Japanese-Marketing StrategyJapanese-Marketing Strategy

for Shilla Duty Free Shopfor Shilla Duty Free Shop

1. Analysis

2. Keys for Break-through

3. IMC Strategy

Contents Contents

Let Them Discover !

Analysis Market

SituationConsumer

Competitors& Shilla

Percentage of Japanese visitors

40% (2004)

Total

Japan

Japan

TotalAverage

Growth rate of visitorsAverage 30.6%Japanese 38.2%

2003 2004 2003 2004

Do you go shopping in Korea?(Japanese Visitors)

‘Yes’

Where do you go shopping?(Japanese Visitors)

Duty free shop

89.3% of Japanese go shopping in Korea

40% of Japanese visitorsgo shopping

in duty free shops (excluding Airport duty free shops)

They’re a lot!A lot more

will be coming!

4 out of 10 visit

Duty free shops!

Almost everyone

goes shopping!

* Chart I-1 *Chart I-2

Analysis Market

SituationConsumer

Competitors& Shilla

RelaxationSightseeing

BudgetMeet new people

Pursuit familiar cultureLearn

Tour many placeShort term/FrequentVisit one place again

Deluxe HotelLuxury restaurant

GroupTranquil placeSelf-scheduling

Gift ShoppingBrand product

Exciting TravelEntertainment

QualityAcquaintance

Pursuit new cultureEnjoyStay

Long term/SeldomVisit new places

Don’t care class of hotelPopular restaurant

PersonalFamous placeTravel agency

Shopping for oneselfLocal product

Japanese traveling style:Japanese prefer traveling personally

with acquaintance and pursue new cultural experiences.

Free Individual Traveler

Semi-Package (Air-Tel)

44.6%27.6%27.8%

Package tour

Our target audience who is strongly

influenced by IMC strategy

72.2%

* Chart I-3

* Chart I-4

Interested in Korean Beauty Therapy,And Korean Pop-music

Analysis Market

SituationConsumer

Competitors& Shilla

Core Target Sub Target

30~40 years old Female 20~30 years old Female

4 days 3 days

House Wife College Student / Office Job

Husband (who likes Korean Food) Working associate

Gucci Bag, Korean Food (Kimchi) Clothes, Cosmetics

Relatively Generous Economic

F I T (Free Individual Traveler) Semi Package (Air-Tel Package)

Fan of Yon-sama

Age

Period ofStay (av.=3.1)

Occupation

TravelCompanionShopping

ItemsStyle of

Spending

Travel Type

Etc.

Targ

et P

rofi

le

Stereotype

Analysis Market

SituationConsumer

Competitors& Shilla

Targ

et P

rofi

le

CoreTarget

30~40 years old Female

= Oba-san (old lady) + Alien

So far, economic ‘Thrift’ and‘Obedience’ to their husbands was considered as a virtue.However,recently, they have become more self-conscious.They’re willing to spend their money for themselves.They’ve just started to rebel. NOW, they do what they want to do!

‘Obarian’?

They are spontaneous!

Analysis Market

SituationConsumer

Competitors& Shilla

IMCBudget

Number of outlets

Shilla Lotte

ServiceQuality

Numberof items

Brand Recognition

Undoubtedly, Lotte is No 1. Duty Free Shop in Korea

Lotte & Lotte World31.6% Shilla

16.3%Airport duty free (abroad)

Airport duty free (Korea)

Shilla duty free

Lotte duty free

Lotte world duty free

Walkerhil duty free

Dong Hwa duty free

19%

15.3%

16.3%

20.4%

11.2%

9.9%

7.8%

CustomerPreference

It’sLotteVs.

Shilla!

* Chart II-1 * Chart III-1

Analysis Market

SituationConsumer

Competitors& Shilla

However, Shilla ≠ Lotte

Lotte exceeds Shillain most of the categories

‘Exceeding Lotte’ is unrealistic and

meaningless

Low budgetLimited Outlet(There’s only

1 outlet in Seoul)

Simply enlarging market share is not Shilla’s objective

Create new market demand by repositioning Shilla!

Our objective is not sales No. 1 Our objective is Maximum Profit!

