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International Marketing- Second Cup in South Korea
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Added on 2019-09-16
International Marketing- Second Cup in South Korea
Added on 2019-09-16
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International Marketing 1Second Cup in South KoreaTable of Contents1-ExecutiveSummary:22-Overview of the firm marketing the product22.1History:22.3Growth:32.4DescriptionofResources:42.5MarketPosition:42.6Missions,Vision,andGoals:52.7SecondCupProducts&Services:52.8 Second Cup Coffee Company in South Korea63.CulturalEnvironmentofSouthKorea7
3.1Introduction:73.2History:73.3Geographicalsetting:83.4Family:83.5Education:93.6SocialSetup:93.8Businesscustomsandpractices:103.9Aesthetics:103.10Sports:113.11Livingconditions:113.12Languageandcommunicationstyle:123.13 Strategic implication of this factor on the company/product chosen122
4. Second Cup Café in South Korea: Economic and Technological Environment134.1Introduction134.2 The Demographics of the Republic of South Korea134.3 The Economic Characteristics of South Korea144.4 The Mineral and Natural Resource Endowment of South Korea154.5 Science and Technology in South Korea164.6 Transport and Communication in South Korea.164.7WorkingconditionsinSouthKorea174.8 Principal Industries in South Korea, Investment Opportunities, and International Trade 174.9 Channels of Distribution and Advertising Media in South Korea174.10ImplicationsontheBusiness185.Legalandpoliticalaspects185.1Politicalsetup–structure183
5.2Legalsystems185.3Commerciallaws195.4Membershipsinregionalgroupings205.5 Strategic implication of this factor on the company/product chosen20Appendixes21References231- Executive Summary:This paper will analyze and examine the South Korean market with different aspects. We will studythe opportunity of Second Cup to enter the South Korean market. We will discuss in our paper the culturalenvironment, economic environment, and the political environment. Also, We will be providingimplications strategies to Second Cup depend on the factors we examined. Looking to the current market status of Second Cup, we found that the company has reached theglobal stage and provide its service in 22 countries. And, the mission of the company is to become leadingin the coffee product all across the world. So, that will enhance the company's ability to enter the SouthKorean market. Also, the global experience that Second Cup has would facilitate their entrance into themarket. 4
Moreover, We have studied the South Korean cultural and we have found that there is anopportunity to our products to be sold there. There are some cultural similarities between the consumerbehavior in South Korea and Canada. And, language as a second language would facilitate our mission toadopt the South Korean culture. In South Korea, The GDP per capita is $27,222. And, that reflect how South Korea's citizens enjoysa good standard of living. And according to our research, we found that South Korea is considered the high-income economy. Moreover, the advanced technology and transportations in South Korea will assist us topromote our services.The Republic of South Korea enjoys the stability in its political environment. The government isfriendly and welcoming FDI. Also, South Korea is a member of the WTO and the regimes on FDI are clearthe politics risks are small. However, We have found an opportunity for Second Cup to receive propertreatment from the host country South Korea.2-Overview of the firm marketing the product2.1 History:Second Cup is the most famous Coffee company in the Canada. It has been doing this business forthirty-five years. The company was established by the Tom Culligan and Frank O'Dea in 1975. Thecompany has been created in the capital of Canada which is Toronto. Currently, the headquarter of thecompany is in Mississauga, Ontario, Canada. The partnership of both these founders did not last long asthen, after few year Culligan was able to purchase all the O'Dea shares and become the sole owner of thecompany. He gave the rise of the business of the company and established the chain of stores in the Canada.The company under the ownership of the Culligan progress and reached 150-stores, He eventuallysold it to the Michael Bregman. Michael Bregman was not able to hold the business for long, and after justfive years he sold it to the Khalil Al-Gawad. He took the company to the public as a Chairman of thecompany twice in history. Once in 1933 and then in 2002. It shows the twist and turns in the companyownership of the Second Cup. However, this does not end here as then the company was sold to the Caraoperations limited. Currently, the company is split into two parts. One is the Canadian part which is knownas the Second Cup limited.5
The another part is the Second Cup Coffee limited as this one works at international level.Therefore, now there are two owners of this company. Stacy Mowbray leads the company which is inCanada and controls the local market. While Jim Ragas leads the company to invest internationally and itwas working efficiently good the company. Currently, the CEO 7 President of the Second Cup Limitedsince 2014 is Alix Box. The company is now progressing with the constant pace, but they have faced manychallenges in the past which are both economic and organizational challenges.2.3 Growth:Currently, the company has more than 345 stores all across the country and at international level.The company is serving in 37 regions and 22 countries. There are many international stores of the Secondcup like in UK, USA, Egypt and many other nations. The first branch of the company was opened inAugust of 1975. The company was working as small stores in the shopping mall of Canada, and the reasonto choose Kisok