Words: 3993
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 new types of buns will be introduced, which are Veggie Rice Bun and Whole Wheat Bun, in order to offer a healthier option for customers. There will be a promotion plan for these new products with different strategies in pricing, placement and sales promotion in order to make it more appealing and widely known.
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. SITUATION ANALYSIS COMPANY DESCRIPTION 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 (Auto 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 Auto 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 (Auto 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.
In addition, they can gain advantages by positioning their offerings in the minds of customers. . Marketing Intermediaries They are the firms that help the company to sell, promote or make-available a good or service. In Lotteries, the goods and services are provided to the customer’s needs and wants immediately on their outlets. There are marketing service agencies who helps to research the market to build marketing strategies and execute promotional materials in order to branding and promote the products relationship with current consumers.
Moreover, physical distribution firms are transportation firms who help delivering the materials for the Lotteries shops daily and maintain the good condition f food and other materials on the way. They are the ones who corporate with Lotteries as partners to deliver the best products and services to customers; therefore, Lotteries should corporate with these intermediaries to create common values among each other and with the customers. Macro-environment 1. Demographic: According to CIA World Fastback, the population of Vietnam has reached more than 91 million in July 2012 (CIA 2012).
With the labor generation occupied the majority of the population, Vietnam is considered a country with young population (Tong Cue Thong Eke 2012). This also means that the spending power of Vietnamese is going to increase, and as the young generation is living in a faster pace, Vietnam appears to be a very promising market to expand products such as Loiterer’s. Along with the rising trend in Internet usage, Generation Y and Z are the 2 dominant groups in Vietnamese population (Coming Intestines 2012).
Lotteries can now send the messages in a more cost efficient way, through a channel that is very actively and widely used. In 2009, there were more than 26 million people living in urban area (Tong Cue Thong Eke 2012). There is also an increasing trend in people moving from aural areas to urban areas. This results in the expansion economic centers in Vietnam, especially in Hanoi and Ho Chi Mini City. As more and more people inhabit in big cities, the demand is also increased. 2. Economic: In 2011, Vietnam GAP reached 1,300 USED per capita (Kink 2011). That was an increase of 5. 9% in compare to the year 2010 (Sunny Ann., 2011). Accordingly, though slow, the buying power of Vietnamese consumers is growing, which reveals more opportunities for the brand to expand itself in the market. At the moment, the consumer spending patterns is more about instant products, focusing on nonviolence and simplicity of usage (Matches, 2009). There is also an expecting trend of the consumer focusing more and more on health issues (Throng Ha, 2006). Lotteries has many products that suits very well with those trends, not to mention that the brand also has an advantage of bringing the Asian taste in a Western dish. . Natural environment: Vietnamese natural environment is being polluted quite heavily. Annually, there are Economic development in Vietnam, though had brought benefits, is also causing great pressure to the environment (The World Bank 2011). Moreover, the increasing umber of vehicles in urban areas also accounted for the polluted atmosphere in big cities. At the moment, Lotteries is paying attention to the environmental issues, specifically by using disposable packaging that mainly made from paper.
However, they are still using plastic bags to contain the bring-to-go food, which is considered harmful to the environment and may harm the reputation of Lottery as a brand with strong environment and safety food management (Lotto 2012). 4. Technological More and more people now have access to the Internet, especially in urban areas. According to Coming (2012), there are around 35 million Internet users in 2011. The Internet penetration rate in all cities reached 58% in 2011 (Coming Intestines 2012).
With the appearance of modern technologies like tablet computers, smart phones and 36 mobile service, users can get access to the Internet more easily and more frequently. Lotteries is now having more options in communication channels which work faster and more effectively to distribute the messages. Specifically, Lotteries has been constructing a company website in Vietnam and enable customers to order online. However, the website has not been driven stably, which affects the sales of delivery service and communication with customers.
Lotteries should quickly develop the website more effectively and stably in the future. 5. Political Since the country has Joined WTFO in 2007, Vietnamese government is more opened to foreign investment (WTFO 2012). The market also opens to different brands from overseas and therefore it is considered an opportunity for Lotteries to expand its market in Vietnam. 6. Cultural Vietnamese people highly value the concept of face, which is defined by social status, uncial condition or more specifically, the things that one owns, buys or uses.
