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A. Executive Summary
PRIMADONNA is a strong and competitive shoe brand that always carries the season’s
latest trends and must-haves. This is the unique identity that differentiates PD from competition.
With an intense commitment to carry the season’s latest trends and must haves, it now has grown
into a retail force of 42 fashionably dynamic outlets. This amazing leap can only be attributed to
Primadonna’s vision to cater to women’s various lifestyle needs.
Given this profile of the local brand indicates a financial stability and strong competitive
characteristic of the firm. Seeing the potential of the brand, it can make a breakthrough by
exporting its products to equally or even more profitable country. Known for being one of the
fashionable countries and being developed country, South Korea is the best choice. The country
is a challenging one to penetrate because of its culture, and complex customs regulations. But
still, its apparel and footwear industry has positive growth over the years and clothing is one of
the fast growing imports in the country.
Direct exporting is recommended to be done where Primadonna can carefully formulate
strategies in entering an international market.The marketing mix formulated is a combination of
globalization and localization. The brand will be communicated through the country’s official
language which is Hangul, given that South Korea is an ethnocentric country and very few of
them is fluent in English.
Since the brand will be on introductory stage in South Korea, market penetration will be
the major goal of the brand and if this will be achieved, other objectives will follow. The Action
program created focuses on attaining this goal.
Primadonna will surely bring the Koreans what they give to the Filipinas; a different shoe
to wear for a different you.
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B. Company Profile
Primadonna started with 3 stores in 2007. With an intense commitment to carry the
season’s latest trends and must haves, it now has grown into a retail force of 42 fashionably
dynamic outlets. This amazing leap can only be attributed to Primadonna’s vision to cater to
women’s various lifestyle needs. PRIMADONNA is a strong and competitive shoe brand that
always carries the season’s latest trends and must-haves. This is the unique identity that
differentiates PD from competition.
C. Cultural Analysis
I. History
Since its founding however, the area of present-day South Korea was invaded several times
by neighboring areas and thus, its early history was dominated by China and Japan. In 1910,
after weakening Chinese power over the area, Japan began colonial rule over the Korea which
lasted 35 years.
At the end of World War II in 1945, Japan surrendered to the Allies which resulted in the end
of the country's control over Korea. At that time, Korea was divided into North and South Korea
at the 38th parallel and the Soviet Union and the United States began to influence the areas. On
August 15, 1948, the Republic of Korea (South Korea) was officially founded and on September
9, 1948 the Democratic People's Republic of Korea (North Korea) was established.
Two years later on June 25, 1950, North Korea invaded South Korea and began the Korean
War. Shortly after its beginning, a coalition led by the U.S. and the United Nations worked to end
the war and armistice negotiations began in 1951. In that same year, the Chinese entered the
conflict in support of North Korea. Peace negotiations ended on July 27, 1953 at Panmunjom and
formed the Demilitarized Zone. According to the U.S. Department of State, an Armistice
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Agreement was then signed by the Korean People's Army, the Chinese People's Volunteers and
the United Nations Command which was led by the U.S. South Korea never signed the
agreement and to this day a peace treaty between North and South Korea has never officially
been signed.
Since the Korean War, South Korea experienced a period of domestic instability which
resulted in a change it is government leadership. In the 1970s, Major General Park Chung-hee
took control after a military coup and during his time in power, the country experienced
economic growth and development but there were few political freedoms. In 1979, Park was
assassinated and domestic instability continued through the 1980s.
In 1987, Rohm Tae-woo became president and he was in office until 1992, at which time
Kim Young-sam took power. Since the early 1990s, the country became more stable politically
and has grown socially and economically.
II. Geographical Setting
A. Location
South Korea is located in East Asia, on the southern half of the Korean Peninsula jutting out
from the far east of the Asian land mass. The only country with a land border to South Korea is
North Korea, lying to the north with 238 km of border running along the DMZ. South Korea is
mostly surrounded by water and has 2,413 km of coast line along three seas. To the west is the
Yellow Sea, to the south is the East China Sea, and to the east is Ulleung-do and Liancourt Rocks
(Dokdo) in the Sea of Japan (also called East Sea). Geographically, South Korea's land mass is
approximately 100,032 square kilometers. 290 square kilometers of South Korea are occupied by
water. The approximate coordinates are 37° North, 127° 30 East.
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B. Climate
Part of the East Asian Monsoon region, South Korea has a temperate climate with four
distinct seasons. The movement of air masses from the Asian continent exerts greater influence
on South Korea's weather than does air movement from the Pacific Ocean. Winters are usually
long, cold, and dry, whereas summers are short, hot, and humid. Spring and autumn are pleasant
but short in duration. Seoul's mean temperature in January is −5 to −2.5 °C (23.0 to 27.5 °F); in
July the mean temperature is about 22.5 to 25 °C (72.5 to 77.0 °F). Because of its southern and
seagirt location, Jeju Island has warmer and milder weather than other parts of South Korea.
Mean temperatures on Jeju range from 2.5 °C (36.5 °F) in January to 25 °C (77 °F) in July.
The country generally has sufficient rainfall to sustain its agriculture. Rarely does less than
750 millimeters (29.5 in) of rain fall in any given year; for the most part, rainfall is over 1,000
millimeters (39.4 in). Amounts of precipitation, however, can vary from year to year. Serious
droughts occur about once every eight years, especially in the rice-producing southwestern part
of the country. About two-thirds of the annual precipitation occurs between June and September.
South Korea is less vulnerable to typhoons than Japan, Taiwan, the east coast of China, or
the Philippines. From one to three typhoons can be expected per year. Typhoons usually pass
over South Korea in late summer, especially in August, and bring torrential rains. Flooding
occasionally causes considerable damage, as do landslides, given the country's generally
mountainous terrain.
In September 1984, record floods caused the deaths of 190 people and left 200,000 homeless.
This disaster prompted the North Korean government to make an unprecedented offer of
humanitarian aid in the form of rice, medicine, clothes, and building materials. South Korea
accepted these items and distributed them to flood victims.
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Month Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Rainfall DRY RAINY / SNOWY
Temperature COLD HOT COOL
Season Cold Dry Hot Dry Rainy
C. Topography
Early European visitors to Korea remarked that the land resembled "a sea in a heavy gale"
because of the large number of successive mountain ranges that crisscross the peninsula. The
tallest mountains are in North Korea. The tallest mountain in South Korea is Mount Halla (1,950
meters), which is the cone of a volcanic formation constituting Cheju Island. There are three
major mountain ranges within South Korea: the T'aebaek, and Sobaek ranges, and the Chiri
Massif.
Unlike Japan or the northern provinces of China, the Korean Peninsula is geologically stable.
There are no active volcanoes and there have been no strong earthquakes. Historical records,
however, describe volcanic activity on Mount Halla during the Koryo Dynasty (918-1392 A.D.).
Over the centuries, Korea's inhabitants have cut down most of the ancient Korean forests,
with the exception of a few remote, mountainous areas. The disappearance of the forests has
been a major cause of soil erosion and flooding. Because of successful reforestation programs
and the declining use of firewood as a source of energy since the 1960s, most of South Korea's
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hills in the 1980s were amply covered with foliage. South Korea has no extensive plains; its
lowlands are the product of mountain erosion. Approximately 30 percent of the area of South
Korea consists of lowlands, with the rest consisting of uplands and mountains. The great
majority of the lowland area lies along the coasts, particularly the west coast, and along the
major rivers. The most important lowlands are the Han River plain around Seoul, the Pyongt'aek
coastal plain southwest of Seoul, the Kum River basin, the Naktong River basin, and the
Yongsan and the Honam plains in the southwest. A narrow littoral plain extends along the east
coast.
