Korean Coffee Market

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Summary-

What coffee retailer do you think about when we say "coffee." Many people say Starbucks. However Korean coffee retailers are becoming competent with US coffee brands to bring Korea's coffee market to their side. Coffee retailers are pursuing to bring different experience and stories to their coffee brand.
The US Coffee retailers opened the market of coffee to Korea, widening their market. Competitors emerged, particularly domestic player such as Holly's, Angel-in-Us, and Tom N Toms. These retailers see that the market has great potential to grow because of conversion to premium espressos from instant coffee. Coffee retailers also see their business growing with the breakfast niche market.
Hollys, Korean specialty take-out coffee reatiler, promotes its homegrown brand. It strives to understand consumer neds and develop products along with the trends that are changing rapidly. Angel-in-Us provides high quality coffee and diverse drinks. Its location in commercial area, culture-related marketing,a nd story-telling marketing provides creatie experiences and promotes the brand's angel figure. These Korean coffee retailers are growing out to become international brands as they launch their first international chain.
This does not mean that all the people are changing their coffee taste from Starbucks to the new Korean competitors. Korean brand are striving through to promote their brand image.

My Opinion-

Starbucks has been the market leader for the coffee industry all over the world. As it entered the Korean market, it became a big hit and had brought the Korean's to change their lifestyles. Starbucks provide the consumers a new experience. Through this role model, Korea's coffee market started to grow with recognizable Korean coffee retailer such as Holly's and Angel-in-Us. These coffee retailers don't have such a strong image like Starbucks, but it is growing as the market open up for more potentials, as people are moving from instant coffee to premium espressos. The Korean economy has grown so that people look for more than jus a coffee but an experiene and comfortable atmosphere.
While the Korean coffee retailers start moving into the international market, it is important that it enhances its brand image that signifies its quality that is served through their coffee. The market itself have great potential to grow looking for "premium brands."

Entry #15
20600770
Source: The Korea Herald, Friday, June 13, 2008
"Coffee retailers go head-to-head with global brands"

Small businesses say no to a dull office

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From The Sunday Times / June 8, 2008

Summary

AN electronic dance mat sits in the centre of the office at youth fitness firm Shokk. The mat - on which employees are encouraged to practise their dance moves on a daily basis - is just one of the many unusual ways in which the company uses its office space to inspire its staff.

Managing director Kieran Murphy believes the company’s dynamic workspace relates directly to its creative output.

As a result, employees are not limited to honing their dance skills; they are also actively encouraged to use skateboards to get round the office and to relax by flying remote-control planes above their desks.

The walls of the company’s 4,000 sq ft office in Newbury, Berkshire, are covered floor to ceiling with whiteboards on which staffs are encouraged to scribble their thoughts. Exony’s co-founder, Rex Dorricott, came up with the unique design after witnessing how a whiteboard in his own home encouraged his children to work on creating something visual together.

Opinion

What was the main key for the success of Apple? It was definitely its unique design, I think. Then, how did they make that kind of whole different thing which had never been? That is the ‘Creativity’.

There are lots of marketing strategies that help the selling product, but not every item can be the star product. For achieving this goal ‘Creativity’ is critical. Therefore, more and more companies try to make employees think differently and make something special. As the article mentioned, the innovation for the office can make huge differences. According to psychologist Tom Stewart, the average person often experiences creativity or inspiration at unusual moments.

Having a defined kitchen of lounge area can be beneficial to staffs when they have spare time. They can use the time actively inside of the office, and through this, communications between the employees inspire each other and be creative. Unique design enables staff to come up with great products.

Student ID # 20500018

Entry # 15

Hyundai Asan shifts focus to construction

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Summary
Hyundai Asan expects to expand of its domestic construction business despite of whole economic slump. This time, Hyundai Asan has a big image through exclusive tour programs to Geumgang Mountain in generally. However, it has a risk because it was affected relations between South and North Korea. So they select construction business to avoid this risk, and its size of business has been increasing steadily. At last, it grow into similar level with North Korea tour programs.
They also expect that it will be the main business for Hyundai Asan, in the concrete it will be charge 45% of the total.
They were 135th ranking in construction contract in South Korea, however they hope to rise up to 110th.

