Ajisen Ramen market research in China

SCHOOL OF COMMUNICATION
UNIVERSITI SAINS MALAYSIA

YSP524 IMC Capstone Professional Project
Semester 2, Academic Session 2021/2022

Title：Ajisen Ramen market research in China

Supervisor: Dr. Nurzali
Second Reader : Dr. Nuratikah

Name Matrics No.
Li Xiao P-KOM0133/21

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catalogue
1. Company pr ofile......................................................................................................... 27
2. Ther e ar e pr oblems.....................................................................................................29

2.1 High development cost of stores.........................................................................29
2.2 Low product research and development capability............................................ 29
2.3 Low marketing ability.........................................................................................29
2.4 Low service level................................................................................................ 30
3. Str ategic analysis and selection................................................................................. 30
4. Str ategic choice of Aisen Ramen............................................................................... 33
4.1 Basic competitive strategy.................................................................................. 34
4.2 Cost-leading strategy.......................................................................................... 34
4.3 Differentiation strategy....................................................................................... 34
4.4 Focus strategy..................................................................................................... 34
5. Str ategic implementation........................................................................................... 35
5.1 The Central Kitchen Strategy............................................................................. 35
5.2 Standardization strategy......................................................................................36
5.3 Chain operation strategy..................................................................................... 36
5.4 Product research and development strategy........................................................37
5.5 Diversified brand promotion channel and media strategy.................................. 37
6. Schedule and budget...................................................................................................41
7. Conclusion................................................................................................................... 41

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executive summary
Enterprise strategy is an overall decision made by an enterprise in order to adapt

to the future development and changes and to seek long-term survival and
development. There is no doubt that enterprise strategy is of great significance to the
company. Long-term development strategic planning can promote enterprises to think,
help enterprises to understand the macro economy and market background, and timely
adjustment measures. In order to survive in the complex market environment and
develop and grow in the process of drastic changes, enterprises need to have a correct
understanding of the components of the enterprise itself, and have the corresponding
ability to adapt to the environment, which is the problem to be solved by the
enterprise strategy.

The case object selected in this paper is Viisen Ramen, a Chinese fast food
enterprise that only opened its first store in 1996 and has developed into one of the
largest fast food enterprises in China in just over a dozen years. What makes Viisen
Ramen stand out in the fierce market competition?Through the analysis of the
problem of Aisen ramen, targeted measures are put forward to promote Aisen ramen
to occupy the market quickly.

1. Company profile
Ajisen ramen brand was founded in Kumamoto region, Kyushu Island, Japan,

which is only a regional ramen brand in Japan. After entering China in 1996, it has

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become a well-known fast food chain brand in China for only more than ten years.

Because noodle products have a long history in China, Aisen ramen has become a

model of Chinese fast food operation in the industry. In March 2007, Weisen Ramen

[Weisen (China) Holding Co., Ltd.] was listed on the main board of the Hong Kong

Stock Exchange, becoming the first largest fast food chain enterprise listed in Hong

Kong and with the mainland as its main business base. By the end of 2021, Vijisen

Ramen has a store network of commercial locations in 120 major cities in China, with

669 branches in Shanghai, Hong Kong, Beijing, Shenzhen, Guangzhou, Hangzhou,

Nanjing, Fuzhou, Dalian, Chengdu, Wuhan and other regions. In 2020, the turnover of

Vijisen Ramen reached HK $3.32 billion, up about 2.5% from the RMB 3.24 billion

yuan in 2019; and the gross profit reached HK $2.29 billion, an increase of about 5%

from 2019. In the past six years, the main financial data of isen Ramen are shown as

follows:

In 2016, In 2017, In 2018, In 2019, In 2020, In 2021,
Turnover (HK $ one1, 985, 700 2, 680, 500 3, 074, 978 3, 043,162 3, 240, 650 3, 320,

tGhroousssapnrdodfiotl(lHarKs) $ 1, 384, 900 1, 854, 200 2, 083, 706 2, 021, 730 2, 183, 557 229, 2292,

one thousand dollars) 903
Profit before tax (HK 434,100 622, 200 516, 064 236,488 370,177 41& 770

$Tootnael thonuusamnbder of398 508 662 661 636 669

Treosttaaluraanstsse(tss) (HK $2786. 0 3474. 8 3832. 2 3607. 6 4042. 6 4160. 5
one million yuan) 36.4 36.2 31.4 40.4 39.1
Inventory cycle (day) 33.9

