Contents. Ⅰ. Company profile. Ⅱ. Company philosophy and vision. Ⅲ. Current business status. Ⅳ. Brand strategies. Ⅴ. Social contributing activities

Transcription

1 Welcome to

2 Contents Ⅰ. Company profile Ⅱ. Company philosophy and vision Ⅲ. Current business status Ⅳ. Brand strategies Ⅴ. Social contributing activities [ 1 ]

3 Ⅰ. Company profile 1. General information 2. Major history 3. Major awards received 4. CI / BI 5. Organization system [ 2 ]

4 1. General information [ present] Company name Kyochon F&B Co., Ltd. Establishment date CEO Won-gang Kwon Total asset KRW 50.5 billion [Capital 3.5 hundred million] Number of stores 944 [29 branches in Korea] Number of employees Business contents Overseas launch Related company Address 151 (5 executives, 126 employees, 20 production employees) Franchise business, Sauce production, menu development, investment United States (Eastern / Western), China (Shanghai), Thailand, Indonesia (Jakarta). Kyochon USA, Gyerim local products, Kyochon Food line, K&P food, Suhyun F&B, KNC international [Legal address] 15-8 Cheonpyeung-ri, Gasan-myeon, Chilgok-gun Gyungbuk / 054) [Osan headquarter / Training center] Won-dong Osan-si, Gyeunggido / 031) [Distribution centers] 4 (osan, gyungbuk, Yangsan, Gwangju) [Sauce factories] 2 (osan, Gyungsan) Internet / communication channel [homepage] / [call center] [SNS] Facebook: Twitter: [Mobile] Ordering App: Android (Search Kyochon Chicken at Google player to download) iphone (in preparation) [ 3 ]

5 2. Major history The first store opened Centry distribution co. established 100th store opened K&G system co. established Changed to Kyochon F&B co. 500th store opened 1000th store opened Serrano, the first western store in the states opened Flushing, the first eastern store in the states opened Colver city, the third western store in the states opened Cerritos, the fourth western store in the states opened Took over Gyerim Local Foods co. Manhattan, the second eastern store in the states opened Master franchise agreement in Thailand Kyochon Food Line co. established Current CI/BI changed Master franchise agreement in Shanghai Suhyun F&B co. established K&P Foods co. established Sukhumvit, the first store in Thailand opened [ 4 ]

6 3. Major awards received ~ ~ ~ ~ The best prize for the Korean Franchise Outstanding Brand in 2002 Certified for outstanding service quality / Grand prize for the Service Management awards Selected for the outstanding franchise by the federation of Korea Trade Union 2004 Super Brand Prize selected by the Institute for Industrial Policy Studies Grand prize for the reliable company awards selected by the Korea Consumer Forum [2 consecutive years] Grand prize for this years brand awards selected by the Korea Consumer Forum [10 consecutive years] Outstanding franchise selected by the small and medium business administration [3 consecutive years] One of 100 outstanding franchise hosted by Maeil Business Newspaper [2 consecutive years] 2012 outstanding food service prize by the Ministry for Food, Agriculture, Forestry, and Fisheries Grand prize for this years brand awards for 10 consecutive years! Outstanding franchise for 3 consecutive years [ 5 ]

7 4. CI/BI Remember the beginning and go back to the nature! Based on the Basis, since 1991 Shows resolution to go back to the past, remember the first intension, and do the best Neutral beige color representing Kyochon Color closest to the nature to clarify as a healthy company that considers nature, environment, and people CI and BI are integrally used as the company and brand developed together. Logo / Character ( ) / Kyobi Kyochon takes a leap Let s fly to the world! [ 6 ]

8 5. Organization system Chairman Vice-president Group management strategy team Secretary's office Operation support team Kyochon business advisory Synergy business Sales Overseas business Purchase Development Planning Maintenance Sales Overseas planning team Purchase team Development team Planning team Finance team Daegu sales team Overseas support team Distribution team Design team Management team Busan sales team Manufacture team Gwangju sales team Interior team Organization : 7 departments and 15 teams [ 7 ]

