The Handong Times

Human-centered Management Philosophy

2008-06-13T06:41:00.000-07:00

LG cellular phone has been positioned 2nd after Sony-Ericson in satisfactory survey conducted in the US. According to survey conducting firm JD Power, the satisfactory point of LG Electronics was 721 out of 1000 in 2006 American cellular phone survey. 1st place Sony Ericson had 740 points, Samsung Electronics 706 and Motorola and Sanyo, Kyosera 705 and 701 respectively. Nokia, the world’s best selling cell-phone maker, gained 699 points, making the last of 7 on the list.
18,000 people participated in this survey across the United States and evaluated on design, LG Electronics gained its motivation through this survey so it has started to take 21% of the cell phone market, almost catching up Motorola (25.1%) and Samsung (22.1%). LG’ was 15.2% in the 4th quarter of last year. Meanwhile, LG’s new product “Secret Phone”, aimed to target the premium cell phone market, was disclosed in Europe last month, and followed by Brazil, Mexico and Central America.
LG’s has had a good strategy in targeting the sentiment of the people. Instead of showing the only technology part, they have well combined both technology and the design. Different from past where only technology was focused, they have added the design to give a warm image. It was able to be a market leader because instead of just being superior in technlology, they have a basis of sentimental marketing where various analysis and innovation took place. I think that LG’s customer centered marketing and management has enlightened, thus making it different from other firms’ ones.

Source : http://www.koreaherald.co.kr/, LG's cell phone march goes on, By Lee Sunyoung, June 12 2008

Student # : 20300489_Entry14

Euro 2008 Kicks Economies Up a Notch

2008-06-13T05:27:00.000-07:00

Euro 2008 has kicked off and it is really beginning to be a big hit worldwide. The 3rd most watched sporting event, next to Summer Olympics and World Cup, over 8 billion people is estimated to watch the games. The event is held between June 7 and June 29, and over 100 million people are expected to visit the website, and its impact on UEFA’s (Union of European Football Association) 52 members across Europe could top 2.15 billion dollars. This includes the tourism revenue for the hosting nations, Switzerland and Austria, multi-million dollars TV licensing agreements, and increased food and beverage sales as fans go to bars and restaurants in support of their home teams. One analysts predicted that it will bring about 358 million dollars to the Switzerland economy. In Austria also, fans staying overnights and spending money would contribute tremendously to its economy. Sponsors will also benefit a lot for they’ll show their brand names worldwide on TV or on field. Through this event, Europe’s economy will generally benefit a lot. It is because many companies will invest money and gambling organizations will bet the winning teams for each game.
I know that Hyundai-Kia Automotive is one of the leading sponsors in this event. I think Hyundai-Kia has really grasped the chance to flourish and input a strong brand image worldwide. As mentioned above, Euro soccer event is one of the most famous sporting events in the world. Many people watch on the pitch or on TV and many firms will invest money to gain something out of it. If actively taking part in this kind of event by distributing players with transportation and putting its brand name across the stadium and on TV will let people experience and see the product and brand name. This way, later, after the event, the product and the name of the brand will be put into the people’s minds, subconsciously looking for that brand.

Source:http://www.businessweek.com/globalbiz/content/jun2008/gb2008065_999043.htm?chan=globalbiz_europe+index+page_top+stories

Studetn ID#: 20400542 - Entry# 13

Lotte Internet mall to open Supermarket

2008-06-12T07:32:00.000-07:00

Lotte opened the virtual supermarket on online, www.LotteiMall.com. Lotte Shopping Co. said the customers can now be conveniently shopping by a click of a mouse. Online outlet helps the customers to save their gasoline cost and reduce pressures due to soaring food costs because of global inflationary. Lotte Super, which has a distribution network across the whole country, will officially open on June 9 at 4 p.m. They will offer free home delivery services on all purchases without having to spend a minimum. They are willing to deliver even for the purchase of one bottle of water. Purchases made by 4 p.m. each day will be delivered before 8 p.m. the same day. There are 89 Lotte Super stores nationwide and they will offer the same products and prices as the offline outlet. They expect the addition of online Lotte Super since the number of online shoppers is growing. They also hope that virtual mall will become an effectively interconnected and all encompassing on and off line distribution channel.

Opinion.
Lotte Group is Korea's largest department store chain, which is the country's only retailer to have all major distribution channels like home shopping, department store, hypermarket, discount supermarket, and internet mall under Lotte. The benefits to have all distribution channels are creating synergy between its major retail lines including department store, home shopping, online shopping, and discount super store, placing Lotte Shopping in a unique position in the local online market. I might use online grocery but not often because I am not sure about the freshness of food. I like to shop other products, which do not affect by the temperature or date. It is certainly convenient to customers but they also have to have the solutions for problems that I mentioned before.

Lotte Internet mall to open Supermarket

By Yoo Soh-jung
2008.06.07

The Korea Herald

20600225_ Entry 14

Samsung's Mobile Fashion Statement

2008-06-12T04:22:00.000-07:00

The Giorgio Armani P520 is handsome enough to make iPhone owners look twice, but it doesn't exactly put the "smart" in smartphone

"Looking for a phone that will inspire oohs, aahs, and, dare I say, a little envy?"

The Samsung Giorgio Armani P520
This phone has everything that defines ‘de rigueur’ in the design for mobile phones. It is a nonflip, nonslide ‘candy bar’ handset with its front surface as a screen covering the whole area. It is extremely small with the surface about the size of a credit card, and as thick as a pencil. Taking the design perspective like an Armani suit, the designs on the phone are minimal and elegantly understated. Also, there are only two buttons on the lower part of the front surface – the ‘call button’ and the ‘on/off button’. The 2.6 inch touch screen covers the rest of the functions including the dial pad and various menus, protected by the leather case that comes with the phone. Despite the simplicity of the phone, it does not fall behind in features, including a 3 mega pixel camera that also takes video. The video playback in impressive considering it is a mobile phone.

However,
Compared to a competitor, the iPhone, it lacks in the web surfing feature. The main noticeable problem is that there is a need to type in addresses, search words, user’s names etc but the P520 does not provide a fully expanded touch screen like the iPod. To type words, you need to double-tap or even triple-tap on the phone’s numeric touchpad. This creates a hassle for users, and it is also a observed fact that the P520’s web browser is awkward to navigate.

Overally:
Pros- A sleekly designed touch-screen device in an elegantly small package
Cons- Pricey; multitap text entry on a dialpad is a pain when Web surfing; not available in U.S. stores
Comment- Pricey; multitap text entry on a dialpad is a pain when Web surfing; not available in U.S. stores

Comment:
I think that if design envy is what you're after, this touch-screen device is worth getting your hands on. You may even see some lustful looks from iPhone owners.

Samsung's Mobile Fashion Statement
Business Week (.com)
March 5, 2008, by Catherine Holahan
#20600392
Entry_#14

The iPhone 3G Unveiled

2008-06-10T23:59:00.001-07:00

Introducing New features
Steve Jobs, CEO of Apple Co. introduced the iPhone 3G. The iPhone 3G will sell for $199 for and 8GB version and $299 for a 16GB version. This is half prices of iPhone 2G which were introduced a year ago. Apple's chief operating officer Tim Cook is expected that the people who has wanted to buy iPhone 2G but they couldn't because of price will buy iPhone 3G.
The new phone is armed with lots of new features. First of all, it downloads Web pages as much as 36% faster than comparable phones from Nokia and Palm. Second, it lets users know their location using GPS satellites. Third, there is the MobileMe which allows to use Mac web service and Macintosh computers.

Alliance
To create this iPhone 3G, Apple cooperate with several companies. First, they cooperated with AT&T to provide the wireless service. With AT&T's subsiding, the price can be half. Second, they provide to use Microsoft's office. Third, The iPhone 3G can use Google's online photo albums. Finally, new applications include an auction program from eBay, a series of game from Sega and Pangea Software, a friend locator from wireless startup Loopt, and a pair of medical programs from Modality.

Opinion
There were 3G wireless phones in the market already. It is not easy to enter when a product is not the first product in a market. To enter the market, Apple Co. uses their innovative images. They try to put new features in the iPhone 3G to differentiate with others. To use new features, they cooperated with other companies, even Microsoft which is competitor in PC industry. Even though there are not many new features in iPhone 3G for me, I would like to use the phone because of Apple's image. It seems different with other phones and looks fun to use it.

Source: Arik Hesseldahl, The iPhone 3G Unveiled, BusinessWeek, June 9, 2008

http://www.businessweek.com/technology/content/jun2008/tc2008069_946161.htm?chan=rss_topStories_ssi_5

Student#: 20400152 - Entry 14

Apologizing for the inconvenience this causes..

2008-06-06T15:57:00.000-07:00

I am truly sorry for the inconvenience that my lack of concern causes.
The article about Wal-Mart is by:
#20600392
Entry number 13

Sam's Club tests new concept

2008-06-06T01:42:00.000-07:00

FAYETTEVILLE, Ark.

Wal-Mart’s Sam’s Club has carried out a new store concept that focuses solely on small businesses throughout America. This new club is called ‘Sam’s club business centre’ and will be focusing solely on bulk items required by small businesses. These bulk items may include supplies for offices and food for restaurants, convenience stores, and other enterprises. McMillon, the chief of the Sam’s club states that if the financials (sales) of this new store concept is appealing, they will expand more stores in a similar way to the original Sam’s club (located in Houston) targeting the small businesses throughout America. Sam's Club has been working closely with its small business members, which have been struggling with inflationary pressures on food and fuel.

This new targeting store concept of Wal-Mart has started off well, with 600 stores nationwide, with sales of $43.3 billion in 2007. It seems to me that this is the targeting of a ‘niche’ market. This new concept doesn’t ideally seem to fit the idea of ‘niche’ market because the market of small businesses is not exactly small. However, the original Wal-Mart tried to facilitate everything for everybody, which may be one of the main reasons that brought it failure in Korea. This new strategy is limiting the range of products they are providing but instead are specifically targeting the considerably narrower market of ‘small businesses’, by providing bulk items that other consumers wouldn’t necessarily buy. Therefore, a sort of ‘niche market’ has been formed. Although financials may have been good in America, it cannot be made certain that the same strategy would work in Korea, because small businesses already have channels of providers, and there is 정 (attachment, loyalty) that Koreans live by. It would be hard for Wal-Mart to find its niche market.

Sam's Club tests new concept'

Businss Week

The Associated Press

FAYETTEVILLE, Ark

June 5, 2008

Marketing for Middle-Class

2008-06-05T08:13:00.000-07:00

Hyundai Motors is becoming a wave in Russia. Its sales goal has gone up 35%, aiming for 200,000. It is estimated that the sales goal will be achieved if the sales goes on in current pace. Hyundai is planning to show not only its famous models such as Cats, Elantra, Tucsan, but also Genesis at the Moscow Motor show in August. And through this, it is planning to set a “Full Line up system.”

This system is more specifically targeting the middle class who are pretty much interested in 2 things: houses and cars. Since the so-called “baby boomers” became the backbone of the economic growth in Korea, the main sales of houses and cars became to grow. I think Russia is going through the same process. More houses are sold than built, more people are spending to have a better life, and thus the economy is starting to grow.

It is surely a good opportunity for Korea. Korean products can be the most favorable products to buy for the Russians. By promoting the image of Korean and its firms, it will be possible to grab their attention.

We have to keep an eye on Russia. Korean firms have to try hard to occupy the current market by doing the marketing that many middle-classed people like. At the point of our economic growth, we have to take control of the Russian market. Russia is no longer a forbidden land. But, rather, it has become a great opportunity for us.

Source : http://www.koreaherald.co.kr//, Hyundai Motor targets Russia's middle class, By Choi He-suk, May 4 2008

Student # : 20300489 Entry_13

Wal-Mart, Your Friendly Drugstore

2008-06-05T03:15:00.000-07:00

Go for Need
Health-care industry is expected to be increased in the U.S because for the estimated 80 million baby boomers, who were born between 1946 and 1964. According to the Census Bureau, 300 people in America turn 60 every hour, the average cost for the aged 55 to 64 was spent $3262. This cost climbs 20% per year for over 65.
Wal-Mart saw this chance and they have started to sell the health-care products for the cheapest price. They also offer walk-in clinics for minor ailments such as a cold or a cough for cheap price. They expect to change their image from a junk store to a life save store for the cheapest price. Wal-Mart also started to offer the health benefits plans for their employees not only to change their image but also make more attractive place to work and reduces employee turnover.
The results of starting the health-care business is that the health and wellness products was about 9% of overall revenues in the 12 months ended Jan. 31, 2008.

Opinion
I think that Wal-Mart saw the great chance to increase their profit. Since aging is going in the U.S, it is easy to expect that the health-care product industry will be increased. The health-care products are not only help for their profit, but also it will help to change their image. The health-care products are for better life, so buy proving them will help change their image as junk store to the store that provide for better life and really helpful for people.

Source: Pallavi Gogoi, ‘Wal-Mart, Your Friendly Drugstore’, Businessweek, June 5, 2008

http://www.businessweek.com/bwdaily/dnflash/content/jun2008/db2008064_545169.htm?chan=top+news_top+news+index_top+story

Student#: 20400152 - Entry13

Hyundai Motor Targets Russia's Middle Class

2008-06-04T22:29:00.001-07:00

Hyundai Motor Co. is looking to consolidate in the Russian car market. The company became one of the country's largest carmakers when they first exporting to Russia in 1990. In these days, the company has the second largest market share among foreign carmakers after Chevrolet and third largest market share among all carmakers. According to Dmitry Sergeev, who is the director of the Rolf Altufijevo dealership in Moscow, Russians wanted cheaper Russian cars like the Lada in the past, but Hyundai cars are becoming popular since more people joining the middle class. He also said, Hyundai is still considered as cheaper brand but the brand image is improving with the launch of vehicles like the Tucson in recent years. Hyundai is planning to have a factory in St. Petersburg because it will help raise sales. However, there is a problem. The main problem is insufficient supply in Russia. Some of the popular models need one month to be delivered and if including special options need more than three months. The company believes this problem will be solving after built the factory in St. Petersburg.

Opinion.

We talked about how important to have right targets in marketing. It is because everything will be different depending on targets. Hyundai Motor targets middle class and I think it is right decisions because of the image of Hyundai Motor. It is not much expensive as other foreign cars like Lexus but also not cheap as Russian cars. Since the middle class in Russia is a huge market, they have to use wisely. The first thing they have to do is to have strong supply in Russia. The relationships between supply and customers are very important and it affect to the sales directly. They have move quickly to solve this problem.

