- Log In/Sign Up
- E-ISSN2233-5382
- KCI
E-ISSN : 2233-5382
Locally Made Liquor(LML) Industry Status and Development Plan Using a Scale Efficiency Analysis
Choi, Jong-Woo
Huh, Duk
Abstract
Purpose - The domestic liquor market is steadily increasing, but locally made liquor markets remain stagnant. The market opening due to the FTA and westernized eating habits are expanding the consumption of imported liquor by Koreans and the demand for beer and soju is still high. Therefore, we analyzed the scale efficiency of Korean locally made liquor companies. Research design, data, and methodology - Based on a translog-cost function, a scale efficiency analysis was conducted using the government's information survey on the liquor industry. Data from 541 liquor companies analyzed from 2013 to 2014 were used for analysis. Results - As a result of the scale efficiency analysis, the average sales of the mid-sized locally made liquor companies is 171 million won, but the appropriate sales amount is 1 million won. It is estimated that there is a need to increase sales. Conclusions - The gap between the actual sales and the appropriate sales of mid-sized locally made liquor companies with 3~10 employees is larger, so it is necessary to reduce the average cost by increasing the sales of locally made liquor companies. In order to do so, it is necessary to acquire customer strategies such as product differentiation, advertising and publicity.
- keywords
- Locally Made Liquor, Industry, Scale Efficiency, Drinks, Government Policy
Reference
Banna, H., Ahmad, R., & Koh, E. H. Y. (2017). Determinants of commercial Banks’ efficiency in bangladesh: Does crisis matter?. Journal of Asian Finance, Economics, and Business, 4(3), 19-26.
Baskin, E. Choi, J. W., Heo, S. Y., & Park, S. J. (2016). Trends in the home meal replacement market. Journal of Distribution Science, 14(6), 5-15.
Cho, Y. S., & Kwak, Y. A. (2017). International comparison between Korea and other countries, in terms of retail regulation. Journal of Distribution Science, 15(9), 5-16.
Choi, J. W., Lee, W. F., & Gartner, W. C. (2016). Vineyards in northern U.S. states: Farm size and productivity relationship. Journal of Distribution Science, 14(7), 53-61.
Jang, D. G. (2010). Analysis of Current Traditional Liquor Industry of Jeonnam and Vitalization Strategy. RegionInfo, 225. Jeonnam Development Institute.
Jeon, H. M., & Moon, O. S. (2011). Study on Importance of Attributes for Selection by Consumer Types depending on Intention of Makgeolli Purchase and Drinking. Korean Journal of Culinary Research, 17(4), 59-73.
Jeon, Y. M., An, Y. S., & Kim, M. H. (2006). Study on Exemplary Commercialization of Traditional Liquor and Improving Competitiveness. Journal of Korean Society of Community Living Science, 17(2), 3-14.
Jeong, D. H. (2013). Forecasting Market Share depending on Makgeolli Attributes: Using Discrete Choice Model. Journal of the Korean Data Analysis Society, 15(6), 3017-3026.
Kim, D. H., Park, G. S., Lee, S. Y., & Lee, S. H. (2016). Analysis of factor hindering and promotion strategy on the direct marketing of agricultural products. Journal of Distribution Science, 14(12), 71-78.
Kim, I. S., Lee, J. S., & Jo, M. H. (2012). Analysis of Makgeolli Consumer’s Motive of Purchase, and Relation between Attributes for selection and Consumer’s Satisfaction. Journal of Tourism Studies, 24(3), 57-81.
Kim, M. S., Choi, H. K., & Kim, D. H. (2013). An analysis of the effects of consumer characteristics and consumer trust on purchase intention of environment-friendly agricultural products. Journal of Distribution Science, 11(1). 45-53.
Kim, S. H., & Yoo, B. K. (2014). An analysis of retail business efficiency in Korea. Journal of Distribution Science, 12(4), 23-30.
Korea Agro-Fisheries & Food Trade Corporation. (2016). Export Support Information – Locally Made Liquor Exports. Retrieved September 2, 2017 from http://www.kati.net/sta/staRes1.do?MenuCode=822&b bsid=1
Korea Agro-Fisheries & Food Trade Corporation. (2016). Food Industry Statistics Information – Locally Made Liquor Statistics. Retrieved September 2, 2017 from http://www.atfis.or.kr/home/M000000000/index.do
Lee, D. P. (2007). Policy for Vitalizing Traditional Liquor and Nongminju Industry. Korea Rural Economic Institute.
Ministry of Agriculture, Food and Rural Affairs & Korea Agro-Fisheries & Food Trade Corporation. (2015). 2014 Liquor Industry Information Survey.
Notice of National Tax Service. (2016). Notice about Commission of Order for Mail-order Sales of Liquor. Retrieved September 2, 2017 from http://www.nts.go.kr/info/info_07_08.asp?minfoKey=MI NF8120131022111111&top_code=&sub_code=&sleft_code=&ciphertext=&type=LR
National Tax Service. (2016). Annual Report of National Tax Statistics. Retrieved September 2, 2017 from http://www.nts.go.krinfo/info_07_08.asp?minfoKey=MI NF8120131022111111&top_code=&sub_code=&sleft_code=&ciphertext=
Park, H. H., Kang, D. N., & Lee, S. Y. (2014). A study on a mutual win-win growth strategy for Korean supermarkets. Journal of Distribution Science, 12(3), 43-53.
Park, S. J., Heo, S. Y., & Choi, J. W. (2016). A study on win-win cooperation between agriculture and corporations: Focusing on distribution cooperation. Journal of Distribution Science, 14(10), 137-146.
Seo, Y. W., Lee, P., & Jeon, D. H. (2017). Optimizationbased buyer-supplier price negotiation: Supporting buyer’s scenarios with suppler selection. Journal of Distribution Science, 15(6), 37-46.
Statistics Korea. (2016). House Survey Data. Retrieved September 2, 2017 from http://kostat.go.kr/portal /korea/kor_nw/2/4/3/index.board
Yang, S. B., & Yang, S. R. (2011). Analysis of Intention of Payment for Korean Rice Makgeolli by Using Conjoint and Hedonic Model. Korean Journal of Food Marketing Economics, 28(3), 57-77.
- Downloaded
- Viewed
- 0KCI Citations
- 0WOS Citations