A marketing examination for Hard Rock Cafe

"Product strategy is crucial to achieving competitive edge"(Jay and Barry 2008). The strategies include selecting, building and defining products and services and transition it to production or sale to customers. By answer fully the question of which products or services the company select and offer, and how it be designed will determine company successful or not.

HRC focuses primarily on restaurant sector which functions in food production, products of souvenir retail and specialist services in advice, ambient and service in the food. For food, HRC provides an array of quality foods, the majority of them result from America: Burgers, steaks, sandwiches, nachos, fries, ribsand continuously change food to meet customer need as the HRC's Chef said "modifying the menu from typical American burgers and fowl wings to add higher-end items such as stuffed veal chops and lobster tails". HRC always serves its customers with well-prepared drive, nice appearance in unique music and ambiance. HRC don't want to localize the meals in the united states on which HRC stand by keeping the original food with original flavor and preference.

Beside that, they also offer many souvenirs in retail shop inside restaurant, it is convenient for customer buy and bring home goods with HRC emblem. The music also is very unique, first step arriving inside, customer feel fully of rock and roll music, HRC feel that approaching with HRC caf, customers enjoy not only food or drinking, but also the unique memorabilia which is high value.

Base on what HRC deliver to its customers, without doubt, those will be the differentiations creating the competitive advantages, HRC could be unrivalled in Vietnam with the same segmentation. However, not many customers in Vietnam who like rock and roll music or oversea food, so that, local customers may be not the prospective customer of HRC,


Recently, many companies acknowledged that quality is a very important and essential part for its expansion. Indeed, quality connects closely to client satisfaction, reputation, low priced, productive which driving company's earnings. HRC firmly deployed quality management system in their chain of restaurants for ongoing improvement. The product quality system is executed from input, processing and end result. Finally, HRC brings the best services and foods for customer, they perform the study on every customer about quality of services and food who have experienced at their restaurant, the survey have 7 scales, they consider services and food being failure if the study results below 7. It is absolutely impressive with their perfect expectation on what they offer to their customers.

Process and capacity design

With huge foods are served per day meaning large amount of customers they can serve. 400 employees were employed in one branch like Orlando, or 100, 000 meals were served per day on complete HRC in the world, It is clearly that all functioning activities from insight to productivity must be placed in successful and optimal procedures from purchasing, storage space, control, delivery to customer. Optimal process means lower cost, high quality and customer satisfaction. Each process must change with customer requirement and structure designed.

Process-focus is process strategy of HRC because the restaurant attribute. Base on operations designed, HRC determined how enough time and how many people requiring for completion sole process to deliver goods or service to customer. So total capacity finally determine exactly, that is just how many customers HRC could provide per day or each hour.


Globalization has divided economic and physical border. Many companies develop its business to globe, so location decision strategy become the very important for success or failure of an company as Jay and Barry(2009) mentioned: " location has a significant impact on the overall risks and gains of the company"

HRC's location decision strategy is the long-term arrangement in rent up to 10 -15 years, they first of all search the country and then go to metropolis and go to exactly place need to lease by careful consideration and research. As Mr Oliver Munday mentioned that, looking at the marketplace they going to increase into is a critical pursuit since it really underwrites and underpins the future success of the Hard Rock and roll brand.

When selecting the location, HRC carefully considers some factors below

Political risk: Consider the safety of economic environment, steady of political organization. Money risk: Depreciation of current, exchange rate. Sociable norm: People want to publicly show their rebelling with rock and roll enthusiasm or not,

Brand fit, sociable costbusiness procedures also were carefully considered.

A market research and market analysis were conducted after one location decided on, those are demographics, visitor market, transportation, restaurant and evening club, real estate market, comparable market evaluation


Optimal structure create long-term productive functions as Jay and Barry(2008) advised: "The objective of layout strategy is to build up an efficient and efficient design that will meet the firm's competitive requirements".

In HRC, layout provides a highly effective flow between pub, kitchen and dining area, reducing the holding out time, reducing transportation.

For placing your order, they computerise purchasing system by putting purchasing computer at each nook of restaurant, their staffs simply just come and enter ordering data to this computer rather than going to the kitchen, this helps to lessen unnecessary travel to pass purchases to kitchen by walking on a regular basis,

Layout makes people feel comfortable to truly have a standard view to other or easy to take pleasure from live music. The structure in each branch could vary but have to be suited with each process designed, make sure it is effective and productive. At HRC HCMC, all customers can easily see shows on the stage, big premises but fast portion. Well designed design creates warm and pleasant ambiance which would work with eastern culture and style.

