Final report the international marketing plan of viacol in korea

Political stability South Korea's export-oriented policy is one of the most important factors leading to the country's success: In trade, South Korea's export turnover recorded an averag

i HOA SEN MINISTRY OF EDUCATION AND TRAINING

WORLD CLASS EDUCATION

FACULTY OF ECONOMICS & MANAGEMENT

FINAL REPORT

THE INTERNATIONAL MARKETING PLAN OF VIACOL IN KOREA

Ho Chi Minh City, November 2023

Table of Contents

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11.2 Market share objective :

12 International marketing program

12.1 Market Segmentation and target market

12.1.1 Demographic segmentation variables

12.1.2 Psychographics segmentation variables

12.1.3 Geographic Segmentation Variables

12.1.4 Behavioral segmentation variables

12.1.5 Evaluating Market segment

Image Categories

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COMMITMENT

"We pledge in our own honor that this is a report our team made on our own and does not violate academic integrity We take full responsibility to the university and faculty for this commitment.”

ACKNOWLEDGEMENT

"Our team would like to express our sincere thanks to Ms Dang Truong Thuy Anh, who has accompanied my team this semester and did not hesitate to answer our questions in the most thoughtful and dedicated way."

LECTURER’S COMMENTS

Ho Chi Minh City, November 2023 LECTURER'S SIGNATURE

List of Group Member

O Present

O Design powerpoint

The smoking rate in South Korea 1s quite high South Korea the second-highest country

in terms of smoking rates among OECD countries Smoking 1s also a cause of throat diseases, so it is also a potential market for throat lozenges

The prevalence of climate change in Korea, especially in the winter has frequently led to instances of human health, which in turn has been identified as a significant factor contributing to persistent coughing among the population

Moreover, the Korean people's conscientiousness regarding their consumption habits is often demonstrated through the common practice of preparing numerous dietary supplement products Nevertheless, after these meetings, most of us cannot avoid the side effects of dietary supplements, such as digestive issues, nutrient imbalance, blood sugar fluctuations, and so on

Due to the aforementioned issues, many people when they get sick, especially prolonged cough, choose to utilize some of the soaked candy dietary supplements as a reliever Indeed, to understand the customer behavior, the thoughts of Korean consumers, our team decided to choose the Viacol - soaked candy dietary supplement product of Vietnam for the Korean market with the desire to expand the experience and towards

comprehensive health

A Introduce company:

1.1.2 Mission statement & vision:

"Live happily, live healthily, in harmony with nature"

The mission is to research health-protecting foods to improve health and reduce the risk

of disease Not only does Vietnat research and learn about natural medicines to help improve health, it also always listens to customer feedback and provides thoughtful care services The business always maintains relationships with distributors and retail channels and always has a commission policy for related parties

1.1.3 Product line — Vietnat:

Lozenges

O Vietnat ginger candy

O Viatux extra cough lozenges

O Viaol lemon balm lozenges

O Viacol lozenges

Syrup

O Viatux clogged syrup

A Macro Environment of Kora

1 POLITIC

1.1 Political structure

South Korea's politics take place within the framework of a presidential parliamentary democratic republic, in which the President is the head of state, and a two-party system Executive power is exercised by the government Legislative power is given

to both the government and the National Assembly The current Korean state apparatus includes: the President, the executive branch, the legislature, the judiciary, and other enforcement and administrative agencies from central to local (Wikiwand,

2017)

The President in Korea is the head of state, elected directly by the people for a 5-year term and cannot stand for re-election The President's important roles include representing the nation, running the government, commanding the military, and managing foreign policy The President also has a role in proposing and promoting the implementation of laws, but cannot dissolve Congress often plays an important role in proposing and signing international agreements (Wikiwand, 2017)

The National Assembly in South Korea is a legislative body, consisting of 299 members serving a 4-year term The main function of the National Assembly is to legislate, and for a decision of the National Assembly to take effect, it requires the attendance of more than half of the total number of delegates and the affirmative vote

of more than half of the members attending the session The National Assembly also has the power to approve the national budget and perform a variety of functions, including the power to decide on foreign policy, declare war, and control national affairs, ratifying treaties international trade, Members of Congress are often involved

in legislating and deciding on the ratification of these trade agreements

In South Korea, executive power belongs to the President, who performs executive functions through the Government State Council consisting of 15 to 30 members, including the Prime Minister and ministers The Prime Minister is appointed by the

