Therefore, we decided to choose the topic "InternationalMarketing Strategy of Katinat Saigon KaFe in the Korean Market in the period 2024-2026".Purpose of the reportLearn about Katinat S
INTRODUCTION TO KATINAT SAIGON KAFE JOINT STOCK
Introduction about Katinat
The Katinat Saigon Kafe brand is a coffee chain inspired by the essence of Saigon's cultural heritage and coffee appreciation style from the past, blended with modernity and fresh flavors of contemporary life Drawing inspiration from the lifestyle and coffee culture of the "Pearl of the Far East" city, Katinat Saigon Kafe represents a harmonious fusion of old-world charm, symbolized by the name Catinat, creatively adapted with a modern touch using the letter "K".
Established since early 2016, the Katinat Saigon Kafe system, under the company name Katinat Café Joint Stock Company, is known as a distinctive coffee brand in Ho Chi Minh City It is renowned not only for its delicious beverages but also for its welcoming ambiance that caters to a wide range of customers.
Katinat is also part of the rich F&B supply and ecosystem of D1-Concepts Joint Stock Company, alongside other well-known brands such as San Fu Lou, Dì Mai Restaurant, and Sorae Japanese Restaurant.
As of the end of 2021, the Katinat Saigon Kafe chain only had 10 stores This brand was not widely known in Ho Chi Minh City because they did not engage in any extensive marketing activities on media channels However, by 2022, Katinat Saigon Kafe continuously expanded, opening 23 new stores in Ho Chi Minh City and other provinces, bringing the total to 33 The store's goal is to further expand the chain to 50 stores in the future Finally, with its remarkable development, Katinat has become one of the 12 famous coffee brands in Vietnam.
Brand Vision
Katinat displays cleverness in selecting prime and bustling locations in Ho Chi Minh City, such as Dong Khoi, Nguyen Du, Ham Nghi, to attract a large number of potential customers Proud to be the convergence of quintessential ingredients from all regions of the country, Katinat brings high-class drinks, in a space that is both luxurious but also cozy and close, always overlooking a beautiful street some bustling roundabout of the city.
With a far-sighted vision, Katinat has transformed its style from a street-side appearance to a classical and elegant ambiance By optimizing the interior space of its stores, Katinat uses two main colors: vintage green and golden yellow, creating a cozy atmosphere that appeals to a wide range of customers.
Mission
Katinat relentlessly pursues its mission of bringing new flavors from renowned regions in Vietnam and around the world to its customers.
Driven by the passion to explore new tastes in regions with exceptional altitudes, humidity, and climates bestowed by nature, the artisans of Katinat embark on a journey to conquer and discover the finest ingredients Each tea bud, each coffee bean becomes an endless source of inspiration for breakthrough recipes, dedicated products that captivate the taste buds of Katinat's customers.
Katinat takes pride in delivering products with exceptional flavors, and you are an integral part of the "Journey to Conquer New Tastes." (About Us - Katinat SaigonKáfe, 2023)
Company Structure
The Katinat Kafé tea and coffee chain stores have an organizational structure based on functional divisions This organizational structure is characterized by dividing the company into departments based on their expertise in each area This allows each individual in the organization to maximize their specialization, helping the company achieve its goals more easily Additionally, with each employee possessing skills and knowledge in their respective fields, they can minimize significant errors Here are some basic departments:
Top Management: Includes the executives of the Katinat Saigon Kafe Corporation, which owns the Katinat Kafé chain stores These top-level managers are responsible for the overall business strategy and decision-making for the expansion and development of the store chain.
Marketing Department: If present, the marketing department is responsible for managing marketing activities and brand promotion for Katinat Saigon Kafe.
IT Executive: Manages and oversees information technology operations within the organization They are responsible for ensuring that systems and technologies efficiently meet business requirements and maintain security.
Finance Department: Comprising staff handling financial matters, monitoring income and expenses, managing accounting, and handling financial accounts for the store chain.
Branch Managers: Each branch of Katinat Saigon Kafe may have its own manager, responsible for the day-to-day operations and management at a specific location.
Service Captain: Team leader in charge of managing the staff at each store, including shift supervisors, servers, and kitchen staff, ensuring they meet the store's standards in serving customers.
Service Supervisor: The supervisor is responsible for supporting the managers and plays a crucial role in overseeing the daily operations of the store They oversee cleanliness, maintenance, handle unforeseen issues, and address any complaints or inquiries from customers.
Service Staff: Includes employees working at the coffee preparation counter,serving customers, and those working in the kitchen to prepare drinks and food items.
Core values
One of the core values of Katinat Kafé is continuous innovation and product improvement Katinat aims to cater to customers and ensure customer satisfaction as its top priority Therefore, when visiting Katinat, customers will experience a diverse range of drinks, from traditional to specialty beverages that can serve a large number of customers based on their specific preferences.
Katinat always listens and understands customers' desires wisely This demonstrates that the store has transformed the entire store system into a modern style.
Lastly, the ultimate core value of Katinat is always respecting and providing the best working conditions for its employees The store helps its staff gain more experience and opportunities for personal development, always maintaining fairness and impartiality in treatment.
Commitment
Commitment to product quality:Katinat Kafe commits to providing high-quality coffee and beverages to customers With unique and distinct brewing formulas, coupled with an experienced team of baristas, customers can truly experience the most delightful flavors.
Commitment to customer dedication: Katinat Kafé is dedicated to prioritizing the needs and desires of customers, offering excellent customer service and creating a comfortable and friendly environment to foster loyal customers.
Commitment to innovation: Katinat continuously explores new flavors to create a distinctive and appealing experience that captivates customers.
Products of Katinat
The diverse menu of Katinat offers more than 40 types of beverages, including coffee, smoothies, yogurt, fruit teas, milk teas, and various toppings and accompanying cakes Most of the drinks in the shop cater to all tastes due to their delicious flavors.
The favorite items in the shop are the milk teas, with prices ranging from 45,000 to 60,000 Vietnamese dong Particularly popular among young people are the "lychee milk tea" and "lai milk tea." Additionally, the smoothies are also highly favored, likely because of the refreshing sensation of the crushed ice melting in one's mouth, giving a feeling similar to enjoying an ice cream while still being a refreshing beverage.
Coffee, being the soul of the shop, is enjoyed by customers of all ages due to its familiar and comforting tradition Among them, hazelnut latte stands out as one of the most attractive beverages that any visitor to the shop has surely experienced The combination of coffee and smooth hazelnut creates a delightful and energizing sensation with every sip This product will captivate anyone right from the first taste It is precisely due to this unique blend that our team aims to introduce this product to customers worldwide, including South Korea, and we anticipate it will become a hot trend in the future.
Image 1: Hazelnut Source: (Trường dạy làm bánh Á Âu, 2022)
Business Operations Analysis (SWOT)
SWOT model of Katinat Saigon Kafe
To analyze Katinat's business, we used the SWOT model to have an overview of the internal and external factors of the business This model will make it possible forKatinat to analyze the situation, and data, and update regularly from many different angles of the market to see for themselves the strengths and weaknesses of their resources and products From there, it is possible to draw lessons from experience and mistakes that need to be overcome and take advantage of strengths to promote the best.However, Katinat understands the opportunities that Katinat has, and the challenges from the external environment that she will have to face, carefully prepares plans, and proposes timely solutions to cope with these changes in the market From there, it is possible to combine elements with intersections analyzed in S, W, O, and T to thoroughly solve and choose the right solution for Katinat's problems.
USP of Katinat Saigon Cafe
The cafe serves Vietnamese standard coffee drinks according to Korean taste. The space of the standard store is always "beautiful" with a bit of an ancient direction of the Vietnam subsidy period.
With the mission to be the typical coffee brand of Saigon Katinat has a distinct USP The brand name Katinat is inspired by the street name of the old Saigon, "Catinat", but the stylized letter "K" has become the most prominent point expressing the modern and characteristic features of the brand Katinat is the perfect combination while retaining the old features inherent in harmony with modern features, typical for the cultural lifestyle of enjoying coffee of "Pearl of the Far East".
With a favorable competitive position and unique store, design style is the great attraction of this brand The space of the store always carries the criterion of "beautiful", with the ancient direction of Vietnam during the subsidy period, along with the luxurious mainstream blue, black, and beige colors that have attracted a certain group of customers.
After the Covid-19 pandemic, the F&B industry had a change when many prime premises in large roundabouts in the city center were returned Taking advantage of this opportunity, Katinat proceeded to rent and invest in larger and larger stores Specifically,the Katinat branch at the intersection of Cong Hoa - Thang Long and Cho Lon -BinhPhu with two monumental and new versions.
Image 2: Katinat's store location - Cho Lon branch
Image 3: Katinat's store location - Cong Hoa branch
Image 4: Katinat's store location - Dong Khoi branch
Image 5: Katinat's store location - 3/2 branch
It can be seen that location is a sustainable competitive advantage that is difficult shopping store is the location closest to consumers Therefore, Katinat's branch stores all have the choice of placing their stores at locations such as roundabouts, downtown districts 1, 3, fork or junction 4 or concentrated on crowded streets such as Dong Khoi, Ham Nghi, Nguyen Du, Tran Hung Dao, areas that are close to schools, offices, and crowded tourist places.
In early 2022, after the Covid-19 pandemic was under control, Katinat had a strong breakthrough in-store space design thinking.
Image 6: The space inside in Katinat - Cong Hoa branch
Image 7: The outside space in Katinat - Cong Hoa branch
Image 8: The interior of Katinat - Binh Phu branch
Both branches are designed to exalt elegance, luxury, and modernity The most prominent feature is the interior decoration with warm blue and yellow tones to help customers feel comfortable, light, and peaceful Besides, Katinat also focuses on using natural light sources with a combination of "outdoor" style close to the balcony space and "indoor" space with warm light The all branches have spacious spaces and a balcony area for customers to admire the street, popular from 2 to 3 floors The highlight of Katinat that makes it more attractive is the elegant and elegant glass windows that have created a unique attraction for Katinat It can be said that with an impressive architectural space, which is always loved by young people to "check in" many customers also like to come to Katinat to chat, work and study.
