Research Article
Innovation Based Growth Strategy
1 Sangji Youngseo College, 2 Kangwon National University
Published: January 2015 · Vol. 19, No. 2 · pp. 161-185
Full Text
Abstract
LOCK&LOCK, a mid-sized Korean company, entered the storage containers market and had about 60% of the market share in storage containers. LOCK&LOCK’s success can be summed up in one word, innovation. Without innovative thinking, it would have been impossible to develop groundbreaking airtight containers or adopt new marketing techniques. LOCK&LOCK became the exclusive leader in the Korean market because of product excellence, new marketing techniques derived from innovative thinking, and consumers who created positive word-of- mouth reputation for LOCK&LOCK. First, the 4-sided locking method using innovative technology helped the company to design airtight seal-proof containers, giving them a competitive advantage over existing products. Second, instead of first targeting the domestic market, however, LOCK&LOCK entered the international market, and used its international success to return to Korea. Third, specifically, LOCK&LOCK used home shopping channels and infomercials to inform consumers about the 4-sided locking products and their advantages. Upon disseminating its seal-proof product value, LOCK&LOCK launched global TV advertising campaigns to solidity its global image. Lastly, the company created a group of highly loyal consumers and established a positive corporate image through ‘LOCK&LOCK supporters’ online brand community. Managers of small and medium sized enterprises will gain practical knowledge about planning and executing marketing strategies.