Opinion
Hyundai is one of the biggest groups in Korea and diversification like Samsung, LG. Hyundai structure business can grow depending on restoration business in 1950s. And it was the first group which broke into overseas expansion.
Hyundai changed their main business recently from programs related North Korea such as Geumgang tour, and gaeseong to domestic contracture.
I thought it had both good and bad point for success factors. To tell the truth, many Koreans still have prejudice or worries against North Korea, and they have expectation that they can come and go directly at once.
They plan to build its own brand to enter apartment business. Above all, it needs to strength its image as superior Structure Company. I think LG is the most successful company and Hyndai Asan has to make the high level and luxury life imagination. And it has to reinforce their business by selecting and concentration.
# 20300194- Entry 14
(Ref: Koreaherald/ by Kim Yoon-mi / June 06, 2008 )

Wal-Mart’s new merchandising focus

Wal-Mart’s new merchandising focus

Article
http://www.newsweek.com/id/140253/page/1

Summary
Wal-mart has improved merchandise, customer service showed up in better-than expected sales. After the new merchandising of Wal-mart, much more customers opened their wallets and spent their government check a lot at wal-mart. Wal-mart’s company officer thought that its faster, cleaner and friendlier approach to merchandising is resonating with shoppers in this challenging economy. They also started “save money, live better” campaign begun a year ago. That meant an emphasis on low prices while focusing on a more edited selection in an attractive selling environment.
As we could guess from that, wal-mart are targeting on the people who carefully look for low price products. From that, wal-mart reported a 3.9 percent increase in same store sales which was much higher than the analysts’ survey. Wal-mart is also focusing on offering the lowest prices on such big brands. As they started new merchandising, they even care where they display the products emphasizing major brands. They also try to improve their services as they train their employees.
In my opinion, wal-mart’s new merchandising focus has increasing their sales. It was the appropriate to change their marketing. As they segment people who strongly care about the price when they purchase something, they focus on the low price as their marketing strategy. Positioning that, they tried many ways to appeal those kinds of people and finally succeeded. These days, segmentation and position are two of the important strategies and those are actually very required.

20700011 entry#14

LG, Samsung Ranked in World’s Most Respected

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Summary

The Korean representative companies, LG Electroics and Samsung Electronics are chosen in the rating of World's most respected firms in Forbes Magzine. Forbes has done this research since 2006 and Toyota got the 1st place, followed by Google, IKEA, Johnson & Johnson, and so on.

They listed 200 firms and LGE and Samsung Electronics ranked 163(69.52) and 196(68.33). Top-ranker companies got over 80 point and the average of world was 64.2. This study can be obtained by only 60,000 domestic respondents. Especially, Samsung declines considerably in immorality of ownership.

Opinion

As mentioned in the summary, Samsung and LG are leading Korean economy and their role is significant because their group has a lot of effects on their cooperation firms. For example, Kumi, located in Kyungbuk, is the city of LG, and almost all the products are from the LG. Besides this, Samsung and LG are of importance.

However, according to the study, they still mark low score comparing world class company. Samsung is the biggest semi-conductor marker and LG is one of the largest manufacturer of display(LCD, PDP). Why do they stay that level? Can you convince it?

In my opinion, their company culture can be the problems. They relate to many other less powerful companies. They never think of the other view and thought and insist only their things. How do any companies respect them? Moreover, they can grow with help of the power of political authority even now. I think those two companies' proper place is below 100 and actually their financial scale is near it. In case of Samsung, ownership scandal is problematic so their recovery of morality is the only way to respect from other companies.

Original Data(Forbes) : Reputation Institute Global 200

#20300576 - Entry #13
(Ref. : Koreatimes, 6/6, By Jane Han Staff Reporter)

Wal-Mart - Pharmacy!

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Summary

Wal Mart is no longer a retailing store for food only! Just like how Wal-Mart entered the food industry, it is taking its first step toward the pharmaceutical and health industry. Wal-Mart's CEO wants to provide the community with affordable, accessible, and efficient pharmacy, such as the $4 generic-drug program. Wal-Mart's slogan "Save Money, Live Better," is making the revenues to rise. As inflation is going on from food to all that can be bought in stores, many people rely on the affordable items, which can be found in Wal-Mart.