Have a Research and Development (R&D) Department
To capture the consumption trends of customers and create products that match their preferences, especially Gen Z tends to evaluate producing more, which is an effective marketing strategy for brands From there, Katinat can create a competitive advantage and increase the uniqueness of the brand.
Diverse menu, suitable for most ages
Compared to the beautiful location and spacious space, the menu at Katinat is diverse in drinks, suitable for many different customer groups such as students, office workers, and elderly customers.
Image 9: Menu Katinat 1 Source: (Katinat, 2023)
Understanding customers with a quality Marketing team
Marketing teams have hit and right customer insights by understanding customer psychology Since then, Katinat has built customer trust and loyalty and gained more potential customers And maximizing the ability to serve the different needs of each customer segment is through understanding each customer group differently The number of products at each store is always guaranteed to be full and available to meet many different choices of customers In addition, Katinat constantly strives to collect feedback from customers to improve each flavor, adjusting to suit customers' tastes without losing the unique taste of Katinat.'
Image 11: Katinat's Rainbow Cup Source: (Katinat, 2023)
The typical strategy when it comes to Katinat is "Rainbow Glass." It immediately created a positive effect and accepted it Even many people accept to get up early and queue for 2-3 hours to own this glass Thanks to the images posted on social networking sites, the brand has received many searches and reminders This rainbow cup is made from PP5 plastic, reusable, and especially capable of changing depending on the temperature of the water inside It can be said that this campaign is not too strange because before that Starbucks had its design of cups for each festive season.However, by capturing the right customer tastes, this campaign has been extremely effective, helping Katinat create a great resonance.
There is a great advantage in the source of coffee raw materials because Vietnam is at the top in the production and export of coffee around the world.
Figure 1: Production volume of coffee seeds in Vietnam from 2018 to 2022
It can be seen that Vietnam's coffee bean production increased steadily from
2018 to 2022 In particular, in 2022, Vietnam's coffee output will reach over 1.8 million tons, ranking second in the world and with the largest production of Robusta coffee in the world.
The total coffee area of Vietnam as of 2022 is 710.66 thousand hectares, of which the coffee business area will reach 653.1 thousand hectares Although the country has the 6th largest coffee area in the world, our coffee yield is the highest in the world.The average coffee yield of Vietnam is 1.4 times higher than that of Brazil, 2.8 times that of Colombia, and 4.5 times that of Indonesia.
Figure 2: Coffee growing area in Vietnam Source: (People's Daily Newspaper, 2023)
Vietnam currently ranks fifth in terms of tea growing area and sixth in the world tea production rankings Currently, Vietnam has 34 tea-growing provinces and cities, with a total area of up to 130 thousand hectares, the output is 1.02 million tons of fresh bud tea per year, the dry tea output is 196 thousand tons, estimated at 12,600 billion VND, equivalent to 552 million USD (in 2022) (Source of People's Newspaper, 2023)
Having a lot of ambition, implementing many projects at the same time
It can be seen that Katinat is emerging strongly after the Covid-19 pandemic, and thanks to that taking advantage of the opportunity, Katinat has a change in their design mindset, investing heavily in the design of the store space Opening many branches in districts, and crowded streets stretching across the city To attract a large number of customers to the shop to check in, especially Gen Z In parallel, Katinat continuously changes and improves the menu with many different drinks, leading to some drinks that are not the strength of the store, so the quality of the products is not guaranteed At the same time, the Katinat team is strong but quite ambitious, constantly launching campaigns to attract customers, leading to a large amount of information that is easily confused.
Focus on form rather than product quality
It can be said that the biggest strength of Katinat is having many branches with a space suitable for customers' tastes, along with outstanding marketing campaigns. Therefore, the quality of drinks at the store is evaluated as inferior to competitors such as Phuc Long and Starbucks Some of the negative reviews are not in the attitude of the staff, or the service, but in the quality of the Katinat drink.
There are no stores in the provinces and suburbs yet
ANALYSIS OF THE MAJOR ENVIRONMENT IN KOREA
Politics
South Korea is a democratic republic, the president is both the head of state and the head of the executive branch with a leadership role - who is elected by a general election, appointed and organized,a cabinet member, with a two-party system, the Democratic Party and the conservative Liberal Korean Party The Republic of Korea adheres to the principles of equality and freedom In addition, Korea has a system of indirect democracy through representative democracy in which representatives are elected by the people to exercise their rights force This power is strictly bound by the constitution and laws to protect the nature of people's sovereignty.
The incumbent president is Mr Yoon Suk-yeol with a term of 5 years from the beginning of his appointment on May 10, 2022, and is not eligible for re-election A strong message, he gave was to make Korea a reliable member of the international community and a country that truly belongs to the people It also emphasizes the value of the importance of freedom and lasting peace.
Image 12: Current President Yoon Suk-yeol
In addition, South Korea's judicial body is headed by the Supreme Court, which oversees litigation and has the judicial power to make decisions based on laws enacted by the legal profession In the parliamentary cabinet system in which the National Assembly can hold many positions such as a member of the National Assembly, the National Assembly can exert intense pressure on the executive branch through hearings in which the Prime Minister is not the president and is the head of government but can direct and supervise the members of the State Council, and the president can independently initiate bills, and the president cannot dissolve the parliament Unlike the United States, which is a president-centered country, in Korea, the president has emergency powers that the lower house also has because it is not a federal system, so the central government's authority The central government is very strong The president has the power to introduce bills.
South Korea's judiciary is relatively dependent on law enforcement agencies. The position of the Chief Justice is the same as that of the President The Supreme Court Justice not only directly participates in the trial, but also has the right to appoint judges, so the judges are also indirectly influenced by the President The term of office of the Supreme Court Justice is guaranteed, and the President cannot change the position of the Supreme Court Justice at will, but he can be appointed by the President, subject to the consent of the National Assembly.
Korea is a democratic country, especially in terms of decentralization, periodic elections, multi-party system, and freedom of speech are always controlled by the Constitution and institutions, so Korea is a country in the world countries where the principle of democracy does not work much In a democracy, the independence of the judiciary and the prosecution is important There are two main parties: the People's Power Party, nominated by Mr Yoon Suk-yeol as president, and the Democratic Party.
He desired to overcome the "illiberal democracy" and "controlled economy" while the previous president, Moon Jae-in, at the same time wanted to restore liberal democracy. and market economy as the highest values of the state, as well as raising the anti- corruption flag, creating a new wind for Korea.
The issue of anti-corruption is a very difficult problem for the Korean nation to solve In 2016, the corruption rate was the highest, and the current president was under control and declining Currently, South Korea ranks in the top 31 with a score of 63/100. This indicates that the political line and policies of the new president and lawmakers are playing a role.
According to Reporters Without Borders in Paris on Wednesday, South Korea ranked 47th in the World Press Freedom Index in 2023, down from 43rd last year, based on the news environment assessment of 180 countries and regions South Korea is a democratic republic, with the President as the head of state, executive power exercised by the government, and legislative power exercised by the government and parliament.
South Korea's democracy index for 2022 is 8.03/10, down eight places from
2021 but has a higher score than the previous year, maintaining its "full democracy" rating for the third year But the political culture score decreased by 1.25 points, this is the first time that Korea, has maintained its culture score from 7.50 to 6.25 points. Political stability has a positive impact on the economy, diplomacy, and security.
South Korea's political stability is at 0.57 in 2020 and up to 0.66 by the end of
2021 According to Chandler's Good Government Index, South Korea ranked 18th out of 104 countries, which was quite high when President Yoon Suk-yeol came to power in
2022 This index is evaluated based on 7 criteria:
At present, South Korea is not a completely democratic country, and corruption is still a very thorny issue for this country However, the legal and political principles of South Korea are still correct, and independence, freedom and democracy have always been given priority In addition, South Korea has also made some achievements on its own political road Five presidential terms have passed, but the problem of corruption is very worrying, and in the past five years, it is improving and quite serious The Democratic Party index ranks in the top 31, with a score of more than 8 points, far higher than that in 2021 In addition, Korea has just visited Vietnam with the promise of signing more cooperation This helps the politics and economy between Vietnam and Korea get better and better Create opportunities for many domestic enterprises to have a more active and open cooperation environment.
Legal
After independence, South Korea's first constitution was promulgated on July 17,
1948 The constitution has been revised nine times, five of which were almost completely rewritten, and each revision means a new Republic The Sixth Republic began with the last major constitutional amendment in 1987 According to the constitution, the president has only a five-year term and cannot be re-elected He is directly elected by the people.
The Constitution includes a preface, 130 articles, and 6 supplementary rules, and is divided into 10 chapters Its basic principles include national sovereignty, separation of powers, and the pursuit of the reunification of the North and the South in democracy and peace the Korean constitution is not only stipulated in the country's constitutional manual but also mentioned in judgments and customs The constitution stipulates a free and democratic political order, which is supplemented by parliamentary elements through the presidential system Political parties enjoy the privileges and protection conferred by the constitution, and the constitution entrusts them with the obligation to ensure a free and democratic order The Constitution establishes that the people of a country enjoy and benefit from the rights protected by the Constitution, and the people also have basic obligations such as tax payment, study obligations, and work obligations,
The Commercial Law promulgated in 1963 includes six main ideas:
Including basic rules, such as business name, business personnel, business name and financial statements, business registration
Clarify the basic types of commercial activities, such as buying and selling goods, representing trade, transportation, franchising, etc.
Five types of companies are specified, such as partnership, Limited partnership, limited liability company, and limited company
Regarding insurance rules such as nonlife insurance, life insurance, transportation insurance, marine insurance, and liability insurance.
