I.

ABSTRACT

The marketing mix is a foundation model in marketing, it has become the dominant framework
for marketing management decisions of any enterprises. Our research paper concentrate on how
Lotteria has applied the concept of marketing mix 4Ps from 2004 to now, and the role of this
strategy in the achievement of business in Vietnam fast food market. Compared to previous
works, our thesis is mainly based on the business practices, rather than the theoretical analysis.
However, we still use some fundamental theories as the basis for our research. The literature is
collected from varieties of economics online web pages concerning the contents of the marketing
mix 4Ps: product, price, place, promotion and the secondary data of this study are mainly
aggregated from online newspaper articles, as well as the website of Lotteria. The combinations
of practical information and theoretical contents demonstrated that thanks to putting the
marketing mix 4Ps into use appropriately, Lotteria has acquired much success in Vietnam.
Nowadays, with an international stature, Lotteria is leading the fast-food industry in Vietnam
with over 210 restaurants in approximately 30 cities/provinces throughout the country and these
numbers are increasing incessantly. Besides, Lotteria has covered the entire market by
diversifying its products, including chicken, burger, drink, rice, and dessert. In addition, the
prices of Lotteria products are set at suitable levels, helping the company improve its
competitiveness in the context of Vietnamese consumers are always price sensitive. Moreover,
the promotion strategy of Lotteria is also outstanding because it has taken advantage of the boom
of Korea culture in Vietnam.

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II.

INTRODUCTION

The franchising model is popular and well-suited to a developing economy like Vietnam. The
culture of entrepreneurship is ideally suited to franchising as it provides investors with a
relatively rapid avenue of entering business with controlled levels of investment and at a reduced
risk. In 2016, franchise deals rose 15 to 20 percent compared to 2015. At present, most franchised
businesses in Vietnam are focused on fast food and retail. Many factors lead to the success of
franchising in Vietnam, prominent among them is marketing.
Marketing is one of the most long-life and important parts of business world. A proper marketing
strategy holds a crucial position in the success of any companies. Marketing means the
identification of what people and society need. If a product is sold but not meet demand of
customer, it will not have profit. Within many marketing strategies for the companies to choose,
marketing mix 4Ps is a well-known marketing strategy that is applied widely by many firms.
Of the leading food franchise brands in Vietnam, Lotteria is the most common name. Since
Lotteria penetrated Vietnam, it has gain many significant achievements. The aim of this research
is to present the information and knowledge, which our group has obtained and conducted about
the marketing mix 4Ps of Lotteria and also, its effects to the success of company. The main
research question is: “How has Lotteria applied the marketing mix 4Ps?”
In order to support and supplement the answer for the main research question, the research is
divided into three parts:

 The first one is to generalize the fast food market in Vietnam and Lotteria company
 The second one is to deeply analyse about Lotteria marketing mix strategy
 The final one is to demonstrate the success of Loteria thanks to apply 4Ps
The research will concentrate on analysing 4Ps: product, price, place, promotion and the business
results: marketshare, revenue, earning before income taxes, compare Lotteria with their
competitor especially KFC and so on.
Because of the purpose of this study and our abilities, we choose to use qualitiative and
quantitative research method, combining with descriptive and explanatory. In addition, the

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secondary database is used and taken from reliable sources such as website of Lotteria, marketer
Vietnam and other online newspapers.
During the process of making this research paper, we have faced several limitations. These
obstacles are mainly caused by the reason that the research is written in English, we have limited
budget as well time and knowledge. Hence, it is not a simple task for us to manage the research
strategies in the most efficient way.

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III.

