What Aspects of the Korean Market Are Favorable for Korean Food - Case Study Example

Global Marketing Affiliation What aspects of the Korean market are favorable for Korean food? What aspects of Korean honey marketare unfavorable for Korean Food? There are different favorable aspects that benefit the Korean food in the Korean market. First, there is a strong financial position for the Korean food. Good financial positions make it possible for the Korean foods to have future marketing plans (Hollensen 2014). Thus, this makes sure that the Korean food exists in the food industry in the future. Therefore, it is favorable for the Korean foods because they will continue to be in the market for a long period due to enough finances to market and make products that satisfy their customers. The Korean markets provide connections for the foods. Networking helps the new brands to improve their sales and markets. The networks expand the market segments for the new brand to increase the customers and reach the targeted customers (Philip & Keller, 2005). Thus, it is significant to have the connections to increase the market awareness of the brand. Lastly, there are enough infrastructures in place to make sure that there is efficient movement of the products. Honey needs good storage facilities to be in place. There is also need for transportation requirements to reach the customers. The Korea market has enough transport modes, roads, and railways to enhance the movement of the foods. Thus, the Korean foods have the advantage of the efficient infrastructure to improve its connections. There exist factors in the same market that make it unfavorable for the Korean honey. First, is the less experience on circulation of the products in Korea. The Korean culture and the environment of business are somehow different. The Korean food has only done some few exporting to Japan; thus, the Korean market does not do much international marketing. The globalization involves advertising the products overseas past Japan. As a result, it may provide great business to the business through broadening its customer base and improving the reputation of the Korean food brand. Customers prefer a brand that is selling in various markets to be of better services and higher quality than the other brands, in this case, the food markets. It may also provide opportunities for future opportunities in the international Korean market (Adcock & Al Halborg, 2001). Secondly, the Korean food act as an intermediary and not the producer. Thus, it has less control over suppliers in crucial factors such as quantity, quality and packaging technology. Managing of suppliers makes them improve their quality of their products, and it is the important factor in selecting a supplier (Kerin, 2012). Having control over suppliers is important because the suppliers with excessive knowledge on the market conditions and other contemporary issues can be a disadvantage in the product market. Thus, the Korean food market needs to have good control over their suppliers to improve the quantity, packaging technology and also the quality. Thus, it needs to be start producing their products and also act as the middle. It will improve its key aspects and also enhance their financial position. Therefore, the Korean Honey Market can take advantage of the favorable markets, increase its efficiency and awareness, and be aware of the unfavorable aspects to avoid poor performances. What are the key uncertainties in the strategy suggested in the marketing plan? How can these uncertainties be reduced? Is it worth doing so? The uncertainty that face Korean Food Importers is the trends of Canadian honey entering the Korean market by importers. The Canadian honey may pose a great competition in the Korean market to the Korean honey. The plan assume that the Korean Food Importers of Canadian honey may not have competitive advantage in the Korean market concerning prices. Therefore, they should be certain if the Korean Food Importers of Canada will be joining the Korean market, or they will not join. There are different restrictions that govern the importation and exportation, and there are uncertainties towards the legal restriction towards importation. The Korean local businesspersons are not sure if the restrictions will be minimal due to pressure from the Korean honey producers. The restrictions towards the importation of products from other countries limit the Korean honey market from globalization. Additionally, it may also have issues on the exportation of their products making it difficult for them to improve their brand reputation and popularity (Kerin, 2012). Hence, with this assumption the Korean Honey market may not be able to pursue a great profitable, competitive strategy that will outdo the new entrants in the third phase. The plan is to have honey act as food. Thus, the uncertainty is if the consumer behaviors can change towards the honey market. Most of the consumers in Korea view honey as health or medicine tonic. The market planners assume that the consumers behaviors can get changed and make them view honey as food. Thus, if the consumer behaviors will not change can result in few customers as planned resulting in fewer profits. As a result, it can lead to fail for the market plan due to fewer profits that may assist them in expanding its market. The plan assumes that the phase one plan will become profitable, the plan phase two and three depending on the profitability of first phase. It may be dangerous since it is not a fact that the plan will be successful (Kerin, 2012). It is because there are still some other uncertainties in the market that may distract the operations of the market plan. Thus, the plan should not rely much on the gain of profits from the first phase since there could be any changes. It is important that the uncertainties get reduced. First, the uncertainty on the entrance of Korea Food Importers of Canada needs to get researched and be certain so as to have plans that will also cover the maintenance of competition once they join the market. The unsurely of the profitable incomes has to be reduced by ensuring that all the plans are done as it is in the market plan and reduce the other uncertainty that can interrupt the performances. Lastly, the consumer behavior towards honey will have to get contained through increasing awareness of the brand through adverts (Kotler & Keller, 2012). It will help improving the consumer’s beliefs and change their opinion on Korean Honey Market. It is worth reducing the uncertainties to enhance the success of the market plan. The uncertainties will distract with the plans for the market in different ways. For instance, when there will be no profits in the first phase then it will be difficult to implement the plans for the second phase. Therefore, it is important to reduce the uncertainties to ensure that every phase succeeds. How the marketing plan could be improved The marketing plan has some diverse issues that need to have some improvements. The enhancement on some of the plans will help to ensure that every plan implementation are successfully. The