Internship Report - Market research of lotte center hanoi

In traditional marketing, the final target of doing business is to sell as many products and gain as high profit as possible. At first, the business philosophy of marketing is just to improve production and distribution efficiency in order to make products and services available and affordable to customers. However, as customers’ demand and taste changed, this philosophy turned out to be ineffective and companies had to meliorate their product quality and features. When revenue and profit of the companies decreased even when they had provided products and services of good quality, they reckoned that it was necessary to invest in aggressive selling teams and promotion efforts, in order to compete in the market which seemed to be saturated. All these marketing orientations have just focused on companies themselves and products and services they provide, and companies’ benefits are put at the top.

CONTENTS PREFACE 2.1 Display .16 2.2 Policies .18 2.3 Location 18 REFERENCE 26 APPENDIX PREFACE In traditional marketing, the final target of doing business is to sell as many products and gain as high profit as possible At first, the business philosophy of marketing is just to improve production and distribution efficiency in order to make products and services available and affordable to customers However, as customers’ demand and taste changed, this philosophy turned out to be ineffective and companies had to meliorate their product quality and features When revenue and profit of the companies decreased even when they had provided products and services of good quality, they reckoned that it was necessary to invest in aggressive selling teams and promotion efforts, in order to compete in the market which seemed to be saturated All these marketing orientations have just focused on companies themselves and products and services they provide, and companies’ benefits are put at the top On the contrary, modern marketing concept says that companies should understand customers and gain profits through customer satisfaction, delivering desired satisfactions more effectively and efficiently than competitors Furthermore, they should be interested in maintaining and improving consumers’ and society’s wellbeing Today, companies have grasped the preeminence of the modern marketing concept and also understand more and more about the important role, and heavy impacts of marketing tools in achieving their marketing objectives; therefore, they have paid much attention to market research Market research of Lotte Center Hanoi Coralis Vietnam, a company acquired by Lotte Group, also understand this and has conducted many market researches to complete the design and construction of the Lotte Center Hanoi, and fully exploit this business center in the near future Due to the limitation of this report, I just focus on the market research on the future demand and trend for clothes which could be available in stores of Lotte Center Hanoi by the year 2013 The first chapter will provide you with a brief introduction of the company The next chapters will deal with the process and results of the market research I would like to express my sincere thanks to Lotte Center Hanoi for their supporting materials, helpful suggestions, and good learning environment during my internship Particularly, with the close instruction of my lecturer – Ms Pham Thu Huong, I had a big chance to improve my knowledge in Marketing, and to sharpen my researching, analyzing and reporting skills Dang Thi Thuy Vinh–A1–High Quality Class–Business Administration–K46 Page Market research of Lotte Center Hanoi I Introduction History and organizational structure of Lotte Center Hanoi In 2005, Coralis Vietnam Co Ltd was in charge of managing the capital from Coralis S.A of Luxembourg for the project of the Hanoi City Complex However, facing up with some difficulties in gathering capital, the project was delayed for over years Finally, Coralis was acquired by Lotte Group in September 2009 Being interested in the construction area, from September 2009, Lotte Group reinvested in the project of Hanoi City Complex with the total capital of over $400 million1, and the building was given another name Lotte Center Hanoi As mentioned above, Lotte Group has just taken over this project for over months (from the November 2009), and it is still in progress, so the company has a simple organizational structure composed of five departments: Human Resource and Admin; Marketing; Accounting; Information Technology, and Project Management The Human Resource Department is charge of managing and evaluating weekly and quarterly performance, working progress of both local and foreign staffs The IT Department of the company just contains one employee who is responsible for making and trying software for the company Besides, he also has to create an information sharing system for both internal and external users to access when finding data and information The Project Management Department is the