When there are many single-person households, select arbitrary products (such as daily necessities) and establish an advertising strategy that can appeal to them.
i. Introduction
II. the main body
1. Characteristics of Target Marketing
(1) concreteness
(2) Product Analysis
(3) Competitors and Market Analysis
2. Analysis of SWOT for selected products
3. Establishing an advertising strategy
III. Conclusion
i. Introduction
In launching a new product, it is a very important question of which product and how to inform customers. From a marketing point of view, customers' responses are sharply divided by how to concept the product and what images and characteristics to apply to the product, and the impact directly affects sales.
Marketing refers to a series of processes that accurately identify customer needs and enable them to meet them. To understand the needs of customers, we must first understand the market trends. Competition has overheated in the mass consumer-centered era and is trying to pioneer a new market. Each company is trying to stimulate consumers' desire to purchase by improving quality and diversifying products. Especially these days, tastes are changing a lot depending on age or gender, and the increasing number of single-person households is also affecting marketing.
There are many factors to consider when launching a new product. Therefore, in the main body, reflecting the increasing trend of the number of single-person households, I would like to explain how to plan marketing strategies in this situation, and convenience food such as convenience store side dishes that are common near us.
II. the main body
1. Characteristics of Target Marketing
The most basic of marketing is to set targets. Target marketing and targeting are clearly set and marketing is carried out. Marketing is like a battle in which every moment sets a new target, just as if the target setting is wrong in a battle. Due to incorrectly set targets, the entire marketing plan may go wild, and products that were likely to fail can save the spark of hope if the "target setting" is properly set.
(1) concreteness
For target marketing, a strategy must be established depending on the characteristics of a company's goods or services and who the future visitor base is set. In general, the criteria include demographic variables, geographic distribution, various educational background indices, and living standards. Setting a target in marketing can be compared to setting a target in advance in navigation. Targeting is an important part of traditional marketing techniques with segmentation, positioning, and targeting. CRM, which has recently been in the spotlight, is also a methodology that determines the position of a product or brand, divides customers accordingly, and then targets them to obtain maximum benefits.
The eCRM, which implements CRM online, also uses different media, but has the same essence. Therefore, target marketing on the Internet is not an unfamiliar concept at all, and the techniques we have always used and influenced have moved into the space of the Internet.
(2) Product Analysis
Convenience stores are competing to capture the domestic home convenience food (HMR) market worth more than 4 trillion won. Single-person households, which continue to increase in trend, and home-cooked meals, or people who eat at home, are supporting the demand for convenience food, and the market is expected to exceed 7 trillion won in the next five years.
According to the National Statistical Office, the number of single-person households increased rapidly, exceeding 6 million in 2020. Single-person households account for 29.9% of the total households, with 3 out of 10 single-person households in Korea.
In addition, according to market research firm Euromonitor, the proportion of convenience food distribution was the largest at 36% last year, but decreased significantly from 47% five years ago. Instead, convenience stores increased significantly from 25% to 35%, and online slightly increased from 11% to 13%.
Consumers' thoughts on the restaurant industry have also changed. According to the "2022 Eating Out Trend" report recently released by the Korea Institute of Food Service Industry Management, four out of 10 consumers said that convenient food could replace eating out.
Due to the growing popularity of convenience food, not only food giants but also startups have entered the market. Recently, it has evolved to manufacture famous hotels and restaurants directly, or to make HMR and sell them directly by commissioning food factories. Since then, restaurant convenience food (RMR) has also appeared as a recipe for famous restaurants.
As such, HMR is still evolving today. From meal kits to RTH (a state that can be eaten when heated), RTE (a state that can be eaten as it is), RTP (a state in which ingredients are ready), and RTC (a state that can be cooked). On top of that, it is analyzed that competition in the premium HMR market will be fierce this year as well, such as ready-mil (a product that can be easily heated and eaten) and medi-mil (a healthy diet), which are made easy for famous chefs to make recipes themselves. The industry is releasing new premium HMR products one after another in cooperation with famous chefs and restaurants.
(3) Competitors and Market Analysis
GS25 introduced the 'Side Dish' series in June. The side dish series features only one food in one container, as sold by side dish stores. Its main products include braised short rib-seasoned meat and oh spicy stir-fried squid and pork.
