1 | P a g e

A. Executive Summary

PRIMADONNA is a strong and competitive shoe brand that always carries the season’s

latest trends and must-haves. This is the unique identity that differentiates PD from competition.

With an intense commitment to carry the season’s latest trends and must haves, it now has grown

into a retail force of 42 fashionably dynamic outlets. This amazing leap can only be attributed to

Primadonna’s vision to cater to women’s various lifestyle needs.

Given this profile of the local brand indicates a financial stability and strong competitive

characteristic of the firm. Seeing the potential of the brand, it can make a breakthrough by

exporting its products to equally or even more profitable country. Known for being one of the

fashionable countries and being developed country, South Korea is the best choice. The country

is a challenging one to penetrate because of its culture, and complex customs regulations. But

still, its apparel and footwear industry has positive growth over the years and clothing is one of

the fast growing imports in the country.

Direct exporting is recommended to be done where Primadonna can carefully formulate

strategies in entering an international market.The marketing mix formulated is a combination of

globalization and localization. The brand will be communicated through the country’s official

language which is Hangul, given that South Korea is an ethnocentric country and very few of

them is fluent in English.

Since the brand will be on introductory stage in South Korea, market penetration will be

the major goal of the brand and if this will be achieved, other objectives will follow. The Action

program created focuses on attaining this goal.

Primadonna will surely bring the Koreans what they give to the Filipinas; a different shoe

to wear for a different you.

2 | P a g e

B. Company Profile

Primadonna started with 3 stores in 2007. With an intense commitment to carry the

season’s latest trends and must haves, it now has grown into a retail force of 42 fashionably

dynamic outlets. This amazing leap can only be attributed to Primadonna’s vision to cater to

women’s various lifestyle needs. PRIMADONNA is a strong and competitive shoe brand that

always carries the season’s latest trends and must-haves. This is the unique identity that

differentiates PD from competition.

C. Cultural Analysis

I. History

Since its founding however, the area of present-day South Korea was invaded several times

by neighboring areas and thus, its early history was dominated by China and Japan. In 1910,

after weakening Chinese power over the area, Japan began colonial rule over the Korea which

lasted 35 years.

At the end of World War II in 1945, Japan surrendered to the Allies which resulted in the end

of the country's control over Korea. At that time, Korea was divided into North and South Korea

at the 38th parallel and the Soviet Union and the United States began to influence the areas. On

August 15, 1948, the Republic of Korea (South Korea) was officially founded and on September

9, 1948 the Democratic People's Republic of Korea (North Korea) was established.

Two years later on June 25, 1950, North Korea invaded South Korea and began the Korean

War. Shortly after its beginning, a coalition led by the U.S. and the United Nations worked to end

the war and armistice negotiations began in 1951. In that same year, the Chinese entered the

conflict in support of North Korea. Peace negotiations ended on July 27, 1953 at Panmunjom and

formed the Demilitarized Zone. According to the U.S. Department of State, an Armistice

3 | P a g e

Agreement was then signed by the Korean People's Army, the Chinese People's Volunteers and

the United Nations Command which was led by the U.S. South Korea never signed the

agreement and to this day a peace treaty between North and South Korea has never officially

been signed.

Since the Korean War, South Korea experienced a period of domestic instability which

resulted in a change it is government leadership. In the 1970s, Major General Park Chung-hee

took control after a military coup and during his time in power, the country experienced

economic growth and development but there were few political freedoms. In 1979, Park was

assassinated and domestic instability continued through the 1980s.

In 1987, Rohm Tae-woo became president and he was in office until 1992, at which time

Kim Young-sam took power. Since the early 1990s, the country became more stable politically

and has grown socially and economically.

II. Geographical Setting

A. Location

South Korea is located in East Asia, on the southern half of the Korean Peninsula jutting out

from the far east of the Asian land mass. The only country with a land border to South Korea is

North Korea, lying to the north with 238 km of border running along the DMZ. South Korea is

mostly surrounded by water and has 2,413 km of coast line along three seas. To the west is the

Yellow Sea, to the south is the East China Sea, and to the east is Ulleung-do and Liancourt Rocks

(Dokdo) in the Sea of Japan (also called East Sea). Geographically, South Korea's land mass is

approximately 100,032 square kilometers. 290 square kilometers of South Korea are occupied by

water. The approximate coordinates are 37° North, 127° 30 East.

4 | P a g e

B. Climate

Part of the East Asian Monsoon region, South Korea has a temperate climate with four

distinct seasons. The movement of air masses from the Asian continent exerts greater influence

on South Korea's weather than does air movement from the Pacific Ocean. Winters are usually

long, cold, and dry, whereas summers are short, hot, and humid. Spring and autumn are pleasant

but short in duration. Seoul's mean temperature in January is −5 to −2.5 °C (23.0 to 27.5 °F); in

July the mean temperature is about 22.5 to 25 °C (72.5 to 77.0 °F). Because of its southern and

seagirt location, Jeju Island has warmer and milder weather than other parts of South Korea.

Mean temperatures on Jeju range from 2.5 °C (36.5 °F) in January to 25 °C (77 °F) in July.

The country generally has sufficient rainfall to sustain its agriculture. Rarely does less than

750 millimeters (29.5 in) of rain fall in any given year; for the most part, rainfall is over 1,000

millimeters (39.4 in). Amounts of precipitation, however, can vary from year to year. Serious

droughts occur about once every eight years, especially in the rice-producing southwestern part

of the country. About two-thirds of the annual precipitation occurs between June and September.

South Korea is less vulnerable to typhoons than Japan, Taiwan, the east coast of China, or

the Philippines. From one to three typhoons can be expected per year. Typhoons usually pass

over South Korea in late summer, especially in August, and bring torrential rains. Flooding

occasionally causes considerable damage, as do landslides, given the country's generally

mountainous terrain.

In September 1984, record floods caused the deaths of 190 people and left 200,000 homeless.

This disaster prompted the North Korean government to make an unprecedented offer of

humanitarian aid in the form of rice, medicine, clothes, and building materials. South Korea

accepted these items and distributed them to flood victims.

5 | P a g e

Month Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

Rainfall DRY RAINY / SNOWY

Temperature COLD HOT COOL

Season Cold Dry Hot Dry Rainy

C. Topography

Early European visitors to Korea remarked that the land resembled "a sea in a heavy gale"

because of the large number of successive mountain ranges that crisscross the peninsula. The

tallest mountains are in North Korea. The tallest mountain in South Korea is Mount Halla (1,950

meters), which is the cone of a volcanic formation constituting Cheju Island. There are three

major mountain ranges within South Korea: the T'aebaek, and Sobaek ranges, and the Chiri

Massif.

Unlike Japan or the northern provinces of China, the Korean Peninsula is geologically stable.

There are no active volcanoes and there have been no strong earthquakes. Historical records,

however, describe volcanic activity on Mount Halla during the Koryo Dynasty (918-1392 A.D.).

Over the centuries, Korea's inhabitants have cut down most of the ancient Korean forests,

with the exception of a few remote, mountainous areas. The disappearance of the forests has

been a major cause of soil erosion and flooding. Because of successful reforestation programs

and the declining use of firewood as a source of energy since the 1960s, most of South Korea's

6 | P a g e

hills in the 1980s were amply covered with foliage. South Korea has no extensive plains; its

lowlands are the product of mountain erosion. Approximately 30 percent of the area of South

Korea consists of lowlands, with the rest consisting of uplands and mountains. The great

majority of the lowland area lies along the coasts, particularly the west coast, and along the

major rivers. The most important lowlands are the Han River plain around Seoul, the Pyongt'aek

coastal plain southwest of Seoul, the Kum River basin, the Naktong River basin, and the

Yongsan and the Honam plains in the southwest. A narrow littoral plain extends along the east

coast.