Analysis +α ‘Yon-sama factor’

“Let’s meet at ‘Lotte’ ,We must.”-head copy of Lotte

Yong June, Bae

‘Invincible’ Yon-sama

Typical use of Korean-star marketing

Massive star-power among Japanese

However, already occupied by Lotte

Is there another Korean wave star we can use? Yes, there’re several of them , but…

They’re just No.2 There’s no one else like ‘Yon-sama’

Limitedbudget

‘Me-too’strategy

No. 2 Strategy

Doubtfuleffect

Then, dispose ‘Korean-star marketing’There’ll be another way of using Korean Wave

Analysis +α ‘Korean Wave(韓流 )’

Winter’s sonata( 冬のソナタ ) ‘Yon-sama’ syndrome

AnotherKorean StarTV Drama

Fashion Food

Pop musicSports

Interest onWhole

Korean Culture

Entertainment Culture

Korean StarMarketing

Korean CultureMarketing

Post- Korean Wave

is important issue

Korean wave was initiated byfew spontaneous fans of

Korean pop-culture,but it has become a

cultural phenomenon

Now Japanese peoplehave a favorable attitude towards

overall Korean culture. From now on, the issue is

how can we continue and develop

this phenomenon.

What are our keys

for

Break-through?

Key No.1 Service

3.4

3.6

3.8

4

4.2

4.4

Visitor’s Customer Satisfaction in Korea (Shopping, Service)

Relatively High satisfactory rate on service: Russia, USA, Germany, England, Canada

Japan shows lowest satisfaction on Shopping Service in Korea

Japanese customers have high standardsabout service!Service

Price & Product

Times of visit

AGE 30~40And above

AGE 20~30

The older they are,The more chance of them re-visiting Korea,

The Quality of Service is important!

* Chart I-5

* Chart III-2

Key No.2 Post-Korean Wave Repositioning Shilla!

Korean Wave Star Marketing

Shilla=

Korean Culture

Shilla

Lotte

Yon-sama (Star-marketing)

No.1

CrowdedPopular

Korean Sentiment

Comfortable

No.1 Service

Biggest

Pop-culture

Tranquil

High-quality

Luxury, Noble

Key No.3 Luxury/Mystical

Marketing

Low Accessibility is Another weak-point of ShillaShilla is located in

Jang Choong-Dong Not easy to find

Lotte is located in Myung-Dong

Very convenient

55.2% of Japanese Visits Myung-dong

But what if we reverse the thinking?

“Shilla is not easy to find(not as easy as Lotte)

Because it’s not for everyone

It’s like a Hidden Treasure once you find it,

You are going to think it’s worth a visit…”

Shilla supports \10,000 for Taxi fee. Did you know that?

Let them move!Let them discover!

Use their spontaneousness!8.2% of Japanese

Visits Nam-san

Curiosity

?

Service

Luxury/Mystical

MarketingKorean Wave

Entertainment Culture

High Quality

Curiosity

Obarian

3 Key Points

“ Find Your Treasure ” Luxury

Precious

Valuable

Mysterious

Adventure

Treasure Island

Shilla Kingdom

Spontaneous Yours

Only

Exclusive

Discover

Your OwnAction

Jewel

Not ‘His’Or ‘Hers’

Rela

ted

Imag

es

Hidden

Main Concept

IMC Strategy

Shiranakatta!Shilla

Step 1

MarketingObjective

Meaning

Low brand awareness is a weak point of Shilla No.1 Priority Raise brand awareness!

Shiranakatta( しらなかつた ) – “didn’t know”+ ‘ ! ’ mark

Targets Lotte customers and other potential customers

Intent Make them think “I missed something” “What if I knew Shilla?”

“There’s a lot of benefit that I didn’t know”Shiranakatta! Shilla.

IMC strategy Ad Campaign Step 1. ‘ Shiranakatta! Shilla. ’

Find your treasure

Expected Effect

The words ‘Shiranakatta’ and ‘Shilla’ rhymes Easy to remember, brand recognition effect

How to do A lot of information is actually not well known.

Describe detailed “information” and “facts” about Shilla.History, Location, Brand, Service,

Renewal, Atmosphere, Membership etc.

It’s such

a pity!

You didn’t know

?Shiranakatta! Shilla.

