United Nations Public Service Awards Case Studies

Some common conditions of rural farming areas are: aging societies decreased vitality levels within societies; and disparities between the development levels of cities and the development levels of rural regions. These disparities have worsened due to the government's emphasis on urbanization and industrialization policies.

In addition, rural economies are becoming more and more impoverished. This is due to increases in imports of cheap agricultural products from overseas as a result of the Uruguay Round (UR) and free trade agreements (FTA).

The emergent task at hand is to differentiate domestic produce and to enhance the flow of distribution. It is not enough to overcome this crisis by producing diverse kinds of produce in small quantities, or by focusing on wholesale transactions in which goods are sold while they are not yet harvested and still planted in the field. So far, instead of coming up with measures on their own, rural communities have only raised their voices for more government support. Their own efforts for coming up with countermeasures to address their plight have been lacking.

Agricultural products produced nationwide are distributed and sold under equal conditions. So the reality is that it is hard for farmers to survive in the boundlessly competitive market unless domestic farmers are able to satisfy consumer needs by producing products that are different and specialized compared to products from other areas. Most farmers do not promote their brands or their differentiated products, and have no outlet to sell such products if they did. Instead, they rely on brokers. This "loose" marketing methodology is a result of farmers not keeping up with modern marketing changes and new market trends. This in turn has become a stumbling block to increasing the income of farming households and revitalizing rural area economies.

Consequently, citizens now want their problems solved and their specialized desires met more than ever. However, at the outset, the expertise and specialized systems necessary to meet this increased demand did not exist. Because of this, rural areas found it difficult to adapt to these new citizen demands.

What is the initiative about? (the solution)
A marketing team that focused on professional marketing training for workers played a pivotal role in upgrading the marketing of the area's agricultural products. Local farmers and producers (including 55 cooperative farming units and 4,500 farming households) participated in this initiative, and were directly and indirectly influenced by it. About 350 farmers were taught marketing strategies using 24 lectures over a 6-month period. These classes are ongoing, and a current class is teaching farmers how to enhance sales outlets and divide tasks between administration, the agricultural cooperative association, and producers' organizations. The area's marketing network was enlarged by establishing sister-city relationships with larger urban market areas and by inviting large distributors to visit area farms in person to inspect their products. In addition, a consulting network composed of local university faculty and professionals was established to provide consulting advice to the area's farmers and manufacturers. In addition, the number of area farmhouses accredited as environment-friendly increased by 227% compared with last year. Over the same time period, 19 farmers gained certificates of qualification and 4,244 local residents were educated in environment-friendly cultivation techniques. These developments show that educating farmers in modern policies that are environmentally friendly and health conscious enhanced the quality of the area's agricultural products. The area's environmentally friendly products have been thoroughly advertised to the public through newspapers, TV, and various other forms of media. During various promotional events, a "Firefly" Direct Transaction Marketplace was set up on 25 occasions, which generated 500 million won for farming households. Developing various eco-friendly brands and running these kinds of marketplaces increased the purchasing power of area farmers. Because our organization is less than one year old, our marketing team still has a lot of work to do. We expect our marketing team to continue to be the catalyst that revitalizes the local economy and increases local farm income by developing Muju County into an area known for its health-conscious and eco-friendly brands.

Who proposed the solution, who implemented it and who were the stakeholders?
The goal of Muju County in the 4th popular election was embodied in the slogan: "Well-off Muju Happy Residents." To accomplish this, the new county magistrate created a research team composed of 6th class public service workers. They conducted research, held discussions, and attended workshops. An outside advisory organ examined the current state of Muju County's local industry. By interviewing Muju County public service workers, manufacturers, distribution personnel (from the agricultural cooperative association), small-scale enterprise directors, and others, Muju County's problems have ended up being analyzed from various angles. The biggest problems found through the analysis were complicated distribution procedures and farming methods that seemed to have lost direction. Also, it was discovered that the problem of small-scale farming came from having no brands. In order to examine the organization of small-scale farming to fit the area's characteristics, manpower was brought in. According to the results of the assessment, new organizations, including the nation's first marketing team, were reorganized. The marketing team manager and the person in charge of brand management were incorporated as professional contract workers. By doing so, the aim and path of the marketing team was established. With the team manager and a professional contract worker (classified as 5th class public service worker) in the lead, the marketing team was divided into marketing management, processing management, and brand management groups. There were seven general employees and two contract employees total on the team. Their main duties were establishing basic plans for increasing sales, training marketing experts (from public service workers or local residents), establishing markets at home and abroad, constructing and operating distribution centers in mountainous areas, enhancing and operating physical distribution systems, working on promotions to increase sales, developing and managing brands, and developing and promoting tourism. Our marketing team will become the management leader that guides Muju County's industry, which include production, distribution, tourism, and service industries.