Fully revised by Law No 8582, which came into effect in 2008.
Commercial law governs the legal relationship between commercial transactions and enterprises Commercial Law, along with Civil Law, belongs to the judicial system, but Commercial Law is a law specifically designed for corporate legal relationships, including provisions of Welding Law.
The Korean labor law is divided into 11 chapters and 116 articles, including specific provisions such as:
According to the Labor Standards Act, which stipulates minimum standards for working conditions such as wages and working hours, the main contents of a labor contract will be drawn up by the Work Permit System.
Wages can be paid directly to the employee in cash or transferred to a designated account on a fixed date each month set by the employer Currently, the minimum wage of a resident is 9,620 KWR, in addition to the official salary set by the employer, there are also allowances for overtime, night work, and working on holidays and holidays.different salaries.
Basic Act on Employment and Rest Policy
Working hours in Korea must not exceed 40 hours a week, 8 hours a day, excluding breaks If an employee works more than the specified number of hours, it will be counted as overtime, and depending on the employer, there will be other wages for them During working hours, employees will be provided with 30-60 minutes of rest and meals One month employees can take at least 1 day off, if a person works 60 hours or more per month and 15 hours or more per week, they will be entitled to 1 paid day off per week Leave includes agreed leave in addition to paid leave and maternity leave before and after giving birth, the employee is entitled to leave.
The Act on the Promotion of Employee Participation and Cooperation
Employees need to follow many principles and regulations that the employer has given, need to strictly comply with the rules otherwise the employer has the right to fire or fine salary depending on the case and the extent to which the employee hire that labor based on the law to decide.
Equal employment opportunities for both men and women
The aim is to achieve work-life balance, and gender equality for both men and women in society.
Benefits when employees are laid off or temporarily unemployed for short-term leave waiting for that enterprise.
If there is an occupational accident, the employee will be compensated according to the extent of the injury and according to the standard labor law.
Occupational Safety and Health Act
Maintain and promote worker safety and health by establishing health and safety standards to prevent occupational accidents and providing a safe workplace for workers motion.
Basic Act on Labor Welfare
The purpose of this act is to promote labor benefits for workers in addition to basic wages and working hours in order to enhance workers' willingness to work and improve their quality of life.
All the above rules apply to people living and working in Korea, including part- time or temporary employees According to the Labor Standards Law, in labor relations,the parties need not sign a written contract, but the employer must have clear labor terms, such as salary, working hours, rest time, holidays, and vacations In addition to the above laws, there are other laws, such as the Employment Insurance Law, the Temporary and Part-time Workers Law, and the Workers' Skills Development Law,etc,.
Food Sanitation Act aims to prevent the risk of food safety and hygiene hazards, so as to improve the health and food quality of residents living in Korea Plant Quarantine Act Preventing the entry and growth of harmful insects helps to create a safe and high-quality environment for agricultural and forestry production.
Food Sanitation Act contributes to the development of national health undertakings in Korea, reducing the risk of food-borne cancer-causing diseases and improving nutritional components Any enterprise that wants to import food to Korea for sale or trade must contact the local Korean Food and Drug Administration (KFDA).
Table 2: Comparison of goods covered by each law Source: (Laws and regulations on food imports (Part II))
Coffee and tea enterprises can pass the Food Hygiene Law and the PlantQuarantine Law to check the quality and compliance of food hygiene and safety, and whether it will cause toxic harm to the human body if exported to South Korea In addition to whether the product quality meets the standard, there must be a clear standard of origin, packaging and product output before export.
Regulations on 5 types of companies are:
Partnership company (hapmyung heosa): established by at least 2 members. When all members of a partnership agree, the company can be converted into a limited partnership.
A limited partnership (hapja johap):is a partnership with two types of members: limited liability members and unlimited liability members A limited partnership can be converted into a partnership if all members of the company agree.
Limited liability company (yuhan chaekim hoesa): is established by at least one person and has no more than 50 members with a minimum capital contribution of 10 million won The company is also divided into equal shares with a minimum value of 500,000 won.
Joint Stock Company (chusik hoesa): A joint stock company can be established by one person, however, the number of shares of the company is already fixed at the time of establishment At the time of establishment, the number of shares to be issued (offered to others) is not less than the number of shares that can be issued.
Limited company (Co., Ltd - yuhan hoesa)
Economics
People refer to Korea's economic miracle as a myth "the Miracle of the Han River", typically heavily affected by the 1997 Asian economic crisis, but Korea still recovered quickly Korea is one of five Asian countries with strong economies, after China, Japan, India, and Indonesia.
Korea has opened the market in almost all areas, including agriculture Korea is pushing to fully open the market through FTAs The country plans to sign FTAs with many countries with the aim of expanding its economic territory around the world As of 2017, Korea has signed FTAs with 52 countries, including Chile, EFTA, ASEAN, India, European Union, Peru, the United States, Turkey, Australia, Canada, China, New Zealand, Vietnam, and Colombia.
The ASEAN-Korea Free Trade Agreement (AKFTA), also known as the ASEAN-Korea Comprehensive Economic Cooperation Framework Agreement, was signed by ASEAN countries and Korea in 2005 The two sides continued signing an agreement on Trade in Goods (September 2007); an Agreement on Trade in Services (May 2009); Investment Agreement (June 2009) aimed at forming an ASEAN-Korea free trade area.
The Vietnam - Korea Free Trade Agreement (VKFTA) took effect in 2015. Among the previous FTAs of Vietnam, AKFTA is the FTA that Vietnam takes the best advantage of tariffs - up to 70-80% of goods exported to Korea meet the requirements of rules of origin to enjoy preferential tariffs from the Agreement Therefore, VKFTA is also expected to have a high utilization rate to bring more export benefits to Vietnamese enterprises.
Growth GDP is shown in an overview through 2 Table and Line charts as follows
Figure 6: GDP growth from 2 (annual %) - Korea, Rep
Figure 7: South Korea: Growth of the real gross domestic product (GDP) from 2018 to 2028
South Korea's real GDP grew 4.15% year-on-year and reached USD 1.5 trillion in 2021 But by 2022, Korea's real GDP was down to 2.56% Besides, South Korea's GDP was affected by global events, the number of COVID-19 infections increased and oil prices increased amid the conflict between Russia and Ukraine that clouded South Korea's growth prospects Inflation rates in developing and advanced economies are rising, prompting central banks to tighten monetary policy and raise interest rates to control prices However, persistently rising interest rates could push the Korean economy into financial distress.
Figure 8: Korea's export turnover in 2022 Source: (Ministry of Trade, Industry, and Energy - MOTIE, 2022)
Figure 9: The growth rate of Korea's export turnover over the same period in 2021
Source: (Ministry of Trade, Industry, and Energy - MOTIE, 2022)
In March 2023, South Korean exports fell 13.6% from March 2022 to USD55.12 billion according to the Ministry of Trade, Industry and Energy - MOTIE As the semiconductor sector continued to decline amid the economic downturn, this is the first time that the number of shipments has decreased for six consecutive months since the beginning of 2020 According to the Korea International Trade Association survey, near the beginning of 2023, the concern of Korean exporters is the global economic slowdown, followed by cost pressures.
Image 13: South Korea’s five leading export items and export amounts
(Source: Korea International Trade Association (KITA), 2019)
The image shows the top 5 commodities by export volume in 2019 The first rank is Semiconductors with USD 93,930 million, followed by Cars and Petroleum products (with USD 43,036 million and petroleum products respectively) Finally, there are two product groups Automotive parts and Flat panel display and sensors, with 22,535 and 20,657 respectively.
Figure 10: South Korea - Imports Of Goods And Services (annual % Growth)
Import turnover in 2021 will reach USD 615.05 billion, an increase of about 13% compared to 2020 Trade turnover in 2021 will reach USD 1,259.6 billion, a record high, and ranking 8th in the world in terms of trade scale.
In particular, Coffee is increasingly popular in Korea According to data from the Korean Customs Service, the coffee import value reached USD 1.19 billion in the 11 months of 2022, up 45.1% year-on-year This is the first time that Korea's annual coffee import turnover has exceeded 1 billion USD, up 16.7 times compared to 20 years ago.
In terms of volume, Korea's coffee imports for the 11 months of 2022 totaled about 187,790 tons, up from 171,990 tons a year earlier (According to Vietnamplus, 2023)
Figure 11: South Korea Balance of Trade in 2023, Unit: USD billion
Source: (Ministry of Trade - Industry & Energy, 2023)
Since the surplus gave way to the deficit in March 2022 This is also Korea's longest deficit since the "17-month period" (January 1995 to May 1997), Korea's trade balance has been negative for 14 consecutive months ( up to 15.06 billion USD) South Korea is working to narrow its trade deficit each month, with January 2023 with USD 12.6 billion while February and March deficits were USD 5.3 billion and $4.6 billion, respectively April and May were USD 2.7 and $2.2 billion, respectively By April
2023, the deficit was positive, with USD 1.1 billion.
3.6 Labor force and unemployment in country
Figure 12: Labor force participation rate, total (% of total population ages 15+) Korea, Rep
The proportion of Korean workers grew continuously from 2012 to 2019 with about 64% But then, heavily affected by the Covid-19 pandemic, this rate decreased in
2020, then continued to grow until 2022 However, in the future, this number will decrease sharply because South Korea currently has the lowest birth rate in the world.
Although hundreds of billions of dollars spent by South Korea to change the situation, the average number of children a Korean woman gives birth to during her lifetime reaches a record low: 0.78 in 2022 In Seoul, the ratio stands at just 0.59 In addition, there are only a few corporations that dominate the economy and the remaining 99% are relatively small in size, coupled with a low salary and high job requirements, so there is a labor force did not find it satisfactory.
