[Heatwave Economics] This Summer's 'Bibimmyeon, Naengmyeon, Beer, Bingsu' Sell Record High... Rampant 'Targeted Marketing'

Record-Breaking Heat This Summer... Best-Selling Bibim-myeon and Naengmyeon Get Hotter
Top Brand Targets Marketing... Expecting Record Sales Volume

[Asia Economy Reporter Lee Seon-ae] Sweet and sour bibim noodles to captivate appetites tired from the heat, refreshing cold noodles and shaved ice to cool you down, and refreshing beer to quench burning thirst. As this summer brings an 'unprecedented heatwave,' the busiest places are undoubtedly the food and beverage industries. Companies are driving innovative marketing strategies to achieve 'record-breaking sales' targeting the peak summer season.

◆The hot and cool noodle war... "Targeting the No.1 brand"= "Are all bibim noodles the same?", "Bibim noodles are mixed with thin noodles?" These are the questions posed by Jung Hyuk, the model for Nongshim's 'Kal Bibim Noodles' in their commercial. This is a direct challenge to Paldo's 'Paldo Bibim Noodles,' the No.1 brand in bibim noodles. Ottogi is doing the same. Baek Jong-won, the model for Ottogi's 'Jin Bibim Noodles,' boldly says, "You think all bibim noodles are the same? Then you should just eat what you were eating."

Since its launch in 1984, Paldo Bibim Noodles has held an overwhelming market share in the summer bibim noodle market, prompting competitors to sharpen their knives. To actively leverage the heatwave as a stepping stone for record sales, they have launched ingenious targeted marketing campaigns. It seems to have worked in the market. Jin Bibim Noodles sold 20 million units within two months of launch, recording a faster sales pace than past hit products like Ottogi's 'Jin Jjambbong.' Kal Bibim Noodles also sold 5 million units within a month. The limited edition 5,000 sets of Kal Bibim Noodles launched on the open market 11st in April sold out within six hours.

Although competitors' products are selling like hotcakes, Paldo Bibim Noodles remains relaxed as if the heatwave special is theirs alone. Paldo Bibim Noodles model Park Eun-bin lightly responded to competitors' targeted marketing by saying, "Worrying about bibim noodles is crossing the line." According to Paldo, sales of Paldo Bibim Noodles from January to May this year increased by 25% compared to the same period last year. The cumulative sales during this period reached 85 million units. Considering last year's annual sales were around 115 million units, this year's growth trend is analyzed to be even steeper. Of course, the secret to this steep growth is the heatwave. Paldo expects the annual sales record of Paldo Bibim Noodles, which has shown growth every year with 95 million units in 2017 and 100 million units in 2018, to be newly broken this year.

New products that could threaten Paldo Bibim Noodles continue to emerge. Samyang Foods, popular for Buldak Bokkeum Myun (Hot Chicken Flavor Ramen), is targeting the bibim noodle market this year by launching three different products: 'Challenge! Buldak Bibim Noodles,' 'Burning Chili Bibim Noodles,' and 'Young Radish Bibim Noodles.' Pulmuone released 'Big Chunk One Bowl Kalguksu Bibim Noodles,' a bibim kalguksu product mixed with crunchy vegetables and chewy fresh noodles in sauce.

As hot as the bibim noodle market is the cold noodle market. The higher the average temperature, the more cold noodles are sold. This has already been proven by past sales. In 2018, when the number of days with heatwaves above 33 degrees Celsius reached 31.4 days, the refrigerated cold noodle market size was about 51 billion KRW. However, in 2019, when the heatwave days were relatively fewer at 13.3 days, the refrigerated cold noodle market size was only 43.4 billion KRW.

Judging from the correlation between cold noodle sales and temperature, companies expect the market size to grow by about 20% this year and have entered a fierce competition. CJ CheilJedang revived its discontinued noodle brand 'Jeil Jemyunso' last year. Due to customer requests, this year they reintroduced 'Jeil Jemyunso Busan Milmyeon' and 'Jeil Jemyunso Sokcho Kodari Naengmyeon.'

The ambient temperature cold noodle market, born when Nongshim launched 'Dunji Naengmyeon' in 2008, is also expected to see heated competition with Pulmuone joining in. To catch up with Nongshim, Pulmuone applied its long-standing noodle-making know-how and unique 'Three-layer Noodle Making Method' to its products. To differentiate the noodles, the thickness of the noodles for mul naengmyeon (cold broth noodles) and bibim naengmyeon (spicy mixed noodles) was made different.

◆Beer heated up by the Terra craze... 500 billion KRW shaved ice war= This year's beer market competition is expected to be fiercer than ever. The craze for HiteJinro's beer 'Terra' is so intense that new words like 'Tesla (Terra + Chamisul)' and 'Taejina (Terra + Jinro Is Back)' have emerged. As of the end of May (438 days since launch), Terra has sold 860 million bottles, which means 22.7 bottles (330ml) per second. HiteJinro aims for a 40% market share in the beer market this year.

Stimulated by Terra's momentum, OB Beer is actively marketing to defend the throne of No.1 'Cass.' Since selecting CEO Baek Jong-won as its model in March, Cass has launched marketing campaigns utilizing Baek's expertise in beer and food. Especially, the advertisement featuring Baek includes narration saying, "Until the day we clash thrillingly again, Cheer Up!" delivering a message of hope and encouragement to consumers weary from COVID-19, gaining consumer favor.

Lotte Chilsung Beverage has also prepared to penetrate the fierce competition between OB Beer and HiteJinro. Recently, Lotte Chilsung launched 'Cloud Draft,' targeting the summer beer market. This product is an all-malt beer made with 100% malt, maintaining the authenticity of the existing 'Cloud' while offering a fresh taste and sparkling refreshment as if it were draft beer. It has price competitiveness with a lower wholesale price of 1,047 KRW (based on 500ml bottle) compared to other beers sold domestically. Another feature is the introduction of a 330ml sleek can instead of the existing stubby can (355ml). Emphasizing the grip and portability of the sleek can, it plans to target home drinkers.

After beer, the most sought-after product in the sweltering heat is shaved ice. With the heatwave starting in June, shaved ice sales are also booming. The shaved ice market, which grew from 300 billion KRW in 2018 to 400 billion KRW last year, is expected by the industry to reach 500 billion KRW this year due to the heatwave special. Accordingly, various shaved ice products are flooding the market. Especially this year, the trend is single-serving shaved ice due to the impact of COVID-19. Coffee franchises such as Angel-in-us, Dalkom, and The Venti have consecutively launched single-serving shaved ice in mug cup sizes. An industry insider explained, "Due to the impact of COVID-19, dining etiquette has become important, and the release of various single-serving shaved ice that can be enjoyed alone is flooding the market."

This content was produced with the assistance of AI translation services.