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The first LOTTE Mart supermarket in Vietnam is Lotte Mart South Saigon built inDistrict 7, Ho Chi Minh City, which is also where the headquarters of Lotte Mart Vietnam islocated.Inheriti

DANANG UNIVERSITY OF ECONOMICS THE FACULTY OF MARKETING

Members : 1 Lê Hồng Bảo Ngọc

2 Nguyễn Thị Kiều Linh

3 Cao Hữu Nam

4 Đoàn Thị Hải Yến

5 Nguyễn Thị Bích Trâm

6 Lương Thị Mỹ Trầm

Table of contents

I - BUSINESS OVERVIEW

II - E-MARKETING MARKETPLACE ANALYSIS

1 Micro environment

2 Macro environment

3 SWOT

4 Business model

5 E-Marketing objectives: SMART approach:

III E-MARKETING STRATEGY DEVELOPMENT

1 Market segmentation

2.Target market

3 Customer value proposition OVP (Positioning + Differentiating decision)

4 Customer Journey

5 e-Marketing mix decisions (4Ps)

IV- LOTTEMART’S CHANNEL

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I - BUSINESS OVERVIEW

Lotte Mart is a company of the Korean LOTTE group, a large supermarketchain selling a variety of groceries, clothes, toys, electronics and other goods.Lotte Mart opened its first branch in Guui-dong, Gang Byeon, Seoul, Korea onApril 1, 1998 As of April 2023, LOTTE Mart has a total of 178 supermarkets globally: KoreaThere are 114 supermarkets in Vietnam, 49 supermarkets in Indonesia and 15 supermarkets inVietnam The first LOTTE Mart supermarket in Vietnam is Lotte Mart South Saigon built inDistrict 7, Ho Chi Minh City, which is also where the headquarters of Lotte Mart Vietnam islocated

Inheriting the vision of parent group Lotte "Lifetime Value Creator - Creating lifetime value",Lotte Mart is constantly innovating from shopping space, goods, services to developing multi-channel sales methods with the goal is to meet all consumer needs

December 21, 2022, Lotte Mart officially opened in Da Nang Lotte Mart supermarket operatesfrom 8:00 a.m to 10:00 p.m every day

 Abbreviated name: LOTTE MART DA NANG

 Representative: SHIN JUBACK

 Address: No 06 Nai Nam Street, Hoa Cuong Bac Ward, Hai Chau District, Da NangCity, Vietnam

Organizational structure of Lotte Mart Da Nang:

Management rank:

 Branch Manager: Responsible for all operations of Lotte Mart Da Nang

 Deputy Director: Supports the Branch Director in management and administration

 Head of Department: Head of specialized departments in the branch such as: Sales,Accounting, Logistics,

 Staff: Perform specialized tasks according to assigned department.

Department structure:

 Management Board: Includes branch director, deputy director and head of consultingdepartment

 Sales Department: Responsible for sales, customer care, shelf management,

 Marketing Department: In charge of trade promotion activities, product promotion,

 Finance Department: Financial management, accounting, revenue and expenditure,

 Human Resources Department: Recruitment, training, employee management,

 Operations Department: Logistics management, goods preservation, environmentalsanitation,

 Technical Department: In charge of maintaining and repairing electrical and water systems,machinery,

II - E-MARKETING MARKETPLACE ANALYSIS

1 Micro environment

1.1 Client:

 LOTTE Mart targets both individual and business customers (B2B) The number ofcustomers in the retail market is large, because the majority of daily consumer needs aremet at Lotte Mart Among them, most of the subjects, 75% are family groups and 25% aresingle people In addition, another significant point is that locals account for 85%, andforeigners account for the remaining 15%

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 The goal that Lotte Mart aims for is undifferentiated marketing Vietnam is a country with

a young population with an increasingly improving average income Therefore, Lotte Martwants to target as many customers as possible, without classifying customers, reachingwidely, and saving product promotion costs But if we analyze more closely, LM's targetcustomer file will usually be:

1 Middle-aged customers and loyal families: Lotte Mart Da Nang targets middle-agedcustomers and loyal families, especially those with average and high incomes Theseare customers who want to buy consumer goods, food, household appliances and toysfor children