most hard-working division in the company They have to deal with many documents, drafts and directly work with Lotte CM and Lotte E&C, the parent company in South Korea as well as local authorities This department is under the direct supervision of the General Director Studying and helping the company to have the clear understanding about the trend and demand of customers, exact forecasts of all the markets, and effective and efficient strategic plans is the main works of Marketing Department http://www.skyscrapercity.com/showthread.php?t=985146 Dang Thi Thuy Vinh–A1–High Quality Class–Business Administration–K46 Page Market research of Lotte Center Hanoi Accounting Department is the most important division of the company Most of the company’s operation depends much on it All departments, from HR, IT to PM, have a close relationship with this department The company is under the surveillance of the highest senior manager – the General Director Each employee is supervised by his/her manager, and report directly to him/her, and their work progress must be presented to the whole company on the Monday morning every week The best performer of the week will be awarded with a small gift, praised before the whole company’s presence Figure 1: Company structure of Lotte Center Hanoi STRUCTURE OF LOTTE CENTER HANOI GENERAL DIRECTOR HUMAN RESOURCE & ADMIN MARKETING ACCOUNTING INFORMATION TECHONOLOGY PROJECT MANAGEMENT Dang Thi Thuy Vinh–A1–High Quality Class–Business Administration–K46 Page Market research of Lotte Center Hanoi (Human Resource and Admininistration Department – Lotte Center Hanoi) Business activities and business results Lotte Group has become a familiar name in Vietnam with eight sub-companies running different businesses, i.e Lotteria Vietnam, Lotte Vietnam, Lotte Vietnam shopping, Lotte sea logistic, Lotte Vina International, Lotte Cinema Vietnam, Lotte E&C, and Lotte Center Hanoi2 Lotte Center Hanoi is responsible for Managing & Exploiting future Business Center, which was under the control of Coralis Vietnam Co., Ltd more than years ago Lotte is one of the market leaders in confectionery and foods; however, construction is also one of their priorities Obviously, Lotte is not a property investor; therefore, they not fund capital to build this Business Center for sale Because of the lack of capital of Daewoo Group, after being delayed over years, Hanoi City Complex project was restarted in October 2009, and renamed Lotte Center Hanoi This business center is now commenced by Construction Management and Lotte E&C– two of the lower levels in the organizational hierarchy of Lotte Group both in Korea and Vietnam Developing plans of the company The initial total capital of this project was just $115 million; however, during the construction, they have to supplement more finance to reinvest more work items; therefore, the estimated capital now has increased over $400 million Particularly, up to June 2010 Lotte Group had transferred $30 million to Lotte Center Hanoi The company has tried to finish the project before the end of 2012; however, due to some obstacles when applying licenses, the project can only be finished and go into operation until the middle of 20133 Besides, Lotte Group can make arrangement for their own capital, so the company just sells a small quantity, and the remaining will be offered for their own business activities, in fact they use this building for their longterm purpose – expand their distribution network in Vietnam, and set up business by http://www.skyscrapercity.com/showthread.php?t=985146 http://www.skyscrapercity.com/showthread.php?t=985146 Dang Thi Thuy Vinh–A1–High Quality Class–Business Administration–K46 Page Market research of Lotte Center Hanoi themselves Moreover, instead of having the external consultants or partners to manage or promote their goods or services, Lotte will directly operate and exploit this building Established in 1965, Lotte is running its business in many countries like Russia, China, India, and Vietnam is one of the most important markets Lotte aims to enter the top ten economic group of Asia by 20184 http://www.skyscrapercity.com/showthread.php?t=985146 Dang Thi Thuy Vinh–A1–High Quality Class–Business Administration–K46 Page Market research of Lotte Center Hanoi II Analysis of the demand for Business Centers in Vietnam Overview of Vietnamese market Due to the fast speed of urbanization and higher income level in Vietnam, there is a trend of demolishing traditional markets, and constructing large business centers on the old ground to take full commercial advantage of these places Vietnamese retail market is an active and potential destination for investors with average growth rate of 20% per year, young demographic, middle class and the average income has quickly increased in recent years Besides, traditional retail trade accounts for the major proportion of the total retail revenue; therefore, it is still an open-end market for high-grade retail channels, especially in big cities like Hanoi, Ho Chi