coopers feasibility study final

8/12/2019 Coopers Feasibility Study Final

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Global Marketing Feasibility Study Report

Students:

Richard Baylis S3429504

[email protected]

Nathan Din S3439328

[email protected]

Pamela Macasaet S3432035

[email protected]

Andrew Nguy S3433352

[email protected]

Jiaqi Zheng S3375304

[email protected]

Jared Thompson S3284262

[email protected]

Tutor: Chris Toleman

Tutorial:Tuesday 2.30 PM

Group: 2

Submission Date: 6th

of June 2014

Word Count: 5,065
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


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Table of Contents

Executive Summary ........................................................................................................................ 1

Introduction ...................................................................................................................................... 3

Target Market ................................................................................................................................... 4

Segmentation .................................................................................................................................... 5

Competitive Analysis ..................................................................................................................... 6

Positioning Strategy ....................................................................................................................... 9

The Marketing Mix ........................................................................................................................ 10

Market Entry Strategy ........................................................................................................................... 10Licensing ................................................................................................................................................ 10

Pricing Strategy ..................................................................................................................................... 11

The Product ........................................................................................................................................... 13

Distribution Strategy ............................................................................................................................. 14

Promotional Strategy ............................................................................................................................ 15

Conclusion ....................................................................................................................................... 19

References ....................................................................................................................................... 20


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Executive Summary

After conducting our macro environmental research analysis we have devised a market

launch strategy and a promotional plan to launch the Coopers Pale Ale and Sparkling Ale

into the South Korean beer market.

Coopers Brewery is a well-established Australian-owned beer manufacturer here in Australia.

As a team working for such company, we believe that transitioning our products and

exporting to South Korea, as well as licensing our products overseas, is a sound strategy.

A broad outline of South Korean beer depict nearly 50,000,000 people residing in South

Korea, with 71% are of legal drinking age, combined with the fact that theyre the 11 th

highest alcohol consumers in the world, it is evident South Korea has a strong drinking

culture and will welcome Coopers Pale Ale and Sparkling Ale into its already flourishing

market.

The target market has been specifically outlined, containing our primary market of people

aged 30 to 59 years of age, with a preference of businessmen and employees. Our

secondary target market consists of a younger age group of 20 to 29 year olds, as the legal

drinking age in South Korea is 20. With a determined target market, Coopers has a strong

gateway to who they want to market their product towards.

Segmenting the market was simple, as we evaluated the economic conditions of South

Korea and Australia and compared the two alike. It was found evidently from the macro-

environmental research paper that the economic conditions were similar. Since Coopers is

segmenting a luxury market in Australia, we decided to match this with the South Korean

beer market. We will adopt the same marketing segmentation strategy, as this will help in

minimizing the risk of the company who is implementing the new strategy. Further outlined,

is brands name, luxury and prestige, and how its valued and viewed by its customers. We

decided on a more high-end, prestige look for Coopers beer in South Korea, rather thantraditional, low-end beer.

A sound competitive analysis gave leeway to information about who the competitors in South

Korea are, what prices they are charging for their beer and the current duopoly status in

South Koreas beer market. With a summary table that lists all the available beers in South

Korea, we have determined that the domestic brands listed are priced at the same level and

are very cheap. Foreign beers are sold by either South Koreas big two brewing companies,

while more expensive than domestic beers, are cheaper than foreign beers that are imported

independently.


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The positioning strategy we have determined for use is the Foreign Consumer Culture

Positioning strategy. It will showcase the brand as possessing specific attributes of

Australian culture and compare it relative to other brands of beer in the market. As for our

market entry strategy, we have decided on licensing, as its advantages outweighs its

disadvantages, and the fact that its one of the most profi table modes of entry when

penetrating foreign markets.

For our pricing strategy, we have decided on pricing our products relative to South Koreas

beer market, with the inclusion of tariffs. Its priced at a standard of 4,000 WON per bottle of

Coopers Original Pale Ale, and 75,000 WON for a 24 case. However, with the

implementation of a free trade agreement, its to be expected that the tariffs for beer imports

will be alleviated and Coopers can either capitalise on this, or they can lower the price of

their beer to attract more demand for their products.

