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