(Tiểu luận) principles of marketingmarketing innovation plan for lotteria

COMPANY DESCRIPTIONIn order to provide customers with products and services thatwould support globalization and diversification, Lotte Co.. 2012.The food and beverage industry, which is

NATIONAL ECONOMICS UNIVERSITY

SCHOOL OF ADVANCED EDUCATIONAL PROGRAMS

PRINCIPLES OF MARKETING

Marketing innovation plan for Lotteria

Group 8: Mai Thị Hà Anh – 11200174

Vũ Ngọc Bích – 11200524Nguyễn Quỳnh Chi – 11200610Hoàng Đàm Hạnh Dương – 11200950Trương Ngọc Huyền – 11205561

Class: Advanced Finance 62B

Lecturer: Le Thi My Linh, Assoc.Prof.Dr

Words count 5,366

Hanoi - 11/2022

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TABLE OF CONTENT

I.SITUATION ANALYSIS 3

1 COMPANY DESCRIPTION 3

2 PRODUCT DESCRIPTION 3

II MARKETING ENVIRONMENTS 4

1 MICRO-ENVIRONMENT 4

1.1 The Company 4

1.2 Suppliers 5

1.3 Publics 5

1.4 Customers 5

1.5 Competitors 6

1.6 Marketing Intermediaries 7

2 MACRO-ENVIRONMENT 7

2.1 Demographic: 7

2.2 Economic: 8

2.3 Natural environment: 8

2.4 Technological 8

2.5 Political 9

2.6 Cultural 9

III UNIQUE SELLING POINT 10

IV SWOT ENTERNAL ANALYSIS 11

V STP 12

1 Targeting 16

2 Positioning 17

VI MARKETING MIX STRATEGY 19

REFERENCES 21

INTERVIEW TRANSCRIPT 22

I.SITUATION ANALYSIS

1 COMPANY DESCRIPTION

In order to provide customers with products and services thatwould support globalization and diversification, Lotte Co wasfounded in Japan in June 1948 (Lotte Co Ltd 2012) In order toprovide its customers with a contemporary food industry and ahigh-standard lifestyle, Lotte Co Ltd founded the Lotte Group in

1967 (Lotte Group 2012) With operations in over 50 countries, a variety of business areas,and over 4,700 workers, Lotte has become an international company (Lotte Co Ltd 2012).The food and beverage industry, which is the Lotte Group's core expertise, has had sustainedexpansion in the international market, particularly in Japan, China, Russia, and Vietnam Lottemade 522.0 billion in revenue overall in 2011 (2012) Lotte Co Ltd

Lotte entered the Vietnamese market with food and beverages as their specialization.Lotte did not enter the Vietnamese market until December 2008, when the first Lotte Martopened in Ho Chi Minh City Lotteria, together with KFC, is the main player in theVietnamese fast-food franchising sector (Tuoi Tre 2012) Lotte's goal is to provide high-qualityservices and commodities that enrich their customers' lives through creativity discovery andchallenge confronting

2 PRODUCT DESCRIPTION

Lotte joined the Vietnamese market as a specialist in food anddrink The first Lotte Mart opened in Ho Chi Minh City inDecember 2008, marking Lotte's entry into the Vietnamese market.The dominant player in the Vietnamese fast-food franchisingmarket is Lotteria, along with KFC (Tuoi Tre 2012) The mission ofLotte is to offer premium goods and services that improve the lives

of their clients through exploration, challenge, and creativity

Due to the economy's rapid growth and consumers' busy daily schedules, quick andaffordable meals are becoming popular Numerous fast-food chains have entered thedeveloping Vietnamese market in response to this expanding demand, giving consumers moredining options Customers can purchase products from them for affordable prices and with alot of availability The two biggest fast-food franchises in Vietnam today are KFC and Lotteria,each of which has more than 250 locations around the nation (Tuoi Tre News 2012)

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Despite having a large selection of fast food items, the franchise's specialty—thehamburger—remains Lotteria's core focus in Vietnam But because popular hamburger brandBurger King only recently entered the market, Lotteria has decided to launch a marketingcampaign to strengthen and maintain Lotteria's position.

II MARKETING ENVIRONMENTS

There are a number of factors that directly or indirectly affect how Lotteria's marketing

is managed; they aid the business in establishing and preserving strong bonds with its targetclients To give an example, the marketing environment is made up of the macro environmentand the micro environment

1 MICRO-ENVIRONMENT

1.1 The Company

According to Lotte (2012), Lotteria was a component in the Lotte Group's growth.Additionally, Lotteria has opened 117 branches nationwide since its launch in 1998, withroughly 50 of them in Ho Chi Minh City (Lotte 2012) In order to raise consumers' livingstandards, Lotte Group is a powerful firm with effective management and commercial plans.The senior management, finance, R&D, buy operations, and accounting departments of theLotte Group can all have an effect on marketing The manufacturing team can plan to developitems that are appropriate, preventing potential customers from switching to competitors'products, for instance, while the finance department can manage the marketingbudget Furthermore, given that Lotteria's customer base has expanded quickly in recent years,

the marketing division helps to build and maintain solid ties with them Its client, Lotteria, hasexpanded significantly in recent years.