BACKGROUND

1. Marketing in general
In the modern life, marketing plays an integral part in the development of organization. More
than just selling and advertising, which people usually think of, marketing of today must be
understood in the new sense of satisfying customer needs (Kotler and Armstrong, 2014).
Marketing is defined by many ways. According to the social definition, marketing is societal
process by which individuals or groups obtain what they need and want through creating,
offering, exchanging products and services of value freely with others. However, there are many
other definitions of marketing. To get into marketing, it is helpful to understand what exactly
marketing is. So here are some experts’ definitions of marketing:

• “Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners, and society

•


at large.” — American Marketing Association
“Marketing is the social process by which individuals and groups obtain what they need and
want through creating and exchanging products and value with others.” — Philip Kotler

• “Marketing is any contact that your business has with anyone who isn’t a part of your business.
Marketing is also the truth made fascinating. Marketing is the art of getting people to change
their minds. Marketing is an opportunity for you to earn profits with your business, a chance to
cooperate with other businesses in your community or your industry and a process of building
lasting relationships.” — Jay Conrad Levinson

2. Marketing strategy and marketing mix
A marketing strategy is a plan for reaching people and turning them into customers of the product
or service that company provides. The marketing strategy of a company covers the
company’s value proposition, main marketing messages, information about the target customer,
and other factors.
Marketing mix is a marketing tools that being used to implement marketing strategy of a
company. It includes which a company can do to influence demand for its product. It is also a
useful tool to help marketing planning and execution.

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Marketing strategy and marketing mix are closely related elements of a complete marketing plan.
While marketing strategy is concerned with setting the direction of a company or product line,
the marketing mix is considered in nature and how to carry out the overall marketing strategy.
An effective marketing strategy have the 4Ps of the marketing mix. It is composed of four
variables referred to as the 4Ps of Marketing: product, price, place, and promotion (Rafiq and
Ahmed, 1995).

Figure 1.The Four Ps of the Marketing Mix (Kotler and Arsmtrong, 2014, p.76)


Product
A product is goods or service that a business owner brings out for sale to his target market. It
means developing a product, including the design, quality, packaging, features, after-sales
service, and customer service should be considered.
Price
The price is the amount of money that customers have to pay to purchase products or avail of
services. There are several factors that you have to consider when it comes to price. These
include discounting, price setting, credit collection, and cash and credit purchases.
Place
This regards to location, distribution, and ways of delivering the product to the customer. The
place may include the location of your business, distributors, stores, possible use of the Internet,
and transports.
Promotion

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Promotion is all about the act of communicating the values and benefits of your products to your
customers. It involves the use of different methods, such as direct marketing, sales promotion,
advertising, and personal selling to persuade customers to your business.

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IV.

TECHNICAL SECTIONS
1. Overview of the fast food industry and Lotteria restaurant
chains

a. Overview of the fast food industry in Vietnam

Fast food is a name for food that is made and presented to costumers in short time. It is usually
made with preheated or precooked ingredients, prepared in bulk and sold in packages for takeaway. As a term, “fast food” appeared for the first time in Merriam–Webster dictionary in 1951
but its roots are much, much older.
The fast-food industry is considered as a nascent industry in Vietnam in the 1990s. Today, the
industry is beginning to thrive in Vietnam's two major cities, Hanoi and TP. Ho Chi Minh. At
present, fast food market in Vietnam is experiencing harsh competition. KFC, Lotteria, Jollibee,
and Gloria Jean's Coffees ... continuously opened stores in beautiful locations in Ho Chi Minh
City and Hanoi. Ministry of Industry and Trade showed that total sales of Vietnam fast food
sector in 2011 was estimated at VND870 billion, up 30% y / y.
According to research by AC Nielsen, Vietnam is a primary fast-food market when about 8% of
consumers use fast food from 1-3 times a month and about 90% of Vietnamese consumers are not
familiar with fast food. This figure is too low compared to neighboring countries such as
Thailand, Malaysia, China, India has more than 70% of consumers eat fast food at least once a
month. Although the number is relatively modest (less than 10% of Vietnam's population) have a
habit of using fast food, but with the pace of economic development and increased demand in
modern life, the demand for food Vietnam fast food is growing. For the majority of the
population under 25, Vietnam is also an attractive market for food and drink. This young
generation is considered to be more accepting of foreign products and products. International
brands such as McDonald's, Haagen Dazs, Burger King ... will take care and see young people as
their main customers. Social media plays a significant role in bring fast food brands to the youth.
However, according to Mr.Truong Vo Ham Liem - Lotteria Marketing Director (Lotteria chain,
Lotte Group, South Korea), in the past two years, the fast food market has been stalled and is
being threatened by many competitors, including F & B (food & beverage) brands, local
restaurants, Japanese and Korean restaurants, coffee chains and convenience stores (both fast and
local). Its revenue is dropping because of many factors, but the most important one is that the

