The Chinese market is both a good opportunity and a great challenge for Korea. Identifying the best marketing strategy in the Chinese market against intense competition between every country in the world is the key to success. Promotion activities in China through traditional forms such as sales officials, marine journals, technical magazine and the mass media for the huge market for marine services in China is particularly difficult. The greatest challenge facing Korean shipping companies in the Chinese market, is the need for a localization strategy for Korean staff to take advantage of the rapid and subtle changes in the volatile Chinese marine services market.
As the Chinese shipping market has matured, the volume of transshipment cargo through Busan port has been substantially reduced, with major shipping lines that previously linked Chinese harbors such as Shanghai and Qingdao through Busan - to the North American and Latin American markets and Europe - beginning to bypass Busan in favor of direct shipments to the larger Chinese ports. Smaller Korean shipping companies have suffered greatly in the Chinese market due to the current global strategy of high volume shipments and lower freight rates that relies on a larger-sized ship strategy.
The purpose of this study is outlined as follows:
First, A comparative analysis of the Chinese marine services market vis-a-vis the global marine services market is conducted utilizing a combination of resource materials on the Korea-China service route.
Second, The significant features of particular shipping companies on the Korea-China service route are described and a SWOT analysis is then conducted of the major marketing issues confronting Korean shipping companies.
Third, Marketing strategies are subdivided into the 4Ps to identify the best strategies to enhance the competitiveness of Korean shipping companies on the Korea-China service route.
Finally, A counter-strategy is proposed for Korean shipping companies on the Korea-China service route.
The results of this analysis emphasize that focusing on the most profitable routes is the most appropriate strategy for Korean shipping companies in the Chinese marine services market. This requires a focus on high-quality service, as a goods strategy, and this should be consistent with the basic globalization management strategy Korean shipping companies. For the marine transportation service area, a differentiation strategy including weekly fixed weekday service, increased service frequency, reduced delivery times and regular deliveries should become the major focus of Korean shipping companies.
The current trend toward larger container ships has reduced voyage times and container shipping costs thereby increasing productivity. Due to the complicated costs analyses in the shipping industry the introduction of a standardized cost accounting system for the purpose of cost reduction has been suggested, so that a strategy for determining the optimal freight charge has been proposed. In addition, freight contracts made on the basis of cost, inducements for long-term contracts, rationalization of management and promotion of management redesign are examined.
Distribution strategies for expanding the range of services of shipping companies and for Niche Marketing are also discussed.
Finally, promotion strategies to improve access to information and effective methods for taking advantage of recent developments in information processing are also proposed. At the same time, a plan for securing a steady demand for transportation services is proposed by building cooperative relationships with goods holders. The globalization of liner companies by expanding service networks through strategic coalitions with other companies is a persuasive strategy for improving service quality by improving services through customer feedback and the provision of value added services. To ensure enhanced international competitiveness in the liner shipping market. the marketing mix should be designed to meet international customers' needs by implementing a comprehensive customer focused marketing strategy.