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Research Article

A Case Study on Marketing Success of Korean Firms Entering China

Han, Chungmin

Published: January 1999 · Vol. 28, No. 3 · pp. 637-657
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Abstract

This study analyzes six marketing cases of Korean firms that have been conducting successful marketing in the Chinese market, aiming to identify the marketing strategies employed in China and the key strategic variables influencing marketing success. For this purpose, the study examined Samsung Electronics, Lotte Confectionery, Dongyang Confectionery (Orion), Medison, Kyungdong Boiler, and Evas Cosmetics as case study subjects. The analysis revealed that the competitive advantage of Korean firms lies in appropriate value for money and mid-to-high-level technology, and that these firms are striving to transfer such competitive advantages to China. Consequently, Korean firms placed greater emphasis on standardization rather than localization in their local marketing and utilized strategies that emphasized Korea's favorable country image. Additionally, Korean firms preferred the northeastern region, which has a relatively low "psychic distance," when entering the Chinese market, and a pattern of gradual internationalization was observed, with the entry mode transitioning from exports to local production.