Entry 7_20700457_DongSoo Joseph Rhee

Massive DSLR Boom in KOREA

Have you ever seen anyone walking around the downtown street with a comparevely big camera around their neck? Thesedays, it is not hard to spot a person with a DSLR camera. Only several years ago, DSLR camera was only for proffessional photographers. However, DSLR camera had been spread widely dectenly.





Two girls comparing eachother's picture


Let's look at the definition of DSLR camera first. DSLR stands for Digital Single Lens Reflex camera. which means that you take picture of exactly what you see. Other Camera formats, such as RF, or TLR camera might have difference between what you see and what you take picture of. People prefer DSLR cameras over compact digital cameras, because they generally give people better picture, since they have bigger CCD (Charge Coupled Device) image sensor, and benefit of changing lenses.


Then what is the reason for this rapid spread ? There are several reason for that.


First and the most important reason is the company's sterategic decision has been made. Back then the prior consumer and the target segment for DSLR camera was proffessional photographer group. Therefore, the price didn't have to be low, and the function and spec of the product had to be high-end. However, the frontier companies of the DSLR camera changed their target segments to the public, non-proffessional, ordinary people. Therefore, the various functions and specs which proffessionals need, could be removed, and that caused a huge amount of price cut-down. As a result, people were able to afford dslr camera at a relatively cheap price.

Secondly, the well developed internet system in Korea incited people to buy DSLR cameras. In korea, blog, and personal website is so easily found. And picture section is the most popular part of blogging. Because of the development of servers, the limitation of the volume of the data that can be uploaded is being increased alot. As a result, people started to look for better pictures. Also through the web, people had more easier access to the information of DSLR camera.


250,000 DSLR cameras were sold in the year of 2007, which is nearly 10% of total camera market in Korea. Analisists estimate that DSLR camera market will grow 0ver 20 ~ 25% than the last year.







There are no other markets where the DSLR cameras had been spread this rapidly, I believe this is the result of excellent management decision. It is the essential ability for the business man to find the new trend and make the right decision towards fast changing world.

# 8 Entry / 20500297 (9th week)

Creative Korean CEO: WooHyun Kang

Spring has come! Spring season always makes me want to go out for a picnic. Flowers blossom, the Sun is shiny, it's just the perfect weather to take a walk. There are many famous places to visit in spring, and one of those places is 'Nami Island'. (The photo I attached) It's the place where many families and couples visit because of its beautiful view. I have been there when I was in elementary school and I still remember all different kinds of trees and a small amusement park there. It's just a peaceful place to get rest.

His Motivation) The reason I introduce you this place is to talk about the CEO of Nami Island, WooHyun Kang (55). Because of his managment style and strategy, Nami Island became one of the nicest place in Korea. He has been dreaming to creat a fairy tale-like world where people and animals get joined together for 8 years. Actually, he was a graphic-designer of children picture book. 'Is there any place I can creat whatever I imagine?' This thought of him was his management motivation, he said. In late 1990s, Nami island was driven to a corner because of high debt. The low-quality of facilities and highly-priced products sent customers away. The previous CEO of Nami Island came up to WooHyun Kang and asked him if he wants to manage Nami Island for a chance. WooHyun Kang accepted this offer with a monthly salary 1,000,000 Won. (which is very low as a CEO's salary.)

Reuse products & Motivate and support employees) At first, he couldn't do many things to change this corrupting management. The only thing he could do was reuse existing facilities and stuffs. All he had was almost a garbage, but he saw the potential of it. He used empty bottles to build a wall and made some artificial statues and vases that can be sold. He called one of district office located in Seoul, and asked them to throw away ginkgo leaves in Nami Island. Automatically, Nami Island changed into esthetic place that attracts people to take a walk. In order to save operating money, he left weed and wild flowers, and as a result, birds and bees flied in. Most importantly, he didn't forget to encourage his employees through a special party and gathering. He thought that the very first thing he has to do to make a change is let employees feel that he is a supporter of them. I guess that's what made WooHyun Kang to be respected and honored.


"Management is imagination play.") As he said so, through this article, I learned that professional managers are those who imagine and see what others can't see. Instead of direction and regulation, he actually created, drew, and show what he wants to change. Showing a small change creates a bigger change, I believe. I mostly focus on what I can do within a certain rule, but that's what made me lack of creativity and innovation. Plus, the way he emphasizes more on people and mind than system and money is something I should learn. As professor said in class, human resource is the resource you can't easily replace with other sources. Once I have someone I can totally trust and rely on, it will be so hard to change that person with other valuable things. As a future manager, I need to see the hidden potential of people around me. Everyone of us has a different potential given by God. Finding that potential and encourage people can be the first thing I can do. If fine management comes from imagination, as CEO Kang said, I think imagination comes from seeing invisible things. Invisible things become visible when I have a faith. Yes, in conclusion, God is the best manager! :)

* Reference: 중앙일보) '이름 빼고 다 바꿨다, 남이섬의 상상놀이 경영' by 박현영 기자
* The date is Friday, but it's Saturday today- (April 26th, in Korean time)

Entry7_20400495

From Bricks and Mortar to Digital Music Master

As the technology grows faster, many industries, such as music record retailers are having a hard time adjusting their business model to this change. Though other music records are struggling, a store called Other Music is still making profits. How is this possible? Let’s take a closer look at this store.
Other music, in business since 1995, a New York retailer specializing in obscure CDs and vinyl, is trying to change its business model according to the industrial change. The data by the IFPI, a London record industry group tells us that worldwide digital sales mushroomed to $2.9 billion in 2007, up from $20 million in 2003. It says online and mobile downloads accounted for 15% of all music sales last year, across more than 500 digital services

Small is Beautiful

According to Aram Sinnreich, co-founder of Radar Research, small shops such as Other music has a huge advantage compared to major music shops. He says “Theses small retailers are the kinds of places that build musical communities in ways that Wal-Mart and Best Buy and even Tower Records never really could.”
Other music is doing quite well using their advantage as a small retailer shop. Followings are the few business strategy that Other music is putting stress on.

