Crux of the words: Status Problems and Countermeasures for the development of

instant noodles with convenient, safe, Atsumi, high-quality, low price of five major characteristics, since its inception in 1958, after nearly five decades of development, has become the world's second largest after the staple bread product. Accompanying the rapid economic development and accelerate the process of economic globe, the Chinese operation to facilitate food industry is also facing unprecedented opportunities for development. Today, China's instant noodle production has reached 50 billion package scope, almost white-hot competition in the industry. Competition often implies a huge opportunity, but also the crucial era of change in market structure. Market segmentation, competitive differentiation has become an inevitable trend. Let's wait for the turmoil in the gradual evolution and usher in a new instant noodle industry inflection point.

one. Industry Status

world wheat production and consumption as a big country, China's instant noodle industry of wheat a year into the country 1 / 10 the capacity to share our food as raw materials to processed food industry's share of 46%, highlighting the its From 1992 to 2005 the production of instant noodles is always an upward trend, from 1.3 billion packs in 1992 a sharp increase to 4.7 billion packs in 2005. 2007, China's instant noodle production is expected to break the 50 billion package. At the same time, the parties had long been concerned about the development of China's instant noodle industry expectations, but also to improve the world of instant noodles, the oriental food to spread around the world, have a major impact, and its output accounts for 51% of the world, mainly enterprise products and safety indicators have reached international level, winning the respect of world counterparts. Instant noodles in 2007 began a new round of reshuffle.

(a) FY 2005 and 2006 drastic changes

instant noodles a new rank: 1 Master 2 white elephant Hualong 3 4 5 Smetana special uniform. Mention of the common people of the old Chinese instant noodles, described themselves as It's no wonder, in China's instant noodle market, the Master called Yiqijuechen, packets of instant noodles 5 billion annual sales, market occupation rate of 47.84%; years to be legitimate at home and packed rickety thousand instant noodle factory, significant profits shrink, lose money making instant noodles industry crying scene as strange a scene. frequent staff turnover has been persecution of groups and instant noodles are hurting business. profile listing non-fried noodles, grains, simultaneously, led to the application of non-fried wanton media indiscriminate bombing, but also led to mislead the consumer spending by low-cost two years ago transferred to the face price war price war in the price side, Konno Ramen, Hualong noodles, ramen large bone, big bone surface, such as the price of cow face price war war was underway. competition in product innovation as the main theme,coach bags, foam noodles important innovation is reflected in the taste, wordy side mainly in the process of innovation since the beginning of 2006 the main raw material prices of instant noodles, as prices in the range is now more to be. plus freight prices,coach handbags, which will undoubtedly profit of the master copy of the instant noodle industry, competition is a nightmare every sharp price increases of raw materials are comprehensive competitive strength of instant noodles and central business competitiveness Review Instant noodles industry will be carried out when the show again. the United States out of the kitchen, Xiong Yiwu fell, Third Prince Lung Fung, Lu Bao Qing assistance, snow Yang, Cody is still one last shot, etc. The next fall will be Who? instant noodle industry how to answer a new round of price increases? future lie?

(b) the regional warlord-style competition in the market

36 years to cultivate a 300 billion consumer market, but also created a 22-scale enterprises, but so far there is no monopoly of a business real Chinese instant noodle market. Master can not. Master's dominance is currently no company can really shake, but only in the Master of the domineering cities may feel to the market. Master is the industry's dominant instant noodles, but also the market's dominant high-grade surface of China's high-grade surface 12 billion market accounted for nearly 70% of the Master, the other 30% of unity, this Michael Lang, Nissin, Nong Shim, dolls and other entrenched. Yangtze River north of the high-end market is dominated by surface Jinmailang and Master competition; south of the Yangtze River is mainly uniform and Master fight the shelf. about 18 billion mid-surface, surface and low parity are hundreds of companies face divided up. have large base of large enterprises, small businesses have small base each scale enterprises have their own site. northeastern provinces, Hebei, Shanxi, Shandong, Hualong the upper hand is the base of the northwest Henan, Shandong, Anhui Jiangsu, the three northeastern provinces, Hunan is the advantage of a white elephant base. Shanxi, Shaanxi, Henan, Hunan, Gansu, Sichuan is the advantage of Sri Lanka U.S. special base. Hongfa, Qing Wei, a River, BC in the southeast account for a large market share in Guangdong and Guangxi, Jinfeng account for a large market share. Jin Ziyang in Guizhou, honored, and everyone there is one of the princes in Anhui. Guohua in Hubei, and Hunan, the higher part of the market share of each company is eyeing a staring at each other's market, the preparation of the attack at any time. every company in the adequate use of insert bits marketing, looking for their own market niche, occupy the gap, expanding the gap. 大鱼吃小鱼 this tug of war games and I do not know to be staged when?

