LG to invest W100b for product design

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By Ko Kyoung-tae Korea Herald/07 May 2008
Summary
LG is going to invest 100milion won for design in this year. It has increased by 10bilion won each year since 2006, and they also plan to hire more designer this year to 700 in order to strengthen their design power. The decision was made at the LG Design Committee, which was established last year by Chairman Koo Bon-moo. Because he emphasizes that design is the important to reach competitive advantage in global market beyond quantity, price and technology. They have launched ‘Super designer program’, which give the best designer in the company, so that they reinforce design-first management philosophy. And they also diversify their design staff so as to meet global requirements.

My opinion
Nowadays, customers aren’t satisfied by just quality and price, particularly in developed country. Of course, if it is prominent high quality product, it could have monopolistic status. However, if their competitors have similar technology, they need to concentrate on other factor. I think the important factor is design. For example, LG and Samsung have similar technology, but what is the factor to make difference each other? Is it price? No, because they all produce a low price mobile phone, and it can’t be the best product. I think it probably depends on design. There are some cases of innovation of design in LG. So far LG Electronics has produced ‘Chocolate’; it concentrates on simple design rather than function, ‘Shine’, it used stainless steel instead of plastic, and ‘Prada’, it is made in combination with luxury brand.. Therefore, I think striking design leads to a success and increased demand.
#20400251 Entry#10

Apple's miracle again!

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Summary
Apple did it once again. After iPhone, Steve Job is continuously working with technology to create a wireless broadband and touch-sensitive interfaces with built it sensors. Many inventions are in process for a convenient life style, such as moving documents fro iPhone to the PC. Many companies are joined with Apple, (partnership) and creating more innovative products. Apple will launch iPhone on June 6 at San Francisco. This new product wil have faster wireless connection, digital camera, media player, and more! As touch-sensitive interface will help users be comfortable using it for it is like the computer touchpad. Apple made patents for the future invention of gizmos, deeply concentrating into the latest technology. In the future, iPhone users will be able to link their phones with the computer very easily, just by a touch. Apple and its various partnerships are partially showing their innovative products. We are await for the big coming of INNOVATIONS by Apple once again.

My Opinion
Wow! Apple is amazing. Apple has grown so much very rapidly. With the lead of Steve Jobs, Apple has hit the markets with innovative products. Their invention of iPod, iTunes, iPhone and more! However they didn't stop, they are continuing to create more innovative product, such as with iPhone even when their product are not even in the declining stage. The Apple products are booming!
As marketers, iPhone with touch-sensitivity will be a great product to introduce to the Apple fans. They can segmentize by age and income level to find their consumers. iPhone isn't such a cheap product, which is why more likely the businessmen and older people will attain this product. I believe its important to give iPhone a special advertisement due to its high price. This advertisement and new coming the product will be a chance for Apple to promote its other products as well. Apple is continuously bringing in new products, which hold the consumers and people's attention. I believe th is is why APPLE is BOOMING.

Entry #9 - 20600770

CF songs remain melody and image.

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Summary
‘생각대로T” is one of the most popular song. It has various version, for examples, old non-married woman, salesman, soldier version. Especially, it could have public population, because of power of Nurri gun who make parody and it spread widely through UCC.
It has some advantages. Repetition, simplicity, familiarity is attractive enough to appeal to people. In short time, people catch message through the song, and have a desire to buy it. Actually, it appeared in 1960s for the first time, and it gain popularity again recently. About 2000, TV advertisement couldn’t show its true character because it had focused on video factor too much. It appeared reflection about that, so creation songs come back to there. ‘Pomegranate song’ and ‘mango-song’ are the most popular songs in 2006.
Series song can not only reduce glut about commercial but increase recollection about that.

