Marketing Across Borders MKTG2002

Marketing Across Borders MKTG2002

SOUTH KOREA -

business to business

1.0 Executive Summary (Everyone)

2.0 Background

3.0 Mission Statement

3.1 Corporate goals

4.0 Situation Analysis: PESTLE (Koyoki)

4.1 Competitive audit chart (Rom)

5.0 Swot Analysis (Everyone)

6.0 Marketing Objectives (Emily)

7.0 Market segment (Emily)

8.0 Marketing Mix Strategies (Everyone)

8.1 Product Strategies (Everyone)

8.2 Pricing Strategies (Everyone)

8.3. Entry And Distribution Strategies (Everyone)

8.4. Promotion strategies (Everyone)

8.5. Implementation Chart (Rom)

8.6 Evaluation Chart

Executive Summary

According to the Korea Development Institute, the value of the Korean won would drop by about 4% in real terms in 2020 and remain stable in 2021. In the first half of 2020, COVID-19 will have a major negative impact on both exports and imports, with a slight upward trend in the second part of the year driven by increased exports of products. Inflation is expected to remain low as an outcome of falling oil prices and diminishing economic activity. Despite the severe economic slump, it is expected that the unemployment rate will only marginally increase, from 3.8 per cent in 2019 to 3.9 per cent in 2020, due to the significant fall in the labour force participation rate. This article mentions the marketing environment and the advantages and disadvantages of engaging in marketing strategies in South Korea.

Introduction

Brand/Products selected

Justification and brief background

SpaceDraft is a creative and interactive planning software that allows users to visualise logistics and enable remote collaboration and communication. Founded in 2017 by Lucy Cooke, SpaceDraft was created to help the film industry orchestrate smooth planning for large-scale cast and crew productions in a small space over time.

From our research SpaceDraft will be the first to market

https://www.workspace.co.uk/content-hub/business-insight/how-to-enter-a-foreign-market

Overseas Market: South Korea

Overseas market selected

Justification and brief background

Population of 51 Million people

In 2020, the number of registered active companies in South Korea amounted to around 6.82 million.

https://www.statista.com/statistics/1009544/south-korea-number-of-active-companies/Mission Statement

This exercise considers how your clients mission statement is used to explain, in simple and concise terms, its purpose for being. A mission statement is usually a long sentence or a short paragraph, which highlights a company's culture, values and ethics.

Mission statements has several characteristics, including reinforcing company strengths, motivating employees, satisfying customers and reassuring investors of the company's future.

Mission Statement Characteristics

No official mission statement but stated on the SpaceDraft website the quote Bring your plans to life. The mission statement we have proposed for SpaceDraft is: Our mission is to allow our clients to bring their plans to life, by using remarkable interactive planning software allowing users to visualise, communicate and collaborate.

Corporate Objectives

This exercise considers the corporate objectives that your client must set for the medium term (i.e. 1-3 years). Identify four or five Specific-Measurable-Actionable-Realistic-Timed (SMART) corporate objectives (i.e. brand equity, sales, growth, profit, market share, responsibility) relevant to your clients business portfolio.

Corporate objective #1: Expand into South Korea and penetrate the B2B target market. The objective is to have SpaceDraft enter South Korea between Year 1 January 2023 and Year 2 January 2024.

Corporate objective #2: Achieve an 11% increase in funding; from 2.7 Million to 3 Million between Year 1 January 2023 and Year 2 January 2024.

Corporate objective #3: ______________________________________________________________

Corporate objective #4: ______________________________________________________________

Marketing Across Borders MKTG2002

Brand/Products SBU

This exercise considers your clients strategic business unit, popularly known as SBU. This is a fully-functional unit of your clients business that has its own vision and direction. Typically, a strategic business unit operates as a separate unit, but it is also an important part of the company. Identify and map out where your clients products will take their business over the medium term, using one or two of the analyses matrices (i.e. PLC, BCG, Ansoff and Porter).

