Poweful Advertising Strategies of F&B Industry in Vietnam
A Descriptive Study about Advertising Strategies used by Food and Beverage Franchises towards young Vietnamese’s consumers
Introduction
Vietnam is attracting more and more international franchise to come as a steadily growth developing country (US Commercial Service- United State of America: Department of Commerce 2011). Understanding Vietnamese consumers’ behaviours, many large US brands, especially food and beverage industries have expanded their market here (Weingartner 2012). Since 1990s, there are many successful global franchise chains in Vietnam like KFC, Pizza Hut, Lotteria, Carl’s Jr, Domino’s Pizza, Gloria Jeans Coffee, etc. (US Commercial Service- United State of America: Department of Commerce 2011) and recently Starbuck. Each brand has used different advertising strategy to engage consumers. Today, KFC is the biggest franchise in Vietnam with 125 stores, followed by Lotteria (Tuoi Tre News 2012). Hamburger is placed on the top list of preferred fast food, following by pizza (Zafar, Abbasi, Chaudhry & Riaz 2002). Additionally, 31% of Vietnamese surveyed rate KFC as the No. 1 restaurant brand, 9% chose Pizza Hut as their favourite and 4% picked Domino’s Pizza (Weingartner 2012). However, fast food leads to serious diseases such as obesity (Brindal 2010), diabetes, heart attack and other health-related illnesses because of high fat, sodium and cholesterol content (Zafar, Abbasi, Chaudhry & Riaz 2002).
Although fast food brings back many negative effects on health, it has been still welcomed globally. Great taste, time-saving and attractive advertising (Gia 2014) have made fast food become popular in modern society, not only in Western nations (Zafar, Abbasi, Chaudhry & Riaz 2002) but also in Vietnam (Gia 2014).
Advertising plays an important role in informing, persuading and motivating consumers (Perreault, Cannon and McCarthy 2014). By applying Diffusion of Innovation Theory and the Theory of Planned Behaviour, this research is going to analyse what and how advertising strategies used by Food and Beverage Industries in Vietnam that influence young Vietnamese’s consumption behaviour. The Diffusion of innovations theory was developed by Everett M. Rogers (2003), it is seek to understand in details how, why and at which rate new ideas or innovation and technology have spread through the cultures. The Diffusion of Innovations research has concentrated on five elements: the advantages which is related on how innovation has improved over generations (Relative Advantages), whether the ideas or innovation is seem to be complicated (Complexity), the level of compatibility that impact into an individual life (Compatibility), it is calculated capable of applying test (Trialability) and measure the capable of visually (Observability). The Theory of Planned Behaviour (TPB) is an extension of the Theory of Reasoned Action (TRA) that includes measures of control belief and perceived behavioural control (Armitage and Conner 2001). According to Boston University School of Public Health (2013), TPB predicts and explains people’s intention to engage in a behaviour at a specific time and place, including attitude-behavioural belief, social norm-normative beliefs and self-efficacy- control beliefs and perceived power (Glanz, Rimer and Viswanath 2008).
It is necessary for researcher and producers to understand why and how people make consumption decision as an initial step for a good marketing strategy. “Tastes, behaviours and incomes are changing rapidly” (Weingartner 2012). Consequently, understanding human consumption behaviour helps marketers predicting people’s reaction. From then, marketers can find better ways to communicate and advertise effectively, especially in designing and launching new products. Therefore, this research focuses on what and how advertising strategies used by Food and Beverage Franchises towards young Vietnamese consumers.
In this study, I am going to review several relevant literatures to identify the gaps and to form research questions. Then, I will discuss research Methodology with Analysis and Findings.
Literature Review
Advertising and Food Consumption
Food and Beverage companies used advertising as an effective way to raise brand awareness, strengthened brand equity and persuaded consumers (Buil, Chernatony and Martinez 2011). According to Ghimire and Rao (2013), these companies usually sold their products via TVCs, newspaper and the Internet. Additionally, they also used different tools to convey message and attract young consumer, such as billboards, in-school advertisements, product placements (in movies, games, TV shows), Internet and especially smart phone applications in recent times (Arcan, Bruening and Story 2013). All these way of advertising above independently affected people’s food consumption (Scully et al. 2011). However, Arcan, Bruening and Story (2013) strongly stated that television was still the most effective way for marketing food and beverage to the youth in technological developing time. In other word, television offered the first the most effective engaging experiences for consumer about food (Boyland and Halford 2012). It created an effect on viewers’ attitude, behaviour and values. Therefore, continued exposure to food branding and advertising, especially TVCs would influence food choice (Boyland and Halford 2012) and eating behaviour (Scully et al. 2011).