My opinion
I think this marketing strategy is very fresh and pleasant and it is enough to appeal to people.
Advertisements which use song about product can have strong image to customer for just 30 seconds. The Song can have message about product, and intention of company. It is much stronger power than we have ever thought about that. Above all, it is so easy and simple that people can sing along without difficulty. And it often comes across one’s mind unconsciously. The more song we heard, the stronger image about product will remain. As we know, brand image building is very important and difficult. The most important of purpose of advertisement is expansion of brand image.
I think this strategy is a good method of advertisement and it can deep into communication among customers. To approach to customer, it needs constantly fresh issues which can draw people’s interest, and it have to develop easy song with pleasant melody.
#20300194 -Entry 9

LG to Spend $100 Mil. to Promote TV

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Summary

LG Electronics, the third-biggest panel maker in the world(1st : Samsung, 2nd : Sony) decided it invested $100million of its annual marketing expense for strategic "Scarlet" TV and its promotional cost is increasingly rising.
Especially, its investment focused on European country and the goal of sales figure is also bigger than North America. So it prepared the large-scale campaign with a lot of well-known person including an actress Natassia Scarlet Malthe. It wants to raise its brand recognition through her because her ad copy offered no clue of LG.
LG expected the price of LCD TV will be very stable in the 2nd quarter but it worried about Sony’s aggressive price-cut.

Opinion

LG Electronics is a very good company in Korea and its technique is so excellent particularly in a LCD Panel and cell phone making industry. Its market share is high but it can’t impress the world market because it is not in the first place.
Its strategy is very desirable. First, the European market is still very potential as the market is very big and has a high purchase power. There are France, England, Germany, and Italy in Europe, and they are rich. The use of Malthe is also good because she is very famous. The US market get more saturated and more so that the sales goal in Europe is much more than that of US.
Second, it focused on its own image improvement. A variety of campaign can help LG to be the best friendly company in Europe and US. Its scarlet TV released in 80 countries all over the world and it adhered to the advanced production strategy. Therefore, LG can be the luxurious TV maker through these.
In conclusion, LG can make the sales figure of 10million sets in 2008 as well as it image upgrading.

#20300576 - Entry 8

Watch out for Category Killer!!

Watch out for Category Killer!!

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http://media.daum.net/digital/game/view.html?cateid=1051&newsid=20080430175119046&cp=ned=20080430175119046&cp=ned


In the article, “Category Killer opens your wallet.” Category Killer is the mart which has all kinds of products of one specific category. If the category is toy, they have various kinds of toys all over the mart. Recently, many kinds of Categories Killer marts have been showed up like toy, shoe and stationery. One of the biggest toy cdompany, Toys-R-Us made contact with Korea last year and the first Toys-R-Us store of Korea have opened in Gurodong. They made huge profits for 4 months in Korea.
In my opinion, The most important reason Category Killer gets much interest and makes huge profit is variety and price. They provide various products at the reasonable price. It’s easy to find a product they want because they put all kinds of products in one space. I think the most successful marketing strategy of category killer is an appropriate segmentation. They focus on small part of customers but they caught up their favor and interest clearly. People who have interest in toys would open their wallet even if they just drop by the mart for fun because they will find the product they like in the mart. Segmenting the customers for the product which I sell and figuring out what their interest is a very basic step and the most important step for marketing in these days.

20700011 entry 9

New Restaurant Growth Lifts Burger King Earnings

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Summary

Burger King Holdings Inc. said Thursday that strong same-store sales in each of its segments and new restaurant growth helped to boost profit 21 percent in its third fiscal quarter.

The Miami-based fast-food chain said net income rose to $41 million, or 30 cents per share, from $34 million, or 25 cents per share, last year. Revenue rose 10 percent to $594 million from $539 million last year.

''This quarter we delivered on our global growth strategies, with all segments contributing to top and bottom line expansion,'' said John Chidsey, chief executive officer. ''We leveraged our product pipeline and marketing initiatives around the world while creating a consistent and positive guest experience at our restaurants.''

In the quarter, Burger King continued its global expansion, including the opening of the first restaurant in Colombia and three franchised airport locations in China.

Opinion

In the last class, the prof.lee talked about his experience in Lotteria in 육거리. The fast-food market is getting bigger and it seems that it is keeping going.

There is a big global company, Macdonald's and BURGER KING is one of the big competitors. According to article, its new restaurant growth is boosting profit almost 20 percent. However, in my opinion, they are not the only one who has its own restaurant and get benefits from there. This means they need something unique that others don't have even they cannot catch up with.

