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like this, it is not surprising that drinking mix plays a huge role in creating an atmo-
coffee will become the country’s habit. Most sphere for social interaction.
of the time, people just need caffeine to boost
their energy and sugar to relieve the stress. Coffee Mix Market
Then a cup of 100 won ($ 0.1) coffee mix turns
out to be the best choice. Therefore while the So far the market of instant coffee in
streets of South Korea are lined with endless South Korea has been dominated by Dong-
rows of cafes and coffee drinking establish- suh Foods’ Maxim brand. Korea’s annual
ments, the number of people who drink demand for the coffee mix is estimated at
instant coffee in Korea is still the biggest. 1.2 trillion won ($1 billion), or more than
a third of the coffee market. Coffee mix
What Coffee Mix Means to business is attractive also because it shows
Koreans high operating profit to sales ratios of near-
ly 20%, when other items rarely see oper-
“Our culture is unique because any- ating profits of more than 5% of revenue.
where you go – the gas station, workplace, Dongsuh had long maintained a mar-
convenience stores – there’s always going ket share of over 80% in the coffee mix
to be a hot water dispenser and coffee mix,” business, with Nestle Korea taking up
said a staff member from Dongsuh Food. “In around 15%, until Namyang entered the
the US, coffee makers are everywhere but market in 2010. Aggressive marketing by
in South Korea, coffee mixes can be found Namyang pushed down Nestle’s share to
everywhere. This has to do with how easily under 6%. Its market share as of the end
you can find the coffee mix, and also how of April 2017 was 5.5%. Dongsuh’s market
easy it is just to make one at work or any- share shrank to 72.2% as Namyang reached
where else.” Yes, coffee-mixes are every- 19.2% as of the end of April at E-mart,
where in Korean life. The idea of coffee mix Korea’s largest discount store chain. At
is to let people enjoy coffee anytime and Homeplus, the shares for Namyang and
anywhere. The tiny packet which filled with Dongsuh were 20.5% and 75.5%, respec-
coffee, creamer and sugar has been beloved tively. Which shows a fierce competition
by the population because of its unique for market shares and love as well as
taste, flavor and cheap price. So anyone can wallets of customers.
enjoy this at home or social places. While To satisfy each and everyone and to
most of citizens enjoy to sip a cup of espres- win more consumers, brands mainly have
so at a coffee shop just twice or three times 4 product lines: the original mix, skim
a week, coffee mix is a crucial part of their milk product, low calorie product and the
day: at home or in an office - people can premium fresh roast bean product. The
enjoy it anywhere. In restaurants coffee mix prices of the products are various from
is usually offered for free at the end of your line to line. Normally it is from 120 won
meal or when leaving a restaurant. ($ 0.1) to 350 won ($ 0.3) for each stick.
Coffee mix is more than a drink, it has Target markets of the 4 product lines are
a specific social role. It is a medium, that different: targeting of the original mix is
connects people via conversation while 30-60-year-old male office workers, audi-
drinking hot cup of the mix. It’s also a part ence of skim milk & low-calorie product
of people’s working culture. The reason why is 30 to 50 years old female customers,
office workers grab a cup of coffee mix in who care about health but still looking for
the second half of their day is not only for the original taste of coffee-mix, and last
a caffeine boost, they want to enjoy a break but not least, premium line’s consumers
from crazy busy schedule, when they just are young generation and middle class
sit together and chat with the coffee cup in representatives, who seek convenience
hand. Whether having it with business part- and taste of freshly-brewed coffee.
ners, coworkers, friends or family, coffee
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