Minh City, Haiphong, etc Moreover, a positive sign is that the government is planning to reduce lending rate to 12 – 13%5 in accordance with Decree 23/Resolution-Government 6, which is expected to ease financing for condominium purchase, and consequently increases residential demand Furthermore, strong demand from local companies and/or from long term leases will continue to be the most significant trend in the office market Office demand is expected to be string over upcoming quarters, though supply continues to outpace demand According to CBRE, strong demand for serviced apartments has remained stable in the next few years because of the stably strong consumer’s budgets allocated for accommodation In Vietnam overall, tourism has fuelled strong demand as the nation saw an increase in the number of international arrivals by 32.6%7 in the first six months of the year, to Second Quarter 2010 Hanoi Property Market Review - CBRE Second Quarter 2010 Hanoi Property Market Review - CBRE Second Quarter 2010 Hanoi Property Market Review - CBRE Dang Thi Thuy Vinh–A1–High Quality Class–Business Administration–K46 Page Market research of Lotte Center Hanoi 2.58 million participations Besides, the anticipation of the Thang Long – Hanoi millennium anniversary as well as other promotional packages supported by Vietnam Tourism Administration taking place during the third and fourth quarters of 2010 are expected to bring an upswing in the number of tourist arrivals and the hotel market can expect improvements in occupancy rates and RevPARs Resulting from these aspects, it is clear that Vietnam is a potential market for foreign investors as well as local ones The role of Business Center for Vietnamese economic growth With increasing number of licensed projects coming to Vietnam, an influx of foreigners working for multi-national corporations will enter the market as prospective buyers and tenants, and demand high-quality accommodations When business centers want to avoid legal issues in the host country, they can acquire a domestic company, and this activity can help host country in many aspects For example, if they want to business in Vietnam, they have to sell not only famous foreign brands but they also have to pay much attention to domestic brands and companies Under the pressure of quality competition, local brands have to try their best to improve their products and services to compete with strong ones, and the consumed volume of local residents will accordingly increase if they highly appreciate local brands The final target is to improve the competitive ability for domestic brands, and provide customers with the best products and services Competition is expected to be more intense in the future, forcing developers to differentiate projects by offering design and construction of better quality at the same price, a commitment to development progress In the upcoming years, competition among developers will create more choices for prospective buyers Moreover, the more goods and service customers are provided, the higher the possibility of their spending; the more money invested in production, and the more taxes Government can impose on business centers Hence, when foreigners come to Second Quarter 2010 Hanoi Property Market Review - CBRE Dang Thi Thuy Vinh–A1–High Quality Class–Business Administration–K46 Page Market research of Lotte Center Hanoi work and live in Vietnam, they will demand and consume a significant quantity of goods and services, this will help to surge the economic growth of both local area and nationwide Continued spending on construction and infrastructure projects that are expected to be completed before the October deadline of Hanoi’s Thang Long Festival will support further GDP growth The role of market research for the development of Lotte Center Hanoi Tourism promotion and increased flight traffic will support the growth in the tourism sector The additional flights on the Hanoi – Ho Chi Minh City, and Hanoi – Danang routes will increase the volume of domestic travelers to Hanoi Besides, international arrivals to Hanoi reached 302,000 participations in the second quarter of 2010 – increased 31.87%9 year over year This positive information would be helpful for the company to speed up their Business Center project to meet the potential huge demand for hotel and department stores in the future Retail sales revenue soared considerably in the first six month of 2010, grew by 28.2%10 year over year, showing the strength of consumer demand Increasing sales and numbers of retail outlets indicate the steady growth of Hanoi’s retail sector in the coming quarters In recent years, when more European expatriates had entered the market, and the competition from the abundant supply of villas and terraced housing became harsher, serviced apartment units with more than three bedrooms had accounted for 70% 11 of total vacant units Hence, it is easily understandable to realize that truly difficult competitions come from substitute markets (villas, standard apartments), and