CASE STUDY 10 : YOON CHOI CORPORATIONAl-Khatib Yara Vincent Julie 318

PLAN

Overview

Synopsis of exhibits

Existing Situation

Statement of Problem

Options

Recommendation

OVERVIEW Korean Corporation Founded in the 1950s Began to export in the 1960s

From a small-scale manufacturer of clothing and textiles to a diversified corporation :

Machinery Electric & Electronic Textile manufacturing General trading Real Estate development

40% of its sales are now overseas Sales are steady but relatively small compared to other

Japanese and Korean competitors

OVERVIEW There are 2 characters:

Woo-Young Jun, International Marketing Director of Yoon-Choi Corporation

Phyllis Stevens, Senior Marketing analyst of Pembroke Marketing

Localisation : Seoul San Francisco

SYNOPSIS OF EXHIBITS

Dialogue between Woo-Young Jun & Phyllis Stevens : Electronic products marketing Distribution issue Reasons of their non-successful experience in US

market

SYNOPSIS OF EXHIBITS

Exhibit n°1: Yoon-Choi(s 1982 Production and Marketing Costs (including sales figures) for its electronic products sold in the US

SYNOPSIS OF EXHIBITS

Exhibit n°2: Current and Proposed distribution systems for yoon-choi products in the US

SYNOPSIS OF EXHIBITS

Exhibit n°3: Korean Share of Total U.S Consumer Electronics Import, 1971-1980 (in millions of US$)

SYNOPSIS OF EXHIBITS

Exhibit n°4: Import Dependency of the U.S consumer electronics market by major product, 1971-1980 (in thousand of units)

SYNOPSIS OF EXHIBITS

Exhibit n°5: Summary of Stevens’ Report regarding initial expansion strategies

EXISTING SITUATION : PRODUCTION

Strengths Weaknesses

Control of Production & Quality

Costs

Competition in the sector, starts late compared to Samsung, Gold-Star or Taiwan Electric Wire

Recently starts manufacturing Electronics features instead of subcontracting

EXISTING SITUATION : DISTRIBUTION

Strengths Weaknesses

Great spread of the products Visibility

Distribution mode: Dual mode ( through retailers & Yoon Choi Trading)

EXISTING SITUATION : MARKETING

Strengths Weaknesses

Already established in the lines with greatest potential regarding the competition

No comprehensive marketing strategy

No communication or marketing about Yoon Choi

No marketing for Yoon Choi products in the US

STATEMENT OF PROBLEM

Yoon-Choi Corporation wants to make more profit in the US market by taking into account

distribution and marketing issues.

OPTION 1: STATU QUO

Advantages Drawbacks

See how the market will evolve

Loss of opportunities

Loss of brand recognition if competitors are doing well

Keep increase the gap between Yoon-Choi and the competitors

OPTION 2: ADOPTING THE NEW DISTRIBUTION SYSTEM & FOCUSING ON COLORED TV

Advantages Drawbacks

Perceived as a trendy company

Hard to make a name

Long term solution (Specialization)

Not an American brand

Strong competition of Gold-Star

OPTION 3: FOLLOW THE PROPOSITION OF STEVENS NEW DISTRIBUTION SYSTEM; MORE COMMUNICATION; VOLUME ORIENTED PRICING

Advantages Drawbacks

More incomes Costs

More visibility If the prices are too low; consumer will see Yoon-Choi’s products as low quality

Reputation in the U.S market

OPTION 4: CREATE A SUBSIDIARY IN THE USA

Advantages Drawbacks

Impose itself in the U.S market

Cost labor in the USA

Better image for US customers Cost of implementation

More profits Time consuming

OPTION 5: GET OUT OF THE US MARKET

Advantages Drawbacks

No more costs on the brand image

Loss of the US market opportunities (US depends on imports)

Can concentrate on other markets with less competition

End of partnerships established with retailers and whosalers

Possibility to observe the evolution of the market while creating a stronger brand recognition

Debate: According to you which is the most important

criteria: Distribution or Marketing?

RECOMMENDATION

Our recommendation is : Option n° 3

Thank you !Do you have any Questions ?