Hyundai Motor Targets Russia's Middle Class

by By Choi He-suk

The Korea Herald

2008.06.05

20600225_ Entry 13

In Hiring, Europeans go Global

2008-06-04T13:16:00.000-07:00

Carrefour, a big French retailer, has Jose Luis Duran, a Spaniard, as its chief executive. Unilever, an English-Dutch multinational firm, named a Frenchman as chief executive in 2005. Also, the Gucci Group, a leading Italian fashion-relation manufacturer, owned by the French Pinault family, has a Dutchman as chief executive. This kind of trend where a firm from one country is run by a chief executive from a different country is not uncommon in Europe. “In Europe’s largest economies, the national stock exchange is looking more international. In Britain, for example, 34 of the 100 companies on the FTSE 100 index now have chief executives who are not British. While a decade ago, the list would have included many executives from English-speaking nations like the United States, Australia or Ireland, now in addition to 15 Americans, there are three Frenchmen, a Swede, a Spaniard, an Indian and a Kazak — Yong Keu Cha, the 50-year-old chief executive of Kazakhmys, a mining company.” (New York Times, June 4 2008)

I strongly believe that what many big economies in Europe are doing is a terrific idea. We can easily say that globalization is the key factor not only in business but also in many fields between nations. In order to grow and succeed, learning and gaining knowledge from other countries is very important. It is because people from different countries could have various ideas derived from their individual culture that could sometimes be very creative. Every nation and individual has something to learn from other countries and people, regardless of race and sex. In a world where nations are inter-related, helping and learning from one another is the only and sole factor of success.

Source: Tagliabue, In hiring, Europeans go Global, The New York Times, June 4, 2008.
http://www.nytimes.com/2008/06/04/business/worldbusiness/04execs.html?pagewanted=1&ref=business

Studetn ID#: 20400542 - Entry #13

Referring to the Article Below

2008-05-30T07:23:00.000-07:00

It seems that I cannot adjust it. Please note that it is entry12, not entry11. Thankyou

Survey: Americans make 41M fewer air trips

2008-05-30T07:02:00.001-07:00

WASHINGTON

Due to soaring fuel costs, the airline industry is losing money as it struggles to maintain business. To maintain profits while competing against the rising fuel costs, airlines have raised fares, added fees, cut capacity and scaled back expansion plans. It is a known fact that some airlines have even become bankrupt. However, rising costs is not the only obstacle that the airline industries face. A recent survey shows that they are avoiding taking trips by air (by plane) due to the hassles of air travel. The majority of travelers complained about the frustration at airports and on board the planes and stated that air travel is the worst type of travel (although air transport levels of security has been increasing). The respondents of the survey complained about worsened efficiency, less reliability and a deteriorated system.
This provides the airline industry a big problem because due to these reasons, more than a quarter of the population (America) said that they avoided at least one air trip in the last year because of the hassles involved in air travel. The Travel Industry Association estimated that 28 percent of air travelers avoided 1.3 trips each, which results in 29 million leisure trips and 12 million business trips that were not taken. This means that there were 41 million trips skipped, and this would cost the travel industry 18.1 billion dollars, which is a large proportion of the industry’s total revenue of 740 billion dollars.
To avoid complete bankruptcy of the today’s airline industries, it seems evident that it is and important time for America’s policy leaders to consider a meaningful air system reformation.
I believe there is reason to what the travelers are complaining about, because there are so many hassles and processes to go through at airports in America. There was a time when I was even asked to open my bible and take off my shoes and socks in search of drugs, when other Europeans (whites) just got sent through. This was very embarrassing and enraging for me, and although I enjoyed my stay in America, I do not relish the thought of revisiting an American airport.

Survey: Americans make 41M fewer air trips

Washington, May 30, 2008

Business Week

#20600392

Entry_#11

Blue Gold

2008-05-30T07:02:00.000-07:00

No.1 firm in making seawater into fresh water Doosan Heavy Industry is turning its eye on water and wastewater treatment and water reuse business. While business in making seawater into fresh water is only concentrate in the Middle East, it is estimated that water and wastewater treatment and water reuse business will bring a lot of benefit to the firm due to its widespread around the world. Doosan Heavy Industry last year built a large plant that makes seawater into freshwater in Saudi Arabia and secured its place as the No.1 industry in the field.
Park Yoon Sik, director of Doosan Heavy Industry, said that the firm is planning to be the best firm in the Water industry by going into different fields in water industry.
I am very excited about the fact that a Korean firm has positioned itself at the top in the industry of water, which is currently called as blue gold. Water industry is surely becoming a lucrative business to do, but I worry that many global water industry firms are being backed up by their own governments to invest in the business, but many Korean firms are not turning their eyes into this part of the industry. The government and each provisional government are doing tap-water business so normal firms have no way to penetrate. It is essential for the Korean government to watch closely to Europe that has allowed many personally owned firms to take part in the industry and, thus, gain much knowledge and technology. We have to be aware of the risk of our Korean firms’ lack of experience and the shortage of water. Thus, a quick solution is needed.

Source : http://www.koreaherald.co.kr, Doosan dives into water business, By Lee Sun-young, May 28 2008

Student # 20300489 Entry_12

Competition heating up for budget airlines

2008-05-30T03:49:00.000-07:00

Local air lines compete to low international flight cost to attract holidaymakers this summer. Jeju Air Co. and Hansung Airlines Co. start international flight services to Japan in July. They plan to service routes connecting smaller cities in Korea and Japan like flying between Jeju and Hiroshima or Incheon and Kitakyushu. Hansung Airlines also considering launching flights between Cheongju and Japanese cities like Fukuoka this summer. The ticket price is 20 to 50 percent cheaper than regular flight price. The competition has prompted major airline companies to tap the low cost market recently. Korean Air Lines Co., which is the largest market in airlines, set up a new budget airline called Air Korea last year. Air Korea is a plan servicing domestic routes. The new carrier is also set to launch regional flights including to China, Japan and Thailand next year. Other airlines are tapping the international flight market earlier than expected. Asiana Airlines also recently announced an investment in Busan International Air to move into the fast growing budget airline industry.

Opinion.
We talked about airlines many times in class and the professor told us that Asia is hub for correspondence like trade. It is important to expand their international flight services. There are many consumers who want to go to foreign countries that are in close distance like Japan, China or Thailand. Jeju and Hansung airline are known for low budget flight and mostly they fly in domestic. Korea Airline and Asiana Airlines monopolized the international flights. However, low budget flight airlines launched international flights in low cost and it will compete with major airlines. The consumers get the benefits when the companies compete with prices.

Competition heating up for budget airlines

The Korea Herald

By Ko Kyoung-tae

2008.05.27.

20600225_ Entry 12

Ford to make Fiesta in Mexico

2008-05-30T02:11:00.000-07:00

Automobile manufacturer Ford has decided to revive its subcompact car Fiesta to the United States. It will soon begin to manufacture in Mexico. Fiesta is well known in Europe, Asia, and South America, selling total of 12 million since it was introduced in 1976. However, it was only sold in America from 1978 to 1980. Ford has selected Mexico due to its cheap human labor. However, the decision could be a blow to unionized U.S. plants. Many analysts claim that US is already competent enough to make small cars in the country and still make money. It is known that most of the small cars sold in the US are made overseas. Fiesta is a crucial part of Ford to make the firm a globalized one, and sell same versions to many countries such as Europe, Asia, and South America.
I think Ford’s intention to make another version of Fiesta is a good idea. Fiesta was only sold in the US in the late 1970s and early 1980s. Many people would miss the small car that can be economical. Nowadays, especially in the times when fuel prices are rising steeply, subcompacts are the most favorites by many people. I think Fiesta could be a big hit in the US once it is unveiled. But, before selling, I think a good marketing strategy will be needed. Since it was not sold in America for more than 20 years, many people might have forgotten. It is crucial to promote actively through TV and sponsoring various sports events. Also, holding an event concerning about the History of Fiesta to recall what Fiesta was back in the days. Moreover, giving out Fiesta for free to people who solve certain questions or randomly selected will also draw people’s attention.

Source: http://www.businessweek.com/ap/financialnews/D90VJ95O1.htm

Student ID#: 20400542 - Entry #12

Which Auto Brands Should Go?

2008-05-28T09:20:00.000-07:00

When you were a CEO of a car company and you can see some of brands are not doing well, what would you do? You might kill off or sell the brands to reduce cost and focus on the brands that are doing well. However, it is not easy to do that because of three big problems. alienating customers, angering dealers, and incurring substantial costs for laying off workers and shuttering plants. Relationship is important with customers, dealers and workers. If you sell your brand to other company or kill off, workers who are potential customers will lose their jobs and they will have bad image of your brand.

Repositioning
One way to solve this problem is repositioning. In the U.S. market, Buick is a near-luxury brand at best, but in China, Buicks are big enough and prestigious enough to be driven by a chauffeur, which is popular with the country's wealthy new capitalists.

Reorganization
Volve is a good brand of Ford co. because it is set as the safest car in customers mind. However, its cost structure is too high. Even though you sell your car with high price, if the cost of making car is too high, you wouldn't get profit. You need to reorganize to make profit.

Opinion
I learnt that there are many things to think about manage your brand rather than just number. I had thought that if I saw the declining number on a brand and I already have too many brands such as GMC, I would think why wouldn't they sell or kill off the brand. However, I learnt that relationship is important facts to keep their brand.

Source: Jim Henry, 'Which Auto Brands Should Go?', Business Week, May 5, 2008
http://www.businessweek.com/lifestyle/content/may2008/bw2008052_143266.htm?chan=rss_topStories_ssi_5
Student #: 20400152 - Entry 12

Samsung’s New Strategy under New Regime

2008-05-23T00:12:00.000-07:00

It is always worth to watch closely the ever-developing Samsung that strives to become one of the prestigious firms in the world. Lee Yoon Woo, the newly inaugurated chief executive officer of Samsung Electronics Corp, said that they would try harder to become one of the leading companies in the world in the field of global electronics, and came up with a “creative management” strategy. He continued saying that until now, they have focused on speed and efficiency, but they would keep those as a basic principle and go further and expand more by using the “creative management” strategy. He also said that in order to put this into action, they would have to hire many intelligent personnel, focus on technology and the current market situation. CEO Lee especially stressed that through technology, they would expand the discovery of new skills and highly place the firm. He said he would unearth in the field of solution, new IT device, energy environment, bio-health.
His message conveys that he would enhance the previous skills more and adopt the new skills that have great potential. Also, by focusing on the current market, the customer’s value would be newly introduced and secure the place to get to the top.
It is likely in the future that many sections would somehow merge or split. Many developed countries use new products and business to lead in the current market. I hope that Samsung would also have a new engine to lead in the way in amazing management.

Source :Lee Sun-young, Samsung chief stresses 'tech management', Koreaherald, Lee Sun-young, may 22 2008.

Student # 20300489 Entry_11

Dissed Online? How to Fix Your Brand's Rep

2008-05-22T08:09:00.000-07:00

Today's consumers don't hesitate to post their comments, good and bad, on the Internet. Here are some tips for damage control The internet provides a massively extensive market for businesses to grow and expand, however it is also the host for websites where angry customers or disgruntled employees may unleash virulent, anonymous criticism about the company online. However unjustifiable or full of nonsense it may be, these comments or complaints will stay on the internet for a painfully long time available for people to read through customer feedback sites or search engines – these will seriously damage the reputation of the business. Quote “The Internet is like the wild Wild West and its contributors, some with questionable motives, can post what they want about a company, product, or service, allowing damaging postings to live on in search engines for long periods of time,” and these internet based comments are very hard to erase. Due to this newfound power that consumers have gained, it is very important for businesses to maintain their reputations. The article informs businesses of two ways to manage your company’s reputation: implementing a system where customer complaints can be dealt with and feedback can be used to improve services and products; launching a strong offensive side so that there will be more good comments about your company than the negative ones.
First of all, it is a widely known fact that the majority of customers will vent about a problem to the world but not bring the problem directly to the company. But just because they argue with the company, it doesn’t mean that the company should be waiting on their behinds waiting for their sales to drop. They should have methods of following up on the customer’s reaction or experience of the product or service they have provided. It should be noted that the most common complaints are due to the difference between customer expectations and product usability, and poor product quality. The feedback should be used to tweak your products and business processes to meet your customers' needs.
Secondly, once there have been negative comments on the web damaging your business’s reputation, you have two choices. Either ignore these comments and try to improve on future customer satisfaction or actually get in contact with the disgruntled consumer/employee to sort things out. Or, it might be better to create positive content on the web to suppress the effects of the negative effects. As mentioned above, make more positives than there are negatives about the company. But personally, this seems to be a sly move. On the other hand, sly moves may be unavoidable in the competitive market of the world today.

Dissed Online? How to Fix Your Brand's Rep

Business Week

by Karen E. Klein

May 19, 2008

#20600392

Entry #11

Asiana, ANA expand joint flight service

2008-05-21T22:33:00.000-07:00

Strengthen Alliance
Airlines are suffering because of oil price rise. Today's oil price is about $130. Within one year, the oil price has become almost twice. Therefore, airlines need to find the solutions. Asiana and ANA try to pass by this hardship with expanding joint flight service. The two air carriers currently maintain strategic collaboration in sales, operations, fuel purchase, and crew exchange. The two air carriers have been offering joint flight services on Korea-Japan routes since February last year. The new code-sharing deal covers 100 weekly flights on 10 routes connecting major Japanese cities such as Osaka, Fukuoka and Okinawa. They also bought each other's stocks to strengthen their alliance. ANA holds some 1.2 million of Asiana's shares, about 0.72 percent, while Asiana will has 3.1 million shares of ANA, a 0.16 percent of the Japanese carrier.

Opinion – Synergy
By sharing their assets and buying together, they could attract more people because customers might get satisfaction with expanded choices. When I have been to Japan, I used Asiana airline. One of stewardess was Japanese, but she spoke in Korean and look exactly like Korean. I was very excited and interested about getting service from Japanese in a Korean airplane. They also can save money, since they buy oils together. They can have buying power, when they deal with oil companies.Since world has become globalization, it is necessary to collaborate with foreign companies if necessary. They could have synergies, such as saving money, having bigger markets by sharing their market.

Source: Ko Kyoung-tae, 'Asiana, ANA expand joint flight service', Korea Herald, 2008. 05. 22
http://www.koreaherald.co.kr/
Student #: 20400152 - Entry 11

What Your Handshake Says About You- An Etiqutte in Business

2008-05-21T10:24:00.000-07:00

Whether you’re in business or just a social community, you meet people And, one of the very first thing that you do when meeting a person is that you shake hands with the person. Handshaking is the very fundamental and the first way of greeting one another, often showing amiable manners. Here are some good ways of a good handshake. “Connect the web between your index finger and thumb firmly with the other person's and pump two or three times. This is confident and always appropriate.” Be sure to be concise, and always look into the person’s eyes. It’ll show that you are eager to meet that person and do the work. However, a limp handshake coveys the meaning that you lack self-confidence or sometimes you are not happy with the person. Also, grabbing the person’s hand with too much strength and placing your hand on top of other person’s show your aggressiveness.
Handshaking is very important when greeting people. Especially when doing business, it is your first impression to the person that you are going to do business with. A good handshake would carry the message of your strong intention on meeting the person in a friendly way. Then, it is most likely that the other person would feel good and comfortable and the business would go smoothly.

