[Korean Global Awards] Dae Sang Leads Korean Food Wave[글로벌경영대상]

Dae Sang

Even if you’re only vaguely interested in Asian culture, you’re probably aware of the global impact of known as the “Korean Wave” Korean pop culture today, Girls’ Generation, one of the most popular Korean girl groups, has graced the front page of the Los Angeles Times; has appeared in TV shows in Japan; performed in concerts in Thailand, at Honda Center in Anaheim, and record shops in France.

Many Korean entrepreneurs are constantly trying to see how they can use different opportunities in marketing. Dae Sang suggests using “Korean wave” as a marketing tool.

Dae Sang is one of the biggest food companies in Korea. Their products range from soy sauce to kimchi. Its export revenue amounted to $350 million in 2011.

A main driving force behind such an explosive growth is the huge popularity of Hong Cho, drinkable red vinegar. In 2010, sales of Hong Cho sat at $115,000, but in 2011, it soared to $48 million, an increase of 3,570 percent.

Kara, the most popular Korean girl group in Japan, made a major contribution to the skyrocketing sales. The Hong Cho commercial featuring Kara first aired in July 2011. The sales in the second half of 2011 reached $46 million. But that doesn’t mean Kara has been solely responsible for Hong Cho’s success.

One of the critical factors was product positioning. Before Hong Cho was introduced to Japan, Japanese saw drinkable vinegar as healthy food usually consumed by the older population. Dae Sang positioned Hong Cho as a beauty product for younger generations. The positioning of the product and having Kara endorse it had a powerful synergy effect. Hong Cho was named as one of the ‘best products in 2011’ by Nikkei Trendy, a popular weekly magazine in Japan.

After the marketing strategy for Hong Cho turned out to be a huge success in the international market, Dae Sang has been preparing for further expansion. Hong Cho will be available in Thailand, Iran, Britain, and Russia starting in the summer of 2012. Dae Sang is also discussing the placement of Hong Cho with Whole Foods Market.

Dae Sang is very confident about the success of Korean food in the global market because of its international experience. Combining Korean food with the Korean wave is another useful tool for Korean food companies, too. In the future, the growing popularity of Korean popular culture will help to globalize all aspects of the Korean culture . And Dae Sang will play a major role in the Korean Food Wave.