Marketing strategy lotteria

VIETNAM GENERAL CONFEDERATION OF LABOUR TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION MID - TERM REPORT MARKETING STRATEGY TOPIC: BUILDING A MARKETING STRATEGY FOR LOTTERIA VIETNAM Course Instructor: NGUYỄN HẢI MINH Group: Lotteria Bùi Thị Kim Anh Võ Lê Quỳnh Châu Võ Minh Duy Lý Ái Duyên Phan Thị Kiều Oanh Lưu Đức Qúy Đoàn Minh Tấn Bùi Vũ Xuân Thanh 718H0006 718H1363 718H0490 718H0492 718H1474 718H1492 718H0076 718H1508 HO CHI MINH CITY, NOVEMBER 2021 LIST OF MEMBER EVALUATION NO FULL NAME Bùi Thị Kim Anh Võ Lê Quỳnh Châu Võ Minh Duy Lý Ái Duyên Phan Thị Kiều Oanh Lưu Đức Quý Đoàn Minh Tấn Bùi Vũ Xuân Thanh STUDENT ID 718H0006 718H1363 718H0490 718H0492 718H1474 718H1492 718H0076 718H1508 EVALUATION 90% 100% 100% 70% 90% 100% 90% 100% LECTURER’S COMMENT …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… 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…………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… ACKNOWLEDGEMENT Making this report on building a strategy for a brand is a new and interesting experience for us At first, the group was still confused and had difficulty in this work, but thanks to the care and help from teachers as well as the school Our team has made and completed this report, we would like to express our sincere gratitude for that help through this article First of all, we would like to thank Mr Nguyen Hai Minh who directly guided and accompanied us throughout the course He is a person with extensive knowledge and knowledge that we should learn from During this process, he is willing to share valuable knowledge, give us advice and guidance Our team would like to thank Mr Minh Besides, we also would like to thank the school, Dr Pham Thi Minh Ly, Dean of the Faculty of Business Administration For giving us the opportunity to take this course Our team would like to thank you TABLE OF CONTENT I Situation Analysis .7 1.1 Company .7 1.2 Market Trend II 1.2.1 Growing Presence of International Fast-food Restaurants in Vietnam 1.2.2 Affected by the covid-19 pandemic 1.2.3 Competitor Mission Statement 2.1 Vision 2.2 Mission .8 III Business Unit Competitive Strategy .10 IV Macro-analysis (PESTEL) 10 4.1 Economical .10 4.2 Social 11 4.3 Technological 11 4.4 Environmental 11 4.5 Legal and Political 12 V STP (Five-step process, Brand positioning) 12 5.1 Segmentation 12 5.1.1 Geographic 12 5.1.2 Demographic 12 5.2 Targeting 12 VI 5.2.1 Target customer of Lotteria .12 5.2.2 Behavior 13 Positioning 14 6.1 Competitive advantages 14 6.1.1 Product difference 14 6.1.2 Service difference 14 6.1.3 Difference in image 15 6.2 Brand map 15 6.2.1 Menu selection 15 6.2.2 Ubiquity 15 6.2.3 Quality 15 6.2.4 Price 15 VII Market Definition 16 VIII Marketing strategy in specific markets .17 8.1 Position defence strategy 17 8.2 Objective 17 IX Marketing Action Plan 18 9.1 Quarter 1: 18 9.2 Quarter 2: 18 9.3 Quarter 3: 19 9.4 Quarter 4: 19 9.5 Timeline 20 9.6 Projected profit-and-loss Statement 20 X Marketing Team Structure 21 XI Marketing Metrics 22 11.1 Setting standards of performance 22 11.2 Measures of customer satisfaction 22 11.3 Specifying and obtaining feedback data 23 11.4 Evaluating feedback data .23 11.5 Taking corrective action 23 REFERENCES 24 I Situation Analysis I.1 Company Lotteria is a fast food chain established in February 1972 in Tokyo, Japan After many years of strong development and presence in many Asian countries such as Korea, China, Taiwan, Myanmar and Indonesia Lotteria entered the Vietnamese market in 1998 with strong growth At the present time, Lotteria Vietnam has more than 210 restaurants with wide coverage in more than 30 provinces and cities nationwide I.2 Market Trend I.2.1 Growing Presence of International Fast-food Restaurants in Vietnam In recent years, international fast-food restaurants have been marked by large-scale growth in the Vietnam quick-service restaurant market due to increasing western influence that gave rise to fast food culture in the country, which is anticipated to undergo further growth over the coming years I.2.2 Affected by the covid-19 pandemic Experiencing a difficult period in the Covid-19 pandemic, users are now gradually having the habit of eating at home instead of outside as before Moreover, fast food businesses need to increase their operating capacity up to 30% However, in contrast to that, beverage businesses have had to cut production