...12 Bad impression…..……………………………………………………………………….12 Food taste is good but bored…..…………………………………………………..……..13 Wrong table number lead to wrong order and bi.………………………………………..15 Facility is nice but not compatible.………………………………………………………16
External influence .....……………………….………………………………………………17
Situational influence…..…………………………….…………………………………………..18
Conclusion……………………………………………………………………………………….18
List of references…………………………………………………………………………………21

INTRODUCTION Hospitality and tourism industry plays an important role in the national economy as well as generates many jobs to offer the local people. Yet, this industry is also a bridge to exchange culture, language and fresh experience [trans] (Vai trò của du lịch trong việc bảo tồn và phát huy bản sắc văn hoá dân tộc n. d.). That the reason why local people have to be educated with international knowledge standard as well as professional skills to offer the current demand. Not only Raffles hospitality and tourism students will be educated by foreign lecturers who have a good qualification and experience in hospitality and tourism field but also Raffles students have a chance to work at the 4 or 5 start hotels and restaurants such as Movenpick hotel, Sheraton hotel or Au Lac do Brazil restaurant and top tourism companies such as Saigon tourist company or Viet travel company. Moreover, this is an opportunity for students to accumulate experience and to adopt their theoretical knowledge at the workplace. From that, students can consolidate knowledge and experience to offer their future jobs as well as to get a chance for working at the best working environment. Last but not least, students will generate new ideas and suggestions to improve the hotel or restaurant to be better regarding understanding consumer behavior through this report.

AU LAC DO BRAZIL RESTAURANT
Au Lac do Brazil had a name was Au Lac long time ago. After that, Au Lac restaurant was acquired by Mrs. Nga, and the name of restaurant was transferred to Au Lac do Brazil. The restaurant has been in Vietnam since 2003 with the first branch on Pasteur road. The second branch has opened in Hanoi after 4 years. The last branch has appeared for 5 years in Phu My Hung, district 7, Saigon.
The guest will be experienced with Brazilian food and services. According to Portuguese, “Churrasco” means barbecue with 12 different types of meat cus such as beef, pork rib, shrimp with bacon or D- rump, and other compliments like ceasar salad, green salad, fried banana or butter rice and bejoda sauce. In addition,“Rodizio” means rotary service. The guests will be served slices of meat at the table by cutting the whole meat [trans] (Chào mừng đến nhà hang mang phong cách Brazil truyền thống ngon nhấtViệt Nam! n. d.) .Besides that, the restaurant also has a la carte or set menu to offer 5 main food items which are grilled lamb chop, steak Au Lac, grilled tiger prawns, cajun jumbo shrimp and shrimp thermidor (A la cart menu n. d.). Especially, the restaurant has diversified beverage like beers, cocktails, wines and alcohol which come from Chile, American, Argentina, Mexico, Australia, France and more (Our drink list n. d.).

Some types of food of Au Lac do Brazil (http://www.aulacdobrazil.com/product/category/3/aulac-do-brazil-i.html. Accessed: March 11th, 2012)

Au Lac do Brazil Phu My Hung has 4 sections. Firstly, Garden section where the guests enjoy some drinks as espresso coffee or other soft drinks and watching sport channel. And this area will serve breakfast in the morning with many traditional Vietnamese food such as pho, bun bo hue or com tam.

Garden section
Next, section A or smoking areas where the guest can enjoy meal and performances of Filipino band every Friday and Saturday. Moreover, there will be exciting performances such as hip hop dance, belly dance and more in particular occasion as Valentine day, Christmas day or celebrating new year.

Section A – Smoking area
The third section is section B or non-smoking area where is romantic space and so quiet. Furthermore, this place will be the best destination for meeting of coupe, family, friend or business.

