This document provides an overview of South Korea as a potential market for fruit juice, including cultural, economic, and competitive factors. It analyzes the fruit juice market and major competitors, and recommends adapting products for the Korean market by adding traditional flavors and sizes. The target segment is identified as single urban professionals aged 30-50 interested in health and sports. Distribution through convenience stores and some supermarkets is proposed, with an initial focus on major cities and a goal of breaking even in the first year.

1. South Korea
대한민국
MKT 480-002
Craig Bowman
Michael Howard
Kerry Yamauchi

2. Cultural Overview
● High level of national pride
● Cultural practices rooted in Confucianism
● High value placed on family
● Tense relations with North Korea
● Increasingly Westernized culture

3. Economic Overview
● Per capita GDP: $33,200
● Higher than average time spent at work
● Largest retailers are e-commerce and
convenience stores
● Extensive transportation infrastructure
● Volatile government policies
● Member of several free trade areas

4. Competitive Analysis
● Fruit juices already widely available
● Consumers want convenience and versatility
● Fresh delivery will be difficult
● Fast growing juice consumption in South
Korea

5. Major Competitors
● Dellos, Minute Maid
○ From frozen concentrate
○ Simple flavors
○ Dellos is local to South Korea
● Powerbar Dr. You
○ Odwalla appears more natural
○ Dr. You is local to South Korea

6. Product Adaptations
● Additional flavors
○ Shikhye (식혜)
○ Melon
○ Persimmon
○ Ginger
● Packaging adaptation
○ Mix of Korean and English
○ Add metric measurements
● Size variety

7. Promotion
● Generate brand awareness
● Emphasize health benefits
● Advertise through Internet
○ 97% Internet penetration rate
○ World leader in Internet connectivity
● Provide free samples in hypermarkets

8. Segmentation
Target segment:
single people ages
30 to 50 with an
interest in sports
● Approximately 4
million consumers
● High growth
potential

9. Marketing Objectives
● Generate brand awareness and stimulate
demand
● Koreans have high uncertainty avoidance
index - get them to try it

10. Distribution Channels
● Not enough geographic area
to produce locally
○ Import from United States
● Distribute through 7-Eleven
and other convenience
stores
○ Use some hypermarkets
● Distribute in all major cities
○ Small area and well-
○ developed infrastructure

11. Resource Requirements
● 15 to 20 employees to manage distribution
● 4.5 million bottles of juice in sales projected
● Plan only to break even in year 1
● Free trade area reduces import cost
● Refrigerated shipping- expensive

12. Recommendations
● Export!
● Evaluate success and adapt strategy for four
years