Already Wal-Mart's drug and health-care ventures are making a great profit. While the number of people concerned about health are increasing, Wal-Mart looks forward for a high rise of sales in this industry. Wal-mart challenges its competitors with "unbeatable prices," with its $4 drug program. Wal-Mart's competitors Target and Price Costco started a similar program, and now they all provide this service to their customer. Wal-Mart is not loosing any profits from this $4 drug. They are doing compared to the brand drugs it sells. Wal-Mart is providing low cost offerings to women's prescription, such as hormones deficiency, menopause, and breast cancer. A strategy to gain its women customers.

My Opinion

It is amazing to see that Wal-Mart is diving into another industry. As we all know, whatever Wal-Mart starts, it becomes the giant of that industry. With its slogan of "Everyday low price," and "Save Money, Live Better," people find it welcoming to see what they are ready to offer.

However, drug and health care industry is a different story. Drugs aren't any food or furniture or clothing that people buy easily. Drugs are for the sick and for cures. It is what we obtain to become healthy again. Wal-mart is providing a $4 generic drug program. Some may find this welcoming, $4 offer is very afforadble compared to other brand drugs like Tylenol or Advil. But its important that people do not look down on the quality because of its low price. Once people degrade the value of the drug offered in Wal-mart, they will lose trust.

Because drug and health-care products are important to gain the trust of the obtainer, they need to promote it well. Wal-Mart needs to portray to its consumer that not only does Wal-mart provide cheap drugs but also worthy and qualified products for the consumer's health and illnesses.

I think Wal-Mart did a great job starting a low cost offering for the women's. When we think about it, the majority of the people that purchases these drugs will be women. Once women gain the trust with Wal-Mart's offering in this industry, people will rely on it and become their loyal customers. I look forward to see how this new industry Wal-Mart jumped into will end with, and how BIG Wal-Mart can get in this sensitively dealt industry.

Entry #14
20600770

'Sex and the City' Gives Urbanites NY State of Mind

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Summary

In Korea, western style dining has become a popular way of socializing, relaxing and dining in style. Because trendy American shows that have aired in Korea, introduced local consumers to new ways of spending money and enjoying life. It is not just food style; the fashion business is one of the biggest winners of the latest American show boom here. The number of online shopping malls, which work as purchase agents buying foreign-branded clothes and accessories unavailable in domestic stores, has soared from less than 10 in 2004 to almost 500 this year, according to market figures. Luxury shoe brands, such as Manolo Blahnik and Jimmy Choo, which were once unfamiliar to Korean shoppers, also got a good sales push from television exposure. Aside from the trendy show, Wentworth Miller starring in Fox's hit series ``Prison Break'' also demonstrated the business impact of American shows. Namyang Dairy Products says its sales of bottled French Cafe went up 20 to 30 percent following a Miller-led commercial campaign. In other words, Hollywood power is still going strong here

My opinion
Nowadays, Korean life style is changing a lot. Because of popular American TV series, many young ladies change their life style like the actress. They take after not only fancy accessories that appeared on TV, but also the character’s life style. Of course, life style between Korea and the USA is still different. However, it is getting closer, and the power which make closer is that kind of cultural contents. I think marketers get synergy if they mix the PPL, I introduced last week, with cultural contests. Above all, selling cultural contents are more powerful than selling just products. Korea can produce the best products; in fact lots of products are the first such as semiconductor and shipbuilding through high economic growth for last few decades. However we still have wide gap in cultural contents. Of course, we have made Korean wave among Asian country. But it is not power of marketing; it has relied on famous stars. We need to build up cultural power in order to spread our culture to all around world. As we don’t have natural recourses, therefore, what we develop lots of cultural contents is a way to alive completive world market

#20400251 #Entry14

Intel to release low-cost laptop in the West

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March 20, 2008 / Times Online / Jonathan Richards

Summary

Intel, the world's largest chip-maker, has said it will let Western consumers buy a low-cost laptop originally designed for poor children in the developing world.
The US technology giant said it would team up with PC makers to release a new version of its Classmate PC, which sells in developing countries for $285 (£144), in the US and Europe - possibly by Christmas.