The Nantong is South Korea's longest river (521 kilometers). The Han River, which flows

through Seoul, is 514 kilometers long, and the Kum River is 401 kilometers long. Other major

rivers include the Imjin, which flows through both North Korea and South Korea and forms an

estuary with the Han River; the Pukhan, a tributary of the Han that also flows out of North

Korea; and the Somjin. The major rivers flow north to south or east to west and empty into the

Yellow Sea or the Korea Strait. They tend to be broad and shallow and to have wide seasonal

variations in water flow.

News that North Korea was constructing a huge multipurpose dam at the base of Mount

Kumgang (1,638 meters) north of the DMZ caused considerable consternation in South Korea

during the mid1980s. South Korean authorities feared that once completed a sudden release of

the dam's waters into the Pukhan River during north-south hostilities could flood Seoul and

paralyze the capital region. During 1987 the Kumgang-san Dam was a major issue that Seoul

sought to raise in talks with P'yongyang. Though Seoul completed a "Peace Dam" on the Pukhan

7 | P a g e

River to counteract the potential threat of P'yongyang's dam project before the 1988 Olympics,

the North Korean project apparently still was in its initial stages of construction in 1990.

III. Political System

A. Political Structure

The Government of South Korea is divided into executive, judicial, and legislative branches.

The executive and judicial branches operate primarily at the national level, although various

ministries in the executive branch also carry out local functions. Local governments are semi-

autonomous, and contain executive and legislative bodies of their own. The judicial branch

operates at both the national and local levels. The South Korean government's structure is

determined by the Constitution of the Republic of Korea. This document has been revised

several times since its first promulgation in 1948. However, it has retained many broad

characteristics; with the exception of the short-lived Second Republic of South Korea, the

country has always had a presidential system with a relatively independent chief executive.

As with most stable three-branch systems, a careful system of checks and balances is in

place. For instance, the judges of the Constitutional Court are partially appointed by the

executive, and partially by the legislature. Likewise, when a resolution of impeachment is passed

by the legislature, it is sent to the judiciary for a final decision.

Politics of the Republic of Korea takes place in the framework of

a presidential representative democratic republic, whereby the President is the head of state, and

of a multi-party system. Executive power is exercised by the government. Legislative power is

vested in both the government and the National Assembly. The Judiciary is independent of the

executive and the legislature and comprises supreme, appellate courts and a Constitutional Court.

8 | P a g e

Since 1948, the constitution has undergone five major revisions, each signifying a new republic.

The current Sixth Republic began with the last major constitutional revision in 1987.

B. Political Parties

This article lists political parties in South Korea. South Korea has a multi-party system in

which political parties have a chance of gaining power alone.

Current parties:

As of March 2014, there are four political parties present in the 19th National Assembly:

Party

Number of

Seats in

the

National

Assembly

Leader Position Comments

Saenuri Party (NFP -

New Frontier Party)

새누리당 / 새누리黨

Saenuridang

156

Kim

Moo-

sung

Right-

wing toCentre-

right

See: Conservatism in South

Korea

Conservative; formerly

called the Grand National

Party.

New Politics Alliance

for Democracy (NPAD)

새정치민주연합/

130

Ahn

Cheol-

soo

Kim

Centre toCentre-

right

See: Liberalism in South

Korea

Liberal; merged from

the Democratic Party and

9 | P a g e

새政治民主聯合

Saejeongchi Minju

Yeonhap

Han-gill the minor New Political

Vision Party.

Unified Progressive

Party (UPP)

통합진보당 /

統合進步黨

Tonghap Jinbodang

6

Lee

Jung-

hee

Left-wing

Progressive; merged from

the Party, People’s,

and a faction of the New

Progressive Party.

Justice Party

정의당 / 正義黨

Jeongeuidang

5

Cheon

Ho-sun

Centre-left

Progressive; splintered

from the Unified

Progressive Party.

1. All data are current as of September 1, 2013.

2. As of March 25, 2013 the total number of representatives is 300.

3. As of March 25, 2013 ten representatives are independents.

4. As of March 25, 2013 three representatives have lost their positions due to various reasons

and will be reelected through the next by-election scheduled on April 24, 2013.

C. Stability of Government

South Korea has a stable government with a sustainable democracy and a healthy

infrastructure. President Park Gun-shy has promised to bring “economic democratization” to

10 | P a g e

South Korea through expansion of the welfare system as well as addressing vested economic

interests.

The labor market is somewhat inflexible, which can be burdensome for private companies.

Unemployment remains low however, at 3.1%. The relationship between North Korea and South

Korea is strained and is a source of on-going political and social tension. After flaring in the

Winter and spring of 2013 the situation has since normalized.

South Korea ranked joint first in terms of political stability among 30 emerging countries,

despite security concerns related to North Korea and economic risks related to the rapidly

weakening Japanese yen. According to a report Sunday by the Eurasia Group, a New York-based

research company, South Korea scored 74 out of 100 points in its Global Political Risk Index,

putting it even with Poland. The index measures political stability based on various factors

including social and economic status.

11 | P a g e

D. Special Taxes

The Korean tax system is comprised of both national and local taxes, the latter of which are

imposed by provinces, countries and municipalities. Examples of local taxes include property

tax, automobile tax, license tax and registration tax. National taxes, on the other hand, are

currently made up of internet tax, custom duties, and education tax, international tax, which

consists of direct tax and indirect tax, is thus the most significant type of tax payable in Korea.

Meanwhile, the 1990 tax reform was undertaken to enhance the equity of the tax burden, to

strengthen the competitiveness of the manufacturing sector and to finance education and local

governments.

Special Tax for Rural Development (STRD) which is a special tax is to support the rural

community and the agricultural and fisheries industry. As a result of the UR negotiations, the

farming industry in Korea is subject to market opening. Due to the low productivity of the

Korean agricultural industry, the government enacted the Special Tax for Rural Development

in July 1994 in order to raise funds for various rural development programs.

E. Role of Local Government

The Constitution of the Republic of Korea states in Article 117 that "local governments deal

with matters pertaining to the welfare of local residents, manage properties and may, within the

limit of laws, enact provisions relating to local autonomy regulations."

Local government heads manage and supervise administrative affairs except as otherwise

provided by law. The local executive functions include those delegated by the central

government such as the management of public properties and facilities and assessment and

collection of local taxes and fees for various services.

12 | P a g e

Higher-level local governments basically serve as intermediaries between the central and

lower-level local governments.

Lower-level local governments deliver services to the residents through an administrative

district (up, my eon, and dong) system. Each lower-level local government has several districts

which serve as field offices for handling the needs of their residents. Up, my eon, and dong

offices are engaged mainly in routine administrative and social service functions.

IV. Legal System

A. Organization of the judiciary system

In Korea, judicial power is vested in the courts, which the constitution established as an

independent branch of the government. The court system functions on three levels: the Supreme

Court, appellate courts (High Courts), and district courts (including branch courts). Besides the

three-tier court system, the judiciary also operates a family court, an administrative court and a

patent court. The courts hand down decisions in litigations involving civil, criminal,

administrative, election and other matters.

