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2004 Overseas Marketing Comm. Strategy Post it 2004 Overseas Marketing Comm. Strategy Post it

Contents I. II. Market analysis II. What do we have? III. SWOT analysis IV. Contents I. II. Market analysis II. What do we have? III. SWOT analysis IV. Brand identity concept V. Marketing Strategy III. IV. -Where are we? -Where are we standing? -Who is coming? -What to do -How to do

To be the best resort hotel in the world, What ‘Shilla Cheju’ has to To be the best resort hotel in the world, What ‘Shilla Cheju’ has to know first… Pa rt I 01_ Where are we? 02_ Where are we standing? 03_ Who is coming?

Where are we? 75 “Jeju Free International City Development’’ – 03. 07. 23. Korea Where are we? 75 “Jeju Free International City Development’’ – 03. 07. 23. Korea Times 70 % 65 60 Room Occupancy Rate(%) 1999 2000 2001 “ICC Jeju Links Tourism With Convention” – 03. 30. Korea Times 2002 year Source: Dept. of Tourism Promotion Room Occupancy rate Room occupancy rate of total Jeju deluxe hotels is decreasing! Ø Global security matter Ø Increase of mid-grade hotel Increase of interest in tourism business Ø Concentration of foreign investors Ø Potential in convention business Falling market! However, there is an opportunity.

Where are we standing? Actual sales of Shilla Cheju M/S in Jeju 500 400 Where are we standing? Actual sales of Shilla Cheju M/S in Jeju 500 400 300 sales(100 million) 200 100 0 2001 2002 2003 (3/4 semester) Source http: //dart. fss. or. kr Drop in actual sales , compared to 2002 Source http: //dart. fss. or. kr Losing Market Share Ø Global economic stagnation Ø Lotte has won over Shilla’s No. 1 position Ø Global security issues through aggressive marketing Drop in sales, Losing M/S !

Who’s coming? 5, 000 4, 500, 000 4, 000 3, 500, 000 3, 000 Who’s coming? 5, 000 4, 500, 000 4, 000 3, 500, 000 3, 000 2, 500, 000 2, 000 1, 500, 000 1, 000 500, 000 0 Tourism Receipts 1, 800, 000 1, 600, 000 1, 400, 000 1, 200, 000 1, 000 million won Number of tourists in Jeju 800, 000 600, 000 400, 000 200, 000 0 1999 domestic 2000 foreign 2001 2002 1999 total 2000 domestic Source: Dept. of Tourism Promotion 2001 foreign 2002 total Source: Dept. of Tourism Promotion Decreasing number of visitors and receipts Ø Global disaster - Iraqi War, SARS, bird-flu, etc. Ø Global economic stagnation Depression!

Who’s coming? 80% of East Asians China 100, 000 90, 000 80, 000 person Who’s coming? 80% of East Asians China 100, 000 90, 000 80, 000 person 70, 000 60, 000 50, 000 40, 000 30, 000 20, 000 10, 000 0 1999 2000 2001 2002 Ø Major Increase of Chinese -Korean syndrome -China’s becoming a world economic center Necessity of attracting East Asians

Who’s coming? ØOpening of Jeju International Convention Center ØIncrease of convention related visitors & Who’s coming? ØOpening of Jeju International Convention Center ØIncrease of convention related visitors & Important role of convention organizers ØConsideration: where to stay & what to do for rest Necessity of attracting convention related visitors

To find the opportunity, we need to observe the situation P ar t. I To find the opportunity, we need to observe the situation P ar t. I I 01_ What do we have?

Then, What do we have? Shilla Cheju concept Strong Weak Lotte Jeju’s best luxurious Then, What do we have? Shilla Cheju concept Strong Weak Lotte Jeju’s best luxurious resort hotel Total tourism resort complex • Luxurious: member of ILHA • Korean sentiment: Korean style facilities • Eco- friendly: green card system • Upper-class: summit conference VIP guest • Fun: theme park-like • Low brand awareness • Lack of special marketing activity : depth interview • Low brand awareness facilities • Modern: recently built (in 2000) Necessity of -overcome low brand awareness -marketing strategy foreigners

‘ P ar t. I II 01_ SWOT analysis ‘ P ar t. I II 01_ SWOT analysis

Strength Weakness • Luxurious service • Upper-class image • Eco-friendly image • Korean sentiment Strength Weakness • Luxurious service • Upper-class image • Eco-friendly image • Korean sentiment • Safety Opportunity • Low brand awareness • Lack of marketing activity Develop well representing brand identity to bring up awareness • Concentration of foreign investors • Potential in convention business • Increase of East Asian travelers • Korean Syndrome Threat • global security issues (wars & diseases) • Increase of mid-grade hotels • Global economic stagnation

