Module Title: International Marketing Management
International marketing plan:
FitFlop's entry into South Korea
Page count: 21 pages
Word count: 3,216 words
(excluding title page, contents page, references, diagrams of models, bibliography and appendices)
Analysis of target country
Market entry mode
Segmentation, targeting and positioning
Segmenting the South Korean market
Target market – the Professional Fashionistas
Marketing mix decisions
People management decisions
Implementation and management controls
Appendix One: Macro-environmental analysis of South Korea
Appendix Two: Competitive structure of the footwear industry in South Korea
Appendix Five: SWOT
FitFlop's ergonomic footwear is a unique product offering that has sold over fifteen million pairs in 30 countries since the company's launch five years ago. FitFlop is looking to continue its global expansion and has set its sights on South Korea as the next market of entry.
South Korea has a burgeoning economy with a footwear industry set to grow by 6.8% by 2016. FitFlop has successful markets in other Southeast Asian countries and is hoping to replicate this accomplishment in South Korea by undertaking a joint venture with ABC-Mart, a Japan-based retailer that has footwear outlets across South Korea.
The South Korean consumers are highly educated and value luxury items that communicate success. Three distinct market segments were identified, and the Professional Fashionistas were selected as the most promising target market for FitFlop's entry into the market. FitFlop will use a differentiation strategy to position itself as a premium brand in this luxury-driven market.
As with its other territories, FitFlop will maintain a largely standardised marketing mix when entering the South Korean market. Minor adaptations will however be made to the product line to suit the climatic requirements of the new country and the trendy nature of the target market. Promotional activities will focus largely on mobile marketing, as this is a highly tech-savvy and connected market.
A centralised control strategy will manage the initial heavy budget investment into this new venture, and the global brand manager will work closely with ABC-Mart to implement the plan.
FitFlop has experienced five years of international success since launching its biomechanically engineered footwear in 2007 (Anon., 2012). The ergonomic shoes conceptualised by Marcia Kilgore, and developed by Dr David Cook and Darren James, are designed to increase muscle activity in the legs by 30% and absorb 22% more shocks than regular shoes.
FitFlop's multi-density MicrowobbleboardTM midsoles reduce aches in a person's hips, back and knees by training the feet and activating key stabilising muscles (Anon., 2012). Over fifteen million pairs of FitFlops have been sold worldwide to date.
As with any growing business, FitFlop must investigate all new options for extension. South Korea has a growing footwear market that presents FitFlop with an opportunity to further its global expansion.
Using the Product/Market Expansion grid developed by Ansoff (1957), FitFlop can further grow its business with a Market Development strategy. This marketing plan details the proposed strategy for launching FitFlop in South Korea.
Figure 1: Product/Market Expansion Grid (Ansoff, 1957).
2. Analysis of target country
An international market assessment of potential countries identified South Korea as an attractive new market