2 Customers love Korean products: Lotte Mart Da Nang is one of the leading supermarkets

in Vietnam for Korean products Therefore, Lotte Mart Da Nang's target customersalso include people who love Korean products, including food, cosmetics, fashion andhousehold appliances

3 Young customers: Lotte Mart Da Nang also targets young customers, especially those who

love online shopping and want to buy technology products, fashion and toys

4 Local customers: Lotte Mart Da Nang also targets local customers, especially those living

near supermarket areas These are customers who need to shop for consumer goods,food and daily household items

1.3 Competitors

 In the retail market in Vietnam, Lotte Mart has to compete with many competitors:

Supermarket chains and entertainment shopping centers such as: Go!,WinMart, Co.opmart, …

 Convenience stores, mini supermarkets, local retailers

 Online shopping platforms such as Lazada, Shopee, Tiki…

1.4 Intermediate

 LM combines with financial intermediaries, diversifying payment methods other thancash, helping to save time and make it more convenient for customers in the paymentprocess, such as:

 Bank: Supports payment by credit card, bank card, internet banking service fromVietcombank, Viettinbank, Techcombank…

 E-wallets: Momo, ZaloPay, VNPay

 In addition to its LOTTE Mart Online application, LM also combines with e-commerceplatforms such as shopee, lazada, tiki, to expand the market, reach many new customerfiles, increase profits,

2 Macro environment

2.1 Economic:

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 In 2023, against the backdrop of the difficulties in the global and national economy, andinternal local problems, the Da Nang government and city-dwellers, along with thebusiness community, have overcome obstacles and challenges to implement theresolution on directions and tasks for the year 2023 Three highlights in the city’sdevelopment are strong increases in economic scale, the number of tourists, andinvestment attraction Its economic scale rose by nearly VND 10 trillion ($416 million) tomore than VND 134 trillion (nearly $5.5 billion) compared to 2022

 The total retail sales of consumer goods and services are estimated to hit a rise of 16.8%compared to 2022 The number of guests served by accommodation establishments islikely to stand at 7.94 million, up 98.4%

 The consumer price index (CPI) in Da Nang in December 2023 decreased by 0.38% overthe previous month, increasing by 2.65% over the same period last year

 The average CPI for the whole year 2023 is expected to increase by 5.08% compared to

2022, up 4.32% against 2022, the highest in the past 10 years since 2014

 The total import and export turnover of goods is estimated to reach US$3,015 million,down 16.2% compared to 2022, of which, merchandise exports are estimated atUS$1,864 million, down 11.6%, whilst imported goods are predicted to be US$1,151million, down 22.7%

 The city also proposed allowing the municipal People’s Council to decide on the pilot ofblockchain or support for technical infrastructure development projects in industrialclusters

 It also asked for permission to apply certain mechanisms and policies that are available to

Ho Chi Minh City, such as particular planning adjustments, personal income taxexemptions for experts, scientists, and people with talent, and extra payments for Stateemployees and corporate income tax exemptions for those in prioritized areas

2.3 Culture & Society

 Vietnam is a densely populated country and has a young population structure Thisobservation offers two advantages: Large population means there will be a huge demandfor shopping For the young population structure, young people tend to be more acceptingand adaptable, creating conditions for different types of goods to enter the market

2.4 Natural

 Vietnam is one of the countries most affected by climate change, threatening agriculturalproduction, causing low quality raw materials for processing, not meeting standards andfood safety

2.5 Technology

 Industry 4.0 is the current trend in automation and data exchange in productiontechnology Vietnam is also not outside the trend of industry 4.0 The evidence is thatmore and more good processing enterprises are applying automated machinerytechnologies such as: Industrial food vacuum machines, packaging machines, slicers into production and processing lines -> beneficial Developed science and technology is

an advantage that helps Lottemart have more traffic from social networking sites, morepopular online sales will help Lottemart increase revenue

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- Brand recognition is high

- Global management firms and lack ofexperience

- Consumer awareness that supermarketprices are high

- Difficulty in securing a store site due tohigh rent

- Continuous increase in sales

- Consumption demand and shopping

increase

caused by economic development

- Government tax incentive policies in

cooperation with foreign companies

- Da Nang's income rise

- Young consumers' desire for high

consumption (overseas brand preference)

and modern consumption tendency

- Low expertise of local retailers in Da

Nang

- The global economic crisis has a negative impact on the purchasing power of consumers in Da Nang

