Ehwa Diamond Is South Korean Marketing Essay

EHWA Diamond is a South Korean based maker of diamond boring consumables and industrial tools. The company has been bit by bit spread outing its planetary presence and over the last few old ages has begun selling excavation consumables in several continents, late basking success in South America and the Pacific Islands. EHWA Diamond is presently trying to interrupt into the Australian diamond boring market, with peculiar focal point on Western Australia, where it hopes to market its line of mining nucleus spots for difficult stone.

The purpose of this study is to supply a elaborate analysis of EHWA Diamond ‘s chief rivals in the industry of diamond boring nucleus spots for difficult stone in the Western Australia market. Detailed profiles of each of EHWA Diamond ‘s major rivals has been included, along with each rivals most popular nucleus spots, followed by a SWOT analysis and the decisions derived from the above research.

The ultimate intent of the research and compilation of this study is to help EHWA Diamond in deriving a more comprehensive apprehension of the Western Australia diamond boring market state of affairs by supplying the company with critical information on the direct competition every bit good as viing merchandises. Armed with this cognition, EHWA will be far better equipt to take on the mark market.

Rival Profiles

The undermentioned rival profiles are of the three chief EHWA rivals in the Western Australian hard stone nucleus spot market, whose combined market portion is estimated at near to 70 % . These three rivals are Hayden, Fordia and Dimatec. All three have central offices based in Canada ( the universe ‘s premier diamond boring market in front of Australia ) and are renowned for their fabrication expertness and high quality merchandise ranges which have allowed these companies to set up a monopoly in Western Australia.

The chart below shows the makers from which 23 boring contractors on EHWA ‘s list of mark clients in WA purchase their diamond boring nucleus spots for difficult stone. The laterality of the three Canadian giants is apparent to see, with Hayden being the clear favourite among contractors and drillers in the part. This information was obtained by direct contact with the mark clients via telephone, electronic mail or visits to their offices by EHWA and KOTRA ( Korea Trade Commission ) representatives.

( Beginning: EHWA Diamond Drilling Contractors Database, Nov. 2012 )

Hayden Diamond Bit Industries ( hypertext transfer protocol: //www.haydenbit.com/ )

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Founded: 2001 in BC, Canada

Size: Gross saless offices in Canada and U.S. , agents in Eastern Canada, Mexico, Asia, Australia, Russia, South Africa including North and South America. Strong presence in Asia Pacific and 1000s of employees across multiple concerns.

Estimated Market Share

Harmonizing to the consequences of EHWA telephone enquiries and meetings ( see above chart ) , approximately 35 % of WA diamond drillers use nucleus spots manufactured by Hayden.

Strengths

Strong repute in WA part

Large no. of employees

Global acknowledgment

Reputable local provider in AMS

Failings

Monetary values are less competitory than some other shapers

Business/Marketing Schemes

Local distribution and selling through AMS

Hayden spots displayed at AMS booths at major exhibitions

Repute has spread via word of oral cavity.

Fordia ( hypertext transfer protocol: //www.fordia.com/ )

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Founded: 1977 in QC, Canada

Size: About 50 gross revenues points across the universe and more than 300 employees. Revenue exceeded $ 100 million grade in 2011.

Estimated Market Share

Harmonizing to the consequences of my telephone enquiries and meetings, approximately 17 % of WA diamond drillers use Fordia spots.

Strengths

Presence in several twelve states

Sell their ain spots in WA

Global acknowledgment

Attractive merchandise design and selling

Wide and varied merchandise scope

Failings

Consequences achieved in WA inferior to Hayden

Business/Marketing Schemes

Local presence of Fordia gross revenues representatives

Marketing online and in industry diaries

Fordia booths at major exhibitions.

Making Fordia spots stand out by giving them unusual names and attractive labelling, ‘cool ‘ image

Dimatec ( hypertext transfer protocol: //www.dimatec.com/default.aspx )

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Founded: 1988 in Manitoba, Canada

Size: Suppliers across Europe, North America and Asia Pacific. Between 100-200 employees. Annual gross of approximately $ 17.5 million.

Estimated Market Share

Harmonizing to the consequences of my telephone enquiries and meetings, approximately 17 % of WA diamond drillers use Dimatec spots.

Strengths

Presence in 3 continents

100 % Canadian owned

Global acknowledgment

Reputable WA provider in Drill Shop

Failings

Consequences achieved in WA inferior to Hayden & A ; Fordia

Business/Marketing Schemes

Local gross revenues and selling through Drill Shop

Marketing online and in industry diaries

Drill Shop booths at major exhibitions

Pushing ‘100 % Canadian ‘ image

Rival merchandises

The following nucleus spots are those which are the most normally purchased in the Western Australia diamond boring market harmonizing to the buying tendencies of EHWA ‘s mark client base. In this market, the biggest ground for the success of a peculiar nucleus spot is word of oral cavity. If a certain nucleus spot theoretical account attains impressive consequences in a peculiar stone formation, word rapidly gets out to other drillers and contractors, and the nucleus spot earns a repute that is difficult to interrupt down.