The Nantong is South Korea's longest river (521 kilometers). The Han River, which flows
through Seoul, is 514 kilometers long, and the Kum River is 401 kilometers long. Other major
rivers include the Imjin, which flows through both North Korea and South Korea and forms an
estuary with the Han River; the Pukhan, a tributary of the Han that also flows out of North
Korea; and the Somjin. The major rivers flow north to south or east to west and empty into the
Yellow Sea or the Korea Strait. They tend to be broad and shallow and to have wide seasonal
variations in water flow.
News that North Korea was constructing a huge multipurpose dam at the base of Mount
Kumgang (1,638 meters) north of the DMZ caused considerable consternation in South Korea
during the mid1980s. South Korean authorities feared that once completed a sudden release of
the dam's waters into the Pukhan River during north-south hostilities could flood Seoul and
paralyze the capital region. During 1987 the Kumgang-san Dam was a major issue that Seoul
sought to raise in talks with P'yongyang. Though Seoul completed a "Peace Dam" on the Pukhan
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River to counteract the potential threat of P'yongyang's dam project before the 1988 Olympics,
the North Korean project apparently still was in its initial stages of construction in 1990.
III. Political System
A. Political Structure
The Government of South Korea is divided into executive, judicial, and legislative branches.
The executive and judicial branches operate primarily at the national level, although various
ministries in the executive branch also carry out local functions. Local governments are semi-
autonomous, and contain executive and legislative bodies of their own. The judicial branch
operates at both the national and local levels. The South Korean government's structure is
determined by the Constitution of the Republic of Korea. This document has been revised
several times since its first promulgation in 1948. However, it has retained many broad
characteristics; with the exception of the short-lived Second Republic of South Korea, the
country has always had a presidential system with a relatively independent chief executive.
As with most stable three-branch systems, a careful system of checks and balances is in
place. For instance, the judges of the Constitutional Court are partially appointed by the
executive, and partially by the legislature. Likewise, when a resolution of impeachment is passed
by the legislature, it is sent to the judiciary for a final decision.
Politics of the Republic of Korea takes place in the framework of
a presidential representative democratic republic, whereby the President is the head of state, and
of a multi-party system. Executive power is exercised by the government. Legislative power is
vested in both the government and the National Assembly. The Judiciary is independent of the
executive and the legislature and comprises supreme, appellate courts and a Constitutional Court.
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Since 1948, the constitution has undergone five major revisions, each signifying a new republic.
The current Sixth Republic began with the last major constitutional revision in 1987.
B. Political Parties
This article lists political parties in South Korea. South Korea has a multi-party system in
which political parties have a chance of gaining power alone.
Current parties:
As of March 2014, there are four political parties present in the 19th National Assembly:
Party
Number of
Seats in
the
National
Assembly
Leader Position Comments
Saenuri Party (NFP -
New Frontier Party)
새누리당 / 새누리黨
Saenuridang
156
Kim
Moo-
sung
Right-
wing toCentre-
right
See: Conservatism in South
Korea
Conservative; formerly
called the Grand National
Party.
New Politics Alliance
for Democracy (NPAD)
새정치민주연합/
130
Ahn
Cheol-
soo
Kim
Centre toCentre-
right
See: Liberalism in South
Korea
Liberal; merged from
the Democratic Party and
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새政治民主聯合
Saejeongchi Minju
Yeonhap
Han-gill the minor New Political
Vision Party.
Unified Progressive
Party (UPP)
통합진보당 /
統合進步黨
Tonghap Jinbodang
6
Lee
Jung-
hee
Left-wing
Progressive; merged from
the Party, People’s,
and a faction of the New
Progressive Party.
Justice Party
정의당 / 正義黨
Jeongeuidang
5
Cheon
Ho-sun
Centre-left
Progressive; splintered
from the Unified
Progressive Party.
1. All data are current as of September 1, 2013.
2. As of March 25, 2013 the total number of representatives is 300.
3. As of March 25, 2013 ten representatives are independents.
4. As of March 25, 2013 three representatives have lost their positions due to various reasons
and will be reelected through the next by-election scheduled on April 24, 2013.
C. Stability of Government
South Korea has a stable government with a sustainable democracy and a healthy
infrastructure. President Park Gun-shy has promised to bring “economic democratization” to
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South Korea through expansion of the welfare system as well as addressing vested economic
interests.
The labor market is somewhat inflexible, which can be burdensome for private companies.
Unemployment remains low however, at 3.1%. The relationship between North Korea and South
Korea is strained and is a source of on-going political and social tension. After flaring in the
Winter and spring of 2013 the situation has since normalized.
South Korea ranked joint first in terms of political stability among 30 emerging countries,
despite security concerns related to North Korea and economic risks related to the rapidly
weakening Japanese yen. According to a report Sunday by the Eurasia Group, a New York-based
research company, South Korea scored 74 out of 100 points in its Global Political Risk Index,
putting it even with Poland. The index measures political stability based on various factors
including social and economic status.
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D. Special Taxes
The Korean tax system is comprised of both national and local taxes, the latter of which are
imposed by provinces, countries and municipalities. Examples of local taxes include property
tax, automobile tax, license tax and registration tax. National taxes, on the other hand, are
currently made up of internet tax, custom duties, and education tax, international tax, which
consists of direct tax and indirect tax, is thus the most significant type of tax payable in Korea.
Meanwhile, the 1990 tax reform was undertaken to enhance the equity of the tax burden, to
strengthen the competitiveness of the manufacturing sector and to finance education and local
governments.
Special Tax for Rural Development (STRD) which is a special tax is to support the rural
community and the agricultural and fisheries industry. As a result of the UR negotiations, the
farming industry in Korea is subject to market opening. Due to the low productivity of the
Korean agricultural industry, the government enacted the Special Tax for Rural Development
in July 1994 in order to raise funds for various rural development programs.
E. Role of Local Government
The Constitution of the Republic of Korea states in Article 117 that "local governments deal
with matters pertaining to the welfare of local residents, manage properties and may, within the
limit of laws, enact provisions relating to local autonomy regulations."
Local government heads manage and supervise administrative affairs except as otherwise
provided by law. The local executive functions include those delegated by the central
government such as the management of public properties and facilities and assessment and
collection of local taxes and fees for various services.
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Higher-level local governments basically serve as intermediaries between the central and
lower-level local governments.
Lower-level local governments deliver services to the residents through an administrative
district (up, my eon, and dong) system. Each lower-level local government has several districts
which serve as field offices for handling the needs of their residents. Up, my eon, and dong
offices are engaged mainly in routine administrative and social service functions.
IV. Legal System
A. Organization of the judiciary system
In Korea, judicial power is vested in the courts, which the constitution established as an
independent branch of the government. The court system functions on three levels: the Supreme
Court, appellate courts (High Courts), and district courts (including branch courts). Besides the
three-tier court system, the judiciary also operates a family court, an administrative court and a
patent court. The courts hand down decisions in litigations involving civil, criminal,
administrative, election and other matters.
