St. Cecilia's College-Cebu, Inc.

A LASSO-Supervised School - Ward II, Poblacion Minglanilla, Cebu

Market Entry Strategy Plan

In Partial Fulfillment

of the Requirements for the Course

International Business and Trade

Submitted by :

Maneja, Caren Abarado, Rovic

Drilon, Angelyn Oroc, Jiezel Ann

Padilla, Beegay Tomarong, Angel Rose

Canoy, Alexander

Submitted to:

Ralfh Julius T. Delator,MBA, LPT

Teacher

May 2024
 TABLE OF CONTENTS

Page

(옹기) Ongi Company...................................................................................................................................

EXECUTIVE SUMMARY..........................................................................................................................

PRODUCT OVERVIEW.............................................................................................................................

MARKET PLAN..........................................................................................................................................

Research and Analysis............................................................................................................................

Typical Customer Profile.......................................................................................................................

Marketing Strategy(4P’s).......................................................................................................................

REFERENCES.............................................................................................................................................

APPENDICES...............................................................................................................................................

Appendix A..............................................................................................................................................

Appendix B..............................................................................................................................................

Appendix C..............................................................................................................................................

Appendix D..............................................................................................................................................

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 (옹기) Ongi Company

“Heat Up Your Space with Ongi.”

VISION

To be the most trusted source of portable warmth, creating comfortable

environments wherever you need them. To revolutionize portable warmth,

making comfort accessible in any corner of the world, from chilly offices to cozy

campsites.

MISSION

We are dedicated to crafting safe, sustainable, and user-friendly portable

heaters that empower individuals to create their own personal haven of warmth,

wherever life takes them.

CORE VALUES OF PORTABLE HEATER

● Safety First: Prioritizes user safety through features like automatic shut-off, tip-

over protection, and cool-to-touch surfaces. Complies with all relevant safety

regulations.

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● Portable and Powerful: Lightweight and compact for easy transport and storage.

Delivers efficient and powerful heating for its size.

● Adaptable and Ambient: Offers adjustable temperature settings for personalized

comfort. Creates a warm and inviting atmosphere in any space.

● Convenient and Controlled: Easy to operate with user-friendly controls.Features

like timers and thermostats for convenient temperature management.

● Eco-Conscious: Employs energy-efficient technology to minimize environmental

impact.

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 EXECUTIVE SUMMARY

The business has identified a potential market for a heater that is portable and can

be used anywhere in the home. Since Gangwon-Do experiences nighttime lows of 0°C to

-5°C during the winter (Appendix B.1), residents usually resort to using mats and

blankets to stay warm, which may be extremely problematic as it only warms one person

at a time. Regarding the growing demand for a portable, eco-friendly, and effective

heating appliance in Gangwon-Do, South Korea. Description The Ongi Company came

up with the Ongi heater, a heater that heats a complete room using solar energy and has a

feature akin to an air conditioner. We discovered through our market research and

analysis that there are certain demands that must be satisfied for the mats and blankets

before we can provide them a quality product.

The goal in producing high-end, safe, and efficient appliances for the Gangwon-

Do market was to employ the STP approach. highlighting the special qualities of our

portable heater and making an effort to appeal to the Geographic and Demographic

Segmentation. The entire marketing approach, based on the 4P's framework, emphasizes

superior product quality, high-end pricing, focused promotions, and well-planned

placement to increase exposure and accessibility. The goal is to become the industry

leader in South Korea's heating appliance market by putting a high priority on our core

values such as portability, safety, efficiency, and environmental friendliness. Company is

positioned to take a sizable market share and achieve sustainable growth by exceeding

customer expectations and providing unmatched warmth and comfort, all the while

enhancing the lives of the clients.

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 PRODUCT OVERVIEW

Ongi Heater is an innovative way to keep Korean households warm, extending

from traditional Ongol to electric heat mats and blankets. Ongi heater is inspired by a

similar product from Japan called "Kotatsu," which is a table with a built-in heater that

people can place their bodies inside to remain warm during the winter. With the goal of

keeping Korean households warm, our company developed a portable heater that can be

hung throughout the home. Instead of heating a tiny space as Kotatsu does, or heating the

floor/mats/blankets as most Koreans do. Ongi heaters can warm a room, which is a better

option.

Figure 1: Product Image

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 MARKET PLAN

Research and Analysis

Warm stone, or Ondol radiant floor heating, is found in more than 90% of South

Korean homes. Koreans have a custom of keeping heating appliances in their homes for

usage in the winter. This type of conventional floor heating method is gradually being

forgotten as a growing number of modern houses are built. Koreans are modernizing

their homes, and as a result, new technologies, methods, and supplies have been

developed for keeping their homes warm. Currently, the most popular items used to keep

them warm are electric blankets and heating mats.

