New Tide of Retail Industry

Summary

June 6th, Lotte Shopping opened online supermarket. Customers can buy groceries everyday in http://www.lotteimall.com/ conveniently done with one click. This online shopping is give two advantages. One is a cheap price. Customers find discount goods easily, and they can save shopping cost like a gas fee for car and other transportations. Second advantage is saving time. Internet shopping is easy and simple. It doesn’t need time for moving, parking and finding.
Lotte has a distribution network across the whole country, so this new system is possible. It will offer free home-delivery services on all purchases, without having to spend a minimum, to households near a Lotte Super outlet. Free delivery will be provided even for the purchase of one bottle of water.
There are 89 Lotte super, and internet offer same products and price as the offline. This local online market is a unique position, and it creates synergy other major retail lines.

My opinion

Marketing is a creating value. I think the marketing strategy of Lotte Shopping creates value for customers. One is a convinience and the other is saving costomers’ time and cost. It is a kind of innovation.
This strategy is a good for long perspective. Nowadays, 40 to 50 housewives don’t know well about internet and internet shoping, but 20 to 30 housewives are different. They already know about internet, and enjoy internet shopping. Besides, the young doesn’t want to marry early, so they don’t have enough time to go shopping for groceries. Therefore, this strategy will be more popular in near future.
However, I worry about a cost structure. Surely, their cost will increase. In Korea, large discount stores are popular. Housewives want to buy in a discount price. If this strategy higher the cost, it would lower the number of customer. Especially, free delivery system is a big risk. However, if they can realize economies scale they can success.
I can’t be sure about this strategy. However, this kind of technological change will make many other kind of strategy continuously.

References;Author: By Yoo Soh-jung Title: Lotte internet mall to open supermarket, The Korea Herald. June 7, 2008

20300174 Nah Kilwoong, Entry - 14

Kia Lotze Innovation unveiled

Summary>
Kia Motors Corp. revealed the Lotze Innovation, the upgraded version of the mid-sized sedan Lotze. The Lotze Innovation is the first car from a local carmaker to be equipped with an ECO driving system that alerts the driver when the car is operating under the most efficient conditions in terms of fuel economy. Also, it is fitted with button ignition and smart key systems.
The car is equipped with a 2-liter engine that puts out 163 brake horsepower, the highest output among domestic models in the segment, or a 2.4-liter engine that has a maximum output of 179 brake horsepower. Both trim levels have a fuel economy of 11.5 kilometers per liter for vehicles fitted with automatic transmissions while the manual transmission version of the 2-liter trim can travel 12.8 kilometers on a liter of fuel.

Opinion>
Hyundai Motor Co. and Kia Motors Corp. put their products’ names in Best Bet of Car Book, leaving out their competitors. But, its proportion has gone down, from 46 percent in 2001 to 29.3 percent last year, although North America has maintained its position as the largest importer of Korean cars. The reason of decrease in sales is that Kia Motors Corp. don’t have any distinguishing mark. Toyota has JIT(Just In Time) system, Audi has sporty and luxury image, Benz has dignified image. What is the image of Kia? Another reason is that the shortage of advertising.
Recently, High gas prices created a demand for more fuel-efficient vehicles. Lotze Innovation equipped of the highest trim levels will meet the needs. Also, it will gain an image of eco-friendly car. But, Kia Motors Corp. is lacked of advertising. The company planed to make sporty car so, it advertise with sporty-image star. And, the company need to build brand recognition through various promotion

References;
Author: Choi He-suk
Title: Kia Lotze Innovation unveiled June 13, 2008
http://mail2.daum.net/hanmail/mail/ViewMail.daum?MSGID=0000000000005Yq&FOLDER=%ED%9C%B4%EC%A7%80%ED%86%B5&mpage=1&KEYTYPE=&KEYWORD=&_top_hm=w_read

20600613 13th entry

Land of Chance, Middle East

Summary

Yesterday government discussed to help Korean companies expand business in the Middle East. That is for raising money from increasing petrodollars. We have an experience on economic development, especially construction and resources development. We can offer and consult their companies. The government will also make an effort to improve the investment envrionment in Middle East contries. Additionally, Seoul has a plan to hold investment-relations conferences for Middle East countries and investors.

My oppinion

In summer 2005, I went Oman. Before I went there, I don’t know well about Middle East. I only knew about War in Gulf or conflictton for religion. However, I totally changed my ideas, after I had experienced. Oman ruled by a King, and he has strong sense of wise and justiceness, he always considered their people based on the Koran. Therefore Oman made a policy quickly, and they are good at using petrodollars. Captial of Oman is Muscat, the city was planned, so that has straight road, and well constructed infra structure. Moreover, they invest continually in resource development and sight seeing.
Nowadays, oil pirce is over than $ 120, and it has a critical threat for many companies. However few companies have an opportunity. Those are construction companies in Middle East, because petrodallars are increased by a high price. It will be invested in their infra structure. Middle East contries worry about oil exhaustion, so they prepare it using their petrodallars. Therefore their investment for future will not finish easily.
I think not only construction companies earn money in Middle East, but also heavy industry companies gather more revenue. During Agflation, Middle East contries want to grow their crop theirself. Dusan is ranked first place in making fresh water, and fresh water is necessary in Middle East for agriculture. Dosan get a lot of orders from Middle East and their stock price increase, too. The government should think widely, if so, Middle East will be more attractive.

References;Author: By Jin Hyun-joo Title: Korean firms set bigger sights on Middle East, The Korea Herald. June 6, 2008

20300174 Nah Kilwoong, Entry - 13

Hyundai Motor targets Russia's middle class

Summary>
Hyundai Motor Co. is looking to tap the growing middle class to consolidate its position in the Russian car market. Since first exporting to Russia in 1990, the company currently has the second largest market share among foreign carmakers in Russia after General Motors Corp.'s Chevrolet. Among all carmakers, Hyundai Motor holds the third largest market share and with more people joining the middle class, Hyundai cars are gaining more and more attention
Hyundai is still considered the cheaper brand but with the launch of vehicles like the Tucson in recent years, its brand image has been improving. Also, Genesis which is likely to go on sale here at the end of the year will be beneficial for the company's brand image in Russia. The company expects that it could use the car to build a luxury brand like Toyota's Lexus."
The planned plant in St. Petersburg will provide valuable benefits to the company. The plant will help raise sales by removing the 25 percent tariff placed on imported cars and providing a cheaper labor force for Hyundai. Once the plant is completed and production in Russia begins, the supply problem could be solved. Other foreign brands such as Ford and Toyota saw large increases in sales after the companies built plants in St. Petersburg.

Opinion> Russia’s rapid economic development has left the growth of middle class. To earn higher profits, Hyndai Motor Co. has to target the new class and change its cheap brand image. Star marketing will change the cheap image and imprint luxury car image in Russians’ mind. The company can be well-known through advertisement appearing a movie star or a singer or a famous people who have luxury image. Also, the company has to sponsor its cars to movie or drama for not-so-subliminal kind of advertising, product placement.
It is important to raise name recognition, but the most important thing is quality and services. Because it takes long time to improve quality, the company has to strive to provide customer the best service. Hyndai Motor Co. has to make competitive advantage to compete other car makers through the best service - fast delivery system, low repairing expenses, etc,

References;Author: Choi He-suk
Title: Hyundai Motor targets Russia's middle class June 7, 2008
http://mail2.daum.net/hanmail/mail/ViewMail.daum?MSGID=0000000000005YX&FOLDER=%ED%9C%B4%EC%A7%80%ED%86%B5&mpage=1&KEYTYPE=&KEYWORD=&_top_hm=w_read


20600613 12th entry

Most Job Hoppers Regret Move

Most Job Hoppers Regret Move

Summary

The survey shows that more than half of the respondents are not happy with their current jobs and are making at least some efforts to move to another company. Job hoppers usually regret about changing another job. Reasons for regretting job change are that they realized “Not much better than previous job”, “Actual firm not as good as its reputation, “New company did not keep its promise”.

Opinion

Changing the job can be a good opportunity for people who want to experience new challenges. When they are young trying to move other jobs, they might think that they are finding jobs fitting their aptitude. However, evaluations like these young people can be threats for them because changing from jobs to other jobs is not profit for their company. Moreover, if changing jobs became their habit or periodic processes, job hoppers can not work anywhere, eventually. To hold worker in own company, company has developed diverse programs that make worker feel happy when they work. For example, workers and programmers in Microsoft company can decorate their work space, and this effect brought both improvement of efficiency and workers’ satisfaction about their work. I think teamwork is the most important to make workers be one unit in the company. To develop teamwork, sports game is the option company can easily choose. For workers, there are many sports game worker like to play like soccer, basketball, badminton, table tennis, marathon, and so on. One important point is that company should satisfy every worker be happy through competition or cooperation in sports game. If workers can feel happiness through special program to promote teamwork, it results in improvements of working efficiency.

Reference
www.koreatimes.co.kr
By Michael HaStaff Reporter

20600517 Lee, yong jae -entry 13

Daewoo seeks to revive glory in Uzbekistan

Summay>
Daewoo International plans to supply auto parts to GM Uzbekistan, the car manufacturing company owned by the GM and the Uzbekistan government. In 2005, state-owned Uzavtoprom took over 100 per cent of shares from Daewoo Motors and in 2007 signed a joint venture agreement with GM. Daewoo International is also stepping up energy projects in Uzbekistan, which has substantial deposits of gas, oil, uranium and other resources. This year, Daewoo International plans to set up a company to explore gas in the northwest region in Uzbekistan for the next five years. With a population of 27 million, Uzbekistan is a market with huge potential for growth. The country's economy has expanded by an average of 7 percent over the past five years. The country also serves as the bridgehead for companies to enter Russia and Central Asian nations.