There are three levels of courts. The District Court, which included a specialized Family
court, is the court of original jurisdiction – akin to trial court. Next up is the High Court, which is
the intermediate appellate court. High court is the court where an appeal from a District Court
case is heard. Finally, there is the Supreme Court, the highest court in Korea.
District Courts and High Courts are divided into geographic districts. The Chief Justice of the
Supreme Court is appointed by the President with the consent of the National Assembly, and this
term lasts for 6 years. The remaining Supreme Court Justices are appointed by the President
upon the recommendation of the Chief Justice with the consent of the National Assembly. All
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other judges are appointed by the Chief Justice with the consent of the Conference of Supreme
Court Justices. This means the judges last for 10 years. Both the Supreme Court Justices and
other judges may be reappointed.
B. Code, common, socialist, or Islamic-country?
The Constitution of the Republic of Korea calls for a liberal democratic political system. Its
principles are based on the sovereignty of the people, with all the authority of state emanating
from its citizens: Separating of powers among the three branches of government, the rule of law,
and the responsibility to promote citizens’ welfare, as well as the attainment of a peaceful
unification of Korea.
C. Participation in patents, trademarks, and other conventions
The purpose of the patent system is, to accelerate the development of technology though the
protection, encouragement, promotion, and utilization of inventions, and thereby contribute to
the development of industry.
The publication of inventions leads to the accumulation and utilization of technology and the
advancement of industry.
Granting exclusive rights for the commercial usage of a patented invention promotes
commercialization, encourages the development of inventions, and leads to the advancement of
industry
Korea has patents, utility models, designs and trademarks. They can all be registered at the
Korean intellectual property Office (KIPO). Korea is a member of the Patent Cooperation Treaty
(PCT) since August 1984. Since then it is possible to designate Korea in international patent
applications filed via PCT route.
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History of the Korean patent system:
1908: The Patent Decree laid the foundation in Korea for institutionalizing intellectual property
1946: The Patent Institute was established and patent laws were enacted
1961:The patent laws were divided into four industrial property laws: the Patent Act, the Utility
Model Act, the Trademark Act, and the Design Act
1977:The Korean Intellectual Property Office (KIPO) was established as an independent office
under the Ministry of Commerce, Industry and Energy
1979:Korea joined the World Intellectual Property Organization (WIPO)
1980:Korea joined the Paris Convention
1984:Korea joined the Patent Cooperation Treaty
A trademark refers to all sensible methods of expression used to distinguish one's goods from
those of another. However, since it is difficult to protect all such methods legally, the Trademark
Act places limits on the protectable constituents of a trademark. Previously, these constituents
were limited to a symbol, character, diagram, three-dimensional shape, or any combination
thereof, as well as color combinations of the mark. On July 1, 2007, protection under the
Trademark Act expanded to include a mark formed by a single color or a combination of colors,
holograms, motions, and all types of visually recognizable marks.
History of the Korean trademark system:
1908: The Trademark Decree was promulgated.
1946: The Patent Institute was established and patent laws were enacted.
1949: The Trademark Act was enacted.
1977: The Korean Intellectual Property Office (KIPO) was established as an independent office
under the Ministry of Commerce, Industry and Energy.
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1979: Korea joined the World Intellectual Property Organization (WIPO).
2002: KIPO submitted an application to WIPO to join the Trademark Act Treaty.
2003: KIPO submitted an application to WIPO to join the Madrid Agreement.
Also, South Korea is a member of the Paris Convention under which any resident of a
Convention country is entitled to claim the priority date of a first application made in a
convention country as that of any subsequent application in any other Convention country within
a 6 month period. China is also a member of the Madrid Protocol for the international
registration of marks.
V. Social Organizations
A. Social Classes
The traditional gentry ( yang ban ) status was formally abolished by the Kabob Reforms
of 1894, but the legacy of the class system is seen in social psychological and behavioral
patterns. In 1994, 60 percent of South Koreans regarded themselves as belonging to the middle
class. The subjective perception of one's class position was closely correlated with one's level of
educational attainment. Eighty-three percent of those with a college education perceived
themselves as belonging to the middle class, compared with 41 percent of those with a primary
school education. In general, industrialization and urbanization have contributed to a leveling of
the napkin hierarchy in social life, but the income gap between the working classes and the
industrialist class as new power elite has grown. Family background, education, occupation, and
the general acceptance of a meritocracy are major social factors that contribute to the unequal
distribution of wealth by class.
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B. Race, ethnicity, and subcultures
Korea’s population is one of the most ethnically and linguistically homogenous in the
world. Except for a small Chinese community (about 20,000) virtually all Koreans share a
common cultural and linguistic heritage. With 47 million people, South Korea has one of the
world’s highest population densities. Major population centers are located in the northwest and in
plains south of Seoul-Incheon.
South Korea is a homogeneous society with absolute majority of the population of
Korean ethnicity. In 1970, an estimate of 120,000 Chinese resided in South Korea. Due to
economic restrictions by the Korean government, the number officially fell to around 21,000
today. The actual number may be higher since many Chinese work and reside in Korea illegally.
In a 10-year period starting in the late 1990s the number of Chinese in Korea exploded.
Estimates place at least 300,000 and possibly more than 1,000,000 Chinese in Korea fall into
categories of Korean-Chinese (조선족), permanent residents and/or illegal Han Chinese
(한족)immigrants. A large Chinese community lives in Seoul's Daerim/Namguro area and a
smaller but established community in Seongnam. That Chinese-Korean community, known as
Hwakyo (화교) by the Koreans, distrusts ordinary Koreans and tend to avoid those unfamiliar to
them. Migrant workers from the Philippines and Malaysia live and work and in the main cities,
particularly Seoul. A small but growing number of foreigners related to business and education.
The number of marriages between Koreans and foreigners has risen steadily in the past
few years. In 2005, South Korea marriages to foreigners accounted for 14 percent of all
marriages (about 26,000 marriages). Many Korean agencies encourage 'international' marriages
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to Chinese, Vietnamese and Thai women, adding a new degree of complexity to the issue of
ethnicity. 29,000 United States military personnel serve in Korea.
C. Business Customs and practices
When doing business in South Korea men greet each other with a slight bow sometimes
accompanied with a handshake. Maintaining eye contact is a good etiquette. In South Korean
business culture, women also shake hands. Western women doing business there will need to
instigate a handshake with Korean men.
Address people by their title or by their title and family name. First names can be used
once a relationship has been established but wait for your Korean counterpart to initiate this
change.
Prior to doing business in South Korea bring a plentiful supply of business cards. They
will be exchanged frequently. Try and have one side of the card translated into Korean.
A part of doing business in South Korea is the exchanging of gifts. It is done to secure
favours and build relationships.
Gifts are always reciprocated so bring be sure to bring some with you from your native country.
Good gifts for a first visit are office items, maybe with your logo on them. After this try and
bring items of beauty and craftsmanship. Foodstuffs will also be appreciated. Avoid overly
expensive gifts as this will require the recipient to match the value when they reciprocate.
If offered a gift, it is good etiquette to offer some initial resistance. However, after the giver
insists for the second or third time feel free to accept. Gifts are usually not opened in front of the
giver, although it may be a good idea to ask if they would like you to do so.
