Hubang Chili Sauce: Adding Pungency to a Competitive Emerging Market

內容大綱
In 2015, Hubang chili sauce was launched in China’s highly competitive emerging condiment and sauce market. Instead of undertaking direct competition and a costly price war in traditional retail channels already dominated by a market leader, Wenjin Lu, a local entrepreneur and the chief executive officer of Hubang, developed a unique strategy to achieve breakthroughs via online-to-offline (O2O) food delivery platforms, whose consumers were made up of a fast-increasing consumer base of Internet and mobile users. By 2020, Hubang had achieved an annual sales milestone of US$29 million and secured series A financing. Lu faced a new dilemma: Should Hubang keep strengthening its unique O2O channel through market penetration and product expansion, or should it reposition to enter the retail market with its existing products?
學習目標
This case is suitable for undergraduate- or graduate-level courses or executive development programs on marketing and Internet marketing. Instructors can use this case flexibly in a marketing or Internet marketing course according to their specific teaching goals. The case can be used to discuss channel positioning, customer value proposition, product life cycle, market expansion grid, and related concepts. It can also be used to explore platform economy, network effects, and additional concepts. After working through the case and assignment questions, students will be able to do the following:<br><br><ul><li>Analyze the position of Hubang in a market where the leader has dominant power in the existing sales channels.</li><li>Understand market positioning and different positioning strategies.</li><li>Analyze how Hubang can achieve breakthroughs as a new entrant.</li><li>Understand the platform economy and network effects.</li><li>Use the product life cycle theory and market expansion grid to determine the right direction for Hubang and its products.</li></ul>
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