2002-12-07 15:24:17braveheart
Instant Noodles War
In the beginning of December, the China’s biggest instant noodles company, TingHsin, which is famous with its brand--- 康師傅, whose boss comes from Taiwan, debuted its new products in Formosa. “We want to take 20% (market share) in Taiwan’s instant noodles market, said 康師傅’s general manager.
One week later, the food industry local king, Uni-President, decided to lead a price battle, and has promoted its cash cow commodity in a surprising price. This campaign between the two companies has led a wave of “eating processed food.”
We can observe this event from two aspects: the firms and the channels. It is obvious a war of food rivals, China’s empire versus Taiwan’s giant. In my opinion, this twosome will not hurt each other, and it’ll conclude with a win-win ending for the two. Who are the losers? The small rivals and the instant noodles lovers are. The small firms that cannot follow to change their price tags face the crucial competition. If they don’t have enough capital to endure this giants’ war, they will be forced to give up the business in this industry, and then the winner takes it all! Besides, after the promotion, the two big firms will market the “luxury models” to earn their profit. Why do I say the consumers lose, too? Reconsidering about how many cheap processed noodles we’ve eaten will tell.
Otherwise, it’s also a competition of channels, especially for 7-11 Taiwan, which ever belonged to Uni-President Corp. Group, and the other convenient chain stores. For the relationship with Uni-President Enterprises Corp., 7-11 doesn’t sell 康師傅’s instant noodles, so consumers cannot see this new brand product on its shelves. I think it’s a good chance for the other chain stores’ alliance. The sum number of chain stores of Familymart, OK, and Hi-life is about 7-11’s. Through this instant noodles war, they can show their image of union, making people know that they can get more services from this alliance, not only on the net, but also in reality. It will be a good advertisement for them, and it’ll benefit for building their images. But it seems that they don’t focus on it.
Don’t look down these small-sized products because they are food companies’ cash cows. Let’s just be observers opposite the river’s bank--- with two big boiled bowls of instant noodles.
(note: the picture was downloaded from http://www.tinghsin.com.cn/)
One week later, the food industry local king, Uni-President, decided to lead a price battle, and has promoted its cash cow commodity in a surprising price. This campaign between the two companies has led a wave of “eating processed food.”
We can observe this event from two aspects: the firms and the channels. It is obvious a war of food rivals, China’s empire versus Taiwan’s giant. In my opinion, this twosome will not hurt each other, and it’ll conclude with a win-win ending for the two. Who are the losers? The small rivals and the instant noodles lovers are. The small firms that cannot follow to change their price tags face the crucial competition. If they don’t have enough capital to endure this giants’ war, they will be forced to give up the business in this industry, and then the winner takes it all! Besides, after the promotion, the two big firms will market the “luxury models” to earn their profit. Why do I say the consumers lose, too? Reconsidering about how many cheap processed noodles we’ve eaten will tell.
Otherwise, it’s also a competition of channels, especially for 7-11 Taiwan, which ever belonged to Uni-President Corp. Group, and the other convenient chain stores. For the relationship with Uni-President Enterprises Corp., 7-11 doesn’t sell 康師傅’s instant noodles, so consumers cannot see this new brand product on its shelves. I think it’s a good chance for the other chain stores’ alliance. The sum number of chain stores of Familymart, OK, and Hi-life is about 7-11’s. Through this instant noodles war, they can show their image of union, making people know that they can get more services from this alliance, not only on the net, but also in reality. It will be a good advertisement for them, and it’ll benefit for building their images. But it seems that they don’t focus on it.
Don’t look down these small-sized products because they are food companies’ cash cows. Let’s just be observers opposite the river’s bank--- with two big boiled bowls of instant noodles.
(note: the picture was downloaded from http://www.tinghsin.com.cn/)