As stated earlier, Surtrading’s business plan calls for them to sell dairy products, in commoditized form, to both an importer and distributor (del Carril, M. 2014). In doing so, the promotion cost to the end-user fall solely on the importer and distributor as they are most likely responsible for all of the costs once the products enter their country (this may or may not be the case depending on the incoterm selected in the contract). Since Surtrading is responsible for locating the distributor or importer, so that is what their promotional strategy should focus on. Any promotion that represents a reoccurring cost should be abandoned as often times the type of promotion entails some type of medium to long-term contract. This is undesirable because once a regional partner is located to distribute the commodity, any costs spent after that on acquiring additional customers are unnecessary and potentially unrecoverable.
Television is the most highly viewed form of media in South Korea and thereby reaches the most consumers. Television ads are more inexpensive than comparative slots in the United States. Generally speaking, the rate per 30 second ad in South Korea is around $15,800 during peak hours, versus nearly $50,000 in the United States. Major magazine and trade journal advertisement costs are also less expensive; with a full page ad in a major magazine or trade journal averaging $2,600. This compares to over $18k in the United States (“Country Market Analysis: South Korea,” 2014). However, with the strategy of reaching an importer/distributor versus an end consumer, these forms of advertising may not be the best use of funds.
Instead, Surtrading may desire to focus on tradeshows, where large distributors can be found for their product. In the next 18 months there are two trade shows in Korea that may be of interest to Surtrading:
• SEOUL FOOD & HOTEL is a show that occurs in May each year in Seoul. This trade show features everything from the hospitality to the grocery store industries. It may be the perfect place to find a distributor looking for commodity dairy products. The next trade show is scheduled for May 13th to the 17th, 2014. The cost for a booth is anywhere between $310 to 400 dollars per square meter with sizes from 9 to 36 square meters. Information on this trade show can be found in here: http://www.seoulfoodnhotel.co.kr/2009_IFIES_Allworld/01_exhibition_info/seoulfood.asp
• GWANGJU INTERNATIONAL FOOD FAIR is a show that occurs in November each year, in Gwangju-si. The focus of this trade fair is everything from Agricultural and marine products to food additives and drinks. The next fair is in November. Costs for a booth at this show were unavailable however it is expected to be near the same as the SEOUL FOOD and HOTEL show. Information on this trade show can be found here: http://foodshow.kr/en/
In Morocco, promotion through a trade journal or television may not be ideal...