農心 | IME 곽재혁 | IME 임주형 | IME 편정희 | IME 노지훈 | IMEN 381 Management Information Systems

Contents Company Situation Ramyon Market Situation Overview Definition Procedure Glocalization China Other Countries NongShim’s GlocalizationConclusion

Company Situation High Growth Rate Market Leader Local Production After China Dramatic Sales Increasing After China Dramatic Sales Increasing 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 Situation Ramyon Industry’s Growth Rate is Decreasing!!! Ramyon Industry’s Growth Rate is Decreasing!!!

Glocalization Glocalization Glocalization 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

Procedure of Glocalization Market Analysis Customer Segmentation Research & Development Procure Distribution Channels Specific Marketing

Market Situation of CHINA 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 4P1E (CSFs) ProductPrice Promotion Place Entry Timing Based on

4P1E of NONGSHIM (1/2) CSFs ProductPrice PromotionPlace Entry Timing Promotion Promotion – Sin Ramyun Baduk Contest sponsored by NONGSHIM since – Localized Advertisements Product Product – Differentiation Cup Ramyon  Boiling Ramyon – Focusing on Hot & Spicy taste Price Price – 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 (2/2) CSFs ProductPricePromotion Place Entry Timing Place (Logistics Strategy) Place (Logistics Strategy) – Hub-and-Spoke Strategy – Credit Transaction  Cash Transaction Entry Timing Entry 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 Myun Representative Localized Products Representative Localized Products – Name : Shanghai – Taste : Chinese DO NOT like spicy ramyun Chicken Taste Sea Food Taste

Other Countries Japan – Market Share : 90% (Foreign Company) USA – Entered distribution store (Wal-Mart) Hispanic – Focusing on Cup-Ramyon selling

Conclusion 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&A Thank you!