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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