Opinion>
Uzbekistan is placed the center of Central Asia- Turkmenistan, Kyrgyzstan, Tajikistan, Afghanistan and Kazakhstan and it has rich resources. So, they can be the base of industries of Central Asia.
To thrive in Uzbekistan, Daewoo International has to Uzbekistanize. First, it has to master all aspects of Islam- praying five times a day for Mecca, Ramadan and relieving the poor with a quarter of their income.
Second, it needs to contribute to society. Uzbekistan, a developing country will be satisfied with setting up its plant in the town, but donation, founding public institutions-school, nursery school-will raise labor productivity and customer loyalty.
Third, use Han-liu(Korean wave). In Uzbekistan, Korean drama hits. Daewoo International need to ride the wave as well, making inroads into markets. Using Korean drama, actors, Mi-Su-Da(Talk show of KBS) and singers, etc.

References;
Author: Jin Hyun-joo
Title: Daewoo seeks to revive glory in Uzbekistan May 27. 2008
http://mail2.daum.net/hanmail/mail/ViewMail.daum?MSGID=0000000000005Y8&FOLDER=%25EB%25B0%259B%25EC%259D%2580%25ED%258E%25B8%25EC%25A7%2580%25ED%2595%25A8&mpage=1&TYPE=&KEYTYPE=&KEYWORD=&_top_hm=li_read_normal&status=N&fromname=webmaster%40heraldm.com&star=N

20600613 10th entry

Airline Companies’ Threat and Chance

Summary

Local airline companies deal with high oil price. Korean Airline and Asiana Airlinere are presentative in Korea, and they reduce their routes. Moreover they sirously consider many factors about flights like wind and course. Income also changed last year, first quater Korean Air’s net income was 130 billions won, but this year first quarter the company lost 325.5billion won. Analysts predict it negatively. Jet oil price is aready 50% percent up due to soaring petroleum prices, creating a bigger-than-expected burden on the industry. Experts also pointed out exchange rate. Korean won created more of a cost burden on air carriers this year. Hence, airline companies are considering raising domestic fares as well.

My opinion

Airline companies should be defferentiated. I think they need something new way. Price raising is not a solution. World econmy is in downterm. Especially US are suffered by this recession. US made an effort for this recession but it’s useless. It is similar with Great Depression. During Great Depression, US government does many things, but it made an opposite effect. It is related with oil price and agflation. Agflation is a complex word of agriculture and inflation. Consumption is reducing by these reasons. If airline companies increase their price, their revenue would be reduced. Their new solution should catch two points, the one is no change in consumers, and the other is reducing cost.
We learn about factors of price. Among them, cost is not changeable. It almost fixed by environment like oil price and aircraft price. Addmission fee is changeable, but it’s not easy. Especially their labors fee is very hard to change, because their labors are well educated and not easy to reduce their number.
To conclude, they should improve their market value or brand value. Their pricing strategy is a basic. Most of airline companies in the world are spending difficult time. During this recession, price increasing is reasonable. However, if they find new way to improving their value, it will be a chance.

References;Author: By Ko Kyoung-tae Title: Oil prices hit air carriers The Korea Herald. May 28, 2008

20300174 Nah Kilwoong, Entry - 12

`Hanji' Wear Fashion Show Hits Stage

`Hanji' Wear Fashion Show Hits Stage

Summary

Hanbok, Korean traditional clothes, represents what Koreans wear. In contrast to, Yukata, Japanese traditional clothes, Hanbok remained trapped in the past, and people do not wear it as their daily clothes. To modernize the traditional costume, Chae Keum-seok transformed Hanbok by using Hanji fabrics which are used to make underwear, as it is durable, easy to dye, and prevents bacteria buildup.

Opinion

My friend in Handong University is wearing transformed Hanbok. That Hanbok looks good, convenient, and it has simple design. She has no special reason to wear, but she just wear Hanbok as daily clothes because transformed Hanbok is practical for her to work, and sources of Hanbok has important points; durable, easy to wear, healthy for her. I think this trend should come from the young generation who leads fashion markets. One change of her wearing can attract foreign students in school to have curiosity about Korean clothes, and Korean culture. In world fashion market, products including characteristics; unique, creative, practical can perform main role. I did not see the Hanbok fashion show, actually I did evaluate that clothes based on western style, culture is better than Korean clothes including Hanbok. Generally, people think like me. Therefore, Korean fashion markets must focus on the motives, changes, and marketing strategies that make people change their view points about Hanbok. Specifically, Hanbok’s design should be transformed to be stylish, characteristic, colorful or simple for young people. Another marketing strategy is to use media program like drama, movie, TV show because many Koreans like to see the mass media. These trying can be advertisements that people is used to seeing Hanbok. Although brand of Korean is weak to notify our strong points for people who are interested in Korea, many traditional cultures including Hanbok, Hangeul, Bibimbab should be improved to do marketing about Korea.

Reference
http://www.koreatimes.co.kr/www/news/art/2008/05/199_22038.html
by Chung Ah-young
Koreatimes

20600517 Lee, young jae entry-12

Calvin Klein sees more growth in Korea

Summary
CK, Calvin Klein, clothes brand is successful company in Korea. Tom Murry, president and chief operating officer of Calvin Klein Inc. thinks Korea has the potential for Calvin Klein to improve its brands. Among its extensive product categories, Calvin Klein Collection is considered the ``image maker'' for the Calvin Klein brand. In Korea, ck Calvin Klein, which is distributed by Bifun Trading Co. Ltd., is available in all the major department stores.
Opinion
Calvin Klein is the company that has high profit because of its brand values. People including me tend to judge whether one brand is quality or not by checking that brand position in the world. Calvin Klein is using the way for improving their brand; Calvin Klein is considered “image maker”. Thus, people think “image maker” means that this company is leading fashion image in the world and this company is the basis of fashion. I think this way like ‘image maker’ is a good marketing strategy because CK brand became unique and special. Tom Murry, president and chief operating officer of Calvin Klein Inc. said CK will success more because Korea has the potential in fashion market. This point means Korean fashion brand can have the unique brand and Korean fashion market will be the blue ocean. So, what about many brands in Korean fashion market? I think Prospecs, GIODANO and many Korean fashion brands have no points and no unique characters to attract buyer’s demand. Therefore, if many fashion brands in Korea want them to be the best fashion collection, they should evaluate and reform their brand value.
References;Author: Cathy Rose A. GarciaTitle: Calvin Klein sees more growth in Koreahttp://koreatimes.co.kr/www/news/art/2008/05/199_24514.html

20600517 Lee yong jae 10th entry

Materials and Price

Summary

The gassoline price topped 2,000won per liter yesterday at some retail stations. The average gasoline price was 1801.44won per liter on wendsday. It is 10% higher price than januarly. Diesel is also rose more than 20% to 1,760 won over the same period. The price of diesel rose faster than gasoline because of growing industrial demand in neighboring emerging economies such as China and India, where many factories run on diesel. This raises the cost burden on trukers and manufacturers. The government tries to curb energy consumption, with little succes in reducing effects on the ongoing oil crisis.

My opinion

I learned about “Pricing” last marketing class. The price is an important factor in market. It is determined by demand and supply economically. Nowadays many economic factors influence the demand and supply. Especially supply is influenced by technology, distribution and raw material, etc. Among them, raw material is a traditional factor. It will be a basic when salers determine a price.
Nowadays the major issue in the world is global inflation. It is caused by a raw material price. Many countries worry about this problem, because this problem will higher the products’ problem and the market will be getting freeze. Especially, it is a larger problem for Korea than other countries that they have large resource. Korea doesn’t have much resource, so if the raw material’s price higher, countries having resources have a market power.
For sorving this problem, Korea focus on other part. The solution is an intangible market like a service and finance. However, we consider something before we start these industries. Fist, Korea should have a good language power. Second, we must have a service mind. Lastly, the most Koreans have a mind understanding foreigners.
This raising oil price will be a critical crisis for Korea and other developing country. However, we change our perspective. It will be a new chance, and this new industry will be strength in near future.

References;Author: By Ko Kyoung-tae Title: Gas hits new record The Korea Herald. May 23, 2008

20300174 Nah Kilwoong, Entry - 11

Jeju seeks investment to become business hub

Summary>
Since the National Assembly approved a set of bills to expand autonomy and ease regulations on investment and education on Jeju Island last year. Under the government's plan, the island will specialize in medical tourism and "English town". The government also plans to develop a cutting-edge industrial complex for information and communication technology and bio-technology companies.
In Jeju, foreign corporations are permitted to run hospitals on the island while continuing to ban domestic profit organizations from the medical service sector. The Jeju provincial government will ease restrictions on marketing activities by medical institutions targeting foreign patients and overseas Koreans who are not covered by domestic health insurance.
The Jeju government plans to open "English Education City" in southwestern part of the island to increase competitiveness of the service industry and curb growing deficits in the education sector. The English town will also attract branch campuses of universities in English-speaking countries. The Jeju government said it is also discussing with the central government to relax regulations on foreign schools on the island.

Opinion>
The Jeju government said it will focus on three key development projects - medical tourism, technology based-industrial complex and English town. But, there is an old saying that Jack of all trade is no master of one. Similarly, developing society should be intensive in particular parts.
Medical tourism has a chance of success because the fee of medical treatment in Korea is cheaper than any other developed nations. And Jeju-do has many tourist attractions like sea, craters, a mild climate, tangerine and Dol-ha-ru-bang. But there is a critical issue on privatization of medical insurance. If it is realized, Jeju has no competitive power on price of medical treatment.
Technology based-industrial complex will be most successful. Information and communication industry and bio-technology industry don’t need to be placed in land. Jeju is citing tax incentives, low rents and employee welfare and enhances employees productivity and creativity while working and living in the island
But I think that ‘English town’ has no value to invest because some English town has already been build near Seoul, and English camps are being holding in many universities.

References;
Author: Cho Chung-un
Title: Jeju seeks investment to become business hub May 23, 2008
http://mail2.daum.net/hanmail/mail/ViewMail.daum?MSGID=0000000000005Xk&FOLDER=%ED%9C%B4%EC%A7%80%ED%86%B5&mpage=1&KEYTYPE=&KEYWORD=&_top_hm=w_read

20600613 9th entry

“One plus one” is more than two.

