Differentiation strategies are usually the choice of newly established enterprises or the companies trying to make a breakthrough with a new product by attracting consumers’ attention. To conquer overseas markets with its processed red ginseng products, Korea G.T.C. has also embarked on a differentiation strategy. Under the slogan of providing “the best ingredients and sophisticated design,” the company has differentiated its products from the competition by launching new types of processed red ginseng products such as Pyeonbyeong (round and flat natural tea) and capsuled red ginseng.
Making Everyone Jealous with the High-end Processed Red Ginseng Products
Korea G.T.C was established last year and since then it’s been actively promoting its products to foreign consumers in the high-income bracket. Such consumers tend to be interested in a healthy life style, food safety, and luxurious products. That is why the company is paying particular attention to ingredient selection, product design, and packaging. The basic ingredients for Korea G.T.C’s products are fresh, six-year-old ginseng and ginseng leaves that were cultivated in South Chungcheong, Gangwon, and Gyeonggi Provinces. The ingredients are processed into red ginseng by steaming and drying for a period of six months. Only the best red ginseng is selected and used to make red ginseng roots, pyeonbyeong, red ginseng tea, and ginseng tea.
Red ginseng root products of Korea G.T.C come in transparent packages so that, prior to purchasing, consumers can confirm the quality of the red ginseng roots with their own eyes. This is in contrast to the majority of the other ginseng root products on the market that are sold in cans. When done that way, consumers cannot check the quality until they open the product.
Thanks to the classy packaging, pyeonbyeong and red ginseng tea of Korea G.T.C are popular as gifts. The sophisticated design of the products has recently earned the Minister’s prize at the Fifth National Symbol Design Contest organized by MCST (Ministry of Culture, Sports and Tourism).
Shin Il-seop, CEO of Korea G.T.C, explains, “The head of a ginseng root (which is the top part of a root connecting it to the plant stem) determines the quality of red ginseng. The reason why our red ginseng root products have clear packaging is for consumers to easily see the head of the red ginseng root. Moreover, the packages can be customized based on the weight of the root. We are striving to offer consumers a wide variety of choices.” Mr. Shin emphasizes, “We are putting a lot of effort into ingredient selection, product design, and packaging. This is so that when foreign consumers buy these luxurious processed red ginseng products, they can show them off with pride.”
Flagship Products: Red Ginseng Roots, Pyeonbyeong, Red Ginseng Tea, and Ginseng Tea
The main products of G.T.C include red ginseng roots, pyeonbyeong, red ginseng tea, and ginseng tea. The red ginseng root products come in three different types according to the quality grade: Cheon-sam, Ji-sam, and Yang-sam. Cheon-sam is the highest grade: it is the top 1 percent of the total annual harvest of six-year-old red ginseng. Ji-sam is a high grade of products made with the top 7 percent of the red ginseng. The last, and also strong grade is Yang-sam - no red ginseng outside of the top 15 percent is used for these products.
Pyeonbyeong is made of six-year-old red ginseng and ginseng leaves. It is a new type of a processed red ginseng product with the unusual shape of flattened round tablets. It can be eaten just as is or made into tea. Pyeonbyeong is offered in three kinds, according to the ratio of ingredients: Cheon, Ji, and Yang.
Red ginseng tea also combines six-year-old red ginseng and ginseng leaves. There are two types of red ginseng tea products: premium (strong flavor, comes in triangle-shaped teabags) and gold (smooth taste, square teabags). Korea G.T.C has recently launched yet another type of tea - Korean Ginseng Tea. Each serving is neatly packed in a stick-shaped packet.
Supplied to Duty-Free Shops Frequented by Foreign Tourists…Exports to China, the UK, and Other Countries to Start Soon
The processed red ginseng products of Korea G.T.C are currently sold mainly through the duty-free shops in Korea where foreign tourists often visit. The supply to duty-free shops in airports will also start this year.
Mr. Shin says in anticipation, “We are actively promoting our processed red ginseng products through tasting events to Chinese consumers in the higher-income bracket who prefer premium foods. Export contracts with foreign buyers from China, Hong Kong, Taiwan, and the UK are under negotiation. We are sure we’ll soon hear good news related to the exports of our products.”
What’s the Capsuled Red Ginseng?
Capsuled red ginseng is a new type of processed red ginseng product. It took Mr. Shin two years of intensive research to develop it. The product uses the principle of espresso extracted from coffee capsules under high pressure in coffee machines. Capsuled red ginseng is perfect for those who want to enjoy drinking red ginseng extract in a luxurious way. The product comes in two types: strong and mild. Just as the names suggest, the flavor of the first type is more intensive, whereas the second type tastes smoother.
The product can only be used in an extract machine for capsuled red ginseng. The target customers are cafes, beverage franchises, and high-income earners with money to spare.
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