Lotte project report

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(NAAC Accreditation 'A' Grade Institute)
Project Report on:
LOTTE INDIA
Under the guidance of: Submitted by:
Prof. Sanjeev Tandon Umang Maheshwari
PGDM 1st year (2018-20)
Roll no. 58

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Acknowledgement
The Minor Project report on company LOTTE INDIA has been
given to me as part of the curriculum in 2 years of PGDM. I have
tried my best to present this information as clearly as possible using
basic terms that I hope will be comprehended by the wide spectrum
for students. I have completed this study under the able guidance and
supervision of PROF. SANJEEV TANDON. I will be failed in my
duty if I do not acknowledge the esteemed scholarly guidance,
assistance and knowledge; I have received from them towards fruitful
and timely completion of this work. I am also thankful to Director
Management Sir, My Coordinator and other faculty members who
gave me this opportunity to do this.

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Preface
A professional course in PGDM is incomplete unless the theoretical
knowledge acquired in the class room is backed up by practical
exposure, as theories alone do not give perfection to any discipline.
The gap between theory and practiced is bridged by project report,
which has been an integral part of the syllabus.
This present Project report is an image of what I have done and
observed. I was assigned a project on LOTTE INDIA.
I have tried my level best to be as a systematic as possible and to
avoid any sort of biases.

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Student Declaration
I, Umang Maheshwari student of PGDM at Institute of Technology
and Science, Ghaziabad hereby declare that the Project work entitled
on Lotte India is compiled and submitted under the guidance of Dr.
Sanjeev Tandon Sir. This is my original work. Whatever information
furnished in this project report is true to the best of my knowledge.
Name: Umang Maheshwari
PGDM I year
Roll No. - 58

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Lotte Corporation
Company Profile
Company Type Public
Industry Conglomerate
Founded March 24, 1967
Founder Shin Kyuk-ho
Headquarter Songpa District, Seoul, South
Korea

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History of Lotte Corporation
Lotte Corporation is a Korean multinational conglomerate. Lotte
began its history on June 28, 1948 in Tokyo by Korean businessman
Shin Kyuk ho. Shin expanded Lotte to his home country, South Korea
with the establishment of Lotte Confectionery in Seoul on April 3,
1967. Lotte eventually grew to become South Korea's fifth largest
business conglomerate.
After two years of establishment Shin graduated from Waseda
Jitsugyo High School. Originally called Lotte Co., Ltd, the company
has grown from selling chewing gum to children in post-war Japan to
becoming a major multinational corporation.

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Name - Lotte
The source of the company's name is neither Korean nor Japanese,
but German. Shigemitsu was impressed with Johann Wolfgang von
Goethe's The Sorrows of Young Werther (1774) and named his newly
founded company Lotte after the character Charlotte in the novel
("Charlotte" is also the name of a new brand of deluxe movie
theatres run by Lotte). Lotte's current marketing slogan in Japan is
"The sweetheart of your mouth, Lotte" Okuchi no koibito, Rotte).

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Organisation Structure
Chairman Mr. Mang Ko Noh
MD Mr. Milan Wahi
Vice President Mr. Lee
Director Mr. Park
Whole time director Mr. Moo Sun Song
Head - Marketing & Strategic
planning
Mr. Vankatesh Parthasarathy
Head - Export & Import Mr. Sankararaman
Head – MFG Mr. Pushparajan

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Major Competitors
Below are the 5 main Lotte India Corporation Ltd competitors:
1. Lotus Chocolate
Lotus Chocolate Company (LCCL) was
promoted in 1988 by T Sarada and
Vijayaraghavan Nambiar. At present, it
is a subsidiary of Sunshine Allied
Investments, Singapore.
2. Nestle
Nestle was formed in 1905 by the
merger of the Anglo-Swiss Milk
Company, established in 1866 by
brothers George and Charles Page, and
Farine Lactee Henri Nestle, founded in
1866 by Henri Nestle. Mr. Suresh
Narayanan is Chairman and MD of
Nestle.

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3. Kraft Foods
Kraft Foods Inc. was an American
multinational confectionery, food
and beverage conglomerate, now
called Mondelez International.
Irene Rosenfeld is the CEO of this company.
4. Parle
Parle Products company was founded in
1929 in British India by the Chauhan
family of Vile Parle, Mumbai. Parle
began manufacturing biscuits in 1939. In
1947, when India became independent, the company launched an ad
campaign, showcasing its Gluco biscuits as an Indian alternative to
the British biscuits.
5. ITC
ITC Limited is an Indian company[6]
headquartered in Kolkata, West Bengal.
Established in 1910 as the 'Imperial Tobacco
Company of India Limited', the company was
renamed as the 'India Tobacco Company
Limited' in 1970 and later to 'I.T.C. Limited'
in 1974. The dots in the name were removed in September 2001 for
the company to be renamed as 'ITC Limited'. YC Deveshwar is
Chairman of ITC.

