LOTTE DEPARTMENT STORE

INTEGRATED
MARKETING PLAN

NGUYEN QUYNH TRANG

 OVERVIEW
Lotte Department Store is an integrated multi- complex
commercial construction with total floor area cumulatively
27,000 square meters, which mingles retail business with top-
notch service for customers.

The Department Store breaks the ground in Vietnam to

establish its presence as a full-line distribution channel
encompassing a wide range of approximately 300 branded
luxurious and household products,furnished by exquisite
dining and leisure facilities.

Since its market entrance in 2014, Lotte Department Store

has generated a considerable market exposure and
nationwide recognition for its reputation in Vietnam.
However, the aggressive competition against other
heavyweight rivals in retail industry in Hanoi is triggering the
importance of a well- tailored and distinctive marketing
strategy for Lotte Department Store to ascertain its growth
sustainability.
 TABLE OF
CONTENT

OBJECTIVE STRATEGY IMPLEMENTATION

PLANNING

Situational Market Main tactics

Analysis Segmentation Timeline
Objectives Target customer Estimated budget
Identification Measurement
Brand Positioning
Define main
strategies
 STRENGTH

01
Location : Lotte Department Store is situated in Lieu Giai Street, the capitals melting pot
with a strategic joint of transportation system and urbanized surroundings . The central
location is key element to market access as all highways and main roads are perfectly linked
to the site and the 65th- floor skyscraper is ubiquitously caught sight of within Hanoi.

02
Neighborhood site : Based on the foundation of a business centre with high density of
office buildings, foreign embassies, luxurious hotels and high-profile residential community,
Lotte Department Store is likely to acquire both diverse and sustainable customer pools.

Corporations reputation: Lotte Department Store spikes in growth as the market leader in

03
South Korea with nearly 40 % market share occupied.With brilliant business model of full-
line distribution retail area and the corporations reputation to dominate over its suppliers,
Lotte Department Store can provide a vast range of products to cater for different customer
segments.

04 Experience in emerging markets: Lotte Group proves a great record of past experience in
emerging countries which bear similarities with Vietnam including China, Russia and India as
striking examples.

05
Market offerings: Products displayed in LDS comprise a vast collection of brand names
many of which havent established emergence in Hanoi yet and enables all customer
segments fulfill personal demands.
 WEAKNESS
Lotte Department Store also exposes considerable internal weaknesses regarding its
organisational structure, localized operation and collaboration with multi stakeholders.

01 Organisational Structure: As a family-based corporation, Lotte Group adheres to the core

principles and initial structure in stead of diversification of its management board profiles
and enhancement of market flexibility.

02 Localised operation inefficiency: Although Lotte group demonstrates a striking business

portfolio and success in retail industry, they do not succeed in attempt to draw attention
and retain local customers compared to some domestic retail giants.

03
Lack of collaboration with stakeholders: Business sustainability of Lotte Department
Store is reliant upon its cooperation with state government,local authorities,suppliers and
even customers to drive financial growth,product development and market existence
against competitors.

04 Fake products from China are penetrating into Vietnams retail market, which makes the
competition of price and product differentiation tougher than before.
OPPORTUNITY According to current market performance and future trends of domestic environment,
some critical points are illustrated as below:

01
Cultural influence: With a soft power of South Korea over economic and cultural influence in
Vietnam, Lotte Department Store may acquire many opportunities in pulling its customer
needs in strategic fields such as fashion and cosmetics, cinema and household appliances.
Demographic feature of customer:As Vietnam being modernized and GDP per capita
gaining steady growth, Vietnamese customers are more brand-oriented and invest more in

02
leisure activities and products related to personal branding including fashion, boutiques and
jewelries,..etc.. Vietnamese consumer confidence index is 114 and the middle class number is
accelerating in Hanoi in those current years.