shopping mall was that it has more customer attraction than other malls in the city. TheVery first-day company was able to sell six blends of coffee beans. Although, it was the small start yetimpressive for the enterprise.The company within a decade progress rapidly and until the late 1980's company was growing.The chain stores were developed all across the country, and by 1989, approximately 130 cafes were underthe banner of Second Cup. Not only this the company open stores in the Shopping malls and Office Towersto attract the market segment. The company broke into the new market in Quebec in 1990's. It was the newand significant step of the business. They started growing rapidly and finally in 2003 company stepped intothe international market. After that group start progressing rapidly all across the world. There are manychallenges this company faced during its way to the International. (Second Cup, 2016)The biggest problem that this group encounters is the leadership. The direction of the businesschanged over time which causes the negative impact on the company performance. The progress becomesslow when the management of the company changed. The second challenge is the terrorist attack. When thecompany open stores in the Montreal the three stores of the company were attacked by the terrorist. Thereason behind the assault was the name "Second Cup" of the enterprise. After this incident companyreputation had decreased but they were able to gain the market segment again. (Roger, 2016)6
Competitors like Starbucks also give the tough time to the enterprise. The company tried toexplore new market segment. They went in different countries where Starbucks is not yet present.2.4 Description of Resources:Second Cup company has started making progress at international level again after the economiccrisis of 2008. Last year the company lost was massive as compared to the loss in 2015. According to thefinancial statement of the enterprise. In 2014 the net Loss of the company was $27,032,000 but in 2015 it is$1,153,000. It shows that company is currently progressing and the company assets at the end of 2015 wereof $46,485,000. The company is now generating revenue through the stores and the franchises. The corebusiness of the company is the Coffee products, and they have competitors in this business. The majorcompetitor of the company is Starbucks. The market capital of the company is $30.28 million. The makershare value of the company is $2.36. (Audit, 2016)2.5 Market Position:The current market served by the Second Cup involves the 37 regions of this world. They haveexplored new market segments which are now covering almost all part of the world. Company futures planclearly shows that they are going to launch ten new international stores to reduce the loss of the companyand generate more revenue. The company has franchise partners in more than 11 countries. (Audit, 2016)The major competitors of the company involve the Starbucks & Tim Hortons. These are two majorcompetitors of the company due to which company is struggling to take control of the international market.While on the other hand company is currently exploring new market segments which are not yet exploredby its competitors.2.6 Missions, Vision, and Goals:The leadership of the company is motivated, and they have the clear vision in front of them. Nowcompany vision is to become the leading Premium Café brand. The company business is not just bound tothe coffee products beside they have stepped into many other firms. Due to which they want to become the7
leading brand of Cafe all across the world. The mission of the company is loud and definite as they want togrow continuously at the right pace. Second Cup believes in the innovation, and they have broughtinnovation in the Coffee business. They are now planning to open new international stores. For thatpurpose, they are looking forward to creating and develop new ideas. The company is known best for thehandpicked coffee beans this is the specialty of the enterprise.The company went global and now serving worldwide. The franchise of the company is alsocommitted to the enterprise policy. They are bound to produce the high-quality product with excellentservice every day. The second cup does not compromise on the company reputation and customersatisfaction. Due to this reason business reputation is quite good in the international market. However, it isnot that good like Starbucks due to some other reasons. They are one of the longest coffee retailers in thehistory, so they have to protect their precious heritage. To do so, they are working hard to provide fresh anddelicious coffee to thousands of people each day.Second Cup has to maintain their company on the top in the international market, and for that, theyalways required highly skilled workforce. That is why the focus of the company management is not justonly on the qualification of the people but also they want to experience and high-level skills. The reasonbehind is that company is serving in all regions of worlds, so they have to make sure that every employeethey hire can handle the challenging task that they give to them.2.7 Second Cup Products & Services:This company is famously known for its Coffee Products. The major items of the Coffee are listedbelow which are available at Second Cup stores:Caramelo, Espresso Forte, French Vanilla, Hazelnut Cream, Paradiso Dark, Americano, Café Latteand CappuccinoAbove mentioned are the most popular beverages sold by Second Cup and they are producingmany more drinks. However, the Company stores do not only sell the drinks and beverages as they offer theSnack, Pastries, and Pre-Packed food items. Company hot and cold sandwiches are also very famous amongpeople. (David, 2016)8
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