Also, the company is planning to open of three franchised airport locations in China. In connection with the 2008 Olympics, they are expecting lots of people to come and have experience in the restaurant. This is their one of the strategies for expending the market and brand-recognition.

Student ID # 20500018
Entry # 9

Hyundai Kia supports BIE travel exhibition.

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Summary

Hyundai Kia Automotive Group, the country`s biggest carmaker, said yesterday that it will support a travel exhibition organized.

The BIE Travel Exhibition, currently being held in Milan since March for a six-week run, will visit a total of 14 cities around the world to introduce the history and the future of Expos. The event ends in 2011.Through the partnership with the BIE Travel Exhibition, Hyundai Kia expects to promote its brand value and products as it has obtained the right to use its logo at the exhibition, on website and in publications. The carmaker also plans to provide vehicles to influential figures visiting the event and display models during exhibitions. During the partnership signing ceremony between Hyundai Kia and BIE in Madrid on Thursday (local time), the Korean carmaker promised to offer 60,000 euros ($94,000) to help the organization transport exhibits. The ceremony was attended by Vincent Loscertales, secretary-general of the BIE, Nam Kwang-ho, president of Kia Motors Europe and Ahn Kun-hee, president of Hyundai Motor Europe.

My Opinion

Hyundai Kia is going to support a travel exhibition organized by the International Exhibition Bureau, the World Expo’s governing body. What would they get through this exhibition?
Hyundai Kia is the first market share automobile group in Korea, but how about overseas market? Last time we have already seen ‘Genesis’, which is their brand new car, as marketing case. We can derive some decisions from that case. Even though it is the best both the quality and the price in Korea, It looks like dumping in overseas market. Of course what enterprises provide as high quality and low price is the basic of basic. However, I think they can enhance the values of the brand except for just doing basic things. Low price strategy is no longer survived in competitive market. Therefore, they have to have proper strategy so as to enhance their brand value.
Enterprises should sell not only their product but also their culture and brand name. Accordingly, as long as they provide good image and product for this exhibition, they would enhance the value of their brand.
I think what they just advertise their product is a part of marketing. Therefore, they need to concentrate on their brand image. It will be real power of marketing.

#20400251 Entry# 9

Korea's New Deal

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Summary

Lee Myung Bak presented to the country his idea of booming Korea's economy when he becomes President. This idea was the "Canal," so called Korea's New Deal. His idea was to build a canal that strengthened throughout the country with underground tunnel so that people can travel through them. Not only would this canal be connected to South Korea, but to Shanghai and Japan.

This idea was not only to make a new transportation for the people, but to boom economy through new job offers and business, such as tourism.

Because there are many critics that reject the plan because of the negative effects that may be caused due to this project, President Lee will need to think of another way to bring up the economy. Lee lost many support from the citizens after his election.

My Opinion

I believe the canal is a great idea to boom the country's economy. Not only will the economy will grow, but a new image of the country will rise. As we talked about it class, I realized that Korea really lacks a strong image anything. For the past few years, Korea strived to become a combination of the world, a little bit of America, Europe, and Asia. As a result, it became nothing but a "wanna-be."

I believe the canal will bring a stronger image of Korea. It will create a unique attraction in tourism. Although Korea isn't the first country to make a underground tunnel, (Hong Kong has one already,) it is a great idea to bring more tourists. The canal will provide foreigners to come to Korea and have a tour around Korea from north to south of the country. This canal will not only allow foreigners to travel around the country but also bring connections to other Asian countries. This will be a great opportunity for travelers to have easier and cheaper access to neighboring countries.

The environmental issues are a great hindrance for this project. There can be accidents such as oil spills, in the river which can affect drinking waters and etc. However, I believe this canal project is like a new business of the government. Business needs to take risk. And government should take responsibility of their business such as preventing accidents and the outcomes of this project. It is a big investment with great opportunities ahead.



