The strategy of Huy Fong Foods PDF

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The strategy of Huy Fong Foods...

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Huy Fong Foods - the company behind the brand "prestigious" Sriracha Chilli has never spent money on advertising and media. The company's strategy is to focus on product quality, not profit or competition. Quality, quality and quality Arriving in Los Angeles in the 1980s, David Tran could not find a substitute for the familiar chili sauce in his hometown. And when he learned that the entire Southeast Asian community in the region was suffering from the same situation, David realized the business opportunities of his life. After months of research and processing, David created the formula "Sriracha Chili Sauce" to satisfy his "craving," including regional ingredients such as jalapeño, vinegar, and sugar. , salt and garlic. In order to build a brand, David uses the image of a rooster from his armor and hands each vial to small restaurants around where he lives. Until the number of orders was large and stable, David still focused on product quality instead of focusing on profits. The evidence that Sriracha has never increased its wholesale price for more than 30 years and all distribution stages are delivered to 10 wholesalers. Therefore, the biggest obstacle to Sriracha chutney is not the loss-making business, but the quality of the input. Although most competitors use dried chili to easily harvest, process and bottled. Sriracha since its inception has always used freshly picked peppers directly on the tree to ensure the best taste. And to do this, Sriracha needs to harvest and put in more than 45,000 tons of chili that can be quickly damaged to serve the entire yearly production process. Huy Fong Foods' quality commitment forced this company to deliver tons of fresh chili straight from the garden to the production line on the same day. Therefore, Huy Fong factories are only 20 years away from Underwood Family Farms - the only supply partner - just an hour's drive. And since not all areas grow peppers with uniform quality and yield, Huy Fong Foods has decided to focus on cooperating with a supplier to maintain consistent product quality. Advertising from users is the most effective advertising During his establishment and development period, Huy Fong Foods had never had a marketing employee or spent any money on advertising. Not only that, the company does not own any Facebook, Twitter or Google Plus accounts, all the information that users can find about Sriracha is an extremely simple website. "It's all from the consumers themselves," even some of the oldest users still think Sriracha is imported from Asia rather than being produced at its "home". Sriracha has become a famous Case Study thanks to its great value when placing customer satisfaction first. "Natural aromatherapy incense": Convincing each user and they will introduce themselves to acquaintances. The path to becoming an indispensable ingredient in Sriracha's most affordable eateries can be said to be "unique": From the restaurant staff.

These employees are always in the habit of bringing a bottle of Sriracha to eat for themselves, since then, some restaurant owners have added Sriracha on the table to serve Asian guests. Gradually Sriracha is no longer an "additive" but it has become a "component" of meals. Even some sushi chefs use Sriracha to make the salmon rolls more spicy. Communication with recipes Just a quick Google search will have more than half a million "better cooking with Sriracha" results. Sriracha mixed with butter, Sriracha sandwiches, popcorn Sriracha, marinated Sriracha, even cream and Sriracha flavor cocktail. The more users share Sriracha recipes and pictures on social media, the more popular this product will become. In 2011, author Randy Clemens published a cookbook called "The Sriracha Cookbook", and only two years later, he went on to release a vegetarian version called "The Veggie -Lover's Sriracha Cookbook ". Low cost, widespread and especially quality guaranteed, Sriracha becomes a friend of housewives and even the most famous chefs. And Sriracha "addict" Association Don't be afraid to share Sriracha's brand image because it is a way to "advertise free" for the company. David Tran always encourages as many people as possible to experience Sriracha. And focusing only on its core product, Sriracha assigns partners to exploit more "unique" products such as Sriracha2Go (Sriracha pocket keychain) or SrirachaBox (Sriracha product package including key chains). , snack, shirt ...). Knowing that customers are the most loyal "partners", David Tran also organizes weekly factory tours, no different from the character Willy Wonka in the film. Out-of-sight visitors also enjoy Sriracha's latest products, free clothes and meet directly with CEO David Tran. Gradually the Sriracha factory became a tourist attraction for the whole region. There are also dozens of events each year around the Sriracha theme with thousands of attendees, some of which are also funded directly by Huy Fong Foods. Result From sales of only 1,000 USD / month in the days of hand-delivered goods, David Tran is currently holding a property with two large manufacturing plants in the US, more than 20 million bottles of chili sauce sold each year and revenue of more than 60 million USD with the development rate of more than 20% in recent years. But not only financial success, Sriracha has gradually become an integral part of American culinary culture and many other parts of the world. It all comes from the determination to be "stubborn" to give customers the most valuable products....