However, Korea is not making full use of one group of the workforce, namely female workers In addition, although there are many well-educated, active Korean women, the country still records a difference of up to 31.1% between men's and women's wages (Source: Organization for Economic Cooperation and Development(OECD), 2022).
Figure 13: Unemployment, total (% of total labor force) (modeled ILO estimate) - Korea, Rep
According to World Bank data, when the new wave of Covid-19 forced businesses to lay off a series of employees, Korea's unemployment rate in December
2020 increased to 3.9%, the highest ever (Source: VnEconomy, 2021) By 2021, this will drop to 3.6%, and by 2022, South Korea's Unemployment Rate will hit a record 2.6% as more elderly people go to work By June 2023, the unemployment rate of Korea had decreased by 0.3% over the same period in 2022 to 2.7% (According to the Korea National Bureau of Statistics)
Figure 14: Expected inflation rate in South Korea from June 2022 to May 2023
According to the Bank of Korea (BOK), the expected inflation rate has maintained above 4% for 3 consecutive months from September 2022, then dropped to 3.8% in December of the same year but rose again in January and February 2023 From March, the expected inflation rate continued to maintain its downward trend for 3 consecutive months.
The reason explained by the BOK about the inflation rate is that it is greatly influenced by the cost of living, winter energy costs such as electricity prices, gas prices increase, public charges such as traffic fees, etc.
Geographical setting
Image 14: Map of Korea Source: (nationalatlas, 2015)
South Korea - also known as South Korea, is a country located in East Asia and is the only country bordering North Korea Korea is also located close to the countries of China, Russia and Japan, including three sides bordering the sea: the South is bordered by the East Sea, the East by the Sea of Japan and the West by the Yellow Sea. The total area is about 100,032 square kilometers, but in reality, only 99,742 square kilometers, the remaining 290 square kilometers are invaded by sea water The approximate measuring coordinates of Korea are about 37˚North and 128˚East and the boundary line between the two South and North is the 38 parallel In addition to the main peninsula, there are more than 3,200 islets.
Korea is a country with a developed tourism and entertainment industry, and is home to many beautiful landscapes Scenic spots such as Baekdu Mountain, Cheju Island, Doldo Island, Dadohea Haesang National Park national park in Wando-gun Jeollanam-do province is made up of 1700 large and small islands, stretching in the western part of South Korea.
Jeju Island is considered as one of the most ideal places to go on vacation because of its mild and cool climate all year round plus stunning sea views The geographical location also determines the weather, with the climate being said to be relatively mild, with a year with four distinct colors and also rarely suffers from earthquakes.
Korea has 7 international airports: Busan (Kimhae Airport), Cheongju, Daegu, Jeju, Muan, and Seoul (Kimpo Airport and Incheon International Airport) Incheon International Airport is located about 1 hour by car west of Seoul Central The airport has all major international flights while Busan's Kimhae Airport and Jeju Airport have some flights to neighboring countries such as Japan Korean Air and Asiana are the two main airlines in Korea.
Korea has a total of 60 seaports Of these, there are 31 commercial seaports (national port, local port) and 29 coastal ports (directly managed by the locality). Among those 60 seaports, if divided by region, there are 20 ports on the West coast, 28 ports on the South coast, and 12 ports on the East coast.
With the advantage of three sides facing the sea and the interlaced river system, the seaport system in Korea has developed very strongly The port of Busan is one of the largest seaports in the world and accounts for 66% of Korea's total import and export volume.
Many seaports in Korea match the world Accordingly, the world-class container ports here are Incheon Seaport, Busan Korean Port, Ulsan Port, and Gwangyang Port.These places are increasingly becoming the logistics center of Northeast Asia.
Only on the Han River Boulevard, there were no less than 20 large bridges crossing the river The planning of transportation infrastructure in Korea is very orderly. The road surface is divided into two directions, with many lanes in each direction, the feeling is very open Along the highways due to the characteristics of the terrain, the car constantly has to go through the tunnel.
The quality of roads, bridges, and tunnels here ensures the best technical standards.
Image 15: Street in Korea Source: (korea.net, 2018)
Public transport such as the subway and bus is the most chosen by many people in Korea Because of the modern, convenient, fast, environmentally friendly and especially cheap price.
Special subway development in cities such as Seoul, Busan, Incheon, Daegu, and Gwangju The dense subway station system, connecting cities in Korea is arranged in a reasonable order The subway starts operating from 5:30 a.m to 12 p.m The time of morning and evening traffic jams is about 2.5~3 minutes Other than that, the traffic jam is 4~5 minutes.
Bus is the most popular means of transport for students because it is quite cheap and convenient.
Image 16: Subway in Korea Source: (korea.net, 2018)
Part of the East Asian Monsoon Climate Zone, Korea has a temperate climate with four distinct seasons Air mass movement from the Asian continent exerts a greater influence on the weather of Korea than air movement from the Pacific Ocean Winters are usually long cold and dry while summers are short, hot and humid Spring and autumn are pleasant, but short Seoul's average temperature in January is -5 to -2.5 °C (23.0-27.5 °F); In July, the average temperature is around 22.5 to 25 °C (72.5-77.0 °F). Due to being in the south and surrounded by the sea, Jeju Island has warmer and more pleasant weather than other parts of Korea Average temperatures on Jeju Island range from 2.5 °C (36.5 °F) in January to 25 °C (77 °F) in July.
The country generally gets enough rain to sustain its agricultural production. Rarely does it rain less than 750 millimeters (29.5 in) in a year, with most years over 1,000 millimeters (39.4 in) Precipitation, however, can vary from year to year Severe drought occurs about every eight years, especially in the southwestern part of the country where rice is produced About two-thirds of the annual rainfall occurs between June and September.
South Korea is less prone to typhoons than Japan, Taiwan, the east coast ofChina, and the Philippines There are 1-3 hurricanes per year Typhoons usually make landfall in Korea in late summer, especially in August, and bring torrential rains Floods sometimes cause significant damage, such as landslides, due to the country's mostly mountainous terrain.
South Korea - also known as South Korea, is a country located in East Asia and is the only country bordering North Korea Korea is also located close to the countries of China, Russia and Japan, including three sides bordering the sea: the South is bordered by the East Sea, the East by the Sea of Japan and the West by the Yellow Sea. The port of Busan is one of the largest seaports in the world and accounts for 66% of Korea's total import and export volume.
Many seaports in Korea match the world Accordingly, the world-class container ports here are Incheon Seaport, Busan Korean Port, Ulsan Port, and Gwangyang Port. Part of the East Asian Monsoon Climate Zone, Korea has a temperate climate with four distinct seasons Air mass movement from the Asian continent exerts a greater influence on the weather of Korea than air movement from the Pacific Ocean Winters are usually long cold and dry while summers are short, hot and humid.
Social environment
Korea is influenced by Confucian culture Therefore, although Korean family culture has many similarities with other Confucian-influenced countries, undergoing high-speed industrialization has made Korean family culture also gradually changing.
They always value the harmony of the family as well as the happiness of each member and especially the order in the family Koreans emphasize filial piety to grandparents and parents In the family, they always seriously teach their children and grandchildren to respect adults such as grandparents, parents, relatives and learn to express their own opinions politely.
They used to consider the housework and child rearing as women's responsibility, but recently men are starting to tend to participate, so the family care and child rearing in many households are being changed change positively Korean men don't know how to show their love for their wives Especially in front of parents and family, who show affection or compliment their wife, they are considered unmanly, so they are often very careful.
Korea is one of the countries with the best education among the developed countries - this is widely appreciated and recognized by experts The country belongs to the Organization for Economic Cooperation and Development (OECD) This is an organization that uses the PISA test to assess international students aged 15 And for many years, Korea has always been at the top of the 70 member countries.
There is a perception that countries in Asia attach great importance to academic achievement But according to many comments, Korea has brought this concept to a new level This country really values learning, always prioritizing high results And because of that, parents always put huge expectations on their children.
In an interview on The World of Buzz, one male student decided to speak up about the stress of studying, which he calls "torture."
"The school life of most Korean high school students is the same, and it's hell, day after day." - said the male student.
"Even in 1st grade, the competitive pressure among students was already great."
The competition becomes heaviest in the high school years In another interview on Al Jazeera, another male student, Kim Young Hwan, frankly compared education to being lost in the forest.
"Korean education is like a forest There you have to compete for survival, eat or be eaten."
Getting into university has become so important that there is a very famous saying in Korean life, roughly translated as follows: "You sleep 3 hours a night to expect to go to SKY schools; if you sleep 4 hours a night, you can go to other schools; if you sleep five or more hours - especially your senior year - forget it."
5.3 Living standards and leisure (Coffee drinking culture in Korea)
Compared to many other Asian countries, Korean people know about coffee quite late In the past, tea was a popular drink Today, the art of tea ceremony is still maintained However, in tea culture, it shows class distinction, tea is for those with authority It wasn't until the reign of King Gojong (about 1800) - a person with a special love for coffee that this drink was used in the royal court Then it began to be popular among the people.
Coffee is a drink for all classes, not like the tea ceremony Van Hoa coffee is associated with discussions The characteristic culture, friendliness, openness, approachability and sophistication makes Korean coffee not only delicious but also very eye-catching.
The Japanese drink strong coffee Most Koreans like milk coffee, even a lot.Coffee culture in Korea is heavily influenced by American coffee culture However,Koreans still make a difference that only they have.
Image 17: Korean coffee drinking culture
Characteristic in Korean coffee culture is friendliness and sophistication Their taste is different from many other countries Koreans like coffee with a lot of milk, a harmonious sweetness with a little bit of fat They don't like pure coffee because they don't like the pure bitterness of coffee Therefore, ways to enjoy coffee with lots of milk like Latte coffee are very popular and suitable for many subjects in Korean society (students, intellectuals, business people, artists, ).
