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Introduction THE HISTORY OF RALSTON PURINA The history of Ralston Purina Company is paved with vivid, often disparate

images from Brain Bread to dog litter, from Maud the Mule to the Energizer Bunny, from Purina Layena to Purina Dog Chow brand. The one thread throughout this curious evolution is the ability to adapt. The Darwinian Concept of biological survival applied to business is not new. In 1893, William H.Danforth, founded Raslton Purina Company by producing the first product that is food for hourses. In 1894, Robinson-Danforth Commission Company is founded in St. Louis. As the usage of houses on daily life decrease, food for houses product will decrease so the founder enters the human foods market in 1898 with Purina Wheat and a line of whole-wheat breakfast cereals.In 1896, the Robinson-Danforth Commission Company was formed, and the little feed business was going full steam. In March that year, a tornado crushed the mill. Mr. Danforth then go to borrow money from the bank and rebuilt the mill, the present sight of Ralston Purina Company headquarters. In 1989, William H. Danforth assumes a leadership position and enters the cereal business with the endorsement of "Dr. Ralston." By 1902, the names Ralston and Purina had become so widely known that the name of the firm was changed to Ralston Purina Company. In the same year, Mr. Danforth used red and white checkerboard for the company dreses. The Checkerboard trademark has since been used with a consistency unique in American business. Even Company headquarters in St. Louis is known as Checkerboard Square. In 1914 after the World War Two, Ralston Purina Company began to produce food for animals. The Company also expanded their products to other country starting with France. In 1926, The Purina Pet Care Center opened, and feeding trials and nutritional studies began. The Purina Pet Care Center is the oldest and largest facility in the world devoted exclusively to pet nutrition and care. The American economy derails in October 1929. The GNP falls more than 45 percent from 1929 to 1933, dropping to the level of 1916. In 1931 Ralston registers its first net loss half a million dollars. Company and begins a program of expansion, opening six new mills by 1935 to establish a decentralized production and distribution

base. After 1932 Purina never again operates in the red, and by 1939 elevates profits to $2.9 million. In 1959, Ralston manufactures and sells 5 million tons of Chow brand animal feed for the first time. By 1966, Ralston sales top $1 billion for the first time while profits increase to $44 million. Ralston Purina International (RPI) and the Protein Division continue to expand geographically. Jan. 10, 1962 in New York, Company officials celebrated the listing of Ralston Purina stock on the New York Stock Exchange. In 1966, Ralston achieves its first $1 billion sales year. Ralston's direction change so dramatically. Ralston begins the transformation by selling its Foodmaker restaurant operations, Van Camp and the St. Louis Blues hockey franchise. On August 16, 1993, Ralston announces it is analyzing the possible separation of its cereal, baby-food and smaller grocery human-foods businesses into a freestanding company. In 2001 Ralston Purina Company merges with Nestl subsidiary. Nestl Purina Pet Care Company is created. Now, Ralston Purina Company is the world's largest producer of dry dog and dry and soft-moist cat foods and a leading producer of cat box filler in the U.S. and Canada. At one time, the Company was one of the 100 largest corporations in America, and it currently ranks in the top 250. The Brands of Purina Alpo, Fancy feast, Frinkies, Pro plan, Tidy cats, Purina one are brands that market in Malaysia. Alpo and pro plan are brands of dogs food. Fancy feast, Friskies and Tidy cats are brands of cats food. Purina One is a brand that organizes the activities for pets and offer tips for pet owners on taking care of their pets. ALPO Alpo gives dogs the meaty taste of todays Dog Food. Alpo are products that provide delicious wet food, and crunchy dry food. There are 6 types of Alpos products sold in Malaysia. ALPO puppy contains beef and vegetable with milk essentials that comes with 500g, 1.5kg, 3kg and 8kg. Alpo small and toy beef, chicken, vegetable with milk essentials that comes out with 500g, 1.5kg and 3kg. Alpo low fat chicken, liver and vegetable that comes with500g, 1.5kg, 3kg. Alpo salmon, rice and vegetable that comes