Our promotional strategys fundamentals encompasses the portrayal of our Australian

heritage, represents the brand as being willing to adapt to South Koreas culture, and

maintains the products unique characteristics of being a boutique beer. We have decided to

construct an advertisement by applying the communication adaption strategy to the South

Korean target market. It will be promoted with the use of our main marketing points such as

Australian made, Australian owned. We have also decided on an objective-and-task-

method, and the primary agency that Coopers will work alongside with (JWT Korea). Withour well-outlined launch strategy, we have included the use of Above-The-Line and Below-

The-Line strategies to promote our beer in South Korea. This is also further backed by our

on-going strategy.

To conclude, its highly evident that our strategies for transitioning into South Korea are

sound, effective, and feasible. Our target market has been outlined in detail; we have

segmented the market, undertaken a competitive analysis, positioned our strategy, decided

on a market entry strategy and pricing strategy, as well as developed a sound, elaborate and

effective promotional strategy that aims at improving our brand name, as well as our brand

loyalty. Its clear that we will go ahead with our strategy.


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Introduction

After conducting our macro environmental research analysis we have devised a market

launch strategy and a promotional plan to launch the Coopers Pale Ale and Sparkling Ale

into the South Korean beer market.

Prior to Coopers Brewery Limited launching their brand into the South Korean market, there

are certain factors that need to be addressed in order for the company to establish itself

within its fast-paced beer market. In addition to issues such as segmentation, analyses and

the market mix, for Coopers to fully commit into the launch of its products into South Korea it

must have a vast knowledge of both the product and the target country being launched into.

Coopers Brewery Limited, founded by Thomas Cooper in 1862, is a fully Australian made

and owned brewery. Currently, Coopers continues to be a family-owned business asdescendants of Thomas cooper continue to run the business. The brewery exports to over

26 countries worldwide, including USA, United Kingdom, India and Russia with its wide

range of craft beers; its famous Pale ale and sparkling ales being the forefront of their

beverages. Suitably to Coopers launching their brand in South Korea, the country boasts

itself on having a large volume of high consumers of alcohol. The countryswell-known beer

culture allows for the consumption of alcohol to have a great importance in its recreational

and business activities. With nearly 50,000,000 people currently residing in the country and

71% being of legal drinking age, it permits for a portion of our target market (25-54 year olds)

to account for 47.8% of the population. In 2011, the average alcohol consumption of Korea

per-capita was 14.8 litres making South Korea the 11th highest alcohol consumers in the

world. Economically, South Korea is one of the worlds fastest growing economies with a

nominal GDP that ranks 15th in the world and 12th in PPP (purchasing power parity) being

similar to that of Australias. Likewise its economic freedom score is 71.2 allowing for a

mostlyfree score,permitting goods and labour to move freely. In 2009, South Korea was

theeighth largest exporter andtenth largest importer in the world.

As a result of South Koreas strong drinking culture, Coopers will launch its two most

successful products, the Coopers Pale Ale and Sparkling Ale into the market. As traditional

beers are expected to dominate in the short term, the focus will be on marketing Coopers

products as an international beer; a market we believe is untouched in South Korea. The

most popular products, Coopers Pale Ale and Sparkling Ale are products that will be initially

marketed as we feel it is appropriate to continue to promote these products South Korea as

the forefront of our beverages. Both beverages, produced by Thomas Cooper in the late

1800s allow for a natural carbonation method and are still brewed in the bottle today. Whenreviewed, both brews have achieved high ratings worldwide, with the Coopers Sparkling Ale
http://www.wikipedia.org/wiki/List_of_countries_by_exportshttp://www.wikipedia.org/wiki/List_of_countries_by_importshttp://www.wikipedia.org/wiki/List_of_countries_by_importshttp://www.wikipedia.org/wiki/List_of_countries_by_exports


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achieving a 92 out of 100 rating on the Beer Advocate Magazine. Currently the Coopers

Sparkling Ale sells for $4.09 (AUD) RRP. Similar to its brand image in Australia, Coopers

will seek to emerge in the well-established market as a boutique, exclusive and international

beverage.

