SEOUL, Feb. 21 (Korea Bizwire) — Food businesses are striving to overcome the economic slump coupled with the coronavirus outbreak.
Companies are trying to approach consumers by lowering prices and increasing product size, despite various factors that negatively impact pricing.
Haitai Confectionery & Foods Co., a major confectionery company in South Korea, introduced a new, larger Free Time Choco Almond Bar.
The new product is bigger than the original, going from 36 grams to 64 grams. The price has been set at 1,500 won (US$1.24), up by only 50 percent.
Considering the size and pricing, the new product is actually 15 percent cheaper, said Haitai.
Genesis BBQ Co., a local fried chicken chain, introduced a new cheezling line-up last month, lowering its price from 19,000 won to 16,500 won to celebrate the company’s 25th anniversary.
Liquor businesses are engaging in closer competition after a new liquor tax law that imposes tax based on the volume of liquor was passed.
Lotte Liquor BG Co., an alcoholic beverage maker, decided to lower the prices of its beer products to lead the competition.
Another confectionery maker Orion Corp. has also been gaining competitiveness through its ‘Good Packing Project’ since 2014.
Over the past six years, the company has increased the size of its flagship Choco Pie and 17 other confectionery products without raising prices.
The company also improved its production line to minimize packaging after being criticized for leaving too much empty space in each package.
These efforts can maximize consumer benefits and improve brand reputation, which can help the company in the long run, experts said.
“It may not be an easy decision for these businesses, but cutting down excessive marketing and events and raising the efficiency of overall production process may result in a win-win scenario for both the company and consumers,” said an industry official.
“These efforts are expected to continue to help overcome difficult financial circumstances.”
H. M. Kang (email@example.com)