out with 450g and 2.7 kg. Alpo adult chicken, liver and vegetable that comes out with 500g, 1.5kg, 3kg,10kg. Alpo adult beef, liver and vegetable that comes out with 500g, 1.5kg, 3kg,10kg. Alpo has now comes with Alpo 2 in1 offers dogs delicious taste and texture variety anytime. Each nutritious kibbles of ALPO 2 in 1 is infused with mouth-watering meat juice and is serve dry for a delicious, crunchy meal. Or can be serve by just adding room temperature water and stir to release the meat juices to create a delivious combination of a juicy sauce, coating each crunchy, nutritious kibble. Alpo 2 in 1, chicken and vegetable comes out with 500g, 1.5kg, 3kg. Pro Plan Pro Plan is made from real fresh meat/poultry/salmon. This is the one and only brand with a 14 year study on Labradors that proves PRO PLAN diets can deliver adequate nutrition for life. The high quality and easily digestible sources of protein in our formulas promote proper growth and a rich, lustrous coat. Add to that optimal protein to fat ratio that enables efficient use of fat for energy and protein for muscle rebuilding, and you have a food that will help bring out a dog's best. Dry Dog Food Pro Plan Dry Dog Food have four types of packaging. Pro plan Chicken & Rice is suitable for small breed adult dogs, with normal daily activities requiring the development of excellent body structure. Pro Plan Small Breed is suitable for adult dogs of all breed, with normal daily activities requiring the development of excellent body structure. Optimal protein level to fat ratio helps maintain lean body mass to help small breed dogs stay stronger, longer. Pro Plan Lamb and Rice is suitable for adult dogs is made with all natural ingredients with added vitamins and minerals. Pro Plan Performance is suitable for hardworking, pregnant or lactating dogs. Optimal protein to fat ratio helps maintain lean body mass and helps active dogs maintain energy and endurance. All the four products are available in 3.63kg (except Performance) & 17kg. Puppy

Pro Plan Puppy have three types of product. Pro Plan Puppy lamb and rice natural lamb & rice formula for Puppies provides complete and balanced nutrition for the growth of puppies, females in stages of gestation and lactation, and maintenance of adult dogs.Available in 2.72kg and 17kg. Pro Plan Puppy chicken and rice is suitable for medium and large breed puppies during their important formative years of exercise and daily activity. Pro Plan Puppy small breed is suitable for small breed puppies with normal daily activities and requiring development of excellent body structures. Available in 2.72kg, 9kg. Extra Care for dogs Pro Plan Sensitive Skin & Stomach is suitable for adult dogs with sensitivities to common pet food ingredients. Contains high levels of Omega fatty acids and a unique blend of ingredients for dogs to help reduce skin irritation and itching. Dry Cat Food Pro Plan Dry Cat Food comes with two types of product. Pro Plan Dry Cat Food chicken and rice is made with real chicken and highly digestible rice for exceptional nutrition and palatability. It is specially formulated to help bolster your cat's key protective systems - the immune system, digestive system and skin & coat system - and supply the energy and nutritional needs of a healthy adult cat. Pro Plan Salmon and rice is made with real salmon and highly digestible rice for exceptional nutrition and palatability. It is specially formulated to bolster your cat's key protective systems - the immune system, digestive system and skin & coat system - and supply the energy and nutritional needs of a healthy adult cat. Dry Cat Food is suitable for Adult cats. Pro plan Kittens chicken and rice is specially formulated to bolster the key protective systems and supply the nutritional needs of a growing kitten and provides high levels of protein to help promote muscle development for strength, and a healthy energy level. Available in 1.8kg and 3.6kg. Extra care for cats

Pro plan Indoor cat is specially designed for indoor cats and the circumstances they face. It is made with real turkey for a taste cats love, and it is specially formulated to help bolster your cat's key protective systems - the immune system, digestive system and skin & coat system - while it meets the energy and nutritional needs of a healthy adult cat. Pro Plan Hairball Management is specially designed to help reduce the occurrence of hairballs. It uses natural fiber to move hair gently through digestive tract and an emulsifier to help control the formation of hairballs. It is made with real chicken for excellent palatability, and it is specially formulated to help bolster your cat's key protective systems - the immune system, digestive system and skin & coat system - while it meets the energy and nutritional needs of a healthy adult cat. Friskies for cats Friskies for cats is one of the brands of Purina that produces cat food. The cat food produces in great taste, nutrition and an unmatched selection of flavors and forms. There are two types of friskies for cat which is friskies dry and friskies wet. Friskies dry is put in pack. It is available in 80g, 500g, 1.5kg, 3.5kg, and 7kg. There are six types of Friskies dry. Friskies kitten with milk essentials available in 80g, 500g, and1.5kg. Friskies gourmet with milk essentials available in 500g, 1.5kg, and 3.5kg. Friskies tuna and sardine with milk essentials available in 500g, 1.5kg, and 3.5kg. Friskies oceanfish with marine balance available in 80g, 500g, 1.5kg, 3.5kg, and 7kg. Friskies beef chicken and vegetables available in 500g, 1.5kg, and 3.5kg. Friskies wet is put in tin. It is available in 85g and 400g only. Friskies kitten with mackerel and chicken, Friskies tuna and mackerel, Friskies markerel abd sardines, and Friskies tuna and liver are also available in 85g. Friskies oceanfish is available in 85g and 400g. Friskies mackerel, Friskies seafood platter, Friskies pure tuna, Friskies tuna in aspic, and Friskies sar, shrimp and squid are in 400g. Fancy feast Royale A cat food that features a luxurious assortment of single-serve gourmet entres that will satisfy its every desire and keep it purring with contentment. There are 12 varieties to choose from. This include Tuna Banquet with Whole Prawns, Tuna