9 1. Business philosophy Win-win management by honesty to customers and fair trade with subcontractors Active acceptance of customer needs and resulting true customer value Social responsibility and contribution activities as a company in the society [ R&D ] - Slow Food - Well-being chicken - Eco-package / interior [ Slogan ] Good idea from the beginning! Being different is, being proper! [ Action ] - 3 announcements of Kyochon - 3 promises - Promise [ 9 ]

10 Ⅱ. Company philosophy and vision 1. Business philosophy 2. Employee style 3. Vision [ 8 ]

11 2. Employee style Kyochon Style The motto Creative person Global person Innovative person There is always bigger task waiting for you who is prepared. If you become the best, Kyochon will become the best as well. Attitudes of Kyochon people 1.Honesty is the best business skill and wisdom 2.Consideration is the best way to gain someone s heart 3.The one who doesn t want to learn modesty will not learn anything 4.Life is to grow oneself and thoughts 5.Innovation is to make a path that no one went, or does not exist 6.Ability to make future dream is more important than efforts or talents 7.Let s think about my future and Kyochon s after 10 years 8.What would the person who dreams about world s best thinking right now? [ 10 ]

12 3. Vision Vision Global Chicken Brand Next 10 years: Global brand After 10 years: National brand from metropolitan area expansion Early 10 years: Local brand around Yeongnam area Core strategies Domestic positioning reinforcement - High-quality luxury chicken brand - Leading new chicken taste (new menu) - Rule maker in the industry Nature-friendly, healthy chicken - Sauce made of natural ingredients - MSG 0%, no saccharin and glacial acetic acid pickled radish - Nature-friendly package and interior design Successful overseas market launch countries every year (M/F method) - successful model, expansion strategy - Grown to the world-level food service brand Social contribution activities expanded - Secured social contribution fund - Environment protection, socially neglected class, sharing management - Kyochon scholarship committee [ 11 ]

13 Ⅲ. Current business status 1. Financial status 2. Distribution centers 3. Branches and stores 4. Domestic business achievements 5. Overseas business status 6. Major business plans in 2013 [ 12 ]

14 1. Financial status Appearan ce Number of stores Yearly quantity of goods (ton) Income Sales Profit Number of stores 1,100 1, , , ,500 13,750 Yearly quantity of goods (ton) Sales 1,500 1, Profit , (Unit: unit/ton) Year # of stores 1,020 1,058 1,055 1,049 1,036 1,011 1, (Unit: KRW hundred million) Year Sales ,106 1,101 1,140 1,425 Yearly quantity of goods (ton) 12,858 16,032 15,804 16,398 17,120 15,930 15,996 15,382 15,439 18,347 Profit * 516 stores by the end of 2002 * The first AI occurred in Korea on December [ 13 ] * Sales of KRW 32.7 billion, profit of KRW 4 billion in 2002

15 2. Distribution centers Osan distribution center / headquarters - Responsible for Seoul and Gyunggi area - 58% among total quantity - 12 branches affiliated Gyungbuk distribution center - Responsible for Gyungsang nam/buk-do, Gangwon areas - 21% among total quantity - 9 branches affiliated Yangsan distribution center - Responsible for Busan, Ulsan, and Jeju - 11% among total quantity - 10 branches affiliated Gwangju distribution center - Responsible for Jeolla nam/buk-do -10% among total quantity - 3 branches affiliated [ 14 ]

16 3. Branches and stores Seoul / Gyunggi 8 branches 399 stores [42%] Gyungsang-do 11 branches 306 stores[32 %] Chungcheongdo 3 branches 101 stores[11%] Jeollado 3 branches 113 stores[12 %] Gangwondo / Jejudo 2 branches 27 stores[3 %] [ 15 ]

17 4. Domestic business achievements Contributed to qualitative and quantitative growth of domestic chicken industry - Foreign brand, whole-chicken style fried chicken The first to introduce native brand and sliced meat [wing, leg] - Developed its unique sauces such as soy sauce + garlic sauce, red sauce, and honey sauce suitable for our tastes - Nature-friendly package and store interior design - Pursued fine quality and uniqueness of products and services - Developed packaging box, shopping bag, and container set [pickled radish, pub container] - Pursued specialization and differentiation in marketing strategies Chicken consumption expanded / contributed to job creation Average of hundred million people use Kyochon a day - Contributed to the growth of domestic poultry farming and chicken processing - Introduced sliced meat [wing, leg] to expand cut meat and packaged meat supplies - Job creation in private businesses (headquarters, branches, stores, subcontractors, part-times, etc.) [ 16 ]