Download service

To compete with digital music stores such as iTunes or free file-sharing programs, Other Music launched its own download service, capitalizing on its close relationship with independent artists and small labels that don't sell on iTunes. Digital downloads have brought in almost a quarter of Other Music's revenue since the system launched one year ago. Only U.S. customers can access the online store now, but Other Music plans to expand it to other countries.

Selling on-line

Other Music has long sold rare vinyl records, but now the store is pushing the collectibles on eBay. The albums command higher prices at auction than off the shelf. The sales also extend the store's brand to music mavens searching the auction site who may become customers for Other Music's digital or mail-order services.

On-line news letter

Nearly a decade ago, Other Music started an e-mail newsletter to review records and tell customers about new artists and albums. Now that update, which goes to 25,000 subscribers every week, is a central part of the company's marketing, driving walk-in, mail-order, and digital sales. Through the newsletter, Other Music has built a reputation as a tastemaker in the indie music world, increasing the brand's value.

This small shop was clever enough to find what they are good and what they are not. They’d also distinguished between their opportunities and threats. In other words, Other music done well on organizing SWOT. As we learned from the class, before starting any kind of project, we need to figure out the SWOT first. Like the case in Other music, though selling CDs and vinyl discs are becoming more and more obsolete, they used their strength as a small store and overcame the obstacles. Another lesson we can learn from the lesson is the importance of segmentation and targeting. Other music did not try to sell popular and trendy albums like Kanye West, or Madonna. Instead, they targeted the manias who are interested in indie and underground music. This made them possible to earn profit by selling CDs. The last lesson we can learn is they had modified their business strategy according to the fast growing environment. Instead of sticking on the original selling method, they added on-line selling using E-bay and used on-line newsletters. This also made them to prevent getting behind the trend and constantly getting touch with the consumers at a relatively low price.

Reverence:http://www.businessweek.com/smallbiz/content/apr2008/sb20080421_919951.htm

20700443: Entry-7

McDonald's Gets A Fashion Makeover

McDonald's is one of the world's most well-known and valuable brands all over the world, it is known for its quick service eating out segment. This brand takes a sustain place in the world market and has its franchises in many countries. McDonald's offers a variety of favorite foods, like World Famous French Fries, Big Mac, Quarter Pounder, Chicken McNuggets and Egg McMuffin. As many other companies, McDonald's wants always to take the leading position in the market, so that it tries to please it customers not only with variety of food, but also with the atmosphere and suits that can express the recognition and uniqueness of its brand.
According to the latest news that was published on April 23, 2008, McDonald's providing its stuff with new uniform designed by one of the famous dressmakers, Bruce Oldfield
McDonald's is one of the world's most well-known and valuable brands all over the world, it is known for its quick service eating out segment. This brand takes a sustain place in the world market and has its franchises in many countries. McDonald's offers a variety of favorite foods, like World Famous French Fries, Big Mac, Quarter Pounder, Chicken McNuggets and Egg McMuffin. As many other companies, McDonald's wants always to take the leading position in the market, so that it tries to please it customers not only with variety of food, but also with the atmosphere of environment and suits that can express the recognition and uniqueness of its brand.
According to the latest news that was published on April 23, 2008, McDonald's providing its staff with new uniform designed by one of the famous dressmakers, Bruce Oldfield. They replaced brightly colored uniforms with more serious outfit that includes black, beige, and brown colors.
Two types of clothes were designed or both male and female, but colors stay the same, for example, female management staff wear high heels, pencil skirts and scarves, male wear suits, and the staff who serve the food wear polo shirts.
As it is known, the uniform will appear by the next month in UK; however, already now McDonald's staff has liked the uniform and feels more confident in them, so that customers start respect them more than before.
McDonald's is sure that not only with meal people can make advantage but also with the appearance of staff serving the customers.

Resources: brandrepublic.com

Entry7_20700347

Woong-Jin Coway

Do you know the brand ‘Woong-Jin’? Woong-Jin is the company that does many businesses in various areas like SamSung. They include many sub brands. Among them, Woong-Jin coway is the company that produces home appliances which are related with water. So they produce a water purifier, a bidet, and things like that.
According to the article, the Middle East countries and the India were startled at Woong-Jin coway’s water treatment techniques, because Woong-Jin has many good water treatment techniques. So this company is good at improving their skill to control water, and it also good at personal selling. In fact, through many air television commercials, this brand gives impressive image to a lot of consumers including me. Especially, they emphasize several points in their advertisements. Then, what is that they emphasizes in their commercials? That is a ‘cody.’
A cody is a staff who evaluate a purifier’s conditions. Usually, cody visits consumers’ house and then they check the purifiers. In this way, Woong-Jin coway can walk up to consumers closely, and it can be called ‘face-to-face strategy.’ Because if a cody check and care a purifier’s condition well, consumer would believe this brand more and might become a Woong-Jin’s real consumer. For example, this company has a program that rental their products. If a consumer receives a cody during their rental home appliances periods, they might has a mind to buy Woong-Jin coway’s products. In other words, this company has been improved their value through rental marketing and cody system.
To tell the truth, there are a lot of people who are not good at using a purifier well. For instance, some people who possess a purifier don’t know how they check their purifiers, so the ‘cody system’ may give consumers useful tips. Also, through this system, consumers can know Woong-Jin’s products well than ever before. Therefore it is very nice in many ways.
In my opinion, Woong-Jin has been embossed personal selling. In many TV commercials, a cody who are neat and tidy make he or she appears. This could give neat and believable impression to the public in Korean society, and so they increase market share gradually.
Recently, Woong-Jin coway accepts ‘madamsumer’, a conjugation of two words; madam and consumer. In this company, several madamsumer are going to do their work. To illustrate, they should evaluate the company’s products, marketing strategies and participate in environmental movement. In this way, Woong-Jin could hear consumers’ opinions and understand a consumers’ position. And later, it would be benefit to planning their marketing strategy.
In 21 century, water is the most important resource all over the world, so I think that a business which is related with water can core business in our surroundings. At present, Woong-Jin coway is making an effort on their improving skills, and marketing strategy. But they should keep that communication with consumers is very important and should be continuous in their minds. In addition, relations with company’s consumers should be deeper, because personal selling is core part of their business.