There are three levels of courts. The District Court, which included a specialized Family

court, is the court of original jurisdiction – akin to trial court. Next up is the High Court, which is

the intermediate appellate court. High court is the court where an appeal from a District Court

case is heard. Finally, there is the Supreme Court, the highest court in Korea.

District Courts and High Courts are divided into geographic districts. The Chief Justice of the

Supreme Court is appointed by the President with the consent of the National Assembly, and this

term lasts for 6 years. The remaining Supreme Court Justices are appointed by the President

upon the recommendation of the Chief Justice with the consent of the National Assembly. All

13 | P a g e

other judges are appointed by the Chief Justice with the consent of the Conference of Supreme

Court Justices. This means the judges last for 10 years. Both the Supreme Court Justices and

other judges may be reappointed.

B. Code, common, socialist, or Islamic-country?

The Constitution of the Republic of Korea calls for a liberal democratic political system. Its

principles are based on the sovereignty of the people, with all the authority of state emanating

from its citizens: Separating of powers among the three branches of government, the rule of law,

and the responsibility to promote citizens’ welfare, as well as the attainment of a peaceful

unification of Korea.

C. Participation in patents, trademarks, and other conventions

The purpose of the patent system is, to accelerate the development of technology though the

protection, encouragement, promotion, and utilization of inventions, and thereby contribute to

the development of industry.

The publication of inventions leads to the accumulation and utilization of technology and the

advancement of industry.

Granting exclusive rights for the commercial usage of a patented invention promotes

commercialization, encourages the development of inventions, and leads to the advancement of

industry

Korea has patents, utility models, designs and trademarks. They can all be registered at the

Korean intellectual property Office (KIPO). Korea is a member of the Patent Cooperation Treaty

(PCT) since August 1984. Since then it is possible to designate Korea in international patent

applications filed via PCT route.

14 | P a g e

History of the Korean patent system:

1908: The Patent Decree laid the foundation in Korea for institutionalizing intellectual property

1946: The Patent Institute was established and patent laws were enacted

1961:The patent laws were divided into four industrial property laws: the Patent Act, the Utility

Model Act, the Trademark Act, and the Design Act

1977:The Korean Intellectual Property Office (KIPO) was established as an independent office

under the Ministry of Commerce, Industry and Energy

1979:Korea joined the World Intellectual Property Organization (WIPO)

1980:Korea joined the Paris Convention

1984:Korea joined the Patent Cooperation Treaty

A trademark refers to all sensible methods of expression used to distinguish one's goods from

those of another. However, since it is difficult to protect all such methods legally, the Trademark

Act places limits on the protectable constituents of a trademark. Previously, these constituents

were limited to a symbol, character, diagram, three-dimensional shape, or any combination

thereof, as well as color combinations of the mark. On July 1, 2007, protection under the

Trademark Act expanded to include a mark formed by a single color or a combination of colors,

holograms, motions, and all types of visually recognizable marks.

History of the Korean trademark system:

1908: The Trademark Decree was promulgated.

1946: The Patent Institute was established and patent laws were enacted.

1949: The Trademark Act was enacted.

1977: The Korean Intellectual Property Office (KIPO) was established as an independent office

under the Ministry of Commerce, Industry and Energy.

15 | P a g e

1979: Korea joined the World Intellectual Property Organization (WIPO).

2002: KIPO submitted an application to WIPO to join the Trademark Act Treaty.

2003: KIPO submitted an application to WIPO to join the Madrid Agreement.

Also, South Korea is a member of the Paris Convention under which any resident of a

Convention country is entitled to claim the priority date of a first application made in a

convention country as that of any subsequent application in any other Convention country within

a 6 month period. China is also a member of the Madrid Protocol for the international

registration of marks.

V. Social Organizations

A. Social Classes

The traditional gentry ( yang ban ) status was formally abolished by the Kabob Reforms

of 1894, but the legacy of the class system is seen in social psychological and behavioral

patterns. In 1994, 60 percent of South Koreans regarded themselves as belonging to the middle

class. The subjective perception of one's class position was closely correlated with one's level of

educational attainment. Eighty-three percent of those with a college education perceived

themselves as belonging to the middle class, compared with 41 percent of those with a primary

school education. In general, industrialization and urbanization have contributed to a leveling of

the napkin hierarchy in social life, but the income gap between the working classes and the

industrialist class as new power elite has grown. Family background, education, occupation, and

the general acceptance of a meritocracy are major social factors that contribute to the unequal

distribution of wealth by class.

16 | P a g e

B. Race, ethnicity, and subcultures

Korea’s population is one of the most ethnically and linguistically homogenous in the

world. Except for a small Chinese community (about 20,000) virtually all Koreans share a

common cultural and linguistic heritage. With 47 million people, South Korea has one of the

world’s highest population densities. Major population centers are located in the northwest and in

plains south of Seoul-Incheon.

South Korea is a homogeneous society with absolute majority of the population of

Korean ethnicity. In 1970, an estimate of 120,000 Chinese resided in South Korea. Due to

economic restrictions by the Korean government, the number officially fell to around 21,000

today. The actual number may be higher since many Chinese work and reside in Korea illegally.

In a 10-year period starting in the late 1990s the number of Chinese in Korea exploded.

Estimates place at least 300,000 and possibly more than 1,000,000 Chinese in Korea fall into

categories of Korean-Chinese (조선족), permanent residents and/or illegal Han Chinese

(한족)immigrants. A large Chinese community lives in Seoul's Daerim/Namguro area and a

smaller but established community in Seongnam. That Chinese-Korean community, known as

Hwakyo (화교) by the Koreans, distrusts ordinary Koreans and tend to avoid those unfamiliar to

them. Migrant workers from the Philippines and Malaysia live and work and in the main cities,

particularly Seoul. A small but growing number of foreigners related to business and education.

The number of marriages between Koreans and foreigners has risen steadily in the past

few years. In 2005, South Korea marriages to foreigners accounted for 14 percent of all

marriages (about 26,000 marriages). Many Korean agencies encourage 'international' marriages

17 | P a g e

to Chinese, Vietnamese and Thai women, adding a new degree of complexity to the issue of

ethnicity. 29,000 United States military personnel serve in Korea.

C. Business Customs and practices

When doing business in South Korea men greet each other with a slight bow sometimes

accompanied with a handshake. Maintaining eye contact is a good etiquette. In South Korean

business culture, women also shake hands. Western women doing business there will need to

instigate a handshake with Korean men.

Address people by their title or by their title and family name. First names can be used

once a relationship has been established but wait for your Korean counterpart to initiate this

change.

Prior to doing business in South Korea bring a plentiful supply of business cards. They

will be exchanged frequently. Try and have one side of the card translated into Korean.

A part of doing business in South Korea is the exchanging of gifts. It is done to secure

favours and build relationships.

Gifts are always reciprocated so bring be sure to bring some with you from your native country.

Good gifts for a first visit are office items, maybe with your logo on them. After this try and

bring items of beauty and craftsmanship. Foodstuffs will also be appreciated. Avoid overly

expensive gifts as this will require the recipient to match the value when they reciprocate.

If offered a gift, it is good etiquette to offer some initial resistance. However, after the giver

insists for the second or third time feel free to accept. Gifts are usually not opened in front of the

giver, although it may be a good idea to ask if they would like you to do so.