Arcan, Bruening and Story (2013) found that eating habits and taste preference developed in early time and remained relatively stable through young adulthood. Taste preferences were acquired through learning processes, including repeated exposure and positive messaging about various foods. Consequently, exposure to TV viewing early in life could create a long-term influence in eating practices (Arcan, Bruening and Story 2013).
Additionally, repeating exposure to high-calorie, low-nutrient foods through media and advertising methods could increase the craving for these foods (Ghimire and Rao 2013). Anschutz et al. (2010) also revealed that food cues in food advertising facilitated people’ s hungry and desire for food, especially snack food with women. These results linked to the study of Bodenlos and Wormuth (2012) that watching food advertising and food- related programs affected eating behaviour and fostered food consumption. The study conducted by Scully, Dixon and Wakefield (2008) proved that there was a strong link between high food advertising exposure and fast-food consumption in adults. To illustrate, advertisements for fast food and takeaway occurred at a higher rate late in the day, with people viewing television in the evening (6–9 pm) being exposed on average to double the number of fast-food advertisements than people watching television between 7 and 9 am. Consequently, people who watched television during this time would be exposed to larger doses of fast-food advertisements and might engage in the advertised eating behaviour.
According to Samuels et al. (2003), African-American and Latino youth was seen as potential consumer for fast food industry. They had freely eating habit with “junk food,” such as candy, chips, and soda, for their primary meal. A recent study of Samuels et al (2003) was conducted to find out that there were 31% of food commercials on popular African-American shows were for desserts or sweets and 13 %were for soda. In contrast, there were only 11% advertisements for food and sweet and 2% for soda on shows for general audiences in prime time. African-American prime-time TV programs also showed food items in non-advertising minutes more often than did prime-time TV programs for general audiences.
Social Norm and Attitude
According to Brindal (2010), despite of the negative judgments about fast food, this type of food has always been being welcomed thanks to its attractiveness. Fast food attracted children, and as children liked them, their families might be engaged by fast food too. The author also reported that fast food consumers were more likely to be young and more educated than the non-one. Young adults were regular fast-food consumers. Male were more likely to consume fast food because they were usually be attracted by advertising message of time- efficiency. Importantly, socialization with low- cost were significant factors that made people to choose fast food (Brindal 2010, p. 18). Therefore, food and beverage companies used these potential elements to advertise for young people. Moreover, sale promotion was also a tool that helped fostering consumers’ purchasing (Hamlin, Linsay and Isch 2011).
According to Samuels et al. (2003), marketing and advertising were the two elements that established social norms and affected behaviour. This study showed that individual, social, and environmental factors (social norms) strongly linked with the increasing fast-food consumption. In the qualitative research about food choice, Bisogni, Connors and Devine, Sobal (2002) proved that food choice and consumption strongly influenced by social norm, including taste, behaviour and consideration. Additionally, Brindal (2010) stated that social factors had considerable influences on people’s consumption. Food choice was strongly driven by social norm (Brindal 2010). Influence on perceived actions of others showed the role of social influence on eating and food consumption (Brindal 2010).
Food and Beverage companies used many channels to attack young consumer as they are vulnerable to promotional and advertising messages with tactics (Samuels et al. 2003). US Food Brand has been invested lots of money on fast food advertising that target young consumers. These companies used advertising as an effective way to raise brand awareness and strengthened brand equity (Buil, Chernatony and Martinez 2011). Additionally, food size increased without price increased encouraged people consumption effectively. It was stated by Buil, Chernatony and Martinez (2011) that adults could be persuaded by advertising messages, which play into their vulnerabilities, including concerns related to “appearance, self-identity, peers, and sexuality”.
In the report of Samuels et al. (2003), many marketers used specific images that were meaningful to audiences like celebrities (entertainers, rap singers) and athletes, models in fashionable dress or even models using specific cultural associations expressed in language, mannerisms and “youth representing peer approval”. Other marketing strategies lured young consumers with “routine “low” and special discounted prices” for over-sized amounts of foods and beverages, such as McDonald’s Meal Deals and 7–11’s Big Gulp oversized beverages.
Additionally, Samuels et al. (2003) revealed that Food companies also build them as a CSR company to advertise and build long- term relationship with consumers. When McDonald invested money for Black People and Children, Kraft/General Foods helped expanding schools and providing meals for inner city. Meanwhile, soft drink brands mostly used advertising to reflect the country’s ethnic and racial composition. To explain, they used celebrities to present their image as fashionable and dynamic, like 7Up and Doctor Pepper. They also used tagline to reach and attract young urban market. Additionally, sponsoring for community events could strengthen the image and maintain consumer relationships.