the increase in supply from major future projects This source of competition will stabilize or even reduce lucrative rent of many projects, especially those with limited services Second Quarter 2010 Hanoi Property Market Review - CBRE 10 Second Quarter 2010 Hanoi Property Market Review - CBRE 11 Second Quarter 2010 Hanoi Property Market Review - CBRE Dang Thi Thuy Vinh–A1–High Quality Class–Business Administration–K46 Page Market research of Lotte Center Hanoi Therefore, Lotte should consider and update more information about this issue to have a suitable and modern design for Lotte Center Hanoi business center Furthermore, the company should also care for their two major rivals, i.e Vincom City Tower and Parkson They are the two biggest and closest competitors of Lotte Center Hanoi in terms of a complex of luxury office, department stores, and 5-star hotel Both these centers are famous for prestigious and fashionable brands which play an important role in attracting the high number of visitors These two centers; however, are established and exploited in Vietnam longer than Lotte; therefore, Lotte has to plan carefully to win customers when their building is completed in 2013 Dang Thi Thuy Vinh–A1–High Quality Class–Business Administration–K46 Page 10 Market research of Lotte Center Hanoi Our main customer in this segment may include successful businessmen with monthly income of over VND 20 millions per month, the youth, and rich teenagers who have money and want to purchase unique suit with reliable material and quality With such a budget, they usually go to shopping mall in which they can find the best-selling items of famous brands In addition, they are promised to get the authentic products with the unique design and guaranteed quality The typical characteristic of this group is to be sensitive to the fashion, and show their status and style; therefore, they are ready to purchase famous brands to differentiate themselves with others These customers in fact not much care for money; they are just interested in style and the reliability of the material For example, a woman with the salary of over VND 20 millions per month can visit and purchase some suits at famous stores like NEM, Ivy or Alcado, and so on Or even many teenagers “9X” nowadays can spend up to hundreds of million on purchasing manual items or famous brands to show their status and richness, and to be realized by the others Besides, many middle-aged women whose families have stable finance can freely spend money on shopping at big business center Using famous brands help them to show their social ranks, and their awareness of fashionable trends According to many foreign managers’ viewpoint about Vietnamese buying behaviors, it is up to 77%23 of Vietnamese customers in comparison with 40% 24 of Asian ones are interested in foreign brands It is an acceptable explanation for the habbit of caring others’ evaluation of the majority of Vietnamese Although the normal of each item is often of high price, for example, VND 1.5 – 25 milions per T-shirt, or VND 12 millions per dress, they not hesitate to purchase 2-3 items each time going to shopping mall Competitors 23 http://www.tin247.com/77_nguoi_viet_chuong_hang_ngoai-3-21266037.html 24 http://www.tin247.com/77_nguoi_viet_chuong_hang_ngoai-3-21266037.html 25 http://news.ndthuan.com/kinh-te/2010/07/03/132997-thoi-trang-mua-gia-giam.shtml Dang Thi Thuy Vinh–A1–High Quality Class–Business Administration–K46 Page 15 Market research of Lotte Center Hanoi There are many business centers in Hanoi today, and many new redoubtable competitors are coming on the stream like Hanoi Grand Plaza, Crowne Plaza or Keangnam Hanoi Landmark Tower These building can go into operational in the nd half 2010 and in 2011; therefore, Lotte Center Hanoi should pay much attention to these rivals Because of the limited framework, this report will just mention the existing contenders of Lotte Center Hanoi in terms of department store for fashionable clothes like Vincom and Parkson The reason why these two building centers are chosen as the main competitors of Lotte Center Hanoi is the similarity in their functions, such as office or department stores The main task of this part is to analyze the competitive advantages of each business center 2.1 Display The main customer segments that Lotte focus on are 20 – 35 year old women and high income customers Therefore, an observation was made to gather information related to fashion stores in these two building, and then compare with Lotte Center Hanoi in terms of display, brands doing business there, and the services they used to win customers Shopping Paradise, Vincom Galleries, in which many famous female fashion brands have concentrated like CK, D&G, Mango or Gucci and so on, have arranged the nd floor for women fashion store with many famed brands lying next together making a group of famous brands which can satisfy the visiting and shopping demand of international and domestic arrivals as well as local residents Like Vincom, Golden