PLC

BCG

Ansoff

Porter

Marketing Across Borders MKTG2002

Competitive Perceptual Map

This exercise considers how your clients brand is positioned in the marketplace against competing brands. Identify the critical attributes in your clients products and in a map, visually present how consumers perceive your clients products in the competitive environment.

Marketing Across Borders MKTG2002

PESTEL Analysis

4.0 Situation analysis: PEST

ppt- 1 references each pest

3 references for the report

Political Factors Affecting South Korea

Marketing Environment

Political and legal considerations undoubtedly regulate all economic activity (including marketing) and in the case of international commerce, the political climate significantly dictates how export and import rules are implemented. One example of the strong connection between the political and economic realms is the economic consequences imposed as an outcome of political events. Its relationship with China and Russia is very good; however, it has a challenging relationship with North Korea as both South and North Korea lay claims of complete sovereignty over the entire Korean peninsula. https://howandwhat.net/pestel-analysis-south-korea/ The political environment is the set of governmental policies that affect business. This environmental component encompasses federal, national and international laws that impose limitations on people and business entities. Political stability and a developing legal system both have an impact on market developments. Domestic and international laws may be impacted if business entities fail to follow the political environment'sy regulations. At the instance, politics has the worldwide influence.

Economic Environment Factors Affecting South Korea

It is apparent that the economics of the new market have the biggest impact on the marketing environment since a firm must have an economic base in order to operate. The characteristics of the economy that have an effect on the market circumstances and consumer trends in a certain area are referred to as the "economic environment." People's wealth and purchasing power will decline, for example, if a nation or the entire world is going through a significant crisis since resources must be preserved and the economy will not be stable enough.

Since the GNI indices are a market product, various additional factors should also be taken into account since they merely provide a snapshot of a country's present financial status.( HYPERLINK "https://tradingeconomics.com/south-korea/gdp" h https://tradingeconomics.com/south-korea/gdp). Definitions state that the primary elements influencing the state of the market are a nation's income, interest rate, cost of living and saving habits. In order to decrease their odds of failing on global markets and raise their possibilities of profiting from all economic situations, business organisations must stay up with and adapt to changes in the economic environment.

Socio-Cultural Environment

Given that it directly affects people, it is common to look at the socio-cultural environment in addition to the demographic data. Since culture affects the design, meaning and even acceptability of products, it should be the most crucial consideration for marketers. A society's traditional ideas and national values are referred to as its "socio-cultural environment" in connection to market and economic decisions. It is considered to have the greatest capacity to alter other settings of all the influencing factors. For instance, cultural factors have a significant influence on politics and may result in the adoption of new rules and legislation. Culture must be taken into account in every strategic marketing plan since it affects how choices are made.

Technological Factors Affecting South Korea

Emerging Changes

South Korea has emerged as a top target for cyber-attacks as an outcome of the construction of a 5G network, a high level of network connectivity, high penetration of mobile devices and valuable intellectual property. Cyber-attacks are becoming more sophisticated and prevalent in South Korea. Infiltrations into the supply chain, sophisticated malware, zero-day attacks and cryptojacking were all used in the most recent strikes on South Korea.

Cybersecurity services are being offered in Korea by an increasing number of American and Korean businesses. In Korea, there are 530 registered cybersecurity enterprises. Although the majority of these businesses have created their own products, others are eager to collaborate with American small- and medium-sized exporters. These Korean businesses want to assist the organisation in meeting a variety of cybersecurity demands by filling gaps in technology and product/service offerings.

Marketing Across Borders MKTG2002

Competitive Audit

This exercise considers the competition that challenges the way your client conducts its business in the marketplace. Identify three direct and three indirect competitors that have potential to impact on your clients positioning, market share, sales and profitability. Conduct an audit of each competitor, taking into account eachs core product, features and value.