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Accounts payable60.3 66.7 59.9 50.3 44.8 49.6

week number (day) 69. 7% 69. 2% 67. 8% 66. 4% 67. 4% 69. 1%
gross profit rate 15. 8% 16. 7% 11.4% 5.1% 8. 4% 8 ・ 3%
net profit ratio

-One turnover (HK $ one thousand yuan"

-■-gross margin (HK k thousand)

* Profit before tax (HK $ one thousand dollars)

Source: According to the annual report of isen Ramen

As can be seen from the above data that from 2016 to 2021, the turnover, gross
profit and pre-tax profit generally maintained a high growth rate, but in 2012, due to
the impact of "bone men" incident, its business conditions received a relatively large
impact; it has achieved a steady recovery in the past two years. In terms of the number
of chain restaurants, the pace of new isen ramen stores has slowed significantly since
2011. In addition, although isen Ramen has maintained a high gross margin, its net
interest rate continues to fall, reflecting the rising trend of fixed costs such as housing
rent and personnel compensation in the catering industry in recent years.
The main operating indicators of the ramen from 2017 to 2021 are as follows:

In 2016, In 2017, In 2018, In 2019, In 2020, In 2021,
Ping efficiency (RMB / daily / m45.0 50.0 45.2 39.5 41. 2 41.6
Per capita consumption (RMB36.0 38.3 40.6 40.0 42. 3 43.4
Table turnover rate (daily / time) 5. 1 5. 1 4.0 3.3 3.4 3.4

Source: The author according to the annual report of isen ramen
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It can be seen that the per capita consumption of consumers in Viisen ramen is
basically the same with the growth of inflation, and due to the decline of the turnover
rate of the dining table, the flat effect of Viisen ramen has also declined to a certain
extent.

In recent years, Aisen Ramen has continued to sort out and adjust existing stores,
closing stores with poor performance and reducing large fronts. In 2021, Aisen
Ramen opened 76 new stores and 44 stores in mainland China. At the same time, the
newly opened stores are mainly less than 150 square meters of small stores, in order
to improve the ping efficiency, the layout is still dominated by big cities. In terms of
labor costs, Vijisen Ramen has been increasing the proportion of part-time employees,
and has introduced a fully automatic noodle production line from Japan to reduce the
rising labor costs. In terms of raw materials, Wejisen ramen has increased its
procurement efforts, among which pork, chicken and seafood have been 100%
directly purchased. In terms of marketing and publicity, isen Ramen hired Pukhai
Town of South Korea as its brand spokesperson, and put advertisements on websites
and subway stations to make younger its brand image. In 2015, isen Ramen plans to
open about 100 new stores, focusing on the development of food delivery business,
promoting 020 projects and mobile payment projects. In general, since 1996, after
more than ten years of rapid development, isen ramen has entered a relatively stable
development stage since 2010.

2. Existing problem

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The concept of core competence appears for the same reason as the view based on
enterprise resources, both arising from the attention of people's lasting competitive
advantage. In the practice of strategic management, more and more enterprises regard
cultivating the core ability as the core of the whole strategy. Core ability is a
comprehensive ability, which is not only a synthesis of multiple technologies, or a
synthesis of absorption, innovation and integration ability, but also a synthesis of
cross-department and cross-organization work activities.Analysis of core capabilities
can quickly identify enterprise weaknesses.
2.1 High development cost of stores

For the catering service industry, the development and location of the stores is the
front work, and the success of the location has an important impact on both the new
store operation and the company's profit. In addition, opening multiple branches in the
same city can form a synergistic effect, which is conducive to brand establishment
and cost control, so it is particularly important for the choice of goals to enter the city.
Ajisen Ramen is a high-end fast food brand. Most of the restaurants are close to busy
shopping districts, major shopping malls, residential housing estates, tourist
attractions and office buildings. These property rent is more expensive, the decoration
standard is high, the early investment in the wood is relatively large.
isen Ramen has formed a systematic and scientific demonstration and method system
for store development site selection; and has perfect operation guidelines for city and
business district division, site selection determination process, evaluation norms and
decoration design standards, which is of great significance to the rapid expansion of

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stores. Of course, over the years, it is also indispensable that a small number of very
unfavorable store revenue cannot improve, or even continues to lose money. isen
Ramen solves the problem by closing stores and other ways and also pays a certain
cost and price.
2.2 Low product research and development capability

