Date : 2013.11.15

Prepared by : Ms Doan Thu Thuy  (thuydoan.kotra@gmail.com)

 

I. Pizza Market Size & Trend in Vietnam

 

1. Overview of Food Market in Vietnam

  - Economic conditions in Vietnam have improved substantially in recent months, and this chimes well with our view that the country will see a relatively strong uptick in economic activity in 2013, with real GDP growth forecast to come in at 7.0% in 2013. However, we expect this growth to be highly uneven at the industry level, with some sectors being in a fundamentally stronger position to outperform by a considerable margin. And we expect private consumption to grow at a robust pace of 5.6% in 2013. Actually, towards private consumption, despite the global and local economic downturn, Vietnam’s food and beverage consumption still rises rapidly in both volume and quality, exposing a highly potential sector for producers and investors. Deputy Minister of Industry and Trade Ho Thi Kim Thoa said that Vietnam’s food consumption is forecast to grow by 5.1% a year to an estimated US$ 29.5 billion by 2016. According to the latest report on food and beverage of BMI, food consumption is forecast to experience strong growth in Vietnam over the period from 2010 to 2017. During the time, food consumption is assumed to grow by an impressive 61.6% in local currency terms.

Figure 1: Food Consumption in Vietnam (2010 – 2017)

  - The main drivers behind this strong level of growth will be the rising affluence and disposable incomes among Vietnamese consumers, and the ongoing expansion of the country’s mass grocery retail sector. However, it should be noted that rising prices will also play a part in this increase. Specifically, in fact, income levels in Vietnam are a long way behind developed economies and consumer purchases remain largely centered on food staples and daily necessities. However, as incomes start to accelerate off a low base on the back of sturdy economic growth, consumer tastes and preferences are expected to calibrate towards the higher-value food and beverage segments, which will likely guarantee a receptive and growing audience for branded food and beverage products in the medium term. Secondly, the massive potential provided by the burgeoning middle class in Vietnam is already attracting the sights of major consumer facing players in the country. Additionally, functional food products are expected to garner stronger appeal among Vietnamese consumers over the coming years. Given the nutritional heal benefits of functional food, these products have witnessed strong demand in Vietnam over the past few years in line with a growing shift towards health awareness.

 

2. Franchising Model in VietnamToday, as the world is becoming ever more mobile, the opportunities for franchising to serve travelling consumers are growing across the globe. Franchising has taken hold in Asian markets such as Thailand, Hongkong, China, etc. After joining WTO, particularly when Vietnam eassed restrictions in the retail market to fulfill its WTO commitments, it has been seen as very potential market for franchise business model.

 

2.1. The growth of franchising business modelAlthough being quite new business method in Vietnam, it shows great opportunities and actually attracts several companies to invest in. About a decade ago, franchising in Vietnam by some way was hold back due to the lacking of its own legal framework. The establishment of Franchising Law in 2005 (basically Section 8, Chapter VI, Commercial Law 2005) has already marked a turning point in the development of the business model in Vietnam. Before establishing the law, there was only 23 franchising chains in Vietnam, most of which are run by franchisors, not franchisees. Just 5 year later, the figure increased rapidly, achieving 96 franchising chains (both foreign and domestic ones), 4 times more than the number of chains built in 10 year before.

 

2.2. Challenges and OpportunitiesAlthough it is widely acknowledged that Vietnam is such a potential market to develop franchising, it does not mean that it is totally free and easy to implement the work. The following are some listed challenges and opportunities for both local and foreign enterprises intending to apply the model. Towards challenges, it should be noted first that Vietnam has a long history, unique and different cultures between 54 ethnics locating in different geographic and economic conditions. Definitely, the market is not easy to understand thoroughly, especially in food industry which is relevant to subjective judgement, taste and habit of consumers. Secondly, the foreign franchisor are supposed to face several systematic problems in Vietnam market including not yet adequate infrastructure, lacking knowledge of residents and local companies on franchising. Notably, several experts share that franchising in Vietnam is very difficult to be implemented as master franchising. Currently, most franchisee companies are built as product distribution and trade-name franchising ones because they are lack of capital, management capability, standardized franchising process and suitable long-term strategy. Therefore, finding a suitable partner in Vietnam requires much time, money and effort. However, undeniably, Vietnam has its own attractions thanks to the positive economic growth of average 6-7% per year. Besides, it is one of top 12 countries attracting foreign development investment (FDI). The strong development of retailing market also attracts much attention. Recently, Vietnam retailing market keeps the pace of development at the rate of 20% each year. It also ranked 1^st and 6^thposition in respectively 2008 and 2009 in terms of attracting retailing investor between 30 emerging countries. According to the report of GSO in 2012, the retail revenue achieved approximately 100 billion USD, counting for 16% of Vietnam’s GDP. As forecast, from now on to 2014, the figure can be risen around 23%. Last but not least, Vietnam has young population with more than 65% of population under 35 years old. They can be a good skillful labor force and can also form a potential and trendy consumer generation in the future. 2014 is believed to make a food franchise market boom in Vietnam.