Source: Choi, What Your Handshake Says About You, Businessweek, Unknown.

http://images.businessweek.com/ss/08/04/0409_handshake/index_01.htm?chan=smallbiz_smallbiz+index+page_best+of+smallbiz+magazine

Student ID#: 20400542 - Entry#11

E-mart considering opening gas stations

2008-05-21T09:40:00.000-07:00

E-mart is the largest supermarket chain in Korea run by Shinsegae. E-mart is considering opening gas stations because the government is encouraging more firms to enter the oil distribution market to have price competition. Koo Hak-su, who is the chairman of Shinsegae said they are considering opening gas stations at about 10 stores in other than Seoul region. They will start next year at the earliest. A spokesperson of the company told that the objective of opening gas station is to offer better service to customers because they are not seeking to make profits by just 10 gas stations. They wanted to help retail giants run fuel stations under their own brands after the government announced plans in March. It is because the government is trying to reduce gas prices that is a burden for customers. E-mart will offer gasoline, diesel and other oil products at lower prices than other pumps. Other retailers like Samsung Homeplus and Lotte Mart are also consider to opening gas stations.

Opinion.
This is one of marketing strategy called diversification strategy. It is introduces a new product or service to a market segment that currently is not served. E-mart is introducing new product and the segment also changed because the target of supermarket E-mart is more focus on house wives and the gas station is on husbands. I think this strategy will help customers because they are having hard time on oil prices in these days. This will also give benefits to the E-mart on advertising because customers will have image of E-mart as cheap price on gas and also supermarket. Another benefit is the customers will have information about supermarket when they visit gas stations. This is the merit of scope. The one thing they have to look out for in future is the competition of Samsung Homeplus and Lotte Mart.

E-mart considering opening gas stations,

By Jin Hyun-joo,

2008.05.20,

The Korea Herald.

20600225_ Entry 11

Microsoft Joins One Laptop per Child

2008-05-16T07:05:00.000-07:00

The nonprofit organization's alliance with Microsoft will bring Windows XP to the poorest children, and could give OLPC a much-needed boost

The One Laptop per Child organization was set up to to provide millions of inexpensive laptops for use in schools in developing nations. However after four months have passed since the breakup of the company’s alliance with tech giant Intel (INTC), OLPC has set up another alliance with Microsoft (MSFT). The plan was to make the Microsoft Windows XP operating system compatible with OLPC’s XO laptop. XO was designed to help educate the poorest children of the world. This new alliance can be seen as one with very good timing, and with Microsoft on board, tens of thousands of educational software applications designed to run on Windows can now be used on the XO, making it more useful in schools and acceptable to government ministries. However it seems now that Linux, the open-source operating system that used to be on the XO (before MSFT), is a better choice because it is constantly being improved, whereas Windows XP, first introduced in 2001, is no longer being updated by Microsoft. Also, the idea of XO was to provide a laptop that children could use at school and home. However, the goal was a $100 dollar price tag, but the price tag has risen to just under $200. Some developing countries have been shocked at the price and have turned to other alternatives. This is why only a few tens of thousands have been ordered (compared to the planned 150 million laptops). This is a major setback for OLPC because it seems that the NGO had focused too much on shipping computers in large volumes. However it does not seem to have lost its educational philosophy yet. Microsoft has spent over a year adapting its operating system for the XO laptop provided extra features for the laptop including software that supports electronic books, writing pad, camera, and a display screen that is easily readable outdoors. The good news is that it only costs around $3 to add Windows on the laptop. Also, Microsoft gives the NGO a big advantage because Microsoft is a widely known and accepted operating system so the organization hopes that the introduction of Microsoft will provide a major selling point (advantage) throughout the world.

Microsoft Joins One Laptop per Child

by Steve Hamm

Business Week

May 15, 2008

#20600392

entry_#10

The future of Marketing with good Money-Technology cooperation

2008-05-16T04:22:00.000-07:00

`This is the inaugural year of SK Telecom's joining the Chinese convergence market, and we are now expanding our business to games from telematics, music and entertainment,'' Lee Seok-hwan, president of SK Telecom China Holding, said in a statement. `By operating Magicgrids, we will raise our core competence in the Chinese online game market as well as positioning ourselves as a pan-Asia game hub.''
Magicgrids is an online game developing and publishing company and its main development is Patricts that was released last year. SK Telecom announced it will buy 30% stock of the Chinese firm Magicgrid, and signed a contract with Hong Kong branch Magic Tech Networks to invest 7.8 million US dollar, acquiring 30% of the stock simultaneously.
SK Telecom said that they bought out the large amount of stock because of the firm’s scale in the Chinese game market. The fact that online games, as well as music, is the sole provider in China, the sales growth development has reached 82% and the Chinese online game market worth 1.2 trillion won in 2007 has drawn the attention.
Online game industry is a higher value-added business. Also, many companies have depended on developers and engineers, so although many made good games, they lacked money-generating knowledge resulting in bankruptcy. If they don’t constantly seek changes, they would fall behind their competitors. I think that SK Telecom would provide a definite way to use the mobile infrastructure so that it would place itself in a higher position than that of competitors by mobilizing the online and mobile.

Source : Cho Jin-seo Staff Reporter, SKT Buys Stake in Chinese Game Firm, Korean Times, May 16 2008.

Student # :20300489 Entry_10

The iPhone in Europe: Lost in Translation

2008-05-15T23:40:00.000-07:00

Six months ago, Apple sold 350,000 iPhones in Europe, less than their expected forecast of 500,000. And, many analysts say that in the first quarter of 2008, the sales have dropped to 300,000. Apple’s cell phone, which is called iPhone, has been a big hit in the US. However, it is struggling in Europe. It only provides service in three countries: Britain, France, and Germany with one mobile phone service provider, O2, FTE, and T-Mobile respectively. It has cut exclusive deals so that it can only sell the phones via one service provider, same strategy that it has used in the US. Professionals say that the main reason that it is not doing well is because of the high price. You’ll have to pay 600 dollars for a phone, whereas you also can get Nokia or Ericsson one for free. Furthermore, there are additional fees for wireless internet and other services.

I like iPhone and it has a great design. However, Apple has chosen a wrong marketing strategy. Like Korea, many European countries sell cell phones costing only little amount, or even give out free. The 600 dollars price tag is relatively burdensome where if you can get a much high-tech one for free. I think in terms of technology, iPhone is behind that of Samsung, Nokia or LG. Apple has to carefully consider understanding the local market situation of the country that it is willing to sell to. One might consider buying if the design of the phone is better than other ones that have similar price tags with better technology, but would less likely buy if the margin of the cost is big. Moreover, having an additional fee for wireless internet and other services is not a good idea when most people just use for calling. Its strategy to use only one service provider is also not a good idea when there would be much more variety of choice for customers to make when using other service providers at the same time. Apple has to understand that not all the countries are like the US. It has to take a different approach and always closely monitor the local market situation.

Source: Schenker, The iPhone in Europe: Lost in Translation, Business Week, April 16, 2008

http://www.businessweek.com/magazine/content/08_17/b4081000500950.htm?chan=magazine+channel_what%27s+next

Student ID#: 20400542- Entry# 10

MySpace, Facebook Get Serious About Asia

2008-05-14T22:58:00.000-07:00

Go where the market is
If you were Korean, you might heard of Cyworld which is the biggest social network website in Korea. However, you might not heard of MySpace or Facebook. Both MySpace and Facebook is the biggest top two social network websites in the U.S. They ignored Asian market before, but recently they start to open Asian local website with Asian languages. The reason is that Asia Pacific users are getting larger. Friendster has become the largest social network in the region with 35 million Asia Pacific users, out of 50 million worldwide. They also cannot ignore the Chinese market. In China, 230 million people are using the Internet, more than in the U.S.

Localization
Myspace opened Korean website with Korean in March. To localize in Korea, they created MyspaceTV and Music contents. They judged that Korean go wild with enthusiasm. They also think that UCC is bit hit in Korea, so by providing place to contest like MyspaceTV, Korean will visit and use a lot.

Opinion
I believe that the choice to open Asian website and trying localization was good choice for both Myspace and Facebook, because Asian market is bigger. However, I think that they should try harder to localize.
I have used Cyworld for a long time. I signed up Facebook recently and it was not handy for me. The interface was different and culture was different. For example, Cyworld has more group culture than Facebook. Facebook is more personalized. Facebook is also hard to hide information such as memos that guest wrote. I think that both Facebook and Myspace need time to localize in Korea. They need to research more on Korean website and Korean culture.

Source: Olga Kharif and Nandini Lakshman, 'MySpace, Facebook Get Serious About Asia', Businessweek, 2007, 10, 08

http://www.businessweek.com/

Student #: 20400152 - Entry 10

MetLife bets on retirement market

2008-05-14T10:08:00.000-07:00

MetLife Insurance of Korea has focus on the fast growing retirement financial market. They are gong to attract more consumers through a variety of pension plans. Stuart Solomon, who is the CEO of the MetLife Insurance, said the Korean retirement market has big growth potential. According to the company, they will have a training course with Seoul National University for senior financial advisors in March. The domestic variable insurance market is growing quickly and the variable annuity sales also will rapidly expand in few years. The total sales of variable insurance products already have increased by about seven times over the past two years. Variable insurance products are different from regular life insurance because the contributions by policyholders are invested in stocks and bonds to produce high returns. In these days, many local consumers are interest in the high risk, high return products. MetLife aims to increase its share to around 5 percent in Korea that will reach the world's seventh largest insurance market.

Opinion.

I think MetLife Insurance found good niche market. Many young marriage couples avoid birthing a child and it made an aging society. Since many people worry about their declining years, they will prepare their future to have many insurance products. However, I think high risk and high return product is not fit for retirement market, because retire people want high return with more safe way for their future. We talked about in class that insurances are one of services. The consumers have expectations on retirement insurance products and the company has to satisfy consumers without any caps.

Source_ MetLife bets on retirement market,

The Korea Herald,
by Ko Kyoung-tae,
2008.05.14

20600225_ Entry 10

From Bricks and Mortar to Digital Music Master

2008-05-08T23:03:00.000-07:00

As music merchants struggle to adapt their business models, one New York shop is embracing the Web
Summary
The internet has steamrolled music retailers and as consumers fill their Ipods with digital downloads (both legal and illegal) the sales of CDs (hardware) has dwindled noticeably. 25% of the US record stores were gone by 2005, a total of 1900 stores. This is mainly due to the increase of internet sales from $20 million in 2003 to $2.9 billion in 2007, online and mobile downloads accounting for 15% of all music sales last year. This is why Josh Madell, the owner of OTHER MUSIC started to look for a new way to expand their business model while at the same time upending their old one. However it is noted that data suggests that small retailers have a better chance of staying in the market than large ones. This is because OTHER MUSIC specializes in selling obscure CDs and Vinyl, which have higher markups and attracts collectors giving it an ‘edge’. This is because casual customers more interested in singles than albums can download their fix more easily than the fanatics who haunt places like OTHER MUSIC. Madell believed that hard work will see entrepreneurs through, and wanted to bring the experience of shopping at his store available on the internet.
The digital download store that OTHER MUSIC launched last year now accounts for almost a quarter of sales. This may be because labels/artists that may not be featured on other sites turn up on OTHER MUSIC first, and it also uses eBay and a mail-ordering system.
However, while OTHER MUSIC expands to the online world, it tries to stay in focus of what its original business plan was (it created identity and a unique advantage). For example, the store sells tickets to local concerts and hosts free in-store shows. Both get customers in the door and build the Other Music brand as a place for aficionados (someone who has an intense, occasionally overwhelming liking). The in-store shows are recorded and archived on the store's Web site, along with artist interviews, which can boost sales online. Madell hopes to have sponsors underwrite the video series soon.

Opinion
Due to the explosion of digital sales, it became inevitable that the company had to attempt a different approach to its music business. It is true that a lot of small companies/retailers face many difficulties in situations where they are disrupted by technology. However, through hard work and effort (most probably research & development included) they were able to make a successful entrance into the global market through the internet (that provides economies of time/place/scope). Madell states that “there's a lot of opportunity if you're willing to shake up your way of thinking, and approach things in different ways and experiment and take chances”. However, I am sure that he is aware of the fact that there be no end to the efforts he has to put it to keep up with the ever changing technologies of today.

From Bricks and Mortar to Digital Music Master

by John Tozzi

Business Week

April 21, 2008

#20600392

entry #9

Luxury marketing as nationality

2008-05-08T15:13:00.000-07:00

Bend over backward recent international motor shows, the exhibitors at the Busan show seem to be focusing on luxury vehicles more than the environment. This trend could partly be explained by the fact that, with the exception of Hyundai Motor Co., Korean carmakers have little to show for in the area. But foreign carmakers taking part in the event are also downplaying the green theme that has dominated other shows.
Hyundai Motor Co.'s display at the biannual event has the largest number of cars, and the company is the one of the few carmakers to exhibit eco-friendly cars.
Kia Motors has been placing increasing emphasis on design recently, and that is evident here.
GM Daewoo, Winstorm Maxx is the latest trim level to be added to the SUV Winstorm and comes with a 2-liter turbocharger diesel injection engine that puts out 150 brake horsepower.
As with Renault Samsung, Ssangyong Motor is not showcasing any new vehicles or concept cars. The focus of Ssangyong Motor's booth is on the luxury sedan Chairman which was launched earlier this year.
At this year's show, 14 foreign auto brands from across the world are showing their latest vehicles.
One theme of this shows is looking at Korea's status conscious society. Although some might see this as a modern trend, social status has deep ties linked to the past. In fact, Korean society during the Choson Dynasty was highly stratified and hierarchical. In today's society cars have become a strong status marker. This article notes the recent trend. For example, men in similar dark suits, white shirts etc. Cars are one of the few signs of distinction and achievement.Luxury cars, local retailers say, are enjoying brisk sales lately, which are pushing up the high-end market to new heights.Why the splurge? Cars not only make a fashion statement, but a status statement, I think.

Source : Choi He-suk, Busan Motor Show highlights luxury cars, The Korea Herald, May 5 2008.
Student # 20300489 Entry_9

Kumho Tires to Raise Overseas Production

2008-05-08T09:38:00.001-07:00

Kumho Tires Company plans to expand abroad production to save on costs and better tap the global market. Oh Sae-chul, the CEO of Kumho Tires Co. said manufacturing at overseas plants costs lower than domestic production and the overseas factories are clearly more productive. The world's tenth larges tire maker factory is in Georgia, The Unites States. The goal for this year is to increase annual output by 2.1 million units through the investment. The company will invest $165 million to the factory in the second half of next year. Kumho Tires build a factory in Tianjin, China last year and it can produce 5.25 million units. They are also constructing new factories in Changchun, China and Ho Chi Minh City, Vietnam. Mr. Oh is predicting overseas production would be around 34 million units this year. It is more than half of the company's total annual output. Since, oil and commodity prices raised, the price of tires also will be raise in the coming months. Kumho Tires already increased the price by about 10 percent in the U.S. market this year and the higher prices are not a problem because other global makers also raised the prices.

Opinion.
We had been talked about global marketing in class. There are 2 things to think about first before go aboard. First is market demand like how much do they spend? Second is population, the companies should think about how big is the market. For this reasons, I think Kumho Tires Company choosing U.S. and China for the market is the good idea. It is very risky to globalize. To shrink the risky is having a partnership with a domestic company like Chrysler in U.S. Kumho Tires Company is planning to supply tires to Chrysler, Hyundai, and Kia from their U.S. factory. They have to be careful to expand productions in foreign countries.

Source_ Ko Kyoung-tae, Kumho Tires to Raise Overseas Production, The Korea Herald, 2008-05-08.