Samsung, LG consider TV panel partnership

“One plus one” is more than two.

Summary

Samsung Electronics Co. and LG electronics controlled 38% of the global market in 2007, with exports topping $35.3 billion. They are Korean top electronics makers and bitter rivals in global market. They are positively considering a deal, that is that they buy each other’s products. The Ministry of knowledge Economy expects that this first deal is starting of collaboration. He thinks the compitition among Taiwan, Japan, Korea and some other countries in the region are getting fierce. Therefore Seoul has an opinion that the Korean display companies need to share their resource each other. Nowadays, Korean government will roll out programs to make Korea into a display powerhouse, with at least 45 percent of the global market share in 2017, and earlier in the week, Samsung and LG announced that they will jointly develop a mobile television technology aimed at the North American market.

Opinion

Samsung and LG are well known display companies in the world. This deal is big effect in the world. I think Sony may carefully watch this deal. It has a big meaning in the world market. Nowadays, the world is getting closer, and FTA supports this movement. It may be a new strategy for surviving in changing global market.
This deal has an effect not only world market but also national market. They are the most important companis in Korea. Korean GDP and exchange surplus of Korea are hanging on these two companies. Almost Korean has an interest in this deal, and following the result, Korean stock market will change. Samsung has a 10% effection in Korean stock market.
I expect a positive effective. Generally, as this deal contributes for each company’s benefits. These two companies have a more market power about price. They will develop better technology using cooperation. Especially, common resources will help reducing cost.
Surely, the benefits are good for making a company better than before, however I think it’s not enough. They will develop more things using this chance. They input a lot of resource and money marketing. However, it is not proper. Following the professor Lee, Korean company already has a good ability producing the best quality goods. On the other side, they are not good at creating brand value and new idea.
Last class, we learn about defference between developed nations’ industry and others. Developed nation’s industry is not just making products. They make an intangible value. Samsung and LG need to focus on this type of business. It is not just making products fixed resource, but creating an intangible value. I expect that they will be upgraded through this chance.

References;Author: By Lee Sun-young Title: Samsung, LG consider TV panel partnership The Korea Herald. May 16, 2008

20300174 Nah Kilwoong entry - 10

SK Telecom makes foray into Chinese gami.

Summary>
SK Telecom, the nation’s top mobile carrier, has entered the fast-growing online gaming market in China in a bid to generate new income sources by expanding its business overseas. The company agreed to invest in Magicgrids Networks, a China-based company specializing in developing and publishing online games.
Also, SK Telecom has been acquiring a leading music label and a telematics company. The Chinese music industry, estimated to be worth 2 trillion won as of 2007, is expected to surge to 3.5 trillion won by 2010, powered by the growth of the digital music industry. The telematics industry is experiencing fast growth due to a Chinese government policy that mandates GPS devices in every public and special-purpose vehicle.

Opinion>
If SKTelecom combines their successful services with understanding and experiences about Chinese market, of Magicgrids, the company will succeed. But, SKTelecom failed in foreign online service market. ‘Cyworld’ failed in Europe market because they didn’t know their culture. And europians gradually got tired of Social Network Service(SNS). The time of stay per each user of ‘My space’, the largest SNS company in US, decreased up to 14% for last 4 months. Visitor also decreased from 72million in September, to 69.8million in November.
SKTelocom should study Chinese culture and their language to succeed in Chinese market.

References;
Author: By Jin Hyun-joo
Title: SK Telecom makes foray into Chinese gami. The Korea Herald. May 16, 2008

http://mail2.daum.net/hanmail/mail/ViewMail.daum?MSGID=0000000000005XP&FOLDER=%25EB%25B0%259B%25EC%259D%2580%25ED%258E%25B8%25EC%25A7%2580%25ED%2595%25A8&mpage=1&TYPE=&KEYTYPE=&KEYWORD=&_top_hm=li_read_normal&status=N&fromname=webmaster%40heraldm.com&star=N

20600613 8th entry

Foreign Adviser Urges Lee to Foster National Brand

Foreign Adviser Urges Lee to Foster National Brand
Summary
A prominent economist advised the Korean government to improve its national brand as part of efforts to increase its economic growth. Korea needs to foster national and cultural brands to boost its economic competitiveness globally. Korea lacks a competitive drive in global market, so Korea needs to increase flexibility in the labor market and should adopt higher learning system.

Opinion
I think if Korea wants to get the important position in the competitive world, Korean marketers should make Korean cultural source be global. Koreans tend to do act like western style, this means that we have the wrong concept that western culture is much more than Korean culture. For example, Korean 10s and 20s want to be fashion star like Hollywood star based on Western fashion style. Many Koreans Korean style is past pattern so that Korean cultural brands do not have identity in the world. To improve our national brand, we should have conviction, ‘Korean style is World style’. However, if we persist Korean style unchanged to plant our culture brand into people, we will be failed to target. We should change our cultural sources for foreigners to feel sympathy. For instance, Nanta is from the Korean traditional percussion quartet, but many people in the world can feel Nanta’s bits, rhythm, and Korean’s emotion. We have to focus on the sights of consumers, consumers’ needs and then we must adapt our cultural elements into demands. Trough these processing, Korea can get the positions in the world and we can improve our national brand.
References;Author: Park Hyong-ki Title: Foreign Advise Urges Lee to Foster National BrandKoreatimes. May 14, 2008
http://www.koreatimes.co.kr/www/news/nation/2008/5/123_24195.html
20600517 Lee, yong jae #entry-10

High technology company's global marketing strategy

Summary>

Samsung LCD TV ranks top in North America. It is a result of first quarter in 2008. Samsung wins in price competition. This top-rank returning is first time from frist quarter of last year. However it is not a convinced, because the market share between 1st and 2nd has slice gap. LCD market has big three companies. They are Samsung, Sony, and Vizio, and their market share is at 12.8 percent, Sony 12.6 percent and 12.5 percent each. After them, LG and Sharp is following. They are in price war. Samsung expects strong sales of its Touch of Color TV series. The firm has a plan to sell 180 units in its LCD TVs and 30 million units of PDP sets globally.

My opinion>

Last class, I learn about global marketing. Samsung wants to global standard using price cutting. Samsung has a price power in the LCD TV market. Therefore the firm makes new model quickly. Because, the firm make new model, they would lower the old model’s price. It is Samsung’s key marketing strategy. Summarizing it, the new technology for early adopters is sold high price and the old one for laggard is sold low price.
We learn much thing about localizaion. I think it is very important for global market. However I think few exceptions are existed. Representative one is high technology products. The high technology products’ key factor is improving technology. Nevertheless, if technology level is similar, avoiding price war is impossible. Accordingly, cost and administration fee are important.
Many high technology manufacturing companies build factory in large market or cheap labor place. This kind of effort can reduce their cost. Surely, it is not enough. Many factors like exchange rate, R&D efficiency, and turnover ratio, etc are important, too.
In a conclusion, Samsung is in a severe war. They consider many factors to keep their market share. This competition’s result will set a standard of LCD TV market. Samsung is third rank when 2003 in global market. They have grown rapidly, and nowadays almost reach the first place. I don’t know the future, but this invisible war will finish. I expect, at that time, Samsung electronics win this war.

References;Author: Lee Sun-young, Title: Samsung LCD TV ranks top in North America: poll Korea Herald(http://www.koreaherald.co.kr). May 9, 2008

20300174 Nah Kil-woong entry-9

8 out of 10 visitors to Korea try kimchi: poll

Summary>
About 84 percent of foreigners said that they tried kimchi while traveling in Korea. Bibimbap ranked second with 62 percent, followed by bulgogi and galbi, with 58 percent and 47 percent. The list of top 10 Korean menus also included "naengmyeon", "samgaetang" and "kimchi jjigae". Kimchi was favored mostly by Russian respondents with 93.7 percent followed closely by Taiwanese and Singaporeans. They tried kimch because the Korean dish is known widely as healthy food and it was included in every Korean menu. Foreigners were generally satisfied with the quality of Korean food and restaurants. However, they had problems with communicating with restaurant servers on selecting menus.

Opinion>
Korea has many things that can attract foreigners. Elegant and refined Hanbok, unique and healthy dishes, ondol(floor heating system) and four seasons. But these are not being used for tourist attractions properly. Dishes in this news story are also tourist attractions. How can we use these attractions?
Foreigners visited in Korea, tried Korean dishes. But making dishes firsthand will give them more fun. Kimchi has unique and complex process to make. First, pickle cabbages, and the cabbages are mixed with many spices like ginger, hot pepper, garlic and salted shrimp, etc. Events making kimchi are held sometimes. But because they are not regular, many foreigners can’t experience ‘making kimchi’. So, we need to provide visitors fixed place and time to make kimchi or Korean dishes.
Second, provide them luxury and elegant eating experience. Bulgogi and galbi are favored by foreigners. But, when they try it, their dresses are impregnated with bad smell. So the eating experience can be disagreeable experience. To solve this problem, restaurant should be well equipped with ventilating system. And the restaurants should provide cultural experience thorough traditional décor, uniforms that simplified Hanbok and traditional liquor in traditional bottle, etc. It is necessary to employ bilingual who can speak in English, Chinese and Japanese.
Third, provide them well-being experience thorough Korean dishes. Western dishes are higher-fat and higher-carbohydrates, so many of westerners are overweight and exposed to adult disease. On the other hand, Korean dishes are comprised of vegetables, kimchi and soybean paste. So, Korean dishes are relatively low-fat and have nutrition balance.

