WELCOME Subject: Global competitiveness of Lotte Department Store and its global strategy By: Maria van Hooijdonk The Netherlands 2011/11/30

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 Companies Vision: 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 Companies Vision: “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; m2) Bijenkorf

Competition in the Netherlands Hema V&D Metz&Co ≈ to Lotte Department Store: Shoppingmalls with different stores ( De Barones; 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; m2) Bijenkorf De Bijenkorf

Competition in the Netherlands Hema V&D Metz&Co ≈ to Lotte Department Store: Shoppingmalls with different stores ( De Barones; m2) Bijenkorf De Bijenkorf

Competition in the Netherlands Hema V&D Metz&Co ≈ to Lotte Department Store: Shoppingmalls with different stores ( De Barones; 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, m²)

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 ( sqm)

Competition in Germany Paunsdorf Center Ruhrpark Shopping Center Sevens CentrO ( 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: Dutyfreeshop 2. Lotte is very transparant 3. Bonding 4. 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: Dutyfreeshop 2. Lotte is very transparant 3. Bonding 4. Like Batavia in Holland YESNO 1. With internetshoppinga. With the name-image combination 2. Keep up the transparancyb. In the centrum 3. Lotte Cardc. Too many ‘discount’cards 4. Rich people/ exclusived. Difference per country 4. Change image a.Lotte is a Dutch girl b.Cosy shoppingstreets c.Not for too many different things like boulangeries d. Consumer behavior

Would it work? 1. Lotte: Dutyfreeshop 2. Lotte is very transparant 3. Bonding 4. Like Batavia in Holland YESNO 1. With internetshoppinga. With the name-image combination 2. Keep up the transparancyb. In the centrum 3. Lotte Cardc. Too many ‘discount’cards 4. Rich people/ exclusived. Difference per country 4. Change image a.Lotte is a Dutch girl b.Cosy shoppingstreets c.Not for too many different things like boulangeries d. Consumer behavior

Would it work in Europe? 1. Lotte: Dutyfreeshop 2. Lotte is very transparant 3. Bonding 4. Like Batavia in Holland YESNO 1. With internetshoppinga. With the name-image combination 2. Keep up the transparancyb. In the centrum 3. Lotte Cardc. Too many ‘discount’cards 4. Rich people/ exclusived. Difference per country 4. Change image a.Lotte is a Dutch girl b.Cosy shoppingstreets c.Not for too many different things like boulangeries d. 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!

Marketingstrategy How to create the image and the conversation? Listen to consumers and react immediatly on them; 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!

Marketingstrategy How to create the image and the conversation? Listen to consumers and react immediatly on them; 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