Instant Noodles Higher Price

In: Other Topics

Submitted By yerinie
Words 389
Pages 2
Instant But Luxury - Would You Still Buy Them?
Not only are instant noodles cheap, tasty, storable and easy to cook, they play a pivotal role in our daily lives.
This "every day food" is now coming to have its Golden era.
However the company is expecting the noodle industry to saturate, therefore planning to exploit the market by introducing the new "premium" instant noodle.
According to the industry, the noodle market has had dull growth rate for nearly five years. Although it had a constant growth rate of over 10%, these days it only shows below 5% growth.
The biggest cause for the slowdown is the population decline. Teenagers who are the main consumers of instant noodle are now decreasing, leading to a drop in sales of noodles. Also with increase in substitute goods for noodles also reduced consumption.
In order to get out of this saturation companies are now working on making premium products to make a new market. It is to emerge from the low cost market to a broader market.
Instant noodles on the shelf right now are mostly below 1000 won, and premium noodles price three times more. The consumers are showing interest and positive reactions.
Nongshim sold 3 million noodles priced 1400won in the first 15 days, and exceeded 30 billion won sales. In this condition, Nongshim is confident to keep over 60 billion won sales every month.
"Nature is delicious" noodle (1500won) promoted by Pulmoowon (풀무원) two years ago is also continuing to show positive sales. It ranked as 9th in the noodle market according to AC Nielsen (end of September). It is highly unusual for a product from Pulmoowon to enter the sales top ten. This product is expected to become popular even more.
Seeing the possibility visualized for Pulmoowon, Samyang Food (삼양식품) also joined the crew one…...

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