As life is getting more and more fast-paced, fast food is one of the developing trends among the youth. There is also a dominating Korean lifestyle affecting the young generation of Vietnamese. Since Lotteries is a brand originated from Korea, there is a high chance that the number of people having positive attitudes toward Lotteries will increase. SOOT ANALYSIS Strength I Weakness I * Lotteries’ menu contain similar flavor to the taste of Vietnamese customers, which cause the easy adaptability of customers to the food. Lotteries offer a wide range f choices in their menu: from fried chickens with different spices to burgers with different meat and sizes; from fried potatoes to cheese sticks; from orange Juices to strawberry ice-creams (lavatories n. D. ). Customers can easily choose meal with their favorite dishes in a short time. * Stores are available in almost every center of urban areas across the country, which helps Lotteries maintains the top position in market share. Moreover, customers can easily and conveniently find Loiterer’s stores near their houses, workplaces and schools. * Reasonable cost, cheaper than other competitors (lavatories n. . KEF Vietnam n. D. ), Lotteries attracts the variety of target segments and owns high market share * Lotteries keep its high food hygiene and service and product. * Lotteries offers home delivery service, that offer more convenient service for customers I * Although Lotteries is fast-food restaurant but sometime, the customer have to wait a long-time for their orders. Therefore, Lotteries should improve its service more fast and convenient. * Although burgers are the forte which make Lotteries stand-out; there is little promotion for this product category. Hence, Lotteries should develop continual long-term promotion for burger reduce category.
I Opportunity I Threat I * Young people in Vietnam are favorable of Korean lifestyle, varied from food, personal styles to music (West 2008), which open a chance for Lotteries to harmonize Korean culture and Vietnamese taste in their products and services. * According to SO n. D. , monthly income per capital increases 470% from 1999 to 2012. Additionally, according to TENS 2012, 92% of Vietnamese consumers are willing to spend the same or more on food and beverage. It shows that the income of Vietnamese households is increasing dramatically, which will lead to the increase of buying power.
Accounting up to almost 30% of the population (SO 2009), the dominance of young generation (from 1 5 to 30 years old) in Vietnam opens more chance for Lotteries to extend their market share in the future. * The lack of food hygiene and safety in Vietnamese traditional snack food stores/ street-vendor food will bring customers more preference of fast-food product like Lotteries. I * Many competitors such as KEF, Jollied Bee, Carla Jar. , etc. Share the same market in the industry. Hence, Lotteries have to push their marketing plan in order to keep loyal customers and gain market share.
Fast-food industry in Vietnam is becoming more and more competitive, with the entrance of Burger King recently and McDonald in the near future (Auto Tree News 2012). Therefore, Lotteries will have creatively and efficiently use marketing campaign to compete as a key player in the industry. * Fast-food is still considered as unhealthy food in customers’ perception (Lam 2010). Therefore, Lotteries should develop more positive image and feeling about Loiterer’s fast-food product toward customers. I STEP Segmentation I Children I Teenagers I Young adults I Adults I Geographic Age 1 transfers old | 12-17 | 18-30 | under 35 |
Country I They are born and live in Vietnam They can be the experts who live in Vietnam, mostly from Asia areas, Europe and America living in Vietnam I Density Demographic I They live in the urban areas such as HCI, Hanoi, Hi Phone, Dad Nag, Hue, etc. Lottery shops mostly are located in the centre of city or neighborhood I Demographic I Gender I Male & Female I Family size I I | 1, 1-2 Family life Cycle I I I Young, single or divorced Young, married without children Young, married with children I Married with childrearing without children Divorced/Single with schoolchildren without children Single I Income I
Middle to high allowance I Middle to high allowance I Middle to high wages or allowance I Middle to high wages I Occupation I I I Middle to highly paid White collar workers I Education I Kid garden, primary school I Secondary to high school I High school graduated, Undergraduate, Graduated, I High school graduated, Undergraduate, Graduated I Generation I Z (born after 1994) | Z (born after 1994) | Y (1977-1994) | Y (1977-1994) | Nationality I Mostly Vietnamese, Asian (Korean, Japanese, Chinese, Taiwanese, Thailand, Singapore, etc. ) and European, American I Cryptographic I Social Class I Middle class, upper class and high class