plan is to understand both the external and internal environment as it is suggested by Hollensen (2014). In this case, the plan has to improve its relationship with the consumers or customers. The consumer behavior towards honey in Korea may affect the market plan. Therefore, the plan should be able to determine the customers and their expectations for services and products. It gets seen that the main consumers are the foreigners in the Korean Hotel. They should be strategies to influence the local people in Korea to purchase the honey to increase profitability. The plan should exceed customers expectation, for instance that the honey can only be for medical purposes. They should have strategies to show the local Korea people that it can perform other functions thus to improve the market segment. More adverts and awareness will help the consumer to understand the objective or purpose of the product. The plan should also include free workshops and classes that get linked to the services and products of the Korean Honey Market. The classes should have targets for certain events and audience to improve the understanding of the products and the services offered. It is important because some of the employees need to have some skills in carrying out the performances and making good decisions (Kotler & Keller, 2012). The institutions will also ensure that everyone that takes part in the plan works according to the expected marketing plans. There should also be strategies to join networking groups and business organizations (Kotabe & Helsen, 2004). The Korean Honey Market should join the home-based business groups since they are inexpensive to join. As a result, there are various marketing advantages. Once other organizations get to know about the Korean Honey Market, they will mention the business to other firms and business give it referrals. Also, the local business organizations offer a great opportunity to develop and participate in other marketing strategies like holding the special market days along with other events. Thus, the main objective will be increasing awareness in local environments in Korea and get more Korea customers to purchase honey for food. The market plan should also include plans to develop or become center and front in charitable events (Kotler & Keller, 2012). In such events, the Korean Honey market can get in contact with a great amount of press that may translate to new consumers. It is not necessary that Korean Honey market create its events since there might be no enough capital to have the events. Therefore, it is important taking part of certain events to increase it markets segments and its customers. The plan should also include an advertisement in social media. The Korean Honey market should use the social media also to enhance their plan on internationalizing their market. There should be plans for creating a blog will build a great audience that will have interests in the product and services. Developing a blog is much cheaper compared from creating a website. The other social media tools that can be in consideration are twitter, Facebook, Twitter, and Instagram. The social media tools also increase the audience globally in the process of expanding their markets internationally (Philip & Keller, 2005). Kevin Lee opposes Koreans Food’s expansion into export because they don’t know what they are getting into. Take Kevin Lee point of view and address the issues he raises. Exporting refers to more opportunities though it also entails great risks especially to an industry that has fewer experiences. Even though the international trade has changed over years, the kind of risks that exporters face while they are selling their services and products are essentially the same. In this case, the Korea Honey Market doing business internationally will need know the different possible risks that they can encounter (Kotler & Kevin, 2009). Therefore, it may not be advisable for the industry to engage in exports due to diverse risks. First, there are different political risks that can cause major setbacks in involving in exportation. In this case, the political instability will disrupt or prevent export contracts completion (Adcock & Al Halborg, 2001). The sovereign risk type can lead to payments defaults, exchange transfer blockages, foreign assets nationalization, property confiscation, and government policies change. Now that the Korean food market has less experience on exportation may affect the goods and services flows and affect the goods delivery and getting paid. Therefore, the market may have losses in the export operations. Second, the process will have some legal risks. For instance, the Korean laws may differ from other laws of other countries. The market plan has no enough information about other countries laws that may hinder their exportation process. The market need to understand the differences and how they may affect its ability to export the services and products successfully. Thus, there is the need for more research for a perfect plan for the exportation. Thirdly, there is also the risk for quarantine risk. Most of the countries have very strict requirements (Kotler & Keller, 2012). Thus, before exportation the market need to be aware of the relevant quarantine laws on the export destination. There can also be import restrictions on services and goods that the Korean Honey market need to make sure that their exports have permits under the law of the destinations. It is to avoid forfeiture or goods destruction, restrictions or fines. Fourth, the exchange rates can also become an issue for them. It is because of the currency fluctuations. Following that there are no plans for contacting any financial institution for advice, they may have no protection for exchange risks. Thus, this may result in losses on their markets and reducing their performances (Kerin, 2012). Thus, it is due to these risks that they might face the Korean Honey market once they join the international markets; it is not advisable for them to engage in the process. Therefore, the market need to research and analyze the international exportation environment and determine the appropriate exports destination. Hence, I agree with Lee that it is not appropriate for the Korea Honey market to expand into exports and its second maybe in future. REFERENCES Hollensen, Svend (2014) Global Marketing, 6th edition, Pearson, Svante Andersson & Göran Svensson (editors) (2009) Global Marketing: think globally and act locally, Lund: Studentlitteratur, Kotabe, Masaki and Helsen, Kristiaan (2004) Global Marketing Management, 3rd edition, John Wiley & Sons, Philip Kotler & Keller (2005) Marketing Management, 12th edition, . Kotler, Philip & Kevin L Keller (2009). "1". A Framework for Marketing Management (4th ed.). Pearson Prentice Hall. Adcock, D & Al Halborg, C. R. (2001). "Introduction". Marketing: principles and practice (4th ed.). Xavier thomas. p. 15. Retrieved 2009-10-23. Kotler, Philip & Keller, L. Kevin (2012). Marketing Management 14e. Pearson Education Limited 2011) Kerin, Roger A. (2012). Marketing: The Core. McGaw-Hill Ryerson. p. 31. Read More