THREAT Some predictable challenges Lotte Department Store may confront with in future may be :
- Fierce competition in retail market:The inevitably strong market presence of domestic retail
giants such as Trang Tien Plaza and Vincom shopping centres,.. combined with market entry of
international corporation such as AEON Mall, IPH Indochina Plaza (Indochina Capital),

01 Parkson (Lion Group), may overtake Lotte Department Store in market share and future
growth.
- Online shopping trends : As global trend towards online shopping and Vietnamese improving
technology infrastructure, local customers swift demand towards online shopping for
convenience, updated collection and unlimited access to available products. This calls for

02
Department Store to keep pace with modern online channels and enhance unique features to
retain customers.
 OBJECTIVES
Based upon market analysis in the case of Lotte
Department Store, following objectives of
marketing plan can be established:
- Increase market exposure and awareness of
Lotte Department Store by 30%
- Generate revenue increase by 20%
- Achieve higher membership registration by
10%
MARKET OFFERINGS
Lotte Department Store covers a 6-floor areas up
to 27,000 square meters to offer products
including luxurious overseas brand names, general
merchandise, womens and mens fashion items,
sports and household appliances for exclusive
shopping experience.
Lotte Department Store also extends its
contemporary product and F&B to cater for
consumption demand mostly driven by young
customers.It is noticeable that the coffee shop,
bakeries are launched crossing the shopping
complex while high-class restaurants are situated
in 6th floor.
 TARGET CUSTOMER

There are 3 main target segments for Lotte Department Store including high-income businessmen,
residences in the neighborhood and fashionable youngsters. The high-income businessmen (25
years old and above) and residences around the neighborhood play primary role in generating a
stable revenue and loyalty customer registration while fashionable young clients can foster
significant growth in market exposure of Lotte Department Store.

- Due to the strategic location in the main business centre of Hanoi, main target segment of Lotte
Department Store is high-income people inclusive of both businessmen and residential community
around the site. Those customers are affordable and also brand-oriented towards products to
embellish their professional appearance and satisfy their exclusive expectation of products quality,
as well as demand for business gifts.It is expected that purchase frequency and volume associated
with this segment is inclined to increase significantly with improvement in domestic economic
landscape and inward migration of foreign people for international business,mainly from Asian
countries (Korea, Japan, China) and some Western countries.

- Young generation make up less purchase volume compared to high-income businessmen and
residential community with unstable interest in latest fashionable items or in discount seasons .
However,this group can accelerate market exposure and dynamic growth with powerful social
engagement and the large scale of community.
 BRAND POSITIONING

BRAND MESSAGE:

The aim of the marketing plan is to demonstrate brand image of LDS as the topnotch modern luxury
shopping area with high-standard service in Hanoi to provide customer excellent one-stop shopping
experience.LDS presents an overwhelming image of sophisticated design and all-in-one shopping
area that triggers customers curiosity and connection with the brand.

Price range
Trang Tien Plaza
Parkson
IPH Indochina LOTTE Department Store

The Garden Centre Vincom

Dolphin Plaza

Excellent service and quality

 MAIN STRATEGIES
There are 2 significant strategies for this marketing case, which are to leverage current online
marketing channels and focus on large-scale event organization in Lotte Department Store.
- Leverage current online marketing channels:
Establish a comprehensive investment in online channels comprising official website, social media
channels,email and mobile marketing.
As online channels are enhancing its importance and existence as integral part of all communities
for interpersonal connection, trend updates and integrated applications, technology-based
infrastructure is to be upgraded to establish seamless relationship with customers. Those channels
can enable customers to tap into various product offerings and provide useful information for
shopping experience in normal or special occasions as well as contribute personal feedbacks while
Lotte Department Store can effectively implement a latest online campaign and gain customer
insight for marketing planning.

- Focus on event organization to accelerate brand exposure and awareness of Lotte Department
Store.
As the overall trend of largest retail centres in Hanoi to attract potential customers and media
attention is to host a large-scale event, Lotte Department Store should allocate resources in
organizing events related to specific trends or common interest for mass audience.Meanwhile,
medium and occasional events should be held for a customized segment to establish sound
relationship with those customers.
 MAIN TACTICS

Social Media
Lotte Department Store can expand its presence towards mass audience and targeted segments
through various added social media platforms such as Youtube and Instagram.