two. instant noodle industry problems:

(a) product problems

(1) non-fried Who is fried mainstream

2006 January to June, instant noodles production reached 1.968 million tons, an increase of 37.8%, showing a succession trend of accelerated growth, but weak growth in the second half of each noodle business , the market has stagnated growth conditions, deep-fried instant noodles in the domestic market launch, causing a deep-fried instant noodle industry, and non-fried dispute Frequent broadcast television advertising, the brand ambassador Baoguo a dressed in white Seventh Lord, the servants came, a bowl of fried instant noodles to open a number of cheek: Instant noodles nutritional health issue has again aroused widespread concern in the industry see, most consumers did not recognized the depth of the concept of healthy non-fried, non-fried taste of rushes and marketing skill level mediocre light, making the non-fried destined to non-mainstream products, similar to the mineral water on the dirty water, electric barbecue charcoal barbecue and a new version of the story, so we see a strange excitement of corporate public relations to promote war, media followed by hot, debate continues to heat up, consumers are at a loss of.

(2) the face of the market is a spicy taste in the end, is to follow or simply innovation

various manufacturers this year have whipped up a taste in the end what the heart, spicy taste really appropriate national flavor? , much to the product display shelf, is to lead the trend? Or follow the Master, or want to do Master's brand orders present? the face of a hot market in the end, is to follow it, it still is their innovation?

(3) the product structure messy

products in many markets too much, tell the main products, many of the market situation and even kill each other, uniform price the product too much, they constitute , for example, the author is responsible for the market, white elephant in the same market,coach purses, there are as many as four kinds of products the same price, regardless of the results of primary and secondary, leading to confusion in the market.

(4) the impact of the new powerful old pattern < br>
areas from the national point of view, China's instant noodle market, mainly by Taiwanese Master, unity, and the giant Japanese companies such as manipulation of Hualong fortress; in the south market, places of Guangdong and Fujian Jinfeng macro-based hair these main deep-fried instant noodles brand a great impact among consumers, called the leader of traditional instant noodles. Insiders analysis pointed out several giant firmly in control and carve up a large portion of the market cake case new entrants must rescue with a new concept, emerging features the ability to win the party space. in fact, put forward the concept of non-fried grain temple, Wahaha large cooking instant noodles and other new brands entering the market after , erected a banner of green and healthy foods, starting with the traditional deep-fried instant noodles business rival. Thus, the current domestic instant noodle market, the competitive situation had changed, several have been fried by the between brands lose ground, and gradually evolved into the oil fried and non fried two competing camps, once the standard introduction of non-fried instant noodles, which were found in the more competitive format, the traditional noodle business, the old deep-seated antagonists, the next day or camp may be the unique benefits of defense Union Army. grain temple, of course, lost in the crusade against the steadily pushed, but the industry which in 2006 sales fell

(5) health and nutrition trend of instant noodles since the emergence of competition

the ?

(b) the price problem

(1) raw material prices, how to find countermeasures

since August 2006 and the main raw materials, palm oil, instant noodles , wheat, packing volume, prices began to pepper, the magnitude of price increases in January as of today is growing. palm oil from 2006, the lowest 4300 yuan / ton rose to the current 7,500 yuan / ton; wheat from the first half of the 1.4 yuan / kg rose to the current 1.56 yuan / kg, packaging volume per meter price 0.02 yuan; pepper prices of 13.2 yuan per kilogram, coupled with rising oil prices, freight rates, this will no doubt have been highly competitive low-profit industry to instant noodles that is a nightmare in raw material prices, while small manufacturers can not stand all the pressure of instant noodles were eliminated, Hualong white elephant, and other major manufacturers finally give way and the pressure began to look for a new approach, prices feel the burn.

(2) indirect price or indirectly in the end price

3 month food instant noodles Association meeting, industry second oldest and the youngest white elephant fight Hualong their hands full, Hualong idea of ​​indirect price increases, while the white elephant advocate direct prices so-called indirect price is on the packaging, and the dough to make a fuss, there are degrees of aluminum into PP packaging film, the surface blocks to reduce the number of grams, etc. in the end which way . has not yet reached a front from the market point of view it did. white elephant stand the pressure has begun prices, big white elephant bone surface end up 0.5 yuan each, while the number of grams of Hualong put down, there is no terminal prices , and what should go with the industry's businesses do?