 

3. Fast Food Market in VietnamCurrently, there have been not yet any reports on pizza market in Vietnam because of the limitation of collecting data in Vietnam as well as the small market share of pizza. Therefore, pizza franchising market size and trend can be seen through the development of fast food industry in Vietnam. There are 3 main points describing fast food market in Vietnam. First, Vietnam has its huge potential to develop food service industry thanks to its young population and western lifestyle affecting them. Besides, fast food in Vietnam is still far from maturity, especially in other cities except Hanoi and Ho Chi Minh. Secondly, it is also expected that fast food will see the arrival of many more international players. Competition will be more intense. Thirdly, rising awareness of health and wellness issues might pose a threat to the development of fast food in Vietnam over the forecast period. Fast food is always perceived as unhealthy in general and thus might suffer from this issue.  To be details, fast food market including pizza and spaghetti restaurants has owned itself significantly high and stable growth rate of around 26% - 30% annually. In 2012, total fast food revenue achieved 870 billion VND, approximately 43.5 million USD. However, the major market share goes on foreign franchising enterprises such as KFC (USA), Lotteria (Korea), Jollibee (Phillipines), Pizza Hut (USA), etc. According to the latest report of FTA, pizza segment have small proportion in fast food products portfolio and are facing to severe competition with other fast food brand and several newly-enter pizza brand like Zpizza, Mr. Pizza, Pizza Inn, Domino’s Pizza… The major fast food revenue is accounted for continuously impressive revenue of KFC, Lotteria and Jollibee (more than 80%).

 

There are currently some trends in this industry as followings

  - In 2011, fast food continued to register growth of 26% in current value terms due to various reasons. Firstly, despite the steep increase in overall food prices, fast food was able to maintain stable prices, thus making dishes more affordable to consumers. Secondly, Vietnamese were leading busier lifestyles, which helped to increase the demand for fast food. The modern image of fast food outlets also attracted many teenagers and working adults.

  - Chained bakery products fast food registered the fastest growth of 112% in current value terms in 2011. This is due in part to the small sales base of chained bakery products fast food in Vietnam. Additionally, growth was also supported by the arrival of international brand Subway. In 2011, the first Subway outlet in Vietnam was officially opened at District 1, Ho Chi Minh City, attracting much consumer attention, especially from teenagers and young adults.

  - Chained burger fast food also posted robust growth of 65% in current value terms in 2011. The growth of burger fast food was supported by the arrival of international brands such as Carl’s Jr and the rapid expansion of the leading players such as Vietnam Lotteria. Lotteria gradually increased its transaction counts and number of customers per stores. It was also very active in marketing activities (lucky draw, special price offer), as well as being innovative in terms of new product development like fried chicken with bean sauce.

  - In terms of types of fast food, Asian fast food was the most popular fast food type in the country over the review period. Asian fast food was considered to be suitable for Vietnamese tastes, affordable to students and office workers. 2011 also saw the rise of VietMac, a local chained Asian fast food brand, selling rice burgers with traditional Vietnamese flavours.

  - In addition to Asian fast food, with the success of KFC, chicken fast food was the second most popular type of fast food in the country. Unlike in other developed markets where chicken fast food is considered as a convenient meal, in Vietnam it is perceived as something of a luxury. Families and friends usually visit KFC for a treat, celebration or special event.

  - In 2011, independents continued to dominate fast food in Vietnam in terms of number of outlets, with 96% volume share, of which Asian fast food dominated. However, chained fast food recorded faster growth in terms of number of outlets in 2011 at 24%. This was due to rising consumer awareness toward chained fast food as a result of its pleasant ambience, its high quality food and especially its good reputation for food hygiene.