shopping mall – Parkson – also provides offices and department stores for rent Famous brands lease stores in the building and their own business Under the pressure of quality, Parkson and Vincom have supplied customers with the Hanoi biggest business complex to conveniently and comfortably facilitate shopping by the logical arrangement and the selection of famed brands with good quality For example, Vincom has built an escalator system and aerial connectors to link the twin towers to ease the shopping Dang Thi Thuy Vinh–A1–High Quality Class–Business Administration–K46 Page 16 Market research of Lotte Center Hanoi Clothes stores in these two centers are reasonably arranged in large and attractive shelf spaces Besides, they also reasonably and harmoniously order the images and music in the store, create a luxury inside, suit with products, and make comfort for the visitors and consumers Moreover, in both business centers, biggest brands have the most favorable places with wide plane and good positions, and these places are certainly expensive Despite the monthly dizzily high rental, many famous brands are willing to hire with an extremely high price to their business This means that the demand for luxury and opulent department stores will still increase in the next years The main difference between these two trading centers is the way they business with their own department Vincom only allow famous brands which can assure the rigid requirement in terms of quality to lease the stores They provide departments for concerned brands with a very high monthly rental of from about $85-130/m 26 which are their main periodical income In contrast, Parkson themselves hired the whole Viet Tower and their own business They charge $12027/m2/month, and get the commission from the partners If 25%28 of the revenue of each partner is greater than the monthly rental, Pakrson will take 25%29 of revenue, and vice versa The first floors are used to deal in jewelry, shoes, bags, sportswear, cosmetics, and clothes; and the remaining of the building is for leasing office, hotel, and so on Both types of operation are successful with the higher profit and more customers go to visit and go shopping The rental price for department stores in these centers is very high; however, many international brands as well as Vietnam High Quality Brands are ready to jump to possess these convenient positions For instance, the famous French fashionable brand Everbest has recently opened a 26 http://vnexpress.net/GL/Kinh-doanh/Bat-Dong-san/2010/07/3BA1DF33/ 27 http://tathy.com/thanglong/showthread.php?t=22498 28 http://vietnamnet.vn/bvkh/2009/05/850567/ 29 http://vietnamnet.vn/bvkh/2009/05/850567/ Dang Thi Thuy Vinh–A1–High Quality Class–Business Administration–K46 Page 17 Market research of Lotte Center Hanoi new store in the 2nd floor in Vincom Galleries to introduce their new items to the connoisseur consumers in Vietnam A typical example of Vietnam Values is Nino Maxx who dares to hire a quite large store in Parkson 2.2 Policies Vincom or Parkson focus on supplying preferential treatments to attract customers by some methods like large discount at the end of the season, customer card, accumulated point to get gifts, and so on Whereas other prestigious brand such as NEM has different way to serve and satisfy their customers by providing customers with free dry-clean and steamy ironing services Before entering a new market, like other fashion brands, this famed French brand had to study and understand the consuming behavior of the majority of Vietnamese women While big foreign brands offer customers 5% - 50% 30 discount when the value of purchased items is as large as regulated, other street stores in Boc Pagoda or Cau Giay Streets often charge a higher price in comparison with the quality of the items and usually not offer discount The price is usually high because it includes the taxes, costs, rental, salary, and the profits 2.3 Location Being located in a quite busy center of Hanoi, and laying in the Ring Round No 1, in which many large residential areas concentrate, and shopping demand is increasingly higher, Vincom had gained much advantages and profit Furthermore, sides of Vincom are at most favorable streets with dense residential areas which can creates a beautiful space and accessible communication for the whole building In addition, it is near to Sword Lake – center of the city, and bound around by many international enterprises and embassies These advantages can help Vincom in attracting more customers 30 http://webcache.googleusercontent.com/search?q=cache:QbSOAXkuMLwJ:www.info.vn/life/shopping/444hang-hiu-gim-gia-50-ti-vincom-parkson-ruby-plaza+vincom+gi%E1%BA%A3m+gi %C3%A1&cd=7&hl=vi&ct=clnk&gl=vn Dang Thi Thuy Vinh–A1–High Quality Class–Business Administration–K46 Page 18 Market research of Lotte Center Hanoi Whereas, Parkson with about 11,000m 31 of plane, located at the crossroad of Thai Ha – Tay Son and Boc Pagoda Streets – an active clothing market, can attract thousands of visitors