The people of the land of kimchi have a habit of drinking coffee every day, some people drink 3-5 cups of coffee / day Starting in the morning, on the way to the company, after the meal, after the shift, the evening coffee, they all want to have a cup of coffee on hand However, the main consumers are usually women in their 20s and 30s They are fascinated by a place that is polite, elegant, beautifully designed,beautiful objects,…
Image 18: Common space of Korean cafes
Professional Korean cafes bring the beauty of architecture, space, and decoration that make many tourists come here fascinated In general, there are two main trends. One is the coffee shops that use glass as the main material This is an open, liberal and modern trend that is very suitable for the office world Two are cafes that take the golden lights and warmth as the center These cafes are often the dating places for couples who prefer a quiet, romantic space In addition, the entry of the world's top famous coffee brands in Korea such as Starbucks, The coffee Bean, Tea Leaf, etc., makes the coffee culture of this Asian country even more unique diverse, with bold interference.
Korea deeply hierarchical social status From the second half of the twentieth century, there were constantly chaebols (groups of tycoons) and they grew constantly, holding from economic to political support.
By default, Korean society has money and rights After entering the 21st century,the country has repeatedly appeared in the gapjil scandal (Gapjil (Korean: 갑질) is a word that refers to the arrogant and arbitrary attitude or actions of those in a more powerful position others in Korea.) They range from collective gapjil (large companies oppress, acquire small companies) to individual gapjil (rich owner abuses, abuses employees, employees).
Culture environment
The aesthetic of South Koreans reflects a combination of traditional cultural characteristics and modern elements, while also embracing diversity and individual perspectives on beauty.
South Koreans prefer bright and modern pastel colors, especially the traditionalFive Cardinal Colors of Korea (Obangsaek), representing balance in their lives.Obangsaek consists of colors such as blue, red, yellow, white, and black, each carrying distinct meanings in the minds of South Koreans For instance, blue symbolizes peace,vitality, and courage, signifying rebirth and has been a beloved color since the Joseon dynasty Additionally, yellow conveys nobility and sanctity, often used for children's clothing due to the brightness it brings.
Respecting traditional culture and lifestyle is essential in the aesthetics of South Koreans Obangsaek is preserved and prominently featured in their clothing, cuisine, and architecture They deeply value, maintain, and celebrate the traditional beauty of their heritage.
Traditional Music: Traditional music in Korea is called "gugak" or "pansori."
"Gugak" includes genres such as court music, folk music, and traditional music played on traditional instruments like gayageum (zither), haegeum (bowed string instrument),janggu (drum), "Pansori" is a traditional vocal genre performed by a singer and a drummer called buk (drum).
Image 24: "Yeomillak" performance Source: (koreanet, 2023) K-Pop Music: K-Pop has become a global music phenomenon and a distinctive feature of South Korea With its vibrant music, high-quality dance performances, and appealing images of famous idol groups and singers, K-Pop has attracted a massive fan base from all over the world.
Image 25: BTS in receiving the Order of Culture of Korea in 2018
Source: (Thanh Nien News, 2020) Hip-hop and R&B Music: Hip-hop and R&B music genres are also gaining popularity and drawing attention from the youth in South Korea and internationally.Many Korean artists have achieved success with this music and gained international fame.
Television Drama: Korean television drama, known as "K-Drama," is a crucial part of the entertainment culture in the country K-Dramas encompass various genres such as romance, comedy, action, horror, historical, and melodrama, with diverse and captivating storylines Korean TV dramas have garnered a large number of fans both domestically and internationally.
Image 26: Korean movie "Descendants of the Sun"
Source: (Vietnamnet, 2016) Stage Drama: Apart from TV dramas, stage dramas and professional theater performances are also beloved and have a substantial fan following Stage plays are often performed in theaters and stages across the country.
Traditional Dance: Korea has various traditional dance forms, including court dance, folk dance, and classical dance Traditional dance performances often take place during festivals and special events.
K-Pop Dance: Dance plays a vital role in K-Pop music K-Pop groups often showcase complex dance routines and group choreography along with catchy music.
Street Dance: Street dance, including genres like hip-hop dance, b-boying, and popping, is also very popular among the youth in South Korea.
These elements contribute to the diversity and vibrancy of South Korea's entertainment and artistic industry, attracting attention and admiration from various countries worldwide.
In South Korea, religion and belief systems are practiced strongly, diversely, and freely Most religions are treated equally and share the common goal of providing people with faith in life The major religions in South Korea are Buddhism, Christianity, Protestantism, Islam, Shamanism, and some other smaller religions.
Image 27: Shamanism Source: (Sunny Trieu, 2023)
For Koreans, religion is an integral part of their culture and way of life Many customs and festivals in Korean society are organized based on religious beliefs, helping to unite the community Religion also influences the art and culture of Koreans Many films, literary works, traditional arts, and architectural expressions incorporate elements of religion and spiritual values.
Additionally, there are a few Koreans who do not follow any specific religion However, in general, they respect the diversity of religions and are tolerant of those who follow different belief systems.
The main language of South Korea is Korean (Hangeul), which is widely used and the national language of its people South Korea has several dialects, but the primary and most commonly used dialect is "Hangul" because it is the easiest and most understandable alphabet The reason Hangul is considered easy to understand is that in ancient times, Korea used Chinese characters known as Hanja for writing Learning
Chinese characters posed challenges and difficulties, and only the upper class had access to education As a result, the Hangul alphabet was created with simpler syllables and pronunciation similar to the Latin alphabet.
Image 28: Hangeul Alphabet Source: (SOFL Korean Language Center, 2012)
Additionally, in South Korea, there are some other minority languages used by immigrant communities and minority residents, such as Chinese, English, and Japanese. However, Korean is still the predominant language in the daily communication of the Korean people, and some other languages of Korea are maintained to preserve cultural diversity.
South Korea, also known as the Republic of Korea, is sometimes referred to by its full name, Daehan Minguk, and is also called South Korea or Nam Triều Tiên in Vietnamese It is located on the Korean Peninsula in Southeast Asia With a population of over 51 million people and its capital city being Seoul, it is divided into 9 provinces
(1 autonomous province) and 6 major cities South Korea has a long and diverse history, spanning from ancient times with dynasties like Goguryeo, Baekje, Silla, and Goryeo, to the illustrious Joseon Dynasty.
South Korea went through division and the Korean War in the 1950s, leading to the current unofficial state of affairs with North Korea Nevertheless, the country has experienced robust development, becoming one of the world's fastest-growing economies during the period known as the "Korean Economic Miracle." In just 40 years, South Korea has risen to the top 3 in Asia Its GDP growth rate reached nearly 35,000 USD per capita in 2021 From being one of the world's poorest countries, South Korea has now become a global economic powerhouse Several key factors have contributed to South Korea's development:
Export-oriented economic policies:South Korea focused on manufacturing and exporting goods to the international market This strategy helped the country accumulate foreign reserves and attract foreign investments.
Government support:The South Korean government created a business-friendly environment by implementing policies that encouraged investment, supported research and development of technology, and promoted industrialization.
Technology
After Apple launched the smartphone race, Samsung was the first name to rise to compete with the Galaxy S After a few years, Samsung became the No 1 smartphone manufacturer in the world Today, when the smartphone revolution has cooled down,Samsung and LG are the two leading forces in the smart home / Internet of Things.
Image 29: Samsung Electronics Co., Ltd
For its part, Hyundai is also one of the leading forces in the development and testing of self-driving cars through many cooperation deals with Google, Uber as well as self-development projects As the first chaebol connect to the Korean government, Hyundai is aiming to launch a commercial self-driving car by 2020.
Image 30: Hyundai Motor Group Source: (Koreanet, 2020)
The Korean government announced a new initiative called “Manufacturing Renaissance Vision” in 2019, aimed at revitalizing and upgrading the innovation engine in the manufacturing sector Thereby helping the smart manufacturing industry promote industrial structural innovation through the application of smart, environmentally friendly technology In addition, the Korean government has released a roadmap for several areas of the R&D project: design technology, IIoT (Industrial Internet of Things) platforms, software-integrated operating techniques, smart sensors, robots, data collection and data processing technologies, and industrial standards Besides, the Korean Ministry of Trade, Industry, and Energy (MOTIE) announced a new project to invest 422 billion USD (500 trillion won) in 2026 to promote six core technologies: semiconductors, conductors, electric vehicle batteries, autonomous vehicles, robots, displays, and biotechnology The government said it would set aside $260 billion (340 trillion won) to develop semiconductor systems by 2026, considering "semiconductors as a strategic support for the economy and a national security asset."
In Korea, people use the TOPIS system, which helps people check the current traffic situation, traffic jams, location of nearby parking lots or emergency accidents, etc. The site also provides information on bus, metro, and bicycle routes, and a visual map for road users The transportation system in Seoul is calculated and built appropriately to make the circulation of people easy Seoul TOPIS Traffic Information and Operation System provide complete data from various sources: bus management service, public transport card system, automatic ticket collection system, radio system, and traffic television.
In addition, 5G, sensors and nanomaterials, as well as the application of virtual- reality systems are advancing rapidly, significantly reducing the cost of leading manufacturing processes and improving performance Simultaneously, to improve production productivity to meet the increasing expectations of consumers, Korean corporations are accelerating production automation solutions to increase productivity, profits and reduce costs in the supply chain As a result, advanced production environments are evolving from outdated centralized systems to modular-based decentralized systems and automated controlled platforms.
Korea is widely recognized as a leader in information technology (IT) Famous
IT and electronics companies such as Samsung, LG, SK, and KT are the driving force behind the country's economic growth At the same time, South Korea owns top Internet speeds and is the first country to officially launch commercial 5G The country also hled the lion's share in terms of Internet access as almost every household is online Thanks to modern production technology and advanced information system, Korea has always been a leading country in the field of applying technology and information systems to support production.