Human reference and Job Design

HRC regularly implements its HR strategy from recruiting, training, staffing, payment to promotion. Requirement of applicant are skill and love for rock music. Successful candidates need to be received 2 days and nights of training before enter to work, plus they received the wallet-sized called "Hard Rock value" which they carry all the time,


Candidates are essential not only on the skill in work, but also rock music love. They have to own the ability to tell story, connect well with customers, bight, positive-attitude, self encouraged individual,


Two first days training before working and they will get "HR value", and period training were sent to staffs for improve their skill and knowledge, it helps to develop individually and professional. After training, new comings are designated in different careers and position: Waiter, kitchen, dealer, staffs were trained specific course follow job-oriented interactive, constant training,


- 60% professionals were promoted from internal. The advantage is not taking time for training a whole lot. Their staffs received an opportunity to develop their career when working in HRC, so they will engages with company and being motivated to try the best for company.


Payment foundation on performances which they achieved previous month, each worker have their analysis in period, they have the achievable targets, if the goals were achieved, certainly, they will receive the bonus.

Human resource is very important to the survival of an company. Today, HRC also considered their as long-term advantage, not merely simply retain the staff, that is the long-term investment. Real human resource is crucial for success of a service company, so HRC highly targets their human source of information to have the competitive benefit.

Creating a culture in work, good environment, good condition, each staff feel proud of HRC when they help.

Supply chain

Nowadays, outsource trend become very popular with many company in world because of its benefits as useful and effective inventory management, HRC carefully chose the trained suppliers which provide materials and goods constantly in quality and number. On the other hand, HRC hires AVICON - a specialist logistic company - for their retail attire and gift businesses, HRC just focus on their main business, the benefits after outsourcing are: Reduced warehouse(in THE UNITED STATES) space by 44 percent, reduced procedure cost by 20 percent, improved upon service level by 22 percent, and optimized travelling, distribution network(Avicon, 2003)


By outsourcing and correct forecast, HRC reduce significantly their inventory. They use long-range, intermediate-term in forecasting like food materials as beef, chicken, and pork. Short-term sales were forecasted every month by caf. They have system called "Point of Sale", this system captures all data transfer in Hard Rock caf all over the world, and then transfer to its brain quarter, this data is very critical for their headquarter and each branch forecasting. The difference between forecast and real are inspected regularly and given correct action is applied. By this way, maybe it's said that their forecast is very appropriate and efficient. Normally, they will insufficient foods, materials or huge inventory making high cost, lowering services provided


At HRC, the daily forecast is shattered into hourly deal, this will drive short-term routine, an hourly forecast of $5, 500 in sales results in 19 workstations, the work will be allocated to wait staff, hosts, bartenders, and kitchen staffs with how many staffs needed to mobilize.

They equipped a computerized scheduling software plugs in people predicated on their availableness. So they performed the best usage on the resources and make procedure better.


Like some other companies, HRC understand that maintenance is an essential to maintain and enhance the performance. Jay and Barry(2008) said that maintenance make the machine reliable, reduced misuse, anti-disruptive, generally, it can help to maintain the capability of the machine, HRC has a plan to keep up regularly their kitchen machines, equipments and overall system to keep reliable and simple operating to provide best services and products to its customers.

Challenges and Opportunities when HRC broaden it business into Hanoi,

Selection a location is very important for the company's success, so before expanse its business to Hanoi, HRC carefully considers the location decision strategy as long-term investment with some factors: Politics risk, currency risk, communal norms, brand fit, cultural costs, business practice and mutually some other factors below

Demographics (local, city, region), with trend analysis

Hanoi is the administrative centre of Vietnam, the biggest city in the north and second big city of the country, it has the population of 6, 913, 161 people, and the density is 2, 069 people per square kilometer. Most of residents are in urban, the highest population density is in Region Dong Da with 38, 071people per square kilometer, the second is Hai Ba Trung area with 32, 346 people per square kilometer, Hoan Kiem is the third with 29, 596 people per square km(Laodong, 2011), Hanoi's inhabitants will continue increasing because it is the ethnical and economic, political center which is attractive place for graduated students, business people, visitor arriving and staying, Hanoi have the next high populace and density(standard statistic office, 2009) which may have some cons: Traffic jam, difficult to control the interpersonal and security problems, pollution and possess some advantages like: Big potential prospects, abundant workforces, two these advantages are really good for Hard Rock caf when it's in Hanoi,

Economic Indications: 2010, Hanoi has each year with impressive growth with GDP increase 11 percent compare with 2009, and income per capita come to 1950usd(vneconomy, 2010), the more income, the more money customer put in, so HRC considers this factor is an opportunity.