Section B – Non-smoking area
Last but least, splash pool bar area start at 7:00am and finish at 10:00pm. The guest visits here for swimming, furthermore, people can enjoy soft meals and drinks. However, special outside activities will be also organized at this area such as Pool party 2009 (Splash pool bar n. d.)
Working time is divided into 2 shifts. The first shift starts at 6:00am and completes at 12:00pm. The second one will begin at 3:00pm and finish at 10:00pm or later that depend on the quantity of customer at the restaurant. The restaurant has 8 departments: kitchen has responsibility to cook food; food runner will start working every day by preparing sauces as mustard, chimichuri, thousand island and cucumber with vinegar. Besides that, food runner will carry and serves many compliments to the guest such as bread, salad and more; waiter will take care the guests as getting orders, changing plates, filling glass by water or other beverages and setting up the table; hostess get reservation from the customers to arrange a suitable table with the number of guests, and record the information of customers such as phone number, name or arrival time; cashier will check and record the bill into POS system, moreover, cashier also corrects any mistakes on the bill and report every day, passador or cutter is a department which requires employees are well experience and good appearance because they have to serve the slices of meat by cutting at the table, and if they are not collected carefully, they can make accidents to the guests; housekeeping is a department which take care the clean of restaurant like cleaning the floor, restroom or washing the plate; last but not least, steward includes manager, assistant manager and supervisor who will control everything at the restaurant.

MARKETING MIX 4Ps AND TARGET AUDIENCE I. Products and services:
As report mentioned above, the restaurant offer meals which carry Brazilian flavor, are serviced by Brazilian style. There is quite so fresh and unique with Vietnamese market, and specially, this type of business is closely monopoly in Vietnam market. II. Price:
The price of meal is estimated about 25-30USD/person without service charge 10% of every bill. However, the restaurant also offers the price about 5-7 USD/drink for customers who would like to visit restaurant for enjoying bar and music. III. Promotion:
In the same traditional way for promoting any business, official website is a good tool for audiences who want to study about Au Lac do Brazil. Besides that, the restaurant uses television commercial through television documentary “”of and famous person such as Huy Khanh (Vietnamese actor), Vietnamese footballer team coach Calisto. In addition, billboard is adopted in Phu My Hung store to attract customers. Last but not least, nhommua.com and muachung.com which people visit to purchase products and services with cheap price through bulk (2 websites will sell online company’s vouchers to customers, and if more customers order voucher, 2 websites will deal with vendor to get low price), are both popular websites with Vietnamese. IV. Place:
The business concentrates on the locations which are central cities such as district 3 in Saigon or Hanoi capital, high standard living areas such as Phu My Hung.

V. Target customer
The price is quite high with living standard of Vietnamese people, and target markets what restaurant focuses on, are upper-middle and high income with any age involved generation X and Y; foreigners who are studying or working at Phu My Hung as well as traveling in Vietnam..
INTERNAL INFLUENCE I. Bad impression:
One of important rules of restaurant is always keeping everything clean. However, there still exist flies inside the restaurant. Sometimes the flies inside the glasses or plates which the guests use to drink even the glasses or plates are cleaned carefully. Furthermore, the guest feel disturbed because they always take care their meals from flies. Consequently, the guests feel uncomfortable and unsatisfied because they have to pay the price for meal at least 30USD per person. In addition, this will be bad impression for the fresh customers in the first time to visit there.

Flies on the table inside the restaurant

These pictures are easy to see at the Au Lac do Brazil

The employees have to sleep on the floor or restaurant in rest time. This is a bad impression to guests and new employees. Not only because the new employees can recognize the organization is not good to treat staffs but also the difficult guests think the restaurant is not professional and suitable with the price they have to pay price as 4 -5 stars Hotel. Removing bad images in customer’s eyes is very necessary because these can affect on perception of consumers about the brand as well as the business. II. Food taste is good but bored:
Most of customers visit the restaurant to enjoy ‘churassco meal’ which means the guests will enjoy 12 different types of meat-cut including beef, pork, shrimp, chicken and lamb. Although, it is so interesting to enjoy, the guests feel bored. Because when they arrive Au Lac do Brazil, they have no chance to enjoy something else and eat the same thing again. Besides that, the meals of restaurant offer too much meat, and it will be a problem with consumers who care about health and obesity. According to Product life cycle, every product life always includes 4 stages. Firstly, introductory stage is a stage that the firms try to build product and to find the market for product. Then, growth stage is a stage in which the firm consolidates the brand, and increases the market share. Next, maturity stage in which product of firm is strong growth in sale decline.
Product Life Cycle (http://www.quickmba.com/marketing/product/lifecycle/)
Moreover, competition will appear similar products. The main target at this stage is to protect market share whereas maximizing profit. Finally, decline stage of product is long run drop in sale (Product life circle n. d.). That the reason why many firms want to maintain the business for long term, they have to generate new products or services to make the customers more interesting, and consequently, they can continue gaining more profit. The emotion of customer is also an element which influences their purchasing behaviors. As a result, the customers will easily neglect products which make customers bored. Let’s come back the restaurant’s situation, Au Lac do Brazil needs to diversify their food menu by inviting food experts to get best advices as well as to collect excellent cooks for overseas cuisine training. From that, they can advice new food items which are good for health and stimulate eat well.