1.2 Suppliers

In the company's customer value system, suppliers are crucial The producers ofbeverages (Pepsi, Vinamilk), chicken farmers, and vegetable growers are among Lotteria'ssuppliers Additionally, managing the partnership with them can support the delivery of high-quality goods and services Marketing managers must keep an eye on price trends as well assupply availability and forge long-term partnerships with suppliers because rising supplyprices may have an effect on marketing and sales volume

1.3 Publics

Media Public: Advertisements for lotteries in publications, on television, and in the

media They generate public opinion, shape it, and are a great way to raise consumerawareness

Internal Public: They work for Lotteria Their compensation will be determined by

how well they perform at work They may serve as public opinion leaders, shaping attitudesabout Lotteria's workplace and its goods and services, building the company's brand in theprocess Therefore, Lotteria ought to offer a comfortable working atmosphere

General Public: Customer reviews are always gathered in order to understand public

sentiment Because a product or activity's reputation and sales may be impacted by the generalpublic's attitudes and behaviors toward it

Customer Markets: Teenagers and young adults who like fast food and the flavor of

Korean cuisine are Lotteria's primary target market Since they are the ones that directly profitthe business by utilizing our goods and services, Lotteria should always be mindful of theirrequirements and offer the highest quality goods and services

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a result, they serve clients from all over the world The scale of the global marketplacesillustrates the company's high capacity for market penetration.

KFC is Lotteria's primary rival in Vietnam Chicken meals, hamburgers, and snacks make up

the bulk of KFC's offerings There are about 100 storesopening in major cities, and KFC presently dominates thefast food industry in Vietnam with a market share of morethan 60% It might affect them

Other direct competitors: In terms of selling

burgers, Jollibee Burger King and Carl's Jr., Burger King,which entered the Vietnam market in 2012, would sooncompete fiercely with Lotteria

Indirect Competitors: They are the companies that help a company market, sell, or

make a good or service available The stores of Lotteria instantly satisfy their clients' wantsand requirements with goods and services Marketing service providers help with marketresearch, strategy formulation, and the production of promotional materials to build a brandand strengthen the connection between the product and its present customers Additionally,physical distribution companies are transportation companies that help with the daily delivery

of supplies for Lotteria businesses while preserving the quality of the food and other suppliesalong the way They work together with Lotteria as partners to deliver the greatest goods andservices to clients, so Lotteria should work with these intermediaries to establish shared valuesboth with customers and among themselves

1.6 Marketing Intermediaries

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Kinh tế Chính trị Mác-Lê Nin 99% (69)

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Tiểu luận Kinh tế Chính trị Mác-Lênin

Kinh tế Chính trị Mác-Lê Nin 98% (100)

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Kinh tế Chính trị Mác-Lê Nin 98% (64)

They are the companies that help a firm promote, market, or make a product or serviceavailable Lotteria enterprises responded quickly to their clients' wants and aspirations byproviding their products and services Marketing service businesses help with market research,marketing strategy development, and promotional material execution in order to brandproducts and improve customer loyalty Furthermore, physical distribution firms aretransportation organizations that provide Lotteria stores with daily material deliveries whileassuring the quality of food and other supplies along the route They collaborate as partnerswith Lotteria to provide clients with the best products and services possible Therefore,Lotteria should collaborate with these intermediary organizations in order to give additionalvalues to both the customers and to one another.

3 MACRO-ENVIRONMENT

3.1 Demographic:

The CIA World Factbook estimates that as of July 2012, there were about 91 millionpeople living in Vietnam (CIA 2012) Vietnam is thought to have a young population becausethere are more than 40% of workers there (Tong Cuc Thong Ke 2012) Every day, Vietnameseconsumers' purchasing power increases, accelerating every industry's rapid expansion.Additionally, the statistical reach of the Internet has increased, with the majority of thedomains coming from Generations Z and Y (Cimigo NetCitizens 2012) Through a very activeand well-used channel, Lotteria may now send messages more economically

More than 26 million people, or almost the population of Texas, lived in urban areas in

2009 (Tong Cuc Thong Ke 2012) Additionally, there is a growing tendency of peoplerelocating from rural to urban locations As a result, economic hubs in Vietnam are growing,

particularly in Hanoi and Ho Chi Minh City The demand is rapidly increasing as more peoplechoose to live in large cities.

