Lotte Group Marketing Strategy & Marketing Mix (4Ps)
Published by MBA Skool Team, Last Updated: December 21, 2016
Marketing Strategy of Lotte Group analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Lotte Group marketing mix, help the brand succeed in the market.
Lotte Group marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Lotte Group Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in Lotte Group marketing strategy can be explained as follows:
Lotte group has a broad range of business sectors spanning the fields of retail, food, pharmaceuticals, tourism, leisure, construction, real estate, finance, insurance, petrochemicals, chemicals, machinery, electronics, advertising, communications, manufacturing, non-financial holdings, logistics, vehicle rental, and other services. All these are the products in the marketing mix of Lotte group, which are covered below:
Food: Confectioneries (chewing gums, candies, biscuits and chocolates), Carbonated drinks, Coffee, Cooking oil, Salads, Noodles, Rice-cakes, Seasoning, Dairy products (milk, formula milk, baby food, fermented milk, juice and soymilk), Meat, Hamburgers, Ice cream, Health supplements, Liquor, Juice
Retail: Department stores, Discount stores, Packaging material services, Food processing services, Wholesale retail convenience stores, Apparels, Supermarkets, Trading services, Multiplex movie theaters, Movie distribution and investments, Online commerce services, TV home shopping services, Retailing of home appliances
Chemical/construction/manufacturing: petrochemical materials, Intermediates, Synthetic resins, Synthetic-fiber raw materials, Construction project management services, All-in-one digital equipment, Copiers, Printers, Fax machines, Scanners, Projectors, Film, camera, printing and photo developing chemicals, Photo developing equipment, Recording media, Digital image equipment
Tourism: Rent A Car, Real Estate Development, Hotels, Golf Course, Shopping Mall Operation, Asset, Management, Financial Consulting
Below is the pricing strategy in Lotte Group marketing strategy:
Lotte competes with its competitors on Price along with quality and customer satisfaction.
Therefore, it follows a marketing mix pricing strategy of competitive pricing. However, it has a wide range of products meant to cater every category therefore it also has medium and premium price ranged products. All food and convenience goods are low priced. Seven Cafe coffee kiosk passed 1000 store mark by selling quality coffee at one-third the standard coffee shop price. Lotte group develops its brands such as Tongkeun, Sonkeun, and Choice L private at prices which are affordable for common families. Lotte All My Shopping Mall site provides online shopping which cuts the middleman and therefore lowers prices providing value to customers. The site also offers a variety of discounts.
Lotte also has a range of products offered at higher prices. Lotte has its own brands of high quality private brand merchandise which are reasonably priced and cater to different demographics and consumptions. Lotte health and beauty store develops its own brands of mask packs, brushes and other beauty items which are priced at value. Lotte hotels is a premium chain of hotels and resorts. Yorihada brand of ready-to-cook meal solutions is a premium brand
Lotte Group Place & Distribution Strategy:
Following is the distribution strategy in the Lotte Group marketing mix:
Lotte shopping has Lotte Department Store, Lotte Mart, Lotte Super, Lotte Cinema and LOHB’s. Lotte department stores are present in Vietnam, China and Russia. Lotte Mart are hypermarkets with more than 260 stores in Korea, Indonesia, Vietnam and China. Lotte Super offers fresh food items and uses information technology and optimised logistics to deliver quality products.
Lotte Hi-mart sells electronic goods and is Korea’s largest electronic goods retailer. There are 440 stores in Korea. Lotte.com is an online platform, it provides Internet and mobile services. Lotte home shopping offers a wide variety product through its own TV channel.
Lotte hotels is a chain of premium hotels present in Korea, Russia, Guam and Vietnam.
Lotte Group Promotion & Advertising Strategy:
The promotional and advertising strategy in the Lotte Group marketing strategy is as follows:
Lotte uses aggressive customer centric marketing as a part of its marketing mix promotional strategy. Lotte along with its partners run several major sales events which feature huge discounts. These events help surpassing its growth target. The events include Black Shopping Day, Lotte Black Super Show sales and Korea Black Friday sales event. These events provide attractive deals for customers leading to customer satisfaction and higher sales. Lotte aims to use big data analytics to further improve its customer centric marketing techniques.
Hence, this gives an overview on Lotte marketing mix.
About Lotte Group:
Lotte group is an international conglomerate based in South Korea and Japan. The group operates in South Korea, Japan, China, Russia, India, other East Asian countries and the US. It has over 60 business units which include retail, foods, tourism, petrochemicals, construction and finance, among others. The group employs 60,000 people.
The Lotte group started with the Established Lotte Confectionery in 1967 and later ventured into other segments. Lotte is the largest confectionery manufacturer in South Korea.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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