Intel's new laptop, which has been trialled at schools in Texas, Oregon, and California, will join a string of low-cost computers to have entered Western markets in the past year. Asus's Eee PC, which retails for £215 in the UK, has been popular since going on sale at the end of last year, while Elonex, a British firm, last month unveiled a new cheap laptop called the One, which will cost just £99.

The main reason such machines are so cheap is that they run on open-source software such as Linux, meaning manufacturers don't have to pay licence fees to companies such as Microsoft. They also typically have smaller screens, run on older chips, and dispense with certain features, such as CD drives.

Opinion

Having a low-cost competency is important. If the product is not something luxury, it becomes more reasonable. Just 50 years ago, people who have computer were very little. However, most of people in US or Europe have their own computer and it is related with them very tightly. At the same time, developing countries like Africa, India have been having difficult time buying a computer because of its high cost. To take away these kinds of problems, Intel release low-cost laptop.

There is a report said customers consider about the social responsibility that a company does when they invest or buy the products. For example, some people spend more money for the products which are more environmental friendly. According to the article, Intel wanted to make cheap laptop because they want to make the poor buy computer easily. This can make the brand value high, and then it brings the increase of selling.

Student ID # 20500018

Entry # 14

Clothes giant plans female only store in Saudi Arabia

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David Robertson in Sharm el Sheikh / The Times /May 23, 2008

© Copyright 2008 Times Newspapers Ltd

Summary

H&M, the Swedish retailer, will open the first women-only department store in Saudi Arabia as part of moves to bring more women into the country’s workforce.

The store, which will be H&M’s first in the country, will be staffed entirely by women in what is understood to be a landmark concession by the Saudi Government. Saudi Arabia has strict laws that prohibit the public interaction of women with men other than their husbands. These extend to restrictions on working and driving. As the store will be staffed by women, the Government has insisted that only females will be able to shop there.

Small female-run stores already exist in Saudi Arabia but H&M, otherwise known as Hennes & Mauritz, will be the first major retail outlet to be staffed by women. It will open in a shopping mall in Riyadh this year and will be operated by the Alshaya Group, a retail company based in Kuwait.

Opinion

H&M is known for their cheap prices and good quality of their clothes, shoes etc. This brand is one of major SPA (specialty retailer of private label apparel) in the clothing industry. There are it could be really big challenge for people in Saudi Arabia, especially the government to accept this kind of big shops. Also, making all employees who is going to woke for H&M are women. H&M is embarking on an innovative development to open a store with women working in it. It shows that they are doing their business by understanding the local. They have to do it as a part of their social responsibility to women in Saudi Arabia.

Localization marketing is good for global companies like McDonald’s, Starbucks and so on. Because this kind of brand can be defended by people who do not want giant group in their country. Having good reputations and sound relationship with public and governments can decrease the unwelcome from them.

Student ID # 20500018

Entry # 13

Korea fashion industry stands at crossroads

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Summary
Korea’s textile and fashion was important role in economic growth during 1970 and 80s, however it has limitation. It didn’t have production of quality and design, so it lost market in overseas as Europe and America because it appeared competition such as India and China that has cheaper labor.
Recently, Korea market has confidence because it has tried to have technology develop and market trends and creative designs. However, experts say that it’s not enough so Korean companies should try to strength their technology, quality, and design rather than low cost to win against Asian competitors. Enhancing brand values and strengthening marketing strategies is also important factor to Korean market. But many companies still didn’t recognize that.
The market has undergone big changes and many consumers pursue unique style and value now. There are two characters in Korean market: primarily domestically produced market and high level designer brands.
Korean customers are affected by imported brand names and higher prices with superior quality because they want to show their social status and wealth through wearing luxury brands.

Opinion
The Korean fiber market has been important role to draw economic development for last 20 years. However it focused only low price through cheap labor so it couldn’t read trend and fail to meet the situation, I think it was the biggest mistake for losing market.
Korean cloth business get bigger and rapidly grower both online and offline.

