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CASE STUDY 10 : YOON CHOI
CORPORATION
Al-Khatib Yara Vincent Julie 318

PLAN
 Overview
 Synopsis of exhibits
 Existing Situation
 Statement of Problem
 Options
 Recommendation

OVERVIEW
 Korean Corporation
 Founded in the 1950s
 Began to export in the 1960s
 From a small-scale manufacturer of clothing and textiles to a
diversified corporation :
 Machinery
 Electric & Electronic
 Textile manufacturing
 General trading
 Real Estate development
 40% of its sales are now overseas
 Sales are steady but relatively small compared to other Japanese
and Korean competitors

OVERVIEW
 There are 2 characters:
 Woo-Young Jun, International Marketing Director of Yoon-Choi
Corporation
 Phyllis Stevens, Senior Marketing analyst of Pembroke Marketing
 Localisation :
 Seoul
 San Francisco

SYNOPSIS OF EXHIBITS
 Dialogue between Woo-Young Jun & Phyllis
Stevens :
 Electronic products marketing
 Distribution issue
 Reasons of their non-successful experience in US
market

 Exhibit n°1: Yoon-Choi(s 1982 Production and
Marketing Costs (including sales figures) for its
electronic products sold in the US

 Exhibit n°2: Current
and Proposed
distribution systems
for yoon-choi
products in the US

 Exhibit n°3: Korean Share of Total U.S Consumer
Electronics Import, 1971-1980 (in millions of US$)

 Exhibit n°4: Import Dependency of the U.S
consumer electronics market by major product,
1971-1980 (in thousand of units)

 Exhibit n°5: Summary of Stevens’ Report regarding
initial expansion strategies

EXISTING SITUATION : PRODUCTION
Strengths Weaknesses
Control of Production & Quality Costs
Competition in the sector, starts
late compared to Samsung, Gold-
Star or Taiwan Electric Wire
 Recently starts manufacturing Electronics features
instead of subcontracting

EXISTING SITUATION : DISTRIBUTION
Great spread of the products Visibility
Distribution mode: Dual mode ( through retailers & Yoon
Choi Trading)

EXISTING SITUATION : MARKETING
Already established in the lines
with greatest potential regarding
the competition
No comprehensive marketing
strategy
No communication or marketing
about Yoon Choi
No marketing for Yoon Choi products in the US

STATEMENT OF PROBLEM
Yoon-Choi Corporation wants to make more profit in
the US market by taking into account distribution
and marketing issues.

OPTION 1: STATU QUO
Advantages Drawbacks
See how the market will evolve Loss of opportunities
Loss of brand recognition if
competitors are doing well
Keep increase the gap between
Yoon-Choi and the competitors

OPTION 2: ADOPTING THE NEW DISTRIBUTION SYSTEM &
FOCUSING ON COLORED TV
Perceived as a trendy company Hard to make a name
Long term solution (Specialization) Not an American brand
Strong competition of Gold-Star

OPTION 3:
FOLLOW THE PROPOSITION OF STEVENS
 NEW DISTRIBUTION SYSTEM; MORE COMMUNICATION;
VOLUME ORIENTED PRICING
More incomes Costs
More visibility If the prices are too low; consumer
will see Yoon-Choi’s products as
low quality
Reputation in the U.S market

OPTION 4: CREATE A SUBSIDIARY IN THE
USA
Impose itself in the U.S market Cost labor in the USA
Better image for US customers Cost of implementation
More profits Time consuming

OPTION 5: GET OUT OF THE US MARKET
No more costs on the brand image Loss of the US market
opportunities (US depends on
imports)
Can concentrate on other markets
with less competition
End of partnerships established
with retailers and whosalers
Possibility to observe the evolution
of the market while creating a
stronger brand recognition

Debate:
 According to you which is the most important
criteria: Distribution or Marketing?

RECOMMENDATION
 Our recommendation is : Option n° 3
Thank you !
Do you have any Questions ?

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