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

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LIST OF MEMBER EVALUATION
NO.
1
2
3
4
5
6
7
8

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
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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.

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TABLE OF CONTENT

I.

Situation Analysis.......................................................................................................7
1.1. Company...............................................................................................................7
1.2. Market Trend........................................................................................................7

II.

1.2.1.

Growing Presence of International Fast-food Restaurants in Vietnam........7

1.2.2.

Affected by the covid-19 pandemic............................................................8

1.2.3.

Competitor..................................................................................................8

Mission Statement......................................................................................................8
2.1. Vision.................................................................................................................... 8
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
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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

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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.

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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. 1 position in terms of “Brand Power” for 7 consecutive
years granted by “Korea Management Association”. Ranked No. 1 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)
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 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 1. 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
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ingredients such as beef, pork, fish, shrimps, etc. The point making Lotteria different
from the others is their secret receipt. Therefore, customers can distinguish Lotteria
among other competitors easily.
Besides, based on their intended rate of product-market development, we consider
their strategic type is Analyzer. Since Lotteria focuses on maintaining their position,
especially price attributes, by the affordable price. Moreover, Lotteria focuses not only on
real products to develop customers' consumption habits, but also on new products
corresponding trends and customer behavior to expand the target market.
III.2. The strategy goal
 Business product development.
 Open the school wide, gain the section to strengthen and enhance the prestige and
competitiveness in the fast food market in Vietnam.
 Increase revenue, increase profit.

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IV. Macro-Analysis (PESTEL)
IV.1. Economical
In general, the economic situation in recent years has had a very fast economic
development. People's living standards are generally stable and improving. Therefore,
people's living expenditure levels have increased. This is also an opportunity for the fast
food industry in general and Lotteria in specific to have a significant development.
At the moment, the consumer spending pattern is more about instant products,
focusing on convenience and simplicity of usage . There is also an expecting trend of the
consumer focusing more and more on health issues. Lotteria has many products that suit
very well with those trends, not to mention that the brand also has an advantage of
bringing the Asian taste in a Western dish.
IV.2. Social

Vietnam is a multi-ethnic country which has a great deal of kinds of culture in
cuisine and communication. Although Lotteria has to understand and change to adapt,
they have developed outstanding product lines other than hamburgers. Besides, training
professional staff who always respect customers and serve enthusiastically is an
advantage in making a strong impression on the Vietnamese.
IV.3. Technological
More and more people now have access to the Internet, especially in urban areas.
With the appearance of modern technologies like tablet computers, smart phones and 3G
mobile service, users can get access to the Internet more easily and more frequently. .
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Following the continuous growth of E-commerce, Lotteria also has a fan page
with more than 1,3 million followers. Lotteria uses flexibly both on-site and take away
sales linked to social networking sites and online food ordering applications attracts many
customers, helping them access customers easier.
IV.4. Environmental
The Vietnamese natural environment is being polluted quite heavily.
Annually,there is an estimate that countless hectares of forest are being cut down.
Economic development inVietnam, though it has brought benefits, is also causing great
pressure on the environment . Moreover, the increasing number of vehicles in urban areas
also accounted for the polluted atmosphere in big cities.
IV.5. Legal and Political
To attract international investors and encourage businesses expanding the market,
the Vietnamese government has been trying to build a stable legal system => It is also an
opportunity for Lotteria in the Vietnamese market.

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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..
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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.

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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.
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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:

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Figure 2. Positioning map of Lotteria, KFC and McDonald's

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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.

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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.

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VIII.
VIII.1.

Marketing Action Plan

Quarter 1

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VIII.2.

Quarter 2

VIII.3.

Quarter 3

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VIII.4.

Quarter 4

VIII.5.

Timeline

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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
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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.

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