President and approved by the National Assembly The Government usually carries out the negotiations and negotiates the details of trade agreements In Korea, the judicial system includes the Supreme Court and regional and local courts (Wikiwand, 2017)

1.2 Political climate

International analysts say that, in nearly 7 decades of confrontation, 2017 was the year relations between the US, South Korea and the Democratic People's Republic of Korea were at their worst, with the risk of conflict and war increasing could erupt at any time However, entering 2018, the relationship between the Democratic People's Republic of Korea and South Korea suddenly warmed, which analysts considered a

"change of direction" from confrontation to dialogue Leaders of both regions have signaled their policy of peaceful dialogue to denuclearize and end the conflict Regularly organize high-level exchanges to continue discussing measures to reduce tensions and enhance cooperation in the fields of defense and military; Expand people-to-people diplomacy activities and organize sports and cultural exchange events The import-export trade industry is no longer affected but continues to develop In 2018, when the trade conflict took place, the Korean Government always strived to improve public policy as well as complete regulations on technical trade barriers to facilitate trade development After the economic crisis, Korea changed its trade policy and tax reform to contribute to growth and attract trade and investment Korea has had new strategies in trade policy With the "Souther trade policy", along with the export of new technology products, the Korean state continues to create a prosperous country in Northeast Asia (Han Quoc va Trieu Tien ky Hiep dinh dinh chien , 2023) (My - Han: Cung co quan he dong minh, 2018)

1.3 Political stability

South Korea's export-oriented policy is one of the most important factors leading to the country's success: In trade, South Korea's export turnover recorded an average annual growth of 16% from 1961 to 2019 In 2010, Korea became the 7th largest

exporting country in the world In 2019, Korea's export turnover reached 542.2 billion USD, in 2020 it was 512.8 billion USD In 2019, Korea's foreign currency reserves amounted to 408.8 billion USD As of the end of December 2020, Korea's foreign exchange reserves reached 443.1 billion USD; By the end of November 2021, it reached 463.91 billion USD Accordingly, the living standard of Korean people is considered to be quite high Always paying attention to improving the business environment, policies that encourage investment and innovation are factors leading to economic success South Korea has devoted more attention to technological development and innovation to promote growth Innovation and technology are key factors that help strengthen Korea's import and export competitiveness However, due

to South Korea's relatively limited geographical size, natural resources, and population size, an aging population adds to the threat that the South Korean economy could fall behind its peers other developed countries ( Thuc tien trien khai FTA cua Viet Nam voi Han Quoc va Nhat Ban , 2022)

Korea, a country that has a lot of economic trade with Vietnam Vietnam and Korea have also signed and implemented FTAs including the ASEAN-Korea Trade in Goods Agreement (AKFTA), the ASEAN Trade Agreement Vietnam-Korea free trade (VKFTA), (RCEP) ( Thuc tien trien khai FTA cua Viet Nam voi Han Quoc va Nhat Ban, 2022)

Korea is Vietnam's comprehensive strategic partner by 2022, the third largest trade partner (after China and the United States), and the third largest export market (after the United States and China) Vietnam's second largest import market (after China) (Yonhap), 2019)

1.4 Assessment

In terms of political stability, in general, Korea is considered to be the focus of competing interests among large countries, such as China, Japan, Russia and the United States Korea is always considered an important factor in competition The competition for regional influence among major countries 1s largely due to the

country's strong economic growth, which has helped improve living standards for the majority of the population The government has also been successful in managing ethnic tensions, which have caused instability in other countries in the region The country has a young and growing population, a low-cost workforce, and a strategic location from which companies can benefit from starting business here With the nght policies, Korea can become a major economy in the region

2 LEGAL

2.1 Constitution of country

The development and revision of the Korean Constitution has gone through many different stages, including important events such as coups, presidential assassinations, and changes in political power The Restoration Order was ended after the assassination

of the president, and a new Constitution was adopted in 1980, creating the current Republic of Korea This constitution limited presidential terms and _ prohibited constitutional amendments for expanded governing powers While the new Constitution eliminates some undesirable provisions in the previous Constitution, it still grants great power to the president and imposes restrictions on freedom of speech and political activity (Constitutional history of Republic of Korea, 2018)

