Essay about Old Business, Modern Online strategy: Lessons from Lee Kum Kee

工業貿易署 Trade and Industry Office

SME Case Series

CHI KIN (BENNETT) YIM

Aged Company, Modern Marketing Strategy: Lessons from Shelter Kum Kee1 Introduction

We are a very old company, yet we recognize that our clients are changing, so we all continually develop new products to reflect this. David Lee, managing movie director, Lee Kum Kee Company2

The problem having a lot of family-controlled local brands that have an extended history to their rear is that it is extremely easy to become old and run out of steam. -- Antony Chow, vice-president pertaining to Greater Cina, RSCG (an advertising agency)3

The marinade company Lee Kum Kee, one of the best regarded Hong Kong brands, certainly would not have the issue mentioned above, even though it did include a long history that started in 1888, and was run by the same relatives through 4 generations. The organization was founded by simply Lee Kam Sheung as a small oyster-sauce manufacturer in Guangdong Province, China. This relocated to Macau in the early 1900s, moved all over again to Hk after Ww ii, and was based presently there in the decades afterwards. Lee Kum Kee was already broadening beyond the Guangdong-Macau-Hong Kong distribution network in the 1920s to North America, when it was also making shrimp substance. In the 1970s and 1980s, following the torch exceeded to thirdgeneration leader Lee Man Tat, there was a diversification of geographical markets as well as goods at a really quick tempo. Lee Man Tat's sons, who were informed in the West, inherited the management from their dad in the 1990s, and the pace of modernisation and diversity continued as the Company's marketing strategy remained because vigorous and 1 a couple of 3

This situatio is based entirely on community sources, such as Lee Kum Kee Site, URL: residence. lkk. com. Nisha Gopalan, " LKK reveals menu for success”, South China and tiawan Morning Post, 1 August, 1996. Joanna Slater, " Spreading the Sauce”, Far Eastern Economic Review, 20 May possibly, 1996.

Vincent Mak ready this Case underneath the supervision of Dr . Chihuahua Kin (Bennett) Yim pertaining to class discussion. This case is not really intended to show effective or perhaps ineffective controlling of decision or business processes. The case is part of the Trade & Industry Section SME circumstance series financed by the Hong Kong Special Management Region Transact and Industry Department SME Development Finance. Any opinions, conclusions or recommendations indicated in this material/event (by associates of the job team) usually do not reflect the views from the Government in the Hong Kong Particular Administrative Area, Trade and Industry Department or the vetting committee pertaining to the SME Development Finance. В© the year 2003 by The Center for Oriental Business Instances, The University of Hk. No component to this newsletter may be produced or sent in any kind or in any respect - electronic digital, mechanical, copying, recording, or (including the Internet) - without the authorization of The School of Hk. Ref. 03/187C

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Old Company, Modern Online strategy: Lessons by Lee Kum Kee

adaptable as ever. The corporation moreover overcame a consumer-confidence crisis — called 3-MPCD crisis — in the late 1990s and early 2000s and continued to thrive. By early the year 2003, Lee Kum Kee experienced already developed more than 2 hundred sauces. It is distribution network covered 60 countries in five regions, and its goods were found in more than 85 countries. What lessons about strategic brand management can we learn from the way Lee Kum Kee developed, maintained and expanded the reach of its products more than a whole century? What lessons about catastrophe management will the Company's controlling of the 3-MPCD crisis provide?

Early History4

Lee Kam Sheung came to be in 1868 in Qibao, a village in Xinhui, Guangdong Region, China. Risk from community gangsters required him to leave his farming your life and proceed to a small island called Nam Shui inside the same region, where oysters were considerable. Lee exposed a small restaurant there, generally using oysters as share for soups. One day, when cooking...