What color is your shopping bag? 1. Situation analysis(1-5) 2. Communication analysis(1-4) 3. Brand identity concept(1-2) 4. Consumer analysis(1-4) 5. IMC strategy (marketing strategy) (marketing object) (IMC program1-6) 1.Situation analysis (1) total foreign/Jap tourists foreign tourist Foreign tourists spending Rate Japanese tourist 18000 (1 day/1000won) Japanese 140 16000 rate European NorthAmerican 120 14000 100 12000 10000 Korea syndrome 8000 80 60 6000 40 4000 20 2000 0 0 2002 2003 2004 Japanese (source:Korea tourism public office ) *With Korea syndrome rate of Japanese tourists is increasing *41%of foreign tourists are Japanese European NorthAmerican (source:Korea tourism public office ) *Spending amount of Japanese tourists in Korea is the biggest Increase of Japanese tourist our pie related tourism gets bigger 1.Situation analysis (2) Brand preference of DFS Total M/S of DFS 70% 60% 58% Dong hw a 13% 50% etc 7% 40% 30% 18% 20% 17% Lotte 58% Shilla 22% 7% 10% 0% Lotte Airportdfs Shilla etc (Source:2004 Shilla marketing) (Source:2004 Korea tourism office) •Lotte ranked No1.at brand preference •Lotte ranked No1. in M/S •Shilla ranked No3. at brand preference •Shilla ranked No2. in M/S DFS market is two mountain composition ‘Shilla DFS’ vs ‘Lotte DFS But there is a big gap 1.Situation analysis (3) Why does a big gap exist? Shilla DFS Lotte DFS Concept *Korea No1. luxurious hotel duty free shop *The most popularized duty free shop in Korea with friendly image. Strong *Luxurious interior *Korean sentiment *The image of ancient empire *Valet parking service *Big model star marketing *Good at approach ness *High preference Weak *No active marketing strategy for foreign consumer *Low at approach ness *Low awareness *Not luxurious *Crowded atmosphere *Store positioned at 10th floor of the department Lotte could even get big brand awareness with their smart tactics Then, can we solve a problem if we follow star marketing? Duplicated strategy could even threaten our brand identity Is there a no way to reduce a big-gap between Lotte and Shilla? There is a one answer 1.Situation analysis (4) Let’s look at Jeju DFS market situation DFS M/S in Jeju DFS M/S in Seoul Etc 20% Lotte 35% Shilla65% Lotte 55% Shilla25% (Source:2004 Shilla marketing) preoccupied (Source:2004 Shilla marketing) preoccupied Jeju 1988 Shilla DFS open 2000 Lotte DFS open Seoul 1986 Shilla DFS open 1980 Lotte DFS open Lotte DFS is M/S No1 in Seoul Shilla DFS is M/S No1 in Jeju Do you think there are two different consumers Between Jeju and Seoul? 1.Situation analysis (5) Total consumer rate of foreign tourist Age structure of Jeju consumer 40% 40% 38% 35% 34% 35% 30% 30% 25% 25% 22% 20% 20% 14% 15% 10% 5% Age structure of Seoul consumer 10% 4% 16% 15% 30~40 40~50 15% 7% 5% 0% 0% 10~20 20~30 30~40 40~50 10~20 20~30 (Source:2004 Shilla marketing) 20~30s female are the main consumer in Jeju Shilla DFS (Source:2004 Shilla marketing) 20~30s female are the main consumer in Seoul Shilla DFS Same condition of consumer at Seoul and Jeju DFS market why is there Because of a different result consumer’s perception shows between Seoul and Jeju? in their mind! Seoul No1. Lotte and Jeju No1. Shilla Change their perception! What have we done To change their perception ? 2.Communication analysis (1) What have we done so far Korea syndrome studio Valet parking Wide and luxurious interior Discount shop Membership benefit Failed to attract consumer to the roof Service for domestic consumer Failed to distinguish from other DFS Located in corner Similar level of discount These efforts weren’t enough to change their perceptions 2.Communication analysis (2) Interview Interview Interview Japanese Student _24 Japanese Freelancer _31 Japanese House wife _42 “Isn’t Lotte the most famous DFS in Seoul?” “I saw many Lotte advertisements, so I shop there” “ Aren’t all DFS similar? I just go to whatever is nearby” Without distinguished ‘special benefit’, they will keep going to Lotte DFS 2.Communication analysis (3) : case study Let’s take a look about succeeded benefit -1947start as a Malaysia regional airline (10 aircraft, 6000staff) -overcome late started handicap with distinguished strategy 1.Focused on economy class service 2.embody free drink and blanket service 3.traditionally costumed uniform. 1995 ‘year of airline of Asia’ award 2000 Ranked #3 world best airline overcome the handicap of late starter with inimitable strategy 2.Communication analysis (3) : case study i pod overcome the handicap of late starter with inimitable strategy -late starter in mp3 market -technology of making hard disk Approach high up-to-dated mp3 market with distinguished weapon 1.bigger size,bigger memory! 