20600225_ Entry 9

Hyundai Kia, Microsoft form tech partnership

2008-05-08T08:53:00.001-07:00

Hyundai Kia Automotive Group and Microsoft Corp. have signed a partnership deal to work together between a car and computer software maker. Kia believes that IT and electronics play important roles in auto industry, and the majority of technological advances in the auto industry are from two areas. From 2010 in North America, Hyundai Kia vehicles will be putting a voice-activated automobile audio system that allows portable devices like MP3 players and mobile phones to be linked up to the car’s system. Moreover, the two firms will be collectively taking part in motor shows and Consumer Electronics Show together next year.
I think this is a great deal between two companies. Hyundai Kia is becoming one of the most successful automobile companies in the world with two manufacturing plants in North America. And Microsoft Corp, without a doubt, is the world’s most successful IT firm. Especially nowadays, in the era of IT and electronics, Hyundai Kia could benefit a lot by having MP3s and mobiles phones connected to the vehicles. In doing such, not only people would be able to listen to music, watch movies, record voices, and chat with friends and families while driving with high-quality, they can also upgrade the software and possibly download music and programs through internet. Microsoft can try new technologies to open the way for the vehicle-support industry, and make its brand known by taking part in motor shows.

Source:Choi He-Suk, Hyundai Kia, Microsoft Form Tech Partnership, Korea Heard, May 7, 2008.

www.koreaherald.com

Student ID#: 20400542 - Entry#9

Death Marketing

2008-05-04T09:16:00.000-07:00

Tigers leave their skin and men leave their name
In Korean proverbs, 'Tigers leave their skin and men leave their name'. This proverb is proving recently in marketing world. Hyundai Heavy Industry used Jung Joo Young who was founder of Hyundai Corporation and died several years ago. In the theaters, old movies, such as 'Ben-hur', are playing to remember old stars such as John Charles Carter. Jang Kuk Young who is a Hong Kong actor died in 2003 is also remembered once again. The seat share of 'Abi JungJung' which is Jang Kuk Yong was on is 90% in Seoul. There were all success in their jobs and people loved them. People want to reach to see the success one again. Companies used this psychological state in their marketing. The death marketing is also effective because companies do not need to worry about scandals.

Opinion
When I saw the commercial of Hyundai Heavy Industry that Jung Joo Young was on, I was surprised because it seemed he was alive. I also felt that Hyundai Heavy Industry try to work hard and will be more success than now because the image of Jung Joo Yong is very advantageous and successful person.
If the movie 'Abi JungJung' which jang Kuk Yong was on plays in Pohang, I would go to see the movie because he was a big star in 90s that I remember very handsome and manly. I used to be like him.
Both of them not only have good images but also bad images. However, I used to remember good images rather than bad images for a dead man. I think it is not only I, but also most people remember good images more.

Source: MoneyToday Star News
http://news.nate.com/Service/news/ShellView.asp?ArticleID=2008042016013995167&LinkID=2&lv=0

Student #: 20400152 - Entry 9

Nissan: a new angle to drive sales

2008-05-02T07:22:00.000-07:00

“Now you can drive with a bird's-eye view.”

Nissan introduced the idea of a new sort of technology – the Around View Monitor – that can be set up on cars. Using four separate cameras, the monitor displays and image of the vehicle from above and this helps the driver to visually confirm the vehicle’s relation to the lines around the parking space. With this new technology, the driver can now position the vehicle for parallel parking or park the car in a smart way with ease.

Their idea of this new technology was good, and made the introduction effective because they went and identified a consumer need, developed a ground-breaking means of addressing it, and then communicated the result in a compelling, easy-to-understand way that also leaves the customer intrigued by the product and feeling good about the company.

They asked questions that would appeal to their target demographic segmentation group by asking questions such as:
“Have trouble seeing the curb or worried about scraping another vehicle as you parallel park your van? No problem. Just fire up the AVM and breathe a sigh of relief as you glide right into that tight parking space.”

However, there may be cases that however effective advertisements may be, the product would not be popular if the product itself did not sufficiently/adequately match the speculations that the advertisements promoted. In the case for Nissan, they had many features that would satisfy their customers. The encouraged customers to use the product by promoting three main features of the new AVM system:
1. Easy-to-understand
The birds-eye view makes it easy for the driver to position the vehicle for parallel parking. The front/rear view enables the driver to simultaneously confirm the front or rear of the vehicle.
2. Easy-to-use
By displaying the rear view and front-side view simultaneously, the driver can easily confirm the two most worrisome areas; the rear and front assist side of the vehicle.
3. Easy-to-see
The super-wide angle/high resolution camera creates a clear image after conversion to show the virtual image (described below)

However, as a customer that probably does not fit Nissan’s group of demographic segmentation, I do not find this feature very appealing, but this is only my opinion.

20600392

Entry #8

Source : http://www.brandrepublic.com/Marketing/

Code Marketing

2008-05-01T23:22:00.000-07:00

Many banks are moving rapidly to go with the new regulation that the government has put out, “The Code Marketing.” Banks are busy in trying to support the programs that came out since the new administration has taken over the office, like security of citizens, bolstering middle-size businesses, etc. The Industrial Bank of Korea will launch “Serving Common People Passbook” from April that would benefit at the maximum 6.0% of interest. This Passbook does not have the minimum limits in putting the money into the account, but in order to prevent rich people from benefiting from the service, the bank only allows up to 20 million won of deposit and 500,000 won of monthly installment savings per person. One of the bank officials said that in previous year, only a large sum of amount was the target in giving out the high rate of interest through special-deposit services, this one took an unconventional initiative for targeting normal people that serves the same amount of rate on little amount of money. It is a vice-versa program.
Likewise, we can say that the enhancement of services towards common people is one aspect of code marketing. Banks are going in accordance to the MB agenda that tries to develop small businesses through Korea Investment Fund and settle the fund of small businesses and the people through Small Income People Fund and so on. In this complex and diversified society, they try to meet the needs of the people and the small businesses through the MB agenda, moving away from the relationship business to observing different kinds of services to make profits.

Source : http://www.fnnews.com/view?ra=Sent0701m_View&corp=fnnews&arcid=080330221823&cDateYear=2008&cDateMonth=03&cDateDay=31

Student # 20300489 Entry_8

Star Struck Ads Not Always Good

2008-05-01T17:52:00.000-07:00

One-star/One brand
Hiring good image of entertainers is effective to build companies' good image. People recognize products' image same as entertainers' image many times. Therefore, in Korea a one-star/one-brand is already fundamental. When you watch TV commercials, you might see only few entertainers in several commercials. Jang Dong Kun, Kim Tae-hee, Jun Ji-hyun and Lee Young-ae are the people you can always see in the TV commercials. They advertise several products and use similar images to advertise the products. This gives advantages to the advertiser who uses same an entertainer later because if a product that an entertainer advertises has been succeeded, the late advertiser got more reliability that from the former advertise. The advertisers want to make sure that advertises are effective to consumers. Therefore, they use entertainers who are already proved their effectiveness to consumers. However, it cost a lot to hire the entertainers. Lee Hyo-lee charges around 700 million won a year. It also has a risk that if the entertainers have problems in their private life, the images of products or the brands that the entertainers advertised will be destructed. One more risk is that consumers sometimes got tired of watching entertainers too much.

Opinion
I like to watch TV commercial and I admit that I have been effected by those. I know that products that do not have same quality as good images of entertainers, but I easily was shaken by the entertainers.
By the advertiser's perspective, I will not hire the proven entertainers. First of all, they are really expensive. With that money, I rather promote campaigns or events that consumers can remember in order to improve brands. Second, if a contract with the entertainers is finished, I have to pay more or need to find other entertainers. However, it is not easy to find similar image of former entertainers and there is risk that people might not like new entertainers that I hire. I would not take the risks.

Source: Star Struck Ads Not Always Good, The Koreatimes
http://www.koreatimes.co.kr/www/news/biz/2008/04/123_23274.html

Student #: 20400152 - Entry 8

Nike, Nash Save the Environment by Talking Trash

2008-05-01T00:27:00.000-07:00

NBA’s Phoenix Suns all-star guard Steve Nash has jointly produced a movie with Nike which has an environmental message to tell. The film is produced by Nash’s production company, Meathawk, and it is called “The Six-Million Dollar Man,” starring Steve Nash himself and two of his colleagues. It runs for about 90 minutes. In this film, Nash wears Trash Talk shoes which he has been wearing since February. This pair of shoes is based on the Zoom shoe that has been already worn by him, and it is made from manufacturing wastes. He is in a game and lands hard on the floor. As soon as he lands, he is broken into millions of pieces and scientists rebuild him into the world’s first recycled man, much stronger than before. He and Nike came up with this idea to convey a message on recycling, coinciding with the Earth Day.
I think this idea of making a film conveying an environmental message is a good way to promote eco-friendly image. Nash has been wearing Nike’s Trash Talk shoes, and this gives an impression that Nike cares about the environment and is putting every effort about recycles. Nike is a world famous brand. Through this film-making, it has showed that making good sports instruments is not the sole goal of the firm, but also taking part in issues that many people worry about nowadays, like environment. This would clearly input a strong message on people’s minds that Nike is a warm-hearted firm that makes the best sports equipments and cares about the future of the earth. Just like the video clip that we watched yesterday during the class, Nike is trying hard to be the world’s renowned sports good manufacturing firm and this would surely be well known throughout the world. Moreover, Steve Nash himself will also give a good impression on people that not only he just a basketball player, but also an ambassador of environmental issues. This would surely intrigue people into knowing him more, coming to the games that would benefit NBA and eventually wear Trash Talk shoes.

Source:http://www.brandweek.com/bw/news/sportsent/article_display.jsp?vnu_content_id=1003793129

Student ID#: 20400542 - Entry# 8

The Coupons Decide the Menu of the Meal.

2008-04-28T16:42:00.001-07:00

It is getting harder to shop at grocery because the price is getting higher and higher. The smart housewife hold a coupon book when they shopping. There are 30% off on meats, buy one get one free of milk, or even short-term 50% off on fruits. Mrs. Kim Seung-Ock, who lives in Songpa bought 11 items and 9 of them are on sales or event products. She said, about 100,000 won is more charged on food expenses compare to 3 months ago. According to GS Mart, the rate of using coupons is increasing. It already reaches 58% and it is twice more than September (30%) last year. The rate of "Owl Family" is also keep growing. They come to grocery at late evening like 8-10 p.m. to buy clearance sales goods like breads, fishes, or vegetables. The groceries like E-Mart, Lotte Mart, and GS Mart are planning to increase more coupons and sale events to attract the customers.

Opinion.
I also like to use coupons or discount cards. When we talked about coupons in class, the professor gave an example of casino. They are sending coupons to customers who would not use it but come and spend their money. I was the one who did not want to use coupons because it kind of was shameful to me. However, when I forgot to bring coupons, I won't even thinking to buy unless I really need it. The middle-age men like my father also change their attitude toward coupons. They were shy to use coupons before, but they cannot ignore the discount in these days. Since, many people use coupons on their purchase, the companies other than groceries should consider the coupons as one of the profit.

Source_ http://news.joins.com/article/aid/2008/04/29/3110442.html

20600225_ Entry 8

In addition to the blog entry right below..

2008-04-25T08:03:00.000-07:00

The blog entry referring to the news article about Sony VAIO computers is missing some details that I forgot to add. It seems I am not able to modify it, so I will post the details here. I apologize for any inconvenience that this may cause.

Sony VAIO computers
20600392
entry number 7
word count 360
source: http://www.japanmarketingnews.com
http://www.vaio.sony.co.jp

Effective Japanese TV ads: Sony VAIO

2008-04-25T07:06:00.000-07:00

Japan’s Sony originally launched is VAIO line of computers emphasizing only on the quality of computers itself (eg the multimedia readiness, various extra functions). However, laptops these days are all similarly equipped, so the marketing team of Sony has chosen to promote their VAIO line by emphasizing the fact that the brand (VAIO type C) is suited for creative people in their recent ads for the Type C model and using a website on the internet. As we learnt in class, this method of increasing sales is maximized by using effective promotional methods: use of internet; appealing to buyers by using psychographic(lifestyles, self-concept) segmentation.

Sony used psychographic segmentation by claiming that VAIO is “for people who express themselves” by offering the type C model in 5 different shades of color. They linked the shades of color to the idea that every individual can evolve into whomever they want to or were meant to be. Or in other words, show their true colors. They also linked each color with well-regarded/famous people, and each person (profession) shared a message with each color. The colors they used are red, blue, pink, white and gold. Some examples of the famous people are:

Blazing red - represented by CHAR (Japanese musician) – message: “live through your instrument; bring song to the world every day”
Blazing red – represented by MACHIDA KOU (Japanese writer) – message: “use words as your weapon”
Indigo blue - represented by ONOE KIKUNOSUKE (Japanese actor)

I think the choice of using different colors to express a unique feature that only VAIO offers has been a very effective method. Although I am not aware of the actual figures of sale increases, by just looking at Sony’s VAIO line website, it makes me (a student who already has two computers) want to buy a new computer from VAIO. Also, Sony has challenged the minds of the buyers by asking the question “are you showing your true colors?” Sony almost gets you to think that if you are someone who expresses yourself, then you NEED to buy this computer. (즉, 오기로라도 사게 만든다는) I don’t know what age group VAIO targets, but it absolutely captured my attention :D.

Is Nike only after profits?

2008-04-24T23:37:00.001-07:00

It seems like for Nike, only “major” games exist. Last October, Nike Korea has signed a sponsorship deal with Korean Football Association worth 49 billion won, both in cash and equipments. It is also sponsoring baseball and basketball, but compared to football, the scale is relatively small, mostly supporting with equipments, not cash. It is because Nike is sponsoring vastly to sports that would show results by visible, like football. One of the basketball association officials said that because the sales of basketball uniforms and equipments have declined, Nike tried to belittle the sponsorship also, but they were able to maintain the current sponsor-level due to consistent convincing. In amateur sports, Tae Kwon Do is the only sports that it is sponsoring, mainly because it is most likely that Korea will gain gold medals in the martial art event. Recently, Nike has been criticized for its’ small-scale marketing, with less than 100 days left until the Olympics. Is it OK for the most popular global brand of sports instruments to be indifferent towards sponsoring “unpopular” sports, only focusing on so-called “lucrative” sports? If a global firm is only after profits, from long-term point of view, it cannot neglect the fact that there will be a possibility it’ll go in the opposite way. In sports marketing, it is undeniable that sponsoring sports that many people are fond of is the main target. However, when Nike sponsors other unpopular and amateur sports with a warming heart to embrace them, many people would find it warm-hearted and will be a great partner to them.

Source : http://www.segye.com/Articles/NEWS/SPORTS/Article.asp?aid=20080418001781&subctg1=&subctg2=

Student # 20300489 Entry_7

MLB, One A Day Sign Marketing Deal

2008-04-24T20:52:00.000-07:00

Pharmaceutical giant Bayer HealthCare has signed a 4-year deal with Major League Baseball. Bayer’s main selling product, One A Day multivitamin, will be the official multivitamin of the League. One A Day will also be helping out MLB with alliance with TV, print, and internet, stadium signage and packaging. It will be at the presence when there will be an All-Star game, but will not be showed on ads. Signing will also help Prostate Cancer Foundation where every time there is a strike-out in a game, 10 dollars will be donated to the foundation. The pharmaceutical giant has said that its’ main target is men over 50, and estimated that one-in-six-men will be affected. It also had a tremendous timing of the deal where it is said that there will be many record breakings this year.