and customers per day Our Lotte Center Hanoi is located in a center district of administration and economy The building is designed with two fine frontages on Kim Ma and Dao Tan Streets that are quite ventilated for the customer to park their vehicles when going shopping Moreover, it lays in the axis that links the Old Quarter and dense residential areas Furthermore, this building stands near to five star hotel Daewoo, Australian and Japanese Embassies which is the potential resource of high income customers It is clear that Lotte Center Hanoi has possessed a lucrative position in comparison with other projects 31 http://www.thesaigontimes.vn/Home/diendan/ykien/4964/ Dang Thi Thuy Vinh–A1–High Quality Class–Business Administration–K46 Page 19 Market research of Lotte Center Hanoi V Conclusion and recommendation Assessing the demand for clothes in Hanoi Owing to the progressively improved living standard in recent years, the demand for clothes strongly increases The persuasive proof for this consideration was tested through the recent global financial downturn Although the financial crisis has significantly impacted on all aspects of life, the financial gain and demand of the highincome group did not change so much but even higher With the usual price of VND 1.5 million to VND million per T-shirt, or VND 12million per dress of unique designs and high quality, it is clear that only high-income customers dare to spend a large amount of money on expensive suits at big shopping centers From the above analysis, the teenagers or women with high income, VIP customers from foreign companies and embassies, and international travelers are the main customers that Lotte Center Hanoi should seriously consider It is quite easy to realize the specific characteristics of the young from 20 – 35 years old are youthful, active, and creative No matter how expensive the items are, the young can still spend a lot of money on purchasing if they are highly impressive Hence, it is intelligible when few items are consumed; the achieved revenue is still always at a high level Another factor which powerfully influences styles is the more and more sophisticated and sensitive to fashionable changes of the young today For instance, just a little change in fashion tendency or external comments can easily affect their thinking and behavior Thus, the trend for consuming clothes from famous brands at large department stores like Vincom, Parkson or Trang Tien Plaza is clearly popular Obviously, large vacancy in luxury department has made Vietnam turn out to be an attractive selection for international retailer groups who are interested in exploiting this potential market Thus, Lotte Center Hanoi should carefully consider the possible and existing competitors in terms of department stores in Vietnam, the most concerned market of Lotte Group Existing competitors like Vincom or Parkson has Dang Thi Thuy Vinh–A1–High Quality Class–Business Administration–K46 Page 20 Market research of Lotte Center Hanoi shown their success in dealing with famed fashion brands in just the first months doing business This is the reasonable cause for the increasing influx of big projects into Hanoi and nationwide of foreign retail groups In upcoming years, many trading centers will have been finished For example, Grand Plaza will come on stream on July 2010; another main rival is Keangnam Landmark Tower with the highest building that will become operational in 2011 Those business centers including Lotte Center Hanoi may become the first-rate destinations of world-class fashionable brands in promoting their products to customers Finding approach to compete with each other, to create a unique style and feeling for customers are actually not easy for Lotte Center Hanoi as well as other business centers How to address the demand Vietnam is assessed to be a potential market with about 18% 32 of monthly income are spent on clothing in 2008(Business Support Associates - BSA) This number decreased by 2% during the financial crisis in 2008 – 2009 to 16% 33 in the 1st quarter 2010 However, it significantly rockets up by 23% to 39% 34 in the 2nd quarter 2010 And the majority of this consumers is the high income customers who can spend much money on those expensive suits Although the few items are sold, the high price of each item can promise the high revenue For example, with a famous brand, the profit is 250k/item – which is 50 times higher than the other brands Many foreign brands such as Calvin Klein, Guess, Dolce&Gabana, Mango, and Giordano are really interested in Vietnamese market, and have opened many stores in some big centers like Parkson or Vincom or Trang Tien Plaza In fact they have been very successful with the bigger and bigger market share just after a short time entering into this market Lotte Center Hanoi can think of signing contract with famous brands mentioned above 32 http://www.rfa.org/vietnamese/in_depth/Fashion-trend-in-vietnam-vha-07112009113358.html 33 http://sgtt.vn/Tieu-dung/126520/Nguoi-Viet-Nam-dang-san-sang-chi-tieu-mua-sam.html 