capacity by less than 80%, compared to before the pandemic broke out That proves that the majority of F&B businesses have been suffering a great deal from Covid-19 I.2.3 Competitor Lotteria is now also one of the leading restaurant chains in the domestic food industry with more than 210 restaurants in more than 30 provinces and cities Currently Lotteria holds 20% market share of the fast food market in Vietnam KFC is the biggest competitor of Lotteria in Vietnam because KFC has been leading in the fast food market today with more than 60% of market share in Vietnam branches It can affect Lotteria on their share in the market MCDONALD’S is another big competitor because the market share is 10% (according to statistics by nhipsongdoanhnghiep in 2015) Other indirect competitors: Burger King, Jollibee Burger King, Pizza Hut, Domino Pizza, King BBQ, etc II Mission Statement II.1 Vision Lotteria has held the No position in terms of “Brand Power” for consecutive years granted by “Korea Management Association” Ranked No in terms of brand competitiveness by the brand value assessment agency with the title "Brand Stock" II.2 Mission During its operation, Lotteria has always made constant efforts to provide attentive and considerate services and constantly researched and developed a healthy culinary culture Lotteria always ensures hygiene, food safety and environmental protection factors, proudly achieving international certifications:  Food safety certification (RVA HACCP)  Environmental hygiene certification (ISO 14001)  Product quality certification (ISO 9001) QCST motto throughout the process of production and business activities in the world as well as in Vietnam:  Q – Quality: Product quality  C - Cleanliness: Cleanliness  S – Service: Service, good customer service  T-Time: Quick III Business Unit Competitive Strategy III.1 Differentiation - Analyzer strategy Figure Five Business Unit Competitive strategies According to the figure above, Lotteria has chosen a differentiation strategy as the main strategy Since most of fast-food businesses in Vietnam have several similar 10 V STP Analysis V.1 Segmentation V.1.1 Geographic Country: They are born and live in Vietnam They can be the expats who live in Vietnam, mostly from Asia, Europe and America living in Vietnam Density: They live in the urban areas such as HCMC, Hanoi, Hai Phong, Da Nang, Hue, etc Loteria shops mostly are located in the centre of the city or neighbourhood V.1.2 Demographic Gender: Male and Female Income: Middle to high allowance Education: from kid garden to Graduated Nationality: Mostly Vietnamese, Asian (Korean, Japanese, Chinese, Taiwanese, Thailand, Singaporean, etc.) and European, American V.2 Targeting V.2.1 Target customer of Lotteria Children and Family, who love fast-food services, the taste of Korean food and desire to have a place creating memories with family or friends They directly bring profits for the company by using our products and services 14 V.2.2 Behavior I.2.2.1 Benefit sought: Children: Eat delicious and full of nutrients for children Help provide children with delicious and easy-to-eat foods in moderate amounts that are easy to digest In addition, they were also attracted by the fun and colorful atmosphere at Lotteria's space Young people: Trendy with the Korean wave, they are affected by Korean music and Korean culture Therefore, they want to seek Korean products and services, including food Also they seek a large space and crowd atmosphere to have fun with friends Young adults seek high quality products with reasonable prices due to the limited living expenses Adults: They are busy with work, so they may seek convenient services like fastfood and home delivery They may find a comfortable and fast service store when hanging out and socializing with friends as well as family They seek a warm and friendly environment for their family gathering I.2.2.2 User status First time users who usually are taken out by their parents and fed new food and try new things Gradually they can be regular customers who are familiar with and love our brand in the future Regular users who are already familiar with fast-food service and willing to try new products Also they are willing to try out the new products Non-users: they may not use fast-food but they buy it for their family or children 15 I.2.2.3 Loyal status Mostly they are familiar and stay loyal with Lotteria