20700347

Resources : http://news.mk.co.kr/outside/view.php?year=2008&no=162428, http://www.coway.co.kr/intro/company/company.asp

Entry 7_20500687

Hide the Doritos! Here Comes HR
Working environment, one of the critical long-term strategy of the firm :)

As a business majored student, I learn various companies’ marketing strategies. For this week’s journal entry, I picked the article about a part of the culture of organization which at first is hard to recognize but later could be an important culture standard. Firms are putting health food in corporate break rooms, cafeterias, and vending machines dumping donuts in favor of organic fresh fruit deliveries.

People eat high calorie donuts such as Krispy Kreme, cookies, and high sugar-based deserts for their regular meeting times, breaks, and other times as well. It seems almost they are eating by habit which they had carried since they work at the firm. In Google, for example, there is the word ‘Google 15,’ which indicates the number of pounds Googlers say that they typically gain after joining the company. What excuses could they make for it? Some people might claim that it is all about self-control. I partly agree however, one of the most significant factors of this problem is the environment. Thanks to the article especially the Human Resource department of the firm, they now have healthier eating environment. Since Google is famously known as the company which committed to doing no evil, they stock the vending machines, cafeterias, and break rooms with fresh fruits, low calorie snacks like cereals with dried mangos, and waters in replacement of soft drinks. Consequently, now Google has 50:50 the junk-healthy ratio in everywhere including agave-sweetened beverages, roasted nuts, sulfate-free dried fruit, and platters of organic crudités. Like Google, Yamaha Corp. of America and Caterpillar are also doing this healthy food surrounded project within the firm, which I think that they are on right track for both individuals and the firm itself.

Establishing new culture of the working environment including this eating habit is very difficult at the beginning and it sometimes is almost a challenge to change or to settle the new trial. Analyzing this article, I could see the two sides of the company’s purpose of doing this project. I think Google does a good job get supported by human resource department that cares the employees the most as well as the company itself in a long-term. They recognize that unhealthy eating environment is not at all good to the company. That I consider it as a company’s hidden strategy which might bring positive effects to the employees personally as well as efficiency of work for growth of the company. This new culture will be one of the big differentiations to distinguish from other average companies and make the company more advanced not only with the products but also with the business culture.

Reference - http://www.businessweek.com/

# 7 Entry / 20500297 (for 8th week)

Magic Kingdom: Disney's Revival


In order to prepare for my job interview, I have started reading newspaper everyday. So as usual, I was reading each article carefully, and I found an article about Disney. Basically it says Walt Disney is growing with its new CEO, Robert Iger. As the graph I attached tells you, the sales and revenues have been growing. But the thing we need to think of is, 'why?'

Personally, when I was very young, a lot of characters of Disney were my close friends. I remember that I even cried while I was watching 'Lion King.' (Yes, at the moment when Simba's dad was falling over a precipice!) In class, we've already talked about Disney's case with our professor. He pointed out that Disney could be successful because it has a story that we can share and remember as a precious childhood memory. That can be one reason of Disney's success, I guess. Other reasons explained in this article are first, Disney started targeting not only children, but also teenagers, twenties, and even adults, and second, with their famous animations, they created musical show, ice show, and concerts which attracted many customers and consumers.

But most importantly, Disney's new CEO, Rober Iger's management style was totally different from the previous CEO, Teri Isner. While Isner was a kind of dictator, was satisfied with his own decision only, Iger respects his employee's ideas and thoughts and it creates creativity. After Disney took over Pixar from Apple, Iger let it maintain its previous working style, helping employees focus on work effectively with a feeling of freedom.

Although there are a lot requirements that a company's CEO should have, I believe that 'respect for employees' is one of most signifant aspects. For a CEO, it must be hard to show respect and satisfy every single person that works for his company. Without love for Disney and its employees, Iger couldn't have shown respect or let employees have their own opinion towards Disney. The person who loves has learned to give freedom to those he loves. Freedom is one of the greatest gifts we can give. It is what Jesus came to give us, and we must also give it to others. I think That's what Iger has been doing so far. A leader should definitely operate in love because what is on the head flows down to the body as the Bible says and what that love shows is respect. I'm looking forward to seeing another level-up of Disney with Iger. His giving of freedom to employees will bring a new successful story of Disney.

References*
한국경제) '매직킹덤: 디즈니가 부활한다' by 이미아 기자

* entry 7 by 20500297 =)

(Please note that this blog is not late even though it is uploded on Saturday. This one is for next week. - same with the 5th entry - I just want to make sure. Thank you!)

20700457 DongSoo Rhee Entry 6

Internet Ads: Irritating or useful ?

These days, you see all kinds of Ads on the internet.

Every website you visit, you can easily spot ads.

What do you think everytime you see those ads ?

There is a debate going on about "are internet ads irritating and ineffective.

Pro: Ephemeral and Annoying

The most common opinion between Pros is that internet ads are annoying and unuseful. What is the last ads you've seen on the web. Nobody can answer that question easily. That is because, people see uncountable number of ads in such a short time, and they are not attractive enough or relavant enough to draw customer's attention. Moreover, statistics shows that about 50% of the action of actually cliking ads are unintentional. If a person clicks on the advertisement on the web accidentally, during web surffing or data searching, and it links to other pages or flash pops up, it is unimaginably annoying. This situation gets deep, if he is in a hurry. Also, most of the ads are irrelevant to the users. Therefore, a very few ads can be attractive to a specific user.

