Korea's private security guard industry has made rapid progress since the early 1960s and has been realizing security and crime prevention around our lives since the 1980s. Despite its high quantitative growth and remarkable external progress compared...
Korea's private security guard industry has made rapid progress since the early 1960s and has been realizing security and crime prevention around our lives since the 1980s. Despite its high quantitative growth and remarkable external progress compared with its short history, however, relatively few researches have been done on the area of qualitative growth, i.e. on ways of strengthening its competitiveness through diversification of security guard management enterprises. Private security is a high value-added industry whose high growth may be expected in future. Apart from its quantitative growth so far, aggressive market-oriented approaches and service marketing strategies through management system diversification for its qualitative growth are required for the industry. In order to realize this research goal, this study has been conducted by carrying out literature researches and analyses via interviews with some relevant people. As a result, the following ways of improving the service marketing of the private security guard industry have been suggested.
First, differentiation and specialization are required for the product strategy segment. Differentiated and specialized guarding of facilities through excellent human resources are required. As for the guarding of machines, composite and digitalized products suitable for the characteristics of market segmentation need to be developed. Moreover, security guard companies should establish their own branded images, increase their market share by using their products and human resources, and adopt a brand superiority strategy. They need to develop new products suitable for the digital era. Research and development and investment should be continued in order to create new products. It is necessary to develop various and differentiated products after segmenting target markets for products. For the sake of the qualitative improvement of products (services), security guard companies need to strengthen cooperation between the relevant business and academic circles and their cooperative system with the police to improve their crisis management ability and keep their after-sales service and reward systems in best condition.
Second, as for the price strategy segment, it is necessary to take into consideration the market structure where businesses are divided into large and small companies. Large companies need to find new overseas markets and offer expensive products (services) on the basis of their excellent material and human resources while small companies should gain price competitiveness by developing differentiated products (services) based on their business circumstances. They also need to enhance their price competitiveness through new products. They should reduce the relative importance of cost and develop new products proper to the business levels of respective companies to find new markets and gain price competitiveness. The money saved by reducing labor costs through outsourcing, etc. should be used for a new project or a price differentiation strategy.
Third, as for the distribution strategy segment, security guard companies need to employ and train excellent human resources and establish a segmented indirect distribution network by expanding their dealership and sales agent networks. Brisk electronic commerce is necessary because of increasing Internet users. Electronic commerce makes it possible to provide support for the distribution networks of private security guard companies, which are centered around Seoul and surrounding areas, and to expect cost effectiveness related to security guard service performance due to expansion of sales agent networks on the part of small security guard companies. It is getting easier for Korean private security guard companies to advance abroad because many Korean companies of other business lines are making brisk inroads into overseas markets. They can expect synergies from selling new products developed in Korea to foreign countries or advancing abroad by setting up a joint venture with foreign companies.
Fourth, as for the sales promotion strategy segment, sales people must specialize in their sales activity area since most private security guard companies pursue sales promotion activity focusing on sales people. Security guard companies should try to increase the efficiency of sales people s sales activity by employing and training excellent human resources, and positively adopting an ability-based annual salary system and an incentive system. They also need to use aggressive publicity and advertisement strategies through mass media to instill brand awareness in people so that they may be interested in buying products. Small companies must use a sales promotion strategy through the Internet in order to reduce costs. Advertising or publicizing products on the Internet makes it possible for them to provide services for their customers at low cost without the inconvenience of any limited time and space. They also can make direct product publicity and advertisements through events or mailing services. The Internet and electronic commerce are becoming more and more important as a means of business and will be a useful tool for securing future and potential customers.