18 | P a g e

Prior to doing business in South Korean ensure you book any meetings well in advance.

The most convenient times for doing business are between 10:00 a.m. to 12:00 p.m. and 2:00

p.m. to 4:00 p.m. Times of the year to avoid include holidays like the Lunar New Year (around

January/February) and the Moon Festival (around September/October).

Punctuality is important in South Korea and being on time is recommended. However,

business people are busy and have hectic schedules which may cause them to be late

occasionally. Be courteous and do not display any negative emotions if someone is late to meet

you.

Before doing business in South Korea understand that personal relationships generally

take precedence over business. A first meeting is a 'get to know' affair rather than focusing on

business matters. It could take many business trips to South Korea to reach an agreement or close

a deal.

VI. Languages

A. Official Language(s)

The Koreans are one ethnic family speaking one language. They share certain distinct

physical characteristics which differentiate them from other Asian people including the Chinese

and the Japanese, and have a strong cultural identity as one ethnic family.

The Korean language is known as Hangungmal, or more formally, Hangugeo and is

spoken by more than 65 million people living on the peninsula and its outlying islands as well as

5.5 million Koreans living in other parts of the world. The fact that all Koreans speak and write

the same language has been a crucial factor in their strong national identity. Modern Korea has

19 | P a g e

several different dialects including the standard one used in Seoul and central areas, but they are

similar enough that speakers/listeners do not have trouble understanding each other.

Nowadays, many Koreans learn how to speak English for specific purposes, such as for

business, trade, academics, etc. This depicts that Korean accompany progress.

B. Spoken, versus written languages

Spoken by approximately 78 million people around the world, the Korean language has

an intriguing linguistic and cultural history. With the Korean language’s obscure history,

experience with suppression and a past peppered with unresolved questions, the fact that it

remains one of the world’s oldest living languages is all the more impressive.

Korean, although it uses tones to distinguish certain meanings, is not as heavily tonal as a

language such as Mandarin. The language does not have articles, and smaller details of meaning

are usually conveyed through affixing small modifiers to a whole word (with the base word

generally remaining unchanged). Like in Japanese, honorific is critically important in Korean–a

person must modify their speech based on their own social status in comparison to the person on

the other end of the conversation, or else come off as extremely rude.

In the same way as many other nations located close to China, the people of Korea began

writing using Chinese characters (or Hanja) in ancient times. Because classical Chinese

characters were so difficult to learn, reading and writing was restricted to the societal elite for

many centuries. In the fifteenth century, a Korean ruler had a team of scholars invent an alphabet

that would be unique to their land, known as Hangul. The 24 letters of the Hangul alphabet are

usually arranged in blocks for each syllable, superficially resembling Chinese characters, but

they in fact contain individual phonetically pronounced letters in much the same way as the Latin

20 | P a g e

alphabet. Hangul was looked down on for some time, but it enabled the underprivileged to

become literate more easily, and it became popular in the nineteenth century as Korea sought to

shake off Chinese influences. Hangul is now the official writing system in both Korean

countries.

B. Dialect

Within any language or language group there may be significant changes in speech,

vocabulary, and pronunciation. The term used to describe these changes is called a dialect. Some

words or phrases that exist in one dialect may exist or be absent from different Korean dialects.

Korea is split into North and South Korea. North and South both have multiple regional dialects.

The most common Korean Dialects in South Korea is the Gyeonggi or Seoul Dialect. Most of the

dialects are named for one of Korea’s traditional eight provinces.

Most Korean dialects are very closely related and can be easily understood by speakers

from different regions. The main exception to this appears to be the small island dialect of Jeju,

which some (but not all) linguists consider as a language all on its own. Jeju was not under direct

control of the Korean kingdoms for much of its history and developed a dialect that was different

in many respects, notably that it did not make very much use of honorific terms. The Jeju

language/dialect is critically endangered today, as most Korean dialects are becoming more alike

over time in a process known as “dialect levelling.”

21 | P a g e

D. Economic Analysis

I. Population

South Korea ended 2013 with a population of 50,219,669 people, which represents an

increase of 215,228 people compared to 2012. South Korea is no. 26 among the 184 countries

which published this information in DatosMacro.com. The female population is greater, with

25,248,655 women, representing 50.27% of the total, compared to 24,971,014 or 49.72% men.

South Korea has a high population density, with 503 people per square km and it was in position

175th in our ranking of density population in 2013.

Indeed, South Korea today has one of the lowest birth rates worldwide. In 2013, the

average South Korean woman had 1.23 children, and as stated above, the number is lower still in

Seoul. However, as recently as 1960, the average number was a staggering 6.16 children per

woman.This was one of the most dramatic decreases in fertility rates in modern history and

22 | P a g e

happened in the background of what was an almost unprecedented economic breakthrough. It

remains unclear, though, to what extent family planning contributed to South Korean stunning

economic success. It is just as likely that economic growth, which is associated with education,

women's rights and changing attitudes to family roles contributed to smaller family sizes. By

2005 birth rate reached its lowest point at 1.08 births per woman. Since then, it has slightly

increased and stabilised around 1.2 mark, remaining one of the world's lowest.

Such levels mean that if life expectancy remains stable, every following generation will

be half the size of the previous one. So far, this has not happened, but only because the dramatic

decrease in fertility rates in South Korea have coincided with dramatic improvements in life

expectancy. In the 66 years that have passed since Korea regained its independence, the average

life expectancy has increased from 44 years to 81.4 years - ahead of the US, but slightly behind

Japan.

Fast increase of life expectancy is the only reason that the population of South Korea still

continues to grow, but within few years, the decline in fertility rates will start to have an impact.

Thus by 2018, the population is predicted to stabilise around the current level, slightly above 50

million, and then begin to decline.

South Koreans may feel a great deal of pride about the fast growth of their life

expectancy. After all, they moved from being a poor third-world country in the 1960s to being

one of the world leaders in healthcare and medical services. However, in the long run, this

success will bring about unprecedented demographic changes. If projections are correct, by 2050

those over the age of 65 will constitute some 38 percent of South Korea's population. To put

things in perspective, it is expected that the share of the elderly will be 20 percent in the US

population and 25 percent in the population of UK by the same year.

23 | P a g e

II. International Trade Statistics

A. Major Exports

Nicknamed the Land of the Morning Calm, South Korea’s exports amounted to US$559.6

billion in 2013, up 53.9% since 2009. South Korea’s top 10 exports accounted for 86.3% of the

overall value of its global shipments. Based on statistics from the International Monetary Fund’s

World Economic Outlook Database, South Korea’s total Gross Domestic Product amounted to

$1.7 trillion in 2013. Therefore, exports accounted for about 33.6% of total South Korean

economic output. Given South Korea’s population of 49 million people, its total $559.6 billion in

exports during 2013 translates to roughly $11,412 for every person in the country. This compares

with a benchmark $2,545 in exports per person for the world’s total exports (assuming an

estimated global population of 7,095,217,980 per the CIA World Factbook).

South Korea is the top exporter of Passenger and Cargo Ships, Cyclic Hydrocarbons,

LCDs, Polycarboxylic Acids, Cold-Rolled Iron, Special Purpose Ships, Unprocessed Synthetic

Staple Fibers, Large Iron Containers, Other Fermented Beverages, and Cyanides.