Con: Pertinent and Precise

The most popular perspective of Cons is that this phenomenon is unavoidable. Advertisement industry has been developed over century. First, people started to contribute ads on the newspaper in 17th century. Then they moved to TVs. Now, its internet's turn. Nowdays, most people use internet, so it's natural target for advertisement. Moreover, people say internet ads are not attention payable. However people think that way, because there are too many irrelevant ads to a browser. Just like traditional media, ad is absolutely noticed when they are relevant to you, and this kind of situation always was existed on the past, on the other medium. You can't remember the every tv commercials you see. The reason why you remember relatively many numbers of tv commercials compared to interner ads is that you see through bigger screen and more sounds and effects.

As showned in the graph,

the number of internet ads is increasing greatly

I agree with Cons, but I understand the position of Pros. It is really irritating un-wanted ads or flash pops up while I use internet. However, internet is becomming more and more popular, and most of people use internet. "Ineternet became a new center media of this society" Advertisement has to be done somewhere, and now it is moving for the market which has a largest number of customers and huge potential of growing. As I mentioned above, it is unavoidable phenomenon. Then, what can we do to solve the problems that internet ads have.

Resolution can be found in a various way. One way to solve the problem is "target advertisement", one huge advantage internet has is that it is easy to collect information from users. Therefore it is possible to show internet ads to specific users. For example, it is able to show different ads according to keyword you input on the search enguine. Then annoying and unuseful ads can be reduced to certain amount. However this solution has a problem too. It is "Privacy". Is it right to collect information from browsers like that ? This moral issure has to be solved in order to use this method. Another method is to raise the price of advertisement to certain level. Now internet advertisementising is relatively cheap. That is why all kinds of companies use internet advertisement. On the other hand, cheap and easy method is one of the biggest strength of internet advertisement. Therefore this could limit the growth of internet advertisement industry. So I think best solution is to find a compromising point. Firstly to raise the price of the advertisementising price of advertisement which is contributed at most-seen part of website, such as top part or center part. Secondly, limit the number of ads to a certain level. Of course, there will be much more spot left than tv or newspaper after the limitation, but by limiting the number of ads, imprudent advertisement can be avoided. Whatever method we use, we have to find the way to clear those issues and encourage the advertisement industry on the web.

Entry6_20700347

Marketing through a soccer game

Have you ever seen a logo “SAMSUNG mobile” When you watch a English premier league soccer game on TV? There are many logos in a stadium. If you have a good look when you watch a soccer game, you can find many logos which represent companies.
According to this article, many companies in Korea invest a lot of money on sports marketing. Especially, Samsung, one of the large companies in Korea, has been advertised their brand through a soccer team. The premier league soccer team “Chelsea” is sponsored by Samsung, so players wear the letters Samsung on their shirts. Its effect is very good, so Samsung could increase their call rates in Europe. Also, LG Electronics Inc., the nation`s second-largest electronics maker, is trekking the globe with a sports marketing scheme to raise its brand recognition and image.
In my opinion, companies can have a good crop through sports marketing. In fact, many premier league soccer teams in Europe do sports marketing, and they generate revenues through it. When a popular player scores a goal, many spectators at a football match can see him through a big screen, and the camera magnify him. So the logo which is printed on his T-shirt is seen by a great number of audiences.
Think about this situation. If you like “Manchester”, an English soccer team, you would watch their soccer game, and you can see many logos through a TV screen at the same time. So brands which are seen by you would be familiar with you, and you might buy those brand’s products.
In this way, sports marketing can effect on many people’s consumptions. For example, Samsung could give many Europeans good feeling about their brand. In other words, a logo which is seen by audience can has influence on consumer’s decision process.
Meanwhile, sports marketing is not active in Korea. To tell the truth, there are many people who think that sports and marketing are separate issues. But I don’t think like that. Sports also can be used for advertisement because it is very good to expand firm’s presence. In fact, Korea is not so good to do sports marketing because less people watch a soccer game of K-league, Korean soccer league. So I think Korean companies would better use a sports marketing strategy in abroad, and this marketing could be a global marketing.
In the article, a sports marketing which is proceeding on a soccer game is mentioned mainly. But there are many kinds of sports marketing. For instance, many European soccer teams sell their uniforms and related goods.
Soon 2008 Beijing Olympic will be held. Therefore, I think that this event is very nice chance to do a sports marketing. So it would be effective if many companies endeavor to improve their value through sports marketing strategy.

20700347

Resources : http://www.donga.com/fbin/output?n=200802200146,
http://www.sportsworldi.com/Articles/Sports/Soccer/Article.asp?aid=20080225002802&subctg1=40&subctg2=00,

Entry6_20400495

It’s all about experience!

Because of the fast growing rate of technology, catching the customer’s eyes by technological innovation is becoming more and more difficult. Creating an innovation was one of the methods to differentiate from the competitors. However, due to the advance in the manufacturing, though you innovate your business, it will only take 6 months for your competitor to knock you down. So how can we differentiate from competitors who are able to knock you down so fast? The article is telling us that the answer is providing experience.
The article is using the term experience innovation. This means providing a unique experience which never has been provided to the customers before and satisfying the unmet need. Also the it says that companies intending to be relevant today must learn the art of creating experiences that genuinely engage their customers. To do this, you need to know the four components of experience innovation.

Know where you are in the innovation cycle
There are three areas of innovation: technology, product, and experience.
Among those three, we need to focus on experience. Starbucks is a good example of experience innovation. At the time when America didn’t had a place to enjoy coffee and chill, Starbucks provided a experience which they never had before. You should understand where your mindset lies in this innovation cycle, and know what it takes to participate and perform in the other spaces.

Know your DNA
This means you got to know yourself. What you are good at and what you are not. Do what is natural to you and don’t try to fake it.

Make emotional connections
If you want to make emotional connection with your customer, you need to understand them. Understanding what they need and what they desire, and knowing the difference between these two are crucial.

Design for the complete experience
Though you have a complete idea and know-how to provide an innovative experience, it is all in vain if don’t make it up to the customers. Every aspect of your business must reflect your company’s DNA and what you have learned about the desires of your customer.