due to the suitable taste and good service I.2.2.4 Attitude toward product  Positive Attitude Toward to children’s menu  May indifferent to try the new food but still curious  Positive attitude toward Korean Culture (music, service) and Korean food  Positive attitude toward discounts and special deals  Positive attitude toward changing in menu  May have different attitudes toward the fast-food service and the combination of Korean taste and Western dining culture  May be indifferent with western dining culture but still accept to use sometimes V.3 Positioning V.3.1 Competitive advantages Unlike other competitors, Lotte has a dominant position in the fast food market thanks to many competitive advantages Product difference: Lotteria comes from a company located in an Asian country, so the taste of Lotteria's products is very suitable for the tastes of Vietnamese customers 16 Service difference: Lotteria's stores are present in most provinces and cities across the country, especially in city areas such as Hanoi, Ho Chi Minh, Hai Phong, Da Nang and Hue Customers can easily find available stores nearby or at work In addition, home delivery service brings more convenience to customers Difference in image: Lotteria is very suitable for the recent Korean wave As the first and only fast food brand in Korea, Lotteria always keeps up with the recent trends of V.3.2 Brand map Menu selection: It is the diversity of products and combo the company provides to customers At Lotteria, there are 113 options of food for customers to buy Meanwhile, McDonald’s menu has 82 options and KFCs has only 62 options Ubiquity: It refers to the level of the store’s presence Lotteria has 255 stores spread across Vietnam while the number of McDonald’s and KFC stores just reaches 22 and 140, respectively Quality: Product quality is guaranteed by delicious and different taste, rich in energy and food safety In addition, Lotteria is also measured by the motto "always smiling, bringing a friendly feeling to customers" Price: Because Lotteria’s target market is medium class and above, the products’ price is affordable for most customers Based on the above evaluation, the brand map has been identified as follows: 17 Figure Positioning map of Lotteria, KFC and McDonald's 18 VI Market Definition The Vietnam market is considered as one of the markets with great potential in developing the F&B industry with an annual growth rate of roughly 10%, which is greater than the overall growth rate of other economic sectors This demonstrates that the development area for this business is still very broad and that Vietnam is a market that both domestic and foreign investors find very appealing Economic: Although Vietnam has one of the lowest income per capita in the world, nowaday, Vietnam currently has a stable and positive environment both economically and politically, maintaining a stable GDP growth rate, controlling inflation well, and policies to improve bad debts, budget deficit as well as reasonably set forth Demographic: Most of the youth tend to be foreign or following trend Lotteria has accompanied them since childhood and mainly hit the crowded cities such as Ho Chi Minh City, Hanoi, Đa Năng with the goal of bringing a high quality product, ensuring food safety and most importantly, leading the market => It can be said that it is thanks to the right decision when choosing the target market that is Vietnamese youth with good income, families with children and big cities Lotteria was accepted very easily, and gradually became a habit suitable for the dynamism of young people as well as friends of all families That is why Lotteria products are more and more known, which is a condition for Lotteria to develop further 19 VII Marketing Strategy In Specific Markets VII.1 Position defence strategy Lotteria constantly offers attractive promotions to attract customers as well as combos for them to choose They consistently pay attention to the customer's feelings as well as improve the quality of their service Enhance customer experience VII.2 Objective Lotteria's goal is to become the fastest-growing fast-food company in the world To extend its goods and scale with services adapted to the requirements and tastes of the Vietnamese people, the company has actively engaged in new product research and development and design activities Lotteria currently serves the Vietnamese market with more