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Prior to doing business in South Korean ensure you book any meetings well in advance.
The most convenient times for doing business are between 10:00 a.m. to 12:00 p.m. and 2:00
p.m. to 4:00 p.m. Times of the year to avoid include holidays like the Lunar New Year (around
January/February) and the Moon Festival (around September/October).
Punctuality is important in South Korea and being on time is recommended. However,
business people are busy and have hectic schedules which may cause them to be late
occasionally. Be courteous and do not display any negative emotions if someone is late to meet
you.
Before doing business in South Korea understand that personal relationships generally
take precedence over business. A first meeting is a 'get to know' affair rather than focusing on
business matters. It could take many business trips to South Korea to reach an agreement or close
a deal.
VI. Languages
A. Official Language(s)
The Koreans are one ethnic family speaking one language. They share certain distinct
physical characteristics which differentiate them from other Asian people including the Chinese
and the Japanese, and have a strong cultural identity as one ethnic family.
The Korean language is known as Hangungmal, or more formally, Hangugeo and is
spoken by more than 65 million people living on the peninsula and its outlying islands as well as
5.5 million Koreans living in other parts of the world. The fact that all Koreans speak and write
the same language has been a crucial factor in their strong national identity. Modern Korea has
19 | P a g e
several different dialects including the standard one used in Seoul and central areas, but they are
similar enough that speakers/listeners do not have trouble understanding each other.
Nowadays, many Koreans learn how to speak English for specific purposes, such as for
business, trade, academics, etc. This depicts that Korean accompany progress.
B. Spoken, versus written languages
Spoken by approximately 78 million people around the world, the Korean language has
an intriguing linguistic and cultural history. With the Korean language’s obscure history,
experience with suppression and a past peppered with unresolved questions, the fact that it
remains one of the world’s oldest living languages is all the more impressive.
Korean, although it uses tones to distinguish certain meanings, is not as heavily tonal as a
language such as Mandarin. The language does not have articles, and smaller details of meaning
are usually conveyed through affixing small modifiers to a whole word (with the base word
generally remaining unchanged). Like in Japanese, honorific is critically important in Korean–a
person must modify their speech based on their own social status in comparison to the person on
the other end of the conversation, or else come off as extremely rude.
In the same way as many other nations located close to China, the people of Korea began
writing using Chinese characters (or Hanja) in ancient times. Because classical Chinese
characters were so difficult to learn, reading and writing was restricted to the societal elite for
many centuries. In the fifteenth century, a Korean ruler had a team of scholars invent an alphabet
that would be unique to their land, known as Hangul. The 24 letters of the Hangul alphabet are
usually arranged in blocks for each syllable, superficially resembling Chinese characters, but
they in fact contain individual phonetically pronounced letters in much the same way as the Latin
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alphabet. Hangul was looked down on for some time, but it enabled the underprivileged to
become literate more easily, and it became popular in the nineteenth century as Korea sought to
shake off Chinese influences. Hangul is now the official writing system in both Korean
countries.
B. Dialect
Within any language or language group there may be significant changes in speech,
vocabulary, and pronunciation. The term used to describe these changes is called a dialect. Some
words or phrases that exist in one dialect may exist or be absent from different Korean dialects.
Korea is split into North and South Korea. North and South both have multiple regional dialects.
The most common Korean Dialects in South Korea is the Gyeonggi or Seoul Dialect. Most of the
dialects are named for one of Korea’s traditional eight provinces.
Most Korean dialects are very closely related and can be easily understood by speakers
from different regions. The main exception to this appears to be the small island dialect of Jeju,
which some (but not all) linguists consider as a language all on its own. Jeju was not under direct
control of the Korean kingdoms for much of its history and developed a dialect that was different
in many respects, notably that it did not make very much use of honorific terms. The Jeju
language/dialect is critically endangered today, as most Korean dialects are becoming more alike
over time in a process known as “dialect levelling.”
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D. Economic Analysis
I. Population
South Korea ended 2013 with a population of 50,219,669 people, which represents an
increase of 215,228 people compared to 2012. South Korea is no. 26 among the 184 countries
which published this information in DatosMacro.com. The female population is greater, with
25,248,655 women, representing 50.27% of the total, compared to 24,971,014 or 49.72% men.
South Korea has a high population density, with 503 people per square km and it was in position
175th in our ranking of density population in 2013.
Indeed, South Korea today has one of the lowest birth rates worldwide. In 2013, the
average South Korean woman had 1.23 children, and as stated above, the number is lower still in
Seoul. However, as recently as 1960, the average number was a staggering 6.16 children per
woman.This was one of the most dramatic decreases in fertility rates in modern history and
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happened in the background of what was an almost unprecedented economic breakthrough. It
remains unclear, though, to what extent family planning contributed to South Korean stunning
economic success. It is just as likely that economic growth, which is associated with education,
women's rights and changing attitudes to family roles contributed to smaller family sizes. By
2005 birth rate reached its lowest point at 1.08 births per woman. Since then, it has slightly
increased and stabilised around 1.2 mark, remaining one of the world's lowest.
Such levels mean that if life expectancy remains stable, every following generation will
be half the size of the previous one. So far, this has not happened, but only because the dramatic
decrease in fertility rates in South Korea have coincided with dramatic improvements in life
expectancy. In the 66 years that have passed since Korea regained its independence, the average
life expectancy has increased from 44 years to 81.4 years - ahead of the US, but slightly behind
Japan.
Fast increase of life expectancy is the only reason that the population of South Korea still
continues to grow, but within few years, the decline in fertility rates will start to have an impact.
Thus by 2018, the population is predicted to stabilise around the current level, slightly above 50
million, and then begin to decline.
South Koreans may feel a great deal of pride about the fast growth of their life
expectancy. After all, they moved from being a poor third-world country in the 1960s to being
one of the world leaders in healthcare and medical services. However, in the long run, this
success will bring about unprecedented demographic changes. If projections are correct, by 2050
those over the age of 65 will constitute some 38 percent of South Korea's population. To put
things in perspective, it is expected that the share of the elderly will be 20 percent in the US
population and 25 percent in the population of UK by the same year.
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II. International Trade Statistics
A. Major Exports
Nicknamed the Land of the Morning Calm, South Korea’s exports amounted to US$559.6
billion in 2013, up 53.9% since 2009. South Korea’s top 10 exports accounted for 86.3% of the
overall value of its global shipments. Based on statistics from the International Monetary Fund’s
World Economic Outlook Database, South Korea’s total Gross Domestic Product amounted to
$1.7 trillion in 2013. Therefore, exports accounted for about 33.6% of total South Korean
economic output. Given South Korea’s population of 49 million people, its total $559.6 billion in
exports during 2013 translates to roughly $11,412 for every person in the country. This compares
with a benchmark $2,545 in exports per person for the world’s total exports (assuming an
estimated global population of 7,095,217,980 per the CIA World Factbook).
South Korea is the top exporter of Passenger and Cargo Ships, Cyclic Hydrocarbons,
LCDs, Polycarboxylic Acids, Cold-Rolled Iron, Special Purpose Ships, Unprocessed Synthetic
Staple Fibers, Large Iron Containers, Other Fermented Beverages, and Cyanides.