The Korean Constitution was amended in 1987 to strengthen democracy and express the aspirations of the people This amendment restored presidential election by direct popular vote, limited presidential terms to five years, and increased the power of the legislature to check the executive branch Despite the increase in legislative power, the president's broad powers were maintained The Korean Constitution has not been amended since

1987 The 1987 Korean Constitution established the principles of democracy and the rule

of law in Korea It recognizes fundamental democratic and legal principles, mcluding those relating to the national economy

Below are some key points regarding the relationship between Korea's 1987 Constitution and the national economy: Respect for economic freedom: The Constitution recognizes the importance of economic freedom for individuals mdividuals and businesses It recognizes the nght of individuals and businesses to engage in economic activity freely and emphasizes the role of innovation and individual initiative in economic endeavor

Government Regulation : While respecting economic freedom, the Constitution also gives the government the power to regulate economic activities This regulation aims to maintain economic growth, ensure income distribution, prevent market disruptions, prevent abuse of economic power and promote economic democratization Balanced Regional Development: The Constitution commits to balanced economic development, including policies that protect and promote small and medium-sized enterprises (SMEs), stabilize agricultural prices, and maintain supply stability demand for agricultural products

International Trade: The Constitution recognizes the importance of mternational trade and authorizes the government to regulate and coordinate foreign trade activities It encouraged foreign trade while giving the government the power to regulate when necessary Innovation and technological development: The Constitution promotes the development of science, technology, information resources and human resources to promote mnovation and creativity in the national economy Freedom of Information : In addition to economic provisions, the Constitution also supports freedom of information, transparency, and public participation in government activities Laws such as the Freedom of Information Act and the Administrative Procedure Act have been enacted to ensure citizens' access to information and promote transparency and accountability in government actions (Constitutional history of Republic of Korea, 2018)

2.2 Components of business laws

List business laws

The Commercial Code of Korea was promulgated on January 20, 1960 and has undergone changes and additions thereafter This law includes 6 specific parts:

General regulations: Includes regulations on traders, commercial employees, trade names and accounting books (financial reports), and commercial registration

Commercial activities section: Identify types of basic commercial activities and supporting commercial activities Basic types of commercial activities include buying and selling goods, joint accounts, secret societies, commercial representatives, commercial brokerage, transportation, public entertainment businesses, warehousing, leasing financing, franchising, and factoring

Company section: Regulations on 5 different types of companies, including partnerships, limited partnerships, limited liability companies, joint stock companies, and limited companies Describes the rights and responsibilities of members in each type of company Korean business law includes many important elements, and they have a significant impact on import and export trade activities

Here are some key factors and how they affect import and export trade:

Commercial Law: Korea's Commercial Law establishes the legal structure for domestic and international commercial activities It regulates the rules and conditions of commercial contracts, the rights and obligations of the parties, the settlement of commercial disputes and other issues related to commerce This Commercial Law also regulates the establishment and operation of businesses (Tim hieu ve he thong phap luat kinh doanh thuong mai o Han Quoc , 2022)

Import and Export Management Law: This law regulates rules and powers related to export and import activities It includes registration and confirmation of foreign trading partners, customs paperwork and procedures, goods inspection, and compliance with anti-smuggling and counterfeiting measures This law has a direct impact on international trade and helps control and manage goods shipped into and out of Korea (Linh P H., 2015)

Customs Tax Law: This law regulates customs duties and related regulations to customs value, goods classification and other tax issues It affects the value and cost of imports and exports of goods Free Trade Agreements (FTA): Korea has signed many FTAs with countries and regions around the world These FTAs have a major impact on import and export trade by reducing or eliminating tariffs and facilitating trade and investment For example, FTAs enable Korean goods to be exported to partner markets without having to pay import taxes Freight Regulations: Korea has regulations on freight transportation and logistics, including Laws on rail, sea, road, and air transport These regulations regulate the carriage of goods, safety and insurance during transport (Doi thoai chinh sach thue - hai quan voi doanh nghiep Han Quoc, 2022)

