2. 2004 Overseas Marketing Comm. Strategy Post it

3. I. Market analysis -Where are we? -Where are we standing? -Who is coming? II. What do we have? III. SWOT analysis IV. Brand identity concept V. Marketing Strategy -What to do -How to doContents

4. T o be the best resort hotel in the world, What ‘Shilla Cheju’ has to know first… 01_ Where are we? 02_ Where are we standing? 03_ Who is coming? P a r t I

5. W here are we? Falling market! However, there is an opportunity.  Global security matter  Increase of mid-grade hotel Room occupancy rate of total Jeju deluxe hotels is decreasing! 1999200020012002 60 65 70 75 year Room Occupancy Rate(%) % Source: Dept. of Tourism Promotion Room Occupancy rate “Jeju Free International City Development’’ –03.07.23. Korea Times “ICC Jeju Links Tourism With Convention” –03.03.30. Korea Times Increase of interest in tourism business  Concentration of foreign investors  Potential in convention business

6. W here are we standing?  Global economic stagnation  Global security issues  Lotte has won over Shilla’s No.1 position through aggressive marketing Drop in sales, Losing M/S ! Losing Market ShareDrop in actual sales, compared to 2002 Source http://dart.fss.or.kr M/S in Jeju Source http://dart.fss.or.kr 0 100 200 300 400 500 200120022003 (3/4semester) sales(100million) Actual sales of Shilla Cheju

7. W ho’s coming?  Global disaster - Iraqi War, SARS, bird-flu, etc.  Global economic stagnation Decreasing number of visitors and receipts Depression!

8. Necessity of attracting East Asians W ho’s coming? China 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 1999200020012002 person 80% of East Asians  Major Increase of Chinese -Korean syndrome -China’s becoming a world economic center

9. Necessity of attracting convention related visitors W ho’s coming?  Opening of Jeju International Convention Center  Increase of convention related visitors & Important role of convention organizers  Consideration: where to stay & what to do for rest

10. What do we have? P a r t I I 01_ T o find the opportunity, we need to observe the situation we need to observe the situation

11. T hen, What do we have? Shilla ChejuLotte Jeju conceptJeju’s best luxurious resort hotelTotal tourism resort complex Strong Luxurious: member of ILHA Korean sentiment: Korean style facilities Eco- friendly: green card system Upper-class: summit conference VIP guest Fun: theme park-like facilities Modern: recently built (in 2000) WeakLow brand awareness Lack of special marketing activity : depth interview Low brand awareness Necessity of -overcome low brand awareness -marketing strategy for foreigners

12. ‘ P a r t I I I SWOT analysis 01_

13. Strength Opportunity Threat Weakness Luxurious service Upper-class image Eco-friendly image Korean sentiment Safety Low brand awareness Lack of marketing activity Concentration of foreign investors Potential in convention business Increase of East Asian travelers Korean Syndrome global security issues (wars & diseases) Increase of mid-grade hotels Global economic stagnation Develop well representing brand identity to bring up awareness

14. D evelop well representing Shilla Cheju brand identity

15. P a r t I I I Brand identity concept 01_

16. T o develop Shilla Cheju’s own brand identity, Q:What do you consider the most ? Different pictures in mind

17. Shilla Cheju Luxurious service Korean sentiment Upper-class Safety Eco-friendly Communicate with ONE concept

18. Different Pictures, Same Frame. Shilla Cheju, in that place…

19. strategy ‘Shilla Cheju, in that place…’ strategy P a r t V 01_ What to do! -marketing objective How to do! 02_ How to do! -marketing strategy -target -positioning -IMC program

20. W hat to do?  Sales up - For our overseas target Marketing Objective  Reform Shilla Cheju brand image - Build up awareness and preference for East Asian

21. H ow to do?  Place a definite ‘Shilla…in that place’ image Strategy_01 Strategy_02  Build up brand royalty for regular customers providing benefit Marketing Stratgegy

22. Female at 30’s  Convention planner -interested in esthetics & organic food -consider facility + service Female at 30’s  Computer programmer -early-adopter, adventurous -consider view Male at 40’s  CEO in a company -frequent business trip -free from work (relax, peace) East Asian BoBos, At 30’s~50’s Professional with High Salary Convention Organizer searching hotels which meets their customers’needs Core Target Sub Target Target Audience H ow to do? Specifically WHO?

23. R eposition needed towards overseas market H ow to do? Positioning International GeneralLuxurious Domestic

24. H ow to do? IMC Program ‘Shilla Cheju, in that place…’ [Advertisement] “Shilla, in that place…” [PR] “Shilla, in that place… Pam tour” [Promotion] “Make your wish in Shilla” “Shilla Gallery” “Shilla Dynasty”

25. Promotion 1 To build up the brand royalty And to reinforce Shilla Cheju’s brand image - show belief that every wish seems to come true in Shilla Cheju Make a general wish list Considering customers’ wants - ex: Plane ticket, free-night coupon, sports car rental Provide chances to visit again - by winning the wish lottery, make love mark on Shilla “Make Your Wish in Shilla” event H ow to do? IMC Program

26. H ow to do? IMC Program To attract foreigners and to build up the brand royalty - exhibit items representing Korean culture and arts utilizing the hotel space See, Feel, Know the cultural pride of Shilla Cheju Unlike other exhibitions, the gallery must be harmonized within the hotel environment “Shilla Gallery” Promotion 2

27. H ow to do? IMC Program To make a synergy effect cooperating with Asian countries nearby Korea – China - Japan Project promoting with each other → PPL → Fashion show (eco friendly, natural materials) → Fusion food festival Connecting mileage program with selected resort hotels in 3 countries “Shilla Dynasty” project Promotion 3

28. H ow to do? IMC Program - Shilla… In that Place Pam-tour Invite East Asian press and convention organizers Let them experience Shilla’s world best service and facilities Expect media coverage and motivate convention organizers to choose Shilla, build up brand royalty as well ‘PR’

29. IMC Program ‘Advertisement’ Concept: “Shilla, in that place…” Story: 3 or more people on the plane with each characteristics  their final destination is Shilla Cheju Make you believe Shilla is the place where your basic needs are satisfied H ow to do?

30. We are Sure! Shilla Cheju, in that place…

31. THANK YOU! Post it 2004.1.30 Shilla Cheju, in that place…