South Korea’s Top 10 Exports
The following export product groups represent the highest dollar value in South Korean
global shipments during 2013. Also shown is the percentage share each export category
represents in terms of overall exports from South Korea.
1. Electronic equipment: $135,502,617,000 (24.2% of total exports)
2. Vehicles excluding trains and streetcars: $72,783,929,000 (13%)
3. Machinery: $59,327,144,000 (10.6%)
4. Mineral fuels including oil: $54,093,985,000 (9.7%)
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5. Optical, technical and medical apparatus: $35,946,520,000 (6.4%)
6. Ships, boats and other floating structures: $35,845,842,000 (6.4%)
7. Plastics: $31,179,306,000 (5.6%)
8. Organic chemicals: $24,855,250,000 (4.4%)
9. Iron and steel: $22,275,412,000 (4%)
10. Iron or steel products: $11,181,093,000 (2%)
South Korea is a highly export-driven and industrialized economy. The above list reflects
the strong Korean focus on producing electronics, automobiles, machinery, petrochemicals, ships
and robotics. Among the top 10 exports, only ships, boats and other floating structures declined
over the 5-year period ending in 2013, posting a 15.6% slowdown. Mineral fuels including oil
were up 127.4% followed by organic chemicals at 89.8%. Major export partners are China (25
percent of total exports), ASEAN (14 percent), the United States (10 percent) and the European
Union (9 percent). Others include: Japan, India, Brazil and Paraguay. South Korea is ranked 5
with an Economic Complexity Index (ECI) of 1.73625
South Korea unemployment rate was 3.2% in 2013.
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B. Major Imports
South Korea is the twelfth-richest country and number 8 importer. In 2013, South Korea
bought US$515.6 billion worth of imported products. That total is up by 59.6% since 2009. With
a lack in natural resources, South Korea has a high dependence on import of capital goods, raw
materials and industrial supplies. The country is also the 5th largest importer of oil in the world,
with 3.074 million barrels imported per day.
Top South Korean Imports from the World:
Fastest-Growing South Korean Imports 2013:
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South Korea is the top importer of Crude Petroleum (20%), Petroleum Gas (6.3%),
Integrated Circuits (5.1%), Refined Petroleum (4.7%), and Coal Briquettes (2.8%). Main import
partners are China (16 percent of total imports), Japan (12 percent), United States (8 percent) and
Saudi Arabia (7 percent). Others include: the European Union (9 percent), ASEAN (10 percent)
and Australia (5 percent). Imports in South Korea increased to 44300 USD Million in September
of 2014 from 42864.82 USD Million in August of 2014. Imports in South Korea averaged
10970.71 USD Million from 1966 until 2014, reaching an all time high of 45899.19 USD
Million in July of 2014 and a record low of 38.61 USD Million in January of 1966. Imports in
South Korea is reported by the Ministry of Trade, Industry & Energy (MOTIE).
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C. Trade Restrictions
C.A. Quotas
South Korea is an export-orientated country, with a total trade volume of 884.2 billion in
2010. This figure also makes them the 7th largest exporter and 10th largest importer in the world.
Since 2003, South Korea has established its network of free trade agreements to boost trade and
economic ties with other countries. Korea continues a process of economic liberalization and
deregulation, but the Republic of Korea government (ROKG) has yet to adopt a fully laissez-
faire policy where the economy and trade are concerned. The U.S. Embassy, in cooperation with
the American Chamber of Commerce (AmCham) in Korea, works actively to lift or loosen the
many regulatory trade restrictions that currently exist. Overcoming regulatory barriers to trade is
also a major focus of the U.S.-Korea FTA. Transparency, due process, public comment/appeals
procedures, and timely and written administrative procedures are among the topics that were
addressed and agreed to and which affect a number of the sector-specific elements to the
Agreement. While the South Korean state is undoubtedly centralized, rice is a sensitive topic that
had been repeatedly left untouched in Seoul’s free trade negotiations.
Currently, South Korea has 5 FTAs in effect, 3 FTAs which has concluded discussions,
and 19 FTAs under negotiation and consideration. So far, the biggest FTA of South Korea is the
Korea-US Free Trade Agreement (KORUS FTA) signed in 2007. This free trade agreement plans
to liberate 95 percent of the trade tariffs between the 2 countries. It is also US first free trade
agreement with a major Asian economy and biggest deal since the North America Free Trade
Agreement (NAFTA) signed with Japan in 1993.
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South Korea's FTA includes Korea-US FTA, Korea-EU FTA, Korea-Peru FTA, Korea-
Chile FTA, Korea-Singapore FTA, Korea-India CEPA FTA, Korea-ASEAN FTA, Korea-EFTA
(European Free Trade Area). Korea has specific labeling and marking requirements for certain
products, such as pharmaceuticals, as well as for organic and functional food and food produced
through biotechnology. Country of origin labeling is required for commercial shipments entering
Korea. The Korean Customs Service (KCS) publishes a list of country of origin labeling
requirements by Harmonized System Code number. The Korean Ministry of Trade, Industry and
Energy (formerly the Ministry of Knowledge Economy) issues the KC Mark for items that fall
under its jurisdiction, formerly comprised of 13 mandatory marks, many which overlapped in
testing procedures and functions. The consolidation of these marks into the KC Mark ensures
that companies, both Korean and foreign agencies, will save time and costs due to reduced
redundancies introduced into this new system.
B. Import Taxes
Import duty and taxes are due when importing goods into South Korea whether by a
private individual or a commercial entity. The valuation method is CIF (Cost, Insurance and
Freight), which means that the import duty and taxes payable are calculated on the complete
shipping value, which includes the cost of the imported goods, the cost of freight, and the cost of
insurance. In addition to duty, imports are subject to sales tax, education tax, STRD tax,
transportation tax, special consumption tax, and in some cases to liquor tax. Duty rates in South
Korea vary from 0% to 40%, with the average duty rate at 4.17%. Some products can be
imported free of duty (e.g. books). VAT is levied on imports at a standard rate of 10% on the
sum of the CIF value, duty and other taxes if applicable. Imports with a CIF value up to KRW
150,000 are exempt from duty and VAT.
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Other taxes and custom fees:
Special consumption tax is charged on certain products as ad valorem at rates between
5% and 20% of the sum of the CIF value and duty. It can also be specific, i.e. charged per unit of
measure.
STRD (Special Tax for Rural Development) is charged on certain products at 10% of the
Special Consumption tax.
Transportation tax is charged on some products based on quantity.
Liquor tax is charged on alcoholic beverages at a rate between 5% and 72% of the sum of
the CIF value and duty. It can also be specific, i.e. charged per kg.
Education tax is charged at rates between 10% and 30% based on Special Consumption
tax, or Liquor tax, or Transportation tax, whichever is applicable.
C. Tariffs
There are two Customs authorities with respect to trade and customs in South Korea
(Korea). The Korea Customs Service (KCS), on the one hand, as an enforcement agency; and the
Ministry of Strategy and Finance (MOSF), on the other hand, as a policy making agency. Korea
as a member of the World Trade Organization (WTO), has adopted the organization's customs
valuation method. Similarly, as a member of the World Customs Organization (WCO), Korea
uses the Harmonized System for the tariff classification of imports and exports.
The average basic tariff rate applied to imported goods in Korea is 3.88 percent.