The most basic products of fast food and catering industry are dishes. For high-end
fast food enterprises such as Wejisen Ramen, consumers not only require a good taste
of dishes, but also have high requirements for the richness, nutrition and renewal of
dishes.
In addition to ramen, a popular product, the product innovation level of Vijisen
Ramen has always been a leader in the industry. The company has set up a special
product research and development team, and has formed a relatively perfect process
and system in product research and development. On the basis of retaining and
improving its own product style, isen Ramen will actively innovate products
according to the analysis and prediction of consumer preferences and market trends of
target customer groups, and update or increase products by about 20% every year.
However, due to the large number of restaurants, the large scale and the standard
problem of Chinese fast food products are very difficult to solve, the product category
of Flavorisen Ramen is still relatively single.
2.3 Low marketing ability

Through effective marketing strategies and actions, companies can effectively
convey product information to consumers, improve brand awareness and recognition,

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and highlight brand differentiation advantages. With the company's expansion
strategy and product innovation process to implement active marketing activities, will
effectively help the company to seize market share in the rapidly developing market.
Viisen Ramen has a relatively mature marketing strategy for new restaurant opening,
new product promotion, and according to holiday promotion. In 2014, isen Ramen
hired Park as the brand spokesperson for the first time, and put advertisements on
websites and subway stations, striving to younger its brand image, and achieved good
market feedback.However, according to the sample survey, many consumers still
question the marketing ability of Aisen ramen, believing that poor marketing ability is
an important reason for the decline of jisen ramen turnover.
2.4 Low service level

The cultural quality of the catering industry is generally not high, and the
high-quality and highly skilled service personnel have been in short supply. As isen
Ramen enters the stage of rapid expansion, the demand for grassroots employees in
stores is expanding rapidly. However, the recruitment speed of new employees is
often not enough to catch up with the opening speed of new stores. New employees
need to work soon if they do not have enough time to receive training as soon as
possible, and those who have received some training and have slightly more mature
experience and skills are difficult to retain. Simply expanding recruitment channels
will lead to higher training costs and recruitment costs, as well as lower service
quality, so it is particularly important to motivate and train employees.
In terms of employee incentive, Viisen Ramen mainly improves employee satisfaction

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by improving employees' treatment and implementing corporate culture. For store
basic employees, the ramen is not blindly improve salary, but through the penetration
and influence of corporate culture, implement the "three love" spirit: "three love
customers, love enterprises, love colleagues: love customers, love customers is the
infinite source of the development; love the enterprise, love the enterprise is the vast
and healthy soil; love colleagues, love colleagues is the warm and warm sunshine of
the development". In terms of staff training, Vijisen Ramen has more than 500 square
meters of training centers and many internship stores, which can accommodate more
than 150 people at the same time. The perfect training facilities and training system
are at the leading level in the industry.However, due to the continuous expansion of
the store, some personnel did not receive training on the low service level.

3. Strategic analysis and selection
According to the analysis of the enterprise internal and external environment, listed

the current enterprise facing internal and external factors, namely the enterprise own
advantages and weaknesses and face external opportunities and threats, to review the
position of the enterprise, and according to the analysis for the future development
direction of strategic planning, make the enterprise keep advantage, improve the
weaknesses, seize the opportunity and reduce the risk. When Weisen entered Chinese
mainland in 1997, it was a clear self-analysis of the internal and external environment
of the enterprise that has achieved its accurate strategic positioning.For a brief SWOT
analysis,

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Tables 6-1, S W O T, comprehensive analysis

\ externality Opportunity-0 threaten-T

internal factor \ Japanese catering is still a Fast food industry threshold

brand new market in China; is low, more potential

China's catering market is competitors;

developing rapidly, and the Western fast food has

market potential is huge; occupied a considerable

People's purchasing power is share of the Chinese fast

enhanced, and urban food market;

white-collar workers are Chinese fast food

expanding; competition is fierce,

People's concept of catering compared with western food,

consumption is constantly has a price advantage.

upgrading, and the

requirements of catering

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superiority-s S-strategy ST -strategy

As the earliest Japanese Seize the advantage of the Relying on their own

catering to enter China, it has first entrants to vigorously technical advantages and

the advantage of the first explore the domestic market, experience, develop new

entrants; with the chain operation way products, to leisure or dinner

The soup base recipe is of rapid expansion to seize direction transformation,

exclusive and permanently the market share. avoid direct competition.

licensed in China; Relying on the scarcity of Establish your own unique

With Japanese advanced technology, improve product brand positioning.

production technology, positioning and achieve

equipment, experts and profit maximization.

experience;

The establishment of stores

and processing plants to

provide favorable conditions

for rapid expansion;

isen ramen is authentic

Japanese ramen with unique

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inferior strength or W0 strategy WT strategy

position-w Seize the current favorable Take the route of affordable

New brands, in the domestic market environment, Japanese fast food, provide

brand recognition is weak; strengthen brand building, limited products, and join the

The product variety is and cultivate their own small-scale single store chain

relatively single; customer groups in the new to expand the market.

