Formosa
Chang is a homegrown Taiwanese brand with humble beginning. They serviced blue
collar workers as a roadside stall selling cheap and good food. Braised meat
rice, a simple meal-in-a-bowl that promises to fill the stomach, is Formosa
Chang’s star product. Mr Chang revealed that the texture of the meat in the
famous braised meat rice is so good because they only use the best cuts, which
inevitably, will cost more.
It
was reported that food cost in Taiwan rose by 28% last year. (http://www.chinanews.com/tw/2014/03-04/5905475.shtml) Formosa Chang would have faced the same
pressure. Mr Chang, the CEO of Formosa Chang, has an uncompromising attitude
towards quality, passed on from his father. Facing the challenge of rising food
cost, I observe that Mr Chang strategically target the tourist market. The
strategy seems simple: Product mix to include products with lower COGS,
Branding to appeal to tourists who have more spending power. Maintain the price
of signature products with minimal adjustments to retain loyal customers.
How
did Formosa Chang Pursue Tourists?
Ending Thoughts:
What is the next steps for Formosa Chang?
Perhaps taking inspiration from Vigor Kobo : Building Taiwan Tourism is the Road to Building Vigor Kobo.
Or in the words of Mr Chang himself : Cultivating Partnerships with Competitors; Creating Alliances with Industries.
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