III. Facility is nice but not compatible:
Au Lac do Brazil can get and offer over 200 people. Nevertheless, the restroom can only offer for 3 persons. And the guests have only an option is waiting. In some situation, the guests get drunk, and feel uncomfortable. As a result, the conflict between customers and customers or employees and customers is possible. Besides that, the capacity of kitchen can offer well about 40-60 guests whereas there has over 150 guest in special occasion such as valentine day, celebrating new year or Christmas day. The guests have to remind many times and wait for long hours to get the meal. Moreover, the tool for setting up table such as bread knife, napkin and tablecloth is not enough, and the problem is when the guest becomes crowded, they usually get “sorry, sir/miss” for these mistakes. The restaurant should upgrade the space of restroom and kitchen as well as the quantity of employees and tools to serve the guests better. In other words, interior and restaurant design need to be decorated more suitable because the customers are sensitive about quality and form of top products and services.

Inside the restroom

IV. Wrong table number lead to wrong order and bill:

Basically, every section will have a fix number for every table. And all of employees must remember accurately every table number of every section. For example, section A has 5 tables, and it was stick number from A1 to A5. But these tables can be stick together to serve the relevant number of guest. A1, A2 and A3 will be stick to serve for 12 people, and table number will also be changed such as A1, A2, A3 become A1. Sometimes, the large table will be separated by many small tables such as VIP become VIP1, VIP2 and VIP3.It will not be matter when the restaurant does not has too many guests, and disaster will happen when the customers is so crowded because the table numbers will always be changed to fix the number of customers, and it is so hard to remember exactly table number to server as well as to check the bill. Consequently, wrong bill or wrong order is inevitable, and accept “sorry” many times in luxury restaurant impossible. Actually, customers need to get reasonable value with the price which they pay. In this situation, the customer will be disappointed with restaurant because they are willingness to pay high price to get professional services as well as high quality of products.
From my point of views, I would like to suggest the restaurant uses card number, and every section will has private number cards, the waiter/ waitress will stick card number on this table. It is very useful because the employees will be consistent in serving, save the time to ask the table number as well as prevent wrong bill or wrong order.
EXTERNAL INFLUENCE
The power distance score of Vietnam is about 70 (What about Vietnam? n. d.). It means distinguishing between social levels very high. This point can affect marketing activities of business. For example, some brands are targeting on high income market segmentation such as BMW or Louis Vuitton. They do not promote their brands too much through advertising on television and billboard in Vietnam because that can damage the images of luxury products. Because group of Vietnamese people belong to high social level would like to choose famous brands to assert their class with other people. That the reason why LV does not discount its products, or BMW advertises its products through show room or auto show in Vietnam and target guests of BMW invited to auto show are middle-age entrepreneurs. Besides that, Vietnamese people also prefer collectivism rather than individualism with score is 20 (What about Vietnam? n. d.). This culture also needs to be concerned by marketers because it can affect purchasing power of customers.