3.2 Economic:

The GDP of Vietnam reached 1,300 USD per person in 2011 (Tuoi Tre 2011).Compared to 2010, there was an increase of 5.89% in that figure (VnExpress 2011).Accordingly, given the high level of societal consumption, there are prospects for corporategrowth

At the time, consumers' shopping habits are more centered on quick products,emphasizing convenience and ease of use (VnEconomy 2009) Due to the importance ofpreserving their health, consumers are more conscious of their eating habits (Viet Bao 2006).Lotteria has an early-mover edge in the fast-food sector by providing Western dishes with anAsian flavor

3.3 Natural environment:

The environment in Vietnam is also badly polluted An estimated 120,000 to 150,000hectares of forest are lost each year (Lan Huong, 2008) Despite the positives, Vietnam'seconomic progress is also placing a lot of strain on the environment (The World Bank 2011).Additionally, there is a lot of air pollution due to the rise in the number of automobiles on theroad Businesses must have a respectful attitude toward the environment if they want tosucceed in the Vietnamese market Lotteria uses cardboard food packaging, wax paper burgerpackaging, and other materials at the moment However, Lotteria continues to utilize plasticbags for takeout food, harming the environment Lotteria ought to adjust this in light of itspopularity and the volume of takeout orders If Lotteria does not fix this, it will harm theirreputation as a brand (Lotte 2012)

3.4 Technological

Nowadays, more and more people, particularly in cities, have access to the Internet.Cimigo (2012) estimates that there were about 35 million Internet users in 2011 In 2011, therewere 58% of all cities with Internet access (Cimigo NetCitizens 2012) There are chances forcorporate development due to the quick development of information gadgets andcommunication services Lotteria has seized this chance and introduced numerouscommunication platforms, like Facebook, Instagram, etc These methods of communication

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are widely used, making it simple for customers to access special offers, updated menus, and

—most importantly—24-hour Lotteria's ordering online from the comfort of their own homes.Lotteria uses cutting-edge and successful marketing techniques Nevertheless, there are still afew response issues with the website, but Lotteria will soon fix these issues

3.5 Political

Since the country has joined WTO in 2007, Vietnamese government is more opened to i i i i i i i i i i i i i

iforeign iinvestment (WTO 2012) The market also opens to different brands from overseas and i i i i i i i i i i i i

itherefore iit is considered an opportunity for Lotteria to expand its market i i i i i i i i i iin iVietnam

3.6 Cultural

People in Vietnam place a great value on culture, which is impacted by a person's socialrank, financial circumstances, and, most importantly, the items that person owns, purchases, orconsumes As life becomes increasingly hectic, one of the latest fads among young people isfast food

The dominating Korean way of life influences the young Vietnamese generation aswell Lotteria's popularity among clients is anticipated to grow given that it is a Korean brand

III UNIQUE SELLING POINT

This kimchi fast food chain's combos (packages of things like as meals and beverages together) are also extremely diverse in order to meet various market demands

By doing so, Lotteria can easily attract customers in Vietnam market considering theiradvantages and experiences in not only Asia but also global

Product uniqueness has always been the number one goal for Lotteria to make a standpoint in Vietnamese customer's habit

Lotteria is implanting the product diversification strategy to attract the widest range ofVietnamese from the starting days of introducing to the market This has established Lotteriabrand image as easily accessible and welcoming to all citizens, which bring Lotteria a bigamount of loyal customers

The origin experienced of Lotteria in Korea has also helped the company to make

a statement in Vietnam

Considering the hype Vietnamese youth has for Korean culture, Lotteria has taken this

to their advantage to penetrate the market However, the company also keep a respectiveapproach to the market that they are in by having Vietnamese flag up at all branches

In addition, customer service has always been set as a priority for Lotteria

The target customers for Lotteria has always been youth and family, with this Lotteria has thedecoration and the welcoming vibe that children and teenagers would love Stepping into anyfranchise, customers would feel at home while having good food Lotteria provides customers

a sense of love and loyalty, which would attract more and more customers

Besides giving the customers a welcoming feeling, Lotteria also provides every need of thecustomers, whether they want food, tissue, additional dressing, etc The services process ofLotteria is not only fast, convenient, but also fullfilling

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IV SWOT ENTERNAL ANALYSIS

Vietnamese consumers' palates are

similar to those on Lotteria's menu, making

adaptation to the meal straightforward

Lotteria's dominance in the market is aided

by the fact that there are stores in almost

every major city across the country

Lotteria draws a diverse variety of target

industries and has a sizable market share due

to its inexpensive pricing, which is lower

than that of its competitors

Lotteria maintains a high degree of food

safety and hygiene, which provides clients

the impression that the service and product is

ecologically friendly

Lotteria makes things easier for clients

by offering home delivery

Customers must periodically wait fortheir orders at Lotteria, although it is a fast-food restaurant As a consequence, Lotteria'sservice should be improved to make it moreefficient and easy

Although hamburgers are Lotteria'smain menu item, there is little advertising forthem Lotteria must therefore developongoing, long-term marketing strategies forthe burger product category