Whitemeat Supreme, Tuna & Snapper Delight with Prawns, Yellow Fin Tuna with Whole Shrimp, Whitemeat Tuna Affair with Seafood Strips, Virgin Flaked Tuna, Tender Chicken in Seafood Sauce, Roasted Succulent Chicken, Seafood & Chicken Medley Glazed in Tuna, Jus Fine Flakes of Tuna, Tender Tuna Tossed with Whitebait, Tuna Flakes Fusion with Whitebait Tidy cats for litter Tidy cats for litter is one of the brands from Purina that only use to clean up the kitten. This accessory is specially formulated to offer strong odor protection for multiple cat households. Tidy cats Multiple cat is the product that produce by Tidy cat for litter. It is available in 4.54kg conventional. Multiple cats involved powerful formula that can absorbs moisture and controls odor for an extended period, even in busy cat boxes. Besides that, this types of product requires little maintenance, use it for a week, dump it, and start over. It also can minimises tracking and eliminates 99.6% of airborne dust. Furthermore, multiple cats is high cat acceptance and it has a high significant value. Purina One Purina One is one of the brand of Purina products on how to manage pets health. Purina One gives you the nutritional tools you need to proactively manage your pet's health and long, active life through wellness and special formulas, all backed by the latest scientific research. There are three types of dog wellness formulas that produces by purina One.Purina One Healthy Puppy formula enriched with omega fatty acids and essential nutrients to nourish vital organs for lifelong health. It can easily digestible nutrition for your puppys developing digestive system, builds strong bones and muscles for healthy development, and antioxidant-rich, complete and balances nutrition helps develop a strong immune system. Purina One lamb and rice formula include real lamb and Purina One chicken and rice formula include real chicken. These two Purina One formula involved high-quality protein, promotes a lean, energetic body and healthy organs. It also enriched with omega

acids and vitamin E nourich healthy skin and a shiny coat. It have highly digestible ingredients help ensure optimal nutrient absorption and contain natural sources of glucosamine to help maintain healthy joints. The Purina One chicken and rice formula is now available in 500g, 1.5kg, 3 kg, and 7kg packs. There are two types of dog special care formulas that produces by Purine One. Purina One healthy weight management formula helps maintain lean muscle mass while promoting healthy weight. It is include optimal protein level that help dogs lose fat but not muscle. It is 25% less fat and 15% fewer calories than Purina One lamb and rice also contains natural sources of glucosamine to help maintain healthy joints. Purina One sensitive systems formula involved real salmon for ease of digestion. This formula easily digestible carbohydrate sources, rice and oatmeal, which are gentle on the digestive tract. It also involved linoleic acid and omega 6 fatty acid to help avoid dry, flaky skin of pet. This formula enriched with high level of vitamin E and omega fatty acids to help promote a vibrant coat and avoid excess sheeing of pet. Besides that, Purina One organized a 30-days performance challege to lead the participant to a happier and healthier four-leged friend. Pet will be change to better overall body condition, healthier and shinier coat. Besides that, pet will become more energy and increased alertness. Pet also can have a cleaner teeth and gums and fresh breath. Participate this activity can improved digestion of pet with smaller, firmer stools. Finally, pet can have clearner and clearer eyes.

History and background Introduction of South Korea Korea is a country that full with culture, history and beautiful natural environment. Religions of Korea involve Christianity, Buddhism, Shamanism, Confucianism, and Chondogyo. Language that use in Korea involves Korean and English widely taught in junior high and high school. It differs grammatically from Chinese. It also related to Japanese and Mongolian. With 48.5 millions of people, South Korea has one of the world's highest population densities include a small Chinese community. Major population centers are located in the northwest, southeast, and in the plains south of the Seoul-Incheon area. Korea repelled numerous foreign invasions despite domestic strife, in part due to its protected status in the Sino-centric regional political model during Korea's Chosun dynasty (1392-1910). In 1910, Japan began a 35-year period of colonial rule over Korea. In 1987, Roh Tae-woo( a former general) was elected president, but additional democratic advances during his tenure resulted in the 1992 election of a long-time prodemocracy activist, Kim Young-sam who became Korea's first civilian elected president in 32 years. The 1997 presidential election marked another step forward in Korea's democratization when Kim Dae-jung (a life-long democracy and human rights activist) was elected from a major opposition party. Roh Moo-hyun (self-educated human rights lawyer) won the presidential election in year 2007. Former business executive and Mayor of Seoul Lee Myung-bak's 5-year term began with his inauguration on February 25, 2008. We choose to promote our new product, pet umbrella to Korea because an estimated 18% of all household in Korea maintain a pet. The pet ownership in Korea has proliferated rapidly. South Korea has one of the world's highest population densities with 48.5 million peoples. So Korea has bigger market for us to target. Major population centers are located in the northwest, southeast, and in the plains south of the SeoulIncheon area. We are going to target to the capital of Korea, Seoul (10.3 millions). The average income per year of Korean is high so that they able to buy our product. Climate in Korea is temperate, but there is rainfall in summer and winter. This climate factors are an advantage to us, as we are introducing umbrella for both pets and owners. As such, Korea is working hard to support foreign invested companies. A good example is the