IMC strategy Ad Campaign Step 1. ‘ Shiranakatta! Shilla. ’

Find your treasure

Mo ich do…Shilla

Step 2

11stst 34.2%34.2%22ndnd

16.7%16.7%33rdrd

10.8%10.8%

Above4Above4thth 38.3%38.3%

65.8%68.7%

‘‘No’ No’ 4.7%4.7%

‘‘Don’t Don’t know’ know’ 26.6%26.6%

‘‘Yes’ Yes’ 68.7%68.7%

Do you want to visit Korea again?

How many times have you visited Korea?

They want to visit Korea again!

They actually visit Korea again!

Long – term marketing is important.Make them visit Shilla again!

Step 2. もう１度 (Mo ichi do)… Shilla = One more time… Shilla

Mo ichi do ( もう 1 度 )…

Shilla.

IMC strategy Ad Campaign Step 2. ‘One more time.. Shilla. ’

Find your treasure

* Chart I-6 * Chart I-7

Expected Effect

Repositioning Shilla as a Duty free shop with High-Quality Service

How to do

Make them think “Why do they visit Shilla again?”“What’s special about Shilla?”

MarketingObjective

Intent

Customers will recognize Shilla as a prestigious duty free shop brand loyalty will increase

Story-telling advertisement“I’ve been to Shilla and I experienced an

unforgettable serviceI want to go there again…”

- by Japanese narrator in her 40’s

Mo ichi do ( もう 1 度 )…

Shilla.

IMC strategy Ad Campaign Step 2. ‘One more time.. Shilla. ’

Find your treasure

Shilla,

Whenever I visit Korea…

Step 3

MarketingObjective

Intent

Expected Effect

How to do

Shilla as a ‘must-visit’ place

Make them feel “I really have to go there”

Successful long-term relationship with customersEmphasizing Shilla’s superior membership system

“According to…” type advertisement. reputation-based advertisement.

Narrator (a Japanese husband) wonders “Why my wife always wants to visit Korea?”

and “why my wife always visits Shilla whenever she goes to Korea?

So one day I asked her, according to her…”

Shilla,Whenever I visit Korea…

IMC strategy Ad Campaign Step 3. ‘Shilla, whenever I visit Korea… ’

Find your treasure

What is your source of traveling information?

InternetTravel agency

By recommendation Magazine/travel book/booklet

Magazine/Newspaper AdTV/Radio AdTV program

Newspaper article

37.1%18.8%17.7%14.7%

8.60.90.40.3

Internet is the No. 1 source of information

37.1%

Why is it important?

As ‘FIT’ type of travel is getting more popular, the internet isgetting more influencial

‘Korea duty free’‘ 韓国免税店’

‘ 韓国の免税店’

Nothing comes up about Shilla!

Let’s search!Search Word

IMC strategy Internet Marketing

Find your treasure

* Chart I-8

IMC strategy Internet Marketing

Internet Event

Banner Ad

Contents

AccessibilityPreoccupyinternet

search engines result list No.1

of ‘‘ 韓国の免税店’

Yahoo JapanLycos Japan

InfoseekGoo

FresheyeExcite

Increase of

Visitors!

Random-timeE-coupon

Various kind ofGuerillacoupon

VisitAgain

& Again!

Famoustravel-

informationweb sites

Reinforce more detailed information and

easy accessibility

Find your treasure

IMC strategy Customer Service

Membership

X-mas / New year Card

Guide Book

Send X-mas cardannuallyto Japan

(For VIPs, hand-written by Shilla staffs )

Thoughtful service

Korean culture map (Theaters, museums, etc.)

Korea culture news page(Performance schedules)

20-30sMore

discount

30-40sMore

mileage,service

D-card S-card

SpecialMembership

Service

Useful Information

Recruit Japanese staff Comfortable, familiar environment

Find your treasure

IMC strategy

In-flight commercial

Sponsorship

A Japanese husband complains,“Why my wife always wants to

visit Korea?”And

“why my wife always visits Shilla whenever she goes to

Korea?” according to her(…)”

Story-typeIn-flight Ad

Enjoy KoreanCulture!

Korean traditional performanceKorean pop-music concert

MusicalPlay

Classical music concertDiscount or Sponsor

Guerlainspa

(in Shilla hotel)

Discount or Sponsor

Relax&

Well-being

Etc.

Find your treasure

I Discovered…

Find your treasure

Find your treasure

Q & A

Find your treasure