To win the competitors such as china, we should develop new high-tech material. Because we can’t win competitors as low prices, so we focus on quality and design. Korea national name value is also important role for it. In fact our products are treated low value even though it has good quality because of lack of name value, I think.
For example, world people think Japan’s products are excellent and select them without hesitation. Like this, Korean fiber market strength its brand image and notify our excellent product. It is good way to hold international events regularly to hold spotlight.
Above all, local companies have to recognize importance about marketing strategy for their products. To success it, they can cooperate with local communities in various ways. It can give benefit to local company and community at once. And marketing strategy need to be more specific development through professional management mind.
# 20300194 - Entry 13
(Ref: Koreaherald / by Cho chun-un (christory@heraldm.com) / May 30, 2008

http://www.koreatimes.co.kr/www/news/biz/2008/05/123_24982.html

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Summary

The new CEO of Woori Financial Holding, Lee Pal-seung CEO of Seoul Philharmonic Orchestra, has promised to accelerate privatization and enhance its non-banking sector. At a press conference, he clearly mentioned the first priority of speeding up the privatization of the group and increasing its competitiveness. Also, he suggested it be a worldwide bank and M&A is a new alternative in achieving that goal. He knew its weakness of non-banking sector and will try to boosting securities and insurance.
He said it can make it through a unity between subsidiaries and he can help them derive best effiency. Moreover, he graduated Korea University where President Lee also did. He began with a banker at Hanil Bank and was at Woori Investment & Securities and then moved to the Seoul Philharmonic Orchestra in 2005.

Opinion

Woori Bank is the third biggest financial group(behind KB and Shinhan) in the market value. A heavy mission is given to the new CEO Lee Pal-seung due to complicated economic situation. We can summarize two strategies in his comment.
The first one is the privatization. In fact, Woori Financial Holdings is the sum of previous various banks and securities; for example Hanil Bank, Hanbit Bank, and LG Investment Securities. Therefore, the CEO should express their subsidaries' merits with the unity of them. But M&A can harm the unity so he will react this very carefully because M&A costs considerably and the effect on firm is very excessive.
And the second thing, non-banking sector, is very good because 자통법(Captial Market Integration Law) is executed in Feb 2009. Then, the Korean JP Morgan will be born and many financail group is preparing for this situation. Woori's Commercial Bank is very strong(1st place in Korea) so it has an enviornment expanding non-banking area.
Woori is very large and it can be bigger and bigger with CEO's sound business. We will notify the new CEO of Woori react this market situation.

(Source : KRX)

#20300576 - Entry 12
(Source: Koreatimes, By Kim Jae-kyoung(Staff Reporter), 2008/05/29)

At best buy, Marketing goes Micro

20700011 entry#13

At best buy, Marketing goes Micro

Article

http://www.businessweek.com/magazine/content/08_21/b4085052698079.htm?chan=innovation_branding_top+stories

In this article, best buy segments their customers specifically. Best buy is the biggest electronic company in U.S.A. and they sell all kinds of electronic products. They are targeting on sailors who are on the boat for their job. Best buy thought they could sell their products to them because sailors are willing to buy products like ipod or laptop while they are in the other countries. purchasing the stuff like laptop or ipot while they are on abroad has big advantage for them because of the reasonable price without the tax. targeting on specific group of people could be a kind of big risk for the company but they decided to segment through a big chellenge.

In my opinion, segmentaion is a good marketing stratdgy even though it has a big risk for the company. They could provide various products of one specific category for the customers who are interested in that category. customers will remeber that company as a specialist which sells that product. In these days, it is not smart to sell all kinds of products in one mall. They better focus on one kind of product and segment their customers specifically.

20700011 entry#13

Authentic Relationship -

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Summary
Today, market is full of products. Consumers face the over abundancy of products in all market and services. So many executives ask, "how to differentiate themselves with others." Today, it is important to create authentic relationship with customers.
Today, many companies use different strategy to do marketing for their products, from media to Internet advertising. The more advertisement people see, many loose their trust in the product/service or company itself. Apporaching customers became easier, however to gain their trust is not as easy. 21st century copany should work for authenticity, that can connect the firm and the consumers.
Before advertising nd sending our products, companies need to look back and see who theircustomers are, at te time. And think in a customers' point of view, if the product has any connection with them. Customers seek for connection and relationship.