Entry #8 - 20600770
Resource - Cnn.com "Korea's New Deal"

Love Story in Advertising

Article 20700011 entry 8
http://car.khan.co.kr/kh_car/khan_art_view.html?artid=200804251902272&code=920508

Love Story in Advertisement

In the article, SsangYong has made advertisement film for advertising their new car model, U-Turn. Few companies have made a teaser advertisement film similar with this, but this film is different from them. This film has used a love story, so many of young ages have much interest in this film. They post up the advertisement film in their blogs because the music and image are highly qualified by the famous movie director, Mr. Jang.

In my opinion, this marketing strategy is very unique and appropriate, because they made a distinctive brand image through providing an advertisement film to customer. As we learned in the class, brand building is very important because it make people to remember the product, giving district ion and increasing perceived value. As more people see this advertisement film, they will remember the advertisement film. As they remember the advertisement film, they will have the distinctive brand image about that product.
20700011 entry 8

Seoul, Beijing, Tokyo Eye Joint ATM Network

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Summary
BOK has suggested standardizing ATM machines in Korea, Japan and China to promote cultural exchange among nations. This will benefit travelers by lowering the current expensive ATM withdrawal fees. Although it will take at least two years of time and costs lots of money, it seems to be very worthwhile as the travelers can save money when they are using ATM machines in other countries and this will help stimulating the cultural exchanges among these three countries

Opinion
Korea, Japan and China have been having very close relationship since thousands years ago and now they have such a crucial influence on one another culturally, economically and even socially.
Considering their close interaction, I believe BOK’s suggestion is a brilliant idea because it will benefit all three countries by accelerating cultural exchange among these countries. When travelers go overseas, because they are allowed limited amount of cash to carry with them and carrying too much cash isn’t safe, most people use ATM machines to withdraw money with their credit cards. Of course there’s a change booth at the airports and banks but as I mentioned before, travelers normally don’t prefer to carry too much cash and ATM’s the best option when they need immediate cash.
However, the ATM withdrawal charge is too expensive and this could be one of the biggest obstacles to vitalize travelers’ consumption. If the three countries decide to unify their ATM network system and lower the ATM fees, we can expect more travelers to travel each others’ countries and as the data shows, rapidly increasing travelers will become more likely to spend more money while they are traveling overseas.
Therefore, I believe that is a very efficient and beneficial suggestion to both travelers and those three countries’ economy because the gains from making people to spend more money by lowering the ATM fees will be much bigger than the earnings from high ATM charge.

#20300576 - Entry 7

Jeju Islnad for global resort

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summary
Jejudo plan to establish a large-scale a tourist resort. Its size is equal to the size of 여의도 in Seoul. Nam young cor said that it will be located in Seoguipo, its size is 7490000, and it will be equipped various facilities. It will be the nation’s largest size of industrial resorts, and medical, education and the rest opportunities will fuse together.
It completed membership system and condo-27 hall for golf member, 9 hall for general people. And it is establishing 316 more. Nam Young cor have a goal. The second step is planning more investment for the near land development for 8755 million dollar. It pursuits the facilities such as medical center for rich entire people, environmental park, cultivation land, business center, business park, research park, kids land, well-being theme land, horse riding center, and so on. It plan to make steady progress with world global enterprise and domestic companies, and its goal is the overall resort for 3 generations together.

My opinion
I saw some successive case which related global strategy last class. That was impressed because it is greater than I think before. I think that Jejudo is one of the best beautiful resorts in the world. Unfortunately, many foreigners think that South Korea is not as attractive as Thailand, Japan and most of Asian countries as a tourist destination. Jejudo has beautiful environmental scenes but its promotions are not enough to inform to them.
Jejudo has not only beautiful environmental recourses but advantage of location. Recently, competitions of Jejudo are short but, its potential is too big enough to draw foreigners who travel in the world.
Many businesses are planning. Gil-Man group, which is world casino development and operation, recently opened the five- stars hotel. He prepares active promotions, special course for cheeses. It will contract with VIP operator strategy. Near distance 2 hours from Jejudo, there are 10 billion populations, and it will increase visitors from Honkong, Japan if the non-visa contracts.
International geologist are interested in Jeju Volcano Island and proved the value of various geological features. Jeju also plans to invent cosmetics, drink business related it.
The Hanla mountain exploring information opened. It is possible to see whole beauty at a glance.
I think that Jejudo has to strength the global strategy; above all, it needs to structure global infra-language, cultures. And there are some problems to improve-high cost, lack ness of facilities, and govern regulations still remained.