References;
Author: Cho Chung-unTitle: 8 out of 10 visitors to Korea try kimchi: poll
Korea Herald. May 3, 2008

7th entry
20600613

Biz Stars, Ministers Will Discuss Internet Future

Summary
OECD Ministerial meeting including CEOs of many companies and NGOs will be held. CEOs will discuss Internet future for economic advantages. The goal of the OECD ministerial meeting is to make policies for economic growth via the Internet. Most of its Internet policies and other industrial functions were moved to other ministries as part of a government reform plan.
Opinion
Internet is the most important and valuable option that many companies concentrate on to sell their products or to deliver their values to customer. In these days, many customers buy products through Internet shopping, especially 10s and 20s because Internet is easy for them to see the products they want to buy and the processes of buying is more shorter than direct purchasing. So, companies in competitive market should investigate and be fully aware about characteristics of Internet and customers who are familiar with Internet shopping. Actually, I think Internet market is fit for the young and the profits from Internet is limited and also the problems from Internet world generate. Internet problems are not only that related to the economic attack such as privacy disturbs, but also morality of human. Because of these problems, OECD meeting will be held is an important opportunity to form the standards that establish the steps to solve Internet problems and prepare Internet future. For righteous economic advantages, profits, and Internet value, OECD meeting should be continued and companies must arrange valuable marketing programs because future economy will be led by conqueror of Internet market, Internet culture will be the main stream in the world economy, politics, society, culture. This stream is for each person, too. Therefore, we have to know the outputs from Internet, consider implications we suffer in Internet world. Through these considerations, we can understand Internet future.
Biz Stars, Ministers Will Discuss Internet Future by Cho Jin-seo
koreatimes
May 8, 2008

20600517 Lee, yong jae

entry-9

Firms Rush to Win Olympic Marketing Medal

Firms Rush to Win Olympic Marketing Medal
By Jane HanStaff Reporter
The world's biggest sporting event coupled with the world's fastest growing consumer economy gives enough reason for corporations to fork out millions in marketing dollars. The stakes are high, but companies say the Beijing Olympics will be worth it.Samsung, GE, McDonalds, Kodak and Coca-Cola are among 12 global sponsors for the 2008 event, expected to be the most lucrative games ever, and each of them hold the rights to identify themselves with the most famous hoops in the world.``The Beijing Olympics is different from games in the past because China's economy has such explosive potential,'' said Lee Sang-hoon, a senior analyst at Marketing One. ``Even after the games are over, the audience will remember the brands and become dedicated consumers.''A survey by Ipsos MORI, a global pollster, showed that sponsors generate significant sales hikes compared to rivals in years Olympics are held. A study by the Ogilvy Group, an international advertising agency, indicated that the public awareness of official sponsors was much higher than services providers or ambush marketing.But all of these benefits are costly as each sponsor pours in about $55 million for the rights, and more to shoulder the cost of lucrative ad campaigns.Among the aggressive marketers, G.E. is going beyond print and television commercials, as it is adding the finishing touches to its two-story exhibit building in the middle of the ``Olympic Green'' complexSamsung, the only Korean sponsor, is beefing up its on-site campaign by delivering its primary message: ``Olympics=Samsung.''The only fast-food sponsor, McDonald's is prepping by building burger joints near and on the Olympic Green and airing new global television commercials.``Only one sponsor is allowed in each sector, so it helps to spread out the competition between sponsors,'' said Lee, who added the marketing race heats up more with unofficial sponsors stepping up their game, too.Among carmakers, Hyundai Motor says it will launch massive visual campaigns in Beijing that will directly appeal to potential buyers.``The approach companies are taking in China differs from the recent Games held in Australia or Greece because there are many more consumers,'' said Hyun Joo-min, a marketing expert at a local agency. Experts also say China's nonexistent brand loyalty also attributes to its attractiveness, as it provides ground for a fresh start.jhan@koreatimes.co.kr

Summary
Many companies are concentrating on the marketing about Beijing Olympic to improve their firms’ images or success in marketing. Marketing strategies operated by competitive companies during Beijing Olympic are more important than before because there are many consumers in China.

Opinion
Many companies in the world market are competing with other companies for their images or achievements in China which is performing a primary role in world market. Therefore, a period of Beijing Olympic is the best opportunity for global companies to communicate with Chinese. I thought Olympic is the biggest sports festival and global companies wanting to get the position in China’ market already knew about facts. China is opening Olympic means that Chinese economic level improved by the policy of the government intending the free economy and their life style was changed to spend more their money than before. So, Chinese want to get environmental performance and qualified buying activities. Companies in the world should consider these two points, investigate Chinese life, especially Sports style in these days, and prepare marketing about Chinese Sports. Olympic is not only world festival but also opportunity or threat for global market.

Seoul to Open Service Center for Foreigners

By Kim RahnStaff Reporter
Seoul will set up a one-stop service center in downtown for foreign residents and visitors by 2011.It is a part of the city's effort to improve foreigners' living conditions here. The measure comes after the city government has collected opinions and complaints from foreign residents at Seoul Town Meetings since 2000, with the latest one held Wednesday.The city Thursday announced a plan to establish a ``Global Cluster Building,'' with five basement levels and 14 upper floors, in Jongno with 25 billion won ($25 million) in budget for administrative and cultural services for foreigners here.Seoul Global Center, which opened in the Seoul Press Center in January to help foreign visitors and residents resolve problems, will move to this building with expanded services for comprehensive administration, business, immigration, counseling and daily living.For cultural exchanges between Koreans and foreigners, business meeting rooms, exhibition halls, a theater, a library, and a day nursery will be set up. The building will also have a medical center, gyms, banks, restaurants, and a rooftop sky lounge. Many foreign chambers of commerce in Korea are expected to move to this building.``The number of foreigners living in Seoul increased fourfold over the last decade, but the city's expansion of facilities for them has not met the increase,'' a city official said.The city has paid attention to obstacles and difficulties which its foreign residents have encountered in Seoul, holding Seoul Town Meetings once or twice a year since 2000.At the 10th meeting held Wednesday, the participants' two main topics were about health service and increasing the number and quality of foreign schools, Alan Timblick, head of the Seoul Global Center, told The Korea Times.About 130 foreign nationals said they cannot get proper medical services due to complicated procedures and lack of information given to them. Some complained that many foreign workers and teachers do not get proper information about medical insurance from their employers, while others said hospitals do not have systems for foreigners, such as interpretation.In regard to the issue, city officials said foreigners can receive national health insurance. They also said an emergency medical information call center, 1339, would offer English, Japanese and Chinese services from May 1, providing information of first-aid treatment and locations of nearby hospitals.Hanyang University professor Ahn Mi-lee gave a presentation about the situation of foreign schools in Seoul, saying foreign parents are looking for a good education for their children. ``Some participants proposed the city government set up a committee with both Korean and foreign members where they can discuss foreign school issues together,'' city official Uhm Eui-sik said.rahnita@koreatimes.co.kr


my opinion


I find good news about efforts to improve foreign investment. During last few classes, Professor Lee emphasized foreign investment environment in Korea. The news is about this point.
I agree with Professor Lee, because Korea is not a big market. For example, China is enough to large can circulate their economy inside their land, they has enough material and population. The outher side, Korea cannot, and we don’t have enough materials and population, too. Besides we are not enough capital to import. Surely Korean economy scale is not small. Besides, Korean GDP is 13th in the world, but almost all, it depend on an exports. Exports are important source in Korean economy and investment, too. Investment from other country will increase capital in Korea. In capitalism wolrd, capital is a necessarly point of profit. If Korea lost it again and again, we would be poor. Therefore, we make a better environment for investmentors from abroad.
Following this article, Korea does not much thing for foreigners. I think we don’t need to try for this, because Korea was attractive. Korean stock market was evaluated low, because of war risk and uncleaned finance. After the 1997 finance crisis, However, Uncleaned Korean companis were changed. Mereover, Hetbuet policy improved a relationship between North and South Korea. In a conclusion, many foreigners have an interst on Korea, and invest much money. Nowadays, foreigners are considering about investment. We must motivate them. We show them that we are attractive yet, and Korea has a good environment.
I glad to hear the news. The open service center for foreign will be a good start. Many foreigners will welcome this plan. This center gives an incentive not only living in Korea, but also visiting and treveling. Moreover, it will improve an image of Korea. In this environmet, foreigners want to buy Korean products, and know more Korean culture.
Only one service center in Seoul is not enough. Surely, it is too small part to change better. It is just symbol that Korea is starting to care foreigners. I want that the center will be opened every city. I hope, In the future, whole Korea to be the open service center for foreign.

20300174 Nah Kilwoong, entry–8
Article from Koreatimes, 08-05-01, 17:32
http://www.koreatimes.co.kr/

KTF, Shinhan Join Forces for Mobile Payment System

Telecom operator KTF and credit card giant Shinhan Card have established a joint venture to launch a mobile phone payment system in the second half of the year. The two firms announced Monday that they will invest 1 billion won each to establish the joint venture, tentatively named Mobile Credit. Shinhan will have 50 percent plus one shares, and will appoint the chief executive officer. KTF will pay the rest, and appoint the chief financial officer. Korean mobile firms had launched various mobile payment systems in the past, which used either infrared beams or short-distance radio waves. But none was very successful, due to cumbersome devices and different technological standards between companies. Shinhan and KTF say they will be different. The joint venture will be the first step of the two firms' efforts to seek hybrid business models of finance and telecommunications, they said. They also want to develop the partnership by holding a regular meeting of executives on a finance and telecom cooperation committee. ``Cooperation with Shinhan Card, the largest credit card company in Asia, is a convergence business that can offer what the customers need most,'' Cho Young-chu, president and CEO of KTF, said in a statement. ``It is also an occasion that can change the financial lifestyle of customers.''Mobile Credit will issue its subscribers a credit card and a USIM (universal subscriber
identify module) chip. They can make payment at shops and restaurants either with the credit card or with a USIM-inserted mobile phone. The payment is deducted from the Shinhan credit card account. ``We will stop issuing the plastic card once the USIM readers are widespread,'' said Jung Woon-gyu, leader of the project. Shinhan Card is the largest credit card company in Korea, fully owned by Shinhan Financial Group. It boasts more than 13.3 million customers and 2.1 million member shops. KTF is the second largest mobile service operators in Korea after SK Telecom. It is one of leading developers of mobile payment systems in Asia.
The company is also the leader of the third-generation telecom service in Korea, which uses the USIM chip. More than 4.8 million are using KTF's third-generation service.

