.. TEST MARKETING

    A. BRAND NAMING
 
We hired Infinite, a naming consulting company, to give us candidate brand names for the new product (HITE, Ving, Vivis, Deep, O-Touch, etc.)
   
    Survey Planning
   
    Survey group: 100 people between the age of 25 and 35 that included both sexes and salary men
Survey place: An-gook Building (which is a busy place with travel agencies, insurance companies, and car dealerships inside and close by)
   
    Survey Result
   
 
 
Product HITE VING VIVIS DEEP O-TOUCH
# of votes 59 9 12 12 8
In Percentage 59% 9% 12% 12% 8%
 
   
    - The reason for selecting HITE
(i.e. what impression or image does the name give you?): clean and refreshing, height, highlight, beer foam, high-end brand, speed, Europe, etc.
   
    Conclusion
   
    Based on the survey, the name, HITE, seemed the right choice since it not only received the most votes but also the image of the name provoked was relevant to the product concept
The name was simple and easy enough to become a synonym for any new beer product
   
   
    B. CONCEPT, °¡°Ý, PACKAGE
   
    Survey Planning
   
    Date & Time: between 13:00-19:00, November 30 through December 1, 1992
Survey place: Youido Life Shopping, and Family Mart at Dae-hang-no.
Survey group: 512 randomly picked people - salary men, house wives, college students, etc.
   
    Concept Survey Test Result
   
 
 
Product Total Place Sex
Youido Daehangno Male Female
Total
521
100% 
300
100% 
212
100%  
235
100%  
277
100%
Very Bad
2
0.4% 
1
0.3% 
1
0.5%
2
0.9%
Bad
52
10.2% 
32
10.7%  
20
9.4% 
25
10.6%  
27
9.7% 
Good
252
49.2% 
133
44.3% 
119
56.1%
122
51.9% 
130
46.9% 
Very Good 190
37.1% 
126
42.7%  
62
29.2%  
79
33.6% 
111
40.1% 
 
     
- 86.2% of the surveyed were positive to the product concept.
   
    Survey on the Proposed Price
   
 
 
In Comparison with the Price of Existing Beers
What do you think?
New Product Price: 1300 won
  Category
Very Expensive
A little expensive
ReasonableLow-priced
Very low-priced
  Total: 512
64 (12.5%)
349 (68.2%)
89 (17.4%)
9 (1.7%)1 (0.2%)
 
   
Intention for Purchase by Price
Would you buy it?
High Price
(1300 Won/Bottle)

Middle Price
(1000 Won/Bottle)
  Category
I will buy
I may buy
Neutral
Maybe I would not buy.
I will not buy
I don't know
  Total: 512
75 (14.7%)
242 (47.3%)
157 (30.7%)
11 ( 2.0%)
2 ( 0.4%)
25 ( 4.9%)
  Total: 512
80 (15.6%)
215 (42.0%)
158 (30.9%)
30 ( 5.8%)
2 ( 0.4%)
27 ( 5.3%)
Average Score
(1-5, 5 highest)

3.6 3.5
 
Beer Product Purchase Preference
Product
CB
OB
MILD
OBDRY CBDRY
Purchase Price 750
750 750 1040
1040
# of 'I will buy this.' 8 42
17 83 52
In Percentage
1.6%
8.3% 3.3% 16.2%
10.0%
 
  In competition with existing beer products, the survey showed that price option one (1,300 won) got much more votes than the existing products despite the relatively very high price, only second to the price option two (1,000 won) - but a close second.
While the response to the price itself was that 1,300 won was high, when asked 'Which beer would you buy out of the 8 beers, many of the surveyed chose HITE price option one. This confirmed that when it was time to make an actual purchase decision consumers placed higher value on quality than price.
 
  Package Survey Test Result
 
  The package survey result once again confirmed that our product did have a differentiating factor that can appeal, then consumers were willing to pay higher price to some extent.
Differentiation possible with the color and shape of the bottle, label design and type, etc.
 
After-Launching Marketing Activities
 
  A. Post-Launch Customer Survey (3 months past the product launch)
 
  Survey objective
 
  To find out how consumers had reacted during the first 3 months after the launch and to review and improve our strategy based on the analysis
 
  Survey Method and Planning
 
  Target area: Seoul Metropolitan area (Seoul, Inchon, Suwon, and Anyang
Number of samples: 600
Sampling method: 3-layer stratification in proportion to the population
Survey period: July 26 - August 10, 1993 (16 days)
Survey method: one-on-one direct interview
 
 
  First Post-Launch Survey Conclusion
 
  <Conclusion 1> HITE's positioning strategy was successful
Repurchasing & reordering rate was over 90%
Once the concept was understood, 65% of the consumers showed intention for their first purchase
Also, once the concept got through, there was less resistance to the price
The number of returning customers had been clearly on the rise
<Conclusion 2>
Non-assisted recognition rate was found to be 16.3%, which meant HITE urgently needed an aggressive advertisement & promotion strategy with a strong impact to improve the rate to 50% for a quick expanding our position in the market
<Conclusion 3>
Since the surveys showed that the changes in consumer behavior took place when the concept of the new product got through, we needed a marketing strategy that could give a strong impression of the product
 
