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Table of Contents
S.No. Particulars Page No.
1. Introduction 1
2. Answering to the questions on 2-3
Distribution channel
3. Answering to the questions on 4-6
Communication channel
4. Conclusion 7
5. Suggestions 8

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 Introduction
Lotte India Corporation Limited is a subsidiary of the South Korean
conglomerate Lotte Group. It was established in 2004 after Lotte acquired
Parrys Confectionery, an Indian confectionery company. Lotte India is
headquartered in Chennai, Tamil Nadu, and has three manufacturing plants
in Chennai, Rohtak, and Nellikuppam.

Lotte India is a leading player in the Indian confectionery market. It's best-
known product is Lotte Choco Pie, a cream-filled sponge cake with a
chocolate coating. Lotte Choco Pie enjoys a near-monopoly status in the
Indian pie category. Other popular Lotte India products include Coffy Bite,
Caramilk, Lacto King, and Lotte Eclairs.

Lotte India distributes its products through a network of over 2000

distributors and retailers. It also has a strong online presence, with its
products available on e-commerce platforms like Amazon and Flipkart.

In terms of communication channels, Lotte India uses a variety of channels

to reach its target audience. These include television advertising, print
advertising, social media, and public relations. Lotte India also sponsors a
number of events and initiatives to promote its products.Here are some of
the key distribution and communication channels used by Lotte India in the
Indian market:

Distribution:
Over 2000 distributors and retailers
Online channels (Amazon, Flipkart, etc.)

Communication:
Television advertising
Print advertising
Social media (Facebook, Twitter, Instagram)
Public relations
Sponsorship of events and initiatives

Lotte India is committed to providing high-quality confectionery products

to Indian consumers. It is also committed to building a strong brand
presence in the Indian market. The company's distribution and
communication channels are designed to help it achieve these goals.

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 Answering to the questions on Distribution channel

Mr. Venkat Reddy the proprietor of Shiva Sai Distributors in

Jagathgirgutta from Hyderabad is one of the leading distributors of
Lotte India. With Just an experience of 6 years, he is bagging a turnover
of around 1.8 crore annually, which is way more high than other
distributors as stated by MR. Srinivas (ASM).

1. How many Retails and wholesale do you cover?

• In this sector, a diverse range of outlets, categorized as A, B, C,
and D channels, are operational.
• He covers around 7500 retail outlets and 1500 wholesale outlets.
• ASM covers total 9000 direct outlets.

2. How many Distributors do you have?

• In Hyderabad city, Lotte is dealing with 14 distributors.
• Lotte has 3 Sales Officers and 30 sales workers under them to
serve in these outlets.

3. Where is your carrying and forwarding?

• The company has a capacity of approximately 100 tons per
month.
• Carrying and Forwarding business is done in Boduppal.
• Head Depot is Located in Medchal-malkajgiri District

4. What is the distribution Gap in your Market?

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• Market Overview in Hyderabad
➢ In Hyderabad, there are a total of 80000 retail plus
wholesale outlets from which 30000 belong to
confectionary market in which Lotte deals.
• Lotte covers 9000 retail outlets plus wholesale outlets directly.
• Therefore 21000 retail and wholesale outlets are left to cover
and hence this is the distribution gap of the lotte in Hyderabad
confectionary market.
• These account for a total of 37% of the market share.
• Challenge is Achieving this 37% market share. Lotte only
covers 9000 outlets directly which accounts for 11.25%.

5. What is the way forward for filling gaps?

• To capture the complete market share of confectionary market
outlets, Lotte tries to fill the distribution gap indirectly with the
help of whole sellers.
• The remaining 21000 outlets are covered indirectly through
whole sellers.
• The Company has hired some salesman on payroll and Target
Basis to cover all the untouched C and D class outlets at the
boundary distribution gap in product.
• Outsourcing: Consider outsourcing certain tasks or processes to
third-party providers, especially those that require specialized
skills or temporary support. Outsourcing can be a cost-effective
way to address labor shortages.
• Flexible Work Arrangements: Offer flexible work arrangements,
such as part-time, temporary, or remote work, to attract a wider
range of workers. This can help you tap into a broader talent
pool.