My Opinion
I definitely agree that it is very important for a company to create true relationship with its customers. When we look back at our markets today, we have great abundancy of all products and services all over the world. If not available in one country, we can bring any product or service from other countries very easily. People today aren't seeking for the product and service itself, but for the value and connection it has with the company.
Personal service is very important. I, as a customer myself look for places where I feel comfortable and familiar with. When entering a service company, I see if I am recognized. Recognition plays a very important role, when the customer himself/herself feels that they are a loyal customer. For a product serving company, it is important for the company to bring the right products to the right customers.
Products and services are limited, however it creates great value when the have surpassed the expectation the consumer holds.
As we have learned in class, a loyal customer is better than a few new customer. So creating relationship with the right customers should be considered a great marketing strategy, especially in a market like we have today.

Entry #13
20600770
(Source: Business Week "How to Stand Out? Try Authenticity" May 28, 2008

Product Advertisements in TV Dramas Go Subtle

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(Reference: The Korea Times/By Jane HanStaff Reporter /05-29-2008)
Summary
BMW sedan and Infiniti coupe sale have increased because they have attracted customer’s attention through television drama. Nowadays, however, that kind of advertisements not only includes luxury goods like car but also is focusing on other small goods. In recently ended drama “On Air,” the main actor used espresso coffee machine. Since it exposures on TV frequently, the coffee machine sales jumped about 20 percent. And Daewoo Lucoms’ computer products have also increased their sale through TV drama. Among PPL advertisement, mobile phone is the most popular item. In 2004, Pantench & Curitel mobile phone sold their products more than 50,000 sets a month through SBS drama “Lovers in Pairs” And then their competitor such as LG and Samsung have used PPL like P&C. According to this article, television shows and dramas get about 40 percent of their production costs through PPL advertisement.
My Opinion
Nowadays, we live around lots of advertisement’s exposures. There are not only direct advertisements through TV and newspaper, but also indirect advertisement like PPL - we have seen in this article. Actually I am interested in automobile, but since I saw BMW car on TV drama “All in” as PPL, I like BMW sedan. And Samsung showed their products on the movie “Spider man” and “Matrix” Therefore, I think that they could enhance their value of brand.
I think PPL is Win-Win strategy because it is good for producer and advertiser. Producers are be able to make better quality film or drama through that kind of investment, and advertiser can inform their products directly or indirectly. Therefore, they can get many positive effects for their products through attractive characters on TV or a movie. However, indiscreet PPL advertisements lead to negative effects for their goods and programs. Many people blamed the movie which Jun ji hyeon appeared because they showed too many products. Therefore, I think PPL has pros and cons but if customers recognize that PPL is direct advertisement due to a rash use, PPL’s merit will be offset and it will be returned as drawback.

#20400251 Entry #13

Disney- visual marketing

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Summary
Celebrating Disneyland's 50th anniversary, they launched a online program called Virtual Magic Kingdom. In this website, Disneyland fans can experience the activities in Disney virtually, create avatars and play games to collect points and more. These points collegected through various online activities, can be actually used in real life. Disney boasted that there were million avatars created from this program itself. Many fans used this site to make friends, chat, and participate in programs such as the company's resort in California and Florida.

However, Disney announced that they will discontinue the use of this website. Because this website was just for the celebration of the 50th anniversary. It was just prolonged because of the high interest from the people. ManyDisney fans are against this act. 20,000 petitions were written and dozen people stood in front of Disney to protest. However, Diseny continues to pursue their decision and promote other programs that are offered with monthly fees.

My Opinion
I believe Virtual Magic Kingdom was a great program that Disney promoted. It was opened at the right time and the right place. Many people had access to Disneyland all over the world, and 50th anniversary had great meaning to the company and their fans.
However, Disney is trying to stop this online program because of its expenses and support of other programs available with a monthly fee. I believe that this will hurt Disney's image and many of its fans' wants and loyalty.
VMK is a free program, used by hundred and thousands of people all over the world. This is not a one on one relationship with Disney and the fan but a whole community activity. Disney fans' meet one another through online games and interact with one other. I believe that VMK is a great promotion to Disney. Rather than discontinuing this program that is so loved by many people, I believe that Disney should open it.
20,000 petition were signed against of this discontinuation. I believe that Disney has the obligation to fulfill world-wide consumers' want by charging a fee for this program and continuing it. As read in the article, programs were charged $9-10 dollars. The value of the VMK will determine the right price for the service provided. I believe that people with strong attachment to this program will pay the price for such experience and activity. This program is a great marketing that will keep many consumers attached to Disney. Disney isn't a place where people can go often or anytime. People need to invest time and money to enjoy themselves one day at Disneyland. The website keeps loyal customers, and also a promotion to the loyal customers with their points that can be actually used in real life.

