b onif r eport 20061233 ahn jinyeong 20061227 park jaewoo 20061222 kim seonggyu
TRANSCRIPT
Bonif Report
20061233 Ahn Jinyeong20061227 Park Jaewoo
20061222 Kim SeongGyu
1. About BONIF (1) Company Overview (2) Economic Performance Analysis2. Strategic Management of Innovation (1) Source of Innovation - Inverse Thinking - Society Change - Global Issue - Change in Perception
(2) Types of Innovation (3) Timing of Entry (4) Core Competencies (5) Collaboration3. Business Analysis (1) SWOT Analysis (2) TOWS Analysis (3) BCG Matrix (4) 5 Forces Model
Contents
PartⅠ. About Bonif
PartⅡ. Strategic Management of Innovation
PartⅢ. Business Analysis
Intro
Company name : BONIFFoundation date : Sep, 2002Company volume : In 2010FYSales - 90 million dollarsAssets – 27.8 million dol-larsEmployees : 178 persons
Launched 1st store
Opened 100th store
Incorporated Bonjuk International Franchise Co., Ltd
Opened 500th store, Received the Annual Korean Franchise Business Award
Received the Best Korean Brand Award
Received the Grand Prize from the Korean Ministry of Industry
Opened store at ICN (Inchon International Airport)
Surpassed the 1,000th store milestone
2002
2003
2004
2005
2006
2007
2008
2009
Intro2010
Bon Dosirak startsWell Being Best AwardPresidential Award
2011
Strategic AlliancesYonsei Hospital JungGwanjang Ginseng
Surpass 100 billon won (100 million dollars) sales
2010
Bonjuk opened the first branch in Dae-hak road of Seoul in 2002, and has opened more than 1,000 branches as of 2009. Bonjuk has not only increasingly rate of opening new branch, but also very low closing rate.
The calligraphy character “bon” (本 ) comes from an image of a tree with firmly planted roots, signifying “principle.” At Bonjuk, ‘principle” means that we make no compromise on nutri-tion, taste, and quality of the food we serve, and observe the high-est standards we set. It also refers to the traditional brand cate-gories, such as the salad on rice (Bibimbap), rice porridge (Juk), and noodle (Guksu), all of which are representative health foods of Ko-rean cuisine.
Opening 5000 stores around the world by 2015 is our goal at Bonjuk. Coincidentally, the Korean gov-ernment is actively promoting Korean culture and food in the global market as its top priority agenda in 2009, perceiving it as the next – and a much larger - source of long-term economic growth to succeed the automobile and IT industry that brought Korea to its current international status.
PartⅠ. About Bonif
PartⅡ. Strategic Management of Innovation
PartⅢ. Business Analysis
(1) Source of Innovation – Inverse Thinking(1/10)
What food is good for people’s health?(In 2002)
It is food people eat when they ill
CEO, Kim Chul ho
Inverse Think-ing
(1) Source of Innovation – Inverse Thinking(2/10)
Past
Juk was used to be only “The diets for patients” in a hos-pital
(1) Source of Innovation – Inverse Thinking(3/10)
NowBonjuk changed juk’s images from “Diets for patients” to“Healtier food prod-ucts”
(1) Source of Innovation – Society Change(4/10)
According to the survey on the people’s awareness of Hanryu, korean wave, foreigners are more interested in korean foods than in the past. This means that korean foods can be exported to other countries
(1) Source of Innovation – Society Change(5/10)
Interest in healthy food is rising along with the expansion of the well-being trend.
Organic farming has been one of the fastest growing segments of U.S. agriculture for over two decades. Organic food sales have been growing at 20% per year since 1990, increasing from $1 bil-lion to $24.6 billions.
Bonjuk catched these trends earlier than other food companies Bonjuk catched these trends earlier than other food companies
(1) Source of Innovation – Global Issue(6/10)
Overweight rates are the highest in the United States and Mexico and the lowest in Japan and Korea, but have been growing virtually everywhere. This means there will be seri-ous healthy problems in worldwide.
(1) Source of Innovation – Global Issue(7/10)
Obesity has risen to the big issue of the public health policy worldwide. Be-fore 1980, the obesity rate was generally below 10%. However, it has in-creased rapidly in many countries, and more than 50% of the people in the half of the OECD countries are overweight. A key risk factor for numerous chronic diseases, obesity is a major public health concern.