New Product Target Market Selection & Positioning Strategy
 
  A.Target Market Selection
 
  Target
 
  Age: from early 20's to early 30's
Occupation: salary men, housewives, and college students
Characteristics of the target group: they had preference for OB (among all the consumer groups, they were found to be least likely to choose our new product)
 
  B. Positioning Strategy of Different Beer Products
 
 
New Product Marketing Mix 4P'S)

 
  A. Product
 
  Product Concept
 
  Main: Pure beer made of fresh 100% natural water from deep underground rock bed
Sub 1: soft beer that uses only the grain not the husk (De-husk method)
Sub 2: a high-quality beer that remains fresh and cool for a long time since HITE uses M.C.F method where the yeast is filtered, thus not requiring heat-treatment process for sterilization

 
  Naming: HITE (or ÇÏÀÌÆ® in Korean)
Alcohol: 4.5%
Characteristics of product specifications: consumer taste
 
  PACKAGE
 
  the use of green color to suit the product concept
the use of back label, the first in the Korean beer industry
the use of label around the bottle neck, again the first in the industry
 
  B. Price
 
  20% higher than regular beers (but 7.3% lower than Dry)
Premium-product strategy against most existing beers (but additional value to the consumer - fresh and clean underground water)
The price resistance to Dry was taken into consideration
 
  C. Distribution (Place)
 
  It was concluded that overcoming our weaknesses in distribution was a critical factor for the success of the product
 
  Resource input to expand first-tier buyers in the distribution channel
M/L support with merchandising, for the second-tier buyers (mostly retailers)
C.V.S. franchises were the first target
Customer relationship with those who had the actual purchasing power at franchise headquarters was reviewed for improvement
 
  D. Minimum Cannibalization
 
  < The marketing efforts were focused on home-use individual purchasing rather than the commercial-use market (HITE's market share in home-use market was very low)
< Regional focus on the Seoul Metropolitan area (HITE market share in home-use market in the Seoul Metropolitan area was meager 5%)
 
  E. Promotion
 
  Stage-by-Stage Strategy
 
  <Stage 1: Concept & Positioning Communication Stage)
Advertisement on the product birth
'HITE. Have you ever tasted a beer like this?'
'It does have a distinguishing taste from those beers made of plain water.'
'Water makes up 90% of beer. Which beer would you choose?'
'This very water that makes HITE is really something.'
<Stage 2: Aggressive Advertisement with Strong Impact>
Would you really have your beer boiled?"
'There are plain water beers, and here is a 100% fresh natural water beer.'
'I changed to HITE.'
'Why aren't you selective with your beer when you are so careful with what water you drink?'
'A beer that has to remain silent, and a beer here that can freely speak.'
'King of the King in customer satisfaction. HITE!'
<Stage 3: Ads for Customer Base Expansion & Image-Refreshing>
(Star-focused Ads) 'Try it. You will know the difference.'
1st Round: Jin-young Kim, Yong-hoon Park, Hye-won Oh, Chang-hyuk Yu
2nd Round: Jackie Lim, Gyun-dong Yu, Hang Kim, Jeong-sik Lee
<Stage 4: Securing the Image as No. 1 Brand>
(Ads with National Sports Team Stars) Korea's No. 1 Beer, HITE
11st Round: Myung-bo Hong
2nd Round; Hur Jae
<Stage 5: Corporate Image Enhancement>
('Water-Lover' Ads) Corporate PR
'Water-Lover, HITE'
<Stage 6: Multi-Spot Strategy for Greater Competitiveness>
-The strategy was to deliver the actual feeling of cool and refreshing taste of beer as close to home has possible along with the emphasis on the name, HITE, featuring TV stars like Sun-gyung Jung, Gye-nam Myung, and Chul Park so that there would be a lasting impression of HITE
<Stage 7: Highlighting the Core Competencies of HITE>
Concept 1: Cool and refreshing beer in which the 'Chi' of the deep underground water from deep mountains lives on
Back-du-dae-gan Beer, HITE (Back-du-dae-gan: the central mountain vein of the nation)
 
Promotion Strategy
  Free sample handout: free distribution of trial products for landingSAMPLING
HITE Thank-You Events: 1.4 million packs of quality tissue were given to customers
Retailer support: the first in the industry to provide bio-degradable plastic bags to the retailers
Provided straps to tie garbage bags
Thank-You event: 1 million bars of Jook-yum soap
Thank-You event: free trial-tasting of new products
Official sponsor for '94 and '95 Korean pro soccer series
HITE Ski Camp for College Students
Participation in Myung-dong Festival (twice a year)
Sponsor of various cultural and sports events
Free after-midnight bus tickets
Inter-Korean Cooperation Fund-raising events
Fund-raising events to help flood victims


 
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