Through the analysis model of SWOT, we can see that the internal and

external environment was quite favorable for the Taste Qian at that time,

and we should seize the opportunity to develop and grow. So for Vijisen

(China), such a single product enterprise, how should it choose its

competitive strategy and pursue a lasting competitive advantage?

As shown in Figure 6-1, the vertical axis and the horizontal axis represent the
different strategic positioning of the product. The vertical axis is the differentiation
(high cost / high pricing), the horizontal axis is the cost leadership (low cost / low
pricing), and the strategic manager must weigh the two. The value creation boundary
reflects the four components of competitive advantage, which are arranged according
to their importance of differentiation or cost leadership strategy. In order to reach
value creation boundaries and achieve above-average profitability, companies must
use corporate strategies that can bring them a specific competitive position.①
Figure 6-1 Competitive positioning and value creation boundaries
tall and erect

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For Aisen (China), what it wants to do is to seize the favorable environment of the

market according to its own resources and capabilities, and find a suitable positioning

on the boundary of value creation. From the needs of rapid expansion, while meeting

the needs of customers, control its production costs. The basis of centralized

differentiation strategy is market segmentation. The target market segment of Aqian is

shown in Table 6-2.

Table 6-2: Target market segment of Aisen

Type of products Quickly provide nutritious and healthy Japanese ramen and snacks

Bpruoyveirdetydpe BfoertwCheeinne2se0 taansdte50 years old, white-collar office workers or the

middle class, have a high consumption power, the pursuit of a

consumption per RMB 16-30 Yuan

channel of Chain operation mode

distribution

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The buyer's China's large and medium-sized cities
geographical
location

Source: the author

First, this market segment is in line with Aisen (China)'s strategic goal of rapid

growth. The potential customers of Vijisen (China) are the fastest growing group in

the current population structure, and they are also the largest proportion of the

population. With China's economic development and urbanization process, the rapid

pace of life, and the increasing pressure, the demand for eating out in this group is

gradually increasing (see the relevant part of the macro analysis). In addition, due to

higher income levels, the burden of'eating out " is gradually reduced. At the same

time, with the rapid expansion of Aisen (China) and gradually realize scale operation,

it can achieve its cost advantage in this market segment, and positioning the middle

and high-end customers, so that it can obtain high profit space. This point can be seen

in the current report card (as shown in Table 6-3), generally in the 50% gross margin

can be called an excellent fast food industry, taste qian can reach more than 60%.

Table 6-3: Flavqian business indicators

2017 2018 2019 2020 2021 Q 1,2022
gross profit 63.10 59. 80 59. 80 63. 33 66. 74 67. 8%

nraetteprofit 8.59% 12.48% 11.23% 18. 94% 22. 1% 13.8%

raStoiour(c%e:) According to the financial report published by Vijisen, the author arranges it

by himself.

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Second, this market segment matches the resources of Viisen (China). The market
potential customers pay attention to their own quality of life, in the working meal or
meal, health, health, convenience, fast, is the most important factor they choose a
restaurant, they care about taste and dining environment, traditional only pay attention
to cheap and taste but ignore health and dining environment restaurant or greasy, heat
of western fast food obviously can't arouse their interest. Compared with other
competitors, the internal advantages of Ajisen can just meet the needs of such
customers, healthy food with high nutritional value, exotic diet with unique flavor, the
ability to quickly provide products, and so on.

4. Strategic choice of Aisen Ramen
As mentioned above, after the analysis of the external and internal environment, the

enterprise can make strategic choices combined with the strategic development goals
of the enterprise. Strategic choice is a major decision, and selection is simple if a
comparative analysis of multiple alternative strategies can yield one or more strategies
with obvious advantages. But in many cases, the result is that multiple alternative
strategic options have their own advantages and disadvantages. Taking the SWOT
analysis model as an example, there are generally several points in the advantages,
disadvantages, opportunities and threats. According to the combination of the four
points, there will be more alternative strategic plans. At this time, the following
factors should generally be considered for strategic selection: strategic level.

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4.1 Basic competitive strategy
The second central issue of competitive strategy is the relative position of

enterprises in their industries. The positioning of an enterprise determines whether its
profitability is higher or lower than the average level of the industry. When the
industrial structure is not ideal and the average profitability of the industry is not high,
the appropriate enterprise may still obtain a high return on investment. The
fundamental basis of maintaining better-than-average business performance for a long
time is lasting competitive advantage. Although enterprises have many advantages
and disadvantages over their competitors, they can still have two basic competitive
advantages: low cost or difference. The significance of an advantage or disadvantage
of an enterprise ultimately depends on the extent to which the enterprise can
contribute to the relative costs and differences.