These days, customers are tired of selecting and distinguishing products. Instead of looking for companies which most satisfied their needs, they are looking for companies which they can rely on and give their loyalty. Because of this, providing a unique experience is getting more and more critical.

Recently in class, we had been trying to make a traditional Korean dress targeting the foreign tourists visiting Korea. Compared to Japan, which provides various cultural experiences, Korea doesn't have any healthy and enjoyable traditional experience which appeals to the foreigners. So the goal of this project was makeing a traditional dress which can appeal to the foreiners . This project is more than just making appealing dress. It is about selling experience to the foreigners who wants to understand our culture. To do this, we could have applied the four elements for experience innovation. I think during this project, our team has missed a crucial step mentioned at the article, which is making emotional connection. As we went through the project, we focused on the aesthetic parts and how could this dress reflect Korea, not what the foreigner, who is the actual costumer, wants and needs. We haven’t gone through any survey or research related to foreigners. The article is warning that if we disregard our costumer our business will fail to be relevant in a glutting market.

reference : http://www.businessweek.com/innovate/content/apr2008/id20080411_491286.htm

20700443: Entry-6

All About Nestle: Good Food, Good Life

In 1867 Henri Nestle developed a first milk food for infants, and saved the life of a child. It had been known in many places so that people quickly recognized the value of the product. Since that time Nestle Company based its business on human values and principles.
In spite of the fact that business principles of that company are continuously changing according to the world changes, the basic foundation stays the same from the times of the origins, and keeps the same values as fairness, honesty, and concern for people.
The basic business objective of Nestle is to produce and sustain on the market with Company's products, so that it will create value for shareholders, consumers, partners, and employees for a long time period.
Nestle recognizes the trust of their consumers, because without them the company would not exist. Consumers take the main role in business, and only for them all markets are oriented.
Nestle achieves success also due to skilled employees and its management.
It has already passed more than a century since the first Nestle product, for that time the company prospered a lot, they opened up new brands, they have their investors and those who are eager to become business partners with them, they have their own stable customers, who prefer only their products, people recognize them through their brand names, and these names are known all around the world, I even doubt that there can be people who don't know or heard about Nestle and their products.
According to the latest news, Nestle drops Rowntree name from the name of its UK operations, now it will trade under the name Nestle Confectionery(UK).
As Nestle agents say, they changed their name in order to reflect better their status as a major exporter and importer in the company's global confectionery structure. However, the name will stay on all its sugar confectionery brands, such as Fruit Pastilles and Jelly Tots.









References: http://www.nestle.com/Brands/Brands.htm
http://www.brandrepublic.com/Discipline/Marketing/News/801635/NestlE-drops-Rowntree-name/

# 6 Entry / 20500297

The iPhone in Europe: Lost in Translation

Remember Euro Disney case we talked about this week? The more Europe becomes powerful, the more businesses open there. Not only Disney, but also Apple is targetting Europe with its hot item, iPhone. Well, personally, I am a fan of SONY. I prefer to buy all of computer devices from SONY, because the very first thing I care when I buy something, is its design and I love the one of SONY. (simple + neat + professional!) No matter how much it costs, I mostly purchase SONY products because it gives me some of value and satisfation. In other words, I trust SONY.

But the problem is, besides design, there is no reasons I 'must' buy SONY product. Reliability? Warranty? Then why not Samsung? Probably Apple users have this kind of purchasing habit. I saw so many Apple laptop users in the United States, especially around college campus. Not only do they have Apple laptops, but they also have iPods and iPhones. Yes, if a certain company gives speical value to customers, those customers tend to buy other products from that company and I guess Apple is doing a great job with it in the United States. But hey, do you think iPhone is really differentiated and innovated?

This article tells you how Apple has been doing in Europe telephone market. Generally, wireless carriers such as Britain's O2, France's Orange, and Germany's T-Mobile are happy with introduction of iPhone into Europe. These three carriers sold a combined 350,000 iPhone in the fourth quarter last year. However, strategy analytics actually forecasted 500,000 sales for the last year, so it was not enough sales. More than that, the sales has been dropped to 300,000. I wondered why and thought of Euro Disney for a while. The price of iPhone is very high while most phones in Europe are subsidiezed. Do you know what customers say about iPhones? I read some comments about this article and most people said that buying an iPhone is such a waste of time and there's no reason to buy iPhone except for the design. Some people even mentioned that WIndos Mobile Smartphone is way better than iPhone because it is reliable and useful for personal and business use. I think people do not want to pay that much money ($600) for an iPhone whilch does not have 3G or GPS or other advanced features which other phones already have. Why iPod? Why iPhone? Just because of design.

I know that design is very critical in marketing and production and that's why companies in Korea like Anycall can't compete with Apple. However, in order to succeed in Europe, Apple needs to do something and that's what we need to consider as a marketing student. In design part, Apple is already a winner as many customers love their design. Now, what makes them 'different' and 'innovative' should be something more than just design. It's the key of success.

References*

http://www.businessweek.com/magazine/content/08_17/b4081000500950.htm?chan=rss_topStories_ssi_5

* #6 entry by 20500297 =)

Entry 6_20500687

Starbucks’ Retro Logo

What can you draw an image when you think of Starbucks? How much do you get used to the logo of Starbucks? For me, personally, I do not go to Starbucks much often since we don’t have any Starbucks in Pohang. I usually like to go to café such as Starbucks, Coffee bean or Pascucci. These are all foreign coffee brands which have captured Korean market rapidly and created new coffee culture in Korea. However, it seems like there’s not much difference between those brands. Perhaps the logo and the image of café are the only things that distinguish its brands.

Reading the article about Starbucks’ Retro logo where Starbucks is using a special brown logo to evoke the chain’s beginnings and restore some goodwill for the brand, I first thought this is a good idea to market their brand. Since Starbucks is too steady to create revolutionary marketing strategy and it seems that Starbucks doesn’t need any changes, this coffee brand is no more new or poking people’s curiosity but rather losing a mystique about the brand image. However, the reminder of retro logo gives me another interesting viewpoint as I think about Starbucks is more fun and upscale coffee brand.