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market has more competitors. Many fast food chains have changed their strategy, even ready to
"wipe out" ineffective stores.

b. Lotteria
Lotteria is a chain of fast-food restaurants in East Asia that grew out of its first shop
in Tokyo, Japan in September 1972. Taking its name from its parent company, Lotte, it currently
has franchises in many Asian coutries. It is under the Lotte Group - one of the five largest
conglomerates in Korea. For seven years, it was the No.1 "Brand Power," which was awarded the
"Korea Management Association," and was named No.1 Brand Competitive Brand Branding
value brand value.

 In 1972, company first appeared in Japan and is named after the parent company ( lotte)
 October 1979 The first restaurant was in Korea with the launch of kimchi sandwich
 By 1990, the 100th outlet was opened in Taehakro - Seoul
 Two years later, revenue reached 1 billion won
 By March 2003, reaching the milestone of 900 stores in Korea
 In January 2004, Lotteria officially entered Vietnam
Lotte entered Vietnam market with their forte – food and beverage. In Vietnam, with KFC,
Lotteria is the main player in fast-food franchising business (Tuoi Tre 2012). Lotte’s mission is to
create high – quality services and products contributing to an abundant life for their customers
through creativity exploration and challenge confrontation.
Entering Vietnam market, as the similarity in dining culture as well as Asian taste, Loterria
Vietnam quickly attracts the taste of Vietnamese by the outstanding flavour of modern Korean
fast-food. With the stable development and market share in Vietnam, Lotteria aims to become the
1st choice brand in the near future (Lotteria 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 KFC and
Lotteria, with the total of more than 250 stores across the country (Tuoi Tre News 2012). If KFC
locates in its customers' minds with its signature fried chicken, main focus of Lotteria when
entering Vietnam is still hamburger, the forte of the franchise.

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Figure 2. Menu of Lotteria Vietnam (Lotteria.vn)

SWOT analysis
Strength

-

-

-

-

Weakness

Lotteria’ menu contain similar flavor to the taste of Vietnamese customers, which cause
the easy adaptability of customers to the
food.
Stores are available in almost every center of
urban areas across the country, which helps Lotteria maintains the top position in market
share.
Reasonable cost, cheaper than other

competitors, Lotteria attracts the variety of
target segments and owns high market share
Lotteria keep its high food hygiene and
safety, which create a good image in
customer’s mind as an environment-friendly
service and product.
Lotteria offers home delivery service, that

9

Although Lotteria is fast-food restaurant but
sometime, the customer have to wait a longtime for their orders. Therefore, Lotteria
should improve its service more fast and
convenient.
Although hamburgers are main menu which
make Lotteria stand-out; there is few
promotion for this products. Hence, Lotteria
should
develop
continual
long-term
promotion for burger product category.


offer more convenient service for customers
Opportunity
Threat
- Young people in Vietnam are favorable of - Many competitors such as KFC, Jollie Bee,
Korean lifestyle, varied from food, personal
Carls Jr., etc. shares the same market in the

styles to music, which open chance for
industry. Hence, Lotteria have to push their
Lotteria to adapt more Korean styles and
marketing plan in order to keep loyal
tastes in Vietnam with little difficulty.
customers and gain market share.
- The income of Vietnamese households are - Fast-food is still considered as unhealthy
increasing which maybe lead to the
food in customers’ perception. Therefore,
increasing in buying power.
Lotteria should develop more positive image
and feeling about Lotteria’s fast-food product
- The dominance of young generation in
toward customers.
Vietnam opens more chance for Lotteria to
extend their market share in the future.
- The lack of food hygiene and safety in
Vietnamese traditional snack food stores/
street vendors food will bring customers
more preference of fast-food product like
Lotteria.