It was clear to see that marketing strategies of food and beverage brands usually linked social values and social norms to brand name products. In fact, they also changed values and norms that influenced behaviour by equating unhealthy foods and beverages with “freedom, independence, belonging, love, and caring” (Samuels et al. 2003). This reason can explain why people still welcome fast food although it is not good for their health.
After reviewing several literatures, I concluded that Food and beverage companies used different ways to advertise to raise brand awareness, enhance brand equity and attract, persuade consumers. Many advertisement, including TVCs, were used to engage and change people’s attitudes. Food consumption and eating behaviour were strongly driven by social norms and self-efficacy. However, there has been no study about advertising strategies used by food and beverage franchises towards young Vietnamese’s consumers. It is necessary for researcher and producers to understand why and how people make consumption decision as an initial step for a good marketing strategy. “Tastes, behaviours and incomes are changing rapidly” (Weingartner 2012). Consequently, understanding human consumption behaviour helps marketers predicting people’s reaction. From then, marketers can find better ways to communicate and advertise effectively, especially in designing and launching new products. Therefore, I conducted this study in Vietnam.
Research Question
RQ1: What advertising strategies used by Food and Beverage companies affect young Vietnamese’s consumers?
RQ2: How do advertising strategies used by Food and Beverage companies affect young Vietnamese’s consumers?
Methodology
In this project, I applied Qualitative Research by using the in-depth interview guide to conduct the study. This method searched for plausible explanation based on what is observed. The reason behind this choice was that I could capture the complexity of the interaction event because it did not limit observation to one or some aspects or components (Keyton 2006, p. 60).
Participants:
I interviewed 7 people who are students at RMIT Saigon South Campus. I aimed at both gender, which were 3 females and 4 males who are from 19 to 25 year old. However, they are studying at different majors, including Professional Communication, Commerce, Finance, BIS and marketing, etc.
Procedure:
As those people I interviewed were my friend. Therefore, I just needed to call them to arrange a meeting at Highland Coffee in District 7. The meeting took about 30 minutes.
Firstly, the interviewees were asked to sign in the Ethic Protocol. I introduced myself and told them about the project. Then, the project continued with the main 6 prepared questionnaires. Lastly, they received a little gift as my thank you.
Thematic Analysis
I applied Inductive Analysis by using texts to analyse the research. From then, I could discover or develop the theories from the information and data I collected (Joann 2006). I explained by comparing, contrasting the data and writing the research document.
According to Keyton (2006), Thematic analysis was interpreted that bases on conceptions of participants of “actual communication episodes”. Following the thematic analysis, I applied the three main criteria, which are recurrence, repetition and forceful (Owen 1984) that could be used to identify themes to answer research questions.
Recurrence and Repetition could be found meaning in text, while “Forceful” linked to visible changes, including verbal dimension like voices, pauses and behaviours. Repetition was defined as the duplication of key words and phrases (Harvey & Housel 2014), while Recurrence was “the observing of at least 2 reports that have the same thread of meanings” (Frey 2014). Meanwhile, Forcefulness referred to verbal aspects, when people emphasize a certain word or phrases (Harvey & Housel 2014). I looked for salient message and recurrence of strategies in texts. There were some texts are written in Vietnamese. Therefore, I read them in original language and when I analysed the data. However, I would provide translation of parts that used to report in the research.
The first question was about personal details, such as age, gender, marriage status, etc. The next two questions were used to understand their attitudes about big franchises that appeared in Vietnam recently, how they know about them and what their feelings are when they know that a new global franchise is going to appear in Vietnam? Then, I asked how they think when they see these global franchises appear in Vietnam’s streets and when they see photos/ comments of friends visit these places on Facebook. The next questions were which franchise they like most and why, including which factors and images they link to that favorite franchise. Then, I asked who they usually go out with and who usually decide the place to meet to understanding more about their habits.
Moreover, I also used probing questions to facilitate, foster and boost people to continue sharing the information with their stories. Then, I could understand deeply and had chance to analyse their behaviours and attitudes. There was no change in my schedule.
Findings
In this part, I presented two main themes discovered from this study.
I followed the guideline of Keyton to find themes from the text based on three elements mentioned above (recurrence, repetition and forcefulness).