2.not special sound and function but special design and interface 3.selectable color options, and fashionable 2004 i pod(mini) started to sell 2005 Jan. make a 80%of America market succeed with the weapon specially they own,not a thing what people say important 2.Communication analysis (4) : case study Successful benefit has their own color 3.Brand identity concept (1) We should tell our prepared benefits ‘in shilla’s own way’ Image of Ancient Empire Korea sentiment Luxurious What color does Shilla DFS has? 3.Brand identity concept (2) We will approach them in golden tone. 4.Consumer analysis (1) FIT rate TA rate of Shilla DFS/Lotte DFS Shilla Lotte 70% 60% Shilla 70% Lotte 62.60% 55.90% 60.20% of Shilla DFS/Lotte DFS 60% 56.50% 50% 50% 40% 40% 30% 30% 54.10% 50.50% 27% 20% 16% 18% 20% 25% 24% 20% 10% 10% 0% 0% 2002 2003 2004 (Source:2004 Shilla marketing) FIT of Shilla DFS is increasing 2002 2003 2004 (Source:2004 Shilla marketing) Shilla DFS TA is decreasing Lotte is taking Shilla's TA market Therefore,there is necessity to attract TA 4.Consumer analysis (2) Average hour Age structure of possible consumers 40~49 19% 30~39 30% over50 9% of shopper in DFS 1h~2h 20% etc 5% 20~29 42% 1h 75% (Source:2004 Shilla marketing) Sex distinction in Shilla DFS’s consumer female 91% male 9% (Source:2004 Shilla marketing) Our target is 20-30 female who staying DFS about an hour (Source:2004 Shilla marketing) 4.Consumer analysis (3) So what are the most important factors for 20-30 female TA for choosing DFS? Purpose of Japanese tourists dfffffffor traveling Korea 90% 80% etc 2% 83% 79% 70% Expecting factors at vshopping Korea DFS convenience 30% 60% price 38% 50% 40% 28% 30% 26% 20% credit 10% 10% 0% shopping sightseeing food este (source:Korea tourism public office ) 79% of Japanese tourists expect ‘shopping’ when they coming Korea interest 20% (50N Survey 20-30femail) Price, interest,convenience, credit is the important factors for choosing duty free shop. Necessity to attack the 4 elements in Shilla’s distinguished way 4.Consumer analysis (4) Consumer’s profile Consumer’s profile Consumer’s profile Female at 20’s Female 20’s Female 30’s •Osaka university student •freelancer •House wife •Korea syndrome mania •prefer economic shopping tour •prefer comfortable than adventure • crowed shopping area makes her stressed •enjoy family unit travel •Travel in group guide •use WWW.google.co.jp Searching engine •go for shopping as a hobby •exchange travel information at on-line community she belongs •Sensitive in price •early adopter •enjoying new culture shocks •sensitive at sale event •sensitive in price •wanting valuable service •prefer to shop in relaxed atmosphere 5.IMC strategy (marketing strategy) step1 Give consumers Shilla's special benefit step2 Conduct a Shilla's stylish golden campaign step3 Changing consumer’s perception 5.IMC strategy (marketing object) Step3 Internationa l fame Step2 Changing perception step1 Special benefit 5.IMC strategy (IMC program) 1.Advertisement “Listening comprehension project” “guerilla noticing project” 3.Database from Japan “trend watcher project” 2.Promotion “excuse me it's on sale project” “golden stage project” “shiny noisy project” 5.IMC strategy (IMC program1) Advertisement 1 (Listening comprehension project) We can expect association effect by ringing a bell at three related place. We can be positioned in there unconsciousness. 5.IMC strategy (IMC program2) Advertisement 2 (differentiated approach) Event “guerrilla noticing project” Location google.co.jp, the most famous portal site in Japan,MPR,POP Method *conduct a banner ad on google.co.jp,MPR,POP *tone and manner- luxurious gold Expectation * fastest way to notify the campaign of Shilla *raise awareness of Shilla DFS 5.IMC strategy (IMC program3) Promotion 1(differentiated price ) Event “excuse me it's on sale project” Method *Ring a bell everyday PM4-5 as a sign for golden campaign *5%(VIP+5%,silver+5%) more sale addition Expectation *Preoccupy Niche market with golden chance promotion, we can lead their shopping course 5.IMC strategy (IMC program4) Promotion 2 (differentiated interest) Event Method Expectation “golden stage project” *Han bok dressed woman greet in the front door *Offer gold traditional Korea letter paper to consumer who purchase over500$ *We put a gold Korean letter decoration on the stairs. *Active ad for discount shop *Set up a Korea syndrome studio on the roof ex:exhibition of drama famous pieces ex:winter sonata wall, old boy backroom, brotherhood quarters, ex:photo sticker machine which has Korea movie scene background ex:sales of Korean movie DVD ex:set up a multivision playing music video all the time 1.Lead a favorable feeling towards us 2.Cover the weakness of location 3.Induce a customers to buy 4.Make a Shilla as a famous place for Japanese tourist (non-stop service shopping) 5.IMC strategy (IMC program5) Promotion 3 (differentiated convenient) Event “shiny noisy project” Location Myeong dong , dong daemun. Method *Make a shuttle bus with golden tone wrapping. *Runs it for free (wrapping with a image of Shilla dynasty) *Overcome a low approach ness *Lead their interest As a moving advertisement. Expectation Lead their interest by visual symbol Favorable impression on shilla 5.IMC strategy (IMC program6) Database from Japan (differentiated source) Event “trend watcher project” Location Each district in Japan Method Expectation *make a Korean student studying in Japan as a trend watcher *catch a demanded code from young mass *use it as a marketing source of Shilla DFS *gets faithful information from direct generation *easy to catch a very changeable consumer’s needs Thank you Thank you.