Cost advantage and difference are controlled by the industrial structure. These
advantages stem from the company's ability to handle the five forces more effectively

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than its rivals. The combination of the two basic forms of competitive advantage and
the scope of activities that enterprises seek to obtain this advantage can lead to the
three basic strategies to create higher than the average business performance level in
the industry: cost leading, differentiation and focus strategy.
4.2 Cost-leading strategy

The cost lead strategy was increasingly applied in the 1970s due to the popularity
of the concept of the experience curve, which is to win the total cost lead in the
industry through a series of specific policies for this strategy. Cost leading requires
the active establishment of an effective scale of production facilities, to reduce costs
on the basis of experience, strictly control costs and management costs, and minimize
the cost of research and development, service, marketing, advertising and other
aspects. To achieve these goals, it is necessary to attach great importance to cost
control in management. While quality, service, and other aspects cannot be ignored,
the theme throughout the strategy is to make costs lower than competitors.
4.3 Differentiation strategy

Differentiation strategy is to innovate the products or services provided by the
company with innovation, and to form something unique in the whole industry. There
are many ways to achieve differentiation: the design or brand image, technical
features, appearance features, customer service, distribution network, and other
aspects of the uniqueness. Ideally, the company sets itself in several ways. Of course,
the differentiation strategy does not mean that the company can ignore the cost, but
the cost is not the primary strategic goal at this time.

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4.4 Focus strategy
It focuses on a specific customer group, a segment of a product series or a regional
market. As with differentiation strategies, focused strategies can come in many forms.
Although low cost and product differentiation are designed to achieve their goals in
the whole industry, the overall focus strategy is built around the center that well
serves a specific goal, and every functional policy it sets considers this goal. The
premise of this strategy is that the company can serve a narrow strategic object with
higher efficiency and better results, thus surpassing the competitors in a wider range.
As a result, companies are either differentiated by better meeting the needs of a
specific object, or by achieving a low cost when serving it, or both. The company can
use two centralized strategies to create value for customers in a specific and unique
market segment: centralized cost leadership strategies and centralized differentiation
strategies.®

strategy
Standardization strategy

Central Kitchen Strategy

Chain operation strategy Product research and
development strategy

5. Strategic implementation

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5.1 The Central Kitchen Strategy
The concept of central kitchen comes from western fast food chain, is a
procurement, processing, inspection, packaging, freezing, storage, transportation, is a
central intensive production mode: centralized procurement of raw materials,
processing base in fixed locations, unified semi-finished or finished products, unified
distribution to all chain stores, so as to achieve unified product quality; the traditional
restaurant processing is broken, is the catering, especially the fast food chain
guarantee. According to the definition of the "Central Kitchen License Examination
Code" formulated by the State Food and Drug Administration, the central kitchen
refers to the units established by the catering chain enterprises, with independent
places and facilities and equipment, centralized to complete the processing and
production of food finished products or semi-finished food products, and directly
distributed to the catering service units.
As one of the largest fast food chain enterprises in China, the construction of
central kitchen of Aisen Ramen started earlier. So far, ramen in Shanghai, Chengdu,
Dongguan, Tianjin to build four central kitchen production base, coverage radiation in
east China, north China, south China and central China area, covers a total area of
66000 square meters, a total investment of about $100 million, including production,
logistics, the central kitchen and education training four functions, to be fully put into
operation, their supply capacity will be able to support 1800 stores. Taste thousand
ramen in the central kitchen as the core, will all products including noodles, side
dishes, even onion, garlic seasonings are standardization, finished products, not only

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higher production efficiency, product taste consistency is better, unified raw material
procurement, processing and logistics distribution also better guarantee the food
safety, finally ensure each bowl of taste thousand ramen taste and quality is the same,
do with modern technology to ensure the safety of food and nutrition.
While constantly improving management, providing the freshest delicious and stable
quality products, it also pays attention to energy saving and environmental protection
work. In terms of the protein, fat and calcium content in the bone soup, the nutrition
of the central kitchen ramen bone soup and the traditional ramen bone soup. However,
the comprehensive energy consumption of the made bone soup in the central kitchen
is only 34% -45% of the traditional boiled bone soup, and the energy saving effect is
very significant.