Target Market

A well-brewed craft beer can be targeted towards a sophisticated target market, those who

are looking for a foreign beer experience such as business men/women, retirees, and

international residents such as expatriates. In South Korea, consuming alcoholic beverages

is an essential tradition in business culture as a routine to address hierarchical respect.

The primary market we will look to target will be businessmen who are aged 30 to 59 of a

high socioeconomic status. We are targeting males specifically because they are more likely

to consume beer, and make up the majority of business workers. Finding up-to-date

numbers for information on Korean salaries is a challenge. A 2004 study (Hyo-sik 2004) tells

us when the average income was 10 million won, there was only 155,000 people earning

over 40 million won per year. But now the current average salary in South Korea is 21 million

won per year, 10 years on, the number of workers earning a high income of over 40 million

won per year has obviously increased significantly to have such an effect. But there is no

recent data to be found that tells us how much of the population earns a high salary.

The secondary target market would be the young age group around 20-29 as the legal

drinking age in South Korea is 20. Young people has the most population of who would like

to take adventure on trying new things, those are called innovators.

Since the official retirement age is 60 in South Korea (Better Policies For Better Life, 2014),

Coopers could also targeting to those aged 60 to 64 which specified to people who still in the

social circle to maintain their impression, even they retired. Those would be a small amount

group of people, but will still inspiring our brand image, and those may engendered strongbrand loyalty. Thus, we will pat attention on this market as well.


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Segmentation

For segmentation, Coopers is adopting a domain-specific bases strategy. Through the

customer attitude, personality, social needs and habits within the country. Coopers is

segmenting a luxury market in Australia; according to the South Korea Macro-Environmental

research report, it discovered they had a similar economic condition with Australia. Hence,

we could adopt similar marketing segmentation. It is minimizing the risk if the company

implementing the conversant strategy, especially expanding to a new market.

From previous research, it was found that South Korea has a strong power of purchasing,

low unemployment rate and large amounts of disposal income indicates that the people who

are under labour force can afford high-end craft beer. As moving into 30s, people start to

have a steady job, they desire more needs on esteem (Maslows hierarchy of needs), that

being status, superiority and prestige; so that they start to prefer things more fancy instead

of inexpensive goods. Moreover, employees have more active social life within their

business circles, especially in Korea, the culture is an enormous factor of drinking, such as

drinking being the way of building up relationships. Drinking craft beer is also a way to

identity their hierarchy, which is important aspects of doing business.

Innovators would be focusing on the excitement and freshness of the brand. They are

always fashionable, and choosing things that are popular, even leading the way. They will be

attracted by the design of the product, the fact that it is a foreign import product, as well as

the brand image. Even though Coopers is targeting the high-end class, the price would not

be way too unreasonable. Once there are more customers Coopers can draw in this

segment - it will become a kind of fashion of luxuries other than just a beer.

Brand loyalty customer is the segment that company would seek to target over time, and

never leave them, that being, maintaining to provide the product they are always purchasing.

People who are committed, a strong brand loyalty is repeat purchasing, regardless the price

and the brand would always be their first priority. Coopers entering the South Korea market

would also be beneficial for Australian expatriates. A product they familiar with could make

they feel like home, so that more would like to purchase own country brand or the brand they

were used to.


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Competitive Analysis

The South Korean beer market has been controlled by the duopoly of Hite-Jinro Oriental

Brewery for decades. The market it estimated to be worth around 4 trillion won, and Oriental

Brewery accounts for around 55% of local production while Hite-Jinro accounts for almost all

of the remaining 45% (Hyuk-jae 2013). However, this duopoly hasnt satisfied Korean

consumers, as many have been critical of domestic beers for being extremely bland and

boring (The Economist 2012). The dominance of the two breweries stems from the

significant increase in price from domestic beers (1,750 won) to imported beers (as much as

12,000 won). The disparity in price is caused by the tax levels on imported beer, and as

argued in The Economist (2012) rice and corn are being used as cheaper ingredients in

place of malt in the domestic beers. Despite the higher price tags, according to Salmon

(2013) consumers are coming around and embracing craft beers from foreign countries, andare willing to pay the higher costs because they are that much of an improvement over the

domestic beers; imports are surging as a result (Hyuk-jae 2013). It should be noted that

Oriental Brewery now brews international beers such as Hoegaarden and Budweiser on site

in its South Korean brewery to try to satisfy this trend.