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2. Makerting mix 4Ps strategy of Lotteria
a. Product
Lotteria has appeared in Viet Nam for many years. However, KFC appeared in Viet Nam earlier
than them. When KFC is famous for fried chicken, Lotteria chooses Hamburger to be the specific
product to attract customers. They are products that can replace with each other so Lotteria could

reduce competition from a big competitor. Unlike KFC, Lotteria supply products with many
different materials such as beef, meat, fish, shrimp…Products of Lotteria is very diversified from
Hamburger to rice as per sample in Viet Nam.
Product variety
Products of Lotteria are classified conveniently so customers can order easily without
consideration. There are six main product lines are: burger, chicken, combo, dessert, rice and
drink with a lot of alternatives for customers. Lotteria strategy is covering all the market by
diversifying its product. Even combos are also quite diverse to meet the different needs of the
market. If KFC is loyal to chicken products, Lotteria makes it from a variety of ingredients such
as beef, pork, squid, shrimp, and fish. Besides that, they also regularly update the hot menu list in
the community, such as cheese, fried squid, etc. Through this, Lotteria tries to attract customers
ranging from high to low. This allows Lotteria to compete directly with KFC but does not
diminish its brand in the market, as the Vietnamese market is always price sensitive.
Quality
Lotteria core benefit is “Fast food - customers can be satisfied by offering them fast service food
with tasty meal”. All ingredients are fresh, chicken meat Lotteria uses is high quality. The
desserts are also made from the good ingredients consist of Ice Cream Sundaes, Ice Flakes.
Customers satisfy with Lotteria’s products due to their freshness, the food is always freshly made
and there are strict health and safety regulation the ingredients.
Brand name & Logo
Lotteria uses the name of its parent company that is Lotte - a big
multinational corporation in Japan and South Korea. The logo of Lotteria
contains three main colors (red, white and yellow), giving the impression
of warmth, lightness and closeness in the kitchen of a family. The logo is
also simple, easy to identify wherever it appears, with the letter L
capitalized and a yellow circle beside, representing the first two letters in

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the name LOTTERIA. It also makes people easy to think of Hamburger yellow color - typical
product of Lotteria. This is also the exclusive logo of this brand.
Package & Design
Lotteria chains toward modern, convenient and cozy, hence they use red as the dominant color in
their restaurants. Others colors like white, orange, yellow are also used to
make people hungry and attract attention to customers. Lotteria’s products Figure 3. Logo of
are boxed by recycled materials because their campaign is to reduce the negative influence of
disposable packaging to the environment. For delivered products, they are wrapped in two layers
of packaging:
•

The first layer is foil paper that keeps the

•

temperature and quality better and longer.
The second layer is recycled paper and recycled PE
with the logo on it.

Lotteria also minimizes the use of plastic packaging to
protect the environment. Most food and beverages in the
restaurant are in glassware and reusable plastic containers.
Trash can be classified by material such as paper cups,
plastic and straws, rigid packaging, napkins. Ice is put into a
separate

container.

This


helps

Lotteria

create

an

environmentally friendly image and increase the reputation
Figure 4. Packaging of Lotteria
products (Foody.vn)

of products in consumers.
Size

Products of Lotteria include in many sizes: big, medium and small therefore they are in
accordance with ration and income of everyone.
Services
Lotteria has speedy service. Customers don’t take a long time to get their food. There is nothing
that is better than having a considerate meal for busy life now. Furthermore, when customers
come to any Lotteria stores, the staffs always have cheerful smiles and give them a welcome
message: “welcome to Lotteria”. In addition, customer can use the internet freely in any stores of

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Lotteria, which makes customers enjoy the meal and read online news or chat with their friends at
the same time.
Strategies of developing brand


