Herbal Remedies is a South African product developed to address various health issues using natural herbs. With the emergence of new markets, consumers and products, it is easy for Herbal Remedies to reach a wide range of consumers by strategically positioning itself in the global market, more so in Korea (Chen, 2016). This analysis will evaluate the cultural, economic, political, and legal factors affecting the product’s success in Korea. Additionally, we will analyze the market’s needs, preferences, behaviours and the impact of technology.
The introduction of herbal remedies into the Korean market presents an interesting opportunity for both countries. Herbal remedies are known to be effective, natural, and safe, making them ideal for a new market. South Africa has a long history of traditional medicine, which can be used to provide a competitive advantage in the Korean market as consumers could benefit from access to a wider selection of natural remedies, including those native to South Africa.
Market Analysis – PESTEL, Cultural, Preference,
When developing a global marketing strategy that will reach the target market, it is essential to involve working with local media outlets, such as radio and television, to promote the products, as well as developing a strong presence on social media and partnerships with traditional Korean healers and other health professionals could help to create a loyal customer base (Song et al.,2016). Therefore, for all this to be successful, there is a paramount need to consider the cultural, economic, political, technological impact and legal differences between the two countries, as well as the logistics of importing and distributing the products.
Cultural factors play a crucial role in determining the success of any product in a foreign market. Korea has a unique culture that has a significant impact on its people’s lifestyle and consumption behaviour. For instance, it is crucial to note that traditional medicine is deeply rooted in Korea’s culture, and herbal remedies have been used for centuries to treat various health issues (Chen, 2016). Therefore, introducing Herbal Remedies to Korea can be a positive move as the product resonates with the country’s cultural values. However, cultural differences can also pose challenges to the product’s success. The South African and Korean cultures vastly differ, and Herbal Remedies may resonate with Korean consumers less than African ones (De Mooij & Hofstede, 2011). Therefore, the product may require localization to make it more appealing to Korean consumers.
Secondly, it is essential to recognize Korea as an affluent country with a growing economy. The country has a well-developed healthcare system, and consumers have a high disposable income, so they are willing to spend more on healthcare products. Therefore, Herbal Remedies, a natural healthcare product, may have significant market potential in Korea. However, the product’s price point may need to be adjusted to cater to Korean consumers’ expectations and purchasing power.
Thirdly, Political stability is crucial for any foreign company entering the Korean market. According to Hauge (2020), Korea has a stable political environment and has implemented various policies to promote foreign investment. Furthermore, the Korean government has implemented various regulations and policies to ensure the safety and quality of healthcare products. Therefore, Herbal Remedies can easily enter the market without any political hurdles and must comply with the regulatory framework to enter the Korean market, including the products’ quality. It would need more clinical trials and obtain the necessary approvals to sell the product in Korea.
In addition, the logistics of importing and distributing herbal remedies must also be considered. To ensure the products are safe, effective, and of good quality, the suppliers of these local herbs must meet the necessary safety standards and regulations (Hauge, 2020). Considering the cost of importing the products and the potential for counterfeits must be taken into account.
Without a doubt, Korean consumers have unique needs, preferences, and behaviours regarding healthcare products. The Korean market is highly competitive, and consumers are well-informed and highly educated about the products they purchase (De Mooij & Hofstede, 2011). Therefore, Herbal Remedies must differentiate itself from other products in the market to gain a competitive edge. Most consumers prefer natural healthcare consumable supplement products. Therefore, Herbal Remedies’ natural ingredients can be an advantage, so the product’s efficacy and safety will be crucial in gaining consumer trust.
Once the research has been conducted and the regulatory framework has been considered, it is critical to focus on quality assurance. Kim et al. (2020) assert that Quality assurance is essential as it ensures that the herbal remedies meet the standards of the Korean market. This process involves testing the herbal remedies for safety and efficacy and ensuring that the production process complies with the applicable regulations. Hence the marketing strategy should include a combination of traditional and digital marketing tactics, such as print advertisements, television commercials, and social media campaigns. It is also important, therefore, to develop a strong brand identity to differentiate herbal remedies from the competition.
On the other hand, Technology and new trends can have a major impact on the success of Herbal Remedies if properly utilized. Herbal Remedies have the potential to benefit from the use of technology and new trends to develop innovative products (Song et al., 2016). For example, before introducing Herbal Remedies, we could leverage the power of the internet to reach a larger global audience by creating a website to showcase their products and services. This means using analytics to track customer data and better tailor their offerings to meet customer needs, streamline processes, and increase efficiency.
Moreover, with the current increase in social media usage, herbal remedies could use social media to reach a wider global audience in Korea. Specifically, they could leverage the power of Facebook, Instagram, and Twitter to promote their products and services (Song et al., 2016). For instance, the incorporation of online platforms that would significantly engage with customers, respond to inquiries and provide appropriate feedback and helpful information on how to utilize their products best.
Sustainability and Ethical Practices
Herbal Remedies is committed to sustainability and ethical practices. For example, they source only natural ingredients and use environmentally friendly packaging whenever possible. Therefore, introducing it to the Korean market only indicates that the market practices will be able to adopt a policy of zero animal testing further and are committed to the humane treatment of animals (Kim et al.,2020). Even the manufacturing practices are geared towards safety and respect for the environment. Partnering with organizations committed to sustainability and ethical practices would be an added advantage in ensuring the supplements are eco-friendly and recyclable.
In conclusion, while introducing herbal remedies from South Africa into a new Korean market presents some challenges, it can also be a great opportunity. With the right research, quality assurance, and marketing strategy, South African herbal remedies can be successful in the Korean market. In order to capitalize on this opportunity, it is essential to conduct thorough research on the Korean market, the potential customer base, and the herbal remedies themselves. Quality assurance is also important, as it will help ensure that the herbal remedies are safe and effective and achieve success with a comprehensive marketing strategy.
Chen, S. (2016). Cultural technology: A framework for marketing cultural exports–analysis of Hallyu (the Korean wave). International Marketing Review. https://www.emerald.com/insight/content/doi/10.1108/IMR-07-2014-0219/full/html
De Mooij, M., & Hofstede, G. (2011). Cross-cultural consumer behavior: A review of research findings. Journal of international consumer marketing, 23(3-4), 181-192. https://www.tandfonline.com/doi/abs/10.1080/08961530.2011.578057
Hauge, J. (2020). Industrial policy in the era of global value chains: Towards a developmentalist framework drawing on the industrialization experiences of South Korea and Taiwan. The World Economy, 43(8), 2070-2092. https://onlinelibrary.wiley.com/doi/abs/10.1111/twec.12922
Kim, Y., Kwon, H. Y., Godman, B., Moorkens, E., Simoens, S., & Bae, S. (2020). Uptake of biosimilar infliximab in the UK, France, Japan, and Korea: budget savings or market expansion across countries?. Frontiers in pharmacology, 11, 970.
Song, H., Omori, K., Kim, J., Tenzek, K. E., Hawkins, J. M., Lin, W. Y., … & Jung, J. Y. (2016). Trusting social media as a source of health information: online surveys comparing the United States, Korea, and Hong Kong. Journal of medical Internet research, 18(3), e25. https://www.jmir.org/2016/3/e25/