Master Kong production(康师傅的产品分析) 英文版

Presentation of production —Master KongMade by Team A, VG1, NHBSDate: April,20th,2012

Members: Andrea, Julie, Lily, Albert, Sandy, Edu, Puito, Abby, Judith, Laura

We are going to tell you four parts:1.Introduction 1.1 The development of the products 1.2 Information about the products 2. Information about production 2.1 Production site 2.2 Production transportation 2.3 Raw materials 2.4 Factory equipment 2.5 Supporting product 2.6 Order processing 3. Risks and pressures 3.1 Liquidity risk 3.2 Trade risks 3.3 Quality safety risks 3.4 Pressures 4. About the future

1.Introduction1.1 The development of the productsTime 1992 1995 1996 1997 2004 2006 Events The first Master Kong instant noodles was produced. The company began the bakery & confectionary and beverage business. DICOS was acquired. The business group of instant noodles, bakery & confectionary and beverage established. The mineral water was introduced for the first time. Master Kong Chef’s Table was founded.

belongs to Ting Hsin International Group. valued $1.066 billion by the end of the year 2011

1.Introduction1.2 Information about the productsproduct Features Market price Age of major goal consumers 15-35

Instant noodles: primary business Instant noodles ￥1.5--4.5 Convenient, timemoresaving 30 series and 110 kinds of products than Convientfruity Juice 12-40 ￥2.5--3.0 Natural and Teenagers featured by the Beef Stew Soup Noodle (红烧牛肉面) nutritiveteenagers ￥2.5--2.7 Full of trace Time-saving elements Middle-age Tea drinks 18-30 ￥2.5--3.0 Unique taste low Cheap The first non-fried instant noodles —Master Kong Yinsimian sugar and healthy. Healthy (康师傅银丝面). Mineral water for all people ￥1 Supplement moisture and trace Tea drinks elements Unique Urbanites Sweet and sour Unique formula, higher than the 22-29 years old original drinks plum juice (酸梅汤) natural and healthy urban men Strategic alliance with Pepsi (百事可乐) Inc. on 29th women and March, Female 2012 and cookies Unique taste and Cake ￥2.5-4.0 1.female(15-25) Nutritive healthy 2.teenagers(815)&Partial female Product list (26-35) Energy drinks

2. Information about production2.1 Production site Instant Noodles Impression Gallery Why?1. Loose investment policy envireonment. 2. Convenient transportation system 3. Cheap labor resources in the mainland; 4. Quick access to modern communications, coal, electricity and heating energy.

40 production sites,which are divided into seven major regions in China, by the end of the year of 2010.

2. Information about production2.2 Production transportation Dingfeng Co. Some problems in their logistics (物流) system.For example, the outlets of DICO are out of stock frequently.

Some reasons for the logistic problems:a. Unreasonable transportation b. Without considering costs factors. c. No strict and good managed distribution team.

2. Information about production

2.3 Raw materials Choose outside raw materials suppliers. Core recipe (核心秘方) Partner: ITOCHU(日本伊藤忠商事)

:

Offer a trade platform

2. Information about production2.4 Factory equipment

All the equipment is owned by themselves.

Good equipment management system.If the production machines breakdown, it must be repaired well within 7 hours.

2. Information about production2.5 Supporting product Troubles in ordering cups at the beginning.

Now, it has its own supporting products companies:fox, carton(纸箱), PSP cup, printing & packaging and physical distribution (物流).

2.6 Order processing Every factory will receive order forms in their systems, after Sales Department has made the selling plan.

3. Risks and pressures3.1 Liquidity risk

Apply to supply chain finance, use the “1+3” model

…don't haven enough cash flows to buy the raw materials.

3. Risks and pressures3.2 Trade risks about the raw materials purchasing.

methods to control the risks: a. Set up a raw material risk management system. b. The same raw materials must have two or more vendors. c. Establish a warning system of the raw materials stock to ensure the sufficient supply.

3. Risks and pressures3.3 Quality safety risks about the products produced. Customer impression

establishes the food safety risk early warning mechanism and all products have to go through 165 checks.

Tea drinks production’s example. requirement of the tea purchasers. evaluate the process check raw materials set up a Food Safety Research Department which is an independent gent.

3. Risks and pressures3.4 Pressures There are some pressures for the Master Kong to survive in the market. a. Increasing price of raw materials due to the inflation. b. Higher transportation costs thanks to the increase of oil price. c. Fierce competition.

4. About the future Yingzhou Wei, the CEO of Tianjin DingYi International Food Co., predicted that the number of instant noodles per person on year will rise from 30 to 60 in the next 20 years. the tea drinks consumption will be enlarged in China market. DICOS should surpass one of the two leading fast food companies—KFC or McDonald 5 years later.

Thank you!

^.^By Team A, VG 1, NHBS. Date: April, 20th,2012

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