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Ottogi put the phrase “crown holder” at the bottom of the cup noodles.
Ottogi Jin Ramyun is the second largest ramen brand in the ramen market. At the end of last year, it was chasing Nongshim Shin Ramyun (15.5%) with a market share (based on sales volume) of 14.6%. ‘Social Impact’ is Ottogi’s secret weapon that threatens Nongshim’s ’30 Years Shout ‘. After last year, Ottogi also took first place in the ramen category this year.
The Korea Economic Daily conducted the ‘Hankyung-Ipsos-PMI 2020 Corporate Social Impact Survey (CSIS)’ in the form of an online survey targeting 10,000 men and women twice in July and October. As a result, the contrast of social reputation by brand in 50 industries was clearly revealed. Social impact is an index that measures the social reputation of a company by consumers, and is considered the most important corporate evaluation measure together with the ESG (Environmental, Social, Governance) index, which evaluates a company from the Investor perspective.
Hyundai Motor Company (internal combustion and green car sector) and SK Telecom (fifth generation mobile communication) Samsung Pay (mobile payment) Samsung Life Insurance (Life insurance) Hotel Shilla (Luxury hotel) Shinsegae (Department store) People of Delivery Starbucks (Specialty coffee shops) Chamisul (Soju) Jeju Samdasoo (mineral water) Hana Tour (Travel) Yuhan Corporation (Pharmaceutical), etc. They lead the market and are classified as a group of companies that maintain a good reputation (social impact).
Like Nongshim and Ottogi, there are industries in which market leader (Nongshim) and social impact (Ottogi) are divided. When asked which company they trust, half of the respondents (46.7%) chose Ottogi. This is the basis of the perspective that ‘Gattogi’ is about to revert to Shin Ramyun. Along the same lines, Coupang, which invested 300 billion won this year to fight the new coronavirus infection (Corona 19), and 15,000 newly hired people, beat Naver, the market leader in terms of transaction amounts, in the social impact survey.
LG, No. 1 in Large and Environmental Appliances … Sulwhasoo · Gyochon 2nd year Suseong
LG Electronics, which ranked first in the field of large appliances for two consecutive years.
“What brand of TV and refrigerator do you like?”
In Korea, the answer to this question is roughly stated. 9 out of 10 respondents with ‘Samsung’ or ‘LG’. As such, the two brands firmly hold the home appliance market. The first change of place is also fierce. Depending on who launched a new product this year, the ranking changes based on who spent the most marketing dollars.
The results of the Social Impact survey asking “social reputation” stand out in terms of providing a basis for assessing the direction in which this competition between Samsung and LG will develop. After last year’s first survey, LG Electronics also outperformed Samsung Electronics and ranked first in this year’s Large Appliances, Environmental Appliances and Television Industry Social Impact Survey.
Social impact is the measure of future market share
The ‘Hankyung-Ipsos-PMI 2020 Corporate Social Impact Survey (CSIS)’ was carried out by examining the social reputation of 50 brands. When asked, “What is the most trusted brand?” In the field of large-scale home appliances such as refrigerators and washing machines, 59.2% of respondents chose LG Electronics. Samsung Electronics ranked second with 33.9%. In the field of environmental appliances, including air conditioners and air purifiers, LG Electronics surpassed Samsung Electronics (33.1%) with 48.8%, and the results were the same in the field of television.
“LG has a strong image of being a socially good company, like awarding an award to a righteous person,” said Jung Won Business Consulting Group Manager of Ipsos Korea, who is overseeing the survey. “What’s interesting is that the majority of respondents who chose LG responded that their political orientation is progress.” Explained.
“Consumers who prefer Samsung are those who have vague loyalty, and it is the result of traditional marketing. Compared to this, the biggest difference is that LG is a brand preferred by people who experiment and evaluate while using this and that. did.
The smaller the difference in quality, the more important the reputation
Consumer goods markets, such as food, fashion and alcohol, are also representative areas where brand reputation is directly related to sales. Since there is not an overwhelming difference in price and quality for each product, the market share also changes rapidly. Skills are “a piece of paper of difference”.
However, a significant gap has widened in brand rankings based on social impact. In the ramen market, Ottogi surpassed Nongshim and took first place. The gap reached 13 percentage points. Experts say that good corporate marketing, like being called ‘Gattogi’ on social media, was effective. Ottogi has been supporting operations for children with heart disease since 1992.
There is also an assessment that Ottogi is overwhelming Nongshim in “careful communication” with consumers. An Ipsos official said, “President Young-joon Ham was known to pay 150 billion won in inheritance taxes in 2016. It is effective to actively communicate with the company.”
Nongshim is also inferior in bottled water
Kyochon Chicken takes more franchises instead of increasing stores.
Changes were also detected in the bottled water sector, where it is difficult to differentiate quality. Isis, a bottled water brand from Lotte Chilsung, has moved from third place (8.5%) last year to second place (10.7%) this year. With the environment in mind, consumer trust is assessed by making unprecedented attempts, such as launching the industry’s first unpackaged ‘Muravel bottled water’. Nongshim Baeksansoo, who was in second place, fell back to fourth place (5.8%). Jeju Samdasoo is not missing out on market share and number one social impact.
In the chicken franchise category, Kyochon Chicken, which did not unreasonably increase the number of stores by emphasizing franchise profits, took the top spot after last year. Despite the spread of Corona 19, BBQ has risen to second place this year from third place last year, taking the lead in supporting youth startups and taking the lead in win-win with affiliates. 60 Chicken, which ranked fifth last year, went from fifth last year to third this year, with the brand identity of “use clean oil.”
In the cosmetics category, Sulwhasoo and Hera from AMOREPACIFIC ranked first and second respectively. LG’s cosmetics brand H&H was not in the top three. The two companies are matchmakers in the beauty industry. LG H&H is a leader in performance. As of the third quarter of this year, the operating profit was 9646 billion won. Achieved 62 consecutive quarters of growth (based on operating profit). AMOREPACIFIC posted an operating profit of 152.2 billion won during the same period. The focus is on whether Amorepacific, which remains a leader in terms of social reputation, can seize the opportunity to reverse its performance.
Reporter Park Dong-hui / Kim Bo-ra / Song Hyeong-seok [email protected]
