Freitag, 7. März 2014

Russia and the Far East

Russia is an European country, but also a neighbor of (North) Korea. Prof. Dr. Werner Lehfeldt from Georg-August University in Göttingen/Germany gives a lecture about Russias way to the Far East on April 30th and May 7th.

On may 7th, we, the French language and literature students Yeondoo Jang, Hyewon Tak, Sungmyung Seo, presented a product that gained huge success in Russia, Doshirak.

Doshirak is a cup noodle that is produced by the company “Yacult”. Before the story of “Doshirak”, Korea Yacult and it is 100% Korean company. At the beginning of this company’s foundation, it was incorporated with the investment of Japanese. But today, it is exactly Korean company.
The reason why did we choose “Doshirak” as the subject of our presentation, it’s because the way that this cup noodle gained success in Russia is different from others. Generally, when a company wants to expand its market place, it has to establish a base in domestic market. But in case of “Doshirak”, although it did not succeed in Korea, it showed a big share of Russian market.
The expansion of “Doshirak” passed three steps.
First, after 1990’s establishment diplomatic ties with Russia, many Russian small traders bought “Doshirak” and tasted them. Soon, they became attracted by the flavor and they spread products in the Far East.
Second, since the first presentation in Russia, “Doshirak” won the popularity. So, who saw the possibility of success, Korea Yacult concentrated on aggressive marketing. Also in 1997, they built a business office in Vladivostok and carried forward the export.
Third, when they faced a limit of the export, for example duty and distribution costs, they constructed a local production line. Due to the constant marketing that we will find out in next part, “Doshirak” could achieve the high sales.

Successful marketing strategies
1) Multidomestic corporation
Yacult is a multidomestic corporation. In Korea the cause of Doshirak's failure is a mild taste. But it is strenghs in Russia beacause almost Russia food is oily and mild. So Yacult produces Doshirak addedly new flavors in the light of local's favorites. such as chicken, mushroom, pork, beef, and prown. Those products are not in Korea.
The interesting point is about mayonnaise. Russians like it, so they added it in cup noodle. Yacult grasped their culture and developped ' Doshirak plus' which has mayo sauce. Also useful fork in Doshirak captivated Russian's heart. Localization strategy is the first reason of success.

2) Social economic aspect
Russians usually eat simply. They eat tomato, salads and black rye bread. In Russia, eating out costs is extremely expensive. For instance, the starbuck coffee costs about 8000 won and whopper set costs about 10000 won into Korean currency. But in this environment, the cost of Doshirak is from 800 to 1400won. So Yacult promotes thus “Doshirak is a meal that affordable”
Yacult discoverded that Russians like rectangular container for train travel. Because of square stability and insulation. They don’t have to worry about spill a cup noodle in train. After eating it , they reuse the container as plates and flowerpot. So Doshirak makes an image “Eco-friendly companies”. Social economic aspect is the second reason of success.

3) Commercials
Doshirak changed wrapping paper in their trademark for give a fresh image. The 99% ad of food company is Tv commercial. And also Doshirak participate as sponsor in famous  programs. Based on the humorous concept, Doshirak is rising their sales and brand awareness. So friendly marketing is the third reason of success.

Developement Plans of Doshirak
The corporation achieves good image through the cultural marketing, when multinational corporations go into the foreign country.

So, development prospect of Dosirak compare Samsung. Because, Dosirak need benchmark in order to grow major company. Benchmarking is the search for the best practices among competitors or noncompetitors that leda to their superior performance. The basic benefit of benchmarking is that can improve quality by analyzing and then copying the methods of the leaders in various fields.
An Organization’s culture has an effect on what employees do, depending on how strong, or weak, the culture is. Dosirak have to achieve strong culture because employees accept the organization’s key values and the greater their commitment to those values. Strong cultures- those in which the key values are deeply held and widely shared- have a greater influence on employees than do weaker cultures.

More Korean corporations are expanding their businesses into other countries. Overseas expansion is most attractive business at the same time, very difficult assignment. Dosirak has an unprecedented growth in Russia. We are proud of this success. This corporation achieved promotion thorough market research and localization strategies. In Russia, Dosirak is the perfect example of that.?

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