I think what Bayer HealthCare has come up with is a great idea. Major League is considered one of the most lucrative sports leagues in the world and many men like to watch either on TV or at the stadium. Especially, when the prime target is men over 50, MLB is the best place to invest in. Baseball has already become a prime culture in America. People over 50 like to go to the stadiums where the game goes on for at least over 2 hours. They would bring their children and grandchildren, and watch the game as they are relaxing and enjoying their time together. At the baseball stadiums, there are many events to enjoy for families, and places to go for them. They would naturally have the chance to see and experience One A Day vitamins, and considering their age and health, they would most likely buy those. This surely is the most attractive point of investing. Also, by signing with MLB, Bayer is inscribing an image on people’s mind that it is practicing altruism. It’ll donate 10 dollars every time there is a strike-out in a game to the Prostate Cancer Foundation. This is charity, and people will have a good image of the firm. Moreover, this year, there will be many record breaking games. Thus, Bayer has put out a 1-million prize for the record breaker. This surely will also attract many people’s attention.

Source: http://www.brandweek.com/bw/news/sportsent/article_display.jsp?vnu_content_id=1003787493

Student ID#: 20400542 - Entry #7

Foreigners Can Run Hotels, Saunas in FEZs

2008-04-23T06:53:00.000-07:00

On Tuesday, the government permits foreign to run hotels and spas at medical centers. They already operated hospitals in the free economic zones (FEZs). The Ministry of Knowledge Economy said, letting foreigners to run hotels, spas, saunas, and tourist facilities will help to attract more visitors from overseas. This is the latest bill after letting individual foreign investors and institutional investors invest in the domestic hospital. The New York Presbyterian Hospital is planning to open a 600 bed hospital in the Songdo FEZ near Incheon International Airport by the end of this year. Incheon, Busan-Jinhae, and Gwangyang are FEZs, where foreigners are able to operate schools, hospitals, and even get tax breaks. The government is scheduling to add more to make bilingual English-Korean cities and they are expecting to get benefits from it.

Opinion.

We talked about Songdo, and Incheon FEZs in the class. They do not do good jobs on foreigner cities because Koreans are more than foreigners in the international city and the most investors are also Koreans. I think we need to do a lot of research not to fail like Euro Disney. The government should focus on Songdo and Incheon rather than expanding more FEZs. To have international hospital, hotels, and saunas is a good idea because Thailand (from a documentary we saw in class) is earning much foreign currency by an international hospital including tourism, massage, and accommodations. We should make Songdo FEZ like Thailand. We are a step forward because we made $61.6 million from foreign patients in 2007, according to Korean medical institutions. Now, we have to use this merit of FEZ to attract more foreigners to come back again to Korea.

Source_ http://www.koreatimes.co.kr/www/news/biz/2008/04/123_22938.html

20600225_ Entry 7

Color Mareting

2008-04-19T00:55:00.000-07:00

What is your favorite color?
My favorite color is 'Blue'. I wear blue jeans and blue shoes almost everyday. My favourite hat's color is also blue. One third of my clothes' colors are blue types. Whenever, I see blue, I feel that I’m being calm and clean. I feel comfortable with blue. I believe that most people have their own favourite colors. Companies also have their own colors. Whenever we image companies, we are able to image color first easily. For examples, Coca Cola's color is red. Samsung's color is blue, and so on. Companies use colors in order to be remembered by consumers. However, some companies give up their own colors to get more consumers.

Catch the one of biggest market 'China' with color
China has 1.4 billion populations. Therefore, many global companies try hard to catch Chinese. One way to catch Chinese is changing companies’ own colors to red. Pepsi’s color was blue but they change their can products’ color as red in China. Chocó pie, one of the favorite pie in Korea, also changed their color blue to red in China. Cham-e-sle, the first soju brand in Korea, changed their color green to red in China.
Chinese love red color. Red is usually used by companies to stimulate consumption in product. A study shows that red stimulates consumption. However, there is more meaning for Chinese. Red means 'best luck' for Chinese. They believe red is their color. Therefore, they feel special or comfortable whenever they buy or see red products.
Chocó pie resulted in increasing sales 35% and 65% in Beijing and Shanghai in each. This proved that color marketing is effective.

Source: '색깔있는 유혹...14억 잡는 '컬러 변신'바람', 중앙일보

http://news.joins.com/article/3113824.html?ctg=12

Student #: 20400152 - Entry 7

Royal Marketing!!

2008-04-18T14:48:00.000-07:00

There are seven ways of high-class marketing. 1. Learn from renowned brands 2. Wrap up with full of cultural odor 3. Segment and put customers into one 4. Hold events of experiencing high-quality products 5. Always impress customers 6. Frequently link up with mass media that they use 7. Partner with other brands. By having a mind “if it is possible to satisfy relatively picky Korean rich people, then it is also possible to satisfy other rich people around the world,” it is worth of targeting using high-class marketing new rich people from countries like China, Middle East, or Russia. If such high-class marketing is successful, then it is possible to have good sales and be less influenced by inflation due to set high-class customers. (In reality, during IMF, there were several renowned brands that had good sales.) Also, different from normal customers who are influenced by cost changes, there would be less cost flexibility. Most of high-quality products have high cost margins. However, high-class marketing does not end with just selling and buying. Many customers bring their friends and colleagues to join them in buying which is greatly effective in making the brand possible to persist fashion trend and improve the brand image. I believe that due to such reasons, high-class marketing is highly attractive. It is just not widespread yet due to lack of social recognition and so on, there would be no reason for a firm to not input such high money-making and brand system to their marketing strategy.

Source : http://www.kbizweek.com/cp/view.asp?vol_no=644&art_no=45&sec_cd=1001

student # 20300489 Entry 6

McDonald's fails to stop vouchers handed to kids

2008-04-18T00:44:00.000-07:00

LONDON - McDonald's has once again been caught distributing cut-price Big Mac vouchers to schoolchildren, one month after vowing to crack down on the practice.

Summary
Last month, McDonald’s announced that they would launch an investigation. This is because Richard Watts, the campaign coordinator of Sustain’s Children’s Food Campaign spotted McDonald’s vouchers being handed out to children in school uniforms in North London.
The investigation has been able to found out that an East London branch has also been handing out vouchers to children. However, they claim that the vouchers do not carry a disclaimer prohibiting under-16s from using them (I think this refers to the vouchers that were made before the Children’s Food Campaign placed a restriction on the distribution of vouchers to minors).
The argument was slightly different on both sides, (it seems that both sides did not want to admit they had done wrong). The franchisee (of the coupon selling branches) claimed that there had been no advice from the McDonald’s head office with regard to the new vouchers with the prohibiting order, but a spokeswoman said that McDonald’s no longer condones vouchers being handed out to minors. She also claimed that this had been informed to all franchisees and business managers last month. However, she later states that the branches (North/East London) had been giving out old versions of the vouchers which did not clearly show that the offer is for over-16s.

Opinion
It has not been described specifically in the article, but it seems that there has been a restricting order on distributing McDonald’s coupons to minors (under 16s) in the UK. At first, I thought that “oh, this must be a new demographic (age) segmentation strategy that McDonald’s is using to raise profits/sales.” However, deeper thought led on to the realization that the main marketing strategy for McDonald’s is to target the younger age (school children age). Stepping into the shoes of McDonald’s, it will certainly lead to be a decrease in sales to the younger age, taking away a large proportion of sales. Therefore I understand why franchisees may want to (illegally) distribute vouchers to minors. However looking at this problem from the Campaign’s (health motivated) point of view, it is wrong to use promotional methods that may suggest that eating McDonald’s makes you ‘happy’, or your family ‘happy’ and other methods similar to this, which disguise that fact that over consumption of the oily products may damage your health. After this incident, McDonald’s may have to change their image a little bit to improve sales.

Word Count: 416 words

Entry number 6

20600392

Source: http://www.brandrepublic.com/Marketing/

VVVIP Marketing 'Augusta Golf Club'

2008-04-16T10:20:00.000-07:00

When people pay on either products or service, consumers is the one who choose them. Providers should try to get more customers in order to earn more money. These days, most providers try to provide better services to satisfy customers. However, there is a golf club that opposes common sense. The golf club has chosen customers rather than being chosen. They even not provide information to public but they earns much money. The golf club is Augusta golf club.

Augusta golf club
Augusta golf club is where Masters, one of four major PGA competitions, is opened. It is a private club where at Georgia, U.S. They only accept men and choose certain people. The standard of being the member is in secret. Even though you have money and political power, it is not possible to be the member of the golf club. Even Bill Clinton was refused to be the member by Augusta golf club. They do have one of best golf courses. To provide the best field, they close for 6 months to prepare for only the Masters. They limit the number of people who can enter to see the game. If regular people who are not rich or have not political power want to see the game, they need to buy the ticket with premium price. The official price of ticket is $175 but the premium price is above $3000.

Opinion
Augusta Golf Club has pride over their golf course. With the pride they using a curiosity to give more value to themselves. They stimulate people's curiosity about who would be the rich and powerful people that use the club. They even limit the number of people who can enter per day. Therefore, just being the member or just entering the club makes people feel special. I think people are buying image rather than actual services.

Source: '세상을 애타게 하라 … ‘골프장 명품경영’', 중앙일보

http://news.joins.com/article/aid/2008/04/14/3099309.html

Student #: 20400152 - Entry 6

KTF 'Show' Reaches 5 Million Mark

2008-04-16T09:10:00.000-07:00

KTF is the second largest mobile company in Korea. KTF introduced third-generation (3G) mobile and the amount of customers using this phone increased. Now, more than 5 million people signed up for "Show" phone. The users of "Show" phone are rapidly growing over 14 months. CEO of KTF offered an event which presents a 5 million won mobile coupon to the 5 millionth subscriber. They are trying to keep up the good work to have 10 millionth subscriber. They are looking forward. The 3G mobile services became popular because it has WCDMA, which is Wideband Code Division Multiple Access. It might be less quality than older mobile services but provides fast data transmission like mobile Internet or video. Another advance is that it is easier to roaming. The customers are please to use these services and the company also has benefits by the services, because it charges extra fees. It is win-win strategy.

Opinion.
I think KTF's "Show" marketing is very successful. I remembered their first TV commercial, because it did not tell what it was and the audiences were keep watching, tried to figure out what it is. After most people found out it is a mobile brand and KTF used this strange but cute young girl for their model. Many 10s to20s including me used SK telecom because the image of KTF was old style. However, this young girl came up with weird dance introducing roaming in many countries. The consumer’s minds started moving to KTF and they gave many benefits that SK did not provide, such as discount in more places than SK. I also changed to KTF from SK because the phone bill is cheaper than SK and my sister is thinking to change. Now, KTF is expanding their target to the family. They are providing services like discount at E-mart and their models are married couples or a mother and a daughter. I think KTF will grow more with their brilliant ideas of marketing.

Source_ http://www.koreatimes.co.kr/www/news/biz/2008/04/123_22395.html

20600225_ Entry 6

‘Hey, Starbucks, How About Coffee Cubes?'

2008-04-16T06:00:00.000-07:00

Recently, Starucks has launched an online community where customers can put up suggestions about the service, new menus or products that it needs to improve on. MyStarbucksIdea.com is the website and many people participate on it. Starbucks has followed the footsteps of Dell Inc, which started to implement online community board before it did via SalesForce.com. Online community board varies from getting ideas from people to giving information on new menus, services, news etc. Many people can even write how they feel about the new menu and services, and share their comments with people around the world. In some cases, customers give ideas like how to prevent from waiting in long lines, what are good coffee ingredients, etc. People can actually voice themselves on what they regularly use and show their high intentions of improving it.

I highly respect with what the Starbucks is using to hear people’s voices. It is really important for a firm to get ideas and feedbacks from its customers. In this fast-trend-changing era, it is the people’s voice that makes the change. When actively listen and instill the feedbacks and ideas from people, a firm can improve the services and sales by jotting down its pros and cons. Moreover, there are many intelligent and creative people in the world. Many people would come up with some intelligent and creative ideas that no one has ever thought of. Those ideas can be a great source of improvement and eventually would be a great help in increasing the amount of sales. Furthermore, people these days like to express their feelings. When many of them actively express their feelings on the services and products that they have experienced or used, they would relieve their stress and have a sense that they are linked up with people who have same opinions as they do. In this case, most likely they would go back and experience or buy again and try to write down the feelings again in order to be a part of the community. They would also want to see whether their opinions have taken places.

Source: http://www.businessweek.com/magazine/content/08_17/b4081000030457.htm

Student ID#: 20400542 - Entry #6

Coffee Nation hands UK brief to bd-ntwk

2008-04-11T00:30:00.000-07:00

LONDON - Coffee Nation, the self-service coffee brand, has hired bd-ntwk to handle its first major UK direct campaign.

After a pitch against undisclosed agencies at the end of last year, Coffee network set out to promote its label name. The first company they used is BD-ntwk.
BD ntwk is a network of people, ideas and locations and is a privately owned communications agency. Their motive is to achieve results with big brand ideas delivered by passionate, dedicated individuals, and they contribute in big ways to growing some of the world’s leading brands.
Coffee nation has tasked BD-ntwk with educating consumers about Coffee Nation’s products in a campaign covering various areas of direct media, which include sampling, in-store collateral, point of purchase and radio campaigns. BD-ntwk has also designed a fresh cup design for Coffee Nation.
Coffee nation did not stop at using the help of one promotional marketing company but also tasked a product design company agency called Seymourpowell to create the fascia for a coffee machine. This new fascia was used to launch a redesigned compact coffee machine at the 2008 Convenience Retail Show in Birmingham.
Coffee nation also ran a scratchcard promotion offering many prizes such as iPod shuffles, drink upgrades and travel mugs to promote its label name.
Here we can see how Coffee nation has used the method of ‘retailing’ to allow economic growth in the market. If we consider the four Ps to create value in retailing, there is product, price, promotion and place. If a company wanted to improve its sales by adjusting its retailing methods, they should improve one of the four Ps. In most company’s cases, it is quite hard to change the price of the product. However here in Coffee nation’s case, they changed the ‘product’ – by creating a new cup, used various methods of ‘promotion’ to promote its label name, and carefully chose the ‘place’ they used to promote the label name (for example the Convenience Retail Show).
The result of this is that Coffee nation now has more than 550 coffee machines located in motorway petrol forecourts and convenience stores across the country, and claims to have sold more than 40m cups of its coffee since it began trading.