FACEBOOK FANPAGE
Facebook is the main online communication channel of LDS besides website but has a relatively low
reaches and subscriptions compared to other new entrants and existing rivals
Comparison: With nearly 90,000 likes in fanpage, Lotte Department Store barely upscale market
exposure and brand awareness while biggest rivals such as Vincom Centre and AEON Mall
demonstrate impressive figures of 300,000 and 350,000 likes respectively.
Recommendation for features :It is urgent that LDS raises awareness in FAcebook fanpage with
more lively,interactive videos and livestreams as well as more updated images about the LDSs
unique interior design and modern facilities adding to occasional news update.
Main communication tactics :
1.KOL (Key Opinion Leaders) as famous celebrities with high-class and fashionable brand image
2.Viral campaigns to promote contagious presence of LDS with audiences active engagement and
generate word-of-mouth effect
3.Improve check-in,recommendation and rating features to allow audience to create feedbacks and
share brand experience
 MAIN TACTICS

INSTAGRAM
As an innovative and prosperous media channel, Instagram presents numerous advantages to LDSs
marketing with a professional layout of brand portfolio,global audiences reach and powerful
hashtag feature. The main target audience of campaign is fashionable youngsters, both Vietnamese
and foreign people who seek for high-class shopping experience and unlimited entertainments.
1.Create tantalizing impression of Lotte Department Stores interior design and store appearance,
stir the excitement of audience about special features every week/month such as photobooths,
events.
2. Empower users to create hashtag about LDS as a word-of-mouth effect

YOUTUBE
Youtube is increasing in market presence and its quality to offer users integrated channel of video
sharing,interactive conversation,subscription,..etc.. With the final aim to create an official channel of
LDS for subscription and viral campaigns and generate wider brand exposure through product
placement and advertising , Youtube is a truly worthwhile investment for brand equity and
awareness.
Main tactics:
1.Use KOL to promote its brand to specific customer segments
2. Purchase advertising to incorporate the LDS brand in popular videos
3. Create unique and high-quality movie trailer to introduce LDS
 MAIN TACTICS WEBSITE:
Supporting the heated social media coverage,official
website of LDS should be renovated and incorporate
following features:
- Overview of Lotte Department Store
EMAIL & MOBILE MARKETING
(introduction,guidemap, real images of situated stores
and facilities)
As the targeted segments of LDS are high-
- News and events : Update about latest market trends
income people and modern youngsters, LDS
and special occasions in aspect of fashion,
should incorporate email and mobile
entertainment, cuisine as well as excite customers
communication channel in an integrated
about mass forthcoming events such as Fashion
marketing plan
Fair/Talkshows in Lotte Observation Deck
LDS can utilize email marketing to create
- Brand names: Display all brands with description and
powerful visual and professional newsletters
impressive logos
and online catalogues to potential customers
- Catalogues and flyers: Present up-to-date promotion
about latest collections and special
deals and latest arrival in fashion collection and F&B
offer.Mobile marketing is also an ideal channel
- Membership record: Guideline of member
to stay connected with customers by sending
registration and browse all special offers and events
frequent messages to registered members and
exclusively for LDS members
potential customers about latest promotion
- Contact and link to other social media platforms
deals,events.
Moreover, the layout and design style should be well-
tailored towards more vibrant, resonated images and
more interactive features. Some website
demonstrations of related retail competitors are
included as below.
 MAIN TACTICS
EVENT
A PR tactics can be engaged in the integrated
marketing plan to generate a lasting
impression and relationship with potential
customer segments while still achieve
widespread market exposure and gain brand
reputation among local community such as:
1.Special festivals/ fashion shows
2.Contest (Cooking challenges, dancing
competition)
3.Professional talkshows and seminars

MEDIA
Media is a powerful market approach to mass
audience as well as embellish LDSs business
portfolio and reputation through Printed
media (Newspaper, magazine, brochure)
and Broadcasted media (Television,
purchased channels)
Besides traditional and online media channels,
LDS should extend partnership with other
business and financial institutions to attract
target segments.
TIMELINE
BUDGET
 MEASUREMENT

1. Measurement of brand awareness:

Achieve increase in social media engagement by 20% in all channels :
Facebook: Approximately 20,000+ likes and subscription
Youtube: Up to 10,000 subscribers in first quarter and average 5,000 views each video
Instagram: 1000+ hastag in first quarter
Achieve increase in website reach by 20%
2. Measurement of membership registration:
Drive growth of Online registration via website up to 5%
Increase POS Registration by 5%
3. Measurement of revenue generated:
Increase frequent purchase by 20%
Increase annual purchase by 10%