How could Orion sustain their 1st mover at Choco-pie?
It was year 1974 that Orion made a product choco-pie. There wasn’t the snack like it, so orion became to open new market with choco-pie. They were 1st mover of the market. The market growed so fast, and so did the company. They monopolized the market, there was no competition, Orion had so strong identity with Choco-pie.(people usually reminded Orion’s when they heard Choco-pie).
But a competitor dived into the market. Lotte started to make cacao-pie, which is too similar to distinguish with choco-pie. Orion claimed them to the court, but they lose. Choco-pie became the common noun of that kind of product. Then any compony became able to make it if they wanted, and they did- Haitai in 1986, Crown in 1989. there were so many kinds of choco-pie, and consumers get confused.
*we call those kinds of product(lotte choco-pie) as ‘me-too product’. Sometimes me-too product destroy the 1st mover, by leaping or by destroy the whole market image. We can see leaping in case of pepsi, and second one can be seen in case of ‘비락식혜’. 비락식혜 was the 1st mover of traditional beverage market and once became a trend, but they couldn’t sustain the market, because so many me-too product appeared and spoil the unique image of that kind of beverage.
Orion says that they overcame the crisis by 2 stratage. One is to make brand-image. They connected concept ‘정’ with the product(‘정’ had many concept about feeling, like love ,sympathy communicate, which touched consumer’s heart. They made persuasive public perception about their choco-pie. That made their product unique, and Orion could sustain their 1st mover advantage in korea. Second is to go abraad. They made new market on Russia, china and Vietnam, and there they became 1st mover. Now orion has 73% of market share over the world.I think there are additional thing that Orion could keep their position. is the quality. Many companies make choco-pie, but they targets on the low-price market only. I think it is because they cannot catch up the quality and unique flavor of Orion. Lotte Chocopie is too sweet, crown’s is too easily crumble. I think Orion’s tech to make best quality product make it can be.
It was year 1974 that Orion made a product choco-pie. There wasn’t the snack like it, so orion became to open new market with choco-pie. They were 1st mover of the market. The market growed so fast, and so did the company. They monopolized the market, there was no competition, Orion had so strong identity with Choco-pie.(people usually reminded Orion’s when they heard Choco-pie).
But a competitor dived into the market. Lotte started to make cacao-pie, which is too similar to distinguish with choco-pie. Orion claimed them to the court, but they lose. Choco-pie became the common noun of that kind of product. Then any compony became able to make it if they wanted, and they did- Haitai in 1986, Crown in 1989. there were so many kinds of choco-pie, and consumers get confused.
*we call those kinds of product(lotte choco-pie) as ‘me-too product’. Sometimes me-too product destroy the 1st mover, by leaping or by destroy the whole market image. We can see leaping in case of pepsi, and second one can be seen in case of ‘비락식혜’. 비락식혜 was the 1st mover of traditional beverage market and once became a trend, but they couldn’t sustain the market, because so many me-too product appeared and spoil the unique image of that kind of beverage.
Orion says that they overcame the crisis by 2 stratage. One is to make brand-image. They connected concept ‘정’ with the product(‘정’ had many concept about feeling, like love ,sympathy communicate, which touched consumer’s heart. They made persuasive public perception about their choco-pie. That made their product unique, and Orion could sustain their 1st mover advantage in korea. Second is to go abraad. They made new market on Russia, china and Vietnam, and there they became 1st mover. Now orion has 73% of market share over the world.I think there are additional thing that Orion could keep their position. is the quality. Many companies make choco-pie, but they targets on the low-price market only. I think it is because they cannot catch up the quality and unique flavor of Orion. Lotte Chocopie is too sweet, crown’s is too easily crumble. I think Orion’s tech to make best quality product make it can be.
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