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News Analysis
 Lotte has partnered with DKSH, a market expansion service
provider, to expand it's confectionery product's footprint in
Singapore.
 Modi's Make in India got $6 billion cheque from Lotte in Nov
2017.
 Lotte confectionery will invest 22.3bn won (around $19.98m) in
building a new manufacturing facility in Russia.

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Brief outline of industry
Confectionery Industry, a manufacturing sector made up of
Companies primarily involved in processing candies, chocolate and
cocoa products and chewing gum. Confectionery manufacturing
started to emerge as an important industry in the late 1800s. One of
the earliest commercial operations, McCormick's Ltd, was
established in London, Ont, in 1857. Robertson Brothers Ltd was in
the candy business in Toronto by 1864, and Ganong Brothers opened
in St Stephen, NB, in 1873. In 1873 Moirs Ltd , originally a bakery,
commenced candy production in Halifax, NS, Robert Watson Co
started in Toronto in 1874, and by 1879 Viau Ltee was in production
in Montreal.
In Toronto, Patterson Candy Co was established in 1888, and the
Cowan Co in 1890. Confectionery production greatly increased in
Canada in the early 1900s with the establishment of several major
producers, including William Neilson Ltd in Toronto in 1908. Willard's
Chocolates Ltd, Toronto, 1914, and Fry-Cadbury Ltd, Montreal, 1920.
Walter M. Lowney Co. of Montreal and Walter Baker Co of Canada,
Toronto, also became established during this period. In these
formative years the Industry was concentrated on Eastern Canada, a
situation that prevails today, although in Western Canada a number

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of smaller manufacturers emerged during this period and new
companies are still appearing.
During the past 2 decades, a considerable amount of plant
consolidation has taken place. In 1961 the industry had 194 plants in
production. By the end of the century Statistics Canada reported 94
plants in production. As is the case in most other food sectors, the
major cause of the reduction has been the steady phasing out of
smaller, obsolete production facilities and their replacement with
fewer, larger, highly efficient operations.
The confectionery industry is unique among segments of the
Canadian FOOD AND BEVERAGE manufacturing system in that it is
dependent on foreign supply for 2 of it's primary ingredients: sugar
and cocoa. Unfortunately, these commodities are subject to rapidly
changing prices in spite of accords such as the International Sugar
Agreement. This factor, in turn, can seriously affect the industry's
sales volumes and profit margin.

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PESTEL ANALYSIS OF LOTTE INDIA
Let us examine the macro environment of this industry using PESTEL Analysis.
 Political Factors that affects the launch of the product are health and
safety laws, employment laws of different countries.
 Economic factors that will affect it are interest and inflation rates as it
will affect production, world economic growth and current recession will
also affect it. There will be also some environmental factors that will
affect like energy and environment and recycling of plastic and other
products like chocolate can be packed in completely recyclable packet.
 Socio-Cultural Factors that may affect include life style of people, health
and fitness awareness and perception, different cultures, spending
patterns and aging populations.
 Technological Factors that will affect the brand are the internet as the
product will be promoted using web marketing. The robotic
manufacturing will also help in quick production.
 Legal Factors will also influence like perception of people and what
people think about the product.

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COMPETITIVE ENVIRONMENT OF LOTTE INDIA
Competitors list
 ADF Foods Ltd.
 Agro Dutch Industries Ltd.
 Amrit Corp. Ltd.
 Anjani Foods Ltd.
 ANS Industries Ltd.
 Apex Frozen Foods Ltd.
 Apis India Ltd.
 Bambino Agro Industries Ltd.
 Belapur Industries Ltd.
 Britannia Industries Ltd.
 Chordia Food Products Ltd.
 Chothani Ltd.
 Dangee Dums Ltd.
 DFM Foods Ltd.
 Energy Products (India) Ltd.
 Euro India Fresh Foods Ltd.
 Farmax India Ltd.
 Flex Foods Ltd.
 Foods & Inns Ltd.
 Future Consumer Ltd.
 GlaxoSmithKline Consumer Healthcare Ltd.
 Godrej Agrovet Ltd.
 Goldcoin Health Foods Ltd.

