{"id":1665,"date":"2023-01-05T04:18:47","date_gmt":"2023-01-05T04:18:47","guid":{"rendered":"http:\/\/wanginnovation.com\/?post_type=portfolio&p=1665"},"modified":"2023-04-03T03:13:57","modified_gmt":"2023-04-03T03:13:57","slug":"%e4%bb%8a%e9%ba%a6%e9%83%8e%e6%96%b9%e4%be%bf%e9%9d%a2","status":"publish","type":"portfolio","link":"https:\/\/wanginnovation.com\/en\/portfolio\/%e4%bb%8a%e9%ba%a6%e9%83%8e%e6%96%b9%e4%be%bf%e9%9d%a2\/","title":{"rendered":"Jinmailang Instant Noodles"},"content":{"rendered":"
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Eight<\/h1>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Evolve<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
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Jinmailang Instant Noodles<\/h4>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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from innovating products to innovating system<\/h4>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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\u201cThe fittest not only means the strongest or the smartest, but also those who react the \nfastest to changes.\u201d<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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\u2014Charles Darwin<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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<\/div>Entropy is a concept in physics. The second law of thermodynamics, also known as \nthe law of increasing entropy, states that the entropy of a closed system with no \nexternal force acting on it will continue to increase. A closed system will gradually go \nfrom a state of in order to disorder, until it reaches maximum entropy (heat death).<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Illustration 8.1 The Increase Entropy Chart of Huawei Organization Management<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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<\/div>Ren Zhengfei has introduced the concept of \"entropy\" into the management of Huawei. \nHe points out that a roughly correct direction and an energetic organization are the two \nfundamental elements of the success of a company. Life thrives on negative entropy; \nand for a company, it must continue to evolve, keep entropy decreasing and avoid \nentropy increasing.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The Product Evolution of Jinmailang Instant Noodles<\/strong><\/h3>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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<\/div>In 2008, Uni-President instant noodles focused on the flavor of traditional jar pickled \ncabbage, and did an outstanding job in competing against Master Kong's braised beef noodles, becoming China's second best-selling instant noodles brand by 2013. Inpired \nby the success, Baixiang instant noodles, as the leading brand in economy segment, \nlaunched the premium Super Pork Bone instant noodles in 2012, hoping to replicate \nUni-President\u2019s success. Under the huge competitive pressures, Jinmailang's sales \nhad been declining year after year, dropping from No.2 to No.4 in terms of market \nshare. What\u2019s worse, Jinmailang had been losing money for three consecutive years by \n2013.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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<\/div>In 2014, we partnered with Jinmailang instant noodles in portfolio optimization and \nproduct innovation. Through the field trips, we found out that Jinmailang's economy \nbrand Jinye Ramem instant noodles contained 100 grams per pack, which was bigger \nand heavier than its main competitor \u2014 the 85 grams of Baixiang Super Pork Bone \ninstant noodles. Jinye Ramen had much better market performance than Baixiang in \ncertain regions. A mini store owner in Hebei expressed the selling point of Jinye Ramen \nas \u201cbigger and heavier and better value for money\u201d with the tagline of \u201c6 sachets \nbeating 7 sachets (of competitors\u2019)\u201d (in terms of weight). Enlightened by this insight, we \npersuaded Jinmailang to pioneer and embrace the era of big noodles with product \ninnovations. In the second half of 2014, Jin Ye Ramen was rebranded into Jumbo Jinye \nRamen and re-launched into the economy instant noodle segment with the official \nslogan \u201cJumbo noodles, six sachets beating 7 sachets (of competitors\u2019)\".<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Illustration 8.2 Jumbo Jinye Ramen<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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<\/div>The Jumbo Jinye Ramen was a huge success, gaining sales instantly. It surpassed the \nsame economy products of Baixiang at first and that of Master Kong followed in \ncertain regions. Jumbo Jinye Ramen also helped to uplift the overall sales of \nJinmailang instant noodles, achieving a successful turnaround in revenue in the same \nyear.<\/p>