(3) the price war has turned in the price of low surface area

in instant noodle industry has been taking the low-cost noodles market, the price of the surface by profit, high-priced noodles image.

price war is a lose-lose game, always want to raise the price of the knife Kanxiang each other, the result was the invention also has its own injury. Chinese companies can often find themselves unable to indulge in this game, mainly cause or blind expansion of the result of excess capacity. Hualong first six-chome few years ago, . Hualong six-chome, white elephant Take the red fire, and a good life, good taste against the surface. For a time in the Central Plains on the retail price of 0.5 yuan war of smoke. after a lapse of three years, a new price war has re-ignited The difference is that this war's products into the retail price of a dollar in the face. Konno ramen on the national market, a large bone surface, super Fumanduo infighting; the Northeast market, the East San Fu, uniform soup big bone surface, a white elephant Northeast bone surface, in Wang Noodle House, a taste of home, etc. continue to increase the promotion of Southeast Qing Wei on the market and a Chuanla face war. 24 packages of about three bags of 110 g feed low-cost aluminum products between the 17-18.5 companies to profitable? the price of the surface in these enterprises are in sales accounting for about 40%, accounting for more than 40% of the products participating in a price war, the industry profits shrink on reasonable that. it not only competitive price war way? (c) channel problems

(1) tends to become saturated urban markets, a large number of instant noodles

enterprises to enter China's large cities are divided grab market share, to carry out killing , the price war intensified, and even doubt be added. The large-scale enterprises through a variety of competitive strategies have their own sites, according to small and medium enterprises in the fierce competition from the big cities have many seem unable to move. and some of the more convenient of convenience foods is the impact of instant noodle market, coupled with convenience food consumption of urban residents have higher taste pursuit,
(2) there are many errors in rural market

parity surface in the gradual strengthening of the rural consumer, large rural store a large number of potential consumers of instant noodles and now as consumption in rural areas in order to progress, instant noodles in the rural areas have gradually been more consumers to receive, special price of instant noodles in the mid-range, this phenomenon is more obvious, although in the mid-range prices in the profit margin is not high, but the vast consumer market to improve the market is very good sales, but China's instant noodle market presence in the rural market errors are:

(1) request the rural market for lower quality products. In fact, the grade and quality are two completely different concepts, perhaps comparable to the market and market rural market, the exact low-grade, but in each grade, only those products with higher amount of German enterprises in the fierce market competition in an invincible position. Sri Lanka is to the rural market, especially the United States launched a dollar face of the Gold Circle and quick thinking to grow up business.

(2) the level of consumption in rural market has reached a certain height. Indeed, the consumption level of rural market has been improving, but in addition to geographical departments, the overall level remains low in rural areas than in urban markets need to market more cost-effective products and only those who can provide good quality for the rural market, low prices of products and companies, in order to achieve the ultimate long interest in the rural market.

(3) neglect of the rural market potential benefits, why rural consumers than ever before to become rich, the corporate hand that the rural market can earn money out? not more competitors are forced to the rural market, exacerbated by the rural market competition in the market, on the contrary, the the acceleration of industry concentration, the rural market has become less competitors. the origin of the problem is that these companies firmly staring at Master and unity, and did not really discuss the rural market and rural demand, resulting in the current `high` low-end products in the rural market efficiency are low, even in low-end products' high-end products are not good economic situation, which is the extensive development of the rural market for over-the result of

(d) promotion problems

(1) fight or fight celebrity advertising

Master of advertising in the China Central Television is the taste, as well as fresh faces all directions, the younger the flavoursome. products compete in the advertising file for instant noodles have swept market, domineering, Hualong places still hot Huang bombing on the central television, film and television star white elephant is invited Hu Jun, unification, invited Jay Chou and Fan Wei, Smetana's Jewel in the special advertising in the industry near the valley of the profit when the ads you have to fight?

(2) marketing channels to increase sales, or increase capital

promotional efforts of the various manufacturers are not identical, the intensity different, the most hitting power source is Hualong millionaire plan, large promotional efforts result of today's location, but so much trouble in the price system of promotion, in order to drive sales, sales people and even lose money, so it really profitable?