# 20300194- Entry 8

Malaysia: Tourism Hub of Southeast Asia

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Summary



Malaysia is the ultimate destination for tourism, shopping, entertainment and leisure.

Every summer Malaysia hosts a famous shopping festival for citizens of the world in the heart of Kuala Lumpur _ The Malaysia Mega Sale Carnival _ from June 16 to September 2.

The event offers tourists and shoppers discounts on luxury and premium brands known worldwide ranging from jewelry and accessories to cosmetics and fashions as well as electronics products.

As well, visitors can also take advantage of discount offers at top-end hotels, restaurants and resorts.

Opinion

During the last class, we have talked through how the Korea can manage its tourism better than now. From the article about tourism marketing in Malaysia, Korea can learn some good strategies from this.

In my opinion, what makes people want to visit Malaysia is its unique festival, The Malaysia Mega Sale Carnival. During this festival, lots of people come to the country and spend thousands of money. Because you get discount prices of 15 to 70 percent for the luxury and premium brands and you can rest in good hotels.
In addition, the carnival has joined hands with global credit card company, MasterCard, to maximize the promotion of the festival as well as to give a 'winning chance' for customers to visit Malaysia's beautiful resort island of Pankor.

Otherwise, Korea does not have this sort of festivals nor tourism marketing. Tourism is one of the biggest market industries that can earn a lot of money. When people travel, they spend money more and easier than when they do not travel. Therefore, Korea has to make more efforts to have competitive advantages that can make people want to come and see that.


Student ID # 20500018
Entry #8

Samsung unveils Armani luxury TV

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Summary

Samsung Electronics Co., the world’s most luxurious TV producer, shook hand with renowned fashion designer Giorgio Armani – another luxurious brand. Collaborating with Samsung and Armani to produce what we called ‘Samsung-Armani TV’ it was introduced at Armani Theater in Milano of Italy. After marketing strategy to design the contract between Samsung Electronics Co. and Armani, ‘Armani a premium touch-screen phone’ has been released last September. Even though Dolce & Gabbana and Motorola Inc. for a gold-colored version of the RAZR mobile phone model and boutique brand Prada collaborating with LG Electronics Inc. reveal with Prada Phone, Samsung-Armani TV has brought the attention to those of customers with the creation of World well-known electronic company and boutique fashion designer. The new model is a full high-definition TV with a black wooden frame, which company officials explained was hand-made. The logo of Samsung appears on the screen, while the TV is on, but once it is switched off, the logo of Armani replaces that of Samsung. It’s their satisfaction as the world best global cooperating customer stands out the strategy to customers. The Samsung-Armani TV will be driven out in Korea, Europe, Russia and the rest of the world in the second half of the year. The price is yet to be set.

My Opinion

It’s popular strategy that inter-cooperating with World global electronic Co. and luxury fashion designing Inc. I think not only the clothes concentrated company does produce living commodities, but also the electronic concentrated company does produce electronics. Then, it’s the period of selling the product to customers with better pros and less cons. Customers have peculiar taste toward new luxurious products even though it’s on the high price. Vice versa, luxurious companies release the common factor to meet with customers’ need. Simple technology and high price of specific companies just like luxurious brand designs on commodities and electronics for electronics cannot appeal to those of customers to full their needs. I believe that such marketing strategy can be determined as to combining pros and abandoning cons for what we called ‘Strategy Marketing Alliance’ It also can be categorized as ‘win-win’ strategy to make greater value with better profit for customers.