- Continuous increase of competition among distribution companies-Inevitable competition of foreign distribution discount store

4 Business model

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5 E-Marketing objectives: SMART approach:

Measurable Achievable Relevant Time-boundThe sales

- The number of additional

orders needed to increase

the revenue to 14.4 billion

Nang from 28 to 40 years

old: accounts for 30% =

360,000 people (Scope)

- Number of orders needed

to increase each month:

 Conversion rate:

1.19%

- Average order value:

Increasing 2600 orders out

of a total of 360,000 targetcustomers:

2,600/360,000*100=0.72%

(possible to achieve)

Related tothe goal ofincreasingthecompany'ssalesrevenue

Achievingsales growthover thecourse of 3months,starting from1st April tothe end of30th June2024

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III E-MARKETING STRATEGY DEVELOPMENT

1 Market

segmentation

Sort by age:

Student (18-22 years old):

Income is often low, depending on scholarships or financial support fromfamily

Pay attention to prices and promotions, often looking for cheap products orspecial offers

Buy products for convenience and personal needs, typically food, beveragesand basic household products

Save money and often choose products with high value but the price must fityour budget

Young group (23-27 years old):

Most of them are working and have more stable income than students

Interested in fashion trends and products, new technology

Usually buy convenience products and packaged foods, but may also buyhousehold products and electronics

Easily influenced by online advertising and marketing campaigns

Students can look for high-quality products and be willing to pay more

Middle-aged group (28-40 years old):

Often have a stable income and higher spending ability than younger customergroups

Shop for the whole family and browse home products, food, clothing and babyitems

Need convenience and good service, can prioritize online shopping to savetime

Often looking for quality products but also sensitive to prices and promotions

Elderly group (45-80 years old):

Usually have a stable income and accumulate a lot of shopping experience

Interested in health and personal care products, medications and healthy foods

Need dedicated support and service from sales staff

Often buy traditional products and may be resistant to new technology

Appreciate the reliability and quality of the product

Sort by family status

Households with children:

Pay attention to essential products for children such as food, milk, diapers,toys, and books

Need convenience and good services such as large shopping carts, babystrollers, and children's play areas

Often buy in bulk and look for family-friendly deals, discounts or promotions

Look for safe and quality products for children

Households without children:

Interested in personal care products, food, home appliances and technology

You can shop according to your personal needs and preferences regardingfashion products, home appliances and electronics

Look for convenience and good service, like delivery or a membershipprogram

Can find high quality products and spend more easily than other customergroups

People living alone:

Interested in convenience products, packaged foods and simple dishes

Need to save costs and often look for simple products with small packagingunits

Often make purchases based on personal needs and searches for individual

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Education level: diverse, from high school to university

Most are married and have stable jobs

Place of living and working: Da Nang

Pain Regarding product quality: dirty food, of unknown origin

and marinated with chemicals are rampant on the market.Therefore, the consumption of these foods negatively affectshuman health

Need Food is hygienic and safe, its origin and ingredients are

verified clearly by the Ministry of Health and relevantparties

Korean food that comes from a reputable food source

Convenience: Customers want a convenient and fastshopping experience

Reasonable price: Customers need to find a reasonablebalance between quality and price

Behavior Look for clean, guaranteed food sources

Love and look for Korean products

Prioritize shopping places close to home

Pay attention and take care of your health and that of yourfamily

Shop for food and necessities for daily living 3-4 times/week

They often look for convenient services in supermarketssuch as automatic cashier counters, shipping andtransportation services

Pay attention to promotions and regularly follow up to buycheap products

Psychology Afraid of dirty food, food using toxic chemicals, of unknown

origin

Believe in Korean food

Worry about your health and your family's health

Life stress: Due to age and family responsibilities, customers

in this group often face stress and pressure from work andlife

Lack of time: They often have busy schedules and lack time

to shop

Insight Desire to find clean food sources that are safe for health,

love Korean food and products

3 Customer value proposition OVP (Positioning + Differentiating decision)

Positioning strategies:

 Lotte Mart chooses the positioning strategy: MORE FOR MORE

 Lotte Mart wishes to provide customers with a variety of high-quality and diverseproducts, from food to consumer goods and services including improving product quality,

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