The first theme is that Food and Beverage Franchises uses Marketing mix strategy to advertise for Vietnamese young consumers. By using the Diffusion of Innovation Theory, global franchises was diffused among Vietnamese young people successfully with 5 elements, which are Observability, Complexity, Compatibility, Trialability and Relative Advantage. With Observability, the findings indicates that young people ,mainly knew and updated information about global food and beverage companies via the Internet, from online newspaper to YouTube and social media as Facebook. The difference is that while TVCs on TV is the most effective advertising tool to young people (Ghimire and Rao 2013), Internet is seen as a powerful communication way in Vietnam. With Complexity, there were nothing that are complicated when eating fast food. With Compatibility, Vietnam is attracting a growing number of international franchise to come as a steady growth country in developing Asia (US Commercial Service- United State of America: Department of Commerce 2011). Therefore, citizen there were able to purchase fast food for their meal. With Trialability, there are many successful global franchise chains in Vietnam like KFC, Pizza Hut, Lotteria, Carl’s Jr, Domino’s Pizza, Gloria Jeans Coffee, etc. since 1990s (US Commercial Service- United State of America: Department of Commerce 2011) and recently is Starbuck and McDonald. Today, KFC is the biggest franchise in Vietnam with 125 stores, followed by Lotteria (Tuoi Tre News 2012). Therefore, young people had various opportunities to enjoy fast food. In term of Relative Advantage, Companies use different ways with Marketing Mix (Product, Price, Place and Promotion) to positioning themselves in market share in order to attract consumers. They usually advertise themselves as time-consuming with quality delicious healthy food via slogans and promotional messages on TVCs. For example, Angel in Us Coffee had the emotional message on TVC “Come to Angel in Us Coffee to drink coffee with angels”; Lotteria used the slogan “Hate being late” and KFC with “Finger licking good”. In term of the price, these franchise companies understand the customers’ behaviour and serve them with the variety in choice of value packages such as Happy meal, family combo, kid meal and so on. This also has a positive impact on majority of customers who are family, children, and students because they tend to prefer to share their meal at an attractive price.
Additionally, they linked brand name and images with social values and social norms. To illustrate, Starbuck represented itself as “classy coffee” and McDonald was “the most high-quality fast food in the world”, said by one participant. Meanwhile, companies also promoted themselves as an ideal place for socializing among young people, and hanging out at these places were the popular trend on online newspapers and Fan Pages on Facebook. One participant said: “I see beautiful photos of people who visited Starbuck on Facebook and newspapers. It is an ideal place for meeting friends at the weekend”. This finding totally fitted with the study of Samuels et al (2003) that marketing strategies of Food and Beverage brands usually linked social values and social norms to brand name products.
Not only show as a place for socializing among young people, some food and beverage companies like Highland and Lotteria also attracted people as place for studying and everyday-using, with appropriate price but good quality.
Moreover, via engaging TVCs, which were continue broadcasted in stores, franchises like KFC and Lotteria successfully appeal people while eating at these places. One participant said:” The way they show the food is so attractive and engaging to me. It looks really delicious, refresh with joyful moments”.
The second theme is that advertising strategies of Food and Beverage Franchises create a considerable effect on Vietnamese young consumers. Following the Theory of Planned Behaviour, these companies influenced their target audience’s attitude and social norm by advertising effectively. Firstly, before the opening, it informs and facilitates curiosity among the public by the Internet and social media, especially with McDonald and Starbuck recently. “I am so excited! McDonald is coming to Vietnam”, said by one participant. “I have been waiting for it. Starbuck has appeared in many countries already!” said by another participant. Secondly, it created a favourable attitude towards fast food. In fact, global franchises were warmly welcomed by young Vietnamese people. When I asked them what they think about international food and beverage brands appeared in Vietnam recently, all of them told me it was “great”. Additionally, some words with similar meanings were used frequently like “cool” and “good”. Meanwhile, during the conversation, participants expressed their feelings and opinions with franchises by high and excited tone of voice. To illustrate, one female participant told me that it’s a good sign for Vietnam and for her too: “It makes my life more convenient”. The other male participant said: “It’s great. I have more chances to discover new things from other cultures.”
Participants also showed the influence by social norm during the interview. To explain, most of participants’ behaviours were strongly affected by their friends. Firstly, they know about new franchises via friends by word-of-mouth effect. Secondly, although Internet is the main communication way that inform and advertise for food and beverage franchises in Vietnam, the most effective tool is friend. “My friend tell me that McDonald is very delicious, comparing to other fast food in Vietnam. I will definitely try it!” one female interviewee said. Most of them usually ask friend for the review about a food store, and based on that to decide whether they come to eat or not. “If there is a new food store, I usually ask my friends first about its quality and price before experiencing by myself”. This finding strongly linked to the study of Bisogni, Connors and Devine, Sobal (2002) that Food choice and consumption were influenced by social norm.
