Australian Export Opportunities to South Korea

Australian Export Opportunities to South Korea Hasting Helical Francesca Carolina Moorage Ash Jane Decorum Cindy Guan Sophia Alai Introduction Where once, the South Korean society solely relied on the produce of their country as a source of goods, they are slowly turning towards imports from other nations, such as Australia for their goods and services. Australia is renowned for their agricultural excellence, and hence has become a major exporter of foods to South Korea. In this essay, discussions about how South Korean culture may influence the nature and the sessions made in regards to food consumption.Additionally, the theories of family and social influence of Australia and South Korea will be applied, with an aim to reveal possible opportunities for the South Korean food industry to further improve its standings in South Korea. Family Family is one of the most important aspects in life for South Koreans. The Korean community is well-known for their large and tight knit families, with an average of 2. 97 persons per household, in comparison to an Organization for Economic Co- operation and Development (COED) average of 2. 63 in 2009 (COED, 2010). This is nearly due to the high level of multinationals families in Korea.Many Koreans regard the well-being of the family, as a whole, more important than that of individual members (ANTA, 2013). Food is also a predominant feature in the Korean culture; they often gather around for extravagant feasts with family and friends, especially on occasions such as New Years and Christmas. Therefore providing food to the family of the best quality is a high priority need. Traditionally, men of the South Korean society are the breadwinners of the family, while women tend to stay at home and take care of family matters. The female employment rate in Korea, at 52. %, in 2009 was below the COED average of 59. 6% (COED, 2010), therefore reflecting the homemaker role that women play in the family. In the eyes of the developed cou ntries club (COED), South Korea is considered a arbitration, and despite the public policies that still uphold the patriarchal family system, the sex ratio (number of boys per 100 girls) has been remarkably decreasing in the last two decades. It seems that the drop in son preference was triggered by normative changes in the society, in comparison to individuals whose socioeconomic resistances had changed (Chunk & Guppy, 2007).Therefore, a potential target market for women arises. At this rate, there is a strong possibility that more women in the South Korean society. Gender takes the centre stage of numerous brand narratives. Researchers conducted in Australia and New Zealand show that the female partner/wife is generally involved in the decision making process (Coffman et al, 2010). Keeping young singles/ married couples in perspective, marketers who used to target men are now targeting women through meaner of educating them about the importance of eating healthy, ND family well-be ing.For example, introduction of diet Pepsi or diet coke, was made to attract men towards diet soda, so that they could monitor their calorie intake. But this claimed to be unsuccessful. To the contrary, when women were targeted towards consuming lower calorie drinks like Dry. Pepper Ten, Pepsi Max, Coke Zero, etc. , it was observed that women were the major consumers, and they religiously rejected the notion that â€Å"diet cola [was] for men† and that â€Å"it's not for women. (Avery, 2012) Social Influence Social influence marketing is composed of a combination of the use of social media ND the day-to-day interactions consumers go through which may impact purchase decisions made by buyers (Murray, 1991). Social media plays a large role in influencing consumers, as content created by everyday people is readily available online through blobs, forums, websites, social networks and flogs. Egg Product reviews on Youth. Consumers can also be influenced by their everyday experie nces and interactions with different people through word-of-mouth communication, viral marketing and buzz agents.Word-of-mouth communication is the result of consumers sharing information and personal experiences of products purchased tit friends, family, colleagues etc. This is one of the more effective ways of marketing as potential buyers are more likely to trust a close acquaintance over an advertisement (Longer, Henning ; Weidman, 2013). Word-of-mouth communication has dramatically increased over time in Australia with the use of social networking sites such as Faceable and Twitter.However, Faceable is not the social media site that is most popular among South Koreans as it has only 3. 6 million users. The most popular social networking site in South Korea is Keyword, which has 19 million unique visitors every month and generates 1. Billion views. Viral marketing is a combination of word-of-mouth communication and social media. This form of marketing is referred to as Moralâ₠¬  because once released, the information spreads like a virus to a large audience in a relatively small time frame.It provides an advantage for mass communication through social networks. As homogeneity is the main focus in South Korean culture this would largely affect the social influence on consumers and potential buyers, as the need for homogeneity would encourage and friends. The general population's need for homogeneity paired with the powerful LOL of social networking will therefore result in viral marketing being a very effective meaner of socially influencing consumers in South Korea (Lee & Trim, 2008).However this method