CU also launched a new side dish brand called 'One Day of Side Dishes'. It plans to introduce a series of small-capacity side dishes tailored to the needs of single-person households. The first product in the side dish series is salted pollack roe, salted octopus, and salted squid. It plans to expand its lineup sequentially, including steamed eggs and stir-fried garlic stalks, next month.
As the demand for home-cooked meals increases, a "easy meal" tab will also be newly established in the pocket CU of its app.
E-Mart 24 is selling a 'no-kitchen three-chan set'. It has been launched so that you can enjoy various side dishes at once, consisting of three side dishes per set. It is characterized by its menu consisting of side dishes that are difficult to prepare ingredients or difficult to make easily at home.
As such, the reason why convenience stores establish sales strategies such as convenience food, single-person meals, and side dishes for single-person households is largely due to rising prices. Analysts say that the sharp rise in the price of food ingredients such as meat and vegetables as well as the price of restaurants is a phenomenon of consumption of side dishes. The tendency to be burdened with delivery platform fees was also reflected. Recently, sales have also been increasing. In the case of GS25, sales of side dish convenience food from June to September increased 273.4% compared to the same period from February to May.
2. Analysis of SWOT for selected products
Milkit is a compound word of Meal + Kit (set), and it is a set of ingredients and seasonings, so it is a convenient food that is only eaten by heating at home. It is a market that is exploding as the number of hours spent at home has increased since the COVID-19 crisis, and it is a market that continues to grow due to the advantage of being able to simply eat recipes from famous chefs at home and the development of technology that can be stored for a long time.
Let's analyze the SWOT of the convenience food market represented by these meal kits.
The strength of the meal kit is that it is possible to operate stores such as manned and unmanned at a low price compared to eating out and a low start-up cost for operators.
On the other hand, the weaknesses are that they have a short shelf life, difficulty in handling inventory, and low entry barriers.
Opportunities include non-face-to-face such as COVID-19 and an increase in single-person households, and threats include the participation of existing restaurant companies in the market and the possibility of large companies entering the market through online and platforms.
| Strength Low price, low start-up costs |
Weakness Difficulties in distribution, low entry barriers |
| Opportunity a rise in non-face-to-face, single-person households |
Threat the entry of large corporations into the field of food service companies |
3. Establishing an advertising strategy
The food industry is already releasing the most convenient food products aimed at single-person households. People who live alone use convenience stores a lot, and industry sales are increasing by more than 30%. In addition, because online shopping is used a lot, online shopping and distributors are continuously growing, and households suitable for the living environment of single-person studios and officetels are also gaining popularity. The restaurant and tourism industries are also focusing on the increasing number of single-person households as marketing targets, and products for these targets continue to increase.
When looking at the proportion of sales by age group using convenience stores, it is said that more than 50% of people in their 20s and 30s. Since I live alone, I use a convenience store lunch box. In line with single-person households, the amount of bottled water is also sold in 1 liter, which has a lower capacity than before. Because the refrigerator is small, its size and shape are gradually changing to make it easy to store.
As such, the advent of the era of single-person households has become a fixed future, apart from whether it is desirable or not. Therefore, the marketing market should also focus its capabilities on targeting the single-person household market. The strategy of selling small amounts of food and small amounts of goods for single-person households will be effective, and the current strategies of various food industries, including convenience stores, seem appropriate.
In addition to this, I think it is appropriate to launch convenient food with a premium image. Since the sales of convenience store convenience food by the people who eat alone have already become a daily routine, it is necessary to differentiate it a little more and brand it with a concept that takes nutrients and quantities. It is necessary to break the perception that convenience store lunch boxes are small in amount or lack of nutrition for a meal and instill an image that they can fill a meal as strong as eating out.
III. Conclusion
The number of single-person households is expected to increase to 34.3% to 7.63 million by 2035. Currently, the market for light home convenience food is expected to reach KRW 770 billion in 2010, KRW 1.5 trillion in 2015, and KRW 5 trillion in 2022.
Customized products and services for single-person households, such as single-person restaurants, single-person households, and single-person residential spaces, are increasing rapidly. The mart sells quite a lot of watermelon and cabbage halves. Entertainment programs that show the lives of celebrities living alone are also gaining popularity on TV. There are many people who live alone, such as college students living alone, new students in society who became independent in search of work, and single people due to divorce, so they seem to sympathize with and enjoy it more.
As such, this is the era of single-person households. In line with this trend, various companies, including convenience stores, should read the trend of the times and establish marketing strategies well.