Figure 5. Brand Development Strategies (The Marketing Study Guide)

Lotteria is using line extension at present, where they can keep developing new products to
adjoin into their categories. The latest products which Lotteria supply to customers are Dak Gang
Jeong, Tang Su Yuk and Lemonade, catching up with the trend. In addition, to make products be
in accordance with Vietnamese customers, Lotteria expanded their menu with Rice and Soup that
use with the chicken. Besides, Rice burger is now adjoined into the menu together with Rice
bulgogi and Rice chicken value. Lastly, ingredients of Humbuger, double cheese and double
bulgogi are changed to fulfill the demand of customer.

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b. Price
Price is an important factor in attracting customers to the company’s products and services.
Therefore, proposing suitable pricing strategies is not a simple task, but they are significant to
determine an effective business strategy. In order to compete in such constantly changing and
aggressive marketplace, Lotteria has been using some specific pricing strategies to differentiate
itself from its competitors.
Factors affecting pricing decisions
1. Internal factors
− Product positioning

The price of Lotteria is not very expensive, it is suitable for customers’ needs and trends, and
can compete with other competitors in the market.
− Marketing strategy

Lotteria provides high quality products, ensure food safety. The marketing oriented objectives
is to take a lead in quality as well as to extend the market share. It will set its product price
higher than roadside diner one and competitive price comparing to KFC’s instead of high

−



2.
−

price.
Costs
Fixed costs: costs are made by signed long term contracts.
Variable costs: costs increase when increasing output in the product development period
Costs of consumption: essential cost for discount’s payment.
External factors
Type of market
Due to only KFC is truly competitor in the area of fast foods, it is kind of selling market
competition. Therefore, Lotteria needs to check the change of KFC price regularly to timely

deal with it.
− Cost - based pricing and competition - based pricing
 Hambuger of Lotteria must compete with many business rivals in the market. However, there
is high degree of similarity between Hambuger of Lotteria and KFC’s.
 Setting the price below the market and take a loss if the customers believe that the Lotteria’s

products are in the lower position comparing to KFC’s.
 Setting the price above the market and have difficulty in product consumption.
Company’s pricing strategies
1. List price
Since its first entrance, realizing Vietnamese consumers are highly price sensitive, Lotteria uses
market penetration pricing by setting its products at a relatively low price compared with its
competitors, in order to penetrate the market quickly by attracting a large number of buyers.With


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various products, ranging from main dish, side dish to deserts and snacks, the current price for
Lotteria is only from 5,000 vnd up to 260,000 vnd, depending on different products.

Figure 6. Ice-cream - The lowest price product

Figure 7. The highest price product

2. Discounts

Quantity discount: Lotteria uses the discount price for the consumer based on the number of
chicken pieces they would like to buy. The price will be adjusted on each chicken combo.
For example: if they want to have 1 piece cheese chicken, they would have to pay 36 000VND.
But if they buy 6 pieces, they would have to pay 215 000 VND. This can help the customers save
up to money. Also, it helps to encourage the customers to buy more.
3. Product mix pricing strategies
− Product bundle pricing

This strategy offers combination of products or services, usually some complimentary products to
encourage the purchase amongst potential consumers. The price of combination of a main dish
(chicken, rice, or burger), a side dish and a beverage is at the reduced price compared to the sum
of separate purchase prices. By this way, not only can the customer save up money, minimize
their confusion and maintain satisfaction, but also Lotteria gains more benefits by getting more
revenue from each customer.