Taste thousand central kitchen mode has been highly recognized by the industry,
through the central kitchen production, can effectively control quality, food safety and
improve efficiency, but also can maintain the consistency and stability of restaurant
products, develop chain catering enterprise central kitchen mode, can effectively
improve the comprehensive utilization of resources and environmental protection
level, and can fundamentally guarantee food safety, this model will be the inevitable
direction of future fast food industry development.
5.2 Standardization strategy

As the leader of Chinese fast food chain operation, the establishment of weisen
ramen operation standardization is not only the most important guarantee for its own
development, but also a model of Chinese fast food chain industry operation, which

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provides the development direction and ideas for the whole industry. Through unified
procurement, centralized production, unified distribution and standardized processing,
isen Ramen has solved the problem of product standardization that is difficult to
overcome in Chinese catering.

The raw materials of isen ramen mainly include two categories: food materials,
such as meat, vegetables and spices, as well as goods such as packaging materials and
disposable tableware. To achieve higher standardization during production processes,
Ensure the quality of food production, Enhance the ability to negotiate with suppliers,
To achieve economies of scale, isen ramen adopts a unified procurement mode: all its
main raw materials are purchased from Shanghai and Shenzhen, Then delivered to
other food manufacturing locations; A small number of perishable fresh raw materials
are set up in six sub-offices; In terms of supplier cooperation, isen ramen usually
chooses large and powerful companies, And sign long-term supply agreements with
some of the major suppliers, Clarify the quality, specifications and price range of raw
materials, While gaining a price advantage, Get a long account payable period.

In order to improve logistics efficiency and ensure the normal operation of each
store, Weisen conducts unified distribution of its products and food ingredients, and
the foundation behind it is the perfect logistics and inventory management of Weisen
Ramen. First of all, according to the characteristics of different food ingredients,
Wejisen ramen is classified and transported separately. For example, for perishable
food and what can be stored food, different transportation cycles and transportation
plans are stipulated respectively. Secondly, Wisen Ramen set up its own

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transportation fleet and developed a special distribution manual. The distribution man
will obtain the delivery order from the information system every day, which details
the store location, walking route, arrival time, and the accurate product type and
quantity requirements submitted by each store through the information feedback.

Through the establishment of the central kitchen and standardization, the products
of all jisen ramen chain stores adopt unified production and procurement, and the
store kitchen only needs to carry out the final simple reprocessing. It can be said that
the extension effect of industrialization makes the operation technology of stores
simplified and ensures the consistency of high efficiency and product quality.
5.3 Chain operation strategy

Chain operation is the product of modern global economic development and
commercial competition. Its emergence and development are directly related to the
requirements of modern industrial production on commodity circulation. As an
advanced form of business organization and management system, chain operation has
changed the previous form of business organization, developing from "single store" to
"chain store", and has increasingly penetrated into the catering industry and other
industries, and finally become an important organizational form and operation mode
in the field of circulation in the contemporary world. Enterprises using chain
operation, such as 7-11, Wal-Mart, Carrefour, McDonald's, KFC, as well as domestic
Suning Electric appliances, Home Hotel, and Wigisen Ramen, have achieved better
success to verify the advanced nature and advantages of chain operation. In 2002, the
State Sports Reform Office and the State Economic and Trade Commission jointly

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issued several Opinions on Promoting the Development of Chain Operation, which
pointed out that chain operation is a modern circulation mode to realize economic
economies of scale by implementing centralized procurement, decentralized sales and
standardized operation for a number of retail enterprises.

Since the establishment of Aisen Ramen, the stores have been divided into three
categories: standard stores, economy stores and flagship stores. According to its own
market segmentation and positioning and its own resources, isen Ramen has a planned
and step-by-step chain operation layout: first dig the first-tier cities, then expand to
the second and third tier; the city develops the developed coastal areas first, and then
gradually expand to the inland areas. In first-tier cities, Ajisen ramen basically adopts
direct marketing, and selectively opens the franchise chain in second-and third-tier
cities. The franchise of Viisen Ramen adopts the mode of "single store franchise" +
"regional franchise", and authorizes the franchisees passed through the qualification
and evaluation to use Viisen Ramen brand for new store opening and franchise within
the regional scope determined by both parties. Single-store franchise refers to the
franchise cooperation with Wigisen ramen brand owners in the planned franchise
open city. Regional franchise means that in the planned franchisee open area,
franchisees can obtain the franchise right of Vijisen Ramen in the area in the way of
investing in multiple stores, and complete the agreed number of stores within the
cooperation period. Viisen Ramen provides exclusive protection to regional
franchisees within the agreed period.
5.4 Product research and development strategy