Describe how and when the initiative was implemented by answering these questions
a. What were the strategies used to implement the initiative? In no more than 500 words, provide a summary of the main objectives and strategies of the initiative, how they were established and by whom.
The marketing team, which operates with a team manager and a professional contract worker, is responsible for accounting for the rapidly changing agricultural market and world affairs. It is also responsible for predicting and analyzing market trends and consumer preferences. By taking active steps, the team will strengthen the competitiveness of domestic agricultural products and activate the local economy in the process. These strategies are being undertaken to realize the goal of the country magistrate, which was a "Well-off Muju Happy Residents." To realize thatgoal, three strategy indices have been set up. The first goal is to increase income by 20% compared to last year by setting up a foundation for marketing to sell agricultural products more effectively. By enhancing distribution structures, direct transaction sales, internet shopping malls, and sports marketing businesses were operated. A sales counter was run for Muju County products at various competitions and events. In addition, a database of consumers was created, making the continued purchase of products easier and possible. Secondly, a group of 50 people consisting of marketing experts and farming managers was recruited from the county populace. Through them, the marketing team operated within the local community, and they took on lead roles. Thirdly, three luxury goods of Muju County were fostered. When people think of Muju County's "Firefly" brand, they now get a clean, eco-friendly image. The three luxury goods of Muju County are currently apples, fine steeds, and wild grape wines. These goods are currently being developed.

b. What were the key development and implementation steps and the chronology? No more than 500 words
To counteract to the effects of a rapidly changing agricultural market, plans to reorganize and create a specialized team that would actively confront problems by predicting and analyzing markets trends and consumer tastes was set up in August 2006. After doing this, a T/F team, made up of two groups consisting of 20 people each, repeatedly discussed the important tasks and roles of the marketing team and the administrative support needs of the team. We then asked the Korea Institute for Public Policy to interview management-level public service workers, survey county residents and employees, hold information seminars and business conferences, and take the lead in creating a team that could see what strategies were practical and realistic by making reports to the National Assembly. As a result of these efforts, a marketing team reliant upon professional contract jobs was created on February 1, 2007. In order to resolve problems within and outside the marketing team, and to emphasize the importance of marketing, continued efforts were made to educate people about marketing, and to foster experts. In addition, the "Firefly" brand, which is a brand that has been used without consistency in the past, was enhanced by systematic management and strategic advertising and promoting. A group for finding markets was made, a comprehensive master plan for the marketing of Muju County goods was formed, a sister-city relationship established with the Seoul East District Office, a marketplace for direct transactions, sales, and purchases was made, and an internet shopping mall for selling agricultural products was operated. The marketing team tried out these various ideas to actively delve into the market. What all of these efforts have helped to do is recreate the "Firefly" brand with a remade image, foster health-conscious agricultural products which better fit consumer preferences, lead to new marketing outlets, create the opportunity to maximize the participation of farming households in the local economy, and give farmers the confidence to hope that they, too, have a chance at living a good life.

c. What were the main obstacles encountered? How were they overcome? No more than 500 words
The most difficult obstacle we faced when we were forming a marketing team consisting of professional personnel was negative opinions of residents, members of the county assembly, and some local civil servants. As we were implementing steps for economic take-off, there were negative opinions, such as, "This is a formal reorganization after the fourth popular election," and, "How effective could a new team be?" In order to resolve this issue, the results of our reorganization efforts were distributed to each department, and we continued to publicize them through the local media, county assemblies, and at explanation meetings. In addition, professional temporary workers were employed using fair competition guidelines, and marketing needs were identified by benchmarking advanced examples set by Japan in the form of members of county assemblies, civil servants, fruit agricultural associations, and journalists. Once the marketing team was established, conflicts occurred because there were misperceptions that production was being performed by residents, sales were handled by the marketing team, and similar tasks were being referred to another department. The concept of marketing was continuously instilled in residents, and education in marketing strategies continued to be provided. It was clarified that the tasks of the marketing team did not only involve being sales agents, but also involved creating new means and methods by which consumers could be approached and by which prices of the agricultural and special products of Muju County could be raised through brand image improvements. Conflicts were resolved in forums every Thursday, which were supervised by the vice county governor in order to prevent tasks from being referred to other departments. As a result, Muju County started to make an effort to foster experts able to devote themselves to marketing tasks.

