SEOUL, Feb.12 (Korea Bizwire) – With weather targeting or weather-based marketing becoming increasingly popular in Korea, the domestic meteorological industry grew to 370 billion won last year. Officials are expecting that it will exceed 400 billion won this year.
The Korea Meteorological Administration (KMA) and Korea Meteorological Industry Promotion Agency recently announced the results of a joint study entitled ‘Investigation on the Current Status of the Meteorological Industry’, revealing that total industry revenue in 2014 reached 369.3 billion won.
Weather-based marketing is a technique used to analyze consumer psychology and behavior patterns as the weather changes based on historical data. As big data collection and analysis has gained popularity recently, weather marketing is attracting attention.
Coca Cola is famous for making use of a ‘critical temperature’ when there is a shift in demand for its products, particularly for the development of a vending machine with variable prices. The vending machine was part of a promotion that featured higher prices when the temperature outside surpassed the ‘critical temperature’, and lower prices with cooler weather.
Amusement parks such as Lotte World and Everland have already launched SNS marketing promotions offering lower entrance fees when snow or rain is expected. Through these methods, customers are enticed to visit even in inclement weather, and the theme parks have reportedly attracted 10 percent more visitors than usual in the off-season.
As weather is now playing an increasingly large part in marketing strategies, the meteorological industry is doing well.
Investigating the sales of 523 weather related business in 17 cities and provinces across the nation, sales at businesses manufacturing devices related to meteorology ranked first, bringing in 176.1 billion won (47.8 percent of total industry sales).
Ranking second were businesses that provide weather-related services, which generated revenue of 106.8 billion won (29.7 percent).
Broadcasting and information services related to weather accounted for 36.9 billion won in sales (10 percent), and wholesale business related to machines and devices saw sales of 33.4 billion won (9 percent).
A total of 2,286 people were reported to be working in the weather industry, with 50.5 percent employed by device manufacturers (1,155 people).
With regards to research and new product development, the study noted that 103 businesses (27.8 percent) had dedicated R&D teams.
Businesses in the meteorological industry invested an average of 21.6 billion won, approximately 5.8 percent of total sales, in research and development.
According to the KMA, industry revenue was 223.2 billion won in 2011, 321.5 billion won in 2012, and 337.2 billion won in 2013, showing continuous growth.
Considering the current trends, the KMA estimated that weather industry revenue would exceed 400 billion won in 2015.
KMA officials suggested that with weather-based marketing expanding to different types of businesses, the size of the meteorological industry will continue to grow.
By Francine Jung (email@example.com)