South Korea’s Top 10 Exports

The following export product groups represent the highest dollar value in South Korean

global shipments during 2013. Also shown is the percentage share each export category

represents in terms of overall exports from South Korea.

1. Electronic equipment: $135,502,617,000 (24.2% of total exports)

2. Vehicles excluding trains and streetcars: $72,783,929,000 (13%)

3. Machinery: $59,327,144,000 (10.6%)

4. Mineral fuels including oil: $54,093,985,000 (9.7%)

24 | P a g e

5. Optical, technical and medical apparatus: $35,946,520,000 (6.4%)

6. Ships, boats and other floating structures: $35,845,842,000 (6.4%)

7. Plastics: $31,179,306,000 (5.6%)

8. Organic chemicals: $24,855,250,000 (4.4%)

9. Iron and steel: $22,275,412,000 (4%)

10. Iron or steel products: $11,181,093,000 (2%)

South Korea is a highly export-driven and industrialized economy. The above list reflects

the strong Korean focus on producing electronics, automobiles, machinery, petrochemicals, ships

and robotics. Among the top 10 exports, only ships, boats and other floating structures declined

over the 5-year period ending in 2013, posting a 15.6% slowdown. Mineral fuels including oil

were up 127.4% followed by organic chemicals at 89.8%. Major export partners are China (25

percent of total exports), ASEAN (14 percent), the United States (10 percent) and the European

Union (9 percent). Others include: Japan, India, Brazil and Paraguay. South Korea is ranked 5

with an Economic Complexity Index (ECI) of 1.73625

South Korea unemployment rate was 3.2% in 2013.

25 | P a g e

B. Major Imports

South Korea is the twelfth-richest country and number 8 importer. In 2013, South Korea

bought US$515.6 billion worth of imported products. That total is up by 59.6% since 2009. With

a lack in natural resources, South Korea has a high dependence on import of capital goods, raw

materials and industrial supplies. The country is also the 5th largest importer of oil in the world,

with 3.074 million barrels imported per day.

Top South Korean Imports from the World:

Fastest-Growing South Korean Imports 2013:

26 | P a g e

South Korea is the top importer of Crude Petroleum (20%), Petroleum Gas (6.3%),

Integrated Circuits (5.1%), Refined Petroleum (4.7%), and Coal Briquettes (2.8%). Main import

partners are China (16 percent of total imports), Japan (12 percent), United States (8 percent) and

Saudi Arabia (7 percent). Others include: the European Union (9 percent), ASEAN (10 percent)

and Australia (5 percent). Imports in South Korea increased to 44300 USD Million in September

of 2014 from 42864.82 USD Million in August of 2014. Imports in South Korea averaged

10970.71 USD Million from 1966 until 2014, reaching an all time high of 45899.19 USD

Million in July of 2014 and a record low of 38.61 USD Million in January of 1966. Imports in

South Korea is reported by the Ministry of Trade, Industry & Energy (MOTIE).

27 | P a g e

C. Trade Restrictions

C.A. Quotas

South Korea is an export-orientated country, with a total trade volume of 884.2 billion in

2010. This figure also makes them the 7th largest exporter and 10th largest importer in the world.

Since 2003, South Korea has established its network of free trade agreements to boost trade and

economic ties with other countries. Korea continues a process of economic liberalization and

deregulation, but the Republic of Korea government (ROKG) has yet to adopt a fully laissez-

faire policy where the economy and trade are concerned. The U.S. Embassy, in cooperation with

the American Chamber of Commerce (AmCham) in Korea, works actively to lift or loosen the

many regulatory trade restrictions that currently exist. Overcoming regulatory barriers to trade is

also a major focus of the U.S.-Korea FTA. Transparency, due process, public comment/appeals

procedures, and timely and written administrative procedures are among the topics that were

addressed and agreed to and which affect a number of the sector-specific elements to the

Agreement. While the South Korean state is undoubtedly centralized, rice is a sensitive topic that

had been repeatedly left untouched in Seoul’s free trade negotiations.

Currently, South Korea has 5 FTAs in effect, 3 FTAs which has concluded discussions,

and 19 FTAs under negotiation and consideration. So far, the biggest FTA of South Korea is the

Korea-US Free Trade Agreement (KORUS FTA) signed in 2007. This free trade agreement plans

to liberate 95 percent of the trade tariffs between the 2 countries. It is also US first free trade

agreement with a major Asian economy and biggest deal since the North America Free Trade

Agreement (NAFTA) signed with Japan in 1993.

28 | P a g e

South Korea's FTA includes Korea-US FTA, Korea-EU FTA, Korea-Peru FTA, Korea-

Chile FTA, Korea-Singapore FTA, Korea-India CEPA FTA, Korea-ASEAN FTA, Korea-EFTA

(European Free Trade Area). Korea has specific labeling and marking requirements for certain

products, such as pharmaceuticals, as well as for organic and functional food and food produced

through biotechnology. Country of origin labeling is required for commercial shipments entering

Korea. The Korean Customs Service (KCS) publishes a list of country of origin labeling

requirements by Harmonized System Code number. The Korean Ministry of Trade, Industry and

Energy (formerly the Ministry of Knowledge Economy) issues the KC Mark for items that fall

under its jurisdiction, formerly comprised of 13 mandatory marks, many which overlapped in

testing procedures and functions. The consolidation of these marks into the KC Mark ensures

that companies, both Korean and foreign agencies, will save time and costs due to reduced

redundancies introduced into this new system.

B. Import Taxes

Import duty and taxes are due when importing goods into South Korea whether by a

private individual or a commercial entity. The valuation method is CIF (Cost, Insurance and

Freight), which means that the import duty and taxes payable are calculated on the complete

shipping value, which includes the cost of the imported goods, the cost of freight, and the cost of

insurance. In addition to duty, imports are subject to sales tax, education tax, STRD tax,

transportation tax, special consumption tax, and in some cases to liquor tax. Duty rates in South

Korea vary from 0% to 40%, with the average duty rate at 4.17%. Some products can be

imported free of duty (e.g. books). VAT is levied on imports at a standard rate of 10% on the

sum of the CIF value, duty and other taxes if applicable. Imports with a CIF value up to KRW

150,000 are exempt from duty and VAT.

29 | P a g e

Other taxes and custom fees:

Special consumption tax is charged on certain products as ad valorem at rates between

5% and 20% of the sum of the CIF value and duty. It can also be specific, i.e. charged per unit of

measure.

STRD (Special Tax for Rural Development) is charged on certain products at 10% of the

Special Consumption tax.

Transportation tax is charged on some products based on quantity.

Liquor tax is charged on alcoholic beverages at a rate between 5% and 72% of the sum of

the CIF value and duty. It can also be specific, i.e. charged per kg.

Education tax is charged at rates between 10% and 30% based on Special Consumption

tax, or Liquor tax, or Transportation tax, whichever is applicable.

C. Tariffs

There are two Customs authorities with respect to trade and customs in South Korea

(Korea). The Korea Customs Service (KCS), on the one hand, as an enforcement agency; and the

Ministry of Strategy and Finance (MOSF), on the other hand, as a policy making agency. Korea

as a member of the World Trade Organization (WTO), has adopted the organization's customs

valuation method. Similarly, as a member of the World Customs Organization (WCO), Korea

uses the Harmonized System for the tariff classification of imports and exports.

The average basic tariff rate applied to imported goods in Korea is 3.88 percent.