Word Count - 380

Entry number 5

20600392

Source - http://www.brandrepublic.com/Marketing/News/800290/Coffee-Nation-hands-UK-brief-bd-ntwk/

http://www.bd-ntwk.com/

Selling the Brand Image

2008-04-10T07:44:00.000-07:00

Art marketing is somewhat different from original media and is becoming a new way of marketing. Consumers nowadays enjoy cultural life. Instead of concentrating too much on their hobbies, many people like to have their own cultural lives, so it is easily found that many firms are trying hard for the cultural and art marketing to increase their brand values. Multinational firms like Nike and Samsung Electronics are investing on culture through their market basis. Thus, they can promote their image and make chances to grab potential customers. By looking at the current market trend, firms are not using mass media to do the marketing to random customers, but promoting a strategy of targeting specific segments of customers. Likewise, many firms are trying to do art marketing through art media to improve their brand image.
In Korea, LG Chemical and interior brand Ji In are strengthening their own brand image value to differentiate themselves from other ones. They are doing like such because there’s not much difference in terms of quality compared to other competing firms. So they try to enhance their brand image. It is no same as other normal advertisements, but going very closely with the product by basing with what the customers want and how they can go together with the product. I can highly acknowledge the efficiency of the art marketing because firms promoting such introduce various events and offer for public subscription for the idea of the product so that customers can easily understand and accept the product which makes them enjoy their cultural lives. In this way, the firms can also achieve their foremost goal of impressing the customers and improving their brand image.

Source : http://www.munhwa.com/news/view.html?no=20080404010314241060020

Student # : 20300489 Entry_5

Might Losing the biggest event

2008-04-09T21:54:00.000-07:00

Boycott the Beijing Olympic

Olympic is one of the biggest events in the world. Because of this reason, all over the world will focus on the 2008 Beijing Olympic and there will be the keen competition among companies to promote their products and their brands. Many companies spent their huge amount of money to using Olympic. However, they might think once more whether they should promote their products and brands because of the Tibet event.
The Tibet event is that Chinese government suppressed the Tibetans by using military forces. This caused a question of human rights. Olympic is the symbols of peace. Therefore, the Tibet event is against the 2008 Beijing Olympic. Protesting of the Chinese government's oppressive measure is spreading all over the world and protestors tried to relate this event to the Olympic. The torch bearer was attacked by protesters in France and the Olympic frame went out twice during the running. Even many leaders, presidents or powerful persons in the world, boycotted to attend the opening ceremony.
If companies tried to promote their products and brands using the Olympic, they should take a big risk. They usually use the Olympic to inform their good image to people. However, since the image of Beijing Olympic is getting worse, they might find other events.
IOC (International Olympic Committee) already is talking about abolishing the torch bearers running event starting next Olympic. The torch bearers running event is one of event that crowd gather that good chance to promote for company. If the Beijing Olympic will be imaged as a violence Olympic, people will not focus on the Olympic anymore. I hope that the Tibet event will solve soon and well so that people watch T.V for the Olympic enjoyable.

Source: - YahooKorea

http://kr.news.yahoo.com/service/news/shellview.htm?linkid=17&articleid=2008041012040164633&newssetid=485

- Kansascity.com

http://www.kansascity.com/659/story/565501.html

Student #: 20400152 Entry 5

Starbucks' Taste Test

2008-04-08T22:00:00.001-07:00

Starbucks in Seattle has recently introduced a new brew called Pike Place Roast by offering to customers for free. In this video, many people tried the new coffee and came up with good comments. Some say that the Starbucks has showed their brand image really well, and even helped organic farmers and water wells and third world nations by introducing eco-friendly coffee. It was really trendy and met Settle’s needs with good flavor. Many people liked the idea of giving out for free, the promotion of its brand image and the taste. However, some made comments on the high price.

I think what the Starbucks in Seattle has done was a good way of marketing. Recently, Starbucks has lost its brand image mainly due to high price and banal menus. However, it has introduced a new brew of menu and gave out to the public for free to promote the new coffee. One firm can make a new product and advertise on TV or newspapers. But, giving out for free to the people and listen to their comments was a great idea of drawing people’s attention. Many people might have forgotten Starbucks and been reluctant to go into the shop and pay 3 dollars for a cup of coffee. But, by overtly introducing the new product in public for free of charge, it might have once again reiterated the good image brand that it had before to people’s minds and draw many more people than before to its shops. I think it really was a terrific idea.

Source: Businessweek Website

Student ID#: 20400542 - Entry #5

Businesses Use First Astronaut in Marketing

2008-04-08T05:45:00.000-07:00

Yi So-Yeon, an astronaut left to the space on April 8, 2008 in Korea time. Most Koreans are having interest on her because she is the first astronaut from Korea. Korea would be the 37th country in the world sending an astronaut into space. Businesses started using this historic event as their marketing strategy.

Department Stores.
Department stores like Lotte Department Store opened a "Lotte space world" event, which is exhibiting including mock ups of Soyuz space shuttle and space food which Yi took to space. They will choose a couple to have a chance to travel Las Vegas, where the movie "Apollo 13" was filmed. The couple is able to have experience on zero gravity at the set. Lotte Department Store also gives a watch used by astronauts called Aviator to customers for a present. Hyundai Department Store is similar to Lotte Department Store. They present customers with astronaut food including Korean traditional food Kimchi. Retail chain stores are expecting large economic benefits because of the astronaut boom. They are promoting telescopes of astronaut, science books, and toys related to space.

Financial Business.
Some financial businesses are also please to join. The Soyuz rocket will be launched at Cosmodrome Baikonur in Kazakhstan. Hanwha Securities did not miss this chance because they launched a fund investing in Kazakhstan. They will holding an event including tour package to Kazakhstan and gift vouchers.

Government.
The government is also taking a chance to encourage teenagers to study science and technology. This trip could be a turning point to set up a basis for Korea to forward in the space industry.

Opinion.
I think this is the part of promotion in marketing. It needs to process quickly because this is short term of marketing. The customers will lose interest as the time goes by. I expect the economic benefit will be huge because it can work in both domestic and internationally. Heo Hee-Young, who is a professor at Korea Aerospace University estimated that the first astronaut will brings about 478 billion won. It is 18 times more than the budget of the project. Businesses are having a same marketing idea right now. The way how they appeal to customers will be the main issue.

Source_ http://www.koreatimes.co.kr/www/news/biz/2008/04/123_22069.html

20600225_ Entry 5

UK 'faces more financial shocks', 10,000 finance job cuts forecast, Sub-prime borrowers face repossession

2008-04-04T00:19:00.000-07:00

This week, I will write my article based on three (+) articles because the news of the sub-prime lending crisis in the US has many aspects covered in different news articles. I hope this can be excused as a one time thing because the sub-prime crisis seems to be a very serious problem. This was a completely new topic for me so I had to look up a lot of words (please excuse the use of brackets which contain the simple explanations for people who may read this article):

“Sub-prime mortgage lenders who give loans to people with bad credit records account for more than 70% of all repossessions, a BBC investigation has found.”
This US sub-prime crisis appeared to be a major crisis going on at the moment in the business world, but I did not know what it was, so I used Wikipedia to search it up:
“Subprime lending (also known as B-paper, near-prime, or second chance lending) is lending at a higher rate than the prime rate.”
As soon as I read the definition of sup-prime lending, I realized straight away that this crisis probably started off from excess lending and my assumption was supported by the last article that I read – reckless lending has been going on. Sub-prime loans have been marketed at people with poor credit records (in other words, loans that do not meet Fannie Mae or Freddie Mac guidelines). The sudden or unexpected numbers of repossessions (used to refer to a financial institution taking back an object that was either used) among such borrowers in the United States triggered a global financial crisis over the summer. Years of reckless lending caused the financial markets to lose trust in sub-prime loans. This triggered the credit squeeze (when interest rates rise and new credit is difficult to access) that resulted in a run on Britain's Northern Rock bank.

The second article I read explained the spread of the crisis in the US to the effect that it had in the UK (the Northern Rock bank). I am not sure if I understand the article properly, but it appears that because the Northern Rock bank was facing financial problems, Lloyds TSB was trying to execute a Northern Rock takeover bid (takeover is the purchase of one company by another). In other words, Lloyds TSB was planning to purchase the Northern Rock bank and asked for a £30bn loan from the Bank of England. However, the governor of the Bank of England said that governments should not provide financial help to one company so that it could take over another. Lloyds were not able to takeover the Northern Rock bank, and when its bid collapsed in September, Northern Rock had to go to the Bank of England and ask for emergency funding. This event/crisis (Northern Rock's need for emergency cash) sparked the first run on a UK bank for almost 150 years. However this was not the end of the problem. It would be several months before banks could return to normal after the crisis, because it would take that long for banks to disclose all the losses from financial instruments linked to US sub-prime mortgages.

This is not the end, because the third article forecasts that 10,000 finance jobs will be cut. A survey showed that most companies thought the credit squeeze (explained above) would get worse in the next six months. The report/survey predicts that the UK will avoid outright recession, but says that finance jobs are already being cut. CBI chief economist Ian McCafferty said that "Some have suggested it's the worst financial crisis since the Second World War," and he also stated that "I think one of the key characteristics is that it will go on for quite some time to come."

This huge financial crisis and losses of jobs affects everyone worldwide and their families (especially those who have lost jobs) and it is ironic (funny?) to realize that the start of these major financial setbacks started from reckless lending in the US. Although I am not familiar with the term sub-prime lending, it just seems that if the lending processes were more carefully thought through and if they met the guidelines (eg Fannie Mae or Freddie Mac) a crisis with such a big scale as this could have been avoided. I have learnt from this sub-prime crisis that very small or insignificant factors can lead to global distress, and it seems that this theory can also be understood in other aspects of life.

20600392

Entry number 4

Word Count 760 words

Source :3(+) articles

http://news.bbc.co.uk/2/hi/business/7079520.stm
http://news.bbc.co.uk/2/hi/business/7321948.stm
http://news.bbc.co.uk/2/hi/business/7030723.stm

SK Wyverns's Sportaiment 2.0

2008-04-03T20:34:00.000-07:00

Fans like to watch games by experiencing more than 5 senses of human nature which includes visibility and hearing, and the marketing that satisfies such fans is called Place Marketing. In relating to this, many baseball clubs wish to increase profitability out of this strategy. However, due to most of clubs’ poor infrastructure, they are eyeing towards the marketing strategy of SK that has the newest stadium infrastructure. But, many old stadiums in the Major Leagues also have competitiveness. Built in 1962, the LA Dodgers Stadium has specialized in food and came up with a product called “Dodger’s Dogs”, which now became a special product of the stadium. New York Yankees, which has an 85-year history, have a Monument Park to recognize legendary outfielders. The “Dodger’s Dogs” and the Monument Park at the Yankees Stadium are two of the successful distinguished products that differentiate them from others. Let’s go back to the Korean stadiums. Many district stadiums are just considering building a playground for kids and having just one convenient store at the stadium makes me really worry. There is no significant product of a stadium. It is pretty obvious that in such conditions, fans would not think stadiums as a place to go and enjoy. It is understandable that because many stadiums are owned by the city or province, clubs have many restrictions in marketing. The more a stadium is in a bad condition, the more money it’ll cost to build commodities. However, the problem is the willingness of the clubs to improve stadiums. It is fundamentally important to enhance the infrastructure of the stadium if they want to provide the best service to the fans. I feel that it is somewhat relatively late for the SK to come up with their marketing strategy. But, it is good that they have perceived their lack of service. I strongly hope that “Sportaiment 2.0,” which aims to draw 5 million fans to the stadium, would be the new paradigm of the Korean Baseball.

source : http://news.naver.com/sports/index.nhn?category=kbo&ctg=photo_news&mod=read&office_id=073&article_id=0001948779

student # 20300489 entry4

Tata Unveils the World's Cheapest Car

2008-04-03T01:56:00.000-07:00

Recently, Tata Motor Company, an Indian-based automotive firm, unveiled the world’s cheapest car Nano. This vehicle costs 2,500 US dollars. It hasn’t been out yet, but it is speculated that this world’s cheapest car would be a big hit not only in India, but also around the world. Rantan Tata, the chairman of the company, had a dream of making the smallest and the cheapest car so that it would be easy for the people of India to travel on small and congested roads. Many car analysts claimed that Tata’s dream of creating the world’s cheapest car will draw a new picture of India on the global map. It has surely introduced not only Tata Company and Nano, but also the image of India to the world that the country has the ability to create a new phase of the vehicle by designing the smallest and the cheapest car in just several years that took 30 years for the Japanese. The dealers of the Nano had to turn off their cell phones due to the tremendous calls of orders.

I think that Rantan Tata has come up with a creative, innovative and bold idea. It is not easy to manufacture a 2,500-worth car due to the continuous price rise of raw materials, such as steel and rubber. However, he overcame and fulfilled his dream. Not only he has fulfilled his dream, but also has kept a promise of making a 2,500-worth car. Moreover, I think that the introduction of Nano would also enhance the image of India and her firms. Before reading this article, I haven’t even heard of Tata or Nano. But, after reading this article, I realized that the underdeveloped India has the ability to create such cars and a creative, innovative and audacious leader to surprise the world. Before, I only knew India as a country with many intelligent people, but does not have the technology and ability to produce products that would surprise the world. My perspective of India has changed drastically. The introduction of Nano is a dream-come-true for the Tata and a strong improvement of the image of Indian firms in the world stage.

Source: http://www.businessweek.com/globalbiz/content/jan2008/gb20080110_319276.htm

Student ID#: 20400542 - Entry #4

$1.5M car you can't have

2008-04-02T21:56:00.000-07:00

Reventon

Reventon is the car that you can not easily meet. Reventon is made by Lamborghini in Italia and produced only 20. This is based on Lamborghini’s Murcielago LP640 and got the idea of the design from F-22 fighter jet. It has 650 horse power and maximum speed of 340km/m. Reventon is named from a bullfight. The meaning of Reventon is 'a fighting bull which killed a bullfighter'. Lamborghini even tried a race that Reventon versus 'Tornado' which is a fighter jet, however, Reventon lost by a close call. Reventon was introduced at Frankfurt Motor show in Germany and all of 20 were sold in 4 days, even though car price is about $1.5 million dollars. Right now, the price of Reventon is higher in used car market because it got 40% premium since supply is rare.

Opinion
As you can see the description of Reventon, Reventon is not for everyone. This car is only for the customers who are rich, like manly and speed, and visit the motor show. Although it is not cheap, Lamborghini focused on the target people and set the high price. Their strategies have leaded the big success. They tried to show the manly factors and speed by promoting the race and the name. I believe that name describes the power of the car. It also describes that the car beat the master 'F-22 fighter jet' since the idea of the design from F-22. I believe that Lamborghini set the right target customer and satisfied the customers.

Sources: - $1.5M car you can't have, Fortune

http://money.cnn.com/video/ft/#/video/fortune/2008/04/01/callaway.lamborghini.reventon.overview.fortune

- 2oo7 Lamboghini Reventon, Naver blog

http://blog.naver.com/yoosun11?Redirect=Log&logNo=48689072

Student #: 2040052 - Entry 4

Samsung, LG Collide Head-on in US Mobile Market

2008-03-31T16:53:00.000-07:00

The CTIA (Cellular Telecommunication Industry Association) wireless industry trade show, which is North America's largest wireless event, held on April 1 to 3 at Las Vegas. Samsung Electronics and LG Electronics are participated this show to boost their mobile sales in the United States.

