Why is the three step of raising prices the classic bag face series?

Why is it that the low end products of Kangshifu are late?

In October last year, Kangshifu announced that it would adjust the price of the "classic bag face series" from 2 yuan / pack to 2.2 yuan / bag in November 1st of that year.

Sales of this series of products account for 30% of the sales of all instant noodle products.

In February of this year, Kangshifu announced that it had issued a notice to the suppliers nationwide to raise the retail price of the packaged instant noodle, such as braised beef noodle and shrimps fish noodles, by 0.1 yuan / bag.

Just a month later, the company also announced that it would increase the price of some noodle noodles by 10% to 15% for the purpose of relieving the cost pressure.

The steps to raise prices reflect the unique marketing strategy of instant noodle giants.

The market of instant noodles has always been controlled by Kangshifu, Hualong, white elephants and unified "four legions". The status of Kangshifu's "boss" is hard to shake, and the unification is closely followed by Kangshifu in the way of strategy and product promotion; the white elephant with the main nutritional instant noodles is stable in the middle end market; Hualong has another way to attack the low-end market in rural areas.

Li Mingli, general manager of Fangyuan brand marketing organization in Beijing, pointed out: "with the expansion of market share and the improvement of coverage, Hualong's stable position in the low end market is hard to shake its position.

The unique price strategy has enabled Kangshifu to play a leading role in the instant noodle market.

Insiders pointed out that, in order to seize the low-end market, Kangshifu deliberately lowered the price of its low-end instant noodles, and at the same time made up for the loss in the low-end market through high gross face and high price bagged noodles.

The marketing strategy of "master the big and the small" is not only effective in containing the development of the competitors, but also ensuring enough gross profit margins.

If the price of bags is 10% to 15%, it will be 0.1 yuan at most, and if the price rises 10% to 15%, the price increase will be close to 0.5 yuan.

Marketing expert, Zhu Dan Peng, a researcher at the China Food Business Research Institute, said that Kang master used the low-end products to kill the development space of his competitors and made up the losses with the increase in the price of high-end products. This is the main reason why the low end products of Kangshifu are not rising.

According to industry sources, Kangshifu's ultra low price strategy for low-end products has been accused by the industry's "unfair competition".

Kangshifu has a high market share of 70% of the high gross margins and high priced bagged noodles, so that the company has enough to raise the price.

The first price adjustment for the "classic bag face series" is that this series of products is the best selling product of Kangshifu.

Insiders pointed out that improving the price of best-selling products is to test the acceptability of the market.