(e) Marketing personnel frequently change jobs

this is impatient to help the industry to support a marketing impetuous person. Hualong Master marketing team quit, the Hualong busy marketing team quit, Jinfeng and White Elephant marketing team quit Guohua due to the marketing team quit, and even the emergence of the two companies launched the same name, same size products farce collective quit to become a landscape shaped by instant noodle line! collective quit greatest harm is the business management team's collective lack of business caused by vibration or even halt production. white elephant, Jinfeng, Guohua also suffer. enterprises to love as unworthy of life to develop a number of annual salary of thousands, millions of marketing managers, gang Marketing managers often do not give companies the sales profit and long length hard to heal wounds.

three. instant noodle industry response

(a) products countermeasures

(1) short

fried will the mainstream authors get the news in the market to look at, in the prosperous 70% distributors have already declined and then purchase, and now The great temple to see the grain market is a month of local products, prices drop a lot of grain temple can go far. At present, China's instant noodle market, 99.9% are deep-fried instant noodles, grains temple is the look of a subsidiary

in Wang is also a complete enterprise started by the fried noodles. this attack type of marketing is also deeply hurt the entire industry's damage with himself. scale Kill a thousand, two thousand self-mutilation! results is the original in Hebei, Shanxi, Shandong, the Northeast has a place in the busy noodle fried noodles sales plummeted. broken grains, simultaneously earning a well-known body of advertising in addition to those degrees and cost of the eye, but Wang is not currently in any profits earned from . but rather cope original capital investment, high advertising costs, the high expense of the city and move to the expansion of market development in the prosperous grain temple dragged into the deep financial quagmire. avalanche of advertising gone, the supermarket's tally members was gone, buy shelves filled with competitive products. 07 can be quite busy in the past it? incremental non-fried instant noodles is indeed the new section. can be a limited market capacity and surface machine, the bottleneck is a quick seasoning techniques on the amount of obstacles. so many companies swarmed, will present new excess capacity? is non-fried in the Japanese market has been several years ago, but the Japanese market, non-fried products accounted for 20% of the market is not so fried within a short time will remain the mainstream!

(3) the next stage of development and innovation as the focus of competition

number of years ago in addition to Nissin, agricultural heart, Master, the same, other companies are fighting in the middle and low surface market. enterprise instant noodles along with the rate of expansion of production capacity is greater than the market rate of total capacity additions, the beginning of intense competition among enterprises; with the original data of significant price increases, profit margins extreme shrinkage, to each enterprise product structure of the swap with the renovation of the invention of opportunity in China to facilitate competition among enterprises face much like the history of TV competition among enterprises in China's history. After homogenization of the price of post-war return to sensibility, to the differentiation The product is different and the road.

instant noodles last two years mainly in the area of ​​innovation block, spices and flavors innovation, the effectiveness of demand, production technology in four areas. Jinmailang innovation on the surface of the body instant noodle industry to promote a big step forward. once consumers spread: eat Jinmailang face, Master of soup to drink. Jinmailang foothold in the city and the area of ​​innovation is inseparable from the body. big white elephant bone face the demands of the , hot and sour pork to attract a large number of consumers. Master, unity, Hualong, white elephant, Huafeng taste in the taste of innovation on the development of the region is more worthy of note. in Wang's innovation is reflected in the production process, category of innovative, non-fried, whole grains secret agents, grain temple. made noodles to eat healthy. Huafeng innovation process is simply to improve the surface, spraying accomplished a product, save a business. 05,06 just the industry growth has slowed down, but product innovation emerging competition, flourishing phenomenon. the vast territory, many of the nation, gave the regional north-south differences in the development of flavors and innovative supply a prerequisite. by nearly two years of innovation, a unique Japanese flavor braised beef dominance status has been changed. trust the future of instant noodles taste is the new low surface gradually exit the market, the price side, high side competition. the value of competition from price competition to enter the era of large enterprises the overall strength commensurate with market fundamentals and also the base of the original shape of the network, so the competition is the future of competition in product quality At the same time the vast majority of Chinese people have solved the problem of hunger and cold, with the acceleration of urbanization, more people consider the problem of how to eat well. consumers are increasingly demanding high quality products, the price will not affect the product Sales of the most sensitive factor with low-grade side will raise the level of consumer spending out of the market competition in the future mainly in big cities and small towns in the area and high surface quality and price competition.

