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Subject:Global competitiveness of Lotte

Department Store and its global strategy

By:Maria van HooijdonkThe Netherlands2011/11/30

Content

• Facts and image of Lotte Department Store• Competition & consumer behavior in Europe:- The Netherlands-France-Germany•Would it work?• Marketingstrategy

What is Lotte Department Store?Facts

Providing sincere and honest service

• The premiere domestic retailer featuring diversified products and sincere services

• 29 stores; 2 overseas (Moscow, Beijing)• Nr 586; The Worlds Biggest Public CompaniesVision: Global top 5, professionality, customers

What is Lotte Department Store?Facts

Providing sincere and honest service

• The premiere domestic retailer featuring diversified products and sincere services

• 29 stores; 2 overseas (Moscow, Beijing)• Nr 586; The Worlds Biggest Public CompaniesVision:

“Customers always come first”“Customers are the Master of Our

Company”“You are our foremost priority”

“More Than Life”“Always With You”

What is Lotte Department Store? Image

Survey Korean people

• Expensive/ for the higher class• Modern interior• Many products• Huge• Crowded• Easy to find

What is Lotte Department Store? Image

Survey European foreigners in Korea

• Chique• Overwhelming• Many products• Huge• Service (≈ ‘too’ many employees)• A day out• For presents

+ Impressive

- Uncomfortable

Competition in the Netherlands

• Hema• V&D• Metz&Co (Europe)

≈ to Lotte Department Store:• Shoppingmalls with different stores

( De Barones; 33.000 m2)

• Bijenkorf

Competition in the Netherlands

• Hema• V&D• Metz&Co

≈ to Lotte Department Store:• Shoppingmalls with different stores

( De Barones; 33.000 m2)

• Bijenkorf De Barones, South of Holland

Competition in the Netherlands

• Hema• V&D• Metz&Co

≈ to Lotte Department Store:• Shoppingmalls with different stores

( De Barones; 33.000 m2)

• Bijenkorf

De Bijenkorf

Competition in the Netherlands

• Hema• V&D• Metz&Co

≈ to Lotte Department Store:• Shoppingmalls with different stores

( De Barones; 33.000 m2)

• Bijenkorf

De Bijenkorf

Competition in the Netherlands

• Hema• V&D• Metz&Co

≈ to Lotte Department Store:• Shoppingmalls with different stores

( De Barones; 33.000 m2)

• Bijenkorf

Consumer behavior in the Netherlands

• Shoppingstreets• 1 Shoppingcenter per city• Men / women• “Kijken, kijken, niet kopen.”

(Looking, looking, no buying)

• Sales• Oriënted shopping or a day out• Don’t want to be bothered• Online

Consumer behavior in the Netherlands

• Shoppingstreets• 1 Shoppingcenter per city• Men / women• “Kijken, kijken, niet kopen.”

(Looking, looking, no buying)

• Sales• Oriënted shopping or a day out• Don’t want to be bothered• Online

Consumer behavior in the Netherlands

• Shoppingstreets• 1 Shoppingcenter per city• Men / women• “Kijken, kijken, niet kopen.”

(Looking, looking, no buying)

• Sales• Oriënted shopping or a day out• Don’t want to be bothered• Online

Consumer behavior in the Netherlands

• Shoppingstreets• 1 Shoppingcenter per city• Men / women• “Kijken, kijken, niet kopen.”

(Looking, looking, no buying)

• Sales• Oriënted shopping or a day out• Don’t want to be bothered• Online

Service (≈ ‘too’ many employees)

Consumer behavior in the Netherlands

• Shoppingstreets• 1 Shoppingcenter per city• Men / women• “Kijken, kijken, niet kopen.” (Looking,

looking, no buying)

• Oriënted shopping or a day out• Don’t want to be bothered• Online

Competition in France

Pleasurable and mainstream shopping• Galerie Lafayette:• Printemps

A day out• Carrousel du Louvre (containing several restaurants including a controversial Mc Donalds.The mall includes a convention center and exhibition hall.)

• Lyon Part-Dieu (It is the biggest downtown shopping center in Europe, 134.000m²)

Consumer behavior in France

• Traditionally-minded Parisians still prefer to buy much of their food from specialty stores, such as bakeries, butcher shops, cheese shops, etc

• Flea markets• A day out

Competition in Germany

• Paunsdorf Center• Ruhrpark Shopping Center• Sevens (Saturn)

• CentrO (70.000 sqm)

Competition in Germany

• Paunsdorf Center• Ruhrpark Shopping Center• Sevens• CentrO (70.000 sqm)

Consumer behavior in Germany

• Men/ women• Compare different stores when

expensive• Long distances (up to 200km)

• Shoppingstreets• Social levels• Brand value (youngsters)

“Customers always come first”“Customers are the Master of Our Company”

“You are our foremost priority”“More Than Life”“Always With You”

CONSUMERS!

Would it work?

1. Lotte: Dutyfreeshop2. Lotte is very transparant3. Bonding4. Like Batavia in Holland

YES

1. With internetshopping

2. Keep up the transparancy

3. Lotte Card

4. Rich people/ exclusive

4. Change image

Would it work?

1. Lotte: Dutyfreeshop2. Lotte is very transparant3. Bonding4. Like Batavia in Holland

YES NO

1. With internetshopping a. With the name-image combination

2. Keep up the transparancy b. In the centrum

3. Lotte Card c. Too many ‘discount’cards

4. Rich people/ exclusive d. Difference per country

4. Change image

a. Lotte is a Dutch girlb. Cosy shoppingstreetsc. Not for too many different

things like boulangeriesd. Consumer behavior

Would it work?

1. Lotte: Dutyfreeshop2. Lotte is very transparant3. Bonding4. Like Batavia in Holland

YES NO

1. With internetshopping a. With the name-image combination

2. Keep up the transparancy b. In the centrum

3. Lotte Card c. Too many ‘discount’cards

4. Rich people/ exclusive d. Difference per country

4. Change image

a. Lotte is a Dutch girlb. Cosy shoppingstreetsc. Not for too many different

things like boulangeriesd. Consumer behavior

Would it work in Europe?

1. Lotte: Dutyfreeshop2. Lotte is very transparant3. Bonding4. Like Batavia in Holland

YES NO

1. With internetshopping a. With the name-image combination

2. Keep up the transparancy b. In the centrum

3. Lotte Card c. Too many ‘discount’cards

4. Rich people/ exclusive d. Difference per country

4. Change image

a. Lotte is a Dutch girlb. Cosy shoppingstreetsc. Not for too many different

things like boulangeriesd. Consumer behavior

Marketingstrategy

• Hairdressers• Higher class sportsclubs (moms & women friends)

• Airplanes• Sundayevents • Connect with internet (forum & shopping)

• Subscription with benefits and card (bonding)

• Listen to consumers and react immediatly on them; communication!

MarketingstrategyHow to create the image and the conversation?

Listen to consumers and react immediatly onthem; communication!

• Reading, clicking, buying, enjoying, writing, talking, reading, clicking, buying, enjoying, writing, talking, etc

Shape the image through:- the right advertisements at the right locations- a suited way of writing to the targetgroup- design!

MarketingstrategyHow to create the image and the conversation?

Listen to consumers and react immediatly onthem; communication!

• Reading, clicking, buying, enjoying, writing, talking, reading, clicking, buyinh, enjoying, writing, talking, etc

Shape the image through:- the right advertisements at the right locations- a suited way of writing to the targetgroup- design!

Marketing strategy

• Babbelbox !

• Talkwall

Thank you very much!

Questions & discussion