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− Product line pricing

It sets price steps between various items in a product line based on:
 Costs differences between products
 Customer’s evaluations of different features
 Competitors’ prices
Lotteria offers many product lines for its customers. The 4 main product lines of Lotteria are
beverage, chicken, rice and burger. Nevertheless, Lotteria also provides various snacks and icecreams. Within each product line, the prices of products are also varied. This strategy aims to
offer customers the variety of choices.
For instance: For beverage, Lotteria’s products are from 15,000VND to 22,000VND. For chicken
fried, the prices vary from 29,000VND to 260,000VND.
4. Price adjustment strategies
− Timing pricing strategy

They offers customers discounts on a certain day. It is called Daily Buzz or Happy Menu. For
example, providing discount for only students from 5PM to 8PM on Wednesdays or at the peak
time for office staffs. By this way, they can attract many customers in this segmentation.
Moreover, they provide several economy combos with customers in time frame 11am – 2pm from
Monday to Friday. This helps to bring a convenient, nutrient and comfortable lunch for busy
people

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Figure 8. Lotteria happy lunch poster (Lotteria.vn)

− Location pricing

Lotteria develops the system of online order for customers who cannot buy directly. Addtionally,

it provides discount of 10% for online order sometiomes. Both help Lotteria to get more
customers in this segmented customers.
5. Market penetration strategy

To penetrate in Vietnam market, Lotteria sells new products at low price at the beginning so that
anyone could buy their products. By doing this
way, Lotteria becomes familiar brand with many
people and get a large share of sustantial market.
For example, in the first months, Lotteria will
apply the strategy as follows: Cusomers buy the
new products and get one cup of drink or buy one
get one for free so as to introduce this new kind of
product. This may make the production cost
increases but it appeals the customers’ trial.

c. Place

Figure 9. Price strategy for new product of
Place represents the locations where a product can Lotteria - Cheese sauce chicken (Facebook
be purchased. It should be called to the Lotteria)
distribution channels. It can be understood that any stores in the real life or anys shop on the
Internet. Delivering the product to where and at what time the customer requests is one of the
most important aspects of any marketing plans.

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In order to fill the market, Lotteria has established a nationwide distribution network. Only in Ho
Chi Minh City, Lotteria now has 84 stores throughout the districts (Lotteria.vn). This is big
advantage because Vietnamese often hesitant to go out to eat goods, enjoy the convenience.

Although many competitors such as KFC, McDonalds, Pizza Hut, BurgerKing ... have a large
number of stores worldwide, in Vietnam, their stores are still very modest in comparision to
Lotteria. It can be seen that Lotteria is very determined in the market in Vietnam.
Channels
Lotteria Vietnam is an official franchise of Lotteria®. However, it is not controlled and managed
by the parent company. Lotteria Vietnam only follows the core ingredients and recipes that
provide by Lotteria® in order to remain the same production. According to Kotler et al. (2009),
Lotteria Vietnam is applying the service firm-sponsored retailer franchise system where it has to
pay for the use of Lotteria® brand name while remains some regulations of the mother company.
Lotteria has been applying direct marketing channel by having products directly distributed from
stores to customers. This method helps control the consistency of messages, so build a clearer
brand image towards customers. However, this can cost a lot more than having many
intermediaries to help distributing the products.
Based on its business objectives, Lotteria's choice in the form of franchise distribution is the best
choice of fast food chains in the world. To now, Lotteria have appeared throughout the country.
Most of them are big cities, urban centers. In addition, Lotteria also hired additional stores on the
street to open its own store. The reason is that Lotteria can serve customers after shopping at
supermarkets, working in offices, so they can rest and enjoy the company's fast food.
At the moment, Lotteria has already had a number of business relationships with some big
shopping malls and supermarkets for example Co-op Mart, Maximart, Parkson, Vincom, etc.
Through this system, the company and its partners plan to achieve their objectives faster with the
combination of resources from both sides.
Coverage
Lotteria opened the first store in Vietnam in 1998. After many years of expansion, Lotteria has
many stores covered 64 cities in Viet Nam. The chain of restaurant are more and more developing
and occupy the fast food market. The major cities such as Ha Noi, Ho Chi Minh City

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concentrates many stores, there are 35 and 84 stores, respectively. These stores is located in the
area which has many inhabitants as well as young people so today, Lotteria becomes familiar to
people in Viet Nam.

