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

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

3. 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

4. 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”

5. What is Lotte Department Store? Image Survey Korean people Expensive/ for the higher class Modern interior Many products Huge Crowded Easy to find

6. 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

7. Competition in the Netherlands Hema V&D Metz&Co (Europe) ≈ to Lotte Department Store: Shoppingmalls with different stores ( De Barones; 33.000 m2) Bijenkorf

8. 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

9. 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

10. 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

11. Competition in the Netherlands Hema V&D Metz&Co ≈ to Lotte Department Store: Shoppingmalls with different stores ( De Barones; 33.000 m2) Bijenkorf

12. 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

13. 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

14. 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

15. 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)

16. 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

17. 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)

18. 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

19. Competition in Germany Paunsdorf Center Ruhrpark Shopping Center Sevens (Saturn) CentrO (70.000 sqm)

20. Competition in Germany Paunsdorf Center Ruhrpark Shopping Center Sevens CentrO (70.000 sqm)

21. Consumer behavior in Germany Men/ women Compare different stores when expensive Long distances (up to 200km) Shoppingstreets Social levels Brand value (youngsters)

22. “Customers always come first” “Customers are the Master of Our Company” “You are our foremost priority” “More Than Life” “Always With You” CONSUMERS!

23. 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

24. 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

25. 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

26. 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

27. 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!

28. 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!

29. 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!

30. Marketing strategy Babbelbox ! Talkwall

31. Thank you very much! Questions & discussion