than 260 restaurants in more than 30 provinces and cities across the country 20 VIII VIII.1 Marketing Action Plan Quarter 21 VIII.2 Quarter VIII.3 Quarter 22 VIII.4 Quarter VIII.5 Timeline 23 VIII.6 Projected profit-and-loss Statement IX Marketing Team Structure Product management organizations: In each specific area, an enterprise may have many different specific activities, and it is challenging to manage them in so many 24 different geographical areas Therefore, the division into geographical regions helps administrators better manage their organizations, limiting the difficulties caused by geographical location As the business's market grows nationally or internationally, the functional organization model can be organized in functional and geographical areas The geographical organization allows for unified direction and coordination of commercial activities Each market manager controls their team in smaller territories, and each site manager controls multiple salespeople According to the group, this is a suitable model for Lotteria because each region in Vietnam has many differences The geographical division makes it easier to manage And such division by region helps Lotteria penetrate the Vietnamese market more quickly, reaching people according to different regions Human resource management, as well as sales departments, can be resolved faster In each specific area, an enterprise may have many different specific activities, and it is challenging to manage all of them in so many different geographical regions Therefore, the division into geographical regions helps administrators better manage their organizations, limiting the difficulties caused by geographical location 25 X Marketing Metrics X.1 Setting standards of performance X.2 Measures of customer satisfaction Establish a customer satisfaction measure through which to understand their wants and preferences as well as their behavior and awareness of Lotteria's brand In addition, use interactive channels as a means for businesses to reach and communicate with customers X.3 Specifying and obtaining feedback data Research on awareness as well as customer satisfaction for Lotteria brand in Vietnam 26 X.4 Evaluating feedback data Regarding the awareness level of customers, they easily recognize the Lotteria brand through the location where they put the store and also the eye-catching red color, and customers recognize that they are mostly people of the same age have not mastered finance (students) are younger than 18 years old and the age of maturity is from 18 to 35 years old when they have mastered their finances And through the report, it can also be seen that they are satisfied with the service attitude of the staff as well as the way Lotteria decorates the restaurant, and their dissatisfaction with the price of Lotteria X.5 Taking corrective action Lotteria has implemented price campaigns such as:  Active price reduction: Market share halved, price reduction is necessary to prevent market shrinking  Actively raising prices: The company commits that prices will only increase if the domestic inflation situation is too severe, increasing production costs and the price increase is aimed at stabilizing profits 27 References https://www.academia.edu/4265926/Lotteria_Marketing_Plan_Final https://www.lotteria.vn/ https://vietnambiz.vn/lotteria-viet-nam-canh-tranh-ra-sao-voi-kfc-jolibee-truoc-khi-xuathien-thong-tin-co-the-dung-hoat-dong-20210417182520324.htm https://cafebiz.vn/ngang-ngua-ve-doanh-thu-nhung-lotteria-cong-lung-gong-lo-kfc-thulai-deu-dan-tram-ty-dong-moi-nam-20210417122800667.chn https://zingnews.vn/kfc-lotteria-jollibee-lam-an-ra-sao-o-viet-nam-post1205706.html? fbclid=IwAR0Gt9wt4K6eZtIAm4cuvrbV4dIAQBI9c_lIKRDeLz8oUnBbK4U00xd5r40 http://cats-co.com/tin-tuc-1/item/74-nhung-chien-luoc-cap-do-kinh-doanh-business-levelstrategies.html 28 ... Strategy III.1 Differentiation - Analyzer strategy Figure Five Business Unit Competitive strategies According to the figure above, Lotteria has chosen a differentiation strategy as the main strategy. .. more and more known, which is a condition for Lotteria to develop further 19 VII Marketing Strategy In Specific Markets VII.1 Position defence strategy Lotteria constantly offers attractive promotions... Market Definition 16 VIII Marketing strategy in specific markets .17 8.1 Position defence strategy 17 8.2 Objective 17 IX Marketing Action Plan