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Taste qian ramen set up a complete operation of product research and
development department, time tracking popular taste trend in the market, continuous
innovation, in retain, improve on the basis of the existing product style, flavor
thousand ramen will also according to the target customer group consumption
preferences and market trend analysis and prediction, to cater to the pursuit of
domestic consumer taste. Today, in addition to noodles, there are also noodles, snacks,
soup and drinks, and there are nearly 100 products available for consumers to choose
from.isen Ramen has maintained the annual update rate of menu products, updating
the menu once in half a year, and the annual update and increase rate is more than
20%. After developing new products, Ajisen ramen will be carefully standardized,
including the combination of materials and the pricing of single items, to ensure the
quality of each chain restaurant and food production and processing facilities.
Although the main product of the company is ramen, and the soup base is also the
exclusive formula, Ajisen ramen strictly guarantees the original flavor of the soup
base, but also still pays great attention to the nutrition of the product. The products of
Wejisen ramen take green vegetables, soy products, dolphin bone, pork, chicken,
seafood as the main raw materials, after reasonable collocation and cooking, so that
consumers can balance nutrition. In addition, Aisen ramen also combines the
preferences of domestic consumers, adding different regional characteristics, seasons
and many other factors to the innovative menu. In different sales areas, the menu
content industry is different to some extent. In the north, for example, isen isen
developed cold noodles, in the Midwest, isen isen introduced spicy noodles, and in the

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southeast coast, it added seafood sashimi to the menu.
When launching a new product, Aisen Ramen will first launch in a number of

selected restaurants and test the new cooking method one by one to evaluate
customers' acceptance of the new cooking method. Once customers respond to the
product, the approved product will be launched in other chain stores. The high-level
tasting system has been established, which is an important step to test the products.
Every product will be tasted by the senior management executives of Wejisen Ramen
Company themselves. Through the pursuit and requirements for taste, innovation and
product research and development, the flavor of Thousand ramen has won high
recognition from consumers.
5.5 Diversified brand promotion channel and media strategy

1. Micro film + topic + interactive activities + multi-channel drainage
integration

Create an inspirational micro film —— "Good friend for a lifetime" series.
Centering on the three eternal themes of love, friendship and dream, it tells the
inspirational stories of a pair of good friends with delicate feelings, inspiring young
people to bravely pursue their dreams. Highlight the brand spirit of the appeal at the
same time, opened a new marketing campaign.

Compliance with the change of consumer behavior habits, break through the
traditional product "push" to consumers "hard" wide form, choose micro film as the
prelude to the Campaign, mainly based on the for the young audience group insight,
for them, micro film is an interesting but effective way of communication, can reach

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with consumers spiritual level of communication, in the subtle spread brand value.
With the help of the fan effect of Sina Weibo and Tencent wechat, we can create
topics, attract new and old consumers to pay attention to micro films, and participate
in topic discussion and forwarding, to achieve secondary diffusion. Cooperate with
PC and Mob the accurate advertising, the target crowd efficient drainage activity page
(Minisite or mobile H5), the depth of communication interaction, with the stage, the
topic of emerge in endlessly and in the depth of the interactive content, further
connected online full platform, mobilize the enthusiasm of the audience to participate
in, bring higher people for offline stores.

2. Invest in Google ads
In addition to creativity, launch Google ads so that in a popular restaurant search,

the brand can top the search results when viewers search for the "best food
list."Search marketing goal is to convert the audience into purchase, but it is also able
to extend the brand exposure to the location, the plan is to run 2 different copies on

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Google ads in the Buddha, by highlighting the flavor thousand ramen provides the
main products, as well as different action call button, leading to different landing page.
This is also intended to test which copy performs better by adding more traffic. The
first will highlight the positioning of the featured restaurant, while the second will
highlight the available menus and services.
3.Invest in creative briefings

A creative briefing is critical to the success of advertising. It not only sets the
direction, strategy and guidance for the creation of advertising, but also serves as a
link between fact and creation, ensuring the unity of advertising strategy and
creativity. General creative brief should include several parts of the content: brand
plan, brand positioning, brand photo, creative description, sales ideas, and
communication strategy of five parts, according to the flavor thousand ramen
attributes, aimed at young noodle group, so I will design a creative briefing in stores,
subway and other places, and flavor thousands of small doll presented to VIP guests,
at the same time attract more users.