(1) Source of Innovation – Change in Perception(8/10)
Slow food is an alternative to fast food, it strives to preserve traditional and regional cuisine and encourages farming of plants, seeds and livestock characteristic of the local ecosystem.
Fast food such as hamburg-ers and fries is very popular all over the world. It is popu-lar for customer to spend less costs and time
(1) Source of Innovation(9/10)
Inverse Thinking11
Society Change22
•The sales of organic food is increasing
•Korean food is interesting to foreigners
“These Sources lead innovation to Bonjuk”
Global Issue33
•Overweight rate is increasing
•Obesity has risen to the top issue of the public health policy agenda
(1) Source of Innovation(10/10)
Change in Perception44
“These Sources lead innovation to Bonjuk”
(2) Types of Innovation(1/2)
PRODUCT
BONIF rediscovered juk which could bring outstand-ing taste to the customers
PROCESS
BONIF introduced CK and de-livery system
(2) Types of Innovation(2/2)
RADICAL
Bonjuk is the first franchise to rediscover juk as the
healthful and delicious food
COMPETENCE-ENHANCING
New product such as ‘Ginseng Juk’ and ‘Abalone Juk’ uses Bon-
juk’s existing knowledge
(3) Timing of Entry(First Mover)
Brand Loyalty
• Launch first store in 2002 (‘ 죽이야기’ opened in 2003)• Achieve 75% market share
Reaping increasing returns
• Increase in sales about 30% annually
• Launch new franchise stores rapidlly
Market share
Bonjuk
죽이야기맛깔참죽현죽
(4) Core Competencies(1/2)
CK system
- Provide a variety of side dishes
- Prevent being sick of eating same side dish
- Limit in each franchise store to offer new and various side dishes
Introduce Central KitchenIntroduce Central Kitchen
(4) Core Competencies(2/2)
Convenient lunch box
- Provide delivery service instead of take-out system
- Focus on customers’ needs and make diverse lunch box
Increase revenue more than 3 timesIncrease revenue more than 3 times
More than 30% of the can-cer is related with nutrition
Distribution channel
• Develop recipe, preprocessing & cooking method and processed food
• Distribute the food using 1200 stores all over the country
Medical advice
• Participate in the process of choosing material and menu according to the result of clinical trials
• Provide advice in respect of nutrition
MOU
(5) Collaboration Strategy(1/2)
Distribution channel
• Develop recipe, preprocessing & cooking method and processed food
• Distribute the food using 1200 stores all over the country
• Advertise the ginseng juk
Diversification
• Diversify ginseng product
• Provide ginseng and advice about the manufacturing
MOU
Diversify their product
(5) Collaboration Strategy(2/2)
PartⅠ. About Bonif
PartⅡ. Strategic Management of Innovation
PartⅢ. Business Analysis
(1) SWOT Analysis
SWOT
Strength Weakness
ThreatsOpportunities
• Brand power of market no.1
• Well-being and healthful korean food
• Distribution and data processing system
• Dependency on parent brand ‘Bon-juk’
• Low recognition of Bonif
• Government’s interest in globaliza-tion of traditional food
• Trend in growth of well-being mar-ket
• Low entry barriers
• Difficulty in managing franchise stores because of increase of stores
• Possibility of health control scandal
(2) TOWS Analysis
TOWS
S-O (Offensive) (Risk Aversion) S-T
(Turn-around) W-TW-O (Defensive)
• Enter the global market using ko-rean food
• Marketing enforcing well-being im-age
• Expand range of business (‘Bibim-bab’, ‘Guksu’)
• Make star menu and brand image as no.1
• Optimize data processing and dis-tribution system
• Move the store to the core business area
• Reinforcing the competitiveness of bibimbab and launching the dosirak brand successfully
• Branding the Bonif company
• Complete franchise system
• Diversify the company to grow bibimbab, guksu and dosirak busi-ness
• Construct the best health control system
Star Question Mark
Cash Cow Dog
High
Low
Mark
et
Gro
wth
High Middle Low
Market Share
It has largest market share and its market has great potential to grow
(3) BCG Matrix
Position of Bon on BCG Matrix : StarPosition of Bon on BCG Matrix : Star
34
New entrant
Suppliers
Buyers
Substitutes
(4) 5 Forces Model
• BonIF has not only offline stores but also online shopping mall.
Instant food
IndustryCompetitors