Table 1.1 the following table lists beers available in South Korea.

Parent Company Beer Brand Country of

Origin

Cost per 355ml (where

available)

Oriental Brewery

Co.

OB Golden Lager South Korea 1,750*Cass Fresh South Korea 1,750*Cass Lite South Korea 1,750*Cass Red South Korea 1,750*Cass Lemon South Korea 1,750*Cafri South Korea 1,750*Budweiser USA 2,200*Bud ICE USA 2,200*Hoegaarden Belgium 3,050*Stella artois Belgium

Leffe Belgium


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Becks German

Lwenbru German

Suntory The Premium

Malts

Japan

Corona Mexico

Hite-Jinro Co.

Hite Pale Ale South Korea 1,750*Max South Korea 1,750*Dry d South Korea

S South Korea

Black Beer Stout South Korea

Hite Lager Beer South Korea 1,750*

Prime Draft South Korea

J Draft South Korea

Queens Ale Blonde South Korea 2,450**Queens Ale Bitter South Korea 2,650**Kirin Japan 2,900*Kronenbourg 1664 France

Lotte Liquor

Kloud South Korea 1,950*7Brau

India Pale Ale South Korea 2,600***

7Brau Pilsner South Korea

7Brau Stout South Korea

Jespi

Jespi Pilsner South Korea

Jespi Pale Ale South Korea

Jespi Strong Ale South Korea

Jespi Stout South Korea

Independent

Heineken Netherlands 2,900 *


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Asahi Japan 3,000 *

Guinness Ireland 2,800 *

Monteiths Summer Ale New Zealand 8,000 *****

Hitachino Nest White

Ale

Japan 6,900 ****

Hitachino Nest

Espresso Stout

Japan 8,900 ****

Duvel Golden Ale Belgium 5,500 ****

Delirium Tremens Belgium 12,000 *****

Duchesse de

Bourgogne Flanders

Red Ale

Belgium 12,000 *****

Fullers London Pride

Premium Ale

England 9,500 *****

Barney Flats Oatmeal

Stout

USA 8,000 *****

*Prices from Korean Beer Prices 2011.

**Prices from Maskey 2013.

***Prices from Oh, J 2012.

****Prices from Young-Jin, K 2013.

*****Prices from Velasquez, A 2013 (Restaurant prices).

This table tells us that all the domestic brands are priced at the same level and are very

cheap. Foreign beers that are sold by either of Koreas big two brewing companies, while

more a little expensive than the domestic beers, are much cheaper than foreign beers that

are imported independently. The prices listed in the table are supermarket prices, which are

pretty cheap generally around 1,800-4,000 won, however, beer prices in restaurants, bars

and the like are approximately double or sometimes triple the supermarket price, ranging

8,000-16,000 won.


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Positioning Strategy

Coopers will use the Foreign Consumer Culture Positioning strategy, which will showcase

the brand as possessing specific attributes of Australian culture (Kotabe, et al. 2014, pp. 246)

and we will actively promote our Australianism to our advantage. As pointed out in the

competitive analysis, the domestic beer in South Korea is recognised as both cheap and

bland, Coopers will be positioned as both premium in price and in quality, shown in figure 1.2.

Figure 1.2

As you can see, Coopers in its own lane when compared to the Korean beers, however,

when compared with other foreign beer brands, shown in figure 1.3, the competition is a lot

closer and our position narrower, as these beers are also priced higher and recognised as

good quality. However our distinct position here is that we would be the only Australian beer

widely available throughout South Korea. Currently, there is only one place in the whole of

South Korea that sells Australian beer and that is Tonys Aussie Bar and Bistro Itaewon, who

imports his own stock of VB, XXXX, Pure Blonde and Fosters. Australian beer cant be found

anywhere else in South Korea and Coopers will fill this gap and be available in bars and

restaurants throughout South Korea.


