Arumchan Kimchi Enjoying High Popularity

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Summary

The National Agricultural Cooperative Federation (NACF), also known as Nonyhyup, has sold Arumchan Kimchi since the second half of 2002 and it has gainded strong popularity among housewives.

The sharp rise in sales reflects the effect of the growing brand power of Arumchan. Its 11 plants produce kimchi and sell them under the joint brand name of Arumchan.

The joint brand strategy has proven successful so far. On top of brand power, the recipe for the success of the kimchi is the use of homegrown materials and a tough quality control system. It uses high-quality peppers, seasonings and cabbages under a standardized process.

NACF also put a greater focus on strengthening its marketing through its outlets nationwide and the Internet (www.arumchan.com). Customers also can get the kimchi at shopping.nonghyup.com. It also plans to expand exports to Japan, New Zealand and other countries via online sales.


Opinion


Kimchi is the most familiar food in korea culture. Most of koreans eat kimchi every meal. For this reason, there are many competitors in this market. Among these competitors, Arumchan Kimchi has been doing well by executing their unique strategies.

One strategy they do is to have special recipe for the kimchi. They use homegrown materials and a tough quality control system; also they use high-quality peppers, seasonings and cabbages under a standardized process. This is the capacity that can lead the company excess other competitors. Having a competitive superior position is critic to maintain the top in the market.

Another strategy is to strengthen its marketing through its outlets nationwide and the Internet (www.arumchan.com). Customers also can get the kimchi at shopping.nonghyup.com. Expanded channel can be the most useful way to increase customers particularly in this day and age. Lots of people have found that buying through the internet web-site is easy and fast. Also, by using the web-site, the company can collect customer's information. This can help the company respont to customer's need exactly and accurately.


Student ID # 20500018
Entry # 7