By Cho Jin-seo Staff Reporter

mailto:Reporterindizio@koreatimes.co.kr

Summary>
Telecom operator KTF and Shinhan Card have established a joint venture to launch a mobile phone payment system in the second half of the year. Shinhan will have 50 percent plus one share, and will appoint the CEO. KTF will pay the rest, and appoint the CFO. Mobile Credit will issue its subscribers a credit card and a USIM (universal subscriber identify module) chip. They can make payment at shops and restaurants either with the credit card or with a USIM-inserted mobile phone. The payment is deducted from the Shinhan credit card account.

Opinion>
Today, people always carry their cell-phone even when they go out for minutes. It is very inconvenient to carry a cell-phone in one hand and a wallet in the other hand. This is the opportunity of Mobile Credit. But, none was very successful. Why didn’t they success? What’s the problem? And, what’s the solution?
First, people don’t need Mobile Credit when they go out faraway or for a long time because they have to carry their wallet for identification. To solve this problem, KTF and Shinhan have to make identification possible through subscriber’s cell-phone so that one cell-phone can function as a phone and a wallet.
Second, it is important to spread card readers, especially, the shops near the houses. But, in Korea, I have hardly seen card readers. It will be the best way to spread card readers for City Pass first because many people feel uncomfortable when they find their wallet in the bag for bus fares. But, because many Koreans put their cell-phone in the pocket or carry in their hands, they can find it easily.
Third is the problem of missing card. When customers use their plastic credit card, they don’t prove their identity. Mobile Credit doesn’t take any steps for identifying also. Although people check their cell-phone more frequently than wallet, we think that the possibility of loss of cell-phone is more than wallet. KTF and Shinhan should straighten these customers’ worries out. How about ‘Lock Card function’? If you push the Lock Card function key for seconds, the Cell-phone can’t function as a card. And then, when you want to use Mobile Card, you must push the secret access number. And, they should make easy to stop subscriber’s card easily, even on weekends. Fourth, they should integrate the standard of technology and tools. One of the reasons of fail in this market was the problem of integrating.
Despite of all these problems, Mobile Credit market has enough possibility to change our life style, if Shinhan and KTF solve these problems.

20600613 Jeon, Hyejin

Experts Believe Seoul Fashion Moving on Right Course

Experts Believe Seoul Fashion Moving on Right Course

By Cathy Rose A. Garcia Staff Reporter

Seoul Fashion Week may not yet be on the level of Paris, Milan, New York or London, but international fashion experts believe it is headed in the right direction. Jean-Pierre Mocho, president of the French Ready-to-Wear Federation, and Anna Orsini, head of the British Fashion Council International, had high praise for the collections presented by Korean designers during Seoul Fashion Week, which ended Monday. ``With this kind of collection you are building, you are coming close to the right direction. Not today, but I think in two year's time,'' Mocho said.Orsini was also impressed with Korea's fashion and retail market. ``Korea is a very important market for fashion… We have seen Korean multi-brand stores with 11 or 12 floors of international brands. We would like the buyers to be interested in Korean fashion and help Korean fashion reach international level,'' she said.Mocho and Orsini met with Seoul Mayor Oh Se-hoon, who attended designer Moon Young-hee's fashion show Sunday. Seoul is hoping to establish its Fashion Week as the 5th major international fashion collection, after Paris, Milan, New York and London. Seoul Fashion Week, which started in 2000, still faces stiff competition from other Asian fashion capitals like Tokyo, Shanghai and Hong Kong.Mocho gave his insights on Seoul Fashion Week, and gave suggestions on how to strengthen the link between Seoul and Paris' fashion industries. He suggested establishing a Korean fashion information center in Paris, as well as holding a fashion competition for young Korean designers. ``I think the collection at Seoul Fashion Week is very high level. You have different ways, both high and medium. But the way you are creating this collection is in the right direction. It doesn't matter if the schedule (of Seoul Fashion Week) is good or not. The most important thing is if the collection is good,'' Mocho said. It is also important for Korean designers to incorporate traditional elements in their designs. ``One reason why we travel the world to see fashion is because we want to see the individuality of the country. It is important for designers to use elements of traditional fashion, use traditional fabric and make it as wearable as possible,'' Orsini said. Top fashion designers Lee Young-hee and Li- Sang-bong have taken elements of Korean culture such as hanbok and Hangeul (Korean alphabet) and incorporated it in their designs, which have been recognized abroad. The Seoul Metropolitan Government has identified the high-value fashion industry, as one of the new growth drivers for the economy. Korea is one of the world's top 10 fashion industries, in terms of creativity, design and quality. When asked to describe Seoul's fashion industry, Oh cited the ``strong passion for fashion, and the rich history and culture of Korea as its main characteristics.``I believe if the city government gives the fashion industry enough support, our fashion industry can be a world-class industry. When the local government aids the industry, it should be indirect, and focused on creating a proper environment for our design industry,'' Oh said. He also expressed support for initiatives to increase exchanges in fashion and culture between Seoul and Paris. ``Paris is no doubt the center of the world's fashion industry. I am proud to say Seoul is the fashion center of Northeast Asia. In this regard, I think it is really important for cities to have this kind of cooperation and exchanges,'' he said. cathy@koreatimes.co.kr
Summary
World fashion market is focusing on Korean fashion industry. Jean-Pierre Mocho, president of the French Ready-to-Wear Federation said ‘Korean fashion market is the center of world fashion because of the product affected by Korean traditional style such as Hanbok or Hanguel.’ They want Korean fashion designers to make products that presenting Korean style and they want to build fashion city in Korea because Korea fashion market is a competitive trading center.

Opinion
I think Korean traditional fashion has strong points in fashion world. Many foreigner fashion designers want to get the competitive items to afford their fashion style and they want Korean fashion designers to show their own culture style on cloths, shoes or accessories. To attract world fashion designers into our fashion world, we should change our people in Korea, especially young people(10~20s). They are main buyers consuming fashion items to decorate their style, and their consumption is the most important in national market. However, young people would like to wear products from other country’s marker, nike, addias, polo, reebok so on. This result means that their insight of fashion style including all products that represent their identity is focusing on foreign style like American style. I think if many Korean fashion designers graft own Korean style on our fashion design to be consumed by young people, that style will be competitive icon in the World fashion, because fashion trends from the young style are critical streams of fashion.
In my school, one student is wearing Hanbok that is changed to wear conveniently. We are looking her in different concept and she is becoming a special person for her own style. This means fashion design on person can be an important factor for people to specify identity or personality.
‘Korean style is World style’, this wording should be actualized for our people and world people, and world fashion.

20600517 Lee, yong jae , 7th entries

Three More Free Economic Zones Picked

Three More Free Economic Zones Picked

By Kim Hyun-cheol
Staff Reporter

The government designated three more sites to develop into free economic zones (FEZs) Friday as part of efforts to attract more foreign investment.

A western coastal area, and zones in North Jeolla Province, and Daegu, North Gyeongsang Province were newly named as strategic hubs to revive the economy, the Ministry of Knowledge Economy said.

The area on the west coast includes Pyeongtaek, Gyeonggi Province and Dangjin, South Chungcheong Province, and will be developed into a center for global cooperation to compete with eastern Chinese economic districts on the opposite side of the Yellow Sea.

The Saemangeum-Gunsan zone in North Jeolla Province, to be established on a vast reclamation site, is to attract businesses for future industries and tourism.

The Daegu-North Gyeongsang area, the only inland FEZ, will specialize in information technology, machinery parts production, and the textile industry as well as medical and educational services.

The new FEZs will also be test beds for drawing foreign interests, capitalizing on their eligibility for building foreign facilities such as schools and hospitals, prior to nationwide deregulation.

Seoul officials hope that the new FEZs will serve to attract more inbound investment, however, the three existing FEZs are underutilized critics note, raising skepticism over the new designations.

The three in operation are in Incheon, Busan-Jinhae and Gwangyang, South Jeolla Province.

The government also announced a new regional development plan, in which six local specialized districts were designated including a water sports district in Chungju, North Chungcheong Province and a global education district in Cheonan, South Chungcheong Province.

hckim@koreatimes.co.kr


Opinion
Necessary factors for New FEZ

Professor told us about FEZ. FEZ means Free Economic Zones in Korea. Korea has three FEZ. These are Incheon, Kwangyang, and Jinhae/Busan. Korean government made it for get more investment from other countries. However, it has not too much impact in Korea. Professor showed an example that is Incheon. Korean government spends much money for this project. But, this project is spoiled by Korean wealthy people. They already invest much money there, and wait to sell this area high price. It prevents foreign investors.

This article is about new FEZ. I think this project will be speciallized. If it is same with last one, it will be a failed. Therefore, they should focus on new rules and benefits.
First of all, Korean assembly makes new law for this project. This law gives more insentives for foreigner. It is related with price. Foreign investors wants low price. Examples of this rule are land price cutting and tax free or low tax.

Second, infra is very important. 2 over 3 new zones are located near a harbor. However, it is not enough. Foreign investor needs cheep express way and convinience facilities like a park and a mall. Especially, Daegu area has only one airport and no port. If they want to import lots of things, they bring it from Pohang or Ulsan. However, Pohang new harvor is not completed.

Third, Korean citizens change their mind. They don’t like other cultures. For the globalization, cultural problem is the most important topic. Particularly, New FEZs, West see and Gunsan are located near China. Therefore, we need to understand more about china culture. Some of Korean hates China. They complain about Chinese prodcuts. But, their products are cheap and useful. No one can ignore China. Especially, Korea is the nearest country is China. We should consider it.

In a conclusion, FEZ is a Korean new strategy. For this project, Seoul spends lots of money. The most important one is efficiency. If we can’t give any profits for foreign, they don’t want to invest even a penny. Korea should make perfect plan, and perfect mind. It is an only way to survive in modern global marekt.