opening of the worlds largest LCD complex in Paju, just a kilometer form the Demilitarized Zone. Introduction of Product (Pet umbrella) The pet umbrella is design for our four-legged friends which are dogs and cats. Umbrella of human with a support frame is up, the pet umbrella is down with the antifolded over. The design of this type of umbrella fit to them as well. Under the umbrella also designs has the link which the dog chain fastens, then may simultaneously pull the dog chain. Our company also promoted the umbrella of different sizes to fit pets size. Strength Pets can get many benefits by using this umbrella. The pet umbrella has a 100% nylon canopy that repels water. In addition, the pet umbrella also has a clear area that allows you to keep an eye on your little furry friend. An handle with padded comfort grip covers the tubular, metal rod that supports the pet umbrella canopy. Pet umbrella has bendable handle for easy positioning. The angle rod can be adjusted to any angle and for comfortable strolling while you wait for your pet to do their "business". Besides that, pet umbrella can keeps pet dry while walking in the rain. Weakness Although pet umbrella has many strengths, it also has its weaknesses. When heavy rain, water from ground will bounced back to pets body. This will cause your little furry friend becomes dirty and wet. Besides that, the weight of umbrella is also one of the weaknesses. For example, if the dog is large, owner of the dog will have to carry a heavy umbrella that fits dog size. Opportunities Pet umbrella will be promote to others country,such as Singapore, Korea, United State ,and so on. This may causes competitors falling, meanwhile our companys share will increase.

Threat In the future, our company may face to the problems of slower market growth because there will be more competitors that design for pet umbrella in more unique ways. Competitors may copy our idea and design more fashions umbrella, this may causes our companys design out-dated.

P.E.S.T. Analysis Introduction of P.E.S.T PEST analysis is concerned with the environmental influences on a business. The acronym stands for the Political, Economic, Social and Technological issues that could affect the strategic development of a business. Identifying PEST influences is a useful way of summarizing the external environment in which a business operates.
P-Political Factors Environmental Law: One of the political factors to be considered in Korea is the environmental law. The economic prosperity in Korea came with an unquantifiable cost of environmental degradation. According to the 2008 Environmental Sustainability Index(survey of pollution), Korea ranks 122nd out of 146 countries (29th out of the total 30 OECD countries). Therefore, Korea is now focused on the environment law, which is a body of statutes, law, rules and regulations, on the interaction of humanity and the rest of the natural environment, to protect mother earth from the effects of human activity. Some of the examples written in these statutes are the waste management, air quality and water quality. In the analysis of Korean environmental law, some examples of the Resource Management Act 1991 (RMA) of New Zealand are used. The RMA is widely acknowledged to be among the most advanced pieces of environmental legislation in the world. Further, the ethics and values of the RMA carry the elements of ecological justice and long-term considerations on the basis of eco-centrism. When a product is sold, the whereabouts of the product after use is important. If the material of the pets umbrella is made of non-degradable material, it would definitely affect the environment in causing pollution, human disease etc. The construction of factories in order to produce goods or products is a must in expanding a business to another foreign country. However, this brings to us an important consideration regarding one of the contents in the environmental law. Factories and air pollution seem to be in corresponding unison when one of them is named. Another problem to be considered is the water quality. The building of factories is also somewhat synonym to water pollution. With the activities of factories comes raw sewage and industrial wastes which are chemical and toxic. This may become a problem for us when we want get the permit to build our factory in Korea due to the strict environmental law there. Solution: Our company needs to be aware of the method we produce our pets umbrella and the materials used in order to enter to the market of Korea. First, we will focus on the waste management by using the bio-degradable materials to make the pets umbrella. We will recycle using biological process in which the unwanted material is decomposed and recycled as compost for agricultural purposes. We will strengthen the concept of 3R, which stand for Reduce-Reuse-Recycle.