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4.Strengthen social media communication and interaction
According to the observation, the existing platform of Aisen ramen has some

deficiencies. The following table shows the breakdown of the project
More specific terms and strategies designed to address this problem:

platform question tactics
microblog
▪ reduces the interactive content ▪ wants to design such content

They are more inclined to Focus on interaction

Storytelling is not about sharing

TIKTOK ▪ video is uploaded with a low ▪ updates more information

frequency from homepage, corporate

Content attention is not high background, service to story

location

YOUTUBE ▪ videos are mainly ▪ merged with Weibo
made in Chinese ▪ has opened an international
version on Weibo
▪ update frequency is low

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1. Weibo
At present, The Weibo and TikTok pay more attention to the brand, and the posts are
not far away from sales, including sales promotion, export business hours and menus.
Therefore, the overall image of the brand is a little different. Therefore, the elements
of consumer interaction should be added. The brand's appreciation of its customers,
and also taking this opportunity to understand what is most important and resonant in
listening, with content planned in a series to create a sense of excitement and
anticipation, so that the audience is willing to continue to participate..

Plated the series of me and Aisen ramen. The series is scheduled to last 6-8
weeks (once a week), inviting store managers and customers in different weeks.
Viewers can ask any questions to this week's store manager through the designed
template, and isen Ramen will answer them differently. Either contact them by email,
get questions collected, or answer questions live on Weibo.

2.TikTok
TikTok mainly spread short frequency fast video, and low new frequency is the
main problem, should first improve the update frequency, determine the day update,
the main content is divided into two parts, one is I will teach you to do ramen, through
shooting taste thousand ramen ramen, brand positive energy video, this activity for six
months, to ensure full participation, another customer ramen challenge, through
customers participate in ramen, through video and live, the final record winner for
lifetime free qualification.The event adopts the method of January 1 award judging to
announce the winners regularly.

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3.YOUTUBE
Currently taste of ramen YOUTUBE account in registration, considering the taste
of ramen expand the international market, so can be appropriate for English video for
cultural communication, at the same time strengthen the background interaction,
artificial intelligence (artificial intelligence) chat bot will develop an instant and
dialogue interaction between consumers and brands, may control some
decision-making process. Therefore, AI chatbot can help isen ramen to help segment
online traffic design. However, do a good job in traffic segmentation.This section will
be updated simultaneously with Weibo international to improve the brand awareness
rate.

6. Schedule and budget

project time budget expected goal remarks
Central The Central 120W Build the At present,
Kitchen Kitchen, national-provincial-municip jisen ramen
2022.1-2022.12 50W al 3-level of central kitchen only
system, boil bone soup, to established
achieve regional a provincial
distribution of 1 hour direct, central
comprehensive energy kitchen, the
consumption of 34% -45%. city level
still needs to
All chain products of Aisen be
ramen realize unified strengthene
production and d.
procurement.
Standardi 2022.1-2022.12
-zation
constructi
-on

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Chain 2022.1-2022.12 100W We have completed the At present,
operation 20W brand verification of all the degree
strategy regions, banned 100 of the chain
crowded stores, and chain is low,
realized the full chain of and some
stores. stores are
highly
Research and development repetitive.
of 5 new dishes, to
Product 2022.7-2022.10 complete the evaluation of
research 2022.7-2022.12 ten thousand people.
and
developm 40W Online events reached
ent 200W, and Google received
brand 1,000 W views.
publicity

7. Conclusion
The purpose of this paper is on the basis of theoretical research, in the fast food

industry excellent enterprises a thousand ramen for example, through the problem
analysis, put forward their own development Suggestions, first of all, in the
theoretical research stage, the author thinks that the essence of the catering industry is
to meet the basic needs of consumers: food and clothing and social, from this
perspective, this paper will catering industry is divided into: dinner category, fast food
category and other. Fast food industry is a popular industry with industrial society and
social economy development to a certain extent, and the economy of scale effect is
significant.

Secondly, enterprise strategy is an overall decision made by enterprises to adapt to
future development and changes and obtain long-term survival and development. It is

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characterized by overall, long-term, stability, risk, dynamics, feasibility, etc. In
strategic management, enterprises generally choose and implement it through external
and internal environment analysis.

Third, as a leading enterprise in the industry, Wejisen Ramen has obvious
advantages in brand and goodwill, manpower, technology, finance and physical
resources, and also has strong competitiveness in store development, product research
and development, quality control, human resource management, marketing and other
aspects.
Fifth, taste qian ramen enterprise development strategic goal is to become a based on
China, with scale advantage, with the world famous brand rival fast leisure restaurant
chain operators, in order to achieve this strategic goal, taste qian ramen of the
implementation of the central kitchen strategy, standardization strategy, chain
management strategy, product research and development strategy has played a vital
role.

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