In total, Korean business law plays an important role in managing and regulating domestic and international trade It can create opportunities or challenges for businesses involved im import-export trade and can affect their performance and profitability in the process

2.3 International Trade Agreement

Korea is a member of APEC and aims to establish a Free Trade Area among member countries by 2020 APEC proposes principles such as investment liberalization, tanff reduction, deregulation , government procurement and intellectual property protection Korea has many Free Trade Agreements (FTAs) with various countries and regions, including ASEAN, Australia, Canada, China, Europe, India, US, Turkey, and many others They are also members of the World Trade Organization (WHO), the Organization for Economic Cooperation and Development (OECD), and have signed agreements related to trade and intellectual property protection (Mang luoi FTA cua Han Quoc du kien se mo rong trong nam 2021, 2021)

The United States and South Korea signed the United States-Korea Free Trade Agreement (KORUS FTA) on June 30, 2007 If approved, the Agreement will be a significant free trade agreement America's most important trade in more than 16 years The U.S International Trade Commission estimates that South Korea's reduction In tariffs and tariff quotas on goods would add $10 to $12 billion to the annual Gross Domestic Product of the United States and about $10 billion USD into annual commodity exports to Korea Under the FTA, nearly 95% of bilateral trade in consumer and industrial products will be duty-free within three years from the effective date of the FTA, and most remaining tariffs will be eliminated within 10 years As the first FTA of the United States with a North Asian partner, the Free Trade Agreement between Vietnam and Korea (VKFTA) was signed on May 5, 2015 and officially took effect from December 20, 2015 Compared to the ASEAN - Korea FTA (AKFTA), VKFTA has more incentives that the Parties give each other in the fields of goods, services and investment However, VKFTA does not replace AKFTA These two FTAs coexist and businesses can choose to use the more favorable FTA (Cac hiep dinh do the he moi va tac dong doi voi kinh te Viet Nam, 2020)

2.4, Assessment

Commercial law in Korea has undergone significant reforms and adjustments to facilitate business activities and promote economic growth Participating in Free Trade Agreements (FTAs) plays an important role in expanding trade opportunities and creating

a level playing field for domestic and international businesses

Korean Commercial Law is important in creating favorable conditions for

Viacol belongs to Vietnat company and other businesses to promote domestic supply and expand business activities in Korea Thanks to that, Viacol can easily reach customers and bring significant opportunities for new businesses to enter the market Markets like Viacol, a functional food market in Korea, are experiencing significant growth tell With economic growth and increased health awareness, consumers are becoming increasingly interested in using functional food products to supplement their nutrition and maintain their health This creates opportunities for functional food businesses to expand operations and meet market demand The cough candy market also has growth potential With growing demand for products that help minimize the impact of tobacco on health, cough lozenges are attracting consumer attention (Doi Net Ve the che Nha nuoc Han Quoc, 2010), (Cach Han Quoc ung xu voi Nhat, Trung Quoc, Trieu Tien trong chien luoc

an ninh moi, 2023), (Xuat khau cua Viet Nam sang Han Quoc va Nhat Ban con rat khiem ton, 2023), (How Did South Korea's Economy Develop So Quicky ?, 2018), (International trade policy of South Korea and lessons for Vietnam to develop its international trade, 2020), (Tim hieu ve he thong phap luat kinh doanh thuong mai o Han

Quoc, 2022),

3 Economic

3.1 GDP Growth

Korea's GDP growth has fluctuated strongly in recent years The country's economic growth in 2022 is on track to decline sharply, due to weakening exports, in the context of increasing economic recession stemming from strong monetary tightening policies both domestically and abroad The International Monetary Fund (IMF) has forecast South Korea's economic growth outlook at 1.4%, due to "persistent challenges" in the global economy Despite the contraction in the government sector, GDP growth still recorded an increase of 0.6% (annual: 2.4%), driven by private sector expansion, indicating an economic slowdown has decreased (South Korea GDP Growth Rate, 2023)

Table 1: GDP Growth (South Korea GDP Growth Rate, 2023)