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Figure 1.3

The Marketing Mix

Market Entry Strategy

When choosing the mode of entry when a company decides to go overseas looking to

expand, its crucial to note the medium of entry, the timing of entry, as well as evaluating the

market size and growth, the political and economic risks associated with entering the country,

government regulations, and the competitive environment. Furthermore, if unsuccessful, its

important to evaluate the reasons and risks for exiting the market. For Coopers, we believelicensing as a mode of entry is the most fitting. This will be evaluated further below.

Licensing

Licensing is a very profitable means of penetrating foreign markets. Defined, its a

contractual transaction where the organisation, the licensor, offers some proprietary assets

to a foreign organisation, the licensee, in exchange for royalty fees (Kotabe et al. 2014, pp.

270). The method of licensing allows the company in the host country, that is, in South

Korea, to use the patents, trademarks and techniques for production in return for a royaltyfee paid to the licensor, which in this case, is Coopers.


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The advantages and disadvantages of licensing will be briefed below in a table:

Advantages Disadvantages

Very profitable means of

penetrating foreign markets

Not exceptionally demanding on

the organisations resources

Potential to provide a large

return on investment

Low-commitment mode of entry

Grants the licensor the ability to

navigate around import barriers

Grants access to technologies

Preferred by local governments

over other market entry

strategies

Lower exposure to political and

economic instability

Allows the licensor to define the

leading technology standard

Revenue from licensing may

not outweigh that of other entry

modes such as exporting

Lack of enthusiasm and work

ethic from the licensee will limit

sale potential of the product

Potential risk of tarnishing

corporate image since licensee

bears the trademark and makes

a misjudged move

Could potentially nurture the

creation of a future competitor

when conflicts arise; for

example, if the license expires,

the licensee can leverage the

skills they had acquired during

the time the license was active

Lack of control

As outlined above, the best market entry strategy for Coopers to enter is licensing. Its

advantages outweighs its disadvantages, and its one of the most profitable modes of entry

when penetrating foreign markets. However, the relationship between the licensor andlicensee must continue without problems to avoid the potential rise of a future competitor.

Pricing Strategy

Pricing is important to the marketing mix strategies for Coopers, as it is one of the first

features of a product that a consumer will base their buying decision on. It tells the consumer

the value of the product, and if its worth purchasing the product. However, Coopers must

implement an effective pricing strategy where the price of its product, Coopers-made beer,

wont be too expensive, and contains value in which the customer will be satisfied. The


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pricing strategy must also take into account the economic conditions of the country (South

Korea), which includes the markets demand and supply.

When pricing our Coopers beer, we need to take into account the tariffs of South Korea, the

import quotas and barriers, freight and insurance costs and other overhead costs that maybe incurred. Using Coopers Pale Ale as an example of one of the many product ranges we

will deliver to South Korea, we will calculate the prices accordingly. In Australia, the price of

a bottle of a Coopers Pale Ale is $4.09 AUD. The details of the product are shown below.

Product

details

Standard

drinks

Alcohol

content

Energy Price

Coopers

Original PaleAle

1.3 / 375 ML 4.5% 146KJ/100ML $4.09 AUD

(Dan Murphys)

Table 1.2The product details of Coopers Original Pale Ale (Coopers 2014) and the price

of local Australian-priced Coopers Original Pale Ale (Dan Murphys 2014)

As stated by the World Trade Organisation, the current tariff on exporting beer to South

Korea, prior to the Free Trade Agreement, is set at 30% of the cost, insurance and freight

value based on the current domestic value at date of export (World Trade Organisation

2014). 30% of the current value ($4.09) is 1,164 WON, which is the value of the tariff

imposed on exports to South Korea on beer.

This means that the total price (without taking into account of importer profitability) is

3,880.26 WON (conversion of $4.09, the price of an Original Pale Ale as of 02 June 2014),

added by the imposed tariffs (30% of $4.09) which is 1,164 WON equals to a total of 5,044

WON per bottle of Original Pale Ale.

