Yoon choi corporation

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1. YOON-CHOI CORPORATION Lena Lieuvin Jean-Philippe Nitkowski CRISIS AS AN OPPORTUNITY 2. OVERVIEW Description of the company Korean company founded in the 1950s Before : small scale clothing and textiles manufacturer Now : Machinery, electric, electronic, textile manufacturing, general trading and real estate development Over 40% of its sales are overseas 3. OVERVIEW Names and positions : Woo-Young Jun : International Marketing Director, Yoon-Choi Corporation Phyllis Stevens : Senior Marketing Director, Pembroke Marketing Management Associates 4. OVERVIEW Dialogue Mr Jun and Mrs Stevens are in Mrs Stevens office in San Francisco Discussion about the marketing strategy and the identification of problems for the electronic products 3 main problems identified by Mr Jun : - They started late - They started only recently manufacturing their own electronic products - Their distribution method is not adapted to their expectations on the US market 5. OVERVIEW 6. OVERVIEW 7. OVERVIEW 8. OVERVIEW 9. OVERVIEW 10. OVERVIEW Exhibit 5 : Summary of Stevens report regarding initial expansion strategies Change the distribution Change the products Change the pricing Change the promotion 11. EXISTING SITUATION COMMUNICATION Strengths Weaknesses Low-cost products High quality Fear of the competition No marketing campaign 12. EXISTING SITUATION INTERCULTURAL DIFFERENCES Strengths Weaknesses Adaptation capacity of Korean people Kibun Extremely different culture Difficulties of communication 13. EXISTING SITUATION INDIVIDUALISM Strengths Weaknesses Collectivist culture High power of distance : Mr Jun is more likely to follow Mrs Stevens advices Dont really speak their minds 14. EXISTING SITUATION UNCERTAINTY AVOIDANCE Strengths Weaknesses Cautious approach of the market Risk of difficulties implementing a mass distribution strategy 15. STATEMENT OF THE PROBLEM The sales in the US market are steady but relatively small. Very fierce competition Need to increase the visibility of the brand and the sales volume on the US market 16. QUESTIONS What do you think of South Korea ? Do you think that Mrs Stevens is a good advisor ? Do you think that it is possible for Yoon- Choi to improve their situation on the American Market ? 17. OPTIONS Option 1 : status quo Pros Cons No fees due to the organizational change No evolution of the sales volume No increase of the brand visibility 18. OPTIONS Option 2 : Only change the brand name Pros Cons Increase the visibility of the brand Change the brand image No real possibility to increase the sales volume 19. OPTIONS Option 3 : Change the distribution process Pros Cons Possibility to increase the sales volume Expensive Doesnt change the brand image Doesnt improve the visibility 20. OPTIONS Option 4 : change the brand name and the distribution process Pros Cons Increases the sales volume Increases the visibility Makes it easier to face competition Possibility to gain market shares Expensive 21. OPTIONS Option 5 : Leave the US market Pros Cons No money lost or spent on this market Allows the company to focus on other markets with bigger marketshares Abandon of an opportunity Loss of market shares 22. OUR RECOMMENDATION OPTION 4 : Follow Mrs Stevens advices and change the brand name and the distribution process 23. THANK YOU FOR YOUR ATTENTION