Lotteria Marketing Plan Essay
Another disadvantage is that fast-food is still considered unhealthy in consumers’ perception and therefore there are quite a lot of people who are not willing to purchase fast-food products. However, there also exist a number of internal and external factors that Lotteries can take advantage of. Firstly, as the economy is developing, peoples’ income is also rising and therefore they are willing to spend or more on food and beverage, especially those which are up to their standard of hygiene and safety.
Secondly, young Vietnamese generation are experiencing a strong influence of Korean lifestyle, which reveal an opportunity for Lotteries to be more preferable as it also carries some value of Korean culture. Moreover, Lotteries’ menu contain similar flavor to the taste of Vietnamese customers, which cause the easy adaptability of customers to the food, not to mention a wide range of choices in their menu.
In this marketing plan, all of the influential factors as well as different consumer segments are going to be analyzed in order to find the most suitable strategies to utilize the opportunities as well as to overcome the obstacles of Lotteries on its way of achieving the objectives in consumers’ attitudes and behaviors. In addition, 2
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Finally, this plan will propose some strategies in employee training and online ordering service to help Lotteries expand further to the market as well as to maintain relationships with the existing customers. There are also some adjustments to the current marketing plan of Lotteries suggested in order to exploit the opportunities of the company more effectively in the market. Lotto Co. Was originally established in June 1948 in Japan with the aim to provide an internationalization and diversification products and services to customers (Lotto Co. Ltd. 2012). In 1967, Lotto Co.
Ltd. Expanded their market to Korea, established Lotto Group to offer a modernized food industry and a high-standard lifestyle to their customers (Lotto Group 2012). Nowadays, Lotto has grown into a global company with offices in more than 50 countries worldwide, various sectors and approximately 4,700 employees (Lotto Co. Ltd. 2012). Food and Beverage is still the forte of Lotto Group ND has a stable development in the global market especially Japan, China, Russia and Vietnam. In 2011, Lotto had earned *522. 0 billion in total (Lotto Co. Ltd. 2012). Lotto entered Vietnam market with their forte – food and beverage.
However, it is not establishment of the first Lotto Mart in Ho Chi Mini City. In Vietnam, with KEF, Lotteries is the main player in fast-food franchising business (Thou Tree 2012). Lotto’s mission is to create high – quality services and products contributing to an abundant life for their customers through creativity exploration and challenge confrontation. PRODUCT DESCRIPTION According to Lotteries 2012, Lotteries is the leader in the Korean fast-food industry with 550 billion won sales in 2009. Firstly appeared in Vietnam in 1998, yet Lotteries is not popular till the entrance of bulldog burger in 2004 (Lotteries 2012).
According to Thou Tree 2012, Lotteries is the owners of more than 120 shops across the country, aiming to open 140 stores by the end of 2012. Entering Vietnam market, as the similarity in dining culture as well as Asian taste, Lotteries Vietnam quickly attracts the taste of Vietnamese by the outstanding flavor of modern Korean fast-food. With the stable development and market share in Vietnam, Lotteries aims to become the 1st choice brand in the near future (Lotteries 2012). With strong growth of economy, consumers now prefer the convenient and affordable food as their first option in their hectic daily lifestyle.
Realizing this rising demand, many fast-food franchises have entered the young Vietnamese market with the hope to offer consumers with more alternatives to their dining options. They provide products for consumers with suitable prizes and high availability. The two biggest fast-food franchises in Vietnam today are KEF and Lotteries, with the total of more than 250 stores across the country (Thou Tree News 2012) With many diverse fast-food products, the main focus of Lotteries when entering Vietnam is still hamburger, the forte of the franchise.
However, due to the recent entrance of Burger King – a well-known brand for hamburger, Lotteries has decided to create a marketing campaign to promote and sustain the position of Lotteries in the marketplace. MARKETING ENVIRONMENTS There are several components that have direct or indirect impacts on marketing’s management of Lotteries; they help the company to build and maintain its strong legislations with the target customers. To illustrate, micro environment and macro environment make up the marketing environment. Micro-environment 1.
The Company According to Lotto (2012), Lotteries was part of expansion of Lotto Group. Moreover, in Vietnam, since Lotteries debuted in 1998, there are now 117 branches operating throughout the country and nearly 50 branches in Ho Chi Mini city (Lotto 2012). Lotto Group is a strong corporation with the aims of enhance consumers living standard, thus they have a strong based management and business strategies. The Lotto Group includes the top management, finance, R&D, purchase operation and accounting that can affect marketing.
For instance, the marketing budget can be controlled by the finance department; the production team can plan to create the suitable products and it leads to prevent potential customers turning to competitors products. Furthermore, because marketing department helps build and maintain strong relationship with its customer, Lotteries grows rapidly in the past few years. 2. Suppliers Suppliers are an important factor to the company’s customer value system. The Vanilla), chicken and vegetables from farmers.
Moreover, controlling the partnership with them can help to bring the great quality of products as well as service. Rising supply cost can affect the marketing and the sales volume so the marketing managers need to monitor the price trends, also watch supply availability and build good long term relationship with them. 3. Publics Media Public: Promotions of Lotteries on the Internet, magazines and television. They generate and affect the public opinions and are a great channel to increase the awareness of the consumers. Internal Public: They are employees of Lotteries.
They ill get bonuses depending on their performances while working. They can be the opinion leaders among the general public and generate opinions about the working environment as well as product and service of Lotteries, which actually would bring strong reputation for Lotteries in the public. Therefore, Lotteries should provide good working environment. General Public: Feedbacks are always taken from the customers in order to know about the attitude of the public. Because the general publics’ attitude and behaviors toward product and activities may affects its reputation and sales. 4.
Customers One of the important goals of any marketing strategy is to identify and achieve the needs of the customer. Lotteries can ensure greater customer satisfaction by considering customer importance and by that, it increases the long-term goal of the business. If Lotteries cannot develop customer loyalty and satisfaction, they could lose the customers quickly to the strong competitors. Lotteries has a large group of customers, including: Customer Markets: Teenagers and young adults, who love fast- food services and the taste of Korea food, are the main target customers that Lotteries aims to.
They are the one who directly bring profits for the company by using our products and service; therefore, Lotteries should always cares about the demand of those customers and satisfy their needs with the best product and service. International Customers: Lotteries has more than 140 branches in the Southeast Asian nation so they have international customers in many countries. The large size of International markets shows the strong ability of market penetration of the company. 5. Competitors Vietnam – a developing country with a young population is a promising market for fast food industry.
Today, people concentrate on saving their time to find place and eat good food. As the result, fast food market in Vietnam is highly competitive since numerous fast food chains have been developing in Vietnam in order to satisfy customers’ needs. Direct Competitors: KEF is the biggest competitor of Lotteries in Vietnam. KEF has three main products: chicken meals, hamburgers and snacks. There are about 100 shops opening in big cities and KEF has been leading in fast food market today with more than 60% of market share in Vietnam branches.
It can affect Lotteries on their share in the market. Other direct competitors: Carl Jar’s, Burger King, Jollied. Especially Burger King, which has entered Vietnam market in 2012, would soon become strong competitor of Lotteries in term of selling burgers. Indirect Competitors: Pizza Hut, Domino Pizza, King BBC, Subway and other restaurants. Vietnam market with the increasing addition, the market conditions in Vietnam are more favorable than before. As fast food chains are growing rapidly, Lotteries must provide greater customer values in order to adapt to the needs of target customers.