Hayden KS5, KS9-11

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The Hayden KS5 & A ; KS9-11 spots ( pictured above, yellow & amp ; brown coloring materials severally ) are the most popular diamond-impregnated nucleus spots among EHWA Diamond ‘s mark clients WA. The local repute of these two merchandises is matchless in difficult stone boring, with the possible exclusion of Fordia ‘s 9-11 spot ( see below ) .

9-11: For difficult stone formations from diabase to hard quartzite.

KS-5: For medium-hard formations from gabbro to gneiss & amp ; quartzite.

Fordia T-Xtreme 9/11

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When it comes to spots suited for difficult stone diamond boring, Fordia ‘s T-Extreme 9-11 nucleus spot ( pictured supra ) has an first-class repute among WA drillers which is surpassed merely by Hayden ‘s KS9-11 spot in footings of public presentation and popularity.

The T-Extreme 9/11 is suited for difficult to really difficult stone formations from gabbro and diorite through to porphyry and silicified stone.

Dimatec SD-9

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While Dimatec ‘s SD-9 nucleus spot ( pictured above ) is non rather in the same public presentation category as the Fordia & A ; Hayden ‘s equivalents, it is however a really popular spot among WA drillers due to the solid repute of the maker and of Canadian excavation consumables in general.

The Dimatec SD-9 spot is suited for had stone formations such as quartzite, porphyritic rock, basalt and pegmatite.

EHWA – Swot Analysis

Strengths

EHWA has a figure of cardinal strengths, which if utilized to their full potency, could be the key to perforating the Western Australian market despite the formidable competition mentioned above. The first is the quality of EHWA diamond boring merchandises. EHWA nucleus spots are truly competitory on a planetary graduated table in footings of quality and public presentation. They are being widely used in several other states including Peru, Turkey and Fiji. And more significantly, EHWA has records of comparative trials that were performed on EHWA spots versus large name rivals. Below is an illustration of such a trial consequence, versus a major European-based and globally popular nucleus spot maker.

One more advantage for EHWA is that overall the monetary values are really competitory. The reaction of most Australian drillers who have seen EHWA monetary value lists or been given quotation marks has been really positive. On a recent trip to Perth for the Western Australia-Korea Energy Forum, I was able to run into with a figure of Perth based boring contractors and demo them EHWA spot samples and monetary values. These included J & A ; S Drilling, Frontline Drilling and Australian Underground Drilling, among others. All of these possible clients were impressed with both the quality coating of EHWA spots, and commented that EHWA monetary values are lower than what they pay their current providers. It was in more than one instance this monetary value difference which aroused the drillers involvement in proving EHWA spots.

EHWA besides has the advantage of the support of the Korea Trade-Investment Promotion Agency ( KOTRA ) a South Korean authorities bureau that promotes and facilitates trade between Korean and abroad concerns. KOTRA ( see logo below ) has 110 offices in over 80 states for this purpose including Sydney and Melbourne offices. It ‘s approximately the Korean equivalent of Austrade. KOTRA can supply ongoing support in order to help EHWA in interrupting into the Australian market, and more specifically the Western Australian market. An EHWA representative has been placed at KOTRA ‘s Sydney office for the intent of reaching contractors and providers, and trying to carry drillers to prove and/or purchase EHWA spots ( provided they are happy with comparative trial consequences ) .

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Failings

EHWA has some obvious failings that will keep it back from doing a serious grade on the WA market unless they are addressed. The first of these is EHWA is basically a relatively unknown name in the WA excavation industry. Major planetary spot makers such as Boart Longyear, Atlas Copco, and of class Fordia, Hayden and Dimatec are known good to every driller. Drillers are familiar with these companies ‘ merchandise scope, mean monetary values and local supply and distribution webs. While some drillers have become familiar with the EHWA trade name name due to advertizements in Australasian Drilling magazine, presence at major exhibitions such as Drill 2012 and devoted attempts of gross revenues staff, it is still really much an unknown name to many major drillers in the part. This is merely a affair of being a comparatively new entrant to the industry taking on long-established trade names.

The other major failing at this point is the deficiency of a local provider. While negotiations were held between EHWA Diamond and ex Boart Longyear supplier D & A ; B Supplies in late 2012, no ties were established and D & A ; B opted for a Canadian shaper they met with in Canada. The present deficiency of a local provider of EHWA diamond boring merchandises means that no stock is kept locally, and when a purchase order or trial sample petition is placed, the spots must be sent straight from Korea. As a consequence, from the clip of order arrangement until reaching of the spots on site, the entire procedure takes about 3 hebdomads. This is of great incommodiousness to drillers who can hold spots delivered in every bit small as 2 yearss by local providers. Very few drillers are willing to accept this difference in bringing clip, even given EHWA ‘s competitory pricing and merchandise quality. Until this peculiar issue is resolved, it will stay EHWA ‘s biggest faltering block.