Importantly, franchises usually represented themselves as an ideal convenient meeting place. To illustrate, Starbuck was a high-class coffee store and McDonald was a high-quality fast food globally. Therefore, people thought that hanging out to eat at these franchises was seen as a way to socialize with friends. “Although the high price, I still choose Starbuck due to its classy status”, said by 6 participants. This finding was linked to the study of Samuels et al (2003) that fast food franchises influenced behaviour by equating food, price with social statuses and values.
Continue watching TVCs at food stores also facilitated people to consume more food. One participant said: “I have already bought the meal. But when eating and looking at TVC there, I have been being attracted and decided to buy more. People in TVC eat a lot and feel happy”. This finding totally linked to the study of Boyland and Story (2013) and Scuilly et al (2011) that continued exposure to TVCs would influence food choice and eating behaviour.
The combination of quality at High Land and Lotteria (product), sale promotion and price helped building a long-term relationship with consumers. Based on my finding, young people were strongly attracted by sale promotion. It facilitated them to buy more, especially with discount combo or toy-combined, which aimed at children by affecting adults. “My sisters and nieces always want to have these toys. So instead of buying the right amount of food, I try to buy more to fit the requirement and get the toys for them”, said by one participant. This finding was totally linked to the study of Hamlin, Linsay and Isch (2011) that sale promotion helped fostering consumer’s purchasing.
Moreover, young people tended to choose a favourite place based on quality and acceptable price for everyday-using. One participant said:” With everyday using, I need the quality with good price, not the service. That is a place that I can work and study comfortably.”
Conclusion
In the last section, I will answer research questions and provide conclusion with recommendation.
My research question 1 is what advertising strategies are used by food and beverage companies that affect young Vietnamese’s consumption behaviour. By applying the Diffusion of Innovation Theory, these franchises used Marketing Mix Strategy to advertise. The finding indicated that Internet and Social Media were the most effective channel that approached young consumers. Additionally, they used promotional messages that appealed emotion, with Sale Promotion and providing high-quality products for consumers.
My research question 2 is how advertising strategies used by food and beverage companies that affect young Vietnamese’s consumption behaviour. By applying the Theory of Planned Behaviour, franchises affect Attitude and Behaviour of young people as a way to influence their consumption behaviour. The finding indicated that young people had a favourable attitude toward global franchises. They were mainly informed and got awareness about franchises via social media and Internet. Additionally, Social Norm was considerably influential to young people. Moreover, despite of the high price, most of them felt curious and wanted to try to eat at new franchises due to high status and emotional messages. With sales promotion but good quality products, franchises such as Lotteria, High Land and Domino have been always voted as the best choices for everyday- using.
Based on my answers, I suggest that Food and Beverage Franchises continue to focus on sale promotion and improve the quality of product as effective ways to attract and get more loyal consumers. Additionally, they also need to use internet and social media to approach and engage young people, make them involve in the activities of company’s campaigns/ programs. Therefore, companies can affect positively people’s attitude, get viral effect and build long-term relationship with consumers.
Moreover, The two theories: Theory of Planned Behaviour and Diffusion of Innovation Theory were effectively use in analysing advertising strategies with attitude and consumption of young people toward food and beverage franchises.
There are 2 limitations of my research. The first limitation is the relation with participants. All of them are my friends. Therefore, they might have some similarities in personalities and behaviours. Additionally, they might feel more freedom to talk and share opinions with me so it probably quite different compared to when they talk to strangers (other researchers). Secondly, there is small sample size. 7 people I interviewed were not yet representative for generalization. Therefore, it might not accurate. However, my research found out the behaviours and consumption of young people towards advertising strategies used by food and drink companies. It is necessary for researcher and producers to understand why and how people make consumption decision as an initial step for a good marketing strategy. “Tastes, behaviours and incomes are changing rapidly” (Weingartner 2012). Consequently, understanding human consumption behaviour helps marketers predicting people’s reaction. From then, marketers can find better ways to communicate and advertise effectively, especially in designing and launching new products. Based on this limitation, I’d recommend future researches should change a little bit in Methodology section that not only interview more young people, but also interview the Advertising Companies to have a wider knowledge and understand more deeply about the advertising strategies and tools.