Besides this, we will also use the air cleaner to remove particles from flowing gas, air filters to filter pollutants. To make sure that our factory will not contaminate the water quality in Korea, we have a specialized treatment system to remove toxic components. We will also install the water filters to minimize the water pollution. We will try to use centralized sewage treatment plants which are able to remove over 90% of pollutants. After biological treatment, water may be recovered by adopting tertiary treatment that may be used for gardening/flushing and other utilities. The Compact Package plant is simple to operate, requires minimal maintenance, it requires minimum power, land & consumables for reducing operating cost. Employment/Laboring: Besides the environmental law, another political factor to be strictly considered is the employment/labor law. The employment law is a set of laws regarding the legal rights and restrictions of working people and their organizations, for example, the minimum wages, working hours, minimum working age, health and safety, welfare, and others. Article 93 of the Labor Standards Act of Korea (LSA) requires an employer with at least 10 employees to prepare and to uniformly regulate rules of employment as to all employees. If the conditions of employment are found to be inconsistent with the actual conditions, the worker concerned must be entitled to claim damage (art. 26(1), LSA). Korea pay attention to the welfare of employee, so when we want to operate our factory there, we need to consider about the labor laws there. We are required to specify to employees at the time of hiring, the calculation method and payment method of wages and it may increase our office work. Korea has strict labor laws when compared to Malaysia. Employers would need to specify to an employee at the time of hiring, whether orally or in writing, on the items such as the place of work and content of work assignment, and specify all other work condition matters in the relevant (written) employment rules or regulations (i.e., holidays, annual paid-leave, sick leave, etc.). This may increase our office work to deal with each employee and labor. Our company may need to spend more in the human resource department. The Labor Ministry of Korea publicly announced last August 1 that the minimum wage for 2008 shall be 3,770 Won, which is up 8.3% compared to 2007. As the public notice for the new minimum wage has been issued, every employer in Korea will be required to apply the minimum wage (as to their employees) from 2008. Any employer in violation of the minimum wage requirements and related regulations thereof may be subject to an imprisonment of up to 3 years or a fine of up to 20 million Won. One of the inevitable problems in expanding a business into a foreign country is of course, money. According to a report made, the minimum wages in Korea is approximately 3770 Won per hour which when converted to Ringgit Malaysia, is roughly RM10.70. Whereas in Malaysia, even though there is still no minimum wages listed in our employment law, it is understood to be around RM4-5 per hour. The difference is relatively high and the minimum wages in Korea keep on increase every year. This factor

plays an important role of consideration in starting a business abroad because employment of workers is inescapable in this part. According to LSA, equal treatment for limited-term, part-time or certain outsourced labor is needed. Employer will be prohibited from discriminating against temporary or part-time employees, or against dispatched workers. This may cause a problem for us because at first, we plan to hire more part time workers. It is because part time workers normally paid at a cheaper rate and care less for their welfare. However, in Korea, we need to treat the part time workers same as the full time workers, which means we need to pay more for the wages and their welfare. Solution: Due to the strict labor law in Korea, it may be hard for us to extend our product and industry in Korea if our company cannot fulfill the requirement of the government. Therefore, we may employ a lawyer in Korea because for sure they have a better understanding about Koreas law than a lawyer in Malaysia. The lawyer can help our company to check whether our company would violate the law of Korea so that we may not face any problems when we want to build our factory in Korea. Because the wage rate in Korea is quite high when compared to Malaysia, we may use more machinery instead of hiring labors to cut our cost. We will import machines from the western countries which can replace the labor. Purchasing all the machines from western countries may be too expensive and not cost effective, so, part of the machines we may buy from countries like China, would be much cheaper. We can also consider buying second hand machines from other factories. Although we will be using more machines in our factory, we will still need some workers. We can try to hire more full time workers rather than the part time one. This is because in hiring both part time and full time workers, the welfare of workers such as insurance of workers and the like must be considered. Therefore, it would be much wiser to hire full time workers. By hiring the full time worker, we can reduce the number of workers because normally the full time worker will work constantly and after they adapt in their work, they can work more efficiently.

E - Economic Factors Korea's impressive growth performance was part of what has been described as the East Asian miracle. Over the past three decades, Korea has enjoyed an annual average economic growth rate of 8.6 percent and has emerged as the world's 11th largest trading nation. GDP of Korea in year 2008 stands at $1.278 trillion. GDP growth rate for year 2004 is 4.6%; year 2005 is 4.0%; year 2006 is 5.2%; year 2007 is 5.1%; and lastly, year 2008 is 2.2%. The Korean tax system is build up by national and local taxes. Purina as a