B. Visitor Market, with tendency analysis

1. In the entire year of 2010 International people to Hanoi is 1. 7millions, 62 percent increase in compared with 2009(Vietbao, 2011), most of them come from China, UK, US, Germany. the mark customer of HRC is holiday, 70% of these customer are vacationers. No doubt, this is one of the advantages when Hanoi are more attractive foreign visitors because it have many interested celebrations, heritages, famous landscapes, very long time traditional and culture. Furthermore, Hanoi is also an financial middle in North of Vietnam, so the majority of international and local business firm have its representative office in Hanoi, this is a opportunity for business visitors coming Hanoi,

Hotels: There are several five actors standard hotels: Hanoi Hilton Opera, Sofitel Metropole, Melia Hanoi are situated in center near by Hoan Kiem lake by just walking distance to shopping area and old quarter. Beside that visitor may easily find many small to three or four stars hotels which are also in around Hoan Kiem lake and in old quarter like: Hoan Kiem lake, Mai Kid, Phu Long, Hoa Binh palace, Prince, Sunway hotel. . they are the perfect, cheap, clean, convenient place for visitors staying, obtaining, shopping Hanoi.

Convention Centre: international standard nationwide convention middle was built in 2004, and Vietnam was the successful web host of many international summit: 14th APEC summit, 17th ASEAN summit, this is an opportunity for Hanoi welcome many international visitors.

Entertainment: Many choices for visitors captivate in Hanoi like: Modern and traditional theater, Hanoi big theater, cinema, karaoke, very special skill is drinking water puppetry exhibiting at the Thang Long Drinking water Puppet Theatre, Thang Long theater, Hanoi memorial, French cultural centre,

Sports: Multi-functional My Dinh stadium locates in the south-west of city and its own capacity is up to 50, 000 people, about 10 kilometers definately not center. Where Vietnam end up being the host for many international sport tournaments: Sea Game, AFF Suzuki glass - the sports competition planned by ASEAN Sports Federation

Retail: The precise characteristic of most area in Vietnam is many retailers on 2 edges of street (street-front store), so coming to Vietnam, Guests can see many convenient shops, so it is quite easy for customers shop and go. So far, in middle of Hanoi, a occupied trading in traditional town (old quarter) which locates nearby Hoan Kiem lake, come here, tourists can see the initial of architect of old Hanoi with 36 roads which are incredibly narrow and occupied. Each neighborhood have particular trading focusing on specific goods and the name of every street reflects the sort of merchandises of its offering, beside shopping, tourists can certainly enjoy local food in a restaurant, pub, pub. . . There is a large market called Dong Xuan which is very active and colorful. Night time market at old quarter opening the finish of weekend from 7pm till midnight, it sells many kind of cheap goods for using, souvenir. Some other shopping malls or marketplaces are local Hoan Kiem lake: Trang Tien Plaza, Intimex supper market, electronic device mart (Pico, Nguyen Kim plaza)


Hanoi is the centre of vehicles, so from here tourists can go anywhere easily by air, coach, car, sail boat

Airport: Noibai AIRPORT TERMINAL opened in 1995 and continuously develop till now, it is the largest international airport in north of country, 40km definately not city center, it is rather easy to get center of city from Noi Bai by taxies or buses. In the entire year of 2010, the Airport terminal received 9. 5millions customers(Vneconomy, 2011), There are numerous Vietnamese and international Airline in Noibai: Vietnam Airlines, Pacific Airlines, AirAsia, Cathay Pacific, Hong Kong Airlines, Thai Airways, Lao Airlines, Nok Air and Tiger Airways(hanoiairportonline, n. d. ). That is one of beneficial condition attracting visitors to Vietnam.

Rail: Hanoi railway train station is biggest one on the railway from North to South, found in the center of the town, in Tran Hung Dao str, Hoan Kiem Dist. Just several kilometers distance to Hoan Kiem lake, after visiting Hanoi, tourists can easily take a train to south provinces or north-west provinces and reserve.

Road: Maybe it's said that the street in Hanoi too small compared with its high density, especially, in the heart of city, the traffic is really the nightmare. The issue in moving can make tourists discouraged when exploring Hanoi.