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II. Demand Trends

1. Customers’ Habits of Using Fast FoodA recent report by Vinasearch has surveyed nearly 300 people to identify the habit of using fast food of Vietnamese people. Obviously, besides the objective reasons such as young population or western lifestyle effect, habits play very important role in customers’ decision to buy. By understanding their habits and behaviors, the food supplier can build detailed strategy to win or adjust or create customer’s habit and then demand to buy.

 

1.1.  FrequencyAccording to a survey carried by Vinasearch in November 2012, 73.6 percent of 431 persons surveyed did use fast food in the last three months. The number of female consumers is a bit higher than male, which accounts for around 56.8 percent.

 

  - In addition, the average number of times going to fast food stores of the people surveyed is around 1 time in 2 weeks. One third of the number of persons surveyed usually goes to fast food stores two or three times a month.

 

 

1.2. Occasion60.7 percent of the people asked have the tendency to go to fast food stores and restaurants when being invited by others. “At the weekend” and “Random times” are also popular reasons with 51.8 and 50 percent respectively. Only 19.5 percent of people surveyed use fast food when feeling hungry and that can be explained by the fact that fast food in Vietnam is quite expensive and Vietnamese consumers are still not willing to use it regularly.

 

 

1.3.     TimeThe most popular time of day to use fast food is after 6 PM. Eating fast food in the evening is the habit of more than half of the people surveyed. Besides, Hanoi consumers tend to use fast food in more flexible times than consumers in Ho Chi Minh City, who mostly go to fast food restaurants in the evening.

1.4.    Partners

71.7 percent of the people surveyed usually go to fast food restaurants with their friends or colleagues. Lovers and relatives are the next popular types of partners, which account for 62.1 and 47.4 percent respectively.

 

1.5.     Ready to pay BudgetThe average amount of money paid for fast food varies among different fast food brands in Vietnam. Pho 24 (a Vietnamese brand) has the lowest price and consumers often pay around 50,000 – 70,000 VND per person. The amount of money paid for middle brands such as KFC and Lotteria is about 70,000 to 90,000 VND and that number of other high level brands such as Pizza Hut reaches 110,000 to 150,000 VND per person.

 

2.    Brand Identity

2.1.     PopularityKFC, Lotteria and Pho 24 are the top three brands which gain the best awareness among Vietnamese consumers.

·        KFC is currently the leader of fast food market with the popularity rate of 98.2 percent.

·        Lotteria ranks second with 5.7 percent less than KFC. 92.5 percent is also a very high rate of recognition among fast food consumers.

·        Pizza Hut is now the most popular brand of pizza in Vietnam market with 77.5 percent. Some other pizza brands such as Pizza Inn, Al Fresco’s and Dijon’s have popularity rate of 32.5; 18.1 and 12.2 percent respectively.

 

 

2.2.     Most chosen brandsKFC and Lotteria are the two favorite fast food brands for all three age groups from 16 to more than 30 years old. Besides, Jollibee ranked second only after Lotteria when it comes to age group 24-29 years old. The group of consumers from 30 years old and over tend to prefer Pho 24 only after KFC and Lotteria.

 

2.3.     General Satisfaction11.8 percent of the people surveyed feel very satisfied and 67.3 percent feel satisfied with their most favorite fast food restaurants, while there is only around more than 1 percent of consumers feel dissatisfied.

III. Competitors AnalysisAlthough the potential is huge, it is undeniable that the competition is becoming more intense with the arrivals of several international experienced brands as well as dynamic understanding local brands. Towards pizza market, the competitors can be divided into 2 groups: direct competitors and indirect competitors

 

1.  Direct Competitors

  - Direct competitors are companies that produce a virtually identical good or service that is offered for sale within the same market. In pizza market, the direct competitors are pizza and spaghetti restaurants chains including Pizza Hut, Pizza Company, Domino’s Pizza, Pepperonis & Al Fesco, etc.

 

The pizza chains themselves have several advantages

  - First, they have the pioneer advantages. When they first entered the market, there were excitement and newness to pioneer brand. They used to be the only choice of customer. Therefore, year on year, without any competitor noise, they have built and achieved unique position, created loyal customers and owned best places to locate their image. Obviously, the pioneer has the opportunity to create a branding strategy that is difficult to attack for the latecomers

  - Secondly, because of longer time implementing business in Vietnam, they understand the habit and behavior of local customers. Besides, they have also tailored some products based on the local’s taste such as the case of Domino’s Pizza or the presence of fried rice of Al Fesco’s menu.

