---
title: "The Breakout Path for Small and Medium Instant Noodle Enterprises!"
description: "Behind a company's development are people driving product upgrades; while you may not remember who drove the company's growth, you will remember the product that contributed to the company or industry. A company's development history is also its product upgrade process. If you break through at a certain price point in a certain stage, you achieve staged victory; if you break through at each product upgrade and different price points, you become a great company growing from small to large, from weak to strong. Everything depends on people, but behind a company's development are people driving product upgrades; you cannot remember who drove the company's development, but you will remember the product that contributed to the company or industry."
author: "常建锋"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2017-05-03"
language: "en"
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---

# The Breakout Path for Small and Medium Instant Noodle Enterprises!

> Behind a company's development are people driving product upgrades; while you may not remember who drove the company's growth, you will remember the product that contributed to the company or industry. A company's development history is also its product upgrade process. If you break through at a certain price point in a certain stage, you achieve staged victory; if you break through at each product upgrade and different price points, you become a great company growing from small to large, from weak to strong. Everything depends on people, but behind a company's development are people driving product upgrades; you cannot remember who drove the company's development, but you will remember the product that contributed to the company or industry.

Behind a company's development are people driving product upgrades; while you may not remember who drove the company's development, you will remember the product that contributed to the company or industry.
A company's development history is also its product upgrade process. If you break through at a certain price point in a certain stage, you achieve staged victory; if you break through at each product upgrade and different price points, you become a great company growing from small to large, from weak to strong. Everything depends on people, but behind a company's development are people driving product upgrades; you cannot remember who drove the company's development, but you will remember the product that contributed to the company or industry.
Looking at small and medium instant noodle enterprises, most started with dry-eating noodles. Dry-eating noodles can help a company solve basic survival but cannot bring a happy life.
In the past six years, the "Five Golden Flowers" of the instant noodle industry have abandoned the retail 1 yuan products and are aggressively attacking products at retail prices of 1.5 yuan, 2 yuan, and 2.5 yuan, giving small and medium noodle enterprises in Henan and surrounding areas a better time. For example, Yuzhu, Nanjiecun, and Nutrition Guard have picked up the gap in retail 1 yuan dry-eating noodles and are thriving. Especially Nanjiecun and Yuzhu, with single noodle block and single seasoning packet around 70 grams, retailing at 1 yuan, suitable for both dry-eating and soaking, dominate the school channel. This has greatly impacted pure dry-eating types like Shengzhanshi and Mofashi, which can only be described as retreating in defeat.
Enterprises that started with dry-eating noodles may still survive now, but that doesn't mean they will still be around in five years. Dry-eating noodles are like a beautiful village girl; indeed, you have a good foundation and natural beauty, but at critical moments you still lack value. In plain terms, you lack the ability to resist risks. No matter how good you are at dry-eating noodles in mainland China, you haven't surpassed Huafeng's Mofashi. The key is that Huafeng is also walking on two legs, attacking soaked noodles, with soaked noodles accounting for about 30% of its share.
Prime ministers must rise from provincial governors, and fierce generals must emerge from the ranks. Running a business is similar to a career; hard work is necessary, but having the right direction and methods is the primary condition. After all, doing the right thing is more important than doing things right.
Have you seen anyone become a top-tier actress just because of beauty? Have you seen anyone become Chairman of the Military Commission just because of marksmanship? Have you seen anyone become a general manager of a company just because of strong market development skills?
Almost never. Even if there are cases, they are exceptions. Your company's strategic direction and positioning determine your position in the industry in the next five years.
