Lion Nathan's South Korea Market Entry: Beverage Promotion Report

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This report examines Lion Nathan's strategy to promote its milk beverages in South Korea, leveraging the recent free trade agreement. It outlines various marketing techniques such as personal selling, direct marketing, advertising, sales promotion, and public relations, along with the roles of key personnel like the sales and marketing managers. The report emphasizes the need for a Korean speaker and explores potential partnerships to maximize cost-effectiveness. It also covers the use of Korean media for advertising and the cultural aspects Lion Nathan needs to consider, including language and food preferences. The analysis highlights the importance of coordinated promotional activities, team structures, and the overall objective of enhancing milk beverage marketing in the South Korean market. The report concludes with an analysis of the company's approach to the event and provides recommendations for future marketing endeavors.
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Planning the Promotional Activities...........................................................................................1
PART 2............................................................................................................................................3
Co-ordinating the promotional activities....................................................................................3
Need of Korean Speaker.............................................................................................................4
Networks other than Austrade.....................................................................................................4
Companies that can maximise the cost paid to Austrade. ..........................................................4
Type of Korean Media to promote ............................................................................................4
Cultural aspects Lion need to follow..........................................................................................5
PART 3............................................................................................................................................5
Analysis on the whole report.......................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
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INTRODUCTION
A food and beverage company, Lion Nathan is participating in an event in South Korea
for the promotion of one of their product where it lacks in. Australia has recently executed a free
trade agreement programme with South Korea (Baeg and So, 2013). The report is about the ways
and techniques, Lion Nathan can promote the milk beverages because they are unable to do the
marketing of them properly. It will also include the responsible authorities with their roles and
regulations towards the company.
PART 1
Planning the Promotional Activities
Lion Nathan, an Australian company deals with food and beverages. It is employing a
large number of employees as well. 6,700 people are already part of the Lion family. Australia
has recently made a free trade agreement with South Korea. An upcoming market event is going
to occur in Seoul, South Korea. The report is about what the methods and techniques Lion can
use to promote their milk beverages in that event. It is a huge company but still lacks marketing
in milk beverages. There are various methods by which a company can promote their product.
The analysis in this report is about the most suitable technique which can prove fruitful for the
Lion Nathan and can help it to promote the marketing of milk beverages, they deal with. Few of
them are discussed as below:
Personal Selling
It can also be considered as telemarketing. Mainly two skills can help in this and they are
interpersonal skills and effective communication skills. These are the two main factors one need
for successful personal selling. Appropriate knowledge of the product also matters a lot because
when it has to be presented in front of customers, the seller itself should know the product in
detail so that he/she will be able to explain it to the customer. The seller must be capable enough
to deal with the whole process. They must possess the capability to present products to people,
also can be able to manipulate and convince them so as buy their product in a way that customers
get attracted towards the product (Taylor, 2012).
The Lion Nathan can organise their stalls in the event for promoting the milk beverages.
As mostly seen in any event, one can never be sure to reach till the doors of the customers, so
Lion can organise various stalls and the sales persons for sitting over it. They can interact with
the people there and can tell them about the effectiveness of their milk products and beverages.
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Direct Marketing
This method includes all the ways by which direct marketing can be done. It can be
considered as sending official letters, pamphlets, e-mails etc. Pamphlets and brochures can also
be involved as a means of advertisement to target the client's attention. It is a straight forward
process. It allows the non-profit bodies and the businesses to interact direct with the customers.
Advertising
It is an act of representation and promotion of the idea, products and services to the target
audience. This all is done by an identified sponsor. It can also be done by various other ways
such as by means of advertising in newspapers, pamphlets, television etc. The sponsor has the
power to make the means of advertisement as attractive as they can which can impress the clients
in one go.
The Lion Nathan can use this concept also by means of advertising the quality and detail
of the milk-drinks through LCD's. It can prove helpful as everyone present there can be able to
see the specific presentation on the LCD. It can showcase the effectiveness and appropriateness
of the milk beverages. The company can also include their sources of milk and that too in detail
that the clients can develop trust on them and the beverages as well (Baeg and So, 2013).