Trading infrastructure
Distribution Channel:such as Hypermarkets, Supermarkets, Convenience Stores and Department Stores, Specialty Stores, Online, and Other Distribution Channels.
Major retailers in Korea: such as HomePlus Mart, Lotte Mart, E-Mart, Shinsegae.
Figure 21: South Korea retail sector size & share analysis - growth trends & forecasts
The Korean retail industry is estimated to reach USD 495.30 billion in 2023 and is expected to reach USD 619.60 billion in 2028, growing at a CAGR of 4.58% during the forecast period (2023-2028)
Table 3: Sales by product group from Monthly 2020.01 ~ 2023.05 (Unit: In million won)
Total sales of the retail market in Korea from March 2023 to May 2023, with more than 53 million won in March, over 52 million won in April and 54.6 million won at the end of May/ 2023 The map clearly shows the revenue of each retail industry in the Korean market.
Figure 22: Revenue in the Cosmetics Segment in South Korea (USD Million), 2017-2020
Appearance and beauty are very important in Korean culture As a result, there is a high demand for cosmetic and surgical products that help people get the right look.
In retail, Korean consumers purchase beauty and personal care products not only from online retailers but also through in-home and door-to-door shopping opportunities,department stores, department stores, health and beauty stores, duty-free stores, beauty salons, medical institutions, and pharmacies, among others Facials account for more than half (51%) of the total market share in retail sales and are expected to reach over5% CAGR within the next 5 years.
Most of the categories are expanding in both traditional form and e-commerce product form to increase their sales and sales scale In Korea, for the traditional form, we can see most easily through stores, supermarkets, or commercial centers such as Korean department stores such as Shinsegae, Lotte, Hyundai, Galleria, or shops convenience goods such as Seven-eleven, Ministop, CU, and GS25 In addition, retailers also choose to sell products through e-commerce platforms to expand their customer base In Korea, there are five major trading platforms trusted by people such as G-Market, 11Street, Auction, Interpark, and Coupang.
Korea has been implementing a plan to provide capital and resources to support small and medium retailers to develop their e-commerce channels In addition, the Policy side also promotes and encourages many retailers to adapt to online business models, expanding their sales and revenue channels beyond brick-and-mortar stores. Besides using three Korean e-commerce platforms, in recent years the government said it is cooperating and working with three major e-commerce operators including: Lazada, Shopee, and Amazon to meet and timely support for retailers in reaching consumers.
Image 31: Incheon Airport as a Hub Airport Source: (Korean Culture, 2020)
Figure 23: Trends in air cargo throughput and transshipment volume at Incheon International
Airport Source: (Ministry of Land, Infrastructure and Transport, 2019)
Regarding airport infrastructure, aviation has high added value, accounting for about 1/4 of the total freight In particular, high-tech aviation logistics information systems are used by Incheon International Airport to book and track cargo and continue to correct errors In addition, at Incheon Airport, the Korean Government expanded the cargo terminal and trained talented young people in charge of air transport logistics at relevant educational institutions.
Figure 24: Container throughput and transshipment at ports Source: (Ministry of Oceans and Fisheries, 2020)
The chart above shows that Container throughput and transshipment at ports from 2009 to 2019 is growing strongly (with Unit: 1,000 T) Korea is on the way to becoming a major logistics center in Northeast Asia In the logistics sector, Korea is stepping up technology investment in automation and sophistication in import/export handling facilities to increase competitiveness Besides, this field advanced using information and communication technologies in the logistics system In particular, Incheon International Airport is equipped with a high-tech aviation logistics information system to book and track cargo and continue to correct errors.
Image 32: Busan Harbor, the largest port in South Korea
Infrastructure in Korea is on strong development momentum, especially sinceKorea is promoting the application of sophisticated technologies to machinery, transport infrastructure, airports, and seaports In particular, after recovering from the influence of the economy, Korea expects the number of passengers arriving at the airport in Korea to increase dramatically in 2023, especially when tourism is recovering strongly Korean agencies are consulting to consider the operation of night trains, creating convenience and safety for passengers Besides, import/export activities through ports are also expected to grow strongly contributing to the economic recovery after the Covid-19 pandemic.
Korean bussiness environment
According to Market Life, Korea Joongang Daily said that Korea is a "hot" market for the coffee industry, especially small spontaneous shops Korea has a large population that is still growing, loves coffee because of the influence of Western culture, the average coffee consumption is 367 cups of coffee/person/year, as well as being famous coffee connoisseur, always leading the world's coffee consumption and enjoyment trends (according to the National Council of Korean Consumer Organization- 2022).
According to data from Statista, the revenue of the Korean coffee market in
2023 is estimated at 16.08 billion USD The Korean coffee market in the period of 2023
- 2025 is 5.57% Previously, in the period 2017 - 2021, the Korean coffee market was worth nearly $11.36 billion, according to Expert Market Research.
For such a large market, the coffee business has become the most opened type of store and easily suffers from the low cost of opening a shop but the market is large.
9.1.1 Characteristics of the target customers
Based on the coffee consumption habits of Korean consumers, Katinat can segment her potential customers as young people (from 16 to 30 years old), namely students and working people For working people, they drink coffee to have more energy to work, while for students, they drink it to stay up late studying This group of customers tend to use a lot of coffee and will easily attract their attention when they come across a famous Vietnamese coffee shop In addition, Katinat's store design and pricing are suitable for this group of customers and this will create growth potential when Katinat enters the Korean market.
9.1.2 Consumer behavior and buying habits
Before coffee appeared, tea was a very popular drink However, this drink often has a difference in class, age, and level, so it doesn't really integrate into the community. Therefore, the appearance of coffee as a spiritual medicine, connecting people with each other because it is suitable for almost everyone The type of coffee that Koreans prefer is not too pure, but usually diluted coffee like Americano or coffee mixed with a lot of fresh milk like Latte These are the two most popular coffee dishes, in which, Americano has the highest order rate among all drinks in Korean cafes People drink Americano mainly because it's dairy-free and reasonably priced The majority of Korean coffee drinkers are not the same as Vietnamese, if Vietnamese people prefer strong filter coffee, Koreans prefer machine-brewed coffee, typically Americano In 2019, during a reality tour of the famous group BTS, leader RM revealed that Koreans cannot live without Americano because it helps you recharge with more energy and alertness It is not difficult for fans to see their K-pop idols always carrying an iced Americano wherever they go, especially during fansigns.
There are many Koreans who now drink more than 1 cup of coffee daily, some even have to drink coffee to be able to work They drink coffee every day and will drink it many times a day, in the morning, at noon or in the evening, enjoying coffee when going to work, school, going on dates, in meetings with friends They need coffee to keep themselves awake Coffee is a drink for all classes, not like the tea ceremony With modern Korean society, the opening sentence of the story is not "let's talk" but "let's find a coffee shop" Van Hoa coffee is associated with discussions But in addition to alertness, perhaps people will also look to coffee because of its novelty, uniqueness and deliciousness Coffee to Koreans is not only a drink but also shows the culture of enjoying, connoisseurship and passion.
The fact that the great coffee war was not surprising in the land of kimchi. Almost every alley in the big cities of this country has at least 3-4 coffee shops, from small spontaneous brands to big names Up to now, in Korea, on an area as small as Kentucky in the US, there are more than 100,000 coffee shops The number of cafes in Korea has increased by 21% compared to 2021, and increased by 17.4% compared to the beginning of the year, more than the number of fried chicken shops (81,000 shops), while fried chicken is a favorite dish Korea's leading shop and also the most popular store opened here.
Figure 25: Top 10 most popular coffee brands in Korea Source: (Korean Food & Beverage Newspaper, 2021)
Top 10 most popular coffee shop brands include: Starbucks (69%), Twosome Place (30%), Ediya (24%), Baekdabang (10%), Mega Coffee (8%), Coffee Bean (6%), Harlis (6%), Paul Bassett (3%), Sáng tác (3%), Gongcha (2%) chiếm lĩnh bảng xếp hạng.
Korean consumer tastes increasingly prefer famous coffee brands with high quality such as Starbucks, Seattle's Best Coffee, Coffee Bean, Rosebud,
In particular, Starbucks is the world famous coffee brand from the US, also the most popular brand in Korea There are many reasons why Koreans love Starbucks In particular, the most typical is the comfortable spacious seats and many charging sockets.
No matter where you go to Starbucks from any country, you can enjoy the same standard drinks and professional service, so foreign guests coming to Korea also love
Starbucks In addition, there are many unique and beautiful Starbucks stores that are only available in Korea World's first Starbucks with a digital art wall installed in Myeong-dong and 'Famille Park' near Express Bus Terminal, selected as one of the most beautiful Starbucks in the world with 'forest' concept coffee' in the middle of the city center,
Image 33: Starbucks Famille Park in Seoul Source: (creatrip.com, 2022)
Image 34: Mega Coffee Source: (creatrip.com, 2022) Mega Coffee:is the most affordable quality takeaway coffee brand If today, the price of a Starbucks Americano (tall, 355ml) in Korea is 4,500 won, while at Mega Coffee, the price of an Americano (680ml) is only 1,500 won So if you choose Mega Coffee, you can enjoy coffee for about 3 times cheaper In addition, Mega Coffee is currently launching new products with outstanding lovely designs that have attracted great attention of the MZ generation such as the new drink 'Unicorn Frappe' (4,800 won) has been checked in a lot on Korean social networks.
Image 35: Ediya Coffee in Korea Source: (creatrip.com, 2022) Ediya Coffee: Korean coffee brand with the largest number of stores in Korea.Although it is losing its competitive edge on price with take-out stores like 'MegaCoffee', even so, there are reasons why Koreans look to Ediya Coffee Affordable prices,located near the area apartment or city center should be very convenient Also, there's'Flatccino', a very popular coffee frappuccino You can enjoy Frappuccino for a lower price and have more different flavors to choose from than Starbucks Ediya also does not miss trends that also reflect consumer tastes, such as launching a menu using toffee nuts or collaborating with famous Korean sweets (PoStick).