#20400251 #Entry8

Revival of Walt Disney

article
http://www.hankyung.com/news/app/newsview.php?aid=2008041847041

Summary
In the article, Walt Disney has been running well again since Robert A. lger became a new CEO of Walt Disney. The management strategy of Robert A. lger, “Differentiation and creation” was the key for the success. Walt Disney moved the marketing target class from kids to teenagers. The TV drama was so successful that they made few more shows like musical and concert based on that drama. Furthermore, they moved their marketing target class to adult again. The ability which they make various different kinds of products based on one original product is one of their strong point, too. The management style of Robert A. gler, which he hold ‘creative thinking and combination’ in great account was one of the element to lead the Walt Disney success.

Opinion
I have been thinking about Walt Disney’s management strategy after we study about Euro Disney in class. I got big impression from the way Walt Disney produces many products from getting the idea of one original product. Most well known thing is Character of Mickey and Mini. They reflected it to many products like clothes, notes, CD player and Disney land. Now Walt Disney developed a competitive advantage through their merchandise because of their brand image, too. Positioning their product using a clear, distinctive brand image and constantly reinforcing that image through their merchandise is an important method for efficient marketing.


20700011 entry-7

Busan-Jinhae FEZ Attracts $188 Mil. Plant

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Summary

Kim Moon-hee, commissioner of the Busan-Jinhae Free Economic Zone Authority(BJFEZA), signed a MOU(memorandum of understanding) with the CEO of Tae Kwang(TK) Corporation on founding a pipe plant by the second half of 2009. Its establishment is projected to make some 450 jobs for 188 billion won ($188 million) plant.
Moreover, Otofuji, a Japanese industrial machinery firm, joins this foundation with a 30 billlion won. The BJFEZA stated it is very satisfied with the contract because of an ideal case including FDI and it continues to give an advantage when some company attracts a foreign firm. Through this signing, more than 90 percent of Hwajeon district is occupied.
The BJFEZA is also trying to develop an additional site to meet investors’ wants and secure more space for the zone. It is the second South Korean FEZ ,seated on 105 square kilometers, and has induced a total of $4.8 billion in investment and aims to entice $200 million this year.

Opinion

South Korean FEZ appointment was made before about 5 years. There are three FEZ in Korea, Incheon, Busan-Jinhae, and Gwangyang and the invested scale is estimated about 35trillion won($350 billion). How huge the amount is! However, why did the FEZ fail? I will explain especially in BJFEZ.
The BJFEZ has a good geographic condition near Pusan Newport accommodates a lot of shipment. So the BJFEZA should induce the domestic and foreign excellent firms to establish the factory as well as a financial firm. The Korean government has to reduce the tax rate including other advantages. I think its aim will be the BJFEZ is in Korea but not likely in Korea. As a district distribution, they must define industrial, financial, and tour area surely. Even though I know this process can be get briefly and that is true, the Korean government and the BJFEZA will steadily try to induce and attract FDI(Foreign Direct Investment).

#20300576 - Entry 6

Marketing toward a bigger MARKET

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The most rapidly growing market is China. A great number of Chinese are becoming luxury good consumers, but mainland luxury boutique aren't the ones selling to these people. This great numbe of Chinese people are traveling abroad and purchasing expensive goods, such as places in Hong Kong, Europe and Japan. It is proven that Chinese people spend one third of their budget in shopping, which can be said that it is more than what the Japanese are using in their trips. "Shopping Tour" is not only popular among Chinese, but also Russians and Indians. These wealthy people are purchasing items in other places where it is offered more cheaply than their home. For example, luxury products that are high priced in China aren't selling too well while the same product in Hong Kong which is cheaper are selling very well. This is part of the marketing strategy, which is working quite well.

Opinion

I believe it a good marketing strategy these famous and popular companies are using. Although the product in China and Japan is the same product, the price differs because of the fees they had from importing, exporting, taxes and retailing fee. Some places cannot provide a cheaper price but a higher price compared to what it can be offered in the country where the product was made. Many people tend to compare the prices available in their homeland and other countries abroad, and purchase them when they are traveling if it is available more cheaply.

Quick companies saw the trend of tourism and travel, and thought about a marketing strategy, where people can purchase more easily and a little carelessness because of the small price difference. I think it works especially in China, because the amount of wealthy Chinese people are growing and tend to travel. They are consumers that want to catch up with the developed countries such as Europe and Japan. The products popular in these developed countries are what Chinese people want. And because they find it cheaper in these developed countries, they purchase without deep concern.