18 5. Overseas business status Basic direction - After AI occurred in 2003, Kyochon deferred overseas launching plan to preemptively stabilize domestic franchise - After 2006, it carried out overseas launching starting with the United States - Method: It established local body, operated direct stores, then developed franchise business. After, it continued to other countries with master franchise methods Overseas launching strategies Business method! Direct management (U.S) (changed to M/F method)! Master franchise method (other countries) M/F method! Careful selection and support of business partners in corresponding countries! PR for business partner stores! Franchise business in the countries Foreign country launching! Preparing M/F standard model! Phased expansion of successful models to other countries! Applying characteristics of each country Goals! 5-10 countries/year (At least 50 after 10 years)! Stores around the world More than 5,000 (first phase) 10,000 targeted (second phase) Meaning of overseas launch - Suggested successful model in chicken industry as the market leader - Secured new market opportunities and improved brand value - Contributed to the globalization of Korean food service industry [ 17 ]

19 5. Overseas business status U.S project Kyochon USA body established - 2 direct stores in the Eastern area and 2 in the Western area Thailand China Other countries Shanghai First store will be opened in February Second store will be opened in February Indonesia Others Beijing Second store will be opened Third store will be opened [ 18 ]

20 6. Major business plans in 2013 Business keywords Management and competitiveness reinforcement Business goal *Establishment of the third takeoff foundation towards world *Sales of KRW150 billion, 19,000 tone supply, 1,000 stores, 5 countries reached 8 tasks 1. Vitalization of store sales 2. Systematization of overseas business 3. Reinforcement of strategic marketing activities 5. Enhancement of system organization and application 4. Effective budget execution and cost cutting 6. Reinforcement of integrated risk response 7. Establishment of effective cooperative relationship between affiliates 8. Reinforcement of organization and human resources [ 19 ]

21 Ⅳ. Brand strategies 1. Brand strategies 2. Core keywords 3. Advertisement strategies [ 20 ]

22 1. Brand strategies Good idea from the beginning (past) Different Means Proper! Kyochon is Korea s excellent franchise company with unique taste, quality, and services Changes in BI 3 promises One, we will not make fast food. Two, we will use natural ingredients only. Three, we will make honest and healthy chicken. [ 21 ]

23 2. Core keywords -Luxury chicken Why Kyochon Chicken? What a taste! 5 Conditions of luxury chicken 1. Mastership (right way): Solid craftsmanship armed with Kyochon attitude (Business mind) 2. Good ingredients (health): Domestic ingredients, optimum ripening, Kyochon oil (Cheongdo), local agricultural products, natural sauces (soy sauce-garlic, soy sauce, and mushroom, red sauce-red pepper) 3. Good cooking (Sincerity): Thin batter, first and second frying for removing oil, fried chicken shaping (eliminating crumbs), plastering sauce with brushes 4. Good environment (Sanitation): Clean kitchen and sink, safe cooking facility and equipments (CESCO is installed at all stores) 5. Good A/S (C/S): Clean packaging, right delivery, customer management, and store manager attitude! Business mind: Kyochon is the only one with its 5 conditions 1. Delicious? Why is Kyochon Chicken? Because its exclusive cooking process with good ingredients including the best exclusive frying oil and natural sauces in the clean kitchen with sincerity 2. Taking long time? Because of its process with the first and second frying (15 min/5 min) to remove oil and make crispiness, brushing sauce on each piece (5min), and then delivery (5min) 3. Small amount? Because it fries in thin batter and shapes after (removing crumbs), even though it uses size-10 young chickens and follows the standard 4. With low sodium?! Even though the sauces are soy sauce and red sauce (garlic, soy sauce, mushroom, red pepper juice), it shows the lowest level of sodium among chicken brands. [Raw meat (dyeing and salt free), natural sauce, No MSG, No glacial acetic acid] [ 22 ]