foreign corporation in Korea is liable to pay corporation tax only on the income derived from sources within Korea. Nowadays, Korea becomes more knowledge-intensive; employment of professional technicians and skilled workers has increased. In result, unskilled workers in the manufacturing sector are declining. Although this factor will brings advantage to our company but at the same time, it will also cause a problem to our company. Our company will face problems in requiting unskilled labor. At the manufacturing stage, we need numerous of unskilled labor to do packaging, delivering and simple sewing work. To solve this problem, our company will plan to recruit low-cost unskilled labor from China. We choose to recruit labor from China because geographically, China is near to Korea and this will be easier for us to make transportation for them at low cost. By this way, we can save up a large sum of money as wages for china unskilled labor is much lower and transportation cost for unskilled labor will also become lower. Other than that, it will also be easier for us to recruit large amount of labor at short time as China is now facing serious unemployment problems, many of unemployment people in China is waiting for a job. Product: At Korea, we can segment our market into three segments, the first segment is people who do not have dog, the second segment is people who have a dog but will not willing to spend much money on their pets and the third segment is people who have a dog and willing to spend a lot of money on their dogs. Our company will be focusing on the third segment, which is pet lover who is preparing to spend large portion of money on their dogs. During these few years, people at this segment are increasing tremendously in Korea. Many of them consider a pet dog as part of their family member and give proper pet care to their dog. They will send their pets to pets kindergarten, spa, swimming pools, massage and even buy insurance for their dog. Based on date compiled by Korea Pet Product Association, Koreas pet industry represents 1.2 trillion (about $1.27 billion) in 2006 annual business. We can prove that operating pet industry in Korea is profitable and this market will still grow rapidly in future, so, we believed that our new product,

dogs umbrella will be best-selling. However, we encounter a problem on promoting our new product to segmented customers. We face this problem because in Korea, there are many competitors who are selling dogs accessories. Based on research, along the pet store district at Seoul, Toegyero, there are 40 pet-related establishments, many of them are selling pet accessory. This will be very difficult for us to enter this market and differentiate our new product to customers. To tackle this problem, we plan to invite a popular celebrity in Korea to become spokesperson of our new products, as people in Korea are well-known of like to follow current trend. Most of the new trends are bring out by celebrity, so the spokesperson must be powerful enough to influence people in Korea and at the same time, he or she must be a pet lover. Our marketing strategy is holding a fair on Korea popular shopping mall for 3days and for the first day, we will invite our spokesperson to attend this fair. We believe popularity of celebrity can help us to arouse customers curiosity and interest. During the three days fair, we will be doing demonstration on how to wear a dogs umbrella, having dogs umbrella fashion show, play some games and give out some free gifts. By this way, we can grab our customers attention effectively and efficiently. At this fair, we will not only selling dogs umbrella, but also other products of Purina such as dog biscuits and gums. We can promote and differentiate our new product and also our brand to people of Korea at the same time. Other than that, we will also advertise on television, newspaper and magazine. In results, dogs umbrella will become a future trend and hot topic in Korea, our ability to compete over rivals will also be strengthened. S Social Factors Income distribution: According to the statistics, the average household income in Korea is 2,937,504 won per month during the first quarter of 2005.The yearly amount of nine major consumption expenditure items in Korea are food& beverages, housing& fuel, light, water charges, furniture& utensils, clothing & footwear, medical care, education, culture& recreation, transportation& communication, and other expenditures. The household spending for the same period is 2,122,117 won. They spend 518,350 won on food and beverages (24.4%). However, Korean spend 381,885 won on

the other expenditures (18.0%). So that, Korean will willing to spend their money to buy some things that they need to use such as they buy necessities for their pets. Our company targets the customers in the middle class and upper class in the market, so our products will state in higher price. Some customers are in not the middle class or upper class and they unable to spend too much to buy our products. In this case, our company can reduce the cost of products and reduce the price, so we can target other lower class of customers in market and our customers will be increased because they enable to purchase our products. Demographic: The main language spoken in South Korea is Korean, while English is extensively taught in schools and is used for most educational purposes. According to the demographics of South Korea, the total population of the country has been estimated to be 49,044,790 in the year 2008. Most South Koreans live in cities. Seoul, the capital city, has more than 10million people. Most South Koreans live in cities, so their life is high standard and some of them will own pet in their home. Some of the pet owners taking care their pets well, so they will buy some necessities for their pets. Due to the main language spoken in South Korea are Korean and their education mostly using in Korean, so their English education is still in low level. In this case, our company will promote our products in Korea by employs Public Relations to help us promote the products used in Korean language. Arts and Cultures: The arts and culture of South Korea is rich and vibrant having a history of creative innovation in the field of painting, sculpture, music, dance, drama and literature. The contemporary South Korean culture derives much from the traditional Korean culture. South Koreans have developed a culture of their own which is different from North Korean culture. The arts and culture of South Korea has been greatly inspired by Confucianism and Buddhism which is evident in the style of architecture, housing, costumes, and beliefs.

Koreans are very open to change and are fast catching up with international trends. So, our company produces the umbrella with the designs related to the Koreas culture and our products design can be become more retro with the culture but the fashion stage still in modern.

Education: The education in Korea is higher because most Korean think that education is very important in their life. Higher education aims at teaching and studying fundamental academic theories and their various applications as necessary for the progress and enlightenment of society and the global community, with the aim of nurturing the nation's future leaders. Hence, our company can employ the employees that have higher education and lead them to promote our products in their country. They also understand more information of their country, so they can persuade customers to purchase our products.