I can say that this strategy is also well thought because their target is TRAVELERS. Sales go up because the most thing the travelers are holding is CASH. Since they have the money, they will spend it, especially things that can be offered in a lower price.

I believe that tourism will grow, especially in China. Because China is a big market, many product manufacturing company can boost their sales if they do their marketing well dealing with travels.
Entry #7 - 20600770

A Home shopping big win brand –‘Luna ‘

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Summary
Luna records sold out in Home shopping during 55 minutes. And it continued a series of three sales and the total sales are about 400억. It is amazing records and it just during 16 months. Life cycle of Home shopping is shorter than other market, especially it is hard to continue over one year because cosmetic market is constantly changed. But Luna succeeds.
There are some factors which lead to succeed. The first is the creature of the Blue-ocean. It manages from project to production. The second is the 1st make-up artist ‘Jo sung-Ah’. It stresses that it is a professional cosmetic brand. Main concept of season 1 was ‘young-face’, season 2 was ‘small-face’ and season 3 is ‘Bonny Make-up.’ All that three concepts reflects trend.
Luna maintains brand power, one of the most popular Home shopping cosmetic brands, among opinion leaders who lead trend. And other competitors are entering Home shopping competitions.

Opinion
Luna is one of my favorite cosmetic brands. When I saw the ads first, there were many stars that were using Luna and it appeal to me. It was flesh because it’s unfamiliar that MA brand at that time. MA brand means that Made by makeup artist brand. There are many MA brands but its start is Luna in Korea. It’s popularity is great not only on-line but also off-line.
I think that there are some advantages. It has know-how, which make up artists have been experienced, and it gives customer belief. It improves the disadvantages and enables customers to be attractive face make-up because anyone can follow the make-up know-how easily. The other factor is the price competitiveness. Actually, I’m using Luna for 1 month. Its cost is low, but its quality is high. And reasonable cost appeals to me and it is enough to draw other consumers’ mind.
I think it is successful business depends on satisfied customer and that’s why successful marketing. Its targets are women who have job and economic power to purchase and they are willing to invest for themselves. The bigger gold-miss increases, the more market which targets them are expands. Quality is the most important factor in cosmetic market, and Luna has both price competitiveness and quality. The other successful factor of Luna is ability to catch the trend. In recently, the main concept of the third season is ‘Bonny make-up. Bonny means that lovely, plump and healthy. It’s my favorite concept of 3 main concepts. And just power of ‘first MA brand’ is strong advantage actually.
As a customer of Luna, I suggest that it should research consumer’s tastes constantly and listen to complains about construct of package, some inferior goods to maintain opinion leaders’ support and strengthen brand power.

#20300194 Entry- 7

Arumchan Kimchi Enjoying High Popularity

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Summary

The National Agricultural Cooperative Federation (NACF), also known as Nonyhyup, has sold Arumchan Kimchi since the second half of 2002 and it has gainded strong popularity among housewives.

The sharp rise in sales reflects the effect of the growing brand power of Arumchan. Its 11 plants produce kimchi and sell them under the joint brand name of Arumchan.

The joint brand strategy has proven successful so far. On top of brand power, the recipe for the success of the kimchi is the use of homegrown materials and a tough quality control system. It uses high-quality peppers, seasonings and cabbages under a standardized process.

NACF also put a greater focus on strengthening its marketing through its outlets nationwide and the Internet (www.arumchan.com). Customers also can get the kimchi at shopping.nonghyup.com. It also plans to expand exports to Japan, New Zealand and other countries via online sales.


Opinion


Kimchi is the most familiar food in korea culture. Most of koreans eat kimchi every meal. For this reason, there are many competitors in this market. Among these competitors, Arumchan Kimchi has been doing well by executing their unique strategies.

One strategy they do is to have special recipe for the kimchi. They use homegrown materials and a tough quality control system; also they use high-quality peppers, seasonings and cabbages under a standardized process. This is the capacity that can lead the company excess other competitors. Having a competitive superior position is critic to maintain the top in the market.