SITUATIONAL INFLUENCE
The restaurant has nice decoration, beautiful sightseeing, great taste of food and unique services that are advantages to choose restaurant for celebrating birthday, anniversary, valentine or group meeting. Besides that, the restaurant carries western culture that is very suitable to choose this place to organize Christmas or New Year party.
PROMOTIONAL PLAN
Strategic alliance with other partners such as event and tourist companies is necessary to promote brands of restaurant as well as gain market share. In addition, the restaurant can gain customers through these partners instead of advertise directly to gain customers as well as preventing destroy the image of business as normal products. Restaurant need to promote special deal with group of people purchasing to attract purchasing with bulk. As internal influence part of report mention about Vietnamese culture prefer collectivism. That is a reason why promoting for group of people purchasing is potential to raise purchasing power of customers. For example, Jollibee implemented “Open House” marketing campaign very successful (Jollibee ẩm thực tại Việt Nam, December 24th, 2011) because the marketing campaign focus on psychology of Vietnamese customers is purchasing product based on idea of group. Moreover, the business can expand its business another line which is promoting Vietnamese cuisine with reasonable price and focusing on middle-income level of market. However, Au Lac do Brazil should build another brand to prevent damaging luxury products of Au Lac do Brazil. For example, Toyota creates cars which concentrate the consumer who are middle and low income. However, Toyota also generates another luxury product as Lexus for higher social level. Last but not least, maintaining customer relationship is momentous to treat customers in right way. Every customer will be got call from restaurants after visiting restaurant. The conversation does not try to convince customers buy new services or products of restaurant that the customers will be interviewed in short time about feeling as well as feedback to improve restaurant better. In addition, this way makes customers respected, and understood importance of them in business as well as their position in society.

CONCLUSION Understanding consumer’s behavior is very important to get successful business because business cannot exist without customers. In other words, the business offers and sell what customers need and want. The report gives some concepts which can affect consumer behavior in terms of purchasing goods and services such as external, internal and situational influence. Moreover, the report innovative new ideas to attract customers and gain benefits as well as weakness of Au Lac do Brazil can destroy the perceives of customers about restaurant.

List of references.
A la cart menu. URL: http://www.aulacdobrazil.com/product/category/1/danh-muc.html/pID:8/lang=en. Accessed: September 10th, 2012
Chào mừng đến nhà hang mang phong cách Brazil truyền thống ngon nhất Việt Nam!. URL: http://www.aulacdobrazil.com/page/Introduction.html. Accessed: September10th, 2012
Danhsáchcáctrang web tìmkiếmtốtnhấttrên Internet. URL: http://xahoithongtin.com.vn/20110121124450246p0c174/danh-sach-cac-trang-web-tim-kiem-tot-nhat-tren-internet.htm. Accessed: September 15th, 2012.
Edward, L. and Ebi, M., 2003.Relationship marketing management. South – Western Cengage Learning: London. Chapter 6 - p.122.
Edward, L. and Ebi, M., 2003.Relationship marketing management. South – Western Cengage Learning: London. Chapter 6 - p.123.
Google – hãngcôngnghệhấpdẫnnhấtđểxinviệc. URL: http://www.thanhnien.com.vn/pages/20111001/google-la-hang-cong-nghe-hap-dan-nhat-de-xin-viec-lam.aspx. Accessed: September15th, 2012.
Jollibee ẩm thực tại Việt Nam. URL: http://www.proguide.vn/cua-hang/414-jollibee-am-thuc-phillipines-tai-viet-nam.aspx. Accessed: September10th, 2012
Khám pá nơi làm việc của nhân viên GOOGLE .URL: http://hoachithanh.com/documents/blog_1.php?entry_id=1323702269. Accessed: September15th, 2012.
Our drink list. URL: http://www.aulacdobrazil.com/product/category/1/category.html/pID:10. Accessed: September10th, 2012
Our traditional Brazilian menu URL: http://www.aulacdobrazil.com/product/category/3/aulac-do-brazil-i.html. Accessed: September11th, 2012
Product life cycle .URL: http://www.quickmba.com/marketing/product/lifecycle/. Accessed: September 12th, 2012
Splash pool bar. URL: http://www.aulacdobrazil.com/product/category/11/splash-pool-bar.html/lang=en. Accessed: September11th, 2012
Vaitròcủa du lịchtrongviệcbảotồnvàpháthuybảnsắcvănhoádântộc.URL: http://reportshop.com.vn/chi-tiet-tai-lieu/vai-tro-cua-du-lich-trong-viec-bao-ton-va-phat-huy-ban-sac-van-hoa-dan-toc/941.html. Accessed: Sptember10th, 2012
What about Vietnam? URL: http://geert-hofstede.com/vietnam.html. Accessed: September10th, 2012