2004 Overseas Marketing Comm. Strategy
Post it
Contents
I.
Market analysis
-Where are we?
-Where are we standing?
-Who is coming?
II.
What do we have?
III.
SWOT analysis
IV.
Brand identity concept
V.
Marketing Strategy
-What to do
-How to do
To be the best resort hotel in the world,
What ‘Shilla Cheju’ has to know first…
01_
Where are we?
02_
Where are we standing?
03_
Who is coming?
Where are we?
75
“Jeju Free International City Development’’
–03.07.23. Korea Times
70
% 65
60
Room Occupancy
Rate(%)
1999
2000
2001
“ICC Jeju Links Tourism With Convention”
–03.03.30. Korea Times
2002
year
Source: Dept. of Tourism Promotion
Room Occupancy rate
Room occupancy rate of
total Jeju deluxe hotels is decreasing!

Global security matter

Increase of mid-grade hotel
Increase of interest in tourism business

Concentration of foreign
investors

Potential in convention business
Falling market! However, there is an opportunity.
Where are we standing?
Actual sales of Shilla Cheju
M/S in Jeju
500
400
Lotte Jeju
35%
300
Etc.
33%
sales(100million)
200
100
Jeju Shilla
32%
0
2001
2002
2003
(3/4semester)
Source http://dart.fss.or.kr
Drop in actual sales , compared to 2002
Source http://dart.fss.or.kr
Losing Market Share

Global economic stagnation
 Lotte has won over Shilla’s No.1 position

Global security issues
through aggressive marketing
Drop in sales, Losing M/S !
Who’s coming?
5,000,000
4,500,000
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
Tourism Receipts
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
million won
million won
Number of tourists in Jeju
800,000
600,000
400,000
200,000
0
1999
domestic
2000
foreign
2001
2002
1999
total
2000
domestic
Source: Dept. of Tourism Promotion
2001
foreign
2002
total
Source: Dept. of Tourism Promotion
Decreasing number of visitors and receipts
 Global disaster
- Iraqi War, SARS, bird-flu, etc.
 Global economic stagnation
Depression!
Who’s coming?
80% of East Asians
1%
Visitors by nationalities
3%
7%
6%
13%
Koreans living in
overseas
USA
Japan
China
United Kongdom
50%
18%
China
Hong Kong
Germany
Taiwan
100,000
Others
90,000
80,000
person
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
1999
2000
2001
2002
 Major Increase of Chinese
-Korean syndrome
-China’s becoming a world economic center
Necessity of attracting East Asians
Who’s coming?
Opening of Jeju International Convention Center
Increase of convention related visitors &
Important role of convention organizers
Consideration: where to stay & what to do for rest
Necessity of attracting convention related visitors
To find the opportunity,
we need to observe the situation
01_
What do we have?
Then, What do we have?
concept
Strong
Weak
Shilla Cheju
Lotte Jeju
Jeju’s best luxurious resort hotel
Total tourism
resort complex
• Luxurious: member of ILHA
• Korean sentiment: Korean style
facilities
• Eco- friendly: green card system
• Upper-class: summit conference VIP
guest
•Fun: theme park-like
•Low brand awareness
•Lack of special marketing activity
: depth interview
•Low brand
awareness
facilities
• Modern: recently
built (in 2000)
Necessity of -overcome low brand awareness
-marketing strategy for foreigners
‘
01_ SWOT analysis
Strength
Weakness
•Luxurious service
•Upper-class image
•Eco-friendly image
•Korean sentiment
•Safety
Opportunity
•Low brand awareness
•Lack of marketing activity
Develop well representing
brand identity
to bring up awareness
•Concentration of foreign investors
•Potential in convention business
•Increase of East Asian travelers
•Korean Syndrome
Threat
•global security issues
(wars & diseases)
•Increase of mid-grade hotels
•Global economic stagnation
Develop well representing
Shilla Cheju brand identity
01_ Brand identity concept
To develop Shilla Cheju’s own brand identity,
Q: What do you consider the most ?
Shilla Cheju
Luxurious service
Upper-class
Korean sentiment
Eco-friendly
Safety
Communicate with ONE concept
Different Pictures,
Same Frame.
Shilla Cheju, in that place…
‘Shilla Cheju, in that place…’ strategy
01_
What to do!
-marketing objective
02_
How to do!
-marketing strategy
-target
-positioning
-IMC program
What to do?
Marketing Objective
 Reform Shilla Cheju brand image
- Build up awareness and preference for East Asian
 Sales up
-
For our overseas target
How to do?
Marketing Stratgegy
Strategy_01
Strategy_02

Place a definite
‘Shilla…in that place’ image

Build up brand royalty for
regular customers providing benefit
How to do?
Target Audience
East Asian BoBos,
Convention Organizer
At 30’s~50’s
Professional with
High Salary
Core Target
Female at 30’s
Computer
programmer
-early-adopter,
adventurous
-consider view
Male at 40’s
CEO in a company
-frequent business trip
-free from work (relax, peace)
searching hotels
which meets
their customers’needs
Sub Target
Female at 30’s
 Convention planner
-interested in esthetics &
organic food
-consider facility + service
Specifically WHO?
How to do?
Positioning
International
General
Luxurious
Domestic
Reposition needed
towards overseas market
How to do?
IMC Program
[PR]
“Shilla, in that place… Pam tour”
‘Shilla Cheju, in that place…’
[Promotion]
“Make your wish in Shilla”
“Shilla Gallery”
“Shilla Dynasty”
[Advertisement]
“Shilla, in that place…”
How to do?
IMC Program
Promotion 1
“Make Your Wish in Shilla” event
• To build up the brand royalty
And to reinforce Shilla Cheju’s brand image
- show belief that every wish seems to come true in Shilla Cheju
•
Make a general wish list
Considering customers’ wants
- ex: Plane ticket, free-night coupon, sports car rental
•
Provide chances to visit again
- by winning the wish lottery, make love mark on Shilla
How to do?
IMC Program
Promotion 2
“Shilla Gallery”
• To attract foreigners
and to build up the brand royalty
- exhibit items representing Korean culture and arts
utilizing the hotel space
•
See, Feel, Know
the cultural pride of Shilla Cheju
•
Unlike other exhibitions,
the gallery must be harmonized
within the hotel environment
How to do?
IMC Program
Promotion 3
“Shilla Dynasty” project
•
To make a synergy effect cooperating
with Asian countries nearby
Korea – China - Japan
•
Project promoting with each other
→ PPL
→ Fashion show (eco friendly, natural materials)
→ Fusion food festival
•
Connecting mileage program
with selected resort hotels in 3 countries
How to do?
IMC Program
‘PR’
- Shilla… In that Place Pam-tour
• Invite East Asian press and convention organizers
• Let them experience Shilla’s world best service and facilities
• Expect media coverage and motivate convention
organizers to choose Shilla, build up brand royalty as well
How to do?
IMC Program
‘Advertisement’
•
Concept: “Shilla, in that place…”
•
Story: 3 or more people on the plane with each characteristics
 their final destination is Shilla Cheju
•
Make you believe
Shilla is the place where your basic needs are satisfied
Shilla Cheju, in that place…
THANK YOU!
Post it
2004.1.30