 

Besides, there are still some disadvantages that the newcomers should utilize

  - First, after such a long time after entering, they lose the position as trend-setter that they used to be. Young customers usually have curiosity on new and trendy brands.

  - Secondly, although making many efforts to customize the products, by same ways, customers may get bored by menus without changes of the brands.

  - Currently, Pizza Hut is the biggest direct competitors. With ít strong brand and powerful financial capability, it has been leading the pizza market segment in the domestic fast food market. The chain had had 34 shops in Hanoi, Ho Chi Minh City, Dong Nai, Binh Duong and Can Tho. It also has five Pizza Hut Delivery branches in charge of delivering products to customers in Hanoi and Ho Chi Minh City.

 

2.  Indirect Competitors

  - They are suppliers of different types of products that satisfy the same needs. For example, a pizza shop competes indirectly with a fried chicken shop. Obviously, competing with indirect competitors in Vietnam is much more intense because of several diverse dished offered. The main indirect competitors for a pizza chain include KFC, Jollibee, Lotteria, Burger King, VietMac, Starbuck, BBQ, etc. The strongest point to compete in the market is that they have diverse dishes to offer. Undoubtedly, fried chicken is easier to get popular than pizza, which is supposed to be Italian food with western taste and flavor that normal Asian have not get used to.

  - Foreign players dominated chained fast food, while domestic players overwhelmingly dominated independent fast food. However, two recent years witnessed the rise of Vietnamese chained fast food – VietMac, enhancing the local competitive standpoint. Local players had advantage of understanding local tastes and habits, thus gaining great support from Vietnamese customers

  - KFC Vietnam remained the leading player in fast food in the country recording 15% value share, gaining tow% points. KFC was one of the first international players in enter fast food in Vietnam. The company’s main competitive advantage lied in its affordable throughout the countries

  - Mesa Asia Pacific Trading Services Co Ltd with its Carl's Jr's outlets recorded the fastest growth rate in foodservice value terms in 2011 mainly due to its emergence from low base. Besides Mesa Asia Pacific Trading Services Co Ltd, An Minh Ice Cream JSC with its Swensen’s outlets also recorded strong foodservice value sales growth in 2011. Although Swensen’s menu had much more expensive prices compared to independent ice cream fast food, many customers, especially middle- and high-income customers, were still willing to visit and eat at Swensen’s outlets because of the premium quality and unique ice cream items.

  - 2011 welcomed the arrival of Carl’s Jr, Popeyes Chicken & Biscuits, and Subway. The participation of these players is expected to intensify the competition not only within fast food, but also in the whole consumer foodservice environment, as these players are known for their famous brands, good quality and services. Fast food in Vietnam still proved to have hugepotential and remained far from maturity at the end of the review period.

  - Understanding the increasing threat from the brands, pizza and spaghetti restaurant chains are now working on expend their menu, offering many side dishes such as fried chicken, baguette, fried rice and burger also. However, because, these dishes are not their strength, the flavor and taste have not yet gained any attention from customers. Despite of that, it is believed to be the right way to win the convience demand of customers.

 

3.  Major players

	Nationality:	United States
	Franchise Partner	IFB Holding (Vietnam) and Jardine Restaurant Group (Vietnam)
	Number of Branches	34
	Entering Time	Jan 2007
Description	The chain is currently the leading pizza chains in Vietnam with biggest number of opened branches. It has also earned the most poplularity and customers’ awareness for a pizza chain amongst several fastfood brands. Pizza Hut’s shops have been designed with the US style-cozy, suitable for families and friends to get together.

 

	Nationality:	United States
	Franchise Partner	Imexpan Pacific – IPP Group
	Number of Branches	11
	Entering Time	Nov 2010
Description	The chain is the second biggest pizza brand in US and leading the home delivery pizza segmentation. In Vietnam, the chain are opening their branches located in good place and near the crowded area to raise the awareness of customer. Additionally, it should be noted that they have built very effective low price to win the market.