Samsung Electronic.
Samsung Electronic, the world's number 2 handset manufacturer will introduce "Soul" phone that is this year's strategic to the world's largest consumer electronics market. It is slider type handset with a touch panel will feature Bluetooth 2.0 and 5-megapixel camera functions. The phone is already marketed to customers in Europe and it will be available in April. Samsung electronics also has a plan to customize products for U.S. wireless operators such as "Flipshot"(Verizon), "Blackjack2"(AT&T), "Katalyst"(T-Mobile), and "m520"(Sprint). The Samsung's slogan for this show is 'Mobile for Every Lifestyle' and it means that they will maintain the growth in the U.S. with customized products and technologies. Samsung has set this year's mobile growth in the United States at a 4 to 6 percent according to the data.

LG Electronics.
LG Electronics, the world's number 5 maker of mobile phones after Sony Ericsson developed the touch screen phones to catch up with Sony Ericsson. They will introduce a full touch screen "Vu" and "EnV2" which is following its previous "EnV" mobile that has sold over 3 million since November 2006 at the show. LG Electronics will focus on touch based technologies.

Opinion.
The trade show is one kind of promotion and it offers an excellent forum for finding leads. It is because buyers who choose to be exposed to products and services offered by potential suppliers in an industry are attend. It is easy to appeal the audiences in the trade show, because the targets already have interest on the products. Samsung Electronic and LG Electronics choose a trade show to introduce their mobiles and it was good idea. Most of the U.S. mobile company members will attend and this is a chance to grow more in U.S. mobile market.

Source_ http://www.koreatimes.co.kr/www/news/biz/2008/04/123_21668.html

20600225_ Entry 4

Naming and Uniform Marketing

2008-03-28T07:08:00.000-07:00

‘Naming marketing’ mentioned by Centenier is a sponsorship which the baseball team gives the titleship to the sponsor and get the support from. The word ‘sponsorship’ is often used because depending on the sponsor’s will the name of the team also changes. For example, after Hyundai team Unicorn is disbanded, the new team Heroes that participates as the eighth pro-baseball team gets the biggest supports from a company called ‘Woori Tobacco.’ Therefore, no matter who is the actual owner or the head of the team, the name of the team becomes ‘Woori Heroes’ so in that way if the sponsor company is changed, the name of the team also changes. There are similar cases in other countries but this is the first time that national baseball team tries the ‘naming marketing.’
The case which Manchester United from British Premium League, putting the name of the sponsor ‘AIG’ on their uniforms is ‘uniform sponsorship’, and is different from ‘team sponsorship.’ Although, companies in the United States originally are not permitted to advertise their uniforms much, they are sometimes allowed to do it if the government sees the advertisement has great economic affect internationally. Chinese beer company, YenJing, paying 6 million dollars to the NBA Huston Rockets which Yaoming, ‘the walking Great Wall,’ plays for, received a 6 year-permission of advertising uniforms of the team.
Huston Rockets allowed the attaching of the advertisement gladly not just because of attaching a beer advertisement, but because through Yao Ming hundreds of millions in China who watch NBA will increase. The number of countries that watch NBA by satellite is now 212.
Actually, the baseball club ‘Hanbang Swings’ in HGU, in which the writer participates, is operating with attachment of the IBK logo. IBK is not ‘team sponsor’ but is more of a ‘uniform sponsor’. The insufficiency of club operation fund is supplemented by this uniform sponsorship, and this at the same time raises team spirit and morale, showing good results in the Pohang community baseball league. Both sides will have to do their best in their responsibilities, as increasing unseen values of IBK, the sponsor, can be possible.
As both naming marketing(team sponsorship) and uniform sponsorship are commercial operations acting upon loss and gain strategy, acts based on mutual trust in necessary.

Source : http://dailynk.dailian.co.kr/view.html?id=99719

Student # 20300489 Entry3

Green Wombat

2008-03-27T23:33:00.000-07:00

California utility to turn roofs into solar power plants

Southern California's Edison (company name) plans to install 250 megawatts' worth of solar panels on unused (wasted) commercial rooftops in the fast-growing “Inland Empire” of Riverside and San Bernardino counties. Their calculations state that this installation of solar panels will generate enough electricity to power 162,000 homes.

The plan:

Edison is planning to lease 65 million square feet of unused warehouse building rooftop spaces from the building owners. Edison will contract for the installation of the arrays and will also retain ownership of the solar systems.The regulators of California seem inclined to approve this massive scale project and the project will be financed by rising utility rates. “One advantage of this project is that we will tap unused rooftop real estate directly in areas we serve where demand is growing rather than securing a major plat of land in a remote area and then building transmission lines to bring the power to those areas of rising demand.” (Edison spokesman Gil Alexander). The plan is to save money (decrease expenditure) by connecting clusters of solar arrays into existing neighborhood circuits instead of building a centralized power station and the expensive transmission system needed to transmit power to the existing grid.

The expected results:

According to Edison's plans, they will install a megawatt a week of arrays until it reaches the 250-megawatt target. This alone will be more than the entire solar cell production number in 2006 and is said to produce as much electricity as a small scale coal powered power plant. This is also part of the first steps taken towards the plan of building a massive megawatt solar station in California's Mojave Desert. Although solar arrays will only produce energy when the sun is up and shining, they will produce the most power during the hottest part of the day when the Southern Californian's crank up their air conditions. (plans for a substitute of electricity).

Problems they face:

Edison expects that due to the massive scale of the project, the solar assays could be placed on the roofs at half the cost of a typical installation. However, the ongoing shortages of polysilicon (main ingredient for solar panels) may lead to increasing costs of installation.

Thoughts:

During our lectures we learnt that at the current fuel consumption rate of the world will lead to fuel shortages within 70 years or so. This is why it is important to find alternative methods to produce power, for example the 'fun electricity' methods video we watched in class. Edison's idea of constructing massive scale solar assays is said to provide electricity for the whole area, without having to invest money in building transmission lines. Although there is the consequence of a high cost ($875 million), this potentially game-changing decision may prove very useful and environment friendly in the future. It also motivates other competitive power companies to think of other innovative ways of producing energy because "they face a state mandate to obtain 20 percent of their electricity from renewable sources by 2010 and 33 percent by 2020. California’s global warming law requires the state’s greenhouse gas emissions to be rolled back to 1990 levels by 2020". I think this major decision to be the 'first mover' (the concept that we learnt in class) challenges Edison, but I think it is a necessary step to take because these are the kinds of big ideas the world needs to meet Earth's long-term energy and climate changing goals. If commercial/residential buildings worldwide formed partnerships with utilities to put this solar technology on their unused (wasted) rooftops, it would set off a huge wave of renewable energy groups. However, I have a concern about the way that this process of decreasing fossil energy and increasing renewable energy will affect the power (political) that the oil producing countries of the world has. This will in turn affect the economical balance that has been set up between countries over the years.

Source: http://greenwombat.blogs.fortune.cnn.com

Word Count : 650

20600392

Entry #3

Learning from Tata's Nano

2008-03-27T15:46:00.001-07:00

"Create more patents, create more new things" These are one of the companies' methods to reach their goal. Consumers meet with new technologies and new ideas. However, we do not need all of that!

Simpler Simpler
Nano, a new car made by TaTa Motors, was introduced in India. Nano is only retail priced at approximately $2500. If you compare with Mariz, the cheapest car in Korea, priced at about $7000 at retail, you know how cheap the Nano is. How could they reach this price? Tata Motors did not try to increase the price. They tried to decrease the price. First of all, Nano is overall a small and a light weighted car. Since it is small and light, they use less steel in the car. There is no air conditioning, power brakes, radio, etc from the entry level model. However, Nano meets all Indian emission, pollution, and safety standards, though it only attains a maximum speed of about 65 mph. Nano has filed only 34 patents, which contrasts with roughly 280 patents awarded to General Motors every year.

Opinion
These days, I have received much informations as well as ideas. However, I do not need all of ideas. For example, I do not need to use all the features in my cellular phone. All I need from my celluar phone is to call and talk to others and some text message function. I do not want to pay for the camera, games, etc in the cellular phone. However, cellular companies compete to add more features and set prices higher even though consumers do not want. I think that Nano is the best car that reaches needs because Nano satisfies the basic thing about a car, driving!
I hope these products come out more so that I only pay what I want to use.

Source: Learning from Tata's Nano, Business Week
http://www.businessweek.com/innovate/content/feb2008/id20080227_377233.htm?chan=innovation_innovation+%2B+design_innovation+strategy

Student #: 20400152 - Entry 3

How to Reenergize Starbucks

2008-03-26T07:11:00.001-07:00

Over the past several years, Starbucks, one of the most famous coffee chain shops, has been languishing. Their revenues have declined, and the opening rate around the world of its chain shop has gone down, where it was 5 per day before, but now it’s 3 per day. In order to regain its previous image as a luxury coffee shop where they sell typically unique and delicious coffee and offer the best customer service, ranging from free internet access at shops to luxurious walls and furniture that makes the shop the best place to have a cup of coffee, the Chairman of Schultz is back as an incumbent. Many observers and specialists assert that Starbucks has gone too much focusing only on making profits and selling coffees. And to be back to the top of the coffee business, Starbucks has to focus on the quality of the coffee that they are serving and actively take part in community and social services where the shops are located at. It has to attract customers not only by their luxurious image, but also by serving the best coffee in the region, if not, in the world. Also, it has to actively help out local communities in doing social works. This way, it can gain a good image from the local people.
I agree with what the observers had said. I think that Starbucks has only stayed at the same position for several years after their dominance in the coffee industry. It has only focused on making more profits and expanding its shops. It can do that in order to make more money, but if this persists, customers will be disappointed with its quality of the coffee and by the fact that no new or special menu has been unveiled. Starbucks has to try hard to invent, if not, improve the quality and taste of the coffee from that of current ones, and actively search what the current trend is. Moreover, each respective shop should contribute to a regional community services at the place where they are placed to give a good image to people. Also, it can take this chance to know how people think of its products and ask for opinions.

Source: http://www.businessweek.com/innovate/content/feb2008/id20080220_372003_page_2.htm

written by Matt Vell

Student ID#: 20400542 - Entry 3

LG CNS Sets Up IPTV for Hospital Beds

2008-03-24T18:19:00.001-07:00

IPTV "U-bed"

Imagine ordering meals in the hospital bed and an individual TV. This is not a dream anymore. LG CNS developed Internet Protocol TV called "U-bed.” This system introduced to 150 patients at Kyunghee University Medical Center on Monday. They do not have to fight over the channels because it is a personal TV like on seat flight TV screens on international planes. The 15 inch screen is attached to each bed and it has over 60 free cable and terrestrial channels or patients can watch pay per view movies. This is not the end. They will have patients to select menus for the meal by touching the screen and even online shopping on July. The firm’s spokeswoman Nari Lee said their plan is install more screens at Kyunghee Medical Center this year and sell this system to other hospitals. LG accomplished many medical technology services like providing a medical network system for Yonsei University Hospital last year. It considered as one of the most advanced in the world.

Opinion

This is one of B2B (business to business) because LG is selling a system to hospitals. They launched the good manufacture. I think this system is able to success because the market is huge. They can also sell it to many other countries. It can be as globalization. The hospitals which set up the "U-bed” system also have benefits because they can use this system as a tool to publicity to patients. If I am a patient, I love to go to the hospital with personal screen rather than 5 to 6 people with one TV. I think they have positive conditions and now how they express the system to customers will make differences.

Source_ http://www.koreatimes.co.kr/www/news/biz/2008/03/123_21260.html

20600225_ Entry 3

Win-Win or Lose-Lose

2008-03-21T07:05:00.000-07:00

Marketing is very hard if you have impatience what showing the something short time. Moreover if you entry initialize market, you must make efforts for higher comparative advantage as not necessarily quality technique is essential element but differential marketing strategy is important. In this way, sports marketing that is appeal to audience who has potentiality customer’s eyes. Because of this, the importance of sports marketing, using sports which can attract customer's eyes, let them get interested easily and make them participate, is increasing. The Face Shop, a cosmetics brand, has signed a contract to support Min Keun Cho, who is an upcoming pro-golfer. This is the most basic strategy in sports marketing, aiming to do some advertising when the athlete participates in a game wearing hats, T-shirts, bags which have the supporting organization's logo. To the athlete it is a monetary help, letting his name be known by borrowing a famous company's name. The supporting organization also does not support athletes for no reason at all, as it's aim is to make profits. By estimating the potentials of an athlete and by projecting how he improves to the reliablity and friendliness of the company, making a tool to create unseen values. This is a win-win strategy which can be unseen at the very moment, but is possible to create long term values when both sides motivate each other, do their best in what they are supposed to do, carry out sincerely the contract called partnership, and expand enough potentials. Even the aim is to advertise products and to increase brand image, There are a cautions to be take however, as the one who is getting the support can have a bad influence on the image of the company from his/her use of drugs, sexual crimes, immoral acts and/or creating public trouble, and also this can create bad influence to the reputation that he/she who gets supported has built, from not having specific personality analysis up front. For example, an advertisement from a loan company is hard to get good social response from a case and if the company keeps on going chasing after money, it can be responsible for moral issues. Therefore, cautions should be take for these types of marketings as a win-win strategy can change to a loss-loss strategy.

Source :http://www.moneytoday.co.kr/view/mtview.php?type=1&no=2008031709260390166&outlink=1

Student # 20300489 - Entry2

Best Companies to Work For: GOOGLE

2008-03-19T09:37:00.000-07:00

Best Companies to Work For: GOOGLE
The Fortune magazine has released the list 'the best companies to work for' and the first place is Google. CNN interviewed several employees of Google and the employees said many good things about Google. For example, Google had started up their head court in a garage but now Google became the largest search engine company. They have more than 50 offices around the world and 12,000 employees are working. Google was selected for the second straight year Fortune's #1 best company to work for. The employees found several reasons why Google is the best company to work for. The reasons are flexibility, financial security, and any opportunity to get things done. They are allowed to work on their projects which they chose and spend 20% of their work hour in 1 day of a week. They were encouraged to seize to pursue opportunities.

Opinion
Companies are trying to enhance their value or their brands in any method. One of the best methods is using the press. Using the press is easy to reach and communicate to the public. The Google is not only good company to work for, but they also did a good job on communicating with public. Google probably tried hard let to Fortune magazine know about their values. The CEO of Google also probably encouraged their employees to interview with Fortune or CNN and tried let public know more good things about Google. By using the press, they could get the best people who work for. The best people are the best sources for Google because Google is an intellectual company. People will use Google more because most people want to use the best product. Google will take more market share by these reasons.

Source: Fortune Magazine http://money.cnn.com/magazines/fortune/bestcompanies/2008/
Student #: 20400152 - Entry 2

How to Pitch Anything in Two Minutes.

2008-03-19T06:47:00.000-07:00

The most important part in marketing is how to communicate with consumers. The communication coach Carmine Gallo gave 5 simple tips to sell products, services or even yourself. He bought a toaster from a chef and he already had a toaster at home. He drawn toward chef's communication skills. As I read this article, I thought about these people on the subway selling music CDs, pens, books, and even toys for children. Their merit is only one that is cheap. However, I never wanted to buy one. I did not even pay attention on what they are selling. I wish they could learn these 5 tips on communicating.

Demonstrate Enthusiasm.