Direct Competitors

Direct Competitors Core Product Augmented Product Strengths Weaknesses Value $

Client Competitor #1 Competitor #2 Competitor #3 Direct Competitors - Justification: ______________________________________________________

Indirect Competitors

Indirect Competitors Core ProductAugmented Product Strengths Weaknesses Value $

Client Competitor #1 Competitor #2 Competitor #3 Indirect Competitors - Justification: ___________________________________________________

Marketing Across Borders MKTG2002

SWOT Analysis

This exercise considers the SWOT factors, which exert internal (i.e. strengths and weaknesses) and external (i.e. opportunities and threats) influences on your clients business practices. Identify three to five issues from each SWOT factor (i.e. strengths, weaknesses, opportunities and threats) that have potential to impact on your client in the marketplace. Discuss the implications of each issue for their impact on your clients marketing strategies.

Strengths

Strong brand positioning and reputation; northern origins; authentically natural and organic

The majority's success in global markets is proof of the superior quality of their goods.

understanding, domestic appeal and global success

locally produced goods

Recycling, vegetarianism and politics that don't use animals

convenience of websites and produced content for social media

Weakness

Relative obscurity in comparison to other international cosmetics firms

Ineffective social media marketing and a lack of brand knowledge

Previous poor promotion channel

Influence of rival, strong brands and market competition

Uncontrolled environmental problems, such as import difficulties

The impact of covid-19 on the economy and business

Cultural divide.

Opportunities

The business has local partners, has previous expertise with importation into the nation and has access to a welcoming environment and customer.

The second significant reason is that South Korean consumers have a propensity to experiment with new goods as an outcome of the market's continual expansion.

The majority of South Koreans are not typically brand loyal, so if a foreign product becomes well liked there, they could give it a try.

Threats

Second, because of the elements of the marketing environment's rapid development, regulation is usually unattainable.

The companymay be forced to change its export policies and strategic decisions as an outcome of a number of challenges.

The company must be aware of developments and make necessary adjustments in order to continue functioning in the international environment.

A case of uncontrollable phenomena that had a substantial impact on the marketing environment was the COVID-19 epidemic.

Since South Korea is currently experiencing the COVID-19 outbreak at the time that study is being done, the companymust evaluate the country's present situation and any potential future developments that might change the current market environment.

Marketing Across Borders MKTG2002

Marketing Objectives

Marketing Objectives are goals and outcomes a business wants to achieve by implementing marketing activities. The overall goal is to have SpaceDraft successfully enter the South Korean Business to Business target market, to do this, marketing objectives that will focus on growing SpaceDrafts brand visibility and brand awareness are vital. SpaceDraft has eight key marketing objectives, which will be achieved from January 2023 - January 2024.

Marketing related -

The first marketing objective is to firstly create a comprehensive international marketing strategy between Year 1 January 2023 and Year 1 July 2023 that implements the segmenting, targeting and positioning (STP) framework. The STP framework simplifies the process of marketing segmentation.

Segmentation identifies all potential customer groups that are feasible for the firm to market its products and services

Targeting selects the market segments the firm intends to reach

Positioning creates perceptions in the consumers mindset about the nature of a firm, its brands and its offerings

Product related -

There is nothing on the market that compares to SpaceDraft; dedicating 50% of the promotional budget in Year 1 (2023) and Year 2 (2024) will help increase brand identity and position SpaceDraft as the prototypical brand for interactive planning software.

The second product objective involves raising brand visibility by 40% in the South Korean marketplace with publicity via online platforms and advertising in Year 1 (2023).

Pricing related -

The pricing related marketing objective involves creating a competitive penetration pricing strategy allowing businesses to receive 50% off when they sign a five-year contract will allow SpaceDraft to have a constant stream of businesses using their services. Implemented within Year 1 2023 - Year 2 2024

Implementing a relationship marketing strategy within Year 1 2023. Discounted pricing.

Distribution related -

Banner ads and apps

The development of the SpaceDraft app

Promotion related -

Currently, SpaceDraft has under 800 followers; the marketing objectives for promotion will involve SpaceDraft growing its social media presence by 50% by using digital marketing strategies within Year 1 2023 - Year 2 2023.

