Identification of Niche Market for Hanwoo Beef: Understanding Korean Consumer Preference for Beef using Market Segment Analysis

Korean Hanwoo beef producers are interested in improving the image of Hanwoo beef for Korean consumers, as the Korean beef market is becoming increasingly open to international competition. This study examines the consumer profile and positioning for the Hanwoo beef product in South Korea. A survey of 480 consumers is conducted to analyze preferences for 33 attributes of beef purchasing decisions. Factor analysis was used to determine factors that are important in beef purchasing decisions, and cluster analysis was used to identify a niche market for branded Hanwoo beef. Factor analysis results indicated that effective labeling and quality assurance of Hanwoo products, the meat quality, price and branding are important to the positioning and marketing of the Hanwoo beef product. Consumers with medium to high income, married and aged between 30 to 39 years, and those that appreciate Hanwoo quality but do not trust the current labeling system are most likely to purchase branded Hanwoo beef and represent a potential niche market, according to cluster analysis results