24 2. Core keywords -ECO Interior design concept based on nature-friendly ECO philosophy 100% natural pulp package that reminds health and nature [ 23 ]

25 3. Advertisement strategies Advertisement/PR strategies - Omni-directional advertisement with solid PR (TV, radio, newspaper, printed media) - simultaneous online and offline PR - Contact advertisement (tasting and exhibition) - Changed product PR to brand PR - Reinforced LSM marketing (mostly at weak areas) - Hire friendly models - Selected as the outstanding advertising agency in 2013(HS Ad.) [ 24 ]

26 Ⅴ. Social contributing activities 1. Promise 2. Social contributing activities [ 25 ]

27 1. Promise Nutrition labeling Before the mandatory nutrition labeling enforcement in 2010, Kyochon tested nutrition labeling for chicken and bread since November 2008, and led the system in the industry of about 200 chicken brands Health-oriented management Cooked in natural sauces (MSG free) Initially introduced pickled radish with saccharin and glacial acetic acid free 100% natural pulp package Applied health-oriented interior design Origin marking Enforced origin marking for chickens since December 2008 Origin marked on boards in the stores Origin guidebook distributed A member of integrated disaster prevention system Maintains always clean stores with CESCO s integrated disaster prevention system Promises to consumers for providing safe food to them [ 26 ]

28 2. Social contributing activities Kyochon Chicken delivers dreams and hopes to neglected neighbors in our society as a good companion to local societies! Headquarters - Social contribution fund - Kyochon scholarship committee - Business and academic cooperative activities : Kyungbuk University, Osan University, Hongik University, Korea Culinary Arts Science High School - Nanum(share) chicken Love sharing event : Sponsors and supports chicken to seniors and social welfare centers (Self-governing event, judo competition, Koran wrestling competition) - Package: Missing children search! Stores - Operate children safeguard houses Let s keep our children ourselves Social contribution fund Business and academic cooperative activities Nanum(share) chicken Love sharing event [Children safeguard houses & Missing children search] [ 27 ]

29 [Appendix] Head office and affiliates [ 28 ]

30 Head office Kyochon F&B office Land area Approximately 7,430 # of floors B1-3F Use Office -Training center, Distribution center Building area Approximately 1,453,07 Structure A ferroconcrete building Total floor area Approximately 4, Direction Seoul Osan IC Daejeon Gyeongbu Expressway Seongho middle and high schools Osan Factory LG distribution center Overpass Address: , Won-dong, Osan-si, Gyeonggi-do Tel : +82(0) Fax : +82(0) Taeyeong Apartment Pyeongtaek [ 29 ]

31 Head office Views of offices [Osan HQ / Training center] [Osan sauce factory] [Kyochon ville] Ancillary facilities [Conference room] [Gym] [Auditorium] [Cafeteria] [ 30 ]

32 Affiliates Kyochon USA Kyochon business in the U.S Eastern (2), Western (3) - Manhattan - Flushing - Serrano - Cerritos Kyochon Food Line Established with Kyochon s 20 years of management know-how - Traditional Kalguksu brand, Gangnam Gyoja (9 stores) - Italian restaurant, Cipollarosso (11 stores) A th floor in U-Space-1 Sampyeong-dong Bundang-gu Seongnam-si, Gyeonggi-do Kyerim Local Foods Specialized chicken processing company - Operates Yemiwon online shopping mall 73-1 Sanjeon-ri Namcheon-myeon Gyeongsansi, Gyeongsangbuk-do K&P Food - Specialized food processing company (pickled radish) Ahnheung-ri Namsan-myeon Gyeongsan-si, Gyeongsangbuk-do Suhyun F&B - Specialized food processing company (charcoal) - Operates direct stores (Preparing in Daegu) Iluhn-ri Jain-myeon Gyeongsan-si, Gyeongsangbuk-do KNC International Co. - Kyochon Food line & Entertainment - Home-shopping and PR A th floor in U-Space-1 Sampyeong-dong Bundang-gu Seongnam-si, Gyeonggi-do [ 31 ]

33 Thank you! Do the best! Be the first-class! Go to the world! [ 32 ]