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 Hatsun Agro Products Ltd.
 Heritage Foods Ltd.
 Herman Milkfoods Ltd.
 Himalaya Food International Ltd.
 Himalchuli Foods Products Ltd.
 Hind Industries Ltd.
 Hindustan Foods Ltd.
 ICE Make Refrigeration Ltd.
 Indo Asian Foods and Commodities Ltd.
 Indo Biotech Foods Ltd.
 Jhandewalas Foods Ltd.
 Jiya Eco Products Ltd.
 Jubilant Foodworks Ltd.
 Kengold(India) Ltd.
 KMG Milk Foods Ltd.
 Kore Foods Ltd.
 Kothari Fermentation & Biochem Ltd.
 Kovilpatti Lakshmi Roller Flour Mills Ltd.
 Kutch salt & Allied Industries Ltd.
 Kwality Ltd.
 Lotus Chocolate Company Ltd.
 Mahaan Foods Ltd.
 Megastar Foods Ltd.
 Milk Specialities Ltd.
 Milkfood Ltd.
 Modern Dairies Ltd.

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 Moneshi Agro Industries Ltd.
 MSR India Ltd.
 Nakoda Group of Industries Ltd.
 Neopolitan Pizza Ltd.
 Nestle India Ltd.
 NHC Foods Ltd.
 Nijjer Agro Foods Ltd.
 Nimbus Foods Industries Ltd.
 Oceanic Foods Ltd.
 Ovobel Foods Ltd.
 Parag Milk Foods Ltd.
 PC Products Ltd.
 Prabhat Dairy Ltd.
 Prataap Snacks Ltd.
 Ravalgaon Sugar Farm Ltd.
 RCL Foods Ltd.
 REI Agro Ltd.
 Sampre Nutrition Ltd.
 Saptarishi Agro Industries Ltd.
 Sarveshwar Foods Ltd.
 Sayaji Industries Ltd.
 SC Agrotech Ltd.
 Shah Foods Ltd.
 Sheetal Cool Products Ltd.
 Shivamshree Businesses Ltd.
 Sita Shree Food Products Ltd.

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 SKM Egg Products Export (India) Ltd.
 Spectrum Foods Ltd.
 Sugam Agro-Tech Ltd.
 Sukhjit Starch & Chemical Ltd.
 Sunil Agro Foods Ltd.
 Super Bakers (India) Ltd.
 SYP Agro Foods Ltd.
 Tanvi Foods (India) Ltd.
 Tarai Foods Ltd.
 Tasty Bite Eatables Ltd.
 Tasty Dairy Specialities Ltd.
 Tirupati Starch & Chemicals Ltd.
 Transglobe Foods Ltd.
 Tricom Fruit Products Ltd.
 Umang Dairies Ltd.
 Uniroyal Marine Export Ltd.
 Universal Starch-Chem Allied Ltd.
 Usher Agro Ltd.
 Vadilal Dairy International Ltd.
 Vadilal Enterprises Ltd.
 Vadilal Industries Ltd.
 Vikas Proppant & Granite Ltd.

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SWOT ANALYSIS OF LOTTE INDIA
Strengths
 Good brand position and quality which is consumer favorite.
 Strong partnership with retailers.
 Stores are available in almost every market.
 The shareholders have limited responsibility with regards to the debts or
trails against the corporation.
 Corporations can obtain more capital through the sale of their actions.
 A corporation can deduct the cost of benefits (benefits package) that
offers to its managers and employees.
Weaknesses
 No varieties other than chocolate candy like waffer, milk drinks has been
introduced yet.
 Packing is not attractive.
 The process of integration requires more time and money to compare to
models of organization.
 The corporations are supervised and subject to the rules of entities,
federal, state and some local and therefore might have to comply with
many more requirements and administrative documents to demonstrate
compliance.

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Opportunities
1) Increase personal relations in village.
2) As the harbor is near, can export the products by increase quality and
range to the small continue.
3) Increase product range as-
Toffee
Bars
Threats
1) Highly qualified employees in big brand.
2) Huge investment on advertisement by other brands.

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CRITICAL SUCCESS FACTORS
 Less penetration in the market.
 Tradition for gifting sweet is increasing.
 Shifting consumer preference from Mithai to sweet.
 Increasing demand for sugar free and diet chocolate.
 Eating at the time of hunger.
 Increase in the disposal income of urban people.
 Income capacity of rural people is also increasing.
 Communication (infrastructure) is also playing a key role.