Opportunities

Late 2012 was really quiet in the mineral geographic expedition industry, with the exclusion of gold. This has been due to a figure of external factors, such as the recent downswing in the Chinese economic system and Fe ore monetary values. The general outlook among many drillers in WA is that the industry will pick up in 2013, with a figure of major coring undertakings lined for the 2nd one-fourth.

Other chances present themselves through EHWA representation at trade exhibitions such as the aforementioned Drill 2012 ( see pic below ) , Queensland Mining & A ; Engineering Exhibition ( QME ) and forums such as the Western Australia-Korea Energy ( WAKE ) Forum. These sorts of assemblages are a antic chance in which to run into industry contacts and do the EHWA trade name known to those in the mark market. Through these EHWA representatives I have been able to do a figure of connexions with contractors and providers.

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Menaces

In recent old ages at that place have been a figure of budget boring merchandises come ining the WA excavation industry. The entreaty of these spots is that they are well cheaper than the competition. However in footings of quality they are by and large good below par, harmonizing to the verbal feedback I have had from a figure of WA contractors including Australian Underground Drilling ( Pilbara ) , Frontline Drilling ( Midvale ) and Orbit Drilling ( Neerabup ) . The unfortunate consequence this has is giving a negative image to all Asiatic spots in the heads of many drillers. It is non uncommon when I introduce EHWA as a Korean trade name to hear reactions like “ I ‘ve used Chinese spots before and they were rubbish ” or something to that consequence. However Asahi is a Nipponese trade name that enjoys a solid repute among Australian drillers, and Hanjin ( Korean ) drill rigs are besides popular. Drillers need to be reminded of this and assured that EHWA fabrication criterions are of high quality.

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Budget nucleus spot ( Beginning: hypertext transfer protocol: //www.nobodybuy.com/product_desc/pid2796/nq-hq-diamond-core-bit.htm )

An extra menace is trade name trueness. There are drillers and contractors who are ferociously loyal to a peculiarly shaper and/or provider. This is in some instances due to faith in a trade name name that has ever lived up to its repute in the head of the purchaser, and in others due to personal relationships developed between purchasers and Sellerss. For illustration Ausdrill, major contractors in Boulder, WA are loyal to Fordia and Hayden and have repeatedly stated that they have no purpose of proving or buying spots from any other makers.

Decisions

EHWA Diamond surely faces some tough challenges in its quest to do a name for itself as a reputable in the WA diamond boring market. Not least of these challenges is the formidable competition, chiefly in the form of the three most popular makers in the part, the Canadian companies Hayden, Fordia and Dimatec.

Of class other makers have had some success in the part, but when it comes to repute and merchandise public presentation, these three companies merchandises, and Hayden ‘s in peculiar, set the benchmark for spot public presentation and lastingness. Therefore their reputes are well-deserved, and for EHWA to hold any existent impact on the market, it will hold to take these companies merchandises on head-on. This means providing EHWA trial spots at greatly discounted rates or free of charge to the drillers that are dedicated users of the major makers and acquiring elaborate feedback on the spot public presentation by comparing to the competition.

If EHWA spots can fit the large trade names in public presentation and/or spot life and be supplied at a cheaper monetary value, it can so offer its merchandises at the regular rates and could potentially be looking at immense net incomes. If EHWA spot public presentation is non up to that of the competition, EHWA applied scientists must continually analyze the rivals merchandises and adjust EHWA spot matrices or fabricating procedure until they are able to make so. Anything less is a waste of clip.

2013 is a critical twelvemonth for EHWA, the new male childs on the block up against some really stiff competition. Several WA drillers have already begun proving EHWA nucleus spots in late 2012. The consequences of these trials must be analysed and acted upon consequently. The success of EHWA in this potentially highly profitable mark part depends really much on these consequences. Most drillers will choose their nucleus spots based on recommendations from other reputable drillers or the consequences of trials that they themselves have performed, instead than clever selling or gross revenues pitches.

Until more EHWA spots are tested and drillers are sufficiently satisfied with consequences achieved to experience confident in urging them to other drillers, until bit reputation spreads as a consequence of this, and every bit significantly until a solid local supply and distribution web is set up, perforating the WA diamond coring market will be really much an acclivitous conflict. If these ends can be achieved in 2013, there is no ground why EHWA can non add WA, and so Australia to its turning list of successfully penetrated planetary markets.