Due to the education of Korean is very high, so they view the products with high requirement such are some of them do not like to purchase products that will pollute the environment. Hence, our products are produced by nylon and plastics that will pollute the environment and cause some customers dont want to buy our products. In this case, our company can use other materials to produce our products such as use biodegradable to product the umbrella but still in low cost. So, our products will be purchased by the customers. T - Technology Factors South Korea has high technology improvement from year to year. So, in technological competitiveness, South Korea is rated ninth in the world. As the South Korea government realized that the country needed to advance quickly in such areas as high tech to meet foreign competition and to grow its economy. The establish of institutes such as the Korea Development Institute (KDI) and the Korea

Institute of Science and Tech (KIST) provided not only excellent research environment but also prestige and remuneration for returning scientists. They not only directly contributed to improving local technological capabilities but also made cheaper sources of technology transfer available for South Korea at low cost. With technology transfer, our company can easily get more information on new materials and new skills to improve our product. Under its outward-oriented economy, which encouraged entrepreneurial contact with outsides, other opportunities were provided to literate Korean workers to indirectly facilitate the tech transfer. Educated workforce made it easy for buyers of output to provide tech-related product design, production processes, quality control, and other management know-how to help businesses deliver quality products with appropriate specifications and designs in a timely manner. This can ensure that when we are dealing with quality assurance the labor available in the country can manage it well. In this way, our company does not have to spend extra money on cultivating workers. Internet: In South Korea, they are having one of the fastest wireless broadband in the world.It is an everyday reality to have always-on superfast Internet -- broadband -- both in your cell phone and in your home in Korea. Some South Koreans can get up to 20 megabits of data per second. South Korea leads in the rollout of broadband, about 76 percent of households have broadband in South Korea. Broadband widens the digital data pipeline to allow complicated files, including pictures, graphics and video, to be downloaded at near-instant speed. Experts consider the development of broadband networks to be the single most important step for expanding digital technology and bringing cutting-edge computer applications directly into people's lives. Nowadays, many customers do not like to go out for shopping or busy for their jobs, so they mostly shop their necessities through telemarketing. Hence, some of them do not know our new product sold in the supermarket or shopping center already. In this case, our company can use telemarketing to promote our product and give our customers know the information of our product and order our product through internet. We can give the transport service to them if they purchase our product.

Some 75 percent of South Koreans have a mobile phone.South Korea has managed to leapfrog the United States in both broadband and mobile phone usage thanks to a population density that makes connectivity easier and government policies that promote development. South Korea also has a culture where people are crazy about playing online games and don't go home after work. Instead, they go to dinner, to karaoke or to a bar -- all the while using their mobile phones. Due to the wide usage of korean using phone surving the internet. Our company is going to have non-store retailing by giving convenience to koreans to order the product online. We will do as many advertising on famous website to promote our product. Our company needs to rent the selling to display our product in supermarket or shopping center and causes our companys cost will be increased for the rentals. In this case, our company can use the methods of telemarketing through internet. Then, our company can save the cost of rental for display our product. Transportation: Incheon International Airport of Korea served 63 airlines and 28.2 million passengers traveling to 142 cities in 43 countries in year 2006. By handling 2.31 million tonnes of international cargo, Incheon International Airport became the world's second largest airport which will connect the airport to Seoul Station which located in the heart of the Korean capital, providing linkage to the Korea Train Express(KTX), Koreas highspeed rail system, and thus dramatically enhancing eased access to Koress major cities. New facilities and systems are continuously being established such as road feeder service, an integrated air and maritime transportation system to handle freight from China. The port of Busan is the world's fifth largest container port, having handled a throughput of 12 million Twenty Equivalent Unit(TEU) in 2006. When a trans-Korean railway begins serving the peninsula end-to-end, Korea will be connected to the entire Eurasian continent from China, Russia and Mongolia to Central Asia and Europe, bringing the rest of the world much closer. Transportation in South Korea is provided by extensive networks of railways, highways, bus routes, ferry services, and air routes that criss-cross the country. Korail