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4 P's OF LOTTE INDIA
Marketing Mix of Lotte Group analyses the brand/company which covers 4Ps
(Product, Price, Place, Promotion) and explains the Lotte Group marketing
strategy.
Product:
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.
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
Price:
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.

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Place:
Lotte shopping has Lotte Department Store, Lotte Mart, Lotte Super, Lotte
Cinema and LOHB’s. Lotte department stores are present in Vietnam, China,
Russia and India. 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.
Promotion:
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.

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4 C's OF LOTTE INDIA
Customer value:
In a market ruled by Lotte Confectionery, it was important to stand out. Lotte
realised that the Indian customer has a fancy for imported chocolates. It
tapped the Indian market with it's international chocolate snack that stood out
from the other plain milk chocolates and wafer chocolates of the economical
price.
Customer Costs:
Lotte products are placed at an affordable Rs.15 and Rs.30, which in today's
world is the price of an average chocolate bar in India.
Convenience:
These products have been strategically placed throughout the country so that
it is available everywhere, from malls to the local baniya stores.
Communication:
These products have successfully managed to communicate to the customer
about how it is different from other chocolates through it's visuals and
advertisements.

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4 A's OF LOTTE INDIA
Awareness:
Lotte Choco pie has managed to create awareness in the minds of the Indian
consumer due to it's great product positioning and brilliant advertising
campaigns. Also, the product delivers on taste.
Availability:
Lotte has ensured that it seeps in every household by ensuring a continuous
supply of its products through all the retail stores - big or small - that the
customers have easy access to.
Affordability:
The price of Rs. 15, Rs.30 and all makes Choco pie affordable to all sections of
the society. All the competitors have placed their chocolates within this price
range.
Acceptability:
Lotte has come out with a vegetarian food just to cater to the demands of the
Indian consumer base. This has widely been accepted throughout India.

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Objective of the study
Every organization has to achieve its organization goals. For this it is very
essential for an organization to know about the view of consumers and their
competitive products. This survey research may be also aimed as to estimate
potential buyer for the product. The objective of the study is as under:
1. To know the awareness & perception of customers regarding Lotte India.
2. To determine the customers satisfaction.
3. To determine the factors influencing the choice of customers.
Scope of the study
 Company will come to know what attracts Customers.
 Company will come to know that which criteria customers look for
before buying these products.
 Company will also come to know the future changes which will be
require satisfying customer needs and wants.

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Research Methodology
 Sample size
 Sample size is 57 which cover the population of Ghaziabad.
 Data source
 Research included only Primary data. Primary data is the first hand data,
which are selected a fresh and thus happen to be original in character.
Primary Data was crucial to know various customers and past consumer
views about Lotte India and to know the awareness of this brand in
regards to other brands.
 Data collection
 Data has been collected through survey questionnaire
 Analysis of data
 After the data has been collected, it was tabulated and findings of the
project were presented followed by analysis and interpretation to reach
certain conclusions.

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Analysis & Interpretation of Data
Analysis: Around 72% of population knows about Lotte products.
Analysis: 74%, a huge no. of population uses Lotte products.

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Analysis: Confectionary & Bakery products are in demand and
people like it. Health product’s sale is not much higher.
Analysis: Most of the prefer Lotte choco pie or Ice cream.

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Analysis: People using Lotte products are enough satisfied.
Analysis: Mostly users would like to recommend these products to
others.

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Analysis: Mostly buyers buy these products because of good taste
and quality.
Analysis: Rating that mostly users want to give is 4, which means the
overall performance of company is good.

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Analysis: Television ads and reference of friends and relative is main
force that makes people aware of this brand and product.
Any suggestion for Lotte products or company
 Product range should be more
 Add some more bakery products like cake
 Have more chocolate than bread
 Bring more variety
 More advertising
 They should increase their product line
 Please enhance your brand awareness
 Some more product should be introduce in Indian market
 Quality can be better
 Maintain quality
 Lower price
 Good taste
 Improve the product line
Analysis: Most of the customers want company to increase its
advertising as well as want new products.

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Conclusion & Findings
 Mostly people know about Lotte products and also use these
products.
 People like these products and overall rating is also impressive.
 Most selling product of Lotte is Lotte Choco pie.
 People buy Lotte products because of its good taste and quality.
Suggestion
 Company should do some promotional activities to make people
aware of its new as well as existing products.
 Company should launch some new products to reach more
market coverage.

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Annexure
Copy of Questionnaire

Lotte project report

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