Defeated Master Kong s unification and created a myth of 2 billion in revenue, why did the Wugu Dojo

Mondo Culture Updated on 2024-02-06

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When it comes to instant noodles, consumers may think of a supermarket full of shelves"Master Kong"、"Unification"These classic brands.

However, even Master Kong has had very strong opponents.

In 2006, China's instant noodle market"Five Grains Dojo"Monopolizing one side, the marketing volume of 2 billion yuan a year still sounds like an astronomical amount.

As a result, Wugu Dojo has become the "light of domestic products", and its founder, Wang Zhongwang, is also called"Instant noodle king"。

However, just when the Wugu Dojo reached its peak surrounded by tens of thousands of people, it went bankrupt in an instant.

Wang Zhongwang also disappeared.

What's going on?

In 1970, Wang Zhongwang was born in a poor farming family in Hebei.

Wang Zhongwang has many brothers and sisters, and in order to share the burden of the family, Wang Zhongwang only studied in primary school for a few years before coming out into society.

Although Wang Zhongwang"I don't know a few big characters", but he was never picky about his work and kept his feet on the ground.

Whether it is hard work or tiring work, as long as he can earn money, he is willing to do it.

So, the young Wang Zhongwang went into the city when he was a teenager, worked as a workshop worker, and also set up a stall, trying everything.

At that time, it was also a period of China's rapid economic development, and everyone came to Beijing, Shanghai and Guangzhou with enthusiasm, and the railway and bus stations were crowded.

In order to hurry up and save money, instant noodles have become the best-selling filling food in the small supermarkets near the station.

In 1996, when Wang Zhongwang was 26 years old, he appeared on the street"Hualong brand"Instant noodles are often placed in the most conspicuous position on the shelves.

It turned out that this was an instant noodle brand founded by Wang Zhongwang's Hebei hometown Fan Xianguo in 1994.

In two years, Hualong instant noodles have been sold all over the country and are quite popular among the people.

Seeing that his fellow villagers had opened factories and were the bosses, and the business was becoming more and more prosperous, Wang Zhongwang was envious.

After all, the days of wandering are always full of uncertainties.

As he gets older, he also wants to find a serious job with a salary and settle down.

He thought about the commercial value of this small package of instant noodles, so he decided to take the initiative and talk to Mr. Fan.

Although he has no sales experience, Wang Zhongwang just has shares"Newborn calves are not afraid of tigers"recklessly, I want to become the best merchant of Hualong instant noodles.

Fan Xianguo had no intention of hiring this poor boy.

But seeing that Wang Zhongwang was young and ambitious, it aroused his curiosity and appreciation, and asked him:

What are your insights on the instant noodle market? "

Wang Zhongwang replied"Now the city is full of brands of Tongyