GIMMICK Technology Limited entered in Asia like Japan, Hong Kong, and if CREASE can draw into South Korea with same technology, it is effective to solve population problem since they have experience in entering Asia. 1. PEST (Political) South Korea is one of the countries of seniority; the country is more concern “respect”. Korea is becoming the most desolation place. One out of two senior people live in poverty, while one in three to five suffers from abuse from their children or neighbors.
According to national policy on surveillance Korea Ministry of the Health and Welfare show the relevant Korean older living index that the worst in major countries. According to United Nation statistic, Asia-Pacific of ageing keep increasing. In 2000 to 2025, prediction of ageing population will increase from 8. 7% to 14. 9%. When the Sais’s population increase by 1%, the ageing population is growing at three times the rate of growth. South Korea of government more concern about healthcare; they provided by a compulsory Nation Health Insurance, everyone living in South Korea is eligible to apply.
Also, foreigners living in South Korea can receive same medical benefits and services. South Korea promotes the social insurance System that provides a long term are to elderly. High quality healthcare is available in South Korea. [Figure 2, 3 PEST (Economic): Economic system: Market Economy – private parties (individuals or businesses) own majority of land, factories, and other economic resources. Human Development Index [Figure 5 & 6] The HID shows a broader definition of well-being and provides a composite measure three basic dimensions of human development: health, education and income.
Between 1980 and 201 2 Koreans HOI rise at 1. 6% each year, it gives the country a rank of 12 out of 187 countries. The HID of COED as a region increased from 0. 756 in 1980 to 0. 88 today, placing Korea above the regional average. The HID trends highlight the large gaps in life chances. The figure shows a phenomenon that Korea pay attention on their Health development, with a prosperous and developing health care system. South Korea have advantages in high skill products like CREASE. Population [Figure 7 & 8] Refer to figure 7, from 2008 to 2012, population increase 0. 5% each year. While population aging is a global phenomenon. As the rapid aging of Korea population creates challenges for governments and societies, new opportunities are emerging for businesses serving elderly and their caretakers. Across Asia, large corporations in industries raced to come up with new products and services for elderly, while health-care-related businesses are seeing soaring demand. Among various fields of health care represent fastest-growing sectors. PEST (shoo-cultural) Modernization affected the lives of South Koreans families.
Women who are the primary caregivers of the older, are increasingly enter the population aging. In Korea University survey [Figure 9], increase 1% in parental income, meet more than once a week with their children’s chances will reach 2. 07 times. Therefore, the distance between parents and children is the property inversely proportional growth; poorer parents and children on the farther away. PEST (Technology): Internet South Korea leads the world as the home of the planet’s fastest Internet. The united States down on the top 10 list, finishing at No. 9 with speeds of 8. 6 megabytes per second which is faster than the average. Figure 10] It means the transportation advancements become more efficient. It creates profitable E-business. South Korea has gain advantageous in online shopping. As the Korea Advanced Institute of Science and Technology and Korea Korea Railroad Research Institute have teamed up for a wireless power transfer genealogy that can be used in high capacity transportation systems. [Figure In global era, airports have more to offer in terms of business partnerships. In a challenging marketplace, it can rely on Inches Airport to Offer innovative solutions from the experts. [Figure 12] http://newsroom. Cisco. Com/feature- Above link is going to explain why South Korea has own specialty In Transportation technology. 2. Market Entry mode We will recommend Gimmick to use licensing to enter Korean market. CREASE is a new product of Gimmick in Korea, it is risky to enter in new market with no reputation. Licensing is a marketing and brand extension tool. It moves a brand into new business without making investment. It is more suitable for a new product and new service enters to a new market, like CREASE. Gimmick cannot control the operation of licensor but the quality of their products.
So Gimmick can ensure the quality of Crease. Gimmick only need to grants firm’s right for a specified time when it use licensing to enter Korea. Then, the licensor can sell CREASE to local citizens and gain benefits. Firstly, Gimmick can save the expense to operate their business locally with low cost. Moreover, Gimmick can build the brand image and increase higher awareness. Gimmick no need to spend much effort to create their image. With a good brand image, it can attract more customers to buy CREASE and increase sales volume. Like Calvin Klein which use licensing to sell their products everywhere.
With the strong brand image, their sales volume is very high. In the article, there are about 90 percent of the $160 million of sales are come from licensing with increasing revenue of a company. [Figure 13] To conclude, it is better for Gimmick to use licensing to enter Korean market. 3. Marketing strategy of the product or service Product introduction: Reason Inductive Diaper The whole flow of the system works: Product Strategy (1) Culture Korea culture is similar to Chinese culture. Korean pays attention to their family as well as the society and also the nation.
We can see the following statistic [Figure 14] shows an increasing trend on Korean spending on health expenditure and in the next statistic [Figure 15] shows Korea was the highest health spending country in 2009-2011. Similar culture can lead CREASE easily adapted in Korea and suit Korean preferences. CREASE can convenient the family and medical staffs. More accurate and efficient information are provided. 2) Laws and Regulations Korea government highly supports medical services and products by introduced some Insurance Program and subsidies to the elderliness recently. Figure 1 6] Korea also have the “Korea Consumer Agency” [Figure 1 7], which is protect the customer’s right and safety. Moreover, Korea joined in the World Health Organization (WHO). It proves that the Korea government supports the health and medical service. (3) Counterfeit Goods and Black Markets Counterfeit goods will damage the brand image and company’s reputation will tarnished. We would like to prevent product from illegal channel or revert illegal and faulty product. Korea has intellectual property to prevent counterfeit goods. [Figure 18] (4) National Image “High-tech technology” is a national image of Korea.
It is one of the high- technology export countries recently – the seventh-largest export county and the tenth-largest import country. [Figure 1 9] CREASE is one of newest technology on the diapers. It is fit to Koreans perception of product innovative, quality and reliability. As well as CREASE already had its reputation in Hong Kong and other existing market, like Japan. It is experienced to gain a brand loyalty in new market. Place (Distribution strategy) (1) E-Business In the distribution channel, we suggest GIMMICK to use e-business to test customer’s preference.
Subscription will be provided to customer in their homepage and they can enjoy online shopping when they can buy it in anywhere at any time. They can spread out their preferences about Crease to others through internet. Just like Dell, a well-known computer company, it provides online services to customer in order to increase responsiveness. (2) Wholesalers and Licensing When Crease more mature and well-known in Korea, GIMMICK can build up a arouses in Seoul to keep safety stock and capture more customer in a more efficient supply chain channel.
It can also increase their responsiveness that decrease lead time. GIMMICK can use licensing to enter market which will not eliminate the control of the company, will only allow the retailers control the quality. Just like Apple, it can increase its profit by several retailer shops in different. Using licensing to prevent eliminate its company’s control right. Promotion (1) Bending products and promotion strategies GIMMICK can join different exhibition and fair which organize by Korean organization in order to promote their products to target customers.