It is worth mentioning that Korean companies have long been major investors and trading partners of Vietnam Korea has also become Vietnam's third largest trade partner with bilateral tumover in 2021 reaching 78 billion USD This also clearly shows the strong economic relationship of the two countries This emphasizes Vietnam's position as one of the countries exporting goods to Korea Business connections and trade flows between Korea and Vietnam continue to grow steadily over time

-8000 -10000 -12000

14000 Oct 2022 Jan 2023 Apr 2023 Jul 2023

Table 2: Trading Statistics

(South Korea GDP Growth Rate, 2023)

3.2.1 Export condition

According to TradingEconomics data, South Korea's export turnover in January 2023 decreased by 16.6% over the same period last year, to 46.27 billion USD However, as of August 2023, exports in Korea increased to 51.88 billion USD (South Korea: Exports and imports fell in December as global demand weakened, 2023)

57191679 58000

54990 55120 56000

54248.3

54000 52437.167

0ct 2022 Jan 2023 Apr 2023 Jul 2023

Table 3: Export Condition

(South Korea GDP Growth Rate, 2023)

3.2.2 Import condition

Imports to South Korea shrank 22.8% year-over-year to USD 51.0 billion in August

2023, compared with market estimates of a 23.2% fall and a final 25.4% plunge a month earlier

China 1s the largest source of imports (21% of total imports), followed by the US (12%), Japan (9%), Saudi Arabia, Vietnam, Australia and Germany (4% each) Taiwan, Russia and Qatar (3% each) and Kuwait, Malaysia, UAE and Indonesia (2% each) (South Korea: Exports and imports fell in December as global demand weakened, 2023)

Table 4: Import Condition

(South Korea petrochemical makers, refiners turn to North African naphtha to replace Russian supplies, 2023)

3.2.3 Trade deficit

South Korea is heavily dependent on international trade with its largest trading partners including China, the US and Japan The country has recorded a consistent trade surplus since 2008, except mn 2022 when the war in Ukraine significantly increased the cost of oil and food imports

South Korea unexpectedly posted a trade surplus of 0.87 billio in August 2023, swinging from a deficit of 9.39 billion USD in the same month last year, falling short of market expectations of a gap of 0, $4 billion, a preliminary figure shows This is the third consecutive month of trade surplus as exports fell less than imports Sales fell 8.4% year- on-year, the 11th consecutive month of decline, amid weak demand for semiconductors and petroleum products and falling chip prices (Kinh té Han Quốc tăng trưởng vượt kỳ vọng của thi truong, 2023), (Imports Continue Slow Climb Despite Cuts im 2023 Forecast, 2023)

-8000 -10000

~12000

14000 Oct 2022 Jan 2023 Apr 2023 Jul 2023

Table 5: Trade Deficit

(South Korea GDP Growth Rate, 2023)

3.3 Labor force and unemployment in country

According to TradingEconomics, the country's labor market is growing favorably, with key indicators showing positive growth momentum, including an expanding labor force, higher employment rates, and unemployment and underemployment rates decreased compared to the previous quarter South Korea's seasonally adjusted unemployment rate fell to a record low of 2.4% in August 2023, down from 2.8% the previous month This is the lowest level since the data series began in June 1999 The number of people employed reached 28.67 million in August, up 268,000 from a year earlier The labor participation rate in South Korea is 64.4% in August 2023

New job additions in South Korea rebounded in August after slowing for four consecutive months, but growth was largely led by the elderly The number of employed people reached 28.67 million in August, up 268,000 from a year earlier (South Korea's economy faces rising headwinds in 2023, 2023)

Korea's unemployment rate has decreased, meaning the proportion of people with income

in Korea is high due to the rapid economic recovery This is a favorable market for Viacol because Koreans are willing to spend money to buy healthy products

Oct 2022 Jan 2023 Apr 2023 JuL 2023 a

Table 6: The data of labor force and unemployment

(South Korea GDP Growth Rate, 2023)

3.4 Inflation rate

The inflation rate in South Korea is currently 3.4% as of August 2023 The increase was driven by rising global commodity prices, the won's depreciation and growing domestic demand in South Korea's stable economy

Oct 2022 Jan 2023 Apr 2023 Jul 2023

TRADINGECONOMICS.COM | STATISTICS KOREA

Table 7: Inflation rate

(South Korea GDP Growth Rate, 2023)