Another strategy is to strengthen its marketing through its outlets nationwide and the Internet (www.arumchan.com). Customers also can get the kimchi at shopping.nonghyup.com. Expanded channel can be the most useful way to increase customers particularly in this day and age. Lots of people have found that buying through the internet web-site is easy and fast. Also, by using the web-site, the company can collect customer's information. This can help the company respont to customer's need exactly and accurately.


Student ID # 20500018
Entry # 7

Shinsagae & Chealsea Outlet Posts Little Profit

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Summary
The first American-style fashion outlet that opened last year in Yeoju, southeast of Seoul, reported a mediocre performance in its first seven months.
Shinsegae & Chelsea had only 430 million won in net profit between June and December 2007, according to the Korean firm's audit report. The profit came from 11.9 billion won in commission from tenants. It is an unexciting financial performance for the ``premium'' fashion mall, which opened last June with big fanfare from locals and the company. The mall operator said that its business is actually more profitable than the numbers suggest because net profit is leftover from royalties paid to its parent firms, Shinsegae & Chelsea, respectively and they had set a sales target for the mall between 160 billion and 200 billion won for the first 12 months. It seems that we will be able to achieve that goal.
The mall has received attention from Korean shoppers, especially those who have complained about the relatively high prices of foreign luxury brands in Korea. In its early days, the mall was notorious for long queues, crowded stores and a lack of resting places. The situation has improved in general over the next few months as the number of visitors decreased during winter.

My Opinion
While I was reading over this article, I was looking for more about such interesting article like Shinsegae-Chelsea Outlet. When the Shinsegae shopping mall has been out to public last year, I have took a close attention to it.
First of all, Shinsegae-Chelsea Outlet mall insisted the image of American boutique style at first in Korea as their marketing strategy. Due to great interest in boutiques those of new generation in Korea, this sort of strategy fits appropriately in this situation. They also specifically targeted the main spot of Kang-Nam customers. As a result, they have reached the goal which they have targeted in major Seocho and Kang-Nam area in Seoul more than 50% visited customers and out of them are VIP Passport customers (membership only if you purchase more than 1 million-won). However, it was the way lower net profit rate compared to other competitive markets even though they have made more than thousand billion won sales. This had caused by very low lease commission.
It’s not only facing the problem with setting up lower fixing rate, but their purpose to achieve as boutique outlet mall with lower negotiation strongly affected by low lease commission. In addition, currently Shinsegae-Chelsea Outlet has been criticized by those customers. Above all, they are only categorized maximum ten brands also facing with operating problems such as difficulties in refund and goods in exchange. Although they have succeeded in attracting many customers, vice versa, much same problems also have identified.
Concerning with location for customers and close attention for boutique outlet marketing strategy had been successful. However, providing false information to customers is wrong. In addition, true marketing success comes from certain infrastructure of business strategy environment. If there are trivial defects in operation even though they use amazing marketing strategy, creating profit purpose has to be main concern for business.
#20400251 Entry #7

keep customers to come long

Article
http://www.newsva.co.kr/uhtml/read.jsp?idxno=310111&section=S1N54&section2=S2N235


Summary

In the article, there are four ways of marketing strategies which are specially focused on keeping customers long. The first method is making best product, like instant noodle. If the restaurant made best instant noodle and kept the same taste for a long time, customers would come by in every certain period time. The second method is setting the restaurant in popular place. If the store were in the location which people are crowded, many customers would drop by whenever they come to this location on various purposes. The third method is having an unusual service as a small concert in the store. Many people will get together to watch the event in the store and probably come next time again to see. The last method is having an weird marketing strategy which no shops have had yet. For example, make a rule like “no only boys, with girls”

My opinion
In the article, there are four ways of marketing strategies which keep people to come for a long time. However, I think this is not only the strategy for keeping people to come for a long time but also appealing new customers. We can apply these four strategies for any kind of new opening shops and firms. as a result, from firms to small shops need to have the special marketing strategy of them. It could be best product, unique event or super kind services. To achieve them, they need to find the image of firm hand make a marketing strategy which just fit to the specific firm.


20700011 entry #6