Assortments
Lotteria reviewed and adjusted the assortment in light of competition, culture, and changes in
preferences of the target market. Lotteria is a Korean brand, so its cuisine cultures is quite same
as Viet Nam culture. Therefore, Lotteria’s product are easily to be accepted and interested by Viet
Nam youth who enjoys finding various foreign cultures.
Locations
The restaurants of Lotteria built in the center of city, in shopping center, also near office, school,
huge road which make customers find it eassy to notice and park. Moreover, these places possess
beautiful and attractive decoration including colorful walls and furniture that catch customers’
eyes.
Transport
In Vietnam, when you want to order Lotteria, you can use Delivery Service

and call

number 18008099 to order every product on Lotte’s menu that you want (you can see directly this
menu in the Lotteria’s website or telesales will introduce it for you). This is a free number and
Lotteria will deliver at home for you. With the convienient, you will no have paid any fees for
delivering at your home. Besides, telesales will give you all the promotion’s information (if have)
of Lotteria restaurant.

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Delivery staffs are specialized in their delivery job, they help deliver customer’s order to the right
place in the shortest time. Specially, they must assume their customer will receive the right set

that customer ordered with the same quality as in the store.

d. Promotion
Promotion is very important for Lotteria to build and maintain relationship with customers as
well as to promote their monthly updating products and special discounts. Currently, Lotteria use
a lot of promotion tools: Advertising, Sales promotion, Publicity, Direct selling Personal selling.
Advertising
Advertising is a method of stimulating the demand for a product and creating loyalty to the brand.
Advertising is one of the major forms of competition that distinguish one product from another
and is used to inform prospective buyers about a particular product to convince them that the
brand this surpasses competing brands.
TVC – VIDEO: Lotteria has built many successful ads. In addition to the success of TVC with its
hauntingly vocal voice singing opera "lotteria", the company also succeeded in offering
humorous videos introducing service, service space, new product programs or attach the image of
the company with the famous stars like "Snuper in Lotteria", Bigbang,…
Undoubtedly, everyone knows how Korean culture is expanding all over the world. In Vietnam,
the Halyu (Korean culture) labyrinth is even stronger and overwhelmingly dominates the
American Dream. Taking advantage of that, Lotteria has branding in Korea. The Lotteria
branding is associated with other sectors of the Lotte Group such as entertainment, travel and
film, contributing to the brand value of Lotteria. The Lotte Group also invited influential figures
in the entertainment industry as brand ambassadors, among them the most popular group Kpop
Big Bang.
Official Website: The main website of Lotteria (www.lotteria.vn) is used to provide the menu of
Lotteria and also give the addresses of any Lotteria branch in Vietnam. However, the official
website is not developed consistently, which create the disruption in connection with our target
customers, who usually look for menu and may look for online ordering. This is a weakness of
Lotteria compared to KFC when they promote a lot in delivery service as a part of fast-food
service.
In-store display: Banners and posters in store are used to promote new product, promotions and
monthly discounts with the images of products that look delicious and colourful. This not only

provides information to customers about Lotteria products but also help encourage customers to

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come in store to buy products. Lotteria constantly design innovative poster and banners attractive,
humor catch up the trend to attract young people.
Lotteria also spends a lot of time sharing or writing content that is humorous, attractive and
meaningful for its products:

Newspapers/Magazines: Articles about monthly product promotions or discount on popular
magazines and newspaper such as Tiep Thi Gia Dinh, Tuoi Tre, The Gioi Van Hoa. It can attract
multiple readers and it is a reputable way to advertise and promote a specific image through print
media.
Sale Promotion
Coupons: Lotteria constantly offers coupons to customers and attractive combo packages, taking
advantage of every special occasion to attract customers.
Patronage rewards: When a customer regularly purchases Lotteria’s products, they are given a
VIP card that allows them to save 10% of every bill at Lotteria later on.
Sweepstakes & Games: On Facebook page, Lotteria constantly
holds contests to encourage interactions among target customers.
This attracts a lot of participants as well as encourages store visits
and consequently purchasing.