Although new products have come up and want to bring warm comfort, they

possess some risk and the budget is not friendly for most average Korean households.

According to KyuheeHan. (2021, January 17) Electric blankets can cause burns on its

user that they’ll need to pay attention to the temperature and how long you keep it on to

avoid burn injuries. A heating mat costs between 50,000 and 300,000 won and it's

expensive for a product that can only be used in the winter season(Appendix D.2).

While there's only a single data point to definitively measure the demand for

electric heating mats in Korea, several factors indicate strong demand. KyuheeHan.

(2021b, January 17) explained, South Korea experiences cold winters with temperatures

dropping below freezing, creating a strong need for heating solutions .In Gangwon-do

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during the month of January, February, and December their temperature during night

ranges from 0°C celsius to -5°C (Appendix B.2).

Additionally, a data shows from (“겨울 필수템 ‘미니히터&온풍기’, 그

트렌드를 알아보자! [차트뉴스] : 다나와 DPG,” 2021) explained, that in

the current market, electric heaters and hot air heaters with

lower power consumption are mainly chosen by consumers.

According to Tanawa's data on heating equipment sales over the

past four years, electric heaters are the most popular heater,

consistently ranking first with a sales share of over 30%. Next

is the hot air blower, which has a sales share in the low 20%

range, which is lower than that of electric heaters, and this

figure is gradually increasing every year (Appendix B.3). The

widespread availability of electric heating mats at various

price points across South Korean retailers suggests significant

consumer demand (Examples: Amazon product listing for Korean

heating mat). According to Statista. (2024, February 20). In 2023,

the online shopping transaction value was the Home electric

appliance ranked 4th category as online shoppers spent about

24.09 trillion South Korean won on Home electric appliances.

(Appendix B.4)

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 Based on the evidence, the demand for electric blankets and electric heating mats

in Korea is likely high. The cold climate, cultural preference for targeted warmth, and

product availability all point towards a significant market. The data might not be a single

figure, but these factors provide strong indications of the demand for electric heating

mats in South Korea.

Typical Customer Profile

Market Segmentation of Ongi Heater in Gangwon-Do:

Demographic Segmentation Geographic Segmentation

● Target Audience: Young professionals and ● Location: Gangwon-Do city and

families with children surrounding areas
● Age: 18-45 years ● Climate: Cold winters and moderate
● Income Level: ₩ 2,060,740 to 3,890,000 summers
KRW ● Areas with higher demand for heating
● Occupation: Working professionals or solutions
business owners
● Family Size: Small to medium-sized
families

Psychographic Segmentation Behavioral Segmentation

● Lifestyle: Value comfort, relaxation, and ● Usage Patterns: Prefer energy-efficient,

traditional home furnishings
● Interests: Home decor, cultural products
● Attitudes: Appreciation and inclusivity
for Japanese design and craftsmanship to
Korean people
power by renewable energy and space-
saving solutions
● Benefits Sought: Seek cozy and
practical heating solutions
● Brand Loyalty: Open to trying new
products in the home decor category

Market Targeting of Ongi Heater in Gangwon-Do:

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 Based on the segmentation analysis, the target market for Ongi Heater in

Gangwon-Do Includes young professionals and families with children who value

comfort, energy efficiency, and traditional home furnishings. The marketing strategies

should focus on reaching this specific audience through targeted advertising campaigns,

collaborations with local home decor stores, and online platforms popular among the

target demographic.

Market Positioning of Ongi heater in Gangwon-Do:

Ongi Heater will be positioned in Gangwon-Do, South Korea as a premium yet

affordable heating solution that combines traditional Japanese design with modern

functionality. Emphasis will be placed on its unique features such as adjustable

temperature settings, compact design, and energy efficiency. Ongi Heater will be

positioned as a cozy and inviting addition to homes in Gangwon-Do's cold climate,

highlighting its quality craftsmanship, durability, and cultural appeal.

Marketing Strategy(4P’s)

Product:

A portable heater is a small, moveable heater that provides localized heat in

Korean homes. Ongi heaters are used to warm up small places like bedrooms, offices, or

specific areas inside a room( Appendix, D.1). Our appliance has a unique advantage in

that it is capable of being hung anywhere in the house, unlike other appliances that only

heat in one location and might cause burn damage. The selling feature of this product is

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that it heats up a room, whereas other competitors require the customer to lie down on a

mat or be covered by a blanket to be warm at night.