Sales Promotion
This behaves as a bridge between the personal selling and advertising. It acts so to
coordinate the efforts of both the areas. The media as well as non-media communication are
being employed for a former determined, specific time to maximise the demand of the consumer.
Also, to stimulate the demand in the market and improve the availability of the product.
The company can use this concept as their agents can manipulate people there in the
event by various means. Their agents should be capable enough to manipulate the consumers and
explain them in detail the appropriateness of their milk beverages.
Public Relations
This can also be considered as publicity of the products. It can include both paid and non-
paid ways. This can be done by sending the releases for printing purposes and then broadcasting
it in the media. Usually it is done by paid means. Publicity can be done by various means as by
using social media, making advertisements for the promotions etc. Social media can be a non-
paid way of promoting. It can prove as a very efficient method of publicity as well as a huge
number of people have access to these websites.
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The Lion Nathan can use this way also for promotion of their milk beverages. The agents
of the company can distribute pamphlets in the event. As the event is assumed to be full of
crowd, so pamphlets can be given to so many people They can insist people there to sign in on
their specific web page or on their page on any social networking website. This can help the
customers in having a clear view of the products and the specific sources (Terpstra, Foley and
Sarathy, 2012).
In the event, the Sales and Marketing manager, as well as all the higher authorities and
the whole staff must be present. Sales manager plays an important role as the roles and
responsibilities are been guided by the manager itself. As a staff member, it is required for me to
be present there from the beginning of the event. Various stalls have to be organised for the
agents that will advertise the product to the people. Lion Nathan also need to hire Korean
speaking staff so that they can act as a mediator and the company do not face any trouble in
understanding their local language. The overall objective of participating in this event would be
the promotion of the milk beverages, as the Lion Nathan somewhere lacks in the marketing of
these. So, its focus is on promoting the effectiveness and appropriateness of those beverages.
PART 2
Co-ordinating the promotional activities
The teams included contain no more than three members. There are four specific teams
made in Lion Nathan. Each team has different responsibilities. These are discussed as under:
Sales Manager
The sales manager is responsible for covering the targets of the sales of Lion Nathan. The
manager can do all this by proper planning (Okazaki and Taylor, 2013). He can design
appropriate strategies and methods that can be used for achieving the targets. He is the one who
maps the internal potential of the customers. Always looking forward for new opportunities, the
sales manager has huge responsibility of managing all the sales. At the Lion Nathan, the focus of
the sales manager is to motivate the team members and also to provide proper appreciation to the
employees so that they can stay focused and motivated.
Marketing Manager
The marketing manager at the Lion Nathan aims at implementation on the short term and
long term strategies of the specific employer. Along with this, the manager should focus on the
development of the particular brand. The company is facing issues with the marketing of the
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milk beverages. So, a particular responsibility is given to the manager that he should continue its
strategies and if needed, make changes in it so that the promotion can be done in a better way.
Need of Korean Speaker
The Lion Nathan must be requiring a Korean speaker. As it is an Australian company and
is participating in an event in South Korea, they need to do all the presentation in a manner that
the people there can be able to understand their intention behind their ideas. If the people have
idea about what the Lion Nathan wants, then only they can think about it. Communication is very
important between two parties to exchange their ideas and views. So, a Korean speaker will be
required in the whole communication process (Papadopoulos and Heslop, 2014).
Networks other than Austrade
Yes, the Lion Nathan has a network other than Austrade and that is in New Zealand.
Austrade is considered as the Australian government. All over Australia and New Zealand, it is a
family of overall 6,700 people. In Australia, the company deals with alcohol beverages, milk
beverages, cheese, yogurt etc. whereas the New Zealand store deals with all the same stuff
except the milk beverages. The Australian store also lacks somewhere in the marketing of milk
beverages.
Companies that can maximise the cost paid to Austrade.