Restaurants and Nightclubs

Many restaurants locates in around Hoan Kiem lake and in Old Quarter, ex lover: Thai Express, Luc Thuy, Pane E Vino, Pepperoni's Pizza, La Salsa Restaurant, Bobby Chinn, Hanoi Restaurant, KFC where visitor can enjoy variety of food from east to traditional western, junk food, local food, with huge selection of price from really cheap to expensive.

Nightclubs are rising surround the lender of the Lake: Le Pub, Ho Guom Xanh Bar, 1001 Pub in Hang up Bom str, Dragon Soar in Hang up Bom str, Funkey Monkey, Next Pub, Jaguar, Tuan Anh, Tan An in Hang up Ga, most of them open till midnight and having specific style for teen or aged customers,

Political Risk

Vietnam was considered a safe country and politics steadiness, this is the key factor that has helped Vietnam pursue its financial development policy and be attractive destination for travelers and buyers (Phillippe, 2010).

On other hands: Vietnam also are facing with some dangers: Unstable in trade rate, corruption, interpersonal unrest, complicated administrative could be the barrier for foreign investment.

Real House Market: It could be crazy in Real Estate Market which is scorching all the time, high density and high expansion of population, missing of information and knowledge and sensible experiences could be the real cause which contribute the crazy price of real property in Hanoi. Now start of 2011, the purchase price is still on sky-high, and continue inflating the bubble, especially, in some place where traders think be rezoned, because of this, rentals price also stay static in sky, especially in center of city (Stockbiz, 2010). Because of this, this will increase fix cost of company and be the down sides for foreign investors who wish to invest or develop business to Hanoi.

Hard Rock and roll Caf Comparable Market Analysis

Brand name




Food and service

Target market

Customer's purpose

Hard Rock and roll Caf


Center of big city

Beverage, coffee, American food,

Tourist, Rock admirer,

Enjoy rock music,

food, memorabilia

Very big premises

Rock music, memorabilia,

Retail shop

High income people,

young people

crowed and active trading center

Live music

Highland coffee


Crossroad, crowed and busy

trading center

Coffee, drink, food(local, Italy food),

normal music


office worker

Business interacting,

discussing; talking

Ground-Floor of a large building

Music Club


Center of city,

moderate premises

coffee, drink, normal food

(no food at nighttime)

Rich Young and

middle-aged customer

Enjoy music

Live common and pop music

(main services drive income)

The stand above is some information about Market Examination between Hard Rock, Highland caffeine and a Music Membership near by Hoan Kiem lake. It clearly shows the differentiation in products, services and atmosphere of HRC and differ in target market. So with average price 7USD is fair for people who want to benefit from the unique experience in Hard Rock and roll Caf.

SWOT Analysis when the location was selected nearby Old Quarter and Guom Lake

-Although many young people in Hanoi are crazy supporter of rock music. Teenage is the one who like to show their stylish and advanced when they experience in a few famous and expensive restaurants, on the other palm, the majority of Hanoi people favor drink caffeine or consume food at sidewalk of block for discovering people working to chair in the luxurious restaurant. Local and traditional food is loved more than overseas food. Furthermore, the income is still very low, so 100, 000 Dong average price of HRC could be the challenge for local customer to experience its services. Rentals cost is also the problems for all shareholders want to create a business in Hanoi, especially in centre of the city. There are numerous strong competition including international and domestic restaurants, caf and club with long time operation with unrivalled price like: Trung Nguyen Caf, Highland caf, Kangaroo, Hapro, Ciao, ILLy, Old Quarter caf or even neighborhood supplier caf. . which located around Hoan Kiem lake and Old Quarter. Beside that, traffic jam is pain with residents and visitors.


There many teenagers who love rock and roll music, more and more foreign people to Hanoi the next time due to its attraction and appeal. High human population and density, as well as long time and busy trading around Hoan kiem lake and Old Quarter where is the most attractive place visitors by many entertainment centers, restaurants, shopping malls, cheap, small hotel to international standard hotel collect together here. Political stability, fast economical development, cheap and young labor, international standard convention, stadium,


HRC always select best locations, accepted strap name with travelers all over the world. Unique food, services and music, memorabilia, big and comfortable space for customer show their enjoyable. Good management system, effective operation.


High price and marketplace are visitors and wealthy people because its high price. Rock music, sometime, not absolutely all people can enjoy it. Most of foods come from oversea whereas Vietnamese prefer local and traditional food. Hard Rock and roll Caf are famous on earth but it isn't familiar in Vietnam.

In sum up, from all research above,

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