Marketing communication (marcom) is known as the promotions element of the 4Ps in the marketing mix. Advertising, sales promotion, direct marketing, personal selling and public relations are the five main promotional mixes. Due to the competitive nature of the IT industry, the product life-cycle is short and it is vital that businesses focus on growth by targeting new markets for their existing products. Businesses are using integrated marketing communications (IMC) as it is effective at being able to attract a wide range of customers. South Korea is one of the most technologically advanced countries in Asia with two world class technology manufactures Samsung and LG. Market research is a must because of cultural and language differences, it has numerous advantages i.e. helps you understand the market, consumer’s behaviour etc. Primary research gives a better insight to the market. Quantitative data e.g. questionnaires is easy to standardized and reliable but are short and mostly includes closed questions, making it difficult to gather information that is rich in depth/detail. This problem is solved by qualitative research i.e. focus group.
This report is divided in four sections: market review, literature review, research methodology, analysis and recommendations. I have gathered information that will help with re-launching the IPad 2 in the Korean market. There are no major problems with the IPad; the main reason for the need to re-launch is the intense competition from the Samsung Galaxy tab 10.1 that has features which IPad 2 hasn’t i.e. the Galaxy tab supports the latest Adobe Flash Player. So therefore, the revised IPad 2 should be better than the competitors. Apple should perhaps consider adding value maybe by enabling MS office that would give a competitive advantage.
South Korea’s economy is blooming; GDP has accelerated from only 2.5% in 2008 to 5.7% in 2010. People are living longer because of improved medical care. Life expectancy for males and females has increased; in 2010, the life expectancy for male and female were: 76.9% and 83.6% respectively. The aging population is due to low birth rate and increasing life expectancy. (Euromonitor, 2011) This suggests that Apple should also focus on the need of the aging population and attract them to use Apple products.
Technology: The number of people using the computer has rapidly increased. More teenagers are using the internet. A computer is necessary to most teenagers’ daily lives in South Korea. South Korea also enjoys from the fastest internet connection.
Nationalisation: There is little motivation to choose an international brand over a national brand such as Samsung. Samsung being a world player reinforces Korean consumers’ confidence in the brand. (Euromonitor, 2011) Apple has a big challenge to get its share of the market. Korean consumers are reasonable so communicating effectively with the target market and connecting with them to ensure better quality is vital.
Fashion: Koreans are more fashion conscious: the recent trend is being simple yet fashionable. The consumer base for branded goods has expanded to include younger consumers in their twenties. They often save money to purchase products. (Euromonitor, 2011) This shows that price is not the only important factor when purchasing. Because young people have lower disposable income, they prefer to collect information on products they want and compare it to other alternatives so that they can get the best deal possible. This suggests Apple to provide more detailed information on the product. The information provided should be easy to understand and include main details, because Apple is charging premium price for the IPad, customers should know the functionality and the performance of the IPad are more superior to competitors.
Target group: Apple’s target customers are aged 15-64 but mainly focusing on young customers. Young adults are…