Photo = News 1 Harim Industrial’s ‘Dumisek Artisan Ramen’ (7,800 won per bag of 4 at E-Mart), Nongshim ‘Shin Ramyun Black’ (4 pieces 6,150 won), and Ottogi’s ‘Jin Jjamppong’ (4 pieces 6,180 won) are Nongshim’s It is a premium ramen that is more expensive than popular ramen such as ‘Shin Ramyun’ and Ottogi ‘Jin Ramyun’. If you buy all three at regular price at E-Mart, it costs 20,130 won. From a consumer’s perspective, it is a price range that makes it difficult to put it in the cart.
However, E-Mart has recently attracted attention by introducing a series of unconventional marketing measures to change consumers’ ramen purchasing habits. Continuing from the 2nd and 3rd of last month, from the 31st to January 1st of this year, an event was held where consumers could freely choose 3 bags (4-5 packs) for 9,900 won, regardless of the brand. Even if you buy a pile of Artisan Ramyun, Shin Ramyun Black, and Jin Jjamppong all at once, the discount rate is 50.8%, applying 9,900 won. This means that the right to decide on product composition, discount rates, etc. has been returned to the consumer. View larger image
I officially broke the 2+1 event.
The results showed that during the event held on the 2nd and 3rd of last month, ramen sales at all E-Mart stores surged 211% compared to the same period last year. The proportion of high-priced ramen priced over 5,000 won in sales rose from the usual 5% to 35%.
E-Mart’s latest marketing broke the existing ramen event formula and attracted the attention of competitors. Usually, ramen events at large supermarkets are held on a ‘2+1’ basis. This is a marketing strategy where if you buy two or more of a certain brand, you get one for free.
This is a technique that has continued for 30 years since E-Mart opened its Changdong branch, Korea’s first large supermarket, in Chang-dong, Seoul in 1993. In 2+1 marketing, both the discount target and method are determined by the supplier, the mart.
The biggest beneficiaries of this type of marketing are steady sellers such as Shin Ramyun and Jin Ramyun. This is because large supermarkets and food companies select these as event items without much thought, and the effect of increasing sales not only during the event period but also afterward is concentrated on these items.
However, E-Mart’s event promoted sales of various brands, resulting in a decline in the influence of ‘popular ramen’. After the event ended, it was reported that sales of brands that normally did not sell well increased from the 4th to the 12th of last month.
Excluding the top five sales brands, the remaining brands accounted for 60% of sales, an increase compared to before the event (53%). This is the result of consumer choice rather than twisting the arms of ramen manufacturers. Park Eun-hye, E-mart ramen buyer, said, “We believe that selling products from various brands will help E-mart’s overall ramen performance.”
Drive to strengthen product competitiveness
E-Mart has been making all-out efforts to strengthen product competitiveness since CEO Han Chae-yang took office in September last year. This is to regain the leadership that was lost to e-commerce such as Coupang. To this end, CEO Han is known to have ordered the product headquarters to “work to your heart’s content rather than report to each individual.” CEO Han also established a product procurement organization that integrated related departments of E-Mart, E-Mart Everyday, and E-Mart 24 under the slogan of ‘recovering the competitiveness of the headquarters.’
E-Mart plans to release collaborative products with overseas companies early this year as part of a project to lead shopping trends. An E-Mart official said, “Collaboration with suppliers is E-Mart’s greatest competitiveness,” and added, “We plan to continue to create products that can only be found at E-Mart by joining hands with major domestic and foreign companies.” E-Mart explains that methods such as pressure to reduce delivery prices are not under consideration.
Reporter Park Dong-hwi [email protected]
2024-01-01 09:53:06
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