20300174 Nah Kilwoong, entry-7
Article from Korean Times, 080426
http://www.koreatimes.co.kr

Coupons Going Digital Too

Coupons Going Digital Too


By Jane Han
Staff Reporter

Coupons have long carried a stigma of stinginess, people with too much free time and low-income. But they're now stripping away their old image and putting on a hipper one via new phone services.

Companies have enabled bargain hunters to easily download electronic vouchers without the fuss of clipping paper coupons, and the newfound convenience is attracting a younger and wider crowd of savers.

``I didn't like the idea of having to look through booklets to cut out coupons,'' said 28-year-old Kim Hoon. ``Being lazy was one thing, but having to present it in public was also something I wasn't proud to do.''

Noticing the drawback of conventional vouchers, mobile phone companies like SK Telecom, KTF and LG Telecom, along with other service providers, introduced ways to allow users to enjoy paperless discounts.

The latest of these services is SK Networks' ``OK CouFun,'' a customized coupon database which automatically updates daily to provide subscribers with a fresh stock of vouchers that can be redeemed at any time.

``We offer savings anywhere from getting hamburgers, attending musicals, renting cars and joining fitness centers,'' said SK Networks spokesman Chang Sae-chan, adding that currently some 100 products are available for bargain deals. ``The best part of the service is its hassle-free use.''

He explained that once subscribers increase, they can conduct quick searches for whichever coupons they wish to use and take advantage of the savings by showing the cashier the voucher displayed on the phone's screen.

Chang said SK Networks is estimating around 3 million users to subscribe by the first half of this year.

``The tough economy is only going to push consumers to hunt for more bargains,'' he said.

Aside from the coupon database service, barcode discounts, which have been around longer, are also expanding here. This is the method in which users can scan their voucher barcodes on onto shops' code readers.

Industry officials say more store owners and franchise chains are asking to team up with mobile phone companies to attract young and image-conscious shoppers.

Seeing solid results here and other Asian countries, mobile carriers in Europe and the United States are also beginning to target the niche coupon market.

jhan@koreatimes.co.kr


My opinion
A coupon contributes to increase people’s willingness to pay. Therefore, handy coupons make people take out their money more. Mobile coupon is a revolution. It is convinience and potable. Moreover, most of people use a mobile in Korea.
Last class, prof. Lee told that a coupon is needed to real money spenders it’s not for all people. Most of coupon is used in fastfood restorants and cosmetic shop chains. Youngsters have a large wallet share in these markets. If shops use the coupon, they can gather more consumers. Youngsters are easy to do impulse buying.
This new type of coupon will be efficient. The cause of coupon’s narrow using is inconvenience. Therefore few companies made a Couponbook. However, it’s not portable. Nowadays everyone uses mobile. Especially, youngsters are using it more. So, mobile coupon is useful for youngsters who are using coupon. Accordingly, sales strategy and promotion using coupon will be more efficient.
Using this coupon, company can get not only more sales increasing, but also know customer’s personal information. It can make a database, and use it for marketing strategy.
I think SK will be the most profitable company, if the mobile coupon will be common. SK has a good synergy among their companies. Therefore SK has a good chance to get more profit. Surely, every telecommunication companies can gather more profit from mobile coupon using companies. It is an advantage for telecommunication companies, coupon using companies, and consumers. In a conclusion the mobile coupon will be a win-win-win strategy.

20300174 Nahkilwoong entry-6

POSCO to Invest $200 Mil. for Stake in S. African Mine

POSCO to Invest $200 Mil. for Stake in S. African Mine

By Jane Han
Staff Reporter
POSCO, Asia's third-largest steel maker, said Friday that it will invest $200 million to buy a 13 percent stake in a manganese mine in South Africa for a stable supply of the essential ore for steel and iron production.
The investment will allow POSCO to annually secure at least 130,000 metric tons of manganese, starting in 2010. This is about one-fourth of its annual need for the material used to harden stainless steel.
The South Korean steel giant said the purchase of the Kalahari mine will be made by joining an international consortium led by Pallinghurst, which owns 49.9 percent of the mine.
This is the first time for POSCO to make a purchase through an alliance.
According to POSCO, the Pallinghurst consortium will accelerate its investment in global raw material development projects to $1.5 billion by 2010, up from the current $600 million.
The steel group said that it would seek further global investment opportunities with Pallinghurst, a London-based mining investment group.
The latest decision comes after POSCO agreed to pay Brazilian miner Vale 65 percent more for iron ore this year, starting April.
Soaring raw material costs have squeezed steel makers to push up prices and hunt for more diverse suppliers around the world.
Most recently, the Pohang-based company signed a deal with a major U.S. mineral developer to explore a central Nevada mine, considered to have one of the world's largest deposits of molybdenum, a key raw material for high-end steel products.

jhan@koreatimes.co.kr

Summary
POSCO, Korea's first-largest steel company, will invest $200 million to buy a 13 percent stake in a manganese mine in South Africa for a stable supply of the essential ore for steel and iron production.
This is the first time for POSCO to make a purchase through an alliance.
Most recently, the Pohang-based company signed a deal with a major U.S. mineral developer to explore a central Nevada mine, a key raw material for high-end steel products.

Opinion
POSCO is a major company representing Korea's iron industry. Because of this reason, POSCO should prepare many competitive advantages to live in survival, and POSCO needs to have the relationship with the other foreign companies. To do well these processes, POSCO must get essential marketing strategies and its strategies should be considered by POSCO managers to fit it into world market and to attract investors. So, what are competitive marketing strategies in world steel market? I think POSCO should not only improve the plans to earn profit, but also its Images. The image of steel companies is 3Ds(Difficult, Dangerous, Dirty), so people pretend steel companies are not in a eco-system that takes the values considering the environment where people live in. POSCO is trying to change company's existing images to company that loves environment. POSCO's titles in its web sites are 'Innovation and Growth for Future Generations' and 'Sustainable Step toward Future Generations'. This movement will be helpful to change investor mind thinking 'Steel company does not have the eco-characteristics' and will lead them to invest POSCO. Another marketing strategy is to distribute their profits into people in Pohang. Actually, POSCO has earned high profits and Pohang people are thinking POSCO is the rich company in a local city, but residents do not have good images about this company. Good images to people is the way to attract the investors to give the money for marketing.
Now, POSCO is trying to go the top of the steel industry, therefore POSCO needs more competitive strategies to fit world market.
6th entry, Lee, yong jae

McDonald's to start home-delivery service

McDonald's renowned golden arches are about to get even more famous. To expand its reach and improve accessibility, the world's largest hamburger restaurant chain will this year introduce delivery services in Korea, one of the few countries to offer such an advantage.
The decision is part of a strategy to be more convenient to consumers, said Ray Frawley, chief executive of McDonald's Korea.
"Convenience is the key word to strengthen our growth momentum in 2008 and beyond," he said at a news conference held this week to mark the chain's 20th anniversary in Korea on March 29.
The icon of globalization and American culture has managed to achieve steady growth in Korea, a market that has been touting low-fat Asian meals and more healthy choices amid the so-called well-being trend.
McDonald's Korea announced 16 percent growth in 2007, following 10 percent growth the previous year. The double-digit figures follow an expansion of 7 percent in 2005. The company declined to disclose exact figures, citing corporate policy.
According to Frawley, McDonald's Corporation, seeing growth potential in Korea, invested over 160 billion won ($160 million) in 2006, underscoring that the company has had and will continue to play a leading role in the local restaurant industry.
McDonald's Korea said it ranked No. 1 in growth in terms of customer numbers and operating income among the company's 37 markets in Asia, the Pacific, the Middle East and Africa. It ranked No. 3 in comparable sales among the corporation's 199 markets globally, the company said.
Stressing that "many more consumers" in Korea will be able to enjoy McDonald's, Frawley said: "Our delivery service to begin in 2008 is in line with our focus on convenience; we will capitalize on the needs of consumers."
Home-delivery services are currently available in the Asia-Pacific and the Middle East, including Taiwan, Singapore, Indonesia, Egypt and Turkey. Delivery services are introduced based on the needs of each individual markets, Frawley said.
"We look at each market in isolation," he told The Korea Herald, in response to why the service is not available in the United States. "The U.S. market has a huge number of drive-thrus, which provide a level of convenience," he stressed, noting that each market has different growth drivers.
"The delivery service in Korea is ingrained in the culture," he added.
Since last October, the company has been conducting pilot tests for its delivery service at branches in southern Seoul and Suwon.
"Based on positive feedback and business performance, McDonald's Korea is confident that McDonald's delivery service serves a growing customer need," Frawley said.
The company will steadily expand the service, which will be available around the clock, this year.
Previous convenience-centered strategies introduced by the local unit are 24-hour operations and steady introduction of drive-thru stores, or the McDrive. To cater to a society growing more open to a Western lifestyle, McDonald's in 2006 introduced its McMorning menu, featuring original hotcakes, egg McMuffins and hash browns.
"Our McDrive and 24-hour services have been introduced to meet the busy lifestyles of today's working professionals," said Chun Jin-wook, development director of McDonald's Korea. "A lot of working people set out early in the morning, and some work into the night."
Taking on board the ongoing well-being trend, McDonald's introduced healthy choices like salads and the Okok shake, a Korean-style milkshake made of grains. It also offers a healthy kids' menu.
As perhaps the best-known restaurant chain in the world, the American cultural icon is often scrutinized for the quality of its food preparations, ingredients and business practices.
The U.S. food giant has therefore been sensitive to criticism and quick to respond to consumer needs worldwide.
"We are not a fast-food restaurant but a quick-service restaurant," Frawley emphasized.
He noted that McDonald's around the world practices the highest food-safety procedures and offers the highest quality.
"Our food safety starts at the farm," he said. "We're confident about our food safety, which exceeds the standards of the Korea Food and Drug Administration, and most countries' laws and regulations," he added.
Amid all the global controversy over trans-fatty acids, which are said to raise cholesterol levels, and fast-food companies using cooking oil containing animal fat, McDonald's Korea said it has replaced its cooking oil with pure vegetable oil and uses only pure beef.
In August 2007, it introduced French fries with zero percent trans-fatty acids. TFAs are commonly associated with vegetable shortening, margarine, and snack foods like crackers and cakes, as well as fried foods.
While it caters to children with the orange-haired clown Ronald McDonald, the company has also tapped mature consumers with healthy food options and its Lavazza coffee line.
McDonald's has caught on to the global trend for high-quality coffee and coffee joints. The Korean market is also enjoying a boom.
The introduction of the McCafe, a cafe-style accompaniment to the restaurants, in December 2005 here has been warmly received. The popularity of take-out gourmet coffee, triggered by Starbucks with its entry in 1997, has spawned a large population of coffee aficionados.
Frawley said McDonald's has been recording double-digit growth in this sector as well.
Unique to the Korean market, and underscoring the popular demand, are the McCafe walk-up kiosks.
"The walk-up window here is the first in the world; this is another important milestone for McDonald's Korea," Frawley said. "Our customers have responded very positively to our efforts since 2005. Our future in Korea is very strong, and the plans we have in place will continue to drive our business."
The local unit plans to add 10 new stores this year, taking its total number of restaurants to 240.
As part of its efforts to contribute to Korean society, the company has been supporting children's welfare and health needs since its entry in 1988. Some of its activities and programs include raising funds to support children's charities, and operating Ronald McDonald Soccer Clubs for local school students to promote a balance and active lifestyle. Last year, the Ronald McDonald House Charities, a nonprofit organization, was established in Korea, making it the 51st country to host a local chapter.
As part of the food giant's commitment to children, McDonald's Korea recently agreed to partner with the Korea Olympic Committee for the 2008 Beijing Olympic Games. The McDonald's Champion Kids' program will allow up to 20 Korean kids to take a four-day trip to the Beijing Olympics from Aug. 16 to 19.
"We will support future Olympic hopefuls by sending 20 kids to experience the 2008 Olympic Games," Frawley said.
By Yoo Soh-jung
(sohjung@heraldm.com)