We expect Coopers to export in bulk, and a case of 24 at Dan Mu rphys cost $44.95,

equalling to $1.87 a bottle. Using the same calculations, a bottle of Coopers Original PaleAle would cost 1,774 WON in South Korea without tariffs, and with tariffs, it would cost 2,306

WON per bottle of Original Pale Ale.

Prices Without tariffs Tariff Total price

Single 3880.26 WON 1,164 WON 5,044 WON

Bulk 1,774 WON 532 WON 2,306 WON

Taking into account the local prices of lager and beer, from our competitive analysis, whichcosts as little as 1,750 WON and as much as 12,000 WON, in addition to the fact that were


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a high-end beer, we believe that the price of the product in South Korea should equal to

4,000 WON, giving importers a cut of profits, as well as Coopers for each bottle they sell (or

bulk, then it that case, price it at 75,000 WON if selling at a case of 24).

Prices of exported beer(final)

Single Bulk

Coopers Original Pale

Ale

4,000 WON per bottle 75,000 WON per 24 case

However, tariffs on exporting beer to South Korea will be removed by January 1 stof 2020,

allowing duty free beer to be exported. In this case, Coopers can keep the same price for a

larger profit cut, or to reduce the price of their Coopers Original Pale Ale to attract demand to

their product.

Choosing the most effective pricing strategy can be difficult for most businesses. Some may

opt for a cost-based approach to pricing as some business like to maintain their profitability

in the long-run. However this strategy may be detrimental as high prices may deter

customers. For Coopers, the pricing strategy they should implement in South Korea is the

competition-based pricing strategy at first, as South Korean beer is already a large market.

By setting prices according to their direct competitors, Coopers has a chance to compete

with them. After a stabilised corporate image in the country and a steady flow of revenue,Coopers has the option of changing its pricing strategy to a customer value-based pricing

strategy, where they can commence market research and take into account the customers

perception of value and match those interests.

The Product

The products that will be placed in South Korea initially will be the Coopers Pale Ale and

Coopers Sparkling Ale. These two products show significant popularity among other

international consumers of the Coopers range and also have distinctive features that makethem unique. The reason we have chosen to use an Ale instead of a more well know

Larger is to attract a more emerging market of international boutique beer instead of the

well established beer drinking market with traditional brands like takju and soju beverages.

These products are expected to dominate the beer drinking market in the short term and

would make it hard for an emerging product like Coopers to compete.

We will still incorporate many of the original marketing points in Australia making the

products unique and mysterious to the target market. The marketing strategies include:

Hand Made by the Coopers Family and No Additives or Preservatives which is written on


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the label of both products. Therefore although English isnt the first spoken language in the

South Korea the labelling will stay the same as if it were in Australia. The reason for this is to

maintain the Coopers image on an international scale showing aspects of a family owned

Australian business. More over the products will be recognized by the international crowd

who have consumed Coopers before. However there will have to be some minor changes to

the products labelling to comply with the Korean Food and Drug administration including a

separate label on the back written in Korean outlining where the product is from and other

specifications that are required by international products. The visual image that Coopers

gives is important to maintain and be consistent with. This creates a reputation and brand

integrity to South Korea which in itself can market the product.

Marketing points like Brewed in the bottle and the dark side of the family cause the

product to be seen as unusual and different. By presenting our product like this we will be

able to differentiate it from all other products making it desirable for people who are willing to

try something different. The Coopers range although becoming a more regularly consumed

in Australia, is stated of as a boutique craft beer that seemed very different from normal

beers. This strategy will be mirrored in South Korea by using the same marketing points but

however being more specific using the higher class.

Although multinational players are expected to remain on a small scale in the short term,

their presence in South Korea as consumers become more aware of imported products andtheir tastes evolve will become bigger. By entering the market at this stage with Coopers

beer we are able to enter the emerging market that has not been fully established but is

growing. This reflects back to the products image and integrity whereby we are keeping the

originality and marketing it as an Australian product in South Korea.

Distribution Strategy

To affectively distribute coopers beer in an efficient way, our strategy will be to directly place

the product to our target market. The high-end section of South Korea has a close relation to

alcohol drinking in a business and social manner. Therefore the product will be distributed in

pubs and bars that attract these sorts of people.