would probably not be as successful in Australia due to the general culture being one that favors individualism and uniqueness as opposed to the idea of homogeneity, which is more widely accepted in South Korea. Buzz agents are consumers recruited by companies to aid in promoting their products. These agents endorse various products by encouraging other consumers to purchase certain products while out on shopping trips, by suggesting which products shop winner should carry that they do not already stock, and by taking certain products to large gatherings in order to promote them to a large audience (Coffman et al, 2010).This would be more effective in South Korea than Australia as the Korean culture embraces family and attachment, and South Koreans often host large gatherings for family and friends which can act as a platform for word-of-mouth communication as well as marketing via buzz agents. Export Opportunities Up to 70% of South Koreans food requirement relies purely on imported goods (Food Business, 2011). Due to a large focus on the wellbeing of Korean consumers, the organic food industry has seen a huge growth in South Korea (Mackinac, 2006).Consumers are interested in purchasing organic Australian products as they are perceived to be of high quality and safe for consumption, however should be reasonably priced in order to keep interest in Korean consumers. Haiku Australia successfully landed their biggest export deals to date for Australian-made organic retail goods to Korea, exporting a three hundred thousand dollar shipment of organic Someone noodles (Free, 2009).Recent changes in the food sector has seen a rise in the mount of consumer groups who take into consideration the image and quality of organic food when they are purchasing or planning meals (Food Business, 2011). The gradual development of the Bilateral Free Trade Agreement alongside a large and yet growing demand for organic products is seeing that Australia has more opportunities to export food to the South Korean region, where government regulations are great barriers for Australian exporters (Mackinac, 2006).Produced from high-quality wheat, Haiku Noodles Australia is an extremely successful exporter of noodles. Currently, they export a great amount of their goods o Korea with a statement from Sarah Woodward stating that the organizat ion ‘received accolades for securing Australia's largest export order for organic retail products (organic Someone noodles) to Korea' (Wallboard 2009: 24).Success came upon the company as they assured their Korean consumers that their noodles were produced Without the use of chemical pesticides, herbicides or insecticides, food additives or genetically modified ingredients, creating a perception in the consumer's mind of clean and safe food (Holstein 2012). Companies seeking the food industry in South Korea have great opportunities stressed, especially when taking a close look as dietary demands (Archives of Surgery: 2004).This trend has seen opportunity arise in meat, dairy and processed product food sectors (Holstein 2012). Additionally, as South Korea has such a low self- sufficiency rate in regards to food production, of only 26%, it is fair to assume that a country with such self-sufficiency rates rely on other countries with a high self- sufficiency rate to supply to pro vide products for their country (Holstein 2012). Although are attractive opportunities that are in this market, there are also barriers hat make it challenging to penetrate the market in South Korea.Such barriers include strict regulation that South Korea has concerning organic certification (Mackinac 2006), although this is seeking to be maintained with the Gaillardia Government's efforts of negotiation with an aim to equalize the prospect of Australian companies exporting to Korea in order to be at the same standard and reputation as its greatest competitors, the United State and Europe by developing the Korea- Australia Free Trade Agreement in 2011 (Department of Foreign Affairs and Trade 2011).Networks with Korea will consequently be developed, maintained and threatened (201 1), including the reanalysis of correct regulations concerning export tariffs (ITS Global et al. 2008) South Korean life revolves mainly around family, being an important aspect of one's life. It is a cultur al aspect of a Korean family to have the father to be perceived as the breadwinner for the family. It is essential that Australian companies wishing to export deliver products that are not only of high quality, but satisfy the family as a whole rather than Just the individual consumer.Marketers also need to keep in mind the collectivist culture of South Korean families and consider it as a social unit. (Choc amp; Yon, 2001). A company can create the perception off family meal' whilst looking at marketing strategies and campaigns. Social influence plays a significant role on the purchase decision made by consumers. In order for an Australian company to apply this theory into their exporting endeavourers could apply in their marketing technique by changing the image of their product.As the perception of organic food changes and becomes more desirable, people tend to agree with the opinions and desire of people around them. Creating a likeable brand allows for consumers loyal to your b rand influence potential consumers around them. Conclusion Being a collectivist and family-oriented society, there is huge potential in the South Korean food industry for Australian exporters. South Koreans are increasingly becoming aware of the benefits of healthy eating, and providing that to their families and friends.