As the article mentions about nostalgia effort through bring up the retro logo, I partly agreed the effect that might give to consumers. The common logo of Starbucks is seems overused since the brand has established. The retro logo has the twin-tailed mermaid inside the brown medallion as if it knocks the time of the chain’s 1971 beginnings. Old logos can evoke people with a brands’ story and history and knock on people’s emotion being nostalgic. Against much worries about the image of green from the main logo of Starbucks, I think the brown color fits well with the image of coffee and the concept of evoking the old times. In my opinion, this is worth trying since this logo will be temporarily using and it doesn’t seem to produce confusion recognizing Starbucks since its reputation is well set in worldwide. In addition, if the brand has done right and consistently, then this would be no problem. At this point, Starbucks has done fine job to establish good image making. I want to try a cup of coffee at Starbucks with having new retro logo on a cup soon and feel what impression it will give to me.

Reference
http://www.businessweek.com/innovate/content/apr2008/id20080411_065581.htm?chan=innovation_innovation+%2B+design_top+stories

Entry5_20700347

McDonald’s in Korea

The McDonald’s is a well-known chain of fast-food restaurants all over the world, and it symbolizes American culture. In 1988, McDonald’s advanced on Korea. At that time, hamburger was not a usual food to most Koreans. But, McDonald’s which represents U.S.A has been changed appetite of many Korean people, and now, McDonald’s hamburger is familiar food in Korea. Many Korean people like McDonald’s. Then, how could McDonald’s achieve success?
First of all, McDonald’s has given a feeling of intimacy to Korean public through a commercial broadcast. In many commercial, Ronald who is mascot of McDonald’s appears, and that man makes a shape ‘M’ with his fingers. That form which shaped like ‘M’ is similar to people’s smiling face, so it makes people happy.
Second, McDonald’s has been use marketing strategy for children who like toys. For example, one menu of McDonald’s is “Happy meal,” and it includes a hamburger, desserts, a drink. If someone buys a happy meal, he or she can receive toy, and the toy set is changed regularly. Children who saw a commercial on TV, they want to get a toy which is given for free at McDonald’s. Moreover, children who got a toy set from the McDonald’s would like to receive a different toy. So, many children would like to invite the McDonald’s again and again. In fact, there are a lot of people who are gathering toy set which is from happy meal, and they are not always children. To tell the truth, many adults also like to gathering toys.
Third, McDonald’s took an advantage of recent `well-being` trend, which has boosted consumers` awareness of healthy food and drinks. Several years ago, people who hate McDonald’s foods started a movement against McDonald’s because this restaurant use poor quality ingredients, and its foods make a bad effect to people. So McDonald’s was at stake. However, customers begun to invite McDonald’s soon, because McDonald’s started to sell healthy foods. McDonald’s passed their big crisis in this way.
Fourth, McDonald’s develops new menu, so there are various hamburgers, side foods, drinks in the restaurant, and customers could have a selection of different foods. In other words, McDonald’s uses diversification strategy. For example, they developed a menu which is named “Mc morning.”
Fifth, McDonald’s used price strategy. McDonald’s has “Choice menu,” and these menu’s price is only 1,000 won. Therefore, customers can buy foods at low price. Also, soft ice cream is only 300 won. So many people can buy a ice cream easily.
However, McDonald’s had some mistake in marketing, because they were not considering about Korean culture. For example, “McDrive menu” did not catch popularity, because people who are teenagers or twenties are main customer of fast-food restaurant in Korea. Also, cheap ice cream decreased turnover rate, so customers’ waiting time became longer. Therefore, McDonald’s should consider turnover rate when they decide foods’ price, because turnover price is very important thing in fast-food restaurant.
In addition, McDonald’s have some problems to solve. For example, compared with different fast-food restaurant, their store is not so clean, and customer might feel unpleasant. Plus, they need to make an intimate atmosphere, because many people dissatisfied with McDonald’s noisy atmosphere.
McDonald’s has been loved by many Korean for 20 years. In fact, their market share is not the best in Korea, but if they care of marketing, they would grow than present.

20700347

Resources : http://media.daum.net/economic/industry/view.html?cateid=1038&newsid=20080409031003644&cp

Entry5_20400495

The power of emotion

Appeal to the heart not the mind

When you buy something at a store, what do you consider most? Is it the price of the product, quality or the design? The author of this article claims that it is the how the product of the brand moves the heart fo the consumers.
Compared to the signature shoes of Dennis Rodman (one of NBA’ all time trouble maker), author felt more comfortable and relieved to pick Grant Hill’s (a model NBA citizen) signature shoes. It was not the design or the price of the shoe that affected the authors mind. It was the feeling that the shoe created affected the author to pick the shoe.(Though the Rodman's sinature shoes looked more cool.)
McDonald’s was one of the first advertisers to understand this effect of feeling. Decades ago when their competitors were competing on the size of their burger or the thickness of their shakes, McDonald’s was busy trying to build an emotional image of all of the families enjoying the moment around the fast food restaurant .Instead of making their consumers to accept or reject the rational claims being made by competitors, McDonald’s made them hard to argue against and easy to embrace. Though as the time went by the consumers have become more sophisticated, the underlying principle remains true. Also, today, a lot of brands are using this tactics.
Too many advertisers think that the consumers are rational people and try to approach with a rational tactic. Sure, features, benefits, and cost/value equations enter into it, but never do they do all the heavy lifting. This is well applied to the categories such as soft drinks, beers and automobiles which the brands face a high degree of competitive parity. This is because they simply don’t have unique rational claims to make, so they have to win people’s hearts instead of their minds.
We have learned in class that the consumer’s emotion plays a big role in marketing. I also have experience buying products relying on my emotion rather than rationale. To be a good marketer, we need not only to learn about the basic marketing skills but also understand the emotion and the feeling of human being.

