[Distribution Hot People] The 500-Won 'Ichunsam Jjajang Ramen' Sensation

Best Value for 500 Won per Pack
Contains 39.6% Chunjang
Sales of 1.5 Billion Won, 750,000 Packs Sold

Geonwoo Lee, Homeplus Processed Foods Team Buyer.
[Photo by Homeplus]

"The private brand (PB) Ichunsam Jjajang Ramen is so popular at Homeplus that its daily sales volume is more than twice that of Shin Ramyun."

On the 20th, Lee Geon-woo, a buyer from the processed foods team at Homeplus, met at the Homeplus headquarters in Gangseo-gu, Seoul, and said, "Since its launch at the end of last year, sales have surpassed 1.5 billion KRW. In terms of quantity, 750,000 packs have been sold."

The secret to Ichunsam's popularity is undoubtedly its cost-effectiveness (performance relative to price). The buyer said, "It’s not just a low-priced ramen; it contains a generous amount of chunjang (black bean paste). The chunjang content is 39.6%, the highest among jjajang ramens sold at Homeplus," adding, "At a reasonable price of 2,000 KRW for 4 packs, or 500 KRW per pack, it has received a good response. As the high inflation era continues, the upward sales curve is unlikely to be easily broken."

Especially, many purchases were made by price-sensitive housewives in their 40s. The buyer introduced, "Ramen was originally a substitute meal priced under 1,000 KRW, but recently, the number of high-priced ramen items has increased. Ichunsam is a product that allows families of 3 to 4 people to have a meal for 2,000 KRW."

Ichunsam lowered the price by reducing unnecessary costs and margins. The buyer explained, "Customer surveys showed many opinions that they like to add toppings such as eggs or cucumbers to jjajang ramen. So, it was composed only of noodles and liquid soup without dried garnish soup," adding, "Instead of separate marketing or promotional activities, we reduced costs by fully displaying the product in every Homeplus store to expose it to customers."

The development of this product took a long time of six months. The buyer said, "When we first tasted the prototype, it lacked depth of flavor and had a strong chunjang taste, so after several improvements, we found the right balance of sweetness and chunjang aroma," and added, "To find a taste that would not be divisive to the general public, we gathered opinions from all members of the processed foods team."

As Ichunsam created a sensation, Homeplus has started planning follow-up ramen products. The buyer said, "Although not yet finalized, we have plans to launch Season 2. It will likely be a product that captures both price and taste again," and added, "We want to create one or two more good products to increase customer satisfaction and boost the company’s sales."