provides frequent train service to all major South Korean cities. The Korean high-speed railway system is known as KTX (Korea Train Express). The principal railway line is the Gyeongbu Line, which connects the capital and largest city (Seoul) with the country's second largest city and largest seaport (Busan); the second is Honam Line, which branches off of the Gyeongbu Line at Daejeon, and ends at Gwangju or Mokpo. So, our company can save more cost of freight fees through use the train expresses to transport our products. By using train expresses, our company can also transport a large number of products to any country. Highways in South Korea are classified into freeways (expressways/motorways), national highways, and various classifications below the national level. Korea Highway Corporation operates the toll highways and service amenities en route. The highways make more convenience for our company to transport our products to any cities. Due to the cost of freight fees is very high by using the highways to transport our product because the government will charge high price of the toll fees and causes our companys cost will be increased. Besides, our company also using the airports to transport our products, so the price of products will be charged high price. In this case, our company can use the train express to delivery our products to every cities and delivery the products with other transportations in the cities. In this way, our company can save more cost of freight fees because not need to cross too many tolls in highways. Products: The pet umbrella features include a clear oblong arc trimmed with classic navy and green plaid. The fabric of the dog umbrella is waterproof. The sizes of umbrella are suitable for smaller size of dogs. So, the bigger size of pet cannot use this umbrella and cause our customers will decrease. In this case, our company will increase the sizes of umbrella for bigger size of pet and other customers can buy our product for their pet. An ergonomic angled handle with padded comfort grip allows you to walk with the umbrella attached to your dog's leash in comfort. Owners can adjust the handle of umbrella to any angle. Then, they can also adjust the length of umbrella that suitable for their height. In fact, the handle is specifically designed for your comfort as well as your

pets. The umbrella leash has a hook that attaches easily and quickly to your pet's collar. A clear umbrella body allows full view of your pet. The umbrella can be divided into few parts: canopy, shaft, ribs, stretchers and runner. The shaft of the umbrella is made by metal and the handle and runner are made by plastic. The function of runner is part that let the umbrella open up and close down. The quality of umbrella is no so high. It is because some dogs will rush any way and their owner will pull them hardly, so the umbrella will be broken easily. So, our company can improve the quality of umbrella but still in low cost. Besides, we can use other materials to add on the umbrella, so the umbrellas durability will be increased. The canopy is the cover of the umbrella. It is hand sewn in individual panels to the ribs. Each panel is cut separately from piles of materials called gores. The fabric used in a good-quality umbrella canopy is usually a nylon taffeta rated at 190T (190 threads per inch), with an acrylic coating on the underside and a scotch-guard type finish on the top. The coating and finish are usually applied by the fabric supplier. Due to the canopy of umbrella is made by nylon and it is caused the pollution for our environment by using nylon. In this way, our company can use other materials that can be recycled to made canopy of umbrella such as biodegradable. The ribs and stretchers are assembled first, usually from "U" shaped or channeled steel or other metal. Ribs run underneath the top or canopy of the umbrella; stretchers connect the ribs with the shaft of the umbrella. The ribs are attached to the shaft of the umbrella by fitting into a top notcha thin, round nylon or plastic piece with teeth around the edges, and then held with thin wire. The stretchers are connected to the shaft of the umbrella with a plastic or metal runner, the piece that moves along the shaft of the umbrella when it is opened or closed. The design of umbrella is used high technology to make it and cost of making process is very high. Besides, the materials of umbrella are also in higher cost. So that, our companys cost will be increased and need to increase the price of umbrella in higher price. For the solution, our company can lower the cost of materials and making process, but the quality of umbrella still in higher quality. For example, our company can use other low cost of energy to produce our product.

Conclusion In the conclusion, we decided to promote our new product, pet umbrella to Korea. The pet umbrella is designed fit our four-legged friends. We choose Korea because of their pet ownership in Korea has proliferated rapidly and South Korea has one of the world's highest population densities. Besides that, average income per year of Korean is high. Climate of Korea that temperate but there is rainfall in summer and winter. This also can allow us to promote our products. We had done some research about Korea and found that major population centers are located in the northwest, southeast, and in the plains south of the Seoul-Incheon area which may be chosen to target. First of all, we identified the SWOT analysis which is strength, weaknesses, opportunity, and threat of pet umbrella and PEST analysis of Korea which is political factors, economies factors, social factors, and technology factors. Besides that, we also identified the problem and solution for PEST analysis of Korea. Based on SWOT analysis and PEST analysis, we decided to target the product to the capital of Korea, Seoul to test the market first. If our new product get a good respond from consumers, we will expand the product to other cities of Korea. Our assignment was done in last minutes work. Our tutor, Miss Kow, give us the title of assignment on week 4, but we start our discussion on week 8 because we cant decide what product we should use in our assignment. At the end of week 8, we only decided what product we should use as there are different opinions between our group members. Because of we have other assignments to do and we also having our mid-term test. So, we hard to finish it early but we try our best to complete the assignment. Finally, we completed our assignment before the deadline.

References and Appendices Environment: Background Note of South Korea: Bureau of East Asian and Pacific Affairs ( April, 2009) Retrieved 28 July 2009, from U.S. Department Of State Web Site: Employment: Employment in Korea: Population and Labor Supply (October07, 2008) Retrieved 28 July 2009, from Asian info Web Site: Economy: Background note of South Korea: Economy (Feb18, 2009) Retrieved 27 July 2009, from US Department of State
Web Site:

Recruiting and HR consulting in Asia: Korea Retrieved 30 July 2009 from Pacific Bridge, INC. (PBI) Web Site: Social: Retrieved 26 July 2009:

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