South Korea대한민국

MKT 480-002Craig Bowman

Michael HowardKerry Yamauchi

Cultural Overview

● High level of national pride● Cultural practices rooted in Confucianism● High value placed on family● Tense relations with North Korea● Increasingly Westernized culture

Economic Overview

● Per capita GDP: $33,200● Higher than average time spent at work● Largest retailers are e-commerce and

convenience stores● Extensive transportation infrastructure● Volatile government policies● Member of several free trade areas

Competitive Analysis

● Fruit juices already widely available● Consumers want convenience and versatility● Fresh delivery will be difficult● Fast growing juice consumption in South

Korea

Major Competitors

● Dellos, Minute Maid○ From frozen concentrate○ Simple flavors○ Dellos is local to South Korea

● Powerbar Dr. You○ Odwalla appears more natural○ Dr. You is local to South Korea

Product Adaptations

● Additional flavors○ Shikhye (식혜)○ Melon○ Persimmon○ Ginger

● Packaging adaptation○ Mix of Korean and English○ Add metric measurements

● Size variety

Promotion

● Generate brand awareness● Emphasize health benefits● Advertise through Internet

○ 97% Internet penetration rate○ World leader in Internet connectivity

● Provide free samples in hypermarkets

SegmentationTarget segment: single people ages 30 to 50 with an interest in sports● Approximately 4

million consumers● High growth

potential

Marketing Objectives

● Generate brand awareness and stimulate demand

● Koreans have high uncertainty avoidance index - get them to try it

Distribution Channels

● Not enough geographic area to produce locally○ Import from United States

● Distribute through 7-Eleven and other convenience stores○ Use some hypermarkets

● Distribute in all major cities○ Small area and well-○ developed infrastructure

Resource Requirements

● 15 to 20 employees to manage distribution● 4.5 million bottles of juice in sales projected● Plan only to break even in year 1● Free trade area reduces import cost● Refrigerated shipping- expensive

Recommendations

● Export!● Evaluate success and adapt strategy for four

years