Price process people

1 PRICE

With the existence of international brands such as KFC, JollieBee and the new
comer Burger King, itis undeniable that the fast-food is a fast booming market.
Hence in order to compete in such constantly changing and aggressive
marketplace, Lotteria has been using some specific pricing strategy to differentiate
itself from its competitors.
 
1. Current Price
With various products, ranging from main dish, side dish to deserts and snacks,
the current price for Lotteria is from 7,000 vnd up to 260,000 vnd, depending
on different products.
 
2. Product Mix Pricing Strategies

Product bundle pricing

The brand also uses product bundle pricing as a pricing strategies in order to
encourage the purchase amongst potential consumers. Lotteria offers many
combos, including a main dish(Chicken, rice or burger) with a side dish and a
beverage, for its customers who are highly price sensitive. For any combos,
Lotteria’s customers can save up to 12,000 VND respectively
. This strategy is commonly used by Lotteria, as well as its competitors in the fast-
food industry.
Product line pricing
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 ice-creams. 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 14,000VND to
22,000VND. For chicken fried, the prices vary from 99,000VND to
300,000VND.

4. Price-adjustment strategies

a.Discount Quantity Discount:

Lotteria can give 10 % discount for different product from online orders. Due to
the strategy “More for less”, the price should be a  tad lower than other competitors
in the market. Consequently, Lotteria can reach more customers who have busy

schedule with work and family, and want to grab convenient food.
This strategy helps encourage customers to buy more Lotteria’s products.

b. Segmented Pricing

Lotteria uses segmented pricing , in particular time pricing as its price-

adjustment strategies. For each week day, Lotteria will offer a discount for a
particular product. Each week day, the discounted product will be different
to the previous day.
For new flavors of burger’s bun, Lotteria can combine customer segmented pricing
and time pricing by offering a happy hour from 5PM to 8 PM on Wednesdays for
only students customers who have student ID. Wednesday is a peak time since it is
the sale-off day of a lot of cinemas which often are relatively close to Lotteria’s
store. Moreover, at the time, students from secondary to university usually have
fewer classes than normal. For this peak time, Lotteria should offer student
customers a combo for new bun burgers at 30% off price during the happy hour.
By this strategy, Lotteria can attract and encourage customers come as group to
enjoy the combo jumbo and share fun moments together. Lotteria can temporarily
gain sale and market share for this product.

PROCESS
-the process starts when customers visit the outlet
- It also involve if the customers ordering the food online

PROCESS DIGRAM

OLD PROCESS LAYOUT

RAW MATERIAL – COOK – ASSEMBLE – FINISHED GOOD –

DELIVERY – CUSTOMER PLACE ORDER.
NEW PROCESS LAYOUT

RAW MATERIAL – COOK – WIP –ASSEMBLE – DELIVERY -

CUSTOMER PLACE ORDER.

PEOPLE
Training staff: Employees play an important role in Lotteria. Therefore, the
training process is really strict. Highly-trained employees offer better services,
quality communication and more customer’s satisfaction. Customer usually
impress with the way’s lotteria’s employees. Each new product, the staff can
introduce and suggest it to consumer while they are ordering. That is also the
main objective that Lotteria set.- Lotteria is everywhere across the country from
the South to the North.