2008.04.11


Summary>

McDonald’s will introduce delivery services in Korea this year. The decision is part of a strategy to be more convenient to consumers. Home-delivery services are currently available in the Asia-Pacific and the Middle East, including Taiwan, Singapore, Indonesia, Egypt and Turkey. On the other hand, the U.S. market has a huge number of drive-thrus, which provide a level of convenience, so the service is not available in the U.S. Delivery services are introduced based on the needs of each individual markets and the culture.


Opinion>
No matter McDonald’s makes itself easy to access, comfortable, fast and available at cheap price, it will be limited to growth. Now, the difficulty it has is the customers’ thoughts that McDonald’s is bad for health. Although McDonald’s has several advantages, customers hesitate to go and to eat there because they think its hamburgers are bad for health. Especially, Koreans, who are much interested in their health, hesitate much more than others. So, McDonald’s started to sell Okok shake made of grains and salads. But, it seems that they couldn’t help McDonald’s to improve their unhealthy image. Because customers go McDonald’s to eat hamburger, not shake or salads.
Then, how can McDonald’s improve their image? One way is advertising that McDonald’s uses pure beef in its hamburgers. Before I watched the commercial, I felt that Big Mac is tasteless because its beef. And now, it is good. But if McDonald’s just advertises, it is obviously swindling. They have to try to improve their product’s quality.
If McDonald’s makes itself easy to access, it will be hard to success in the market. Improving the quality of hamburgers and advertising it will accelerate the rate of growth.

20600613 Jeon, Hyejin

Korean Food to Be Served in Space

Korean Food to Be Served in Space

Korean astronaut Yi So-yeon enters the International Space Station in this image from NASA TV, Thursday. Yi is scheduled to return to Earth on April 19 with Expedition 16 crew members ― commander Peggy Whitson and flight engineer Yuri Malenchenko. / Reuters-Yonhap
By Jane Han
Staff Reporter
Space food history will be rewritten this weekend, when South Korea's first astronaut, Yi So-yeon, treats her colleagues to kimchi, steamed rice and red pepper paste on the International Space Station (ISS) today, her fifth day in space.
The Ministry of Education, Science and Technology said Friday that Yi and two Russian cosmonauts aboard the space station will dine on 10 different foods and beverages prepared for the space mission on Saturday, the anniversary of the first-ever space flight, manned by Yuri Gagarin.
Doenjang (fermented bean) soup, instant noodles and sujeonggwa (cinnamon punch) are among the selections brought by Yi. The 29-year-old will continue to enjoy Korean food ― all bacteria-free ― during her remaining mission, which will end April 19.
Yi boarded the ISS two days after lifting off from the Baikonur launch pad in Kazakhstan Tuesday night. As of Friday 4 p.m., the space station was cruising over the western coast of Australia at 27,720 kilometers per hour, 340 kilometers above the earth.
The real-time location of the ISS can be checked online via the NASA Web site.
The space station will be visible from South Korea with the naked eye twice this weekend (from 9:11 p.m. to 9:14 p.m. Saturday and 7:57 p.m. to 8:03 p.m. Sunday), according to the Korea Astronomy & Space Science institute. Information is available at www.kasi.re.kr.
``The view Sunday evening is expected to be clear,'' said KARI official Lee Dong-joo. ``It will be exciting to see our first astronaut flying above us.''
Yi, a bioengineer who is the second Asian female in space, is set out to complete 18 assigned experiments while orbiting before returning to earth next Saturday.
NASA said Thursday that astronauts aboard the ISS will participate in a 30-minute news conference from orbit on April 15.
Summary
Korean astronaut Yi So-yeon enters the International Space Station in this image from NASA TV, Thursday.
South Korea's first astronaut, Yi So-yeon, treats her colleagues to kimchi, steamed rice and red pepper paste on the International Space Station (ISS) today.

Opinion
I think Korea has good location in competitive world by sending her, Yi, to the space because that means South Korea can be one of the dominant countries in astrology. We should consider our attitude toward world trend, which eventually means that marketing of our country will be more important than before. Actually, 2002 world cup is considered Japan world cup by foreigners. This result is from the weakness of marketing of our country. So, we can use our traditional food, culture, clothes, and so on as Kimchi in the space.
5th entry 20600517 Lee, yong jae

KT to Make Profit From Green Business in 2012

KT to Make Profit From Green Business in 2012

By Cho Jin-seo
Staff Reporter



Telecom giant KT plans to groom ``green business'' as one of its new growth engines in the next four years.

The firm said that developing IT solutions for public and private environment projects and recycling network equipment will be the most plausible business models. Furthermore, it can possibly start renewable energy businesses using its vast real estate all over the country, officials said.

``We have a social responsibility of adopting environment-friendly policies. But we are also preparing for it as a business opportunity.'' Lee Woo-moon, director of KT's assets planning department, said in an interview with The Korea Times on Monday.

``We are considering selling energy saving products and services, and recycling network equipment. We can also use our properties for the power generation business,'' said Shon Yil-kweon, manager of the department.

KT is the dominant telephone and broadband Internet service provider in Korea. Though the telecom or Internet firms may look cleaner than traditional manufacturing and chemical industries, they do consume increasing amounts of electricity and other resources, which means more green house gas emissions and more pollution from power plants.

Everyday offices, data centers and other facilities of KT consume about 0.5 percent of electricity and more than 0.3 percent of piped water that Korea produces. The electricity bill comes to around 140 billion won a year.

Formerly a public company, KT also possesses numerous buildings and other real estate all over the country, of which the book value amounts to 7 trillion won. The lands and buildings can be utilized in saving or even producing renewable energy, Sohn said.

As a first step, the firm has been operating a cogeneration plant in its R& D center in southern Seoul since 2005, which produces electricity and heat used there. New buildings are now constructed with energy-efficient lighting and air-conditioning equipment, and some of them have solar panels though its capacity is far less than what the company's 37,000 employees use.

Such activities gave the firm 1 billion won in tax rebate from the government, which returns 10 percent of investment made in purchasing eco-friendly or energy-saving equipment.

``Korea will be included in the Kyoto Protocol in 2009, so if we are not ready for it, we will be in a very difficult situation,'' Lee said.

Experts agree that Korean firms should take a more active attitude in dealing with environmental issues.

``While the green movement has existed for several decades, corporate mindsets have evolved over time, from obligation toward opportunity,'' said Shanton Wilcox, director of consulting firm Archstone, in last week's conference in Seoul. ``It is important to stay ahead of energy and climate change legislation and regulations.''

KT's role model is GE, the U.S. industrial giant, which has successfully positioned itself as one of greenest companies over the past few years under the leadership of Chairman and CEO Jeffrey Immelt.

``Ecomagination'' has been GE's corporate slogan since 2005. The U.S. firm expects $20 billion in sales of energy-efficient and environment-friendly machinery and services in power generation, desalination and other manufacturing sectors.

GE's case was brought up in KT's Environmental Management Committee meeting last Friday. Nine executive members of the committee agreed to make the green business one of KT's growth engines by 2012.

As a short-term goal, the firm is now trying to be included in Dow Jones Sustainability Index this year. Launched in 1999, the index tracks leading sustainability-driven companies worldwide. An inclusion in it will be considered as a certificate of being a green company and will thus have a positive effect on the firm's stock price, KT's Lee says.

