Yoon choi corporation

YOON-CHOI CORPORATION

Lena LieuvinJean-Philippe Nitkowski

CRISIS AS AN OPPORTUNITY

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

OVERVIEW

Names and positions :

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

Phyllis Stevens : Senior Marketing Director, Pembroke Marketing Management Associates

OVERVIEWDialogue

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

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Exhibit 5 : Summary of Stevens’ report regarding initial expansion strategies

Change the distribution Change the products Change the pricing Change the promotion

EXISTING SITUATION

COMMUNICATION

Strengths Weaknesses

• Low-cost products

• High quality

• Fear of the competition

• No marketing campaign

EXISTING SITUATION

INTERCULTURAL DIFFERENCES

Strengths Weaknesses

• Adaptation capacity of Korean people

• Kibun

• Extremely different culture

• Difficulties of communication

EXISTING SITUATION

INDIVIDUALISM

Strengths Weaknesses

• Collectivist culture• High power of distance :

Mr Jun is more likely to follow Mrs Stevens’ advices

• Don’t really speak their minds

EXISTING SITUATION

UNCERTAINTY AVOIDANCE

Strengths Weaknesses

• Cautious approach of the market

• Risk of difficulties implementing a mass distribution strategy

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

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 ?

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

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

OPTIONS

Option 3 : Change the distribution process

Pros Cons• Possibility to increase

the sales volume• Expensive• Doesn’t change the

brand image • Doesn’t improve the

visibility

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

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

OUR RECOMMENDATION

OPTION 4 : Follow Mrs Stevens’ advices and change the brand name and the

distribution process

THANK YOU FOR

YOUR ATTENTIO

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