 

	Nationality:	Hongkong
	Franchise Partner	Alfesco’s Group
	Number of Branches	29
	Entering Time	June 1996
Description	The chain is the pioneer in the North of Vietnam, from 1996. It has 2 brands namely Al Fresco’s (big food serving portion mainly for big groups) and Pepperonis (smaller food serving portion with more suitable price) Between 29 restaurants, Al Fresco’s has 19 branches and 10 goes on Pepperonis

 

	Nationality:	United States
	Franchise Partner	KFC Vietnam Co., Ltd
	Number of Branches	125 (in 2012)
	Entering Time	1997
Description	On average, each year, the chain newly opens 20-30 branches, become number 1 fast food brand in Vietnam. Since its establishment in Vietnam, they have stick their image with chicken. Moreover, they have some changes in menu to win the taste of Vietnamese and some upgrade on design and process to become more familiar to customers.

 

	Nationality:	Korea
	Franchise Partner	Lotteria Vietnam Co., Ltd
	Number of Branches	124 (in 2012)
	Entering Time	1998
Description	According to Tuoi Tre 2012, Lotteria is aiming to open frequently 30 stores each year. Between them, on third are located in the Southern. Entering Vietnam market, as the similarity in dining culture as well as Asian taste, Lotteria Vietnam quickly attracts the taste of Vietnamese by the outstanding flavor of modern Korean fast-food.

 

IV. Competition Strategy

1.  SWOT analysisThe below are some listed SWOT analysis for any companies doing business on food in Vietnam.

Strength	l The food processing sector accounts for a sizeable proportion of industrial output and GDP, with the sector attracting significant foreign investment l Vietnamese consumers, particularly the young and affluent, are interested in brands. Accordingly, renowned Western products backed by investment in marketing and promotions tend to have highly successful launches. l The wealthy urban centres of Hanoi and Ho Chi Minh City now provide highly receptive consumer audiences. Large and diverse domestic agricultural output aids the stability of ingredient supplies and prices for local producers - a vital strength during this period of global volatility.
Weakness	l There are wide income disparities between urban and rural areas, and local consumption patterns vary significantly according to income. l The country's agricultural sector has been criticised for being too slow to adapt to new technologies to be globally competitive in the long term, although the government is working hard to address this. l Vietnam's infrastructure is still weak. Roads, railways and ports are inadequate to cope with the country's economic growth and links with the outside world. l The lack of white goods among large sections of the consumer base slows down the development of the high-potential dairy sector
Opportunities	l Accession to the WTO, in January 2007, will continue to benefit Vietnamese exporters, with the gradual removal of market barriers and trade restrictions set to increase competition. l Rising income levels and changing lifestyles, particularly in urban areas, are increasing consumer demand for snacks, convenience and luxury food items. l Vietnam's large domestic market, growing export opportunities and low labour costs, as well as the prospect of acquiring newly privatised food companies, offer further investment opportunities. l The country's agricultural sector is in need of significant investment, and willing investors can expect assisted entry. l A growing tourism sector fuels interest in convenience categories.
Threat	l Vietnam's WTO membership may result in smaller companies unable to cope with the increased competition being forced out of business. l Elevated agricultural commodity costs will remain a risk for the profitability of processed-food manufacturers; farmers themselves also view this as a threat. l Rising unemployment levels are taking their toll on consumer confidence.

 

2.  Marketing StrategyUnderstanding SWOT analysis, each food enterprise will build for their owin strategy to win the market. The following are collected information on several

 

2.1. Products

  - Pizza products will be analyzed to 5 levels of the product to understand thoroughly how the competitors fight each other and what points need to be focus on.

Core benefit	It is the inner need that urges the customer to buy something. In the case, all the pizza chains in Vietnam now of course have achieved this level of product that they provide something to eat, which is very essential to live.
Basic product	The basic product that might satisfy the inner needs of the customers. Currently, most pizza chains mention detail ingredients in their menu. Basically, the menu is quite similar between different brands. Most companies serve basic flavor like Margarita, Hawaian, Veggie or Seafood. The common favorite ingredients of Vietnamese are seafood, beef, onion and pineapple.
Expected product	The properties that the product has and that are absolutely necessary for the consumer to think about buying. In the case of Pizza Maru, the natural and well-being ingredients should be have the spotlight to win the other fast food competitors supposed to be unhealthy. Actually, currently, only Zpizza emphasized on their ingredients which are all “fresh”. But there message is not clear and lack of evidence proved in the dishes Besides, it is easy to find out that Pizza Company have stronger spicy while Pizza Hut charm customers by their thick and stuffed crust.
Augmented product	Those attributes of the product that can differentiate it from the competitors’ products and might provide a slight  advantage over them. These may include the brand name, the design, the packaging, etc. KFC has built their take away package for all products, very convenient for customers. Pizza Company has expended their menu, covering both fried rice, fried chicken and the chain also attached with Swesen, which offer a full serving set for customers. They just need go the Pizza Company and  have all choices. Meanwhile, Pizza Hut has gained their reputation for very careful, polite and professional of staff.
Potential product	It is the final product that is available on the market and that the consumers can buy. This includes all the additional values and augemtnations. The level of product can be seen in smart combo building of Pizza Hut, deviding clearly into 3 set based on the number of people in each group.