Agricultural products are levied an average applied rate of 49 percent while an average tariff of

30 | P a g e

6.6 percent is applied on non-agricultural products. Being a party to various trade agreements,

lower duty rates are available to the respective counterparties.

Products Having a Higher Customs Tariff include Agricultural products, Seafood,

Beverage (Wine, Spirit, etc), Tobacco, Textile and Clothing. Customs threshold (from which

tariffs are required) is KRW 150,000. Tariffs may also be reduced according to special cases

provided in the Foreign Investment Promotion Act, Tax Exemptions and Exceptions Act, and

Offshore Minerals Development Act.

D. Customs Duties

With the increasing number of foreign investment companies doing business in Korea,

the Korean Customs authorities continually challenge transnational companies (TNCs) on

customs related matters, particularly on their inter-company transfer pricing policies and

practices, through customs audits. Various duty saving opportunities may be identifiable in Korea

from an in-depth understanding of Customs related regulations and practices.

Duties are assessed on a Cost-Insurance-Freight (CIF) basis. The primary mode of

customs valuation is the transaction value method. Any doubts cast by the KCS on the stated

value may lead to the use of other valuation methodologies under the WTO appraisement

hierarchy. Value Added Tax rate of 10 percent is imposed on importations based on the landed

cost (i.e. customs value + duties).

A number of commodities require special permits and licenses from certain government

agencies prior to their importation to Korea. Examples of these are agricultural and

pharmaceutical products. Filing an import entry Import entries are filed with regardless of

whether the imported articles are subject to duties or not. Customs brokers generally undertake

31 | P a g e

the filing process, and finalize the import entries. Payment of duties and taxes are usually made

through authorized agent banks.

The customs regulations are complex, frequently amended, and are subject to various

interpretations. The KCS has become more active in auditing TNCs with regard to the customs

valuation on goods imported from related-parties. In order to mitigate the burden of a customs

audit, a duty payer can either prepare transfer pricing studies for both tax and customs purposes,

or apply for the Advance Customs Valuation Arrangement (ACVA) program. More specifically,

through the ACVA program, the taxpayer and the KCS may establish prices of imported goods

between related parties prior to actual importation. Companies using an ACVA are exempt from

customs audit for up to three years.

Duties paid on imported materials that were used in the production of an exported

product may be reclaimed, through a drawback system. Customs bonded warehouses and bonded

factories are also available for export oriented enterprises to avail of duty exemptions on

imported raw materials used for export production.

Korean Customs Law stipulates unconditional reduction and exemption of duties based

on specific facts (i.e. imported goods for governmental use, goods with minimal values), and the

conditional tariff reduction and exemption in which tariffs are reduced on the condition of

specific usage (i.e. goods for the preservation of environment, goods for donation).

32 | P a g e

E. Competitive Market Analysis

I. Current Marketing Situation

A. Market Situation

Analysing the current market or the industry is essential for it identifies the major

competitors within that market.During the past years, a lot of effort had been expended to make

this segment of the market stronger and more competitive as well as to prepare it to take off and

compete in the glamorous and exclusive world market of designer shoes.

Primadonna’s market situation involves its target market including the gender, age and

social status. They target female customers with the ages of 18 to 40 years old and are middle to

upper middle social status. They also target young professionals and businesswomen who value

their appearances and can be single or married.

B. Product Situation

The industry of footwear including the shoes for fashion has created breakthroughs in

many aspects to satisfy consumers. Over the past years, different styles and forms of shoes

developed and businesses need to cope up to win their customers. For an independent local store,

Primadonna has the largest selection of women’s shoes, from ballet flats, to gladiator sandals to

wedges and pumps. They also include bags, pouches and accessories, everything that makes it

eye candy for the target market of Primadonna.

33 | P a g e

C. Competitive Situation

C. A. Product

Primadonna’s product comes out with fabulous looking footwear that comes up with

various designs that suit with fashion moods and personalities of women, from Dainty to

feminine, boyish, androgynous, fierce, edgy, hippie, and sexy. Their product is focused on

women’s footwear that comes up with different designs for different personalities of customers.

Primary products are ladies footwear from casual sandals and slip-ons to dressy heels, booties,

pumps and fun peep toes, wedges, sling-backs and flats.Secondary products are ladies bags and

accessories that are equally distinct and unique in fun and interesting colors.

34 | P a g e

C. B.Place

Primadonna branches can be seen on almost every SM Stores and Supermalls in Luzon,

Visayas and Mindanao. It is also available in Market Market, SM San Lazaro, Sta Lucia Mall,

SM North Edsa, SM Novaliches, SM Manila, SM Masinag, Ali Mall, Lucky Chinatown Mall,

SM Marilao, Ne Pacific Mall, SM Sta Rosa, SM Rosario, SM Dasmarinas, SM Bacoor,

Limketkai Mall, SM CDO, KCC Mall, Robinsons Bacolod, SM Consolation Cebu, and Harbor

Point Subic.

C. C. Price

Pricing is a major element of marketing any product, and it is vitally important to set the

right price. A price that is too high or too low for the target market can seriously affect sales.

Elements such as target market, profit margin needed growth strategy for the company and

market share all play a role in what pricing strategy is used.

Primadonna uses premium pricing strategy where it involves setting the price of a

product higher than similar products. Primadonna’s prices of products ranges from 700-

15000.00Php, affordable and reasonable but the products have a very unique designs and styles

that differ from other competing products.

C. D. Promotion

Primadonna doesn’t really invest on promotions but makes sure that their endorser, Anne

Curtis is present to their print advertisements and billboards. They are now having sales

promotions too, such as year-end sale. They are also using social media as well. They are using

Anne Curtis, their endorser as part of their new released designs. They also have campaigns

35 | P a g e

entitled “Spring/Summer 2012” , “Different Shoe, Different You” and “Blogger’s Post” which

they let their customers post their pictures wearing the products and send it to the company.

D. Distribution Situation

Primadonna has only 3 stores from its introduction to the market way back to 2007, but

now the brand has a growing distribution of their product to the market. It executes selective

distribution. The brand is becoming widely available to different parts of the country through

branches allocated in some supermalls. Primadonna branches are mostly situated in Luzon. Their

shoes are also distributed on online fashion stores too, such as Zalora, which makes it much

easier for the customers to reach their products. Therefore, Primadonna has an expanding access

to the market, which is a good means for the brand and could now risk on entering global

markets.

E. Macroenvironmental Situation

E. A. Cultural Factors

One important factor that the company must take into consideration is the cultural factors.

Especially that the company has decided to export its product abroad. Each country has its own

culture, beliefs and norms. With these, it affects the preferences and behaviours as well of the

people. Modern culture has changed our culture effectively which comes with the amazing

design and features. Specifically in the fashion industry, busy lifestyles offers more relaxed

attitude towards the selection of footwear. As to nowadays, more people are working outside the

home and for this they need comfortable, easy to wear and yet trendy footwear styles. Due to the

upcoming fashion trends people usually go with the situation upon the comfort level. They prefer

36 | P a g e

to look good rather than feel comfort wearing something. The outstanding looking is more

memorable than the comfortable time spend in an occasion.

E. B. Political Factors

Fashion’s industry is much more involved in environmental issues and must pass the laws

governing environmental and pollution monitoring. There are also some animal rights and animal

liberation groups involved in monitoring the animal use in the production process of silks,

fabrics, accessories and garments.