Places like Hongdae or Gangnam are very well suited to launch the product because they

are wealthy areas therefore attract our target market. With the use of posters and other

advertisement, the products will be placed at specific areas where there is an influence of

western world and people are whiling to try different international brands. The reason being

specific about more wealthy areas is because international products are more welcomed and


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accepted as pose to less wealthy areas where traditional brands and tastes still maintain a

very strong influence.

Bars and pubs with-in cities will be our main gateway to introduce the product, as the Korean

culture of drinking will be beneficial to the distribution. Drinking culture plays a largeinfluence on the social and business world and therefore will make the Coopers products

more desirable. However by placing coopers in these areas we will also attract a foreign

market including Australians. Foreigners in South Korea as a majority come for business

therefore usually stay around major cities hence the placement of coopers in these areas.

Major sporting events and large social occasions will be another area where we will place

the Coopers products. The aim will be to expand the awareness of the Coopers brand and

therefore widen the market. By being specific with our placement and distribution, we are

limiting the risk of the product being disregarded or rejected.

Using the existing cultural tendencies to our advantage, Coopers will be placed to the higher

working class where drinking plays are large influence. Moreover there is far more

acceptance and interest in international products therefore will be more whiling to try

Coopers beer.

Promotional Strategy

For Coopers, it is fundamental to have a promotional strategy that not only portrays our

Australian heritage but also represents the brand as being willing to adapt to South Koreas

culture whilst, also maintaining the products unique characteristics of being a boutique beer.

Originally, Coopers advertisements have been known to use hilarity and comparative

advertising within Australia. Although these methods have been known to be successful

marketing methods in western cultures, it is precarious to assume that this too would be as

successful within South Korea whose culture is relatively different from Australias. This is

primarily due to the predominant nature of the language barrier, therefore, many jokes and

remarks used in Coopers advertisements within Australia may potentially not be translated

or interpreted in the same way that a western market would understand them.

The best solution is to construct an advertisement by applying the communication adaptation

strategy to the South Korean target market. Coopers Pale Ale and Coopers Sparkling Ale

will be promoted with slogans that advertise our main marketing points, Australian made,

Australian owned and Handmade by the Coopers family estimated 1862. South Koreas

culture places high emphasis on familial values, relationships and collectivism and by

representing to the South Korean market that Coopers also believes in the importance offamily, we hope this will allow a sense of understanding between Coopers and the South


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Korean market and also form a sense of brand loyalty within the near future. Alongside this,

the bottle itself will market the No Additives or Preservatives perk of Coopers beers.

International Advertising Budget

Objective-and-task-method

Advantages Disadvantages

Most appealing and commonly

used method amongst marketing

communicators.

Relates the sales objectives and

advertising budget together.

Self-oriented, does not take into

account competitors actions.

The international advertising budget for Coopers will be produced initially through the

objective-and-task method. This is due to the fact that this method coordinates the sales

objectives we wish to achieve in South Korea in order to determine an appropriate

advertising budget. This method has been popular amongst marketing communicators as it

persuades marketers to recognise the value and conditions of the foreign market that is

being entered (Kotabe, et al. 2014, pp. 358). By applying this method before and during the

commencement of our South Korean promotions, it will allow a more thorough

understanding of the South Korean market and this new knowledge may be used with future

promotional methods.

Once Coopers has a relatively stable promotional strategy, the competitive parity method

may be used after approximately three months to six months of promotions in order apply a

benchmark in comparison towards Coopers sales and the sale of domestic beers such as

Hite and Oriental Beers. This will allow Coopers to take into account its competitors and

appropriately understand its position in the market to determine the ideal budget for on-goingpromotions.

The primary advertising agency that Coopers will work alongside with will be JWT Korea.

JWT is truly acknowledged on a global scale with over 200 offices in 90 countries and more

than 150 years of advertising experience. Coopers places great faith in the experience of

JWT to provide promotional success in South Korea. JWTs offices are present in dominant

countries such as China, Japan, Singapore, Australia, New Zealand and more which will

allow Coopers to further advertise itself within Asia. The South Korean branch of JWT is

small yet prominent due to its primary location in the heart of Seoul with 100 diligent


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17

employees. JWT Korea has already previously worked and is currently working with

international companies such as The North Face and Berocca, both are reputable brands

that have sustained themselves within South Korea with the aid of JWT Korea (JWT 2014).