Agricultural products are levied an average applied rate of 49 percent while an average tariff of
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6.6 percent is applied on non-agricultural products. Being a party to various trade agreements,
lower duty rates are available to the respective counterparties.
Products Having a Higher Customs Tariff include Agricultural products, Seafood,
Beverage (Wine, Spirit, etc), Tobacco, Textile and Clothing. Customs threshold (from which
tariffs are required) is KRW 150,000. Tariffs may also be reduced according to special cases
provided in the Foreign Investment Promotion Act, Tax Exemptions and Exceptions Act, and
Offshore Minerals Development Act.
D. Customs Duties
With the increasing number of foreign investment companies doing business in Korea,
the Korean Customs authorities continually challenge transnational companies (TNCs) on
customs related matters, particularly on their inter-company transfer pricing policies and
practices, through customs audits. Various duty saving opportunities may be identifiable in Korea
from an in-depth understanding of Customs related regulations and practices.
Duties are assessed on a Cost-Insurance-Freight (CIF) basis. The primary mode of
customs valuation is the transaction value method. Any doubts cast by the KCS on the stated
value may lead to the use of other valuation methodologies under the WTO appraisement
hierarchy. Value Added Tax rate of 10 percent is imposed on importations based on the landed
cost (i.e. customs value + duties).
A number of commodities require special permits and licenses from certain government
agencies prior to their importation to Korea. Examples of these are agricultural and
pharmaceutical products. Filing an import entry Import entries are filed with regardless of
whether the imported articles are subject to duties or not. Customs brokers generally undertake
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the filing process, and finalize the import entries. Payment of duties and taxes are usually made
through authorized agent banks.
The customs regulations are complex, frequently amended, and are subject to various
interpretations. The KCS has become more active in auditing TNCs with regard to the customs
valuation on goods imported from related-parties. In order to mitigate the burden of a customs
audit, a duty payer can either prepare transfer pricing studies for both tax and customs purposes,
or apply for the Advance Customs Valuation Arrangement (ACVA) program. More specifically,
through the ACVA program, the taxpayer and the KCS may establish prices of imported goods
between related parties prior to actual importation. Companies using an ACVA are exempt from
customs audit for up to three years.
Duties paid on imported materials that were used in the production of an exported
product may be reclaimed, through a drawback system. Customs bonded warehouses and bonded
factories are also available for export oriented enterprises to avail of duty exemptions on
imported raw materials used for export production.
Korean Customs Law stipulates unconditional reduction and exemption of duties based
on specific facts (i.e. imported goods for governmental use, goods with minimal values), and the
conditional tariff reduction and exemption in which tariffs are reduced on the condition of
specific usage (i.e. goods for the preservation of environment, goods for donation).
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E. Competitive Market Analysis
I. Current Marketing Situation
A. Market Situation
Analysing the current market or the industry is essential for it identifies the major
competitors within that market.During the past years, a lot of effort had been expended to make
this segment of the market stronger and more competitive as well as to prepare it to take off and
compete in the glamorous and exclusive world market of designer shoes.
Primadonna’s market situation involves its target market including the gender, age and
social status. They target female customers with the ages of 18 to 40 years old and are middle to
upper middle social status. They also target young professionals and businesswomen who value
their appearances and can be single or married.
B. Product Situation
The industry of footwear including the shoes for fashion has created breakthroughs in
many aspects to satisfy consumers. Over the past years, different styles and forms of shoes
developed and businesses need to cope up to win their customers. For an independent local store,
Primadonna has the largest selection of women’s shoes, from ballet flats, to gladiator sandals to
wedges and pumps. They also include bags, pouches and accessories, everything that makes it
eye candy for the target market of Primadonna.
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C. Competitive Situation
C. A. Product
Primadonna’s product comes out with fabulous looking footwear that comes up with
various designs that suit with fashion moods and personalities of women, from Dainty to
feminine, boyish, androgynous, fierce, edgy, hippie, and sexy. Their product is focused on
women’s footwear that comes up with different designs for different personalities of customers.
Primary products are ladies footwear from casual sandals and slip-ons to dressy heels, booties,
pumps and fun peep toes, wedges, sling-backs and flats.Secondary products are ladies bags and
accessories that are equally distinct and unique in fun and interesting colors.
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C. B.Place
Primadonna branches can be seen on almost every SM Stores and Supermalls in Luzon,
Visayas and Mindanao. It is also available in Market Market, SM San Lazaro, Sta Lucia Mall,
SM North Edsa, SM Novaliches, SM Manila, SM Masinag, Ali Mall, Lucky Chinatown Mall,
SM Marilao, Ne Pacific Mall, SM Sta Rosa, SM Rosario, SM Dasmarinas, SM Bacoor,
Limketkai Mall, SM CDO, KCC Mall, Robinsons Bacolod, SM Consolation Cebu, and Harbor
Point Subic.
C. C. Price
Pricing is a major element of marketing any product, and it is vitally important to set the
right price. A price that is too high or too low for the target market can seriously affect sales.
Elements such as target market, profit margin needed growth strategy for the company and
market share all play a role in what pricing strategy is used.
Primadonna uses premium pricing strategy where it involves setting the price of a
product higher than similar products. Primadonna’s prices of products ranges from 700-
15000.00Php, affordable and reasonable but the products have a very unique designs and styles
that differ from other competing products.
C. D. Promotion
Primadonna doesn’t really invest on promotions but makes sure that their endorser, Anne
Curtis is present to their print advertisements and billboards. They are now having sales
promotions too, such as year-end sale. They are also using social media as well. They are using
Anne Curtis, their endorser as part of their new released designs. They also have campaigns
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entitled “Spring/Summer 2012” , “Different Shoe, Different You” and “Blogger’s Post” which
they let their customers post their pictures wearing the products and send it to the company.
D. Distribution Situation
Primadonna has only 3 stores from its introduction to the market way back to 2007, but
now the brand has a growing distribution of their product to the market. It executes selective
distribution. The brand is becoming widely available to different parts of the country through
branches allocated in some supermalls. Primadonna branches are mostly situated in Luzon. Their
shoes are also distributed on online fashion stores too, such as Zalora, which makes it much
easier for the customers to reach their products. Therefore, Primadonna has an expanding access
to the market, which is a good means for the brand and could now risk on entering global
markets.
E. Macroenvironmental Situation
E. A. Cultural Factors
One important factor that the company must take into consideration is the cultural factors.
Especially that the company has decided to export its product abroad. Each country has its own
culture, beliefs and norms. With these, it affects the preferences and behaviours as well of the
people. Modern culture has changed our culture effectively which comes with the amazing
design and features. Specifically in the fashion industry, busy lifestyles offers more relaxed
attitude towards the selection of footwear. As to nowadays, more people are working outside the
home and for this they need comfortable, easy to wear and yet trendy footwear styles. Due to the
upcoming fashion trends people usually go with the situation upon the comfort level. They prefer
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to look good rather than feel comfort wearing something. The outstanding looking is more
memorable than the comfortable time spend in an occasion.
E. B. Political Factors
Fashion’s industry is much more involved in environmental issues and must pass the laws
governing environmental and pollution monitoring. There are also some animal rights and animal
liberation groups involved in monitoring the animal use in the production process of silks,
fabrics, accessories and garments.
