5. Channel selection.

Cong Caphe will launch a new product “Coconut smoothie coffee in can” as well as new flavours for the
drinks at each coffee shop. Therefore, choosing suitable channels to introduce and sell these new products
are necessary.

 Distribution channels:
-Each Cong Caphe coffee shop: This is obviously the most important channel to introduce the new
products and new flavors, especially with a new oraganization like Cong Caphe in a foreign and high-
competitive market like South Korea.
-Convenience stores: Convenience stores have become an important retail channel, having the second
largest share in offline retail sales in South Korea (Jobst, 2021). Especially during the pandemic time, the
number of consumers who refrain from going far away from their homes due to the spread of the Covid-
19 pandemic increase, and they prefer purchasing in convience stores. In Korea, the high convenience
store density suggests that convenience stores are highly accessible and thus have become favoured by
consumers looking to quickly pick up some grocery items (Santader, 2017). Therefore, Cong Caphe
should sell the new product in this channel to increase the opportunity of attracting new consumers.
Popular convenience stores in South Korea are: CU, GS25, 7Eleven…
-E-commerce platform: As becoming one of the strongest retailing channels in South Korea, Cong
Caphe can select this channel to build their online store for competing in a long-term. According to a
report by Research and Market e-commerce sales already made up nearly 20% of total retail sales due to
factors such as a developed Internet infrastructure and having the highest Internet penetration rate in the
region (Santader, 2017). Some potential E-platforms are: Ebay Korea, Auction, G-market…

 Advertising channels:
-Each Cong Caphe coffee shop: For current consumers, the best way, also the least expensive is
advertising at selling points.
-Social media: As of the third quarter 2017, out of a population of 51.25 million, 84% of the population
were active social media users (around 43 million). Therefore, Cong Caphe should focus on their fanpage
on Facebook or conduct advertising campaign on Facebook and Kakaostory. Almost 30 million users are
on KakaoStory, a social network inspired by KakaoTalk, while 26.6 million use Facebook.
Reference:
Jobst. N. (2021). Convenience stores in South Korea - statistics & facts.
https://www.statista.com/topics/8049/convenience-stores-in-south-korea/
Santader. (2017). South Korea: Distributing a product. https://santandertrade.com/en/portal/analyse-
markets/south-korea/distributing-a-product