First one is demonstrate enthusiasm. The consumers easily know how confident they have on their products and the consumers might interest on the products. It is very important to have fun and excitement with the products.

Find a Personal Connection.

Second one is find a personal connection. The chef did not start to give information. He started with his childhood stories relate with the product. Remember that people want to like the person behind the product. I think like this, the business (beyond the marketing) is toward humans.

Sell the Benefits.

Third one is sell the benefits. Instead of demonstrating features, explain the benefits to have the products. For example, good appears, safe designs, or premium life style. I just learned that consumers do not buy a product because they need it. They buy them to have premium lif style like a cup of Startbucks coffee.

Tell Stories.

Fourth one is tell stories. There is a IT manager selling security technology by telling stories. He starts a pitch saying, "Imagine walking into work Monday morning to find that your computers had been stolen…" This simple story can have a different result.

Teach Something New.

Last is teach something new. The chef taught about a nesting trend and how the toaster fit into it. He said the toaster saves energy, come in colors other than white, offer more functions, and easy to clean.

These all techniques take under two minutes but the effects are huge. I think the product itself is also important but how the message delivers to consumers is more important.

Source: BusinessWeek_ March 14, 2008, 1:18PM EST
By Carmine Gallo

20600225_ Entry 2

Hyundai-Kia Steps Up Marketing Activities

2008-03-18T06:06:00.000-07:00

Hyundai-Kia Automotive Group, the largest automobile maker in South Korea, is aiming to expand its’ global image. The group has already set up many factories across the world. The factories are in China, the United States and Europe. Although they have many factories to manufacture cars and sell directly at the place where they are produced, the group had to endure having an image of selling “cheap ones.” In order to come out from such image, the group has taken an initiative to prevail its image in the world stage by sports marketing and various other sponsorships. The group will sponsor the upcoming Euro 2008 which kicks off in June. Euro is a soccer championship in Europe where countries in Europe compete each other to gain the trophy. It is predicted that the through Euro 2008, Hyundai and Kia will be widely known not only in Europe but in the world. The group had already sold 1.22 million in Europe itself. In America, Hyundai put out an advertisement at the Super Bowl which has helped to increase 45 percent in net brand for the luxury car “Genesis.” Both Hyundai and Kia have put out “Genesis” and “Mohave” respectively to compete with two most famous luxury brands, Audi and Lexus, in America. I believe that Hyundai-Kia Automotive group has put out an outstanding strategy to expand its’ image in the stage of globalization. Especially I like their marketing idea where they sponsor sports events. Samsung Electronics had already made a huge profit by sponsoring Chelsea FC, a London-based soccer club. Soccer is the most famous sports in the world and by sponsoring an event that people most enjoy to watch after World Cup, Hyundai-Kia will surely input their brand into people’s minds and have a strong influence. By continually seeking strategies to upgrade its’ image, especially through sponsorships, I strongly believe that the group will not only increase in image-making, but also in selling cars, installing its’ luxury brand to many people worldwide

Source: The Korea Times (Tuesday, March 18, 2008), Page 10.

Student ID#: 20400542 - Entry 2

Fake fears over Ethiopia's gold

2008-03-16T02:06:00.000-07:00

By Elizabeth Blunt BBC News, Addis Ababa

Ethiopia's national bank has been told to inspect all the gold in its vaults to determine its authenticity.

Ethiopia's national bank is facing a big problem that originally started off as a small one. It all started when the Ethiopian Central Bank exported a consignment of gold bars to South Africa and were sent bank, claiming that they were actually steel bars with gold coating/covering. An investigation was carried out and it was found out that the Ethiopian bank had actually had made a purchase of fake gold. The situation appeared to have been solved when fake gold supplier and his business associates were arrested. Among the arrested there were chemists from the Geological Survey of Ethiopia whose job was to certify if the bank's gold purchases were authentic or not.

Now the problem has grown into a much more serious level in the governments point of view. It has been found out that another batch of gold that has been in the bank's vaults for several years has also been analyzed as fake. Because it is the national bank that has been found out to have fake supplies of gold, it has been in the governments concern to inspect all the gold in the bank's vaults. The usually normal process of sending consignments of gold to other banks has presented several serious problems/obstacles for not only the bank and government, but also the gold sellers.

Analyzing all the gold in the national bank's vaults will not only cost time but also money. This would not normally provide that much of a problem but it is evident that the bank/government of Ethiopia has faced and will face huge losses in credit (bank's savings) because the discovery of fake gold leads to the conclusion that the bank has purchased gold plated steel for millions of dollars. The concept that we learnt in class was that a bank provides the opportunity for customers to get interest on their funds. Even though the banks overseas allow considerable percentages of interest (compared to Korean banks), they make that much (or even more) of a profit by buying stocks etc. Following the loss of millions of dollars due to the purchase of fake gold, what will happen to the customer's funds that were used to purchase these considerable consignments of fake gold?

I thought this problem was the most serious one, but looking at it from a sellers point of view, it is also a big disadvantage. Gold is mined in considerable quantities in Ethiopia, and from now on all this gold has to be tested and analysed by the geological survey. This will delay time and also cost the sellers and buyers. Maybe this is why the price of real gold is currently soaring.

It still remains a mystery to whether the gold originally purchased by the bank was indeed fake, or if the real gold in the vaults was switched with the gold coated steel.

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word count 470

SK Wyverns's sportsmarketing.

2008-03-14T07:50:00.000-07:00

No! Bulldog! Yes! Balldog!

Take a look at the word “sportainment(it is a word which is combination of “sports” and “entertainment”)”! In pro baseball, simply fan is just not observer. As the head of a baseball stadium, they are only seeing, but moving on the ground.
Let’s see one of the examples of sports marketing that produces not only pleasure of watching the game, but also pleasure of participating the game. In recent days, the game ‘baseball’ is not just sports that audiences watch the players compete in the game, but audiences also can participate some parts of the game by putting some active elements, and they can actually ‘enjoy’ the game.
This is not an element of marketing which makes baseball a tool of salaries of company, showing the bad side of baseball, but is an element that can produce new excitement to the audience, and can upgrade the standard of ‘true baseball.’
Therefore, at this point of view, dog marketing of SK Wyverns will be very expected. If the dog who named ‘ball dog’ not ‘ bulldog’ is trained by raiser, ‘ball dog’ bring a ball to chief referee when ball is no there and encourage player, coaching staff and fan and so on. Though ‘ball dog’ is only looked down, dog is orientally familiarity and lovely pet. Therefore every movement of the ‘ball dog’ will be issuing. Go forth into the long term, these situation are justly interested by non person who don’t like baseball and clearly connected earnings.

Source: http://osen.stoo.com/news/view_02.php?code=110100&gisano=G0803120038

Student ID#: 20300489 - Entry1

The Newest Model: Infosys reinvents India’s corporate culture, valuing data and democracy over old family ties.

2008-03-09T07:51:00.000-07:00

Infosys, which is a plus technology-services giant, has declared to become the epitome of the modern, professionally managed Indian firm, with a culture of meritocracy based on the idea that anyone could be boss. The founders of the firm take turns to become CEO and retire at the age of 60. They set out some rules, common values, and structure, believing that having those would make a firm successful. Compulsory retirement at the age of 60 is one of the rules. Some founders retire and still take part in the firm activities. Unlike other CEO’s who are being regarded as emperor in the US, Infosys’ CEO is the one who presides over the issues at a meeting and casts a vote when necessary. But, normally, they do not need to cast a vote because CEO tries to bring a collegial and consensus-based environment that allows the best information to come out. All 8 founders use succinct e-mails to address the issue and resolve. They also believe that by doing such, it’ll save time. Recently, they have decided to expand their divisions, each with its own governing body. Founders believe that by being a democracy like such, the firm will keep on going and carry out principles. I think it is a good idea by having a democratic ambience. It’ll keep the morale of the employees high and be fair. Also, by having some rules and regulations, even applied to the founders, there is going to be a standard that everyone needs to follow and will be well aware of them, which they can also get ready in advance.

Source: TIME Magazine (Dec 31, 2007/ Jan 7, 2008)
Student ID#: 20400542

Chrysler: 'The best little car company in America'

2008-03-09T04:03:00.000-07:00

"While sales will decline in the U.S., the automaker says it wants to think locally, but act globally."

Chrysler has announced a new marketing scheme to become "the best little car company in America". It is a known fact that in recent years Chrysler has been facing severely declining U.S sales and an even weaker international presence.

From the material that I have learned in the first and second lectures this week, I can create a generalized overview about the steps that a company must take in order to set up a effective and efficient business plan.

First of all, there must be a valid reason/objective to start up a company or change the way it is operating. In this case, Chrysler is facing declining sales within the U.S and sales overseas are not reaching the company's minimum expectations. To become the best little car company in America, Chrysler has set up a business plan and has set a goal of a global volume (number of cars) of about 3 million cars.

Secondly, there must be an available market (the buyers). Chrysler is planning to cover the declining sales within North American with sales overseas. They are planning to target the consumers that are looking for something identifiably American.

The Business plan/strategy. Currently, the known leading car companies of the U.S can be seen as GM or Ford. These companies have a global product strategy of designing domestic cars differently to the design of cars that will be sold in the international market. This is because these sorts of companies know by experience and surveys that buyers in the international market generally seem to have different preferences (to North American buyers) when purchasing a car. "If you take an American car into the rest of the world, there's a natural reluctance," However, Chrysler is planning to design their cars to appeal to buyers who are looking for something different and identifiably American.

The Problems/Difficulties that Chrysler faces. The reluctance of the international market to American cars (American design) is not the only barricade blocking Chrysler's global market success. There is a saying that "even the roads are against you when trying to sell a car worldwide" because in European cities, streets are often narrow and twisting requiring smaller vehicles (a big proportion of buyers know of American cars as 'fuel guzzlers' [big cars requiring absurd amounts of fuel]). Even through my personal experience, Korean adults have the tendency to think of American cars as a 'fuel waster' and expensive compared to the accessories they offer. Also, the U.S does not have a long-standing reputation of producing high quality or desirable cars. To expand their global market, i think Chrysler should adapt to what the majority of buyers are looking for.

However, it seems that Chrysler is taking a big step of bravery or even fearless motivation by planning to put "a very American face on its products". In other words, they are trying to approach the global market in a totally new way. As I have had very limited experience or education about the business world, this plan seems to be very risky or even foolish. John Hossack of automotive marketing consultants AutoPacific said that "I think it's going to be tough to make up overseas with what they're likely to lose at home," This seems to be leading to a certain decline of sales for Chrysler.

On the other hand it may be a successful plan. Because Chrysler is going ahead with their business plan without offering products uniquely tailored to various markets, it will be even tougher, but Chrysler seems to be having high hopes. I think it is because selling the same car both domestic and overseas will reduce the cost of production because a luxury car like Chrysler can command high prices to offset high costs and also the cost of differing the safety and emissions regulations and peculiar customer expectations will not be required (as the design does not need to be changed).

Last but not least, I think a successful business must learn to change and adapt to the changing environment (in this case global market). Personally, I think Chrysler has taken a brave step towards expanding their markets to a global standard, but I think that adapting to the expectations or requirements of the majority of the market is a necessary step... And as if reading my mind, one sentence stands out among all the others in the article :

' "That represents a picture of the past," Chrysler president Press told reporters recently, promising that quality was already improving. '

Source : CNNMoney.com

Word Count 750

20600392

Beer Brewers Juice up Their Flavor Varieties

2008-03-08T23:23:00.000-08:00

Have you heard of "craft" beers? It is beers added flavors like orange, mango, vanilla, pears, limes, raspberry, cranberry, and pumpkin. Anheuser-Busch which is the world's largest brewer began exploring flavors in 2005. However, the craft beers like Michelob Ultra in Pomegranate Raspberry, Lime Cactus and Tuscan Orange Grapefruit flavors hit last spring. Budweiser & Clamato Chelada and Bud Light & Clamato Chelada also came out with beers mixed with Clamato Tomato Cocktail, a clam juice flavored, and Bloody Mary type mixer last month. In these days people are looking for variety of food and drinks. Markets should keep up with them because craft beer sales were up 17% in 2006 while all domestic beer grew just 2%.

Labeling
Since the craft beers are going mainstream as brewers reach for sales growth, Anheuser-Busch will have Bud Light Lime includes real lime juice in May. Anheuser-Busch names by Bud Light because they think it is an opportunity to have mainstream and they also guarantee this as not a small niche. Miller Brewing also introduced Miller Chill which is a light bear flavor with lime and salt. Miller decided to put flavored light beer under its own brand name. The reason why not make it a variety of Miller Lite is the marketers believe it sounds more premium.

Opinion
I do not drink beers because I do not think it tastes good. However, I like to enjoy drink cocktails in jazz bar. There is a problem because it is hard to get a cocktail in grocery stores. If the beers taste like cocktail and easy to get, then I will buy it. I believe there are many young people like me. I think the target for this flavored beer is young drinkers. This marketing is successful because it directly affected the growth.

Article from "USA Today"
20600225_ Entry 1

Quality over Green: Nike's New Air Jordan

2008-03-08T06:43:00.000-08:00

Earth friendly companies have been welcomed into the markets. However, just being earth friendly is not enough. The Air Jordan XX3 has showed how great success came out when value is added. Nike’s new Air Jordan XX3 is made up with earth-friendly materials. Although Nike made an earth-friendly product, they did not focus on the “green” aspect of the sneaker.

Number marketing: putting more value on 23

Nike focused on putting more value on the Air Jordan XX3 by promoting the number 23 rather than promoting the earth-friendly product. Number 23 is the number that Michael Jordan had used for his career and it symbolizes Michael Jordan. Nike released only twenty-three pairs of the first, limited-edition version of the 23rd shoe in the line were available in only 23 stores. Even the number price is set to $230, which was at a high price. This promotion enraptured “sneaker heads” (fantastic collectors willing to pay top dollar for limited-edition shoes). Even thought there was another edition they bought it at a price (released 3 weeks later) of $185.

About Air Jordan

A division of Nike, Inc. The Jordan Brand is a premium brand. The first AIR JORDAN was released in 1985 during Michael Jordan’s rookie basketball season and instantly became the industry’s best selling basketball shoe. Over the next 22 years, the AIR JORDAN has been one of the world’s most recognizable franchises known for its signature "Jumpman" logo, innovative technology in basketball and forward thinking fashion.

Opinion
As giving more meaning (value) to the product, such as number 23, Nike was able to set the premium price. Some people criticize about setting the premium price since both the limited-edition and general edition are the same product. However, I think that the customers who bought the limited-edition paid the value of number 23. Since the customers got satisfaction, it was a winning game for both Nike and the customers. Moreover, since Nike did not promote the green factor, people will think that Air Jordan is basically an earth-friendly product.

Source: - Quality over Green: Nike's New Air Jordan, Business Week
http://www.businessweek.com/innovate/content/jan2008/id20080125_828346.htm
- Michael Jordan’s Back (Again), Business Week
http://images.businessweek.com/ss/08/01/0125_nike/index_01.htm
- jordan-brand-launches-air-jordan-23, hoops.blink.ph
http://hoops.blink.ph/2008/01/22/jordan-brand-launches-air-jordan-23/

Student #: 20400152