When it comes to setting up a business, there are government rules and regulations that
every owner should know and follow for the safety of their products, employees, and most
especially the customers. Part of government law was to fully comply with the business
registration process of national government line agencies. As part of sole proprietorship
certificate of registration for a business name needed to get from Department of Trade and
Industry (DTI) and Municipal Permit. Part of business responsibility is they need to apply for
Bureau of Internal Revenue (BIR) to pay right tax. They are also required, for the employees, to
register to agencies particularly DOLE, SSS, Philhealth, PAGIBIG and more that will help to
protect their rights.
E. C. Economic Factors
The economy today is rising up, but only some people could feel the economic growth.
Some people have more disposable income than the others leading them into a higher purchasing
power than the other people. Purchasing power of consumers depends on their Social Class thus;
economy greatly affects purchasing power of the customers. The price of Primadonna is
reasonable and affordable and that it could totally affect the purchasing power of its target
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market. For some teens that were still dependent, parents’ budget constraint is the major factor
that influences their buying behavior. People want the color and style of high fashion, but don't
want a hefty price tag with it. Consumers are increasingly looking to connect with brands,
business models and products that do not associate with negative environmental or social
impacts.
Apparel and footwear recorded positive growth in 2013, with the price polarization trend
intensifying in South Korea. Many mid-priced brands discontinued under the circumstances.
Apparel specialist retailer brands offering value-for-money products, and premium branded
clothing, both gained in popularity, accelerating the mid-price brand collapse. Due to this trend,
unit prices witnessed a downward direction. Women’s leggings showed significant growth
among apparel and footwear, negatively affecting some alternative categories such as women’s
jeans and hosiery. Even though the growing trend is expected to slow down, apparel and
footwear will remain in positive figures during the forecast period. However, a potential threat
lies in the increasing value and volume of directly purchased apparel and footwear from
oversees. The unit price will continue to decline as economy-priced apparel and footwear
purchased through internet retailing, TV homeshopping, and apparel specialist retailers with their
own brands are expected to account for healthy growth over the forecast period.
D. Natural / Environmental Factors
Footwear manufacture per se cannot be considered as having a heavy impact on the
environment. Most of the environmental impacts are associated with the upstream industries
(leather and plastics). International pressures coming from technical barriers to trade are pushing
footwear manufacturers that are involved in exports to follow the requirements to reduce the
level of hazardous substances in these products. Backward in the supply chain, these
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manufacturers push the leather processors that ultimately push the tanneries in this regard. As a
response, only the most organized tanneries tend to effectively reduce the use of chemicals that
pose risks to human health. A number of them are not capitalized enough to meet all the
requirements. This tends to create two different industries, just like two different worlds: the
world of the companies that export, and the world of the companies that only meet the demand of
the domestic market. In general, the latter is small sized ones that use traditional technology, this
way barely meeting the requirements of the local regulations or being completely invisible to
environmental agencies.
Implementation of environmental management actions in the footwear sector is important
based upon a series of issues that the sector faces, such as presence of heavy metals in effluents,
air emissions from glues and solvents that can have negative impacts on workers in the internal
environment. Among other relevant issues are the financial resources that have to be spent on
water and electricity, risks that are associated with chemicals handling and storage, and odor that
is generated by tanning.
II. Opportunity and Issue Analysis
SWOT ANALYSIS
Strenghts
Strong branding on domestic market
High profitability and revenue
Wide range of products, including shoes,
bags, dresses, belts, etc.
Products are promoted by celebrity stylish
Weaknesses
Does not have an international presence
Focuses only on female shoes
Designs are easily copied by the local
manufacturers
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endorser like Anne Curtis
With over 50 branches in the home country
Competitive shoe brand that always carries
the season’s latest trends and must-haves
making them preferred by customers
Stylish and yet affordable
Store designs has a distinct, refreshing
concept (from the shoe to the store
ambiance) that engages, urges shopping
and ultimately results in the irresistible lure
to own one
Fabulous PR advertising and promotional
line up
Company revenue and net income kept
increasing
Customer loyalty
Opportunities
Expansion in the global markets to create
larger brand recognition and sales
Online market
They should also target male segment
Innovation
Providing social media options on website,
Threats
Competition from other brands in the same
segment
Constantly changing fashion
Website is not as advanced as others
Government regulations
Different tastes of customers
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they can reach out to potential customers
and fans through open platform medias
The industry is one of the fastest growing
imports in the international market
Apparel and Footwear Industry shows a
positive growth over time.
Cultural differences
Issue Analysis
Aside from determining the marketing strategies that the company should do for the
brand to penetrate the international market, the challenge on exporting the product to South
Korea is the complex customs regulations frequently amended, and are subject to various
interpretations implemented by the government. Also, the materials to be used in making the
shoes to be exported is also a concern since South Korea has different climate and topography as
compared to our country. The brand should also be translated into Korean language effectively so
that the market can easily understand and get the grasp of what the brand is all about which is
very critical for creating brand awareness. Aside from this, focusing on proper usage of Korean
language will achieve the marketing objectives of the brand entering to South Korea. The new
market is also known for being ethnocentric which denotes that they prefer and buy local brands
so the strategies that will be executed should be comprehensive and really fit to the target market.
III. Objectives
A. Financial Objectives
Increase the gross sales by 5% and 3% profit through direct exporting.
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Achieve return on investment after a year of brand launching in South Korea.
Double the sales during peak seasons of shopping in South Korea.
Achieve financial stability in exporting after two years of brand launching which
will produce enough fund for branch expansions and more sales promotions.
B. Marketing Objectives
o The company will go for direct exporting since it knows everything about the
brand than anyone else and South Korea is also an Asian country so it is not that
tedious to personally go there and assess the situation and all the other essentials.
o Primadonna aims to be known as high quality and unique international shoe brand
in South Korea. This brand image will be achieve through proper execution of
marketing strategies.
o Garnering at least 10% of the market share through market penetration on the first
two years of product launch is the first key to indicate success of exporting the
brand in South Korea.
o After two years of launching, the brand is expected to have two to three branches
in major distribution outlets of clothing products in South Korea.
o When financial stability is achieved in South Korea, sponsorships in major
fashion trends events and participation in fashion shows will be participated by
Primadonna.
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IV. Marketing Strategies
A. Target Market
The target market will be the same as in the home country who are female customers with
the ages of 18 to 40 years old and are middle to upper middle social status. The company will
also be targeting young professionals and businesswomen who value their appearances and can
be single or married.
B. Positioning
South Koreans are known for being fahionable and trendy . Primadonna will position
itself just like how it is done here in the Philippines: Different Shoe, Different You. Since they
love to have unique match up clothing, they can definitely choose a perfect matching footwear
for their outfit. Also, Primadonna is the brand for her, the high quality footwear which will bring
and define her different personalities by just wearing it.
C. Product Line
Primadonna’s products to be exported are the same as what are sold here which comes
out with fabulous looking footwear that comes up with various designs that suit with fashion
moods and personalities of women, from Dainty to feminine, boyish, androgynous, fierce, edgy,
hippie, and sexy. Their product is focused on women’s footwear that comes up with different
designs for different personalities of customers. Primary products are ladies footwear from casual
sandals and slip-ons to dressy heels, booties, pumps and fun peep toes, wedges, sling-backs and
flats. Secondary products are ladies bags and accessories that are equally distinct and unique in
fun and interesting colors. The modification will be done on sizes, shape, and materials used.
