Ting Hsin International Group is one of the leading Chinese manufacturers of food products and the owner of a very popular in Asia instant noodles brand - Master Kong. Annual turnover of this company, which clients are nearby 5 thousand wholesalers and 50 thousand retail enterprises in China, exceeds $2 billion. Besides Ting Hsin owns a network ofhypermarkets Hymart and a network of fast food restaurants Dicos.
The idea of a perspective business came to the youngest of brothers Wei. Once, during one of the long railway trips to Beijing, he prepared for himself instant noodles, this has immediately drawn attention of other passengers of the car, they also wanted to eat something fast and tasty. Brothers have carried out a research and found outthat the Chinese market of instant noodles was represented by two extremes. Many manufacturers offered very poor quality noodles for the corresponding price and the other extreme were imported noodles, which were of an excellent quality sold only in specialized shops and airports, but consequently the price was unaffordable for an average consumer.
Brothers Wei decided to produce instant noodleswhich were invented by Japanese Momofuku Ando in 1950th and concentrate on the average price segment. They have studied tastes of inhabitants from various regions of the country and discovered that in the south of China people prefer sweet noodles, in the east- sour, in the north – salty, and in the west – spicy. They have also calculated the “golden mean” – the price which would be above thecheapest Chinese noodles by 50% but much more below the price of imported ones. Brothers Wei have launched on the Chinese market instant noodles under the brand of Master Kong, which is today familiar to all the population of this country.
When Master Kong first appeared on the market in the middle 1990th cost of display of one ad on the national TV was only 60$. Brothers Wei took the advantage ofsuch a cheap pricing on advertising, and the trailer of Master Kong noodles has successfully merged with the Chinese TV image. Thank to bank credits and other extra means the company invested in Master Kong more than $300 million. Now Ting Hsin makes more than 4 million packs of instant noodles a day and occupies 44% of Chinese market share of this product. To avoid the copying of their productsthrough other companies Ting Hsin International is trying to cut production costs quickly and innovate constantly new products. A key tactic to the company’s success is their use of large numbers of sales agents who visit wholesalers across China on a regular basis.
The following SWOT analysis will evaluate the Strengths, Weaknesses, Opportunities and Threats of the company to make it obvious whatthe company can improve to be more successful and gain further market share.
|Strengths: |Weaknesses: |
|Largest Market share |Priced 50 % higher than local Chinese brands |
|Sales Agents| |
|Large variety of flavours | |
|Chinese roots | |
|Strongest package fast food of china ||
|High quality image | |
|Opportunities: |Threats: |
|Growing number of working couples |Competitors...