When it comes to setting up a business, there are government rules and regulations that

every owner should know and follow for the safety of their products, employees, and most

especially the customers. Part of government law was to fully comply with the business

registration process of national government line agencies. As part of sole proprietorship

certificate of registration for a business name needed to get from Department of Trade and

Industry (DTI) and Municipal Permit. Part of business responsibility is they need to apply for

Bureau of Internal Revenue (BIR) to pay right tax. They are also required, for the employees, to

register to agencies particularly DOLE, SSS, Philhealth, PAGIBIG and more that will help to

protect their rights.

E. C. Economic Factors

The economy today is rising up, but only some people could feel the economic growth.

Some people have more disposable income than the others leading them into a higher purchasing

power than the other people. Purchasing power of consumers depends on their Social Class thus;

economy greatly affects purchasing power of the customers. The price of Primadonna is

reasonable and affordable and that it could totally affect the purchasing power of its target

37 | P a g e

market. For some teens that were still dependent, parents’ budget constraint is the major factor

that influences their buying behavior. People want the color and style of high fashion, but don't

want a hefty price tag with it. Consumers are increasingly looking to connect with brands,

business models and products that do not associate with negative environmental or social

impacts.

Apparel and footwear recorded positive growth in 2013, with the price polarization trend

intensifying in South Korea. Many mid-priced brands discontinued under the circumstances.

Apparel specialist retailer brands offering value-for-money products, and premium branded

clothing, both gained in popularity, accelerating the mid-price brand collapse. Due to this trend,

unit prices witnessed a downward direction. Women’s leggings showed significant growth

among apparel and footwear, negatively affecting some alternative categories such as women’s

jeans and hosiery. Even though the growing trend is expected to slow down, apparel and

footwear will remain in positive figures during the forecast period. However, a potential threat

lies in the increasing value and volume of directly purchased apparel and footwear from

oversees. The unit price will continue to decline as economy-priced apparel and footwear

purchased through internet retailing, TV homeshopping, and apparel specialist retailers with their

own brands are expected to account for healthy growth over the forecast period.

D. Natural / Environmental Factors

Footwear manufacture per se cannot be considered as having a heavy impact on the

environment. Most of the environmental impacts are associated with the upstream industries

(leather and plastics). International pressures coming from technical barriers to trade are pushing

footwear manufacturers that are involved in exports to follow the requirements to reduce the

level of hazardous substances in these products. Backward in the supply chain, these

38 | P a g e

manufacturers push the leather processors that ultimately push the tanneries in this regard. As a

response, only the most organized tanneries tend to effectively reduce the use of chemicals that

pose risks to human health. A number of them are not capitalized enough to meet all the

requirements. This tends to create two different industries, just like two different worlds: the

world of the companies that export, and the world of the companies that only meet the demand of

the domestic market. In general, the latter is small sized ones that use traditional technology, this

way barely meeting the requirements of the local regulations or being completely invisible to

environmental agencies.

Implementation of environmental management actions in the footwear sector is important

based upon a series of issues that the sector faces, such as presence of heavy metals in effluents,

air emissions from glues and solvents that can have negative impacts on workers in the internal

environment. Among other relevant issues are the financial resources that have to be spent on

water and electricity, risks that are associated with chemicals handling and storage, and odor that

is generated by tanning.

II. Opportunity and Issue Analysis

SWOT ANALYSIS

Strenghts

Strong branding on domestic market

High profitability and revenue

Wide range of products, including shoes,

bags, dresses, belts, etc.

Products are promoted by celebrity stylish

Weaknesses

Does not have an international presence

Focuses only on female shoes

Designs are easily copied by the local

manufacturers

39 | P a g e

endorser like Anne Curtis

With over 50 branches in the home country

Competitive shoe brand that always carries

the season’s latest trends and must-haves

making them preferred by customers

Stylish and yet affordable

Store designs has a distinct, refreshing

concept (from the shoe to the store

ambiance) that engages, urges shopping

and ultimately results in the irresistible lure

to own one

Fabulous PR advertising and promotional

line up

Company revenue and net income kept

increasing

Customer loyalty

Opportunities

Expansion in the global markets to create

larger brand recognition and sales

Online market

They should also target male segment

Innovation

Providing social media options on website,

Threats

Competition from other brands in the same

segment

Constantly changing fashion

Website is not as advanced as others

Government regulations

Different tastes of customers

40 | P a g e

they can reach out to potential customers

and fans through open platform medias

The industry is one of the fastest growing

imports in the international market

Apparel and Footwear Industry shows a

positive growth over time.

Cultural differences

Issue Analysis

Aside from determining the marketing strategies that the company should do for the

brand to penetrate the international market, the challenge on exporting the product to South

Korea is the complex customs regulations frequently amended, and are subject to various

interpretations implemented by the government. Also, the materials to be used in making the

shoes to be exported is also a concern since South Korea has different climate and topography as

compared to our country. The brand should also be translated into Korean language effectively so

that the market can easily understand and get the grasp of what the brand is all about which is

very critical for creating brand awareness. Aside from this, focusing on proper usage of Korean

language will achieve the marketing objectives of the brand entering to South Korea. The new

market is also known for being ethnocentric which denotes that they prefer and buy local brands

so the strategies that will be executed should be comprehensive and really fit to the target market.

III. Objectives

A. Financial Objectives

Increase the gross sales by 5% and 3% profit through direct exporting.

41 | P a g e

Achieve return on investment after a year of brand launching in South Korea.

Double the sales during peak seasons of shopping in South Korea.

Achieve financial stability in exporting after two years of brand launching which

will produce enough fund for branch expansions and more sales promotions.

B. Marketing Objectives

o The company will go for direct exporting since it knows everything about the

brand than anyone else and South Korea is also an Asian country so it is not that

tedious to personally go there and assess the situation and all the other essentials.

o Primadonna aims to be known as high quality and unique international shoe brand

in South Korea. This brand image will be achieve through proper execution of

marketing strategies.

o Garnering at least 10% of the market share through market penetration on the first

two years of product launch is the first key to indicate success of exporting the

brand in South Korea.

o After two years of launching, the brand is expected to have two to three branches

in major distribution outlets of clothing products in South Korea.

o When financial stability is achieved in South Korea, sponsorships in major

fashion trends events and participation in fashion shows will be participated by

Primadonna.

42 | P a g e

IV. Marketing Strategies

A. Target Market

The target market will be the same as in the home country who are female customers with

the ages of 18 to 40 years old and are middle to upper middle social status. The company will

also be targeting young professionals and businesswomen who value their appearances and can

be single or married.

B. Positioning

South Koreans are known for being fahionable and trendy . Primadonna will position

itself just like how it is done here in the Philippines: Different Shoe, Different You. Since they

love to have unique match up clothing, they can definitely choose a perfect matching footwear

for their outfit. Also, Primadonna is the brand for her, the high quality footwear which will bring

and define her different personalities by just wearing it.

C. Product Line

Primadonna’s products to be exported are the same as what are sold here which comes

out with fabulous looking footwear that comes up with various designs that suit with fashion

moods and personalities of women, from Dainty to feminine, boyish, androgynous, fierce, edgy,

hippie, and sexy. Their product is focused on women’s footwear that comes up with different

designs for different personalities of customers. Primary products are ladies footwear from casual

sandals and slip-ons to dressy heels, booties, pumps and fun peep toes, wedges, sling-backs and

flats. Secondary products are ladies bags and accessories that are equally distinct and unique in

fun and interesting colors. The modification will be done on sizes, shape, and materials used.