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 Answering to the questions on Communication
channel

Important Components of Communication channel which

Lotte India follows are:
➢ Television advertising
➢ Print advertising
➢ Social media (Facebook, Twitter, Instagram)
➢ Public relations
➢ Sponsorship of events and initiatives

1. What Below the line activity Do you do in your

market?
• Sampling: Lotte India has distributed free samples of its
Choco Pies at events such as the Hyderabad Book Fair and
the Hyderabad Marathon. This has helped to introduce the
product to new consumers and get them to try it.
• In-store promotions: Lotte India has run in-store
promotions at retailers such as Inorbit Mall and The Forum
Vijayawada. These promotions have included discounts,
coupons, and giveaways. This has helped to drive sales
and boost brand awareness.
• Sponsorships: Lotte India has sponsored the Hyderabad
Cricket Association and the Hyderabad Hockey
Association. This has helped to associate the Lotte brand
with sports and fitness.
• Public relations: Lotte India has worked with public
relations agencies to generate positive media coverage for
its products and brand. This has included press releases,
event coverage, and social media mentions. This has
helped to build brand awareness and credibility.
• Content marketing: Lotte India has created and
distributed content that is relevant to its target audience in

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 Hyderabad. This content has included blog posts,
infographics, and videos in Telugu language. This has
helped to educate consumers about Lotte products and
build brand trust.
• Providing Additional Margin: For example, they Give 2
Pieces of Lotto Choco Pie with the big Pack of 12.

2. Are they fulfilling sales objectives?

• Yes, they are fulfilling their sales objective. They achieve their
monthly target within 25 days.
• These Below the line activities helps brand in following ways:
➢ Increase brand awareness
➢ Generate leads
➢ Drive sales
➢ Improve customer loyalty
➢ Build relationships with key stakeholders

3. What challenges you are facing in the execution of

below-the-line activities?
• Here are some of the challenges faced by brands in below-the-
line activities:
➢ Cost: Below-the-line activities can be more expensive than
traditional advertising methods, such as television and print
advertising. This is because they often involve more
personalized and interactive experiences.
➢ Complexity: Below-the-line activities can be more complex to
plan and execute than traditional advertising methods. This is
because they often involve multiple channels and touchpoints.

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➢ Lack of control: Brands have less control over the message that
is communicated through below-the-line activities. This is
because these activities often involve word-of-mouth marketing
and other forms of organic communication.
• Challenges faced by Lotte in executing BTL activities in
Hyderabad Market:
➢ High Dealing Costs problem: Lotte Distributers face problem
in dealing costs. Retailers demand more money than what is
offered by Lotte for displaying the products and company
banners at their stores. This disrupts the BTL strategy of the
company.

Lotte Products

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 Conclusion
Lotte India has been very successful in the Indian market. The
company has been able to achieve this success through several
factors, including:
➢ High-quality products
➢ Innovative marketing
➢ Strong distribution network
➢ Good corporate image
Although Lotte is facing problems in Below the line activities,
they are trying their best to promote and advertise there products
with the help of posters, banners and prints with the help of their
partner retail and whole sale outlets.
As a result of these factors, Lotte India has become a major player
in the Indian confectionery market. The company's products are
enjoyed by millions of consumers across the country.
We would like to praise Lotte India for its success in the Indian
market. The company has shown that it is a force to be reckoned
with in the confectionery industry. We are confident that Lotte
India will continue to grow and succeed in the years to come.

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 Suggestion

Distribution Channel Suggestion:

They should increase the number of distributors and manpower to
reduce the distribution gap and convert indirect sales to direct sales.

Communication Channel Suggestions:

• Personalize their communication: Lotte should personalize
their communication to their target audience. This could involve
using data to segment their audience and deliver targeted
messages.
• Measure the effectiveness of their communication: Lotte
should measure the effectiveness of their communication so that
they can see what is working and what is not. This will help
them to improve their campaigns over time.
• Use technology to automate their communication: Lotte can
use technology to automate their communication. This could
include using email marketing software, social media
management tools, and customer relationship management
(CRM) software.

By following these suggestions, Lotte can make their distribution and

communication channel more efficient and productive. This will help
them to reach their target audience, increase sales, and build brand
awareness.