d. What resources were used for the initiative and what were its key benefits? In no more than 500 words, specify what were the financial, technical and human resources’ costs associated with this initiative. Describe how resources were mobilized
At this point, it is very difficult to estimate the productivity gained by establishing a marketing team consisting of nine civil servants in the county office. However, establishing the team itself was very innovative and productive in that it was the first time a marketing team dealing with the distribution and sales strategies of agricultural and special products had ever been established in a government office in Korea. The tangible effects of operating the Marketing Team were getting local residents to realize the importance of marketing, and increasing local resident participation in marketing by providing them with marketing strategies. Local residents gained significant self-confidence as a result. Pre-existing and less efficient manufacturing and distribution methods were abandoned, and a unified distribution network was created. This saved time and cut costs for the area's agricultural farms, and gave residents confidence in public administration. In addition, in order to work on long-term marketing strategies for agricultural and special products, and in order to not get overcharged by brokers during the distribution process, strategic marketing and PR efforts were undertaken through: the use of government-led media the development of diverse brands, folk foods, and functional products building e-commerce markets clarifying the role of public administration in the distribution process, the National Agricultural Cooperative Federation, and producers the operation of a market-entering group sister relationships with large cities sales at the Lightening Bug Festival, Cheonma Festival, and Sanmeoru Festival the expansion of markets by inviting citizens to participate in the marketing process and the operation of direct transactions that increased local income by 500 million won. In the future, the marketing team will establish itself as a strategic organization that will lead the local economy through reliable and data-based operations.

Is the initiative sustainable and transferable?
The marketing team was first established in 2007. Its work has been poorly publicized. This initiative was undertaken using a new innovative method. Internally, it was very significant that the strategic operation of an organization like this one was able to succeed through forming a team consisting of expert team members. Externally, this initiative drew positive responses after it was proposed at the 2007 North Jeolla Province Public Administration Innovation Assessment Contest. Currently, most local governments in Korea are making every effort to promote their local economies by developing and publicizing new brands. Thus the organization and operation of marketing teams across the country are expected to create new paradigms for organization formation, and to raise questions regarding those paradigms for other local governments to answer. If the formation and operation of the initiatives in this county are successful, this success will naturally become known to other local governments or institutions.

What are the impact of your initiative and the lessons learned?
By forming a marketing team in Muju County and working there directly, the preconception that civil servants perform given tasks for the growth of the county was eliminated, and the perception that they were making efforts alongside the county's residents themselves was created. Looking back on 10 years of local autonomy in Korea, we see that the titles of the old authorities were formally changed. However, in Muju County, the fields of public administration, which are actually needed by residents, and those of government offices, which were able to meet residents' expectations, were analyzed by forming a marketing team. An appropriate organization was formed based on analysis results and the trust that was generated among residents in public administration. From this, it was concluded that good policies and measures for local autonomy can be conceived when both residents and government offices participate in local autonomy and make an effort to work together. In order to overcome difficult conditions facing local governments in agricultural areas, such as manpower and financial difficulties, a government office broke with convention and encouraged residential participation. As a result, the true meaning and value of local autonomy was recognized.


Institution Name:		Muju County
Institution Type:		Public Organization
Contact Person:		Jayoung Lee
Title:		manager of innovation section
Telephone/ Fax:		82+63+320+2716
Institution's / Project's Website:		82+63+320+2239
E-mail:		jululala@empal.com
Address:		Muju County Office, 132, Musanhyeongil, Eupnae-ri, Muju-eup, Muju County, North Jeolla Province, Korea
Postal Code:		580-800
City:		Muju County
State/Province:		North Jeolla Province
Country:

The Problem

Solution and Key Benefits

Actors and Stakeholders

(a) Strategies

(b) Implementation

(c) Overcoming Obstacles

(d) Use of Resources

Sustainability and Transferability

Lessons Learned

Contact Information