Implementing Public Relations and Publicity strategies within Year 1 2023 - Year 2 2023 to network, increase brand awareness and media relationships.

Marketing Across Borders MKTG2002

Market Segmentation (Emily)

This exercise considers the primary markets that your client should target. Identify three market segments that you recommend to be your clients key customers. Profile these market segments according to the segmentation bases (i.e. geographics, demographics, socioeconomics, psychographics, behaviour and benefits).

Segmentation Profile

Segment #1 Creative Segment #2 Logistics Segment #3 Tourism and Hospitality

BehavioralDemographics Geographical Firmographics Psychographics Benefits Note: Cite sources where applicable (e.g. Australian Bureau of Statistics, CIA World Factbook)

International B2B Market Segments Segment 1

Creative Industries Segment 2

Logistics Industries Segment 3

Tourism and Hospitality Industries

Industry Size Geographic location Product usage Client Value In the cultural industry, including films, videos, games, drama, and music, Korea has 2.6% of the global market share, which is the seventh-largest in the world. Generating around $170 billion in sales, $15 billion in exports, and 680,000 jobs. https://www.oecd.org/country/korea/thematic-focus/cultural-and-creative-sectors-1573f603/Marketing Across Borders MKTG2002

Marketing Mix Strategies

This exercise considers the marketing mix strategies that will help your client to position, engage and sell to consumers in the marketplace. From the four Ps (i.e. product, price, place and promotion), recommend three strategies for each P (i.e. product, price and place) and five strategies for the last P (i.e. promotion) that your client can utilise to effectively market to consumers.

Product strategy #1: ________________________________________________________________

Application #1: _____________________________________________________________________

Product strategy #2: ________________________________________________________________

Application #2: _____________________________________________________________________

Product strategy #3: ________________________________________________________________

Application #3: _____________________________________________________________________

Price strategy #1: Contract Penetration Marketing

Application #1: Businesses that sign a five year contract get the first year 50% off

Price strategy #2: ________________________________________________________________

Application #2: _____________________________________________________________________

Price strategy #3: ________________________________________________________________

Application #3: _____________________________________________________________________

Marketing Across Borders MKTG2002

Marketing Mix Strategies

Place strategy #1: __________________________________________________________________

Application #1: _____________________________________________________________________

Place strategy #2: __________________________________________________________________

Application #2: _____________________________________________________________________

Place strategy #3: __________________________________________________________________

Application #3: _____________________________________________________________________

Promotion strategy #1: Digital Marketing

Application #1: _____________________________________________________________________

Promotion strategy #2: ______________________________________________________________

Application #2: _____________________________________________________________________

Promotion strategy #3: ______________________________________________________________

Application #3: _____________________________________________________________________

Promotion strategy #4: ______________________________________________________________

Application #4: _____________________________________________________________________

Promotion strategy #5: ______________________________________________________________

Application #5: _____________________________________________________________________

Marketing Across Borders MKTG2002

Implementation and Evaluation

This exercise considers implementing and evaluating the marketing mix strategies that you have recommended to your client. Identify each of the 4Ps strategies, which you recommended in the previous section, in the two charts. Indicate with arrows or shading when each strategy will be executed (see implementation chart). Explain how each strategy will be assessed and who will assess it (see evaluation chart).

Implementation Chart

Year

Strategy Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Product #1 Product #2 Etc. Pricing #1 Pricing #2 Etc. Place #1 Place #2 Etc. Promotion #1 Promotion #2 Etc.

Marketing Across Borders MKTG2002

Implementation and Evaluation

This exercise considers implementing and evaluating the marketing mix strategies that you have recommended to your client. Identify each of the 4Ps strategies, which you recommended in the previous section, in the two charts. Indicate with arrows or shading when each strategy will be executed (see implementation chart). Explain how each strategy will be assessed and who will assess it (see evaluation chart).

Evaluation Chart

Year Strategy How 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Who

Product #1 Product #2 Etc. Pricing #1 Pricing #2 Etc. Place #1 Place #2 Etc. Promotion #1 Promotion #2 Etc.