Reference:http://www.businessweek.com/smallbiz/content/nov2007/sb2007118_797874.htm?chan=search

20700443: Entry-5

April,8 London: Nikon, photographer brand, is going to sponsor the 9th Fina world swimming championships as an official partner of the event.
During these 5 days competition, over 750 world's best swimmers all around the world will be competing for gold in front of million public. This is the first time when that kind of big event will be held in Manchester at the MEN arena.
As Nikon promoting activities at the event it also decides to make offering services free of charge to professional photographers through the Nikon Service Depot, where they will be able to talk to Nikon's technical support or use any depot's facilities that will be required, or will be helpful.
In addition to all the promotion activities that Nikon offers, there will be two Nikon's professional photographers, Kaiwai Tang and David Ashdown, who will be capturing the best pictures of the day at the pool side, using the legendary FX format Nikon D3.
So, the event will attract many professional photographers from around the globe and it makes Nikon as one of the best camera equipment. This is a smart way to promote themselves, and become famous among those who will participate or just watch that event, as they not only sponsor the event but also offer complementary service...

http://www.brandrepublic.com/Discipline/Marketing/News/800391/Nikon-sponsor-Fina-world-swimming-championships/

Entry 5_20500687

Corporate Social Responsibility,

what do you think?

Many companies usually take an action of voluntary works to reveal their social responsibility to the public especially large companies do with great amount of money. I usually do not have any interests of how companies do their social contributions since there were always corruptions related to their finance and reputations. So I understand their social contribution is something that show of to the public making up their past faults and regain their reputation. People criticize this issue like me, however, this social responsibility is very crucial to understand how companies manage the firm and operate rightly.

This article talks about the Korea’s famous automotive group Hyundai-Kia has adopted a resolution to actively pursue socially responsible management based on trust. They decided to expand program of making social contributions. The program covers many different tasks in three categories, including development of harmonious and complementary relations with labor and suppliers, promotion of environment-friendly management and assistance for the underprivileged. It sounds quite ideal and it will be more ideal if these plans will be successfully achieved in the future. In our marketing textbook, corporate social responsibility is described as the voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders. It emphasizes behavior and perception of companies toward the idea of voluntary works or social contributions. The point that knocked my head is the impact of this action to the companies’ employee. Since the top managers decide to perform social responsibility in a right way, the employees will absorb the thoughts straightly and it will eventually help them to set their mind as socially responsible person. It doesn’t only affect the employees but consumers and investors as well. They have more trust on the firm which does good job on social responsibility and it will create better results for their business at the end.

As a marketing student, this article and the principles of social responsibility alert me to think about the issue more seriously. Doing business appropriately is very demanding in a sense of considering many factors not just profits. In near future, I will remind this time of thorough thinking about the issue and perform well based on the knowledge that I learned.

# 5 Entry: 20500297

What is a Go-Giver?

I mostly look for articles related to either manage or human resource development since I want to work in HR field sooner or later. Since becoming a human-intended manager with warm heart and cool head is my ultimate future-goal, I usually try to read more articles about successful manager's requirements. In that content, today I want to talk about go-givers. You may heard of go-getters, who go and get things done. It's great to go-getters because they are those who take actions! (which is one of critical elements of good managers.) However, Go-giver do things that go-getters don't do. Go-givers are not opposite of go-getters. The opposite of go-givers are go-takers who feel entitled to take, take WITHOUT EVER ADDING VALUE to the relatinoship or the process in any way. Then who are go-givers, really?

Go-givers are introduced in the new national bestseller, 'The Go-Giver: A Little Story About a Powerful Business Idea', written by Bob Burg and John David Mann. Being a go-giver means you add value to others in a ways that helps them significantly while at the same time increases your own sense of joy and improves your bottom line, both in your business and your personal life.

As a business student, why do we need to be like go-givers? Because go-givers are other-fucused instead of me-focused. Managers, sellers, marketers should be customer-focued in order to increase the quality of their business. If you are other-focused, you can make people feel good about you and make them recognize the value you bring to their lives. Remember that adding value to customers' lives is one of aspects of Marketing in Chapter 1? 'In a free enterprise-based society, where no one is forced to buy from you, the only way someone is going to pay for your product or service is if they find value in it. [BEYOND THE PRICE!] Those who give lots of value get the most back. In a relationship, businesspeople can often sense if you really care for them or if you're just faking it.' (quoted)

When I think of myself, I mostly focuse on myself. That's because I don't humble myself as Jesus Christ did as a son of God. Pride keeps people trapped in a prison called 'self', I thought. There are only three people in this prison: "Me. myself, and I." It's a lonely place. When you think of others first, that's the beginning of becoming a great manager of God. You may have heard our president Kim saying '배워서 남주자' and that's what go-givers do! Well, it's not easy to be a go-giver in this competitive society and people teach you to be a go-getter or go-taker to win among these competitions. However, do not forget how Jesus humbled himself and became the best person (and God) in this world. Give, is the basis of showing your love for others, and that's the very first step that you can have a deep relationship with your friends, parents, and future-employeers. :)

This entry is pretty much about my own opinion, so visit http://www.businessweek.com/managing/content/mar2008/ca20080311_967359.htm and read the originial article if you want to. You can get clear explanation about go-givers and their laws.