Image 36: Ediya Coffee cooperate with Postick
Image 37: A Twosome Place Coffee in Korea
A Twosome Place: An upscale cafe known for its delicious desserts, especially cakes Although there are many competing brands such as Starbucks and Ediya Coffee,
A Twosome Place, as well as the price is not too competitive, but the shop has been affirmed as "a cafe with delicious desserts", which is recognized as "a coffee shop with delicious desserts" selected as the 'best dessert cafe brand by MZ generation'.
Other domestic stores and chains such as Paik's Coffee, Compose Coffee, …
Currently, there are not many coffee shops and drinks from Vietnam in Korea, but most of them do not meet the needs of consumers here.
Image 38: Cong Ca Phe in Mapo, Seoul Source: (kenh14.vn, 2018)
The most typical and most successful is probably Cong coffee This coffee chain has won the hearts of Korean consumers, especially young people, thanks to its unique store design imbued with Vietnamese identity, which brings customers interesting experiences Cong has also brought its unique and diverse coffee menu to Korea In particular, the "divine" coconut milk coffee drink of the shop is indispensable, which has been loved by many young Koreans with its mild bitter taste and fatty aroma Along with the unique and diverse menu, Cong is also loved by its competitive prices, which are lower than foreign competitors such as Starbucks or domestic coffee brands In addition, Cong has taken advantage of the development of social networks in Korea when using social media to convey messages and information about the shop along with curious hashtags to attract the attention of consumers use.
Coffee shop business is a startup trend of young Koreans as well as international entrepreneurs when the demand for coffee of Korean people is large along with the cost of opening a small shop, only about 50- 70 million won Director Choi Seon Wool of Prong Coffee Design commented that young Koreans are now very interested in opening coffee shops because they think they have enough money to get rich in this industry, especially when many of you used to work part-time for coffee shops , do not needing too much capital is also an important reason Low barriers and great attraction have made more and more people open shops, causing fierce price competition to continue to stay in the market The issue of price will be a special point of attention so that Katinat can compete with current competitors as well as a series of competitors in the future.
Another potential competitor from Vietnam is Trung Nguyen coffee In March of this year, Trung Nguyen Legend Group officially opened a representative office in Gangnam, Seoul, South Korea, which is known as a busy commercial - shopping - entertainment complex in the capital Seoul At the same time as the center of culture - music - art with a strong identity of this country, Trung Nguyen can take advantage of its favorable position to expand its brand, thereby joining the game in the Korean coffee market Country This will likely be a formidable opponent of Katinat in the future.
Besides coffee, Koreans have a wide choice of drinks, of which soft drinks are a popular product in this country Most of the substitute products belong to multinational companies with very strong potential such as Coca Cola, Pepsi, Nestlé
INTERNATIONAL MARKETING PLAN
Entry-mode
The coffee industry is a steadily developing industry in the market With the trend that people often study or solve puzzles, their jobs will choose the location of the first coffee shop Katinat Coffee is a prestigious coffee brand in Vietnam, with a stable number of customers and rich marketing activities to attract new customers In addition, the products here are unique and novel Besides traditional dishes, there are also have unique new things and there are eye-catching new things The landscape space here is antique, such as the "Pearl of the Far East" in Vietnam As the main colors such as dark blue and yellow lights are also indispensable, customers should come to see them every time they pass by, especially the young people with gene Z who want to come in and take pictures and check in here.
This is also the reason why we decided to enter the Korean market by franchising, because through this form of franchising, Vietnamese products will be expanded to friends closer to other countries, and brand recognition will be more and more active In addition, the trademark franchise will also be supported by advertising marketing and training, which will help enterprises and the risk is less than that of privately operating cafes in this strange land Korean culture likes to drink coffee that is not too strong, and the rich tends to be sweet, and more comes from the fat of milk, but still likes the rich coffee smell and this taste Katinat Cofee may be one of the suitable choices Not only that, Koreans always have a pursuit of design and exquisiteness Two styles that Koreans are very popular now, the first is the ancient style, which has many ventilated space windows, expands and makes full use of the natural light, and is usually used by office workers, who can enjoy a cup of coffee and enjoy the street view The second style is developing towards the modernization of minimalism Eye-catching and exquisite decoration are often loved by young people These styles are very consistent with Katina's design style Therefore, entering the Korean market through franchising is both classic and luxurious, which is a great advantage to attract more Korean young people.
International marketing targer
The initial investment that we choose: 1,000,000,000 KRW.
The financial plan of the Katinat franchised coffee shop business project inKorea is summarized in the following table:
Table 5: Financial Plan Summary Source: (Student made)
Franchise Package (4 years): Option to buy Prosperity 04 package for 20,000,000 won (VAT included, deposit fee and software) based on contract This cost is only paid in the first year and subsequent years are free.
2.1.3 Monthly salary and structure of employees
Table 6: Monthly salary and structure of employees
This is the salary table and personnel structure of a coffee shop that covers an area of over 50 square meters and all staff work 8 hours a day According to this table,the total salary of employees in a year can be calculated.
Total annual salary (manager, staff, service) ,300,000 x 12 = 231,600,000 won/year.
There is also a holiday bonus If employees work on holidays, each employee will get x2 salary.
Materials: Estimated for the average material cost 1 month will be 8,000,000won, about more than 3000won for 1 cup of coffee with the cost of materials. Electricity, water, internet: Estimated 12,000,000 won for 1 month
Marketing expenses: Estimated more than 200 million won and will increase by
Table 7: Revenue forecast in month Source: (Student made)
This is the expected revenue of the Katinat Coffee for one month It is estimated that the average selling price of all Katinat products is 4500 won, with an annual increase of 3.5% due to the current inflationary economic period.
First year: Estimated daily sales of 400 products, including coffee, tea, and cakes. The opening of a new store has resulted in an unstable number of customers.
In the second year, an average of 700 products were sold per day Due to the start of media advertising, new customers have incentive measures.
Third year: 900 products sold per day Create promotional coupons when customers visit a Katinat due to collaboration with partners with certain followers.
Year 4: Sales of 950 products per day Having a certain number of regular customers and prioritizing communication with new customers
Year 5: Sell 1000 products per day Effective communication, taking care of new and old customers, creating attractive products and plans to attract customers.
Table 8: Katinat Coffee has been operating in South Korea for 5 years
Table 9: Net cash flow and accumulated cash flow
Profit before tax = revenue - expense
Profit after tax= profit before tax - ( profit before tax x profit tax)
Free cash flow = profit after tax + depreciation
Discounted cash flow ( with tax rate r=8%) :
1 st year = Free cash flow 1 st year 1/(1+8%)
2 nd year = Free cash flow 2 nd year 2/(1+8%) 2
3 rd year = Free cash flow 3 rd year 3/(1+8%) 3
4 th year = Free cash flow 4 th year 4/(1+8%) 4
5 th year = Free cash flow 5 th year 5/(1+8%) 5
Table 10: Determine payback point Source: (Student made)
Accumulated cash flow each year:
Start: (-1.000.000.000) 1st year: (-1.000.000.000) + (-246.717.870) = (-1.246.717.870) 2nd year: (-1.246.717.870) + 234.669.226 = (-1.012.048.644) 3rd year: (-1.012.048.644) + 401.609.380 = (-610.439.264) 4th year: (-610.439.264) + 441.277.053 = (-169.162.211) 5th year: (-169.162.211) + 435.808.647 = 266.646.436 Fifth year positive cash flow so this is the payback year for the project.
Payback period= year before payback + ( amount left to payback /annual cash flow at payback)
So we need 4 years 4 months 20 days, nearly 5 years to payback.
At present, there is a high trend that Koreans like to drink coffee Usually, everyone needs a cup of coffee every morning, such as "American ice", to stay awake at work Even if you walk down the street or watch video blogs about your daily life or study, you will find that you are holding a cup of coffee Therefore, in 2018, South Korea, the world's largest coffee market, jumped to the top three in the world coffee consumption market According to a survey by Euromonitor, a global market research company, the coffee market in South Korea is about 4.3 billion US dollars in 2018 and will exceed 100 billion US dollars in 2021.
It can be said that the coffee market in South Korea is very developed and popular According to statistics, 8 out of 10 people drink a cup of coffee every day.Therefore, in this place of kimchi, many coffee shops sell coffee, ranging from famous large coffee shops to small coffee shops in alleys or convenience stores More than 56% of people have a habit of drinking a cup of coffee, and by 2023, the number of coffee and beverage shops will reach 99000 As of the beginning of 2023, South Korea's coffee imports have reached 200000 tons, with Vietnam's coffee imports reaching 32000 tons, second only to Brazil's 47000 tons.
It can be seen that South Korea has a high consumption of coffee, which is also a highly competitive market However, this is also a developed market for the development and internationalization of large coffee shops in Vietnam Therefore, Katinat Coffee hopes to take advantage of this opportunity and plans to occupy approximately 8-10% of the market share in the Korean coffee market To achieve this market share goal, Katinat needs to emphasize media and new strategies to attract many other potential customers in the country.
Gender All gender (male, female, LGBT)
Career Student, worker Office worker, bussinessman, housewife
Social class The Middle and Upper class
Behavioural occasion Everyday, everytime usage behavior meeting friends, family; studying meeting friends, family, co-workers; working
Table 11: Segmentation of customers in Korea
Demographic: The target customer group of Katinat are people who have age from 16 to 35 years old, regardless of gender, currently a high school student, university student, office worker, businessman in Seoul, earning over 500,000 won a month.
Behavioural: Customers who tend to use coffee daily, do not have high requirements, often use it for study and work activities.
