TEST case analysis

serve affordable gourmet lasagna what marketing strategy should be used to increase brand awareness? => expansion HOL attributed its growth to unique menu, product quality, customer service and franchising activity target casual dining segment - family with young kids who belonged to the middle and higher class, who liked to go out to eat - families with young kids who belongs to lower classes, go out for special occasions like birthdays and anniversary party. HOL marketing strategy - FOOD, SERVICE, AMBIANCE - best tasting lasagna at economical price, made with fresh, premium ingredients - staff recognizes loyal customers and remember their choice of food; offer free parking - comfortable dining area marketing mix product: variety of lasagna (beef - 80%, truffle mushroom, chicken, seafood); soups, salad, pasta price: mid-pricing strategy place: 4 company-owned restaurant and 3 franchises promotion: use Facebook and delivery partners to increase brand awareness; onsite advertising: Lasagna of the Day, Valentine's Day Special, Christmas with HOL, Weekend Special Menu... one-third of population are Millennials => biggest spender on dining out in restaurants middle income household spend about 20% income in outside food busy lifestyle, traffic condition, increasing transportation cost => motivate young people dine out, take away or home delivery food Filipino spend more than 3 hours on social media (facebook), 10 million mostly young people use Instagram growth strategy market penetration: How can they use differentiate strategy to increase the brand awareness? product, service, channel, people or image product differentiation: low carb lasagna => for people who enjoy the flavor of lasagna but don't want to consume to much carb lasagna pizza => get customers excited to come to the restaurant, young people like to share photos on social media => increase brand awareness How can promotion mix applied to maximize customers' engagement? advertising, personal sell, public relations, digital and direct marketing, sales promotion advertising on television
digital & direct marketing: take advantage of social media and word-of-mouth marketing; using "big- seed" marketing concept => get customers involved with the brand What market segmentation strategy should be focused to benefit House of Lasagna's future grow?
Issues : 1. What market segmentation strategy should be focused to benefit HoL's future grow? 2. How can HOL use differentiate strategy to increase the brand awareness? 3. How can social media marketing be applied to maximize customers' engagement? Analysis : Market segmentation means dividing the marketing into smaller groups that have similar characteristics, so the company can create a marketing plan to best meet the demand and expectation of customers in that group. There are four strategies, including geographic, demographic, psychographic, and behavioral segmentation. First, geographic segmentation is based on locations and regions, like cities and countries... As most of HOL branches are opened in Philippines, people tend to have similar needs and interest. However, this strategy works when HOL looks for opportunities in the rural areas in Philippines or other countries in the world. Secondly, demographic segmentation creates groups based on factors like age, occupation, income, religion, and more . HOL can segment market by generation: Millennials and others. Most millennials like to experience new things, try new flavors. Moreover, Millennials is those making up of almost 35% of population in Phillipines and considered "the biggest spenders in the food service industry." Psychographic segmentation targets social class, lifestyle and personal value . Most customers coming to HOL have one thing in similar, which is enjoying Italian cuisine. In this case, income can be used to segment the market into low, middle, and high earnings groups. Middle and high class customers should be focused as they spend more than 20 percent income on food. Lastly, behavioral segmentation focuses on how customers make decisions . During holiday or special occasion, a lot of people go to restaurants to celebrate, not only to enjoy delicious food but also enjoy the great ambiance. Therefore, HOL should guarantee the best experience customers have to convince them come back next time. Differentiate strategy includes recognizing the competitive advantages, using them to build a strong brand image in customer's mind and increase brand awareness. There are 5 ways that a company can stand out from other competitors. The first one is by product differentiation . HOL can offer the low carb or no carb lasagna to customers who enjoy good food but follow a diet or can't consume lots of carb. Secondly, a company can be distinguishable by the service . Service advantages that a restaurant can create are excellent dining experience for customers and a delivery system that is not only fast but also accurate Channel is also considered as a way to differentiate. More branches will be opened in the area with lots of commercial building or near college, university. Competitive advantage can also be gain by image differentiation. A brand image is reflected in the name, logo, motto...HOL's logo with the symbol of a window creates a warm, welcoming feeling just like a family. To better approach Millennials and increase brand awareness, HOL should follow a more modern and youthful image. The last strategy is people differentiation. It is about the way a company trains their employees and values them. Direct and digital marketing is a tool of promotion mix that a company can use to connect and engage with people. There are two main types of direct and digital marketing including traditional direct forms (catalogue, direct mail, telemarketing...), and digital and social media marketing ( social media, websites, emails...). Within many tools of digital marketing, social media is considered one of the most effective ways to interact and build relationship with customers. In this case, HOL needs to focus on social media, espescially Facebook because "the Phillippines was the world leader in social media usage" with "about three hours and 57 minutes per day on social media, mainly on Facebook." HOL can utilize the "big-seed" marketing concept on social media, which means geting people to talk and share a content, by posts like 100-layer lasagna eating challenge in 10 minutes or a video about how to make lasagna-inspired desserts. Recommendations : 1. Demographic segmentation and psychographic segmentation, especially Millinniels, middle class and high class customers, should be focused to benefit future grow. 2. Use product and image strategy as main tools to differentiate from other competitors. A good brand image creates a strong bond with buyers and form loyalty. 3. Use social media sites to better interact, engage with targeted customers. By social media, HOL could also "listen" to customers' demands. By viral video or post on Facebook, HOL can promote the brand among thousands of people within a short period of time.
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