3.5 Assessment

Although Korea's GDP growth fluctuates, there are still developing countries That shows economic vitality and a growing consumer market in Korea — attractive factors for companies considering entering or expanding Export growth in key sectors also underscores Korea's strength as a manufacturing and export base driven by high technology and advancement

The rapid economic recovery and reduced unemployment rate are factors that make the Korean market very good for Viacol products Korea's trade surplus is increasingly recovering and Korea has long been a major trading partner of Vietnam This creates an advantage when exporting Viacol to the Korean market Persistent inflationary pressures from global commodity prices and currency depreciation also need to be carefully monitored due to its impact on costs Pricing strategy must be flexible

In short, Korea's position has long been strong in the international market, so careful management of macroeconomic risks, human resource development and supply stability are the keys to success sustainable work there (Korea's inflation hits lowest level in almost a year in February, 2023), (Korea’s economy to slow to 2.2% next year after inflation at 24-year high this year: OECD, 2022)

4 Culture environment

4.1 Aesthetics

With high income, Koreans do not care about price but they are very concerned about product quality and product safety Koreans have a preference for products with eye- catching colors and products with outstanding, rich designs In particular, it 1s necessary

to pay attention to the 5 traditional Korean colors: blue, red, yellow, white, black Viacol products' main packaging colors are blue and white, so they are suitable for this place

4,2 Music, drama, dance

When it comes to Korea, nightclubs and pubs are indispensable Although smoking is prohibited in public places, you can still smoke in nightclubs and pubs if allowed The number of smokers in nightclubs and bars 1s very large and to avoid affecting others, they need to use lozenges to reduce bad breath or protect their throat This method is very convenient because the lozenges can be carried with you at all times because of their convenience and compactness

4.3 Religion

Korean society is imbued with Confucian values, so Koreans highly respect etiquette The habit of giving gifts is very common here They often choose healthy products to give gifts to each other such as functional foods This is one of the potential markets for Viacol

Furthermore, due to Confucianism, there are also inadequacies such as things that men can do but women cannot do Many women said they were scolded by strangers on the street just for smoking When smoking, Korean women must avoid the eyes of others They also often have to keep their smoking habits a secret from their boyfriends, so they brush their teeth and use perfume to eliminate the smell of cigarette smoke before going

on a date But when lozenges are available, women can carry lozenges with them to eliminate bad odor in the mouth and reduce sore throat when smoking

4.4 Language

Korea is a country with high national pride, that's why their main language is Korean So when designing product packaging, Viacol must pay attention not only to the appearance but also to the language on tt

4.5 Smoke Culture

Smoking is a common activity in South Korea, and it is often seen as a way to socialize and build relationships However, there is a growing awareness of the health risks associated with smoking, and many people are trying to quit smoking The prevalence of tobacco use is still high, especially with the rise of novel tobacco products like e- cigarettes and heat-not-burn tobacco products According to the Korean Statistical Information Service, around 32% of men aged 15 and above smoke daily This makes South Korea the second-highest country in terms of smoking rates among OECD countries There are socioeconomic mequalities in smoking prevalence according to gender, income, education, and occupational class

4.6 Sumary

Korea has unique cultural characteristics and high national pride So serving the consumption needs of Korean people is not as simple and stereotypical as other markets Understanding those needs to best serve consumers requires careful work (South Korea, 2023), (Dan So Han Quoc, 2023), (OECD Better Life Index, 2015), (Tong quan ve dat

nuoc Han Quoc, 2018),

5 Geographical Setting

5.1 Topography

Koreans inhabit the southern half of the mountainous Korean peninsula divided into four general areas:

Eastern region: this region is characterized by high mountains and coastal plains

Wester region: this region is made up of coastal plains, river basins and hills

Southwest region: this region is made up of mountains and valleys

Southeast region: this region is dominated by the large Nakdong River basin

Korea is a country with a high smoking rate in both men and women The cause stems from the history of smoking in the 1600s and the climate in Korea For this reason, importing Viacol lozenges is extremely effective and has strong development potential

(The Geography of the Koreas, 2023), (South Korea, 2023)