I believe its a great program for the LOYAL consumers of Disneyland.
20600770 Entry #12

More Digital Ads Are Produced Offshore

More Digital Ads Are Produced Offshore

Article

http://online.wsj.com/public/article/SB121140392514311893.html?mod=2_1567_leftbox

summary

More and more companies try to give their works like digital advertisement to little-known company in developing countries.
The benifits of this outsourcing trend include companies has created a digital promotion company called Prodigious which works with a stable of offshore providers. Most companies had hard time to find labors to feel their needs in USA. But they are finding their needs from the developing contries like Costa Rica. Because their time xones are compatible with those in the USA and they have high concentrations of English speaker and work experiences.

My opinion
outsourcing is one of good challenges for these days' companys. they don't have to spent too much money for the same work if they outsource their works to the developing countries. they could fill their needs from finding the people who just fit for their work. The market is getting bigger and bigger as transportaions and technologies become higher. Outsourcing companys' digital ads to developing company is one of the solution to reduce the cost of the marketing products because the companies can provide their goods to customers at more reasonable price.


20700011 entry#12

Samsung to showcase products ahead of Beijing Olympics

Article(By Korea Herald/21 May 2008)
Aiming to solidify its image as a premium brand in China, Samsung Electronics Co. plans to demonstrate the latest of its cutting-edge products at a high-tech exhibition in Beijing.
The company said yesterday that it is participating in the China Beijing International High-Tech Expo 2008, an electronics industry fair running from today to Sunday.
Occupying 575 square meters of display space, the Korean company will introduce to Chinese customers a range of its products from a 70-inch LED-backlit LCD TV, TV sets with the most advanced display technology of organic light-emitting diodes.
Also on display are the world's smallest color laser printer which Samsung unveiled last month, and its Blu-ray players and full high-definition camcorders and cameras.
Coming during the run-up to the Olympic Games in August, the exhibition is seen as an opportunity to raise the profile of Samsung, one of the only 12 worldwide Olympic partners and the official sponsor for the games' mobile communication system.
Samsung will also bring to the tech fair a series of mobile phones specially developed and designed for the games as well as its global strategic model - the Soul.
By Lee Sun-young
(milaya@heraldm.com)

Summary
Samsung is going to participate in Beijing International High-Tech Expo 2008 so as to enhance their premium brand image in China. And they are going to introduce the best display technology such as 70-inch LED backlit LCD TV. And they are also exhibiting color laser printer, which is the smallest in the world, Blu-Ray, camcorder and digital camera.
My Opinion
A few months ago, Samsung has been hit hard by unethical behavior in Korea. Even though they are still suffering from lots of tough situation, for example Chairman Lee has resigned from CEO; they are overcoming well as the best globalization conglomerate in Korea. They have recorded the best selling and have been able to outsmart Sony that is their competitor.
Where is Samsung’s power from? It is not that they are promoted the best global giant through the good products. I think what they have supported many international exhibits as part of brand marketing was important. When I have been to Eastern Europe, many Europeans don’t know Korea but know Samsung. I realized Samsung’s position as global company. Thus, the value of brand is beyond a nation. Therefore, I think other Korean firm, which works just in the domestic, should enhance their value of brand and go forward global.
# 20400251 Entry #12

Banks sell Special Products Aimed at Super Riches Only

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Summary
Recentrly, banks are competitively launching investment products which target to super rich competitorly by product named PB-private banking. For example, Deutshce Investment Trust Management succeed to draw attention of wine dilettanate people who lived in Seoul through selling the premium wines produced in France’s Bordeaux.Banks sell these fund to only PB customer because it is too complicated for ordinary coustomer to understand. They also require subscrivers to invest at least 10 million won.Moreover some overseas equity funds are initially designed for PB customers. For example, there was KB Vietnam Focus fund. PB centers introduce super rich customers to private equity funds which composed of small sized investors.

