Instant Noodles free essay sample

Even though Tingyi increased its selling price in April 2011 by RMB0. 50 per pack (average of 15%) to offset rising costs, Chinese consumers are incredibly loyal to Master Kong’s products largely because of the company’s brand awareness and market penetration. Therefore, Tingyi has no fear of losing market share especially since its competitors also have to increase selling prices under the stress of rising costs. Consequently, in line with China’s rising CPI, unit prices for instant noodles increased by 11% in 2010 and 9% in 2011. Master Kong, betting on China`s continually rising prosperity, aims to turn out more mid- and high-end instant noodles instead of bottom-end ones. Tingyi launched 12 new flavors (including â€Å"Northeast Stew,† â€Å"Da Lu Xiang Yan,† â€Å"Jiangnan Delicacy,† â€Å"Local Grills† and â€Å"Chen Pao Feng Yun†) last year in order to appeal to consumers’ regional preferences. Furthermore, Tingyi has focused on promoting its auxiliary brand, Shimianbafan, under the fried noodles category. We will write a custom essay sample on Instant Noodles or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page In addition, the current health trend has spread to China and offers great potential for Tingyi. As a result, Tingyi may consider developing healthier alternatives including non-fried noodles, rice noodles, and noodles with roughage grains. Tingyi’s’s â€Å"soup noodle – soup based vermicelli† product has become the fastest growth vermicelli brand where Tingyi is trying to target pink-collar workers in the city. With ever-changing consumer demands in China, Tingyi is continuing to increase results and market shares through structural adjustments of its products.