34 http://sgtt.vn/Tieu-dung/126520/Nguoi-Viet-Nam-dang-san-sang-chi-tieu-mua-sam.html Dang Thi Thuy Vinh–A1–High Quality Class–Business Administration–K46 Page 21 Market research of Lotte Center Hanoi It is clear that the intense appearance of Korean movies and music has made big impacts on fashionable styles of Vietnamese consumers, especially, both the young and women However, the stronger they are influenced by those styles, the fewer chances for the customers to get them Actually, there are not so many Korean fashion brands in Vietnam; hence, the possibility to possess a Korean suit is not easy The concerned customers can know and watch new items through fashionable magazines, Internet, and so on Therefore, if Lotte Center Hanoi can become the exclusive distributor of Korean fashionable brands, and take advantages of its huge impacts on Vietnamese customers by introducing Korean high quality brands to this lucrative market, it can promise a very high profit for the company Furthermore, there is still a group of Vietnamese people want to support Vietnam Values like Nino Maxx, An Phuoc Pierre Cardin, Viettien, Ivy, NEM, Chic land Hence, the company can think about signing contract with those brands, and share profit with each sold items in Lotte Center Hanoi In order to sell well, Lotte can get reference from the pioneers to have their own effective methods to serve their customers For example, they can consider providing dry-clean service like NEM, or offer discount like Vincom or Parkson However, due to the deep study about the experience of big shopping centers and consumer behaviors, Lotte just need to focus on large discount at the end of the season To strengthen this opinion, an observation from many big retailers around the world shows that the discount level should be large enough to motivate customer to purchase For example, many business centers in Malaysia offer discount from 15% 75% in comparison with daily price And it is clear that people actually prefer large discount per time than discount many times with small quantity One factor Lotte should seriously regard and make them different from themselves with other centers that is the opening and closing time Other centers usually operate from 8:00 AM to 21:00 PM 35; however, to win the potential customers and customers from existing rivals, Lotte can differentiate with others by extending their operating time from 9:00 AM to even 23:00 PM As discussed above, the main customers that 35 http://www.parkson.com.vn/Vietnamese/trung_tam.htm Dang Thi Thuy Vinh–A1–High Quality Class–Business Administration–K46 Page 22 Market research of Lotte Center Hanoi Lotte focus on are those who are young and have high income As a result, the time for shopping will last quite longer, and later than normal Hence, lengthening the operating time means that customers will have time to consider and choose products conveniently, and the exposure of those products will be longer That idea just aims to help clothes stores in Lotte Center Hanoi get stronger position in customers’ minds, and pull them closer Other competitors just spend floors for clothing store which can not fully meet the huge demand of customers In order to facilitate visitors and consumers, Lotte should use at least – floors for fashionable clothing stores Lotte should take advantage of having a wide plane to provide customers with an outstanding clothes shopping mall than other limited plane centers, and help customers be actually pleasure every time they come to Lotte Center Hanoi Dang Thi Thuy Vinh–A1–High Quality Class–Business Administration–K46 Page 23 Market research of Lotte Center Hanoi VI Internship experience Before practicing internship at Lotte Center Hanoi, I thought that the company would business in some known fields such as food, shopping and logistics After taking part in the internship course at the company; however, I was aware of that Lotte Center Hanoi are also interested in other area They are in progress of building up a business center in a centre district of the capital for their own business in many areas from clothes stores, cinemas, 5-star hotels to offices, and just spend a small part of the building is used for selling During the period of preparing the assigned report related to the market research for Lotte Center Hanoi until 2013, I had got useful and realistic opportunities to apply some theoretic knowledge into the reality I made a small survey online by myself to get the needed results about the clothes taste of customers Furthermore, this survey had helped me bring out some helpful suggestions for the company In fact, the company has acquired Coralis Vietnam Co., Ltd in the September 2010, and they are in now the developing phase Studying Vietnamese market as well as clothes market in Hanoi is just commenced Thus, the developing process and materials are not conveniently available for the report In spite of many initial difficulties in finding and researching information about the