Opinion
In korea, there are so many products which target to only super rich customers in various areas from orninary products to finance service. It is getting bigger and more competitively. And it’s not critical matter any more. Markets for super rich weren’t damaged even during the ecomomic slump and it was certain attractive factor. Most of all, there are differences about purchase power between ordinary and super rich customers, and it's difficult factor to ingnore. In addition, it can make high level image. We can see those around us in common.

However it has negative image about Pb marketing because people feel relatively deprivation and it is deficit in present marktet situation. In bank there is VIP room and it is compared with general customer who wait a long time.It is not sufficient only interest rate competition among bank competitions, so it is expanding its competition to culture marketing.So it has to strenghten their brand image and offer product differentiation to maintain its customer in long-term point of view. And it needs to develop special products and provide service through keeping quality talet and pursuit customer satisfacton.

#20300194 -Entry 12
(Reference: The Korea Times / by Yoon Ja-young, staff Reporter / 05-19-2008 19: 13)

Pens that provide the write accessory

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Lucia van der Post / The Times /May 23, 2008 © Copyright 2008 Times Newspapers Ltd


Summary


What is fascinating is that pens have once again become desirable objects that tell the world as much about your taste and style as the watch you wear or the handbag you carry. As Colin McClymont, managing director of The Pen Shop, puts it: “I fought long and hard to take writing instruments out of the stationery cupboard and put them in to the same category as watches and jewellery - in other words to turn them into fashion accessories.”

Of course, turning a hitherto mainly masculine large, black and gold object into a fashion accessory doesn't happen by chance. The marketing guys have worked hard. First, they brought out smaller versions to suit more dainty hands, so that whereas, not that long ago, 75 per cent of pens were sold to men, today the figure is about 50-50. They also consulted trend-predictors to make sure that they knew the fashion colours of the season and then brought out spring and autumn collections.

Then they tried to ally their pens with jewellery - Montblanc did it most spectacularly by encrusting some of their pens with jewels and by photographing them with the opera singer Katherine Jenkins, wearing fabulous Montblanc jewellery.

Opinion

There is a famous phrase, 'Do not judge the book by its cover', but most of people in this world know that it is so hard to do. I have a friend who usually know someone's background and even personality by watching his or her possessions like watch, clothes or bags they are wearing. Because it can be an way to assume someone's position in the society.

From this reason, people seem to buy luxury things more and more for present themselves as a high-level person or rich. Nevertheless, it has been hard for pen to be a luxury symbol; it is just black and gold object for writing down something. The marketing guys have worked hard. They made a smaller version of it to suit people's hade easier and searched the trend of each season. Also, they made it something pretty and unique by adding jewelers so it definitely worked for the women.


Student ID # 20500018
Entrty # 12

Mobile Phones Become Interchangeable Between Carriers

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Summary

Third-generation phone users of SKT and KTF can change the firms by July. The Korea Communications Commission(통신위원회) let the providers to release their USIM (Universal Subscriber Identity Module) chips a small computer chip inside cell phones. But LG Telecom is excluded from this service because of the problem of system. The USIM unlock will help customers to have more than one cell phones with a single USIM card. It will also make easy the trade of second handsets.
However, it is likely to break profits of the mobile firms, who have imposed a heavy entrance fee on new members. And KCC thought the consumers can buy the phone through a variety of ways.
KCC decided this since it is a global trend and our country can't keep it away. Therefore, the five directors of KCC agreed with this with unanimous approval.

Opinion

There are 43million Korean mobile members. How large the market scale is! I will write down in a view of KTF because KTF’s market share is about 30% so it is necessary to increase it through aggressive marketing strategies.
First, KTF should emphasize their leading company of 3rd generation mobile company as it started early than SKT did. It also should announce their safety and various functions as first firm.
In addition, KT is its supporter; moreover, it is planed it will merge with KT. Then, their market power can overcome SKT's. Through these background(wire communication market:KT, mobie market : KTF), they can maximize their profit. Above all, they must change the image of public enterprise at firtst by improving their business structure especially in KT.
KTF can obtain more market share and keep 1st place in 3rd generation market though the former two strategies.

Entry 11 - #20300576
(Ref. The Korean Times, 05-22-2008, By Cho Jin-seo Staff Reporter)