``We have conducted internal research last year, and we are working to join the index this year,'' he said.

indizio@koreatimes.co.kr

My opinion

Kyoto Protocol is a global agreement about greenhouse gas emission. Nowadays, world is getting hot. This effect makes an iceberg melting, and generates abnomal weather. These problems spoil the world. Kyoto Protocol is the world saving project.
Following the Kyoto Protocol, most of the companies prepare a plan for protection of natural environment. Especially, KT will start ‘KT’s Green Management Roadmap’. It’s about protecitng earth from the global warming. KT prepare a budget and specific plan like a power saving and campaigns.
This project will increase common benefits. It has a meaning that KT gives an effort for improving civilizions’ life. It is a good for the firm’s image. Consumers consider a company image. It contributes their sales. Esepcially, service firms like KT is more influenced by the company image.
This movement is used for advertisement. For example, Posco always emphasize their clean management, and insert it to video advertisement. The relationship with Pohang citizens is very important to Posco, and this advertisement and campaign improve this relationship. Like a Posco, the most important one for KT is Korean people’s thinking. Because clean image will change the people’s idea that service quility is better. If they start an advertisement inserting the grean movement, it would make that KT is getting closer with a whole Korean people.
I read a text about promotion in last chapter. The promotion is very important. This kind of promotion will improve the firm’s service value physicologically. In the conclusion, this project is win-win strategy. KT makes a better image, and improves common weal.


20300174 Nah Kilwoong - entry 5

Acxiom Web-based Segmentation System Adds Scarborough Research Local Market Insights

Press Release Source: Acxiom Corporation
Acxiom Web-based Segmentation System Adds Scarborough Research Local Market Insights
Thursday April 3, 3:59 pm ET

PersonicX VisionScape offers marketers real-time analytical and mapping tools with a wealth of consumer behavior and attitude information
LITTLE ROCK, Ark.--(BUSINESS WIRE)--Comprehensive consumer shopping insights from Scarborough Research are now available in Acxiom® Corporation’s new PersonicX VisionScape™. The Scarborough data, along with consumer data provided by Acxiom, allows marketers to dive deep into the consumer mindset with specifics on behaviors and location characteristics for U.S. markets as measured by Scarborough.
PersonicX VisionScape’s Web-based mapping and segmentation system is Acxiom’s latest innovation in the Personicx® family of household-level segmentation tools. PersonicX is a household-level segmentation system that places U.S. households into one of 70 distinctive segments and 21 life-stage groups based on specific consumer behavior and demographic characteristics.
Using PersonicX’s industry-leading customer-coded system, VisionScape accesses a comprehensive library of consumer behaviors and attitudes using Scarborough Research to build in-depth views of specific markets. Information on consumer markets includes traffic, consumer expenditures, population demographics, channel and media preferences, and more.
“Adding Scarborough’s industry-leading data to PersonicX VisionScape allows marketers to more precisely target their messages based on specific consumer behavior,” said Louis Rolleigh, Acxiom’s consumer segmentation and analysis product leader. “Now, companies can access online their PersonicX-coded data, along with Scarborough data, to make decisions regarding all of their marketing campaigns. With the Scarborough data, marketers can examine consumer behavior unique to a particular city or analyze similarities across markets.”
Marketers can use PersonicX VisionScape to analyze questions such as, “Which consumers are most likely to be attracted to my new product offering?” and “Where is the best location for my new store?” VisionScape allows the easy creation of custom target groups based on PersonicX-coded customer or third-party survey data. In addition, its easy-to-use report generator allows businesses to share critical marketing data with all stakeholders across an enterprise, providing businesses a consistent framework from which to view and respond to the consumer landscape.
“PersonicX VisionScape gives businesses hands-on access to tools that generate immediate, precise and actionable results,” Rolleigh said. “In today’s customer-centric marketplace, it’s a given that understanding your customers will make the difference in whether or not you make the sale.”
About Acxiom Corporation
Acxiom Corporation (Nasdaq: ACXM - News) integrates data, services and technology to create and deliver customer and information management solutions for many of the largest, most respected companies in the world. The core components of Acxiom's innovative solutions are Customer Data Integration (CDI) technology, data, database services, IT outsourcing, risk mitigation, consulting and analytics, and privacy leadership. Founded in 1969, Acxiom is headquartered in Little Rock, Arkansas, with locations throughout the United States and Europe, and in Australia, China and Canada. For more information, visit www.acxiom.com.
About Scarborough Research
Scarborough Research (www.scarborough.com, info@scarborough.com) measures the lifestyle and shopping patterns, media behaviors, and demographics of American consumers. Products and services include the Media Rating Council (MRC) accredited consumer insight studies in 81 Top-Tier Markets, and a Multi-Market Study. Scarborough Research also has Scarborough USA+ (a national database), Hispanic studies, and custom research solutions among its service portfolio. With more than 30 years of experience, Scarborough measures 2,000 consumer categories and serves a broad client base that includes marketers, advertising agencies, print and electronic media (broadcast and cable television, radio stations) sports teams and leagues, and out-of-home media companies. Surveying more than 220,000 adults annually, Scarborough is a joint venture between Arbitron Inc. (www.arbitron.com) and The Nielsen Company (www.nielsen.com).
Acxiom is a registered trademark of Acxiom Corporation.

Contact:
Acxiom Corporation
Stacey M. Jones, APR, Public Relations, 501-252-2249
GACXM
________________________________________
Source: Acxiom Corporation

My opinion
I studied about segmentation last class. So I found something related with segmantation. This article introduces new analysitic tools. It is a great tool for segmentation.
Nowadays, internet is full of data. I can find many things that I want. However, if we don’t have searching sight like a google and yahoo, it is very hard to find. We need information, not wide data. Generally I spend lots of time to arrange the data, not to find data. I think VisionScape help businessman to arrange the data.
Businessmans want making a profit. For this profit, they make 4P strategy. If they sale a new beef cooking machine in India, they must be failed. Profit cannot be earned by not only the new evoluated products, but also strategy. Therefore, businessman should have a strategy. One of the basic of this strategy is market segmentation. It is a first level of making a strategy.
Different people live in the world. They think different way, and they eat diverse things. In the childhood, they like toys, but not in the adults. They want different things, and it’s up to place and time. Therefore, People never buy a product, if they don’t need. Before making a profit, more important one is the offering a value.
As every people has a diverse priority. So their value is not same. If businessman sale a new product, they should find a place where the people like their new product. People consider a price, too. If someone wants to sale a diamond, he would find a place where the rich live.
VisionScrape is a great tool to find place saling a new product. This new tool gives a great help to market segmentation. It easily creates information about segmentaion. In a conclusion, businessmans making a more profit.
Addintionally, VisionScrape is not only good for businessmans’ profit, but also the economical efficiency. Because, it helps that a proper people get a proper goods.

20300174 Nah, Kilwoong - entry 4

Korean car exports to East Europe surge 13 fold since '01

In a sign that Korean carmakers are relying less and less on the United States to maintain growth, exports to Eastern European nations rose more than 13 fold between 2001 and last year, the Korea Automobile Manufacturers Association said yesterday.
According to KAMA, local carmakers' exports to Eastern European nations rose by 1,389 percent from the 32,206 units recorded in 2001 to over 447,000 units last year.
With the increase, the region has become the country's third-largest automotive export destination, accounting for 15.7 percent of last year's car exports. In 2001, automotive exports to Eastern European countries only accounted for 2.1 percent of the total. It had been the smallest export destination among the eight regions in KAMA's statistics. The eight regions are Africa, Asia, Central and South America, Eastern Europe (including Russia), North America, the Pacific, Western Europe and the Middle East.
Over the same period, the value of the country's automotive exports to Eastern Europe increased by more than 20 times to come in at about $4.79 billion. The value of the country's car exports to the region in 2001 was $224.8 million.
By country, Russia was the largest importer of Korean cars in the region followed by the Ukraine. Last year, Russia imported more than 255,000 vehicles, accounting for 57 percent of Korean firms' exports to the region. The Ukraine imported about 68,700 vehicles, accounting for 15.3 percent of Eastern Europe's imports.
In comparison to 2001, the number of vehicles shipped to Russia and the Ukraine rose by 459 percent and 569 percent, respectively.
KAMA attributed the skyrocketing imports in Eastern Europe to the expansion of their automotive markets, brought on by the rapid economic growth of the region.
After Eastern Europe, exports to Africa rose by the highest margin, followed by the Middle East and Central and South American countries. Exports to Africa and the Middle East rose by 457 percent and 390 percent, respectively.
In Central and South American countries, Korean car imports rose by 252 percent.
Although North America has maintained its position as the largest importer of Korean cars, its proportion has gone down, from 46 percent in 2001 to 29.3 percent last year. The second largest export destination for local carmakers is Western Europe, accounting for 19.3 percent of the country's total automobile exports last year.
From 2001 to 2007, exports to North America and Western Europe increased by 20 percent and 28.7 percent, respectively.
By Choi He-suk
(cheesuk@heraldm.com)
2008.04.04

Summary>
Although North America has maintained its position as the largest importer of Korean cars, its proportion has gone down, from 46 percent in 2001 to 29.3 percent last year. The second largest export destination for local carmakers is Western Europe, accounting for 19.3 percent of the country's total automobile exports last year.
With the increase, Eastern European nations have become the country's third-largest automotive export destination, accounting for 15.7 percent of last year's car exports. In 2001, automotive exports to Eastern European countries only accounted for 2.1 percent of the total.
After Eastern Europe, exports to Africa rose by the highest margin, followed by the Middle East and Central and South American countries. Exports to Africa and the Middle East rose by 457 percent and 390 percent, respectively.
Opinion>
As the North America is stagnant and the Third World Countries’ economy grows, Korean car makers need to take part in the market. One thing that they must keep in mind is they should respect the countries environment such as economic structure, climate, culture, law, average earnings per capita, natural resources, etc
Let me take an example. If Korean car makers decide Russia as a target market, they can reduce cost and price by not installing air conditioner. And they can invest the cost for air conditioner to develop heating system in car to give Russian customer more satisfaction. On the contrary, they can sell cars uninstalled heater.
If they take economy into account, they will concentrate on selling small cars. Because the Third World countries have pyramid economic structure and the average earnings per capita is low, the car makers will concentrate on selling low price cars.
Third, natural resources. The Third world countries have abundant natural resources and wide land. So, they might need cars that are strong and powerful such as SUV without worrying about oil price.
I focused on product, but if set the prices, places and the ways to promote by respecting such as economic structure, climate, culture, law, average earnings per capita, natural resources, etc, the Korean car makers will have predominance in the market.

20600613 Jeon, Hyejin