農心農心| IME 20021078 곽재혁 | IME 20041151 임주형 | IME 20051164 편정희 | IME 20051256 노지훈 |

IMEN 381 Management Information Systems

ContentsContents

Company SituationCompany Situation

High Growth RateHigh Growth Rate

Market LeaderMarket Leader

Local ProductionLocal Production

After launching @ ChinaDramatic Sales IncreasingAfter launching @ China

Dramatic Sales Increasing

Market Share : more than 70%

Market Share : more than 70%

Because of

Decreasing Ramyon Needs Matured Industry Substitutes like Fast Foods Low Margin

NONGSHIM FOUND THE SOLUTION IN GLOCALIZATION.

Because of

Decreasing Ramyon Needs Matured Industry Substitutes like Fast Foods Low Margin

NONGSHIM FOUND THE SOLUTION IN GLOCALIZATION.

Ramyon Market SituationRamyon Market Situation

Ramyon Industry’s Growth Rate

is Decreasing!!!

Ramyon Industry’s Growth Rate

is Decreasing!!!

GlocalizationGlocalization

• GlocalizationGlocalization means, A Management strategy for multinational corporation to maximize synergy effect through localization and globalization simultaneously.

• Globalization: integration and interdependence in the economic, social, technological, cultural, political, and ecological spheres

• Localization: means of adapting products such as publications, hardware or software for non-native environments, especially other nations and cultures

Zygmunt Bauman (1925~)

Globalization + localization = Glocalization

Globalization + localization = Glocalization

Procedure of Procedure of GlocalizationGlocalization

Market AnalysisMarket Analysis

Customer SegmentationCustomer Segmentation

Research & DevelopmentResearch & Development

Procure Distribution ChannelsProcure Distribution Channels

Specific MarketingSpecific Marketing

Market Situation of Market Situation of CHINACHINA

• Pricing : 2.8 wian (avg. 1~2 wian)• One Chinese consumes 14 EA annually.

– (cf. Korean – 82 EA / person)

• Market Growth Rate : 27% / yr– (cf. World – 11% / yr)

Rapid Growth of Sales

Rapid Growth of Sales

Based on

4P1E of NONGSHIM 4P1E of NONGSHIM (1/2)(1/2)

• PromotionPromotion– Sin Ramyun Baduk Contest

• sponsored by NONGSHIM since 1999.

– Localized Advertisements

• ProductProduct– Differentiation

• Cup Ramyon Boiling Ramyon

– Focusing on Hot & Spicy taste

• PricePrice– Luxury Brand Policy– Targeting Middle Class

Deng Xiaoping (1904~1997)

You are NOT a BRAVE MAN without HOT & SPICY.

( 매운 걸 못 먹으면 사나이 대장부가 아니다 .)

You are NOT a BRAVE MAN without HOT & SPICY.

( 매운 걸 못 먹으면 사나이 대장부가 아니다 .)

4P1E of NONGSHIM 4P1E of NONGSHIM (2/2)(2/2)

• Place Place (Logistics Strategy)(Logistics Strategy)

– Hub-and-Spoke Strategy– Credit Transaction Cash Transaction

• Entry TimingEntry Timing– They have established product line in Shanghai when

large DCs(Distribution Centers) are broad.– Accurate Market Analysis

• Emerging Market• Rising Middle Class

Shanghai Tang MyunShanghai Tang Myun

• Representative Localized ProductsRepresentative Localized Products– Name : Shanghai – Taste : Chinese DO NOT like spicy ramyun

• Chicken Taste• Sea Food Taste

Other CountriesOther Countries

• Japan–Market Share : 90% (Foreign Company)

• USA– Entered distribution store (Wal-Mart)

• Hispanic– Focusing on Cup-Ramyon selling

ConclusionConclusion

• Nong Shim recovered successively second of 1990

Financial Crisis through launching foreign market. (Later,

they hold 70% market power on Korea)

• At that time, Nong Shim executed glocalization with nice

procedure from market analysis, customer segmentation,

R&BD to Procuring Distribution Channels, and Specific

Marketing.

• Until now, Nong Shim handled Chinese market as just big

one, but from now they need to invest aggressively in

R&BD in order to develop various localized tastes in China.

Q&AQ&AThank you!Thank you!