Also, with JWT having offices located in Australia already, communication between Australia

and South Korea will be much more efficient as communication networks have already been

established as opposed to choosing an advertising agency that is only solely located in

South Korea.

The Launch Strategy

Above-The-Line:

- Magazine Print Ads: To establish Coopers brand with the upper-class target market, adswill be placed in relative magazines such as Fortune Koreaand GQ Korea. Coopers will also

advertise in the Korean Airlines in-flight magazine, SkyShop. By placing print ads in

magazines that have the same target market as Coopers, it will allow an effective reach

towards the consumers desired.

- Posters in Bars and Clubs: The primary locations of bars and clubs we will aim to supply

Coopers beers in will be in Itaewon, Apgujeong-dong, Gangnam and Hongdae. Bars and

clubs in Itaewon and Apgujeong-dong will be supplied to due to the exclusivity and upscale

nature of the areas which will attract our target market. Gangnam and Hongdae are known

to be the centres of nightlife in South Korea therefore, it is critically ideal to promote in these

areas where alcohol consumption is high. Posters will be placed at the entrance of the bars

and clubs where Coopers is supplied and even in the form of mini-poster stands and

coasters located on the bar itself.

Below-The-Line:

- Samples: Samples will be handed out at the Lotte Duty Free liquor stores located in

Incheon airport. These samples will be handed out by Australian models and promoters in

order to prove Coopers authenticity as an international beer. By providing samples at our

initial launch, potential consumers can have an early taste for the product and this may

increase word of mouth promotions and Coopers presence prior toward entering the

market.

- Flyers: Flyers will be handed out along with the samples given and also situated in

business lounges and frequent flyer lounges where our target market will be primarily

located. These flyers will have a QR code which individuals may scan and be taken to the


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18

Coopers website which will be translated into Hangul. From there, individuals will be able to

find out more about Coopers products and history in order to closely identify with the brand.

- Trade Shows: Attending trade shows such as the Seoul International Wine and Spirits

Expo will allow Coopers to directly market Coopers Pale Ale and Coopers Sparkling Ale

towards prospective consumers and businesses that they could potentially cooperate with in

the future.

The On-Going Strategy

Above-The-Line:- Magazine Print Ad continuation: Coopers beer range that is available in Australia is

extensive however, in South Korea, only the Pale Ale and Sparkling Ale will be supplied

initially. As Coopers continues to grow within South Korea and more of the product range is

imported, continuous magazine advertisements are necessary in order to promote and gain

recognition for the new beers being brought into the South Korean beer market.

- Sponsorship of the Kolon Korea Open: The Kolon Korea Open is a popular sporting

event that is majorly watched by our target market therefore; Coopers will be able to promoteitself towards a wider majority of the market as this event is broadcasted nation-wide.

Below-The-Line:

- Sponsoring and supplying to business events: As alcohol consumption is very popular

within South Korean business culture, by sponsoring business events such as corporate

meetings or conventions, Coopers will be able to personally engage and communicate with

its ideal consumers on a much more personal level.

- Special Events: By increasing both above-the-line and below-the-line promotions around

the time of special events such as Club Day held in Hongdae where alcohol consumption is

known to be heightened, this can increase Coopers brand awareness and potentially even

increase sales as consumers would be known to be more willing to try new and unique

products during these special events.


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19

Conclusion

From conducting a macro environmental analysis and now devising a market launch strategy,

its highly evident that our strategies for transitioning into South Korea are sound, effective,

and feasible. Our target market has been outlined in detail; we have segmented the market,

undertaken a competitive analysis, positioned our product in the market, decided on a

market entry strategy and pricing strategy as well as developed a sound, elaborate and

effective promotional strategy that aims at improving our brand name, as well as our loyalty.

Its clear that we will go ahead with our strategy.


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20

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