directly competitive. Consumer and food and beverage companies are particularly well suited to use Korean manufacturers’ logistics and distribution systems. Some companies, such as Nongshim, a manufacturer of instant noodles, have excellent distribution and inventory control systems down to the neighborhood mom and pop store level. Partnering with such a company may maximize possible market penetration. Partner/Parent JV Company In a JV relationship, the local partner/parent company usually distributes the products of its subsidiary. In this situation as in all business encounters, good, cordial working relationships are absolutely necessary for success. One should also provide proper motivation to the Korean partner’s sales force for their “stepbrother products,” since one cannot simply assume they will push one’s products as aggressively as their parent’s goods. In-House Distribution Distribution is one of the most important factors affecting the success or failure of a consumer product. This basic fact reveals the critical nature of the control of distribution channels. Although costly in terms of time and money, the establishment of one’s own distribution system can be greatly beneficial in the long run. Such a plan should be executed gradually over a period of time: product by product, segment by segment, and region by region. As long as one maintains a sustainable comparative advantage, developing one's own distribution is desirable.
EFFECTIVE DISTRIBUTION PROCEDURES Select Distributors Carefully Since the role of distributors is so important, one has to pay careful attention to their capabilities before making a commitment to any one of them. Consider in depth their strengths and weaknesses, and in channels such as supermarkets vs. convenience stores; also, weigh qualities such as regional strength and merchandising capabilities. One must also compare the compatibility of their existing products with one’s own and investigate
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