(5 ) to develop pasta civilization, the development of coherent product

of facial volume of China's thick streamer, with the popular idea to eat healthy, Lanzhou noodles, Sichuan dan dan noodles, noodle, Henan, Shanxi noodle, Wuhan heat dry surface, Qishan Sào surface, wet the surface of fresh, hot noodles and instant noodles and other nutrients are in the situation appears. convenient dumplings, ravioli, rice, bread, etc. will follow popular now Master launched the >
(6) to optimize the product mix to form the core of the Taurus class quality products series

consumer demand is not over large and comprehensive, multi-grade and complex period of basic needs, shorten a single brand of product front, the companies or brands of products under the optimized structure, the primary problem is instant noodle industry in 2003 Smetana special low-grade or in the mouth fragrant family-oriented product structure, when the annual cost as a significant increase in instant noodles , and operational errors, and even the operating loss in the context of enormous pressure to survive, the company conducted a large-scale product structure adjustment in the thinking of a product line to form a round, after the market break has cut the company's Circle consumption of instant noodles are the focus of low-cost surface from 0.5 yuan to 1.0 yuan more than in the high side too. to senior product positioning sales, and cut the proportion of a continued trend of expansion for Sri Lanka U.S. special harvest a lot of profit in the second half of 2006, the instant noodle industry wide cost pressures rise, the use of tightening food items, family gather round to thinking strategies and effective adherence to the stability of the market now through product optimization to form a lead the development trend of instant noodles

Today, health, health became more and more important, where appropriate, the ancient human consumption factor. Especially for the food industry, nutrition, convenience, there are great green health food increased potential. Between non-fried and fried argument is not new,
(b) of the price response

(1) Lee is the main mode of corporate profit. In this context, the instant noodle industry has been suffering from a grain and oil prices a ; do not rise, the result will be much loss to sell the amount of raw materials soaring in the case, the curve is more easily allow the market to accept price increases, from the market point of view, the second groups of consumers and prices are very convenient prices directly emotional discord , severe impact on sales, and indirectly is a lot less price resistance, as early as 2004, Hualong, Master Kang instant noodles manufacturers, to take some of the products Early last year, the Master will be a good fist of its kind sales price increase of 10%% or more. Reduce weight, but not lower prices, manufacturers of instant noodles has become a widely used of tricks, even some enterprises started to This is the To survive

(c) the channels response

(1) channel sink, attach importance to the construction of the town market town market growth will

While the rural market growth over the two-year growth rate down to single digits by the double-digit, but with product innovation, instant noodles that is convenient and nutrition, consumer choice will increase the chances. Currently less than 40 packs per capita sales, far less than South Korea's per capita sales of 70 packets. There is room for growth and reasons. With China's economic development and the accelerated pace of life, the acceleration of urbanization process, each year an estimated 20 million people into the city, fast-paced life will inevitably lead to increased sales of instant noodles.

(2) value of the market model and build their own base

as a business, there is no basis to model their own market, its market position is weak and unstable of. Must establish a model market, strong own territory, ability to conquer new territories, have a better market.

(d) promotion in response to advertising efforts

center of Taiwan-based, less celebrity endorsement

CCTV has strong appeal , its influence can not be estimated, the image of instant noodle industry endorsement was not significant, either white elephant please a few celebrities, unified also asked several celebrities to do endorsements, but the consequences are not clear, instant noodle industry, such a low profit margins, please name stars not worth it. More than some of the costs for the final really a development.

(2) marketing channels, should do what

many manufacturers support their own base, bloody competition with a loss into a huge promotional costs of the terminal, the results both at a loss, manufacturers do not profit, dealers busy for a white, crippled, so the promotional costs should be realistic.

(3) nutrition, health and special features as a marketing concept

With the improvement in the quality of national life, the demand for instant noodles choice is changing, from the past. benefits, to fill his belly Hearty soup, more contents, lower fat content and nutritional ratio of more perfect, more consumers will make instant noodles lost the blue eyes. Survival pressure Ambassador Hypertension, high cholesterol, obesity, diabetes and other people is increasing. This part of the population have become increasingly demanding of health and healthy eating are gaining in importance. Enterprise is the development of instant noodles for food products of this group is also an issue.

five. Forging devout

efficient marketing team leaders to establish the highest sense of loyalty to the team, to provide sun promotion system, can provide a stable and secure income, good rail system and processes, ongoing vetting system, allow the existence of small culture personality, emotional investment fair, caring staff of life, setting team building restricted area. If each company to these seemingly simple things to do heterogeneous, simple things really do, serious incidents repeat, do creative things repeatedly. Then you can cast a loyal and efficient team of marketing step.

stop words:

In summary, our instant noodle industry is still a long way to go. Competition among enterprises has become incandescent products, application of competitive prices, quality products, good services, and consumer and channel marketing campaign to establish mutually beneficial long-term point of view related products such competition is no longer able to adapt to the competitive market environment,