International business opportunity of sriracha in south korean

Introductionabout Huy Fong's food and Sriracha Chillies 2.. International Business opportunity of Sriracha in South Korea... "To make arich man's sauce, at a poor man's price." - David T

Business

S r i r a c h a

in South Korea

Opportunity of

1 Introduction

about Huy Fong's

food and Sriracha

Chillies

2 Identify and analysis Korea

market

3 International

Business opportunity of Sriracha in South

Korea

Introduction about Huy

Fong's food and Sriracha

Chillies

"To make a

rich man's

sauce,

at a poor

man's

price."

- David Tran

Huy Fong Foods quote

Products Line

The company’s

production line includes 3

main products: Sriracha

Hot sauce, Sambal oelek

and Chili garlic sauces Huy

Fong Foods

High quality and unique

products with iconic

packaging

02

The bigger and bigger Sriracha lover community

03

Short on supply because of only using fresh chillies

04

Downside of not spending

on marketing

05

IP problems

Samyang Buldak

(불닭소스)

Chung Jung One Sunchang Gochujang ChoGochujang

watch out!

Korean

market

Identify

and

the

Korean

Koreans are famous for

Large amount of chili sauce products

distinctive culture - Mapbusim their spicy cuisine

market size

Scale related to chili sauce market share

Statistics show that in

2022, revenue in the

“Sauces & Condiments

segment” (including

Chili sauce) amounts

to USD 5.12 billions

Volume in the “Sauces

& Condiments segment” is expected

to amount to 1,741.0mkg by 2027

Convenience stores such as 7-Eleven or in large commercial centers such as Lotte Department, Coex Mall, Coupang, Gmarket,

Politica l Social

analysis

Legal Environment

Business

opportunity

opportunity

South Korea

in

Trade fair (Exhibition Seoul Food by KOTRA)

Distinct flavor, culture (red colour), Mapbusim

Lower cost production, Free Economics Zones

KORUS FTA, USKTA, WTO

Competitors with large market share and familiarity (Gochujang)

Exchange rate, higher price, unsuitable marketing strategy

Unfamiliar weather Time perception, power distance

Potential

Customers

Adjustmen en tt

Adjustment and recommendation

CHALLENGE

for Sr iracha 1.

Not many customers in the Korean domestic market know about Sriracha chili sauce

2.

Sriracha sauce is perfect for use in Korea, perfect as an all-in-one condiment But not

in Korean food

3.

The level of recognition of Korean chili sauce is too large and the quality and taste

of chili sauce in Korea and Sriracha are similar

Adjusting in

price

Adjusting in

place

Adjusting in promotion for the first challenge

The goal of concentric diversification is to

leverage the company’s existing competencies and resources to enter new

markets and grow its business.

CONCENTRIC

DIVERSIFICATION

STRATEGY

challenge

The End

“Hot sauce must be hot If you don't like it hot, use less.”