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Price Competition: Strategy of Half Price Chicken
À̼­¿µ | ½ÂÀÎ2022.11.07 10:28

Have you heard of "Dangdang Chicken" recently? Dangdang Chicken is a chicken with a significant discount compared to the existing chicken. It was released by Home-plus and, became a sensation. Various low-cost products have emerged, led by Dangdang chicken.

 

There were various opinions surrounding this, but first there were positive opinions from the consumer base. Large supermarkets can lower the price because they buy things in bulk.

 

In the case of franchise chicken, the price of Dangdang Chicken is much cheaper because everything is purchased from the headquarters and delivery fees are charged.

 

Low-priced products at large discount stores have received positive reviews for providing consumers with more choices.

 

There were also many negative opinions. First of all, the chicken franchise industry pointed out that Dangdang Chicken is a "bait product". Dangdang Chicken's manager said, "We can sell it for 6,990 won," and the owners of the chicken franchise said, "It's ridiculous."

 

 Large companies also have a reputation for killing small owners' businesses. More than a decade ago, Lotte Mart introduced "Tongkun Chicken", which was similar to Dangdang Chicken, but they eventually stopped selling it due to controversy over infringement of alley commercial districts.

 

The fact that Dangdang Chicken is a bait product is recognized by the large mart industry, and consumer should spend time waiting for Dangdang Chicken, which is a opportunity cost. In the end, the choice is up to the consumer, so unconditional criticism or acceptance is meaningless.

 

L.L.F reporter Seo-yeong Lee


À̼­¿µ  dltjdud908@gmail.com
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