market as well as the customer demand, or building good relationship with the local authorities, Lotte Center Hanoi still try their best to overcome those hurdles by the highest determination and deepest experience of the th largest economic group of South Korea established in 196536 which showed the very successful performance around the world Within one month practicing internship at Lotte Center Hanoi, I was involved in many activities such as translate some legal documents related to applying planning permission, or some transaction letters sent to the parent company in South Korea 36 http://www.skyscrapercity.com/showthread.php?t=985146 Dang Thi Thuy Vinh–A1–High Quality Class–Business Administration–K46 Page 24 Market research of Lotte Center Hanoi From those actions, I had chance to get in touch with real documents and vouchers that I might have not seen at class before This can help me get acquainted with various types of vouchers and bills in daily business of a company like taxi bills, red invoices, and so on Practicing internship course at the company, I would improve my writing report skills, ability to find, select, summarize and organize available information to make an informative and persuasive report Working in Lotte Center Hanoi provided me a precise opportunity to work in a professional, good learning, and multicultural environment I would understand more about the differences between Vietnamese and South Korean cultures practically observe and withdraw helpful lessons of social behaviors, which would be very helpful for me to verify some knowledge I have learned from the books, and for my future job Dang Thi Thuy Vinh–A1–High Quality Class–Business Administration–K46 Page 25 Market research of Lotte Center Hanoi REFERENCE Philip Kotler, 2003 Marketing Insights From A to Z, 80 concepts manager needs to know: John Wiley & Sons, Inc Philip Kotler & Gary Armstrong, 2004 Principles of Marketing 9th ed : Prentice Hall Hanoicitycomplex Available at: http://www.skyscrapercity.com/showthread.php? t=985146 [Accessed 17 Jult 2010] Tập đồn Parkson: Chuyện “hậu trường” tìm mặt bán lẻ Available at: http://www.vntrades.com/tintuc/name-News-file-article-sid-24439.htm [Accessed 20 July 2010] Tin Tức Online - Nhịp sống trẻ - Khi teen gây shock đồ hiệu http://www.vnbrand.net/Phong-su-thuong-hieu/thuong-hieu-ban-le-cao-cap.html http://www.ngoisao.net/News/Thoi-trang/2010/07/3B9D0663/ http://www.bantinnhadat.vn/Khai-truong-Vincom-Galleries_513.html http://www.xaluan.com/modules.php?file=article&name=News&sid=134831 http://www.vincom.com.vn/vi-VN/Home/Baochi/thongcaobaotri/2009/8/245.aspx http://tintuc.xalo.vn/00557366348/thi_truong_bds_ha_noi_co_cho_da_soi_co_noi_chi _dong.html http://dantri.com.vn/c76/s83-228604/parkson-dau-tu-6-trieu-usd-tai-ha-noi.htm http://www.thesaigontimes.vn/Home/diendan/ykien/4964/ http://www.skyscrapercity.com/showthread.php?t=985146 Dang Thi Thuy Vinh–A1–High Quality Class–Business Administration–K46 Page 26 Market research of Lotte Center Hanoi APPENDIX Questionnaire of the small survey for the research: Present and Future of Clothing market in Hanoi Questionaire How often you go shopping? a.Once a week b.Once a month c More than twice a month d.Randomly e Other When you usually go shopping? a.Special events b Free time c Discounts d Other occasions Where you like to go shopping? Why? a Stores on the streets b Market c Shopping mall d Department store Reason:…………………………………………………… How many items of clothes you often buy each time you go shopping? a 0-3 suits b 3-5 suits c 5-7 suits d Randomly How much money you often spend on clothes each time you go shopping? a < VND 500,000 b VND 500,000 – VND1 million c VND1-3 million d VND3-5 million e Over VND million Which factors you highly consider when you make decision to buy clothes (arrange from the most important to the least)? Dang Thi Thuy Vinh–A1–High Quality Class–Business Administration–K46 Page 27 Market research of Lotte Center Hanoi a Brandname b Material c Style and colour d Price From whom you usually get reference? a Your parents b Your brothers/sisters/cousins c Your friends d Shop-assistant e Magazines What clothes brands you usually buy from? Why? a Foreign brands b Korean brands c High quality Vietnamese brands d Chinese brands Reason:………………………………………………………… Thank you for your help! Dang Thi Thuy Vinh–A1–High Quality Class–Business Administration–K46 Page 28 ... http://sgtt.vn/Tieu-dung/126520/Nguoi-Viet-Nam-dang-san-sang-chi-tieu-mua-sam.html 34 http://sgtt.vn/Tieu-dung/126520/Nguoi-Viet-Nam-dang-san-sang-chi-tieu-mua-sam.html Dang Thi Thuy Vinh–A1–High... There are 65.4% 19 of asked 18 http://nld.com.vn/117149P0C1002/60-dan-so-duoi-30-tuoi-ho-la-tuong-lai-dat-nuoc.htm 19 Survey for “Present and Future of clothing market in Hanoi? ?? Dang Thi Thuy... http://www.vntrades.com/tintuc/name-News-file-article-sid-24439.htm [Accessed 20 July 2010] Tin Tức Online - Nhịp sống trẻ - Khi teen gây shock đồ hiệu http://www.vnbrand.net/Phong-su-thuong-hieu/thuong-hieu-ban-le-cao-cap.html