Geographical:With the store location in Mapo, Seoul, Katinat will focus mainly on a group of customers in central Seoul This is also the city with the largest population in Korea, so it will bring a large number of customers to the company.
This group of customers will mostly be high school and university students, office workers, they will tend to stay up late to study and work, so they will have a high demand for coffee In addition, this is also the age group that tends to like to gather with friends, have group meetings, discuss and need space to study and work, with the space and design that Katinat aims to build, Katinat is very potential to attract this customer group This is the customer group that will bring the main revenue for Katinat.
Katinat uses pure and quality coffee from Vietnam along with always using environmentally friendly products in packaging to protect the environment At the same time, Katinat will let Korean customers enjoy specialty coffees, fruit teas in Vietnam, and at the same time suitable with the taste of Korean consumers, with an optimal price in line with product quality.
Marketing Mix (4P)
Adjusted to suit Korean taste: Coffee is not too rich, strong in the style of pure coffee nor bland like instant coffee They mostly like coffee with milk, even a lot of milk, creating an aroma, and fatty taste, but the sweetness must be harmonious In particular, we plan to add 2 types of cakes: Bread with milk and Bread with custard cream.
Image 39: Cafe Katinat Source: (Katinat, 2022)
Katinat Saigon Kafe was originally oriented with the style of enjoying street coffee in Saigon style So coffee is still the core product of this brand The coffee lines on Katinat's menu include traditional coffees and espressos If you like a strong coffee with a "heavy" amount of caffeine, Katinat's Black Coffee, Milk Coffee, or Bac Xiu is an extremely suitable choice In addition to the basic traditional coffee dishes, theKatinat menu also has some more novel recipes such as the Hazelnut latte, and Almond latte for guests who love a light and pleasant coffee taste The combination of fragrantArabica coffee with hazelnut milk or rich, aromatic almonds creates the signature sweet drinks that make the name Katinat Saigon Kafe.
Latte coffee at Katinat is the product that we intend to promote when doing business in the Korean market Because most Koreans like to drink coffee with milk, a lot of milk, but the taste is sweet So Latte is expected to be the most popular product here, especially when combined with the flavor of hazelnuts.\
Recently, Katinat has increasingly focused on and launched many milk tea products, which are suitable for the tastes of young customers who are willing to spend a lot of money on food needs Katinat's milk tea is made from Oolong tea buds grown in the Moc Chau plateau - a new change compared to 2016 when the brand chose tea ingredients from Bao Loc (Lam Dong).
For the "team addicted to milk tea", the Katinat menu has quite a variety of dishes such as roasted Oolong Milk Tea, Black Tea Milke Tea, Jasmine Milk Tea, Rambutan Milk Tea, Royal Chrysanthemum Oolong Tea, B'lao Milk Tea, Thai Red Tea Milk, Matcha melon, etc.
The fruit tea line is also one of the strengths of the Katinat Saigon Kafe chain. Familiar drinks such as Peach Tea, Lychee Tea, Honey Lemon Tea, Honey Chamomile Tea, with a cool, sweet taste and are quite easy to drink, suitable for refreshment in hot weather Coming to Katinat, it is impossible to ignore the Hibiscus duo of Peach Peach Tea, Pink Orange Cinnamon Tea - the sweet and sour taste combined with the sweetness of peaches or the aroma of cinnamon leaves an unforgettable impression.
Image 40: Fruit Tea Source: (Katinat, 2023)
Cakes: We plan to keep the same cakes as Katinat Vietnam: Eggs Salt Cake, Passion Cheese Cake, and Durian Crepe At the same time, supplement and promote two cakes related to Vietnam: "Banh mi cham sua" and "Banh mi cham kem trung".
In addition, we also have Ice blended dishes on the Katinat menu with delicious and cool flavors such as Ice Chocolate Oreo Cake, Ice Chocolate Caramel, Iced Almond Coffee, and Iced Hazelnut Coffee.
The designs of the cups will still keep the main colors of green and yellow copper Besides, depending on the time of the year, holidays, New Year, Katinat will conduct a new coat of clothing for the brand, to help reduce boredom from customers.
One of the unique features in the Katinat menu that sets it apart from other brands is the Topping and Extra sections Besides the usual White Pearl, most young people who come to Katinat are fascinated by Macchiato foam- the creamy, smooth milk cream and the supple and sweet Caramel Pearl Not chasing after toppings that are too popular, Katinat is always innovating in coming up with new products such as two types of toppings Cheese Pearl and Jumbo Cheese Ball The combination of toppings and cups of coffee or tea will bring a different and new taste to Koreans In the future, Katinat will continue to come up with other Toppings that are more suitable for Korean tastes.
Price is a factor that directly affects purchasing decisions, affecting revenue. Katinat entered the Korean market and faced many competitors in the same industry, both domestic and foreign brands Especially, Korea is a country with a rich coffee culture, most young people meet at cafes.
Katinat's marketing strategy is to use a price hierarchy, bundle pricing, and promotional pricing.
The price hierarchy strategy lies in the beverage size hierarchy By offering different size options of sizes M and L, Katinat maximizes its ability to serve different groups and customer segments.
The accompanying price is usually applied by the promotion of cake price promotions Especially, when we launch a new cake, we will give away a cake for customers to try first Likewise, promotional prices are used by Katinat on every special occasion to attract new customers.
The menu Katinat Saigon Kafe hopes to conquer a large number of diners with both diverse and unique drinks The brand has also perfected the supply chain process to ensure the source of input materials to produce quality beverage products Besides, possessing full certificates of food safety and quality of raw materials also makes customers feel more secure when enjoying drinks Katinat is also highly appreciated for its beautiful and convenient store space and very dedicated and attentive service staff.
With all these advantages, Katinat's menu products priced from 3,000 KRW - 5,500 KRW are reasonable and the brand can serve many different customer segments. Group coffee drinks cost around 3,500 KRW - 5,500 KRW The group of tea drinks costs around 3,000 KRW - 5,000 KRW The cakes are priced from 2,500 KRW - 4,000 KRW.
In Korea, our drinking glasses are still classified into 2 sizes M and L with a price gap of 500 KRW - 1,000 KRW between the two sizes to serve the diverse financial capabilities of customers Make sure that the drinks of the Katinat brand have a "suitable" taste and are also "affordable" with the target audience being young people - mainly students, and office workers with stable incomes and love the experience.
Evaluating and controlling
4.1 Create Attention _ Use “Influencer Marketing”
The strategy of creating attention through Influencer Marketing has brought a significant number of customers to the store, leveraging interactions and customer engagement across the channels of the brand ambassadors Additionally, it is essential to develop creative and engaging content, seamlessly integrate it, and monitor the influencer's activities to ensure content is shared as planned Finally, adherence to regulations between businesses and brand promoters is crucial, avoiding unwarranted errors and fostering a lasting relationship for both parties.
4.2 Generate interest _ Communicating through social networking sites
For a customer engagement strategy, particularly Outdoor Advertising, businesses need to ensure the following before implementation First, it's crucial to clearly define the objectives of the strategy, specifically whether it's brand awareness, boosting sales, or community engagement Additionally, selecting advertising locations and designing compelling content to reach potential customers are essential steps. Moreover, integrating it with other strategies like social media advertising is important. It's necessary to research, choose suitable platforms, and create high-quality content for the advertisements.
Monitoring the level of interaction and customer feedback after executing the strategy is essential for measuring campaign effectiveness This helps to adjust and optimize the strategy for better outcomes, ensuring consistent branding and messaging across all platforms.
4.3 Create brand trust and motivation
To attract interest and provide customers with added incentive to make purchases, businesses need to understand customer desires One effective way to create a familiar brand in customers' hearts is by implementing a loyalty program for the store's faithful patrons Businesses must choose a promotion program that aligns with the budget for the campaign Additionally, crafting clear and captivating advertising content with promotional messaging is essential to draw in customers.
After the discount strategy concludes, businesses should collect customer feedback through surveys and social media responses Based on the gathered data, businesses will adjust and enhance their approaches, creating more impactful campaigns that deliver substantial value for the future.
Some risks that businesses encounter when using the AIDA model are as follows:
Lack of interaction with customers: Businesses employing the AIDA model often focus primarily on a large number of potential customers at each stage, limiting direct interaction with customers Additionally, businesses may have constraints in gathering customer information for optimizing products according to customer needs.
Incorrect target audience: Businesses need to deploy strategies to reach the correct target audience to avoid wasting time and money Moreover, businesses need to concentrate on and excel at each stage before moving on to the next phase.
Changing consumer behavior:Customers can alter their behavior and purchase intentions at any time, as they might be attracted to a different brand during the conversion phase.
Requires extended measurement and evaluation time: Investing in a Marketing strategy following the AIDA model typically demands a certain period to observe the level of effectiveness This makes it challenging for businesses to make early decisions to drive growth.
CONCLUSION
With the mission of constantly bringing new flavors from famous lands in Vietnam and the world to customers, Katinat not only wants to stop at conquering the domestic market - Vietnam but also wants to bring porcelain mission to spread all over the world by placing its mark on the foreign market - Korea, an attractive but equally highly competitive market Based on the franchising strategy, the Katinat brand wishes to gain a position in the minds of domestic and foreign customers, specifically Korea.
After conducting in-depth research and analysis on Katinat's products in the Vietnamese market, the team decided to choose the Korean market to penetrate as well as make a marketing plan with the desire to bring the products " made in Vietnam' to the international market in particular and raise the awareness of foreign consumers about Vietnamese products in general.
However, difficulties and challenges are many when bringing their business model to Korea Inadequate in all differences such as taste, culture, habits, or consumption behavior, makes us try our best to analyze and understand the Korean market thoroughly, hoping to win support and trust , introducing the coffee flavor with unique characteristics of Vietnamese people Therefore, to successfully penetrate the market, businesses need to focus on consumer behavior and the culture of that country.
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