SEOUL, May 17 (Korea Bizwire) – Korea’s mom and pop grocery stores begin adopting “weather risk management” systems which employ demand-prediction marketing tools depending on weather variables, joining the growing trend of “going big data” among the mainly IT industries.
As opposed to conglomerates and big convenient store chains, which have been following the trend and capitalizing on the systems, small businesses have depended on intuitions in making marketing decisions in the past since decision support systems such as analysis on correlation between the weather and sales have been an extravagant option for them.
However, micro-enterprises such as street corner delis are now able to implement such marketing tools as the Small and Medium Business Administration and the National Weather Agency have signed an agreement to cooperate in supporting the “weather risk management” for them.
Under the terms of the agreement the agency will provide reports on weather observations and predictions in the past three years and consult in weather management if need be.
As for the administration, it will develop an interrelation model between the meteorological information and sales of grocery stores and establish a decision support system and thereby plans to administer trial services of the risk management, starting from upcoming October.
An official in the agency said, “The agreement will help small and medium enterprises be more effective in their management by enabling them to work out marketing strategies based on precise demand predictions.”
Written by J. H. Kim (email@example.com)