Lifestyle I Explore the new things I Active and trendy with Korean wave I Modern, active, busy with work and study I Modern, active, busy with work, Studebaker care of housework, love their children I Personality I Fun, curious I Fun, socialized I Open-minded, socialized and eager to try new things I Open-minded, socialized and eager to try new things I Behavioral I Occasion I Hanging out with family I Hanging out with family and friends I Hanging out with family and friendships with working and studying schedule and need to order fast-food I Hanging out with family and friendships with working and tidying schedule and need to order fast-food I Benefit sought I * Delicious with enough amount of food: Children seek for delicious and easy to eat food with small amount of food to digest. Also, they would be attracted by fun, colorful atmosphere. I * Trendy with Korean wave: they are affected by Korean music and Korean culture; therefore, they want to seek for Korean product and service, including food. * Also they seek for large space and crowd atmosphere to have fun with friends. * Young adults seek for high quality products with reasonable price due to the limited in living expenses. * They are busy with work and study, so hey may seek for convenient service like fast-food and home delivery. * They may find a comfortable and fast service store when hanging out and socializing with friends as well as family. I * They seek for high quality products. They seek for warm and friendly environment for their family gathering * They are busy with work so they may seek for convenient service like fast-food and home delivery. I I First time users who usually are taken out by their parents and fed User status new food and try new things. Gradually they can be regular customers who are familiar with and love our brand in the future. I Regular users who are already familiar with fast-food service and willing to try new products. I Regular users who are already familiar with and find convenient using fast-food service; also they are willing to try out the new products. I Regular users who are already familiar with and find convenient using fast-food service.
Non-users: they may not use fast- food but they buy it for their family or children I Loyalty Status I Mostly they are familiar and stay loyal with Lotteries due to the suitable taste and good service I Attitude toward product I * Positive attitude toward to children’s menu * May indifferent to try the new food but still curious I * Positive attitude toward Korean culture (music, service) and Korean food * Positive attitude toward discount and special deals. I * Positive attitude toward discount and special deals. * Positive attitude toward changing in menu. * May have indifferent attitudes toward the fast- food service and the combination of Korean taste and Western dining culture I Positive attitude toward discount and special deals. * Positive attitude toward to use sometimes I Targeting a. Targeting Variables I Based on the segmentation table above, Allotted is currently targeting arioso segments that are aged under 35.
I Segment size and growth I Vietnam is a country with a very high inhabitance, especially in major cities like Ho Chi Mini, Ha Not, Dad Nag, etc. People living in these places usually have a tight schedule; thus they don’t have a lot of time to have proper meals and much rather have fast food. Moreover, big cities in Vietnam welcome a lot of international cultures so citizens are likely active and open-minded. In addition to this, a Korean food brand like Lotteries will have a big opportunity to gain attention, as Vietnamese people are usually foreign brand oriented. I Structural attractiveness I There are many strong competitors in the market such as KEF, Joliet, Pizza Hut, Domino’s Pizza, etc.
Also, Vietnam Investment Review (2012) stated that KEF is the main competitor in fast food business of Lotteries while it occupies 60% of the fried chicken market share with the population of 125 restaurants in all over Vietnam. However, Lotteries is well known for its burgers where it takes up to 60-70 percent of the burger market share. Plus, substitute products are varied such as street foods; since people can also have quick and cheaper food that are easily found right out on the streets. However, the Korean waves have had a great effect on the young generation in Vietnam; so thanks to that, Lotteries are more able to expand their business in this country. I b. Profile of target markets: Though knowing the target of the fast food industry covers most of the nation.
Since fast food is considered to be a tad more expensive, urban and affluent areas will be focused on more. Individuals in these locations would likely have a high-income occupation and could be single, divorced, married with or without children. Because the fast food industry is global, nationalities of all kinds will be focused on. These target markets tend to be active and modern, therefore, fast food will work well with individuals who are busy with work and study. Also, people who are open-minded and social would make good aims. Lotteries would be good for occasions when families get together or if busy individuals who spend time on work and study want to grab to seek for convenient service like fast food and home delivery.