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<\/div>The jumbo pack strategy was approved to be effective in economy segment. Would it \nbe effective as well in premium segment? It raised lots of debates internally. Most \npeople were quite conscious of that the jumbo pack in premium segment would not be \neffective in beating competitors. Instead, it might lead to internal cannibalization of \neconomy products. Without a conclusion after numerous rounds of discussion, we \ndecided to pilot in certain regions.<\/p>

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<\/div>In 2015, building on the success of Jumbo Jinye Ramen, Jinmailang introduced new \nbrands Yidaiban (1.5 sachets) and Yitongban (1.5 buckets), with 50% more noodles in \nweight than main competitors Master Kong and Uni-President at the selling price of 2.5 \nyuan and 4 yuan respectively. Yidaiban and Yitongban were launched in Southeast \nChina at first. They had remarkable market performance during the period of piloting \nsales, beating Uni-President and Master Kong respectively soon in the Three \nNortheastern Provinces (Liaoning, Heilongjiang and Jilin Provinces). Jinmailang \nexpanded Yidaiban and Yitongban to national wide following the success. From its \nlaunch in August 2015 to the end of 2016, Yidaiban and Yitongban kept growing very \nquickly, experiencing shortages during some time. They helped the company to grow and outperform the total instant noodles market which was declining back then. By \n2020, Yidaiban and Yitongban had sold over 5 billion servings with cumulative sales, \nturning into phenomenal brands in the industry. The main manufacturers, Baixiang, \nUni-Presient and Master Kong all rolled out their jumbo pack products.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Illustration 8.3 Yidaiban and Yitongban<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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Illustration 8.4 Yidaiban and Yitongban with a Cumulative Sales of 5 Billion Servings<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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<\/div>In 2020, we noticed the rapid growth of a new category \u2014 instant noodles with soup, \nwhich was well received thanks to its richness in nutrition, digestibility and delicious \ntaste. Instant noodles with soup draw many manufacturers to launch their dedicated \nbrands, such as Tangdaren (Soup Expert) from Uni-President, Tangdashi (Soup Master) \nfrom Master Kong and Tanghaohe (Tasty Soup) from Baixiang etc.. Following the \nstrategy of Yitongban and Yidaiban, Jinmailang unveiled new brand Datangmian \n(Jumbo Noodles with Soup) with a combination of its expertise in jumbo noodles and \nthe trendy element of soup, resulting a 1+1>2 effect. Datangmian appealed to \nconsumers with the idea of \u201cjumbo noodles with soup brings super happiness\u201d, quickly \njoining the 1 billion yuan brand club.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Illustration 8.5 Datangmian (Jumbo Noodles with Soup)<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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<\/div>From Jumbo Jinye Ramen, Yidaiban, Yitongban to Datangmian, over the past a few \nyears, Jinmailang kept evolving its jumbo noodles and maintained its competitiveness, \nresulting fast growth for a dozens of quarters in a roll and making Jinmailang Instant \nNoodles business approach 10 billion yuan revenues.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Innovation System Ensuring Organization Vitality<\/strong><\/h3>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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<\/div>Over the recent years, no matter beverage or instant noodles, Jinmailang had created \nmany popular brands. Behind the scene, the success can be attributed to not only its \nprogress in product development but also its evolution in innovation system.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Illustration 8.6 The Best Team in Positioning Research Institute<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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<\/div>In 2017, Jinmailang established a Positioning Research Institute in Beijing, leading by \nits chairman himself to focus on category innovation and brand positioning. It had only \na team of 10 members coming from its initial internal branding team. Nowadays, it had \na team of over 100 members with offices in Beijing, Hangzhou and Shenzhen etc.. The \ninstitute is composed of 8-9 competing teams, racing against each other for innovative \nproducts, high-quality products and best-selling products. Meanwhile, they are \ncompeting against external consultants. The innovation system of Team Red + Team \nBlue + consultants\/mercenaries safeguards the evolution of product innovation and the \nincreasingly strong competitiveness of Jinmailang.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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INNOVATION CASES<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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