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For a long time ‘Dongsuh’ Foods and Nestle have been kept
their monopoly on coffee mix market.
Recently, ‘Namyang’ advance into the coffee mix market
implies that The large food companies enter into coffee
market. it take a food industry official`s eye.
We analyze a coffee mix market strategy of Namyang, based
on the strategic option selecting process such as internal &
external analysis, VRIO framework. etc. then, we will
analyze/predict a chances of success of coffee mix market
access strategy of Namyang.
Executive summary
CONTETNS
C a s e
Industry
Food (processed milk product )
Founded
1964
Founders
Doo-young, Hong
Key people
Woong kim (chair man & CEO)
Won-sick, Hong (Major share holder)
Net income
13,507,030 thousand won `2xxx.3`
Total asset
948,491,857 thousand won `2xxx.3`
Employees
2785…(생략)
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, operating profit is less than 5%, while mix coffee is over 10%.
Namyang clarified “Recently, domestic dairy product market
were tied up from decrease of birthrate, we decided not
stick to milk processing and enter coffee market.”
Entry background
- Product Diversification
The strong rival maxim has several type of coffee mix with division of product lines. For example, maxim coffee mix’s are subdivided into latte line, premium line, Decafe line, Half-calorie line and each line is also assorted by flavor such as mocha, caramel, vanilla.
In the case of Namyang, they have just two type of coffee mix which is ‘French coffee mix’, ‘French coffee mix arabica gold label’ and it seems too simple to meet customer’s various requirement.
If Namyang wants to expand their market share, they should satisfy diverse customer’s taste through product diversification.
- Human Resource Organization
We can guess the competition in the coffee market will be intensified d
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