The Lion Nathan can involve with Murray Goulburn Co-operative. As it is an agricultural
cooperative that has been formed from a group of dairy farms, it can support the Lion group a
lot. Already the company is lacking in the marketing of the milk beverages, so it can change the
source also. The Lion group can take the milk from Murray Goulburn Cooperative. It has various
number of manufacturing plants throughout the world. So, the Lion Nathan can take support
from it and it can prove very beneficial as well for them. Yes, it would be a better idea to stay
connected with the company as if Lion makes it a source for all the milk beverages, they have to
stay connected. If these will bring positive result for the Lion Nathan, then the company is ready
to capitalise on these ideas (Massari and Ruberti, 2013).
Type of Korean Media to promote
The Lion Nathan can take use of any media to promote the product and the new ways in
South Korea. The company can make advertisements on the televisions and on the social
networking sites. The best way it can promote it is by the means of these social networking
websites and by television. The television channels it can use are KBS 1TV, KBS2TV, SBS,
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EBS and MBC. With the help of these channels, all the matter will be translated in Korean will
help listeners to understand properly about benefits of the product.
Cultural aspects Lion need to follow
The following are the cultural aspects that the company need to address. These are
discussed as below.
While considering the language, the Korean language is called Hangeul. It will be tough for them
to learn the proper language, but they can take help of the mediators. While coming to the food,
the company may not deal with any issues regarding the food. They mostly prepare cabbage and
Kimchi is the staple of the actual Korean diet. Kimchi is the pickled cabbage. It can be
considered as a change for the company.
PART 3
Analysis on the whole report
Australia has executed an event in South Korea, where the Lion Nathan wants to take the
benefit of the free trade agreement. The teams are made to participate in the event and every
team has no more than three members. There are various methods and techniques by which Lion
group can promote their milk beverages as they somewhere lack in the marketing of it (Baeg and
So, 2013). They can advertise the appropriateness of the product in the event through various
means, either by sitting at stalls or by displaying the whole process through LCD's. Korean
speaker must be hired to translate their ideas to the public during the event. The Lion Nathan has
also expanded to New Zealand. It can involve with Murray Goulburn Co-operative also and it
can prove very beneficial for them. It is so because the company can provide the sources of milk
better than any other because it deals with dairy farms itself. It can help the company to improve
the production of the milk beverages and thus increasing the overall profit rate.
CONCLUSION
It has been concluded from the report that the Lion Nathan is participating in an event in
South Korea for promoting their milk beverages. It is so because the company somewhere lacks
in the marketing of them. They can advertise it on different stalls there and convince people and
make them aware about the quality of the product. The company has also expanded to New
Zealand. It can take support from Murray Goulburn Co-operative also for improving the overall
production and marketing of the milk beverages. The overall goal is about the marketing and
sales of the milk beverages.
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REFERENCES
Books and Journals
Baeg, I. H. and So, S. H., 2013. The world ginseng market and the ginseng (Korea). Journal of
ginseng research. 37(1). p.1.
Czinkota, M. R. and Ronkainen, I. A., 2013. International marketing. Cengage Learning.
Huang, R. and Sarigöllü, E., 2014. How brand awareness relates to market outcome, brand
equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-
132). Springer New York.
Massari, S. and Ruberti, M., 2013. Rare earth elements as critical raw materials: Focus on
international markets and future strategies. Resources Policy. 38(1). pp.36-43.
Massari, S. and Ruberti, M., 2013. Rare earth elements as critical raw materials: Focus on
international markets and future strategies. Resources Policy. 38(1). pp.36-43.
Okazaki, S. and Taylor, C. R., 2013. Social media and international advertising: theoretical
challenges and future directions. International marketing review. 30(1). pp.56-71.
Paliwoda, S. and Thomas, M., 2013. International marketing. Routledge.
Papadopoulos, N. and Heslop, L. A., 2014. Product-country images: Impact and role in
international marketing. Routledge.
Taylor, D., 2012. Global software: Developing applications for the international market.
Springer Science & Business Media.
Terpstra, V., Foley, J. and Sarathy, R., 2012. International marketing. Naper Press.
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