43 | P a g e

Launching of shoes of the season will based on the climate of South Korea and this will

be in line with the advertisements and sales promotion of the brand.

D. Price

Primadonna will be using premium pricing strategy where it involves setting the price of

a product higher than similar products. Primadonna’s prices of products ranges from ₩

23,927.53 KRW to ₩ 477832.80 KRW, affordable and reasonable but the products have a very

unique designs and styles that differ from other competitors like Suecomrabonnie and

Yellowlady bird.

44 | P a g e

E. Distribution Outlet

Primadonna will have its first main branch in Korea at Seoul, for it is the capital and

largest metropolis of South Korea. Seoul will be the instrument for Primadonna to be known in

the entire country. Primadonna is expanding and improving its distribution capabilities by

opening its own retail stores in key cities around the country in up-market and quality shopping

venues, mainly in Seoul, South Korea, since it is one of the most fashionable and trendy

countries in Asia and in the world. Primadonna will be expanding its business through opening a

boutique or specialty store in the mall of Times Square. Since it is the Korea’s largest shopping

mall and in addition to being specifically designed to facilitate the flow of customer traffic, the

Time Square boasts an exquisite interior design and outstanding customer services for the

customers to be more aware with the brand to represent strong store reputation, a perfect

shopping mall for Primadonna.

Also, Primadonna can consider opening a boutique store in Myeongdong, the center for

shopping in Korea. Along with the most popular Korean brands, Primadonna will be a hit to the

customers there.

F. Sales Force

Sales forces drive revenue for their employers by actively seeking out and engaging

customer prospects. Sales can be described as the most personal branch of the marketing

function, as salespeople often work directly with customers, either face to face, over the phone or

in online sales chat. Sales force objectives and strategies are mainly concerned with boosting

companies' top-line revenue growth but may also strive to reduce marketing costs and increase

profitability. For the sales team that will be working in the retail and boutique stores in Korea,

45 | P a g e

the company require the skills and experience of sales and sales negotiation. It will also require

the sales team to have the full knowledge of the brand and its products. Attitude and enthusiasm

are also important especially the brand is under fashion and trends. Korean personnel will be

hired and one of them should also be fluent of English language.

G. Advertising

Primadonna Company will have adaptation strategy in advertising. Advertisements will

have the same theme as in the Philippines with only some adaptations on restrictions in South

Korea, with their tagline, “Different shoe, different you.” The brand endorser will be Taeyeon of

Girls generation in Korea because their group named the most influential star by Forbes.

Primadonna will have its advertisements on magazines and billboards. Also it tend to have digital

marketing such as company websites, social media applications such as Facebook and Twitter,

blogging, and Youtube in order that our customers can easily access to brand. Primadonna will

also have its campus tour displays whereas most of the segments are teen ladies. All

advertisements as well as creation of separate online shop and website of Primadonna from the

existing one will be translated into Hangul, which is the Korean alphabet.

46 | P a g e

Print Advertisement

H. Sales Promotion

At the grand launching of the Primadonna store, Koreans can able to shop more than

1,000 of the latest shoes, bags and fashion items at 40-50% discount. Like Filipinos, they are also

into sales and into bargaining to lower prices. Then next first 200 shoppers will get gift cards

loaded with a value from ₩ 11945.82 KRW and up to ₩ 47783.28KRW . Also customers who

buy 3 Primadonna shoes will have its 50% discount on their next purchase of footwear.

47 | P a g e

Selected items will be discounted every four months wich will highlight the seasonal

shoes for the month of the year. Loyalty card will also be launched after six months of grand

opening of the store.

V. Action Program

Action Plan Period Persons/Agencied

Involved

Time Frame Budget

Grand

Launching

- Company

representative,

Sales force

December PhP 500 000

Seasonal

Collections

Whole year Sales force,

Endorser,

Advertiser

1 month PhP 100 000

Grand Sale 3 days Sales force December PhP50 000

Sponsorship on

K Collection in

Seoul Fashion

Concert

1 day Sales force,

Endorsers,

Company

representative

March PhP100 000

Participation in

Korea Style

Week

1 week Sales force,

Endorsers,

Company

April PhP 200 000

48 | P a g e

representative

Seoul Fashion

Week

1 week Sales force,

Endorsers,

Company

representative

Spring/Summer

and Fall/Winter

seasons

PhP 200 000

Branch

Expansion

6 months Company

representative

Two years after

Grand Launching

PhP 500 000

49 | P a g e

References

http://geography.about.com/od/southkorea/a/south-korea.htm

http://en.wikipedia.org/wiki/Geography_of_South_Korea

http://countrystudies.us/south-korea/30.htm

http://en.wikipedia.org/wiki/List_of_political_parties_in_South_Korea

http://www3.ambest.com/ratings/cr/reports/southkorea.pdf

http://english.chosun.com/site/data/html_dir/2013/05/07/2013050701061.html

http://www.korea.net/Government/Constitution-and-Government/Local-Governments

http://countryeconomy.com/demography/population/south-korea

http://www.aljazeera.com/indepth/opinion/2014/09/are-south-koreans-at-risk-extin-

201491013445124904.html

http://www.tradingeconomics.com/south-korea/exports

http://www.worldstopexports.com/south-koreas-top-10-exports/2302

http://atlas.media.mit.edu/profile/country/kor/

http://www.worldsrichestcountries.com/top_korea_imports.html

http://www.economywatch.com/world_economy/south-korea/export-import.html

http://thediplomat.com/2014/07/south-koreas-free-trade-dilemma/

http://www.dutycalculator.com/country-guides/Import-duty-taxes-when-importing-into-

South-Korea/

http://www.export.gov/southkorea/doingbusinessinskorea/traderegulationsstandards/index.as

p

https://en.santandertrade.com/international-shipments/south-korea/customs-procedures

http://www.omniglot.com/writing/korean.htm

50 | P a g e

http://www.kwintessential.co.uk/resources/global-etiquette/south-korea-country-profile.html

http://www.101languages.net/korean/dialects.html

http://www.101languages.net/korean/dialects.html

http://www.101languages.net/korean/dialects.html

http://www.ediplomat.com/np/cultural_etiquette/ce_kr.htm

http://en.wikipedia.org/wiki/Law_of_South_Korea

http://www.kipo.go.kr/kpo/user.tdf?a=user.english.html.HtmlApp&c=100016&catmenu=ek0

2_02_03

http://ec.europa.eu/enterprise/sectors/footwear/environment/index_en.htm

http://micanonymous.wordpress.com/tag/prima-donna-wedge-shoes/

http://seoulistic.com/travel-to-korea/seoul-shopping-11-best-places-to-go-shop-for-korean-

fashion/

http://www.visitseoul.net/en/shopping/malls-and-shopping-centers/korea-shopping-

centers.jhtml

http://smallbusiness.chron.com/examples-sales-force-objectives-strategies-11011.html

http://www.marketingdonut.co.uk/marketing/sales/sales-management/managing-your-sales-

team

http://www.intechopen.com/books/international-trade-from-economic-and-policy-

perspective/technical-barriers-to-trade-of-leather-and-footwear-impacts-and-challenges-posed-

by-international-st

http://www.dummies.com/how-to/content/analyzing-your-market-situation.html

http://www.euromonitor.com/apparel-and-footwear-in-south-korea/report