 

2.2. PriceAs the result of survey above, each pizza meal will take the customer around 150,000 to 200,000 VND. They can divide and arrange their size, their combo, their item, their set in different way but finally, customers all pay around the amount. The following are price list of Afresco – the affordable and popular pizza brand and S-box – the local very cheap pizza brand so that you can form basically the picture.

Pizza	Picture	Price
#1 MARGARITA Tomato sauce, cheese.		Medium: US$ 8.5 Large: US$ 11.5
#2 HAWAIIAN Ham, Pineapple, tomato sauce, EXTRA cheese		Medium: US$ 9 Large: US$ 12
#3 MARINARA Prawns, squid, fish, clams, tomato sauce, EXTRA cheese		Medium: US$ 9 Large: US$ 12
#4 VEGGIE Zucchini, mushrooms, tomato, corn broccoli, tomato sauce, cheese		Medium: US$ 9 Large: US$ 12
#5 CHICKEN DELIGHT Mexican chicken, onions, bell peppers, jalapenos, tomato sauce, cheese		Medium: US$ 9 Large: US$ 12
#6 OCEANIA Tuna, clams, onions, bell peppers, corn, thousand island sauce,cheese		Medium: US$ 9 Large: US$ 12
#7 PEPPERONI Lots of Pepperoni, sausages, tomato sauce, cheese		Medium: US$ 9 Large: US$ 12
#8 AL FRESCO'S SPECIAL Ham, Pepperoni, chili beef, bell peppers, onion, pineapple, tomato sauce, EXTRA cheese		Medium: US$ 9 Large: US$ 12
#9 SUPER SUPREME Ham, bacon, chicken, mushroom, bell peppers, hickory BBQ sauce, cheese		Medium: US$ 9 Large: US$ 12
#10 BEEFY Pepperoni, ham, salami, chili beef, tomato sauce, extra cheese		Medium: US$ 9 Large: US$ 12
#11 SEAFOOD DELUXE Prawns, scallops, crab sticks, onion, mushroom with a spicy sauce, cheese		Medium: US$ 9 Large: US$ 12

 

2.3. PlaceMost companies doing business in the industry choose to direct method to distribute their product, which is opening restaurant. Additionally, because of the rising demand on home delivery, all pizza chains offer the service.

  - Toward restaurants, the pioneer like KFC, Lotteria and Pizza Hut have already owned the best place located in Hanoi and Ho Chi Minh City. Even a giant Domino’s Pizza is now searching and locating their branches at popular venue, accepting smaller area to earn more awareness of customers. However, with medium and small brand, it is recommend to find small place and utilize the power of take away service. Actually, currently, not yet any brands gain reputation for quick delivery. Normally, the pizza chain cannot give out the exact time to deliver food to customer, only around half an hour or 40 minutes. Actually, many famous chains miss their own time target.   

 

2.4.  PromotionThe promotion of pizza business may cover all types of marketing communications. The methods include advertising, which is conducted on TV, radio, cinema, online, poster sites and in the press (newspapers, magazines). Other promotional methods include sales promotions, point of sale display, merchandising, direct mail, loyalty schemes, etc. Pizza suppliers also can develop a campaign which uses several of these methods in a way that provides the most effective results. For example, TV advertising makes people aware of a food item and press advertising provides more detail. This may be supported by store promotions to get people to try the product and a collectable promotional device to encourage them to keep buying the item.

  - Personal selling is also an effective tool for building buyers’ preference because personal interaction allows the sellers to get feedback and adjustments if required. Pizza Hut is an outstanding brand when it comes to interaction between their employees and customers. The good performance of Pizza Hut’s employees is one of the reasons for their success and recognition.

  - Pizza suppliers also have paid more attention to online promotion in the past 2 years. Currently, taking advantage of social network is obviously an effective way to be closer to the consumers. Almost every pizza brands in Vietnam has had their own informative and colorful websites; some of them even have facebook or other social pages to promote the brands online.