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Beyond the Bale : June August 2009
14 Driving DemanD On assignment: i marketing wool n Korea Australian Merino wool gets the Hollywood treatment in a marketing campaign to encourage the 48 million South Koreans to ‘think wool’ By Richard Smith of his suit and saunters towards the camera with the confidence and style that you would expect from the former James Bond 007. The charismatic image on the screen P draws in the viewer and then a voice-over begins … in Korean. This is not a scene from his latest movie, but a commercial for suits from one of aWi’s Korean business partners. The advert was just one part of aWi’s Korean marketing Program (KmP), a campaign targeting South Korea’s 48 million people. The campaign was strategically undertaken in the lead-up to and during the northern hemisphere winter, along with campaigns in Japan (see the previous edition of Beyond the Bale) and China. The volume of wool sales in Korea by aWi’s business partners involved in the campaign increased by four per cent from 2 million kilograms to 2.07 million kg, despite the global economic downturn. aWi’s general manager of product development and commercialisation, Jimmy Jackson, says aWi measures the MerinoFresh™ ierce Brosnan enters the scene from the left. He runs his fingers down the lapel results of its campaigns closely to assess their success and cost effectiveness. “The primary measure of a campaign’s success is of course whether there has been an incremental increase in use of merino wool,” Jimmy says. “Considering that the economic downturn has significantly lowered overall apparel sales in Korea, an increase of four per cent in wool apparel sales by our partners is an excellent result.” “For every Marketing dollar that aWi Spent on thiS caMpaign, our partnerS Spent $4 on Marketing.” – JiMMy JackSon, aWi The Korean campaign was developed in collaboration with Korea’s leading department store, Lotte, which has an annual apparel sales turnover of $4 billion, and Korean apparel manufacturer Cheil industries, which is part of the Samsung group. a modest campaign investment of $250,000 by aWi in cash and services was more than matched by aWi’s partners, with makes Smart 100 list AWI’s MerinoFresh™ technology has been named one of Australia’s top 100 innovations in the inaugural ‘Smart 100’ index, one of the largest awards of its kind in the country. MerinoFresh™ ranked 27th in the top 100 list, beating 860 other nominations. The top 10 list was dominated by medical and life-saving products, including a revolutionary breast cancer detection test, a portable retinal camera to screen for eye disease, and a glowin-the-dark evacuation system. Significantly, Merino Fresh™ was the only textile innovation to rank in the Smart 100’s top 30. Since launching MerinoFresh™ at international trade fair Première Vision in Paris last September, AWI has worked with manufacturers in China, France, India and the US to transfer and commercialise the revolutionary shower-clean technology (see story on page 16). MerinoFresh™ allows woven products made from Merino wool – such as suits, trousers and skirts – to be refreshed or cleaned after wear simply using a domestic shower. Business magazine Australian Anthill Magazine and market research company Colmar Brunton joined forces to create the ‘Smart 100’, Australia’s largest innovation awards. The awards process spanned six months and harnessed the power of 1600 ‘mavens’ who were identified by Colmar Brunton to judge the 861 innovations entered. James Tuckerman, founder and publisher of Australian Anthill Magazine and founder of the Smart 100 index, says the index aims to bring a greater commercial focus to the concept June – august 2009 Beyond the Bale Lotte contributing $480,000 and Cheil contributing $520,000 in advertising, store merchandising and retailer training. in addition, Cheil recruited and paid for the services of the former 007 to promote its galaxy brand of suits. “Collaboration along the wool supply chain helps ensure aWi delivers the best return for australian woolgrowers,” Jimmy says. “For every marketing dollar that aWi spent on this campaign, our partners spent $4 on marketing. Forming relationships and collaborating financially and intellectually with other companies is a very costeffective way of operating – it’s an important and fundamental part of aWi strategy. “aWi is continually building partnerships with companies such as Lotte and Cheil – key decision-makers in apparel – and encouraging them to take up new merino fabrics, yarns and products that will give their business an edge.” in-store displays at the 24 Lotte department stores and 300 Cheil retail stores showcased australian merino apparel to customers. Posters, show cards and 250,000 australian merino swing tickets, plus LCD monitor screens at the Lotte stores, enhanced the displays. Lotte’s flagship myungdong store also had an australian merino stand that was visited by 61,500 customers and received Tv news coverage viewed by 1.9 million people. Online training about the properties and benefits of merino wool was provided to 2340 sales staff along with promotional hand-outs to help them increase sales to customers. Consumers were targeted in the media, including joint advertising in the DongA Ilbo daily newspaper (circulation 15 million) and the KyungHyang daily newspaper (circulation
April May 2009
September November 2009