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Launching of shoes of the season will based on the climate of South Korea and this will
be in line with the advertisements and sales promotion of the brand.
D. Price
Primadonna will be using premium pricing strategy where it involves setting the price of
a product higher than similar products. Primadonna’s prices of products ranges from ₩
23,927.53 KRW to ₩ 477832.80 KRW, affordable and reasonable but the products have a very
unique designs and styles that differ from other competitors like Suecomrabonnie and
Yellowlady bird.
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E. Distribution Outlet
Primadonna will have its first main branch in Korea at Seoul, for it is the capital and
largest metropolis of South Korea. Seoul will be the instrument for Primadonna to be known in
the entire country. Primadonna is expanding and improving its distribution capabilities by
opening its own retail stores in key cities around the country in up-market and quality shopping
venues, mainly in Seoul, South Korea, since it is one of the most fashionable and trendy
countries in Asia and in the world. Primadonna will be expanding its business through opening a
boutique or specialty store in the mall of Times Square. Since it is the Korea’s largest shopping
mall and in addition to being specifically designed to facilitate the flow of customer traffic, the
Time Square boasts an exquisite interior design and outstanding customer services for the
customers to be more aware with the brand to represent strong store reputation, a perfect
shopping mall for Primadonna.
Also, Primadonna can consider opening a boutique store in Myeongdong, the center for
shopping in Korea. Along with the most popular Korean brands, Primadonna will be a hit to the
customers there.
F. Sales Force
Sales forces drive revenue for their employers by actively seeking out and engaging
customer prospects. Sales can be described as the most personal branch of the marketing
function, as salespeople often work directly with customers, either face to face, over the phone or
in online sales chat. Sales force objectives and strategies are mainly concerned with boosting
companies' top-line revenue growth but may also strive to reduce marketing costs and increase
profitability. For the sales team that will be working in the retail and boutique stores in Korea,
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the company require the skills and experience of sales and sales negotiation. It will also require
the sales team to have the full knowledge of the brand and its products. Attitude and enthusiasm
are also important especially the brand is under fashion and trends. Korean personnel will be
hired and one of them should also be fluent of English language.
G. Advertising
Primadonna Company will have adaptation strategy in advertising. Advertisements will
have the same theme as in the Philippines with only some adaptations on restrictions in South
Korea, with their tagline, “Different shoe, different you.” The brand endorser will be Taeyeon of
Girls generation in Korea because their group named the most influential star by Forbes.
Primadonna will have its advertisements on magazines and billboards. Also it tend to have digital
marketing such as company websites, social media applications such as Facebook and Twitter,
blogging, and Youtube in order that our customers can easily access to brand. Primadonna will
also have its campus tour displays whereas most of the segments are teen ladies. All
advertisements as well as creation of separate online shop and website of Primadonna from the
existing one will be translated into Hangul, which is the Korean alphabet.
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Print Advertisement
H. Sales Promotion
At the grand launching of the Primadonna store, Koreans can able to shop more than
1,000 of the latest shoes, bags and fashion items at 40-50% discount. Like Filipinos, they are also
into sales and into bargaining to lower prices. Then next first 200 shoppers will get gift cards
loaded with a value from ₩ 11945.82 KRW and up to ₩ 47783.28KRW . Also customers who
buy 3 Primadonna shoes will have its 50% discount on their next purchase of footwear.
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Selected items will be discounted every four months wich will highlight the seasonal
shoes for the month of the year. Loyalty card will also be launched after six months of grand
opening of the store.
V. Action Program
Action Plan Period Persons/Agencied
Involved
Time Frame Budget
Grand
Launching
- Company
representative,
Sales force
December PhP 500 000
Seasonal
Collections
Whole year Sales force,
Endorser,
Advertiser
1 month PhP 100 000
Grand Sale 3 days Sales force December PhP50 000
Sponsorship on
K Collection in
Seoul Fashion
Concert
1 day Sales force,
Endorsers,
Company
representative
March PhP100 000
Participation in
Korea Style
Week
1 week Sales force,
Endorsers,
Company
April PhP 200 000
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representative
Seoul Fashion
Week
1 week Sales force,
Endorsers,
Company
representative
Spring/Summer
and Fall/Winter
seasons
PhP 200 000
Branch
Expansion
6 months Company
representative
Two years after
Grand Launching
PhP 500 000
49 | P a g e
References
http://geography.about.com/od/southkorea/a/south-korea.htm
http://en.wikipedia.org/wiki/Geography_of_South_Korea
http://countrystudies.us/south-korea/30.htm
http://en.wikipedia.org/wiki/List_of_political_parties_in_South_Korea
http://www3.ambest.com/ratings/cr/reports/southkorea.pdf
http://english.chosun.com/site/data/html_dir/2013/05/07/2013050701061.html
http://www.korea.net/Government/Constitution-and-Government/Local-Governments
http://countryeconomy.com/demography/population/south-korea
http://www.aljazeera.com/indepth/opinion/2014/09/are-south-koreans-at-risk-extin-
201491013445124904.html
http://www.tradingeconomics.com/south-korea/exports
http://www.worldstopexports.com/south-koreas-top-10-exports/2302
http://atlas.media.mit.edu/profile/country/kor/
http://www.worldsrichestcountries.com/top_korea_imports.html
http://www.economywatch.com/world_economy/south-korea/export-import.html
http://thediplomat.com/2014/07/south-koreas-free-trade-dilemma/
http://www.dutycalculator.com/country-guides/Import-duty-taxes-when-importing-into-
South-Korea/
http://www.export.gov/southkorea/doingbusinessinskorea/traderegulationsstandards/index.as
p
https://en.santandertrade.com/international-shipments/south-korea/customs-procedures
http://www.omniglot.com/writing/korean.htm
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http://www.kwintessential.co.uk/resources/global-etiquette/south-korea-country-profile.html
http://www.101languages.net/korean/dialects.html
http://www.101languages.net/korean/dialects.html
http://www.101languages.net/korean/dialects.html
http://www.ediplomat.com/np/cultural_etiquette/ce_kr.htm
http://en.wikipedia.org/wiki/Law_of_South_Korea
http://www.kipo.go.kr/kpo/user.tdf?a=user.english.html.HtmlApp&c=100016&catmenu=ek0
2_02_03
http://ec.europa.eu/enterprise/sectors/footwear/environment/index_en.htm
http://micanonymous.wordpress.com/tag/prima-donna-wedge-shoes/
http://seoulistic.com/travel-to-korea/seoul-shopping-11-best-places-to-go-shop-for-korean-
fashion/
http://www.visitseoul.net/en/shopping/malls-and-shopping-centers/korea-shopping-
centers.jhtml
http://smallbusiness.chron.com/examples-sales-force-objectives-strategies-11011.html
http://www.marketingdonut.co.uk/marketing/sales/sales-management/managing-your-sales-
team
http://www.intechopen.com/books/international-trade-from-economic-and-policy-
perspective/technical-barriers-to-trade-of-leather-and-footwear-impacts-and-challenges-posed-
by-international-st
http://www.dummies.com/how-to/content/analyzing-your-market-situation.html
http://www.euromonitor.com/apparel-and-footwear-in-south-korea/report