Develop well representing Shilla Cheju brand identity Develop well representing Shilla Cheju brand identity

P ar t. I II 01_ Brand identity concept P ar t. I II 01_ Brand identity concept

To develop Shilla Cheju’s own brand identity, tu ic in es r nd i To develop Shilla Cheju’s own brand identity, tu ic in es r nd i m Q: What do you consider the most ? p nt re D ffe i

Shilla Cheju Luxurious service Upper-class Korean sentiment Eco-friendly Safety Communicate with ONE concept Shilla Cheju Luxurious service Upper-class Korean sentiment Eco-friendly Safety Communicate with ONE concept

Different Pictures, Same Frame. Shilla Cheju, in that place… Different Pictures, Same Frame. Shilla Cheju, in that place…

‘Shilla Cheju, in that place…’ strategy Pa rt V 01_ What to do! -marketing ‘Shilla Cheju, in that place…’ strategy Pa rt V 01_ What to do! -marketing objective 02_ How to do! -marketing strategy -target -positioning -IMC program

What to do? Marketing Objective Ø Reform Shilla Cheju brand image - Build up What to do? Marketing Objective Ø Reform Shilla Cheju brand image - Build up awareness and preference for East Asian Ø Sales up - For our overseas target

How to do? Marketing Stratgegy Strategy_01 Strategy_02 Ø Place a definite ‘Shilla…in that place’ How to do? Marketing Stratgegy Strategy_01 Strategy_02 Ø Place a definite ‘Shilla…in that place’ image Ø Build up brand royalty for regular customers providing benefit

How to do? Target Audience East Asian Bo. Bos, Convention Organizer At 30’s~50’s Professional How to do? Target Audience East Asian Bo. Bos, Convention Organizer At 30’s~50’s Professional with High Salary Core Target Female at 30’s ØComputer programmer -early-adopter, adventurous -consider view Male at 40’s ØCEO in a company -frequent business trip -free from work (relax, peace) searching hotels which meets their customers’needs Sub Target Female at 30’s Ø Convention planner -interested in esthetics & organic food -consider facility + service Specifically WHO?

How to do? Positioning International General Luxurious Domestic Reposition needed towards overseas market How to do? Positioning International General Luxurious Domestic Reposition needed towards overseas market

How to do? IMC Program [PR] “Shilla, in that place… Pam tour” ‘Shilla Cheju, How to do? IMC Program [PR] “Shilla, in that place… Pam tour” ‘Shilla Cheju, in that place…’ [Promotion] “Make your wish in Shilla” “Shilla Gallery” “Shilla Dynasty” [Advertisement] “Shilla, in that place…”

How to do? IMC Program Promotion 1 “Make Your Wish in Shilla” event • How to do? IMC Program Promotion 1 “Make Your Wish in Shilla” event • To build up the brand royalty And to reinforce Shilla Cheju’s brand image - show belief that every wish seems to come true in Shilla Cheju • Make a general wish list Considering customers’ wants - ex: Plane ticket, free-night coupon, sports car rental • Provide chances to visit again - by winning the wish lottery, make love mark on Shilla

How to do? IMC Program Promotion 2 “Shilla Gallery” • To attract foreigners and How to do? IMC Program Promotion 2 “Shilla Gallery” • To attract foreigners and to build up the brand royalty - exhibit items representing Korean culture and arts utilizing the hotel space • See, Feel, Know the cultural pride of Shilla Cheju • Unlike other exhibitions, the gallery must be harmonized within the hotel environment

How to do? IMC Program Promotion 3 “Shilla Dynasty” project • To make a How to do? IMC Program Promotion 3 “Shilla Dynasty” project • To make a synergy effect cooperating with Asian countries nearby Korea – China - Japan • Project promoting with each other → PPL → Fashion show (eco friendly, natural materials) → Fusion food festival • Connecting mileage program with selected resort hotels in 3 countries

How to do? IMC Program ‘PR’ - Shilla… In that Place Pam-tour • Invite How to do? IMC Program ‘PR’ - Shilla… In that Place Pam-tour • Invite East Asian press and convention organizers • Let them experience Shilla’s world best service and facilities • Expect media coverage and motivate convention organizers to choose Shilla, build up brand royalty as well

How to do? IMC Program ‘Advertisement’ • Concept: “Shilla, in that place…” • Story: How to do? IMC Program ‘Advertisement’ • Concept: “Shilla, in that place…” • Story: 3 or more people on the plane with each characteristics their final destination is Shilla Cheju • Make you believe Shilla is the place where your basic needs are satisfied

e! r u S re a e W Shilla Cheju, in that place… e! r u S re a e W Shilla Cheju, in that place…

Shil la C heju , in that plac e… THANK YOU! Post it 2004. Shil la C heju , in that plac e… THANK YOU! Post it 2004. 1. 30