Pricing:

Pricing strategy based on the pricing of competitors' brands:

Product expense per item = 190,000.00 KRW

Possible cost = 190,000.00 KRW

= 190,000.00 KRW + 26% (mark up)

= 190,000.00 KRW + 49,400 KRW

Possible cost = 239,400.00 KRW

Koreans are eager to acquire products that they believe would provide them with

comfort. For example, electric heated mats cost between 50,000 and 300,000 won per

person(Appendix D.2), and Koreans are willing to buy them. Our device now has more

features than comparable appliances while costing less due to its sustainable energy

sources. The materials are of great quality and reasonable cost. The price ranges from

250,000 KRW to 350,000 KRW, while in the Philippine peso it ranges from 10,492.48

PHP to 14,689.82 PHP, establishing them as a premium appliance in the winter market.

Ongi Heater prices are determined by the materials utilized as well as the income of the

minimum-earning household.

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Promotion:

The Ongi heater will be promoted with a comprehensive marketing plan that includes:

Utilize the social media platforms: Over 48 million South Koreans, or 93% of the

country's population, are active social media users( Appendix B.5). We will make a

website in Korean with concise benefits and the product details. Conduct a focused social

media marketing efforts on KakaoTalk and Naver. Collaborate with Korean influencers

to make product reviews and evaluations. Create engaging video content showcasing the

appliance in everyday use. (Appendices, Figure 3 and 4)

Figure 3: Facebook page

Figure 4: Instagram Channel

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Local retailers and Distributors Collaboration: Attend trade events for

appliances and home renovation products. Join forces with large shops to run

promotions and demos in-store. Place print ads in well-known Gangwon-Do

Korean home magazines. Offering free consultations or heating assessments to

potential customers.

Figure 5:Brochure

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Figure 6: Infographic and Poster

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Place/Distribution Strategy:

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 Using a mix of air and marine freight will be the distribution strategy for

moving goods from Cogon Pardo, Cebu, Philippines to Gangwon-Do, South

Korea. Cebu's international airport and thriving seaport offer easy access to

numerous shipping routes, making it a key hub for trade in the Philippines. Using

the many direct flights that connect the two cities, goods can be shipped via air

freight from Cebu to Gangwon-Do. Sea freight is an option for larger shipments;

containers are loaded onto cargo ships that sail from the port of Cebu to ports in

South Korea. By ensuring prompt and effective transportation of commodities

from Pardo, Cebu to Gangwon-Do, South Korea, this strategic distribution plan

satisfies the needs of the South Korean market.

In Gangwon-Do, South Korea offers a mix of online and offline

distribution channels for heating appliances. We came up with the idea of

combining both in which people can do online research and purchase with options

for in-store pickup or delivery. We will utilize online platforms to promote

physical store locations and vice versa

REFERENCES

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Cervi, M. (2024, January 22). Social media in South Korea in 2024. InterAd.

https://www.interad.com/en/insights/social-media-korea#:~:text=As%20of

%20February%202023%2C%20there,media%2C%20using%204.5%20different

%20platforms.

Climate: Gangwon-do in South Korea. (n.d.). Worlddata.info.

https://www.worlddata.info/asia/south-korea/climate-gangwon-do.php

Esa, J. (2023, June 22). What is a Kotatsu? Choosing the Best Japanese Heated

Table. Japan Objects. https://japanobjects.com/features/kotatsu

[GMarket] Hot water mat / Hot water boiler mat / Hot water Heating Mat/Queen.

(n.d.). https://global.gmarket.co.kr/item?goodscode=1112848277

Gangwon-do, KR Climate Zone, monthly weather averages and historical data.

(n.d.). https://weatherandclimate.com/south-korea/gangwon-do

KyuheeHan. (2021, January 17). Creatrip. Creatrip.

https://creatrip.com/en/blog/4459

Statista. (2024b, February 20). Online shopping transaction value South Korea

2023, by category. https://www.statista.com/statistics/314776/most-popular-

social-commerce-product-categories-in-south-korea/

APPENDICES
Appendix A

Map

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Appendix A.1. Map of Gangwon-Do, South Korea

Appendix A.2. Map of Cogon, Pardo, Cebu city

Appendix B

Statistics and Datas

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Appendix B.1. Graph depicting the climate range of Gwangwon-Do, South Korea

Appendix B.2.Graph of Gangwon-Do’s temperature during winter season

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 Appendix B.3. Graph of Market data of Electric Heater in Korea

Appendix B.4. Graph of Online shopping transaction value of leading product categories
in South Korea in 2023

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Appendix B.5. Graph of Basis of Promotional Strategy

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Appendix C

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 Appendix D

Product and Price Basis

Appendix C.1. Product image and specifications

Appendix C.2. Average pricing for electric mats

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Appendix C.3.Online marketing promotion Facebook

Appendix C.4.Online marketing promotion Instagram

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 Appendix C.5. Brochure Promotional Strategy

Appendix C.6. Infographics and Poster Promotional Strategy

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