* Entry 5 by 20500297

Entry4_20400495

How to act smart during the recession

As the world’s economy is at the verge of recession, it is getting harder for the grads to get a job. In this article, the difficulty is shown by a MBA new grad named Casey Quinn. There was time when the B-schoolers had the luxury of choosing from among a half-dozen internships or job offers. As the Class of 2008 prepares to graduate, an uncertain business climate is forcing students to make difficult choices that could have long-term economic consequences. A research on both MBAs and undergrads suggests that graduating into an economic downturn will substantially reduce lifetime earnings.
Quinn, 25-year-old MBA student, who applied for the Morgan Stanley for an internship got refused due to the bad economy. So Quinn went to an alternative plan. He shelved his dreams of working on Wall-street and took an internship at Mattel, which he hopes to get a permanent job after graduation.
This is not limited to the American economy. Korea also is having a hard time treating with the recession which is affecting the whole world. Due to the bad economy in Korea, getting a job for the grad is getting more and more difficult these days. What will be the best choice for the job seekers whose graduation is close? According to the article, Paul Oyer, an associate professor at Stanford, suggests to stay in the school until the economy picks up. This is because selecting a job during the recession can affect the one’s whole life. After the one gets a job during the bad economy, though the economy picks up, it is hard to change one’s job with a better condition. Consequently, staying in school till the economy picks up seems to be a lot of lost in the short run, but in the long run, graduating in a bull market will more than make up for it.
It might be worse for under-graduation school grads to get a job they want compared to the MBA students. Handong have been doing pretty well sending their students to major companies in Korea such as LG or Samsung. Because of the recession, however, recently Handong students are hesitating and feeling fear graduating from the school inspite of the good reputation the school has. Do they have to postpone their graduation until the condition gets better? Korean government is relieving the Koreans saying that the economy will pick up this year but nobody seems to accept the words as it is. I think the best choice for the Handong students is to higher their value until the economic situation gets better. Proceeding to graduate school or doing MBA will be a smart move during this recession.

Reference:http://www.businessweek.com/magazine/content/08_15/b4079059579345.htm?chan=top+news_top+news+index_top+story

20700443: Entry-4

Premier Rugby referees dress in pink for cancer charity

Premiership rugby matches will be held in London during the weekend of 18-20 April. These matches were organized due to Breast Cancer Care that teamed up with Premier Rugby for charity partnership so that all 6 Guinness Premiership rugby matches are turning pink to raise funds and awareness for Breast Cancer. Even the venues will have exclusive ladies' lounges with complimentary drinks and beauty treatments, and also there is a chance to meet with some players afterwards.

There are discounts for all female fans, so that per ticket entry will cost £15, with £4.25 donated directly to Breast Cancer Care.

Actually, Breast Cancer Care has chosen one of the best and well known way to raise its fund. Due to pink color players and fans will be aware and keep in mind that part of their sum has gone to support those who already faced with that problem. In addition, pink color is one of favorite women's color, that can be another part to attract female fans. These matches also offer good complimentary service that please people. And probably for some people that kind of matches with charity purpose is a chance to show to others how they care and support those with breast cancer diagnose.

Resource:
http://www.brandrepublic.com/Discipline/Marketing/News/799372/Premier-Rugby-referees-dress-pink-cancer-charity/

Entry4_20700347

Transformation of Korean Rice cakes

These days, less Korean people enjoy rice cakes than the past. Instead, people love to eat western foods. For example, many people enjoy doughnuts, cakes, coffee, and cheese. People usually eat such foods for a meal or a dessert, and this is a common thing in their life. Until recently, rice cake is a food that is sold for its scrape value in a traditional market. But, since few years ago, rice cakes have been transformed.

According to the article, there are many rice cake cafes in Korea, and the number of such cafes is increasing. Frankly speaking, old people enjoy rice cakes more than young people, but lately, there are many young people who like to eat rice cakes. Then, how can rice cakes become popular foods in Korea?

I think that rice cake cafes could succeed because many CEOs of rice cake cafes have been persevered in their efforts. Especially, I think that these CEOs have been considered marketing for rice cakes with prudence, and they might be good at developing a marketing plan. Because they solved several problems that traditional Korean rice cakes are difficult to be a popular food at the present age for some reasons.

Defining the Mission and/or Vision – Mission of most successful rice cake cafes is to announce rice cake’s variety, and make it more usual food. For this mission, rice cakes could be transformed.

Situation Analysis
– These days, there are a lot of people who look for healthy food. Compared to bread which is made of wheat flour, and butter, rice cake’s main ingredient is rice, so rice cake has lower calories than bread. Also, rice cake is a nutritious food because it includes various healthful materials such as nuts, beans, dates, and so on, so many women who want to lose their weight like it. So rice cake has strengths in this point, and CEOs of rice cake cafes used this merits. Plus, rice cake can be used for various foods. For instance, spaghetti which is made of rice cake is sold at certain rice cake restaurant.

- Most traditional rice cakes have Go-mul, flour used to cover or coat rice cakes, so they are not easy to eat cleanly. Also, traditional rice cake’s size is not small to eat at once. But, the CEOs improved these weaknesses. They made fusion-rice cake that is small and has not Go-mul, so many young people could enjoy it easily. In addition, original rice cake is easy to spoil in several days, so it is difficult to save, but a retortable rice cake is invented, so it is easy to save these days.

- Many old Korean people do not like cakes. So cakes which are made of rice cakes are so good to present to old people. In addition, a price of wheat is becoming higher, so rice cake can not care about it. Moreover, ‘Well-being’ trend, the health and beauty industry to boom is more popular all over the world, so it is opportunity to announce rice cake which has various nutriments despite low calories.


- Recently, the number of doughnut stores, coffee shops, ice-cream stores, and places which sell western foods and still, many people enjoy such foods. Compared with this threat, rice cake café is not so popular yet, so rice cake’s merits should be announced more.


A few years ago, I went to go to a rice cake café named “Jill-see-roo”. That cafes’ condition is so nice and of course, foods’ taste were very delicious, but the price was expensive, and many people did not know about rice cake café because of poor marketing. But, I think that it was market introduction period. Over the years, many rice cake cafes have came into being, and Korean traditional rice cakes have transformed. I think that now is the rapid growth period of rice cake cafes, and soon, competitive turbulence will come, so it is needed for the CEOs to meet customer’s expectation.


Tradition is not the old, but the source. So, we have to think about own Korean tradition, then that tradition could become popular thing whole over the world. If marketing for rice cake is passionate and persuasive, it would be more loved by Korean people than before. I hope more Korean people would recognize the positive points of rice cake and be proud of our good traditional food.

20700347

Resources : http://newsmaker.khan.co.kr/khnm.html?mode=view&code=115&artid=15505,
http://news.chosun.com/site/data/html_dir/2008/02/25/2008022500094.html