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Public Relations
Facebook page: approximately 1,2M people like fanpage
Lotteria Facebook uses to broadcast any new promotion campaign and menu of Lotteria

frequenlty. This is a good way to spread information on social network because Facebook is a
good medium to interact with customers. Lotteria has been using Facebook to create events that
helps increase visibility to the target customers. This channel also helps create more interaction
with customers compared to the website, especially easily reach and communicate with our target
customers who are savvies of social media. Customers can raise their voice to express their
opinions and feedback about Lotteria products and services.
Sponsorships and Charity
Besides focusing on the advertising strategies, Lotteria also perceives the importance of actions
that bring sustainable values to the society and the community. For that reason, many meaningful
social activities have been proceeded, the most typical ones are: “Lotteria Challenge cup”, “The
Charity trip for Lotteria Facebook fans”, “Hamburger castle”, “Charity canteen”.
Personal Selling
Lotteria applies Territorial sales forces structure, which each sales team is assigned to selected
geographic areas and sell all the products of Lotteria. Lotteria stores are located everywhere in
Vietnam, encompassing from different cities (Hanoi, Hai Phong, Da Nang, HCMC, Binh Duong,
etc.) to separated districts in each city. Since our target segments are living randomly in those
urban areas, territorial sale force structure help Lotteria reach as many target segments as
possible. Also, for each particular area, Lotteria can develop the different promotion plan in order
to fulfill the life-styles and taste of atmosphere and dining music background of customers. For
example, Lotteria in Phu My Hung and District 7, which a lot of foreigners and high-class
customers living, Lotteria stores usually open the foreign music, which in other districts they
open Vietnamese music.
Direct Marketing
Online marketing: Business to consumer (B2C) online marketing is used by Lotteria at the
moment. Lotteria established an official website and official Facebook fanpage which has menu

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available on a separate page for customers. This helps customers to order Lotteria’s products via

telephone for free delivery.

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3. Lotteria – success by applying the marketing mix 4Ps
After 13 years in Vietnam market, Lotteria has step-by-step grown and developed. In the market
share of Vietnam’s fast food, Lotteria has recently become the leader, overcome its biggest rival
KFC, ocuppied more than half of total market share.

Figure 10. Fastfood total demand and market share 2010-2014. (Vinaresearch)

Lotteria’s product packages are innovated and being evaluated as good designs by many
consumers. Moreover, even though being in the leading position, Lotteria still set its product
prices competitively instead of high price. Its prices are also accepted as suitable by majority of
Vietnamese consumers. Besides it, Lotteria owns the largest restaurants network in Vietnamese
fast food market, also among franchise brands. Last but not least, Lotteria always pays attention
to build the good images for the company by accompanying with many organizations in the
social activities that attaching to community. Briefly, applying the marketing mix 4Ps in proper
ways has played an important role in making Lotteria becomes the leading fast food chains in
Vietnam, as well as gained many desired achievements that could not be done easily by any
company.

V.

CONCLUSION

The concepts of marketing mix 4Ps have been applied widely into many organizations since
they were introduced. From the original 4Ps, there have been more “Ps” being researched and
utilizing. Nevertheless, the efficiencies that the original marketing mix 4Ps brings to

corporations are undeniable. Based on the data collected from different sources, the

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achievements, which Lotteria has gained by applying the marketing mix 4Ps, were presented.
Although the fast food industry in Vietnam is considered not as attractive as before, the growth
of the industry has still been quite large in recent years. The growth and development of
Lotteria especially in Vietnamese market have become the ideal example for any following
company in this field. Through this research, we have presented all elements of the marketing
mix strategy, clarified their roles in Lotteria’s success. However, there are still existences of
obstacles, which the company has to solve and overcome. Due to the limitation of capability
and time, we could not study some difficulties that Lotteria has had to face, as well as the
solution for it. Therefore, we highly recommend an in-depth interview method for future work
in a similar topic. The aim is to approach the issues from Lotteria’s insights so that the
problems can be totally considered.

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