5.2 Transportation

Korea is a country with the most outstanding public transportation system in the world Korea has an extensive transportation network including railways, highways, bus routes, ferry services and airways Korea has long enacted laws banning smoking in public places, but still builds many places for smoking For that reason, Viacol will target their smoking habits lead to throat diseases and develop the market in this country (Transportation in Korea, 2006-2023), (Transportation in South Korea, 2023)

5.4 Summary

In short, with its geographical location, public transportation system, and climate, Korea has become a country that can develop product lines about throat lozenges Importing Viacol lozenges is extremely reasonable, it has herbal ingredients such as mint and basil that can solve problems of sore throat and keep the body warm as well as solve basic problems about health

6 Social Enviroment

6.1 Family

Current families in Korea are one-generation nuclear families (families without children

or single families) and two-generation families (parents and children) This is the current mainstream family model in Korean society, in which husband and wife are the center of the family Therefore, families will now tend to use functional foods to protect the body

On the other hand, the rate of Koreans smoking is very high, which will lead to a tendency to use products like throat lozenges, which is also what Viacol is aiming for

6.2 Education

Korea is famous for its high educational standards The country consistently ranks among the top countries for global education Higher education is an extremely serious issue in Korean society, where it is considered one of the basic foundations of Korean life With adequate education that smoking is harmful to health combined with the fact that since

2013, smoking in public places in Korea has been illegal, the rate of student smoking has decreased The smoking rate among people with lower income is higher than that of people with higher income Therefore, people tend to use foods that protect the body such

as throat lozenges, thereby showing the potential for developing this product in Korea

6.3 Demographics

The legal age to smoke in Korea is 19 years old However, Korea does not ban people under 19 years old from smoking, but will limit the sale of cigarettes to people under 19 years old According to a survey conducted in Korea in 2021, about 33% of men smoke cigarettes, while only 5.5% of women smoke The proportion of smokers m Korea is mainly men Because the proportion of smokers in Korea is so high, they will tend to use throat lozenges products, which is a good condition to sell products here

6.4 Social Classes

Specifically, the difference in cigarette smoking prevalence between those with the highest and lowest household incomes was 11.8% among males and 5.4% among females On the other hand, the lowest rates were found to be among those with college and higher education levels For males, smoking was most prevalent among technicians and mechanics (51.6%), service and sale workers (51.4%), and simple laborers (49.3%) For females, smoking was most prevalent among service and sales workers (10.8%), simple laborers (8.2%), and agriculture, forestry, fishing workers (5.0%) While “rural” regions showed the highest smoking rates among males, “other urban city” showed the highest smoking rates among females The smoking rate among people in manual labor jobs is higher than that of people in non-manual labor jobs

6.5 Living standards and leisure

The income rate of Korean people is very high and the rate of smokers in Korea is also higher than other countries in the OECD, so the number of people who can buy cigarettes

to smoke is very large The smoking rate among people with lower education is higher than that of people with higher education

6.6 Sumary

With such information, it is reasonable to export lozenges for smokers in Korea Since Korea is a country with a very high smoking rate, it is necessary to strongly target products at heavy smokers, especially adult and older customers (Religion in South Korea, 2021), (design, featured articles, visual art exploring the aesthetics of korea with visual language and art, 2023)

7 Technogical

Pharmaceutical manufacturing technology in Korea

Korea's pharmaceutical production technology is highly appreciated globally The vast majority of pharmaceutical distributors are pharmacies, of which there are over 23.7

thousand across the country, representing over 83 percent of all distributors

(South Korea: pharmaceutical distributors | Statista) Major pharmaceutical players are concentrated in and around major hubs

In particular, Korea's pharmaceutical manufacturing has seen robust development In

2022, pharmaceutical spending in South Korea amounted to around 1.7 percent of the total Gross Domestic Product (GDP)

Pharmaceutical industry in South Korea - statistics & facts | Statista This represents a slight increase from the previous year This compounded annual growth underscores the upward trajectory of Korea's pharmaceutical production amid rising health care spending and rising incidence of chronic diseases If growth is maimtained, Korea can consolidate its position as the region's leading pharmaceutical hub (1)

Healthcare Data in Korea