Is there an opportunity for small and medium noodle enterprises to attack soaked noodles?
Yes!
First, the retail 1.5 yuan price band has been on the market for six years, and at this stage it can only be described as vicious competition. Kangshifu, Jinmailang, Baixiang, and Simeite are all operating with two extra packets included. In early 2017, Kangshifu's Fuman Duo and Baixiang's Jingdun Dagu gradually withdrew the two extra packets. At present, only Dajinye and Yupin Siyuan are still selling with two extra packets included.
Now, the market price of wheat is 1.3 yuan per jin, palm oil is 6300 yuan per ton, and other auxiliary materials continue to rise. If retail 1.5 yuan with two extra packets and a 100-gram noodle block can still be profitable, then the instant noodle industry is not low-margin but extremely profitable. The key is that it's not a high-profit industry, yet companies are still holding on.
Dajinye's mission is to become the absolute leader in the 1.5 yuan price band. With high-priced products accounting for over 35% of the company's sales, it can still get by. Yupin Siyuan's two extra packets are meant to maintain the victory fruits brought by last year's growth, but it's unknown how long it can last. Therefore, for small and medium enterprises, entering the retail 1.5 yuan price band has no opportunity first, and second, even if they struggle to get a share, it's not very meaningful.
Second, regarding the retail 2.5 yuan price band, everyone knows that products at retail 2.5 yuan have the largest sales volume. Kangshifu is the absolute dominant player, and the second and third players currently do not have the ability to directly compete. They can only rack their brains and use all promotional means to differentiate and gain a small share.
With a total weight of 100 grams, a noodle block of 82.5 grams, and a wholesale price of about 1.95 yuan per batch, retailing at 2.5 yuan, Kangshifu is not striving for progress and is enjoying the fruits of victory at the 2.5 yuan price point. Master Kong (Uni-President) captured a share with the 2008-launched Laotan Sauerkraut Noodles, which are delicious and visible. Jinmailang launched Yidaiban in August 2015 at retail 2.5 yuan, relying on larger portions and team execution to regain some ground.
But since Kangshifu's price regression in May 2016, competition in the 2.5 yuan price band has become even fiercer. Jinmailang's Yidaiban, with its larger portion (half a packet more), relies on physical volume to grab a bit of Kangshifu's share. If it were a direct confrontation, how could it overturn Kangshifu with taste? Therefore, the opportunity for small and medium enterprises in the 2.5 yuan price band is not great. Without strong brand and channel, attacking the 2.5 yuan price band would cost too much.
The final trump card: small and medium noodle enterprises should go all out to attack the retail 2 yuan price band for soaked noodles. There are three reasons:
01
The retail 1.5 yuan price band is like a person aged 60. If it weren't for the economic crisis in recent years, the 1.5 yuan price band would have already died out. This time, the price war at 1.5 yuan has accelerated the decline of this price band.
02
It is expected that in the next two years, the 1.5 yuan price band will come to an end, and all companies will attack the retail 2 yuan price. Directly competing with Kangshifu and Master Kong at retail 2.5 yuan carries too much risk, so entering late is worse than entering early. Entering early still gives hope for survival; entering late means you remain at your current company scale. The key is that Baixiang's Dala Jiao and Zhengu Tang are leading the way. As long as you thoroughly study these two products and follow them, you can proceed, because at the retail 2 yuan price band, products, channels, and marketing personnel all have profits.
03
At this stage, small and medium noodle enterprises should not study Jinmailang. Jinmailang does have a retail 2 yuan product, Jinmailang Zhenpin Dai, which is very strong in some parts of North China. This product is biding its time. Because Jinmailang is currently focusing on Dajinye for company scale, and promoting Yidaiban and Yitongban for company profit and to one day directly compete with Kangshifu. Once the retail 2 yuan price band forms a climate, Jinmailang only needs one move: let Zhenpin Dai follow the path of Dajinye. It has the tolerance and boldness to overturn the retail 2 yuan price band.
In terms of specific tactics, such as how to design packaging for the retail 2 yuan price band, how to use promotional policies, how to motivate marketing personnel, and how to drive end-consumer demand, I will not elaborate here. I believe that bosses of small and medium enterprises have their own tricks.
**Source: FMCG Distributor Insider**
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