Customer Management Plan for a Banh Mi Sandwich Chain

Business Description and Value Proposition

Uncle Ho's Banh Mi is a chain of sandwich shops specializing in banh mi, the Vietnamese sandwich served on a baguette. The concept is straightforward: banh mi is typically made with a meat — either pâté or xa xiu (roast pork) — and a generous helping of fresh vegetables. Tofu can be substituted for the meat. The meat is used sparingly but is full of flavor, helping to balance a sandwich that would otherwise be predominantly vegetables. The heavy vegetable content also helps keep ingredient costs low. A variety of condiments will be available, ranging from Vietnamese-style vinegar to Sriracha. The chain takes its name from a tongue-in-cheek mascot, Uncle Ho.

The value proposition of Uncle Ho's is simple: sandwiches of lower price and higher quality than the competition. Chains like Subway and Quizno's are, frankly, overpriced for what they deliver — food with little flavor made from ingredients that are not always natural (Rogers, 2014). By contrast, banh mi shops across the United States, from Los Angeles to Orlando, have long sold great, natural sandwiches for under five dollars. As American consumers warm to Vietnamese cuisine — most notably through the pho craze — awareness of the banh mi is set to follow. There are currently no other banh mi chains in the United States, which positions Uncle Ho's to fill a significant gap in the market left by tired, undifferentiated sandwich chains.

Target Market

Broadly speaking, nearly everyone eats sandwiches. Uncle Ho's can accommodate vegans, vegetarians, and customers with religious dietary restrictions, since several banh mi varieties are entirely plant-based — a tradition rooted in Vietnamese cuisine, where vegetarian cooking is highly refined. The practical target market, however, is somewhat narrower.

Geographically, the target customer lives within five miles of a Uncle Ho's location. Because this is a fast-convenience concept, people do not travel far. Locations will be concentrated on the coasts — and possibly Texas — where consumers are more receptive to "foreign" food concepts. The aim is to capture the easiest markets first before expanding inland.

Demographically, Uncle Ho's targets urban consumers aged 14–34. This group is a major patron of the quick-service industry (Yohn, 2011), tends to be budget-conscious, and appreciates quality food. Millennials are also more likely to be urban and open to ethnic cuisine. Ideal locations include areas near college campuses, entertainment districts with strong daytime foot traffic, downtown business districts, and shopping corridors. The customer base is expected to skew slightly male, though the healthier profile of banh mi should attract a demographic profile broadly similar to Subway's. Lunch is the critical daypart: research indicates that 75% of people prefer a sandwich for lunch (Sheppard, 2012). Mintel data further notes that growth in the sandwich category hinges on niche markets, including ethnic offerings, and that ethnic ingredients are an essential component in effectively targeting millennials (Eyre, 2008).

References

Beaujean, M., Davidson, J. & Madge, S. (2006). The moment of truth in customer service. McKinsey & Company.

Eyre, C. (2008). Sandwich growth hinges on niche groups. Bakery and Snacks.

Rogers, A. (2014). Subway: That yoga mat chemical is almost out of our bread. Time Magazine.

Sheppard, P. (2012). Sandwiches market — a slice of the action. Tutor2U.net.

Spreng, R., Harrell, G. & Mackoy, R. (1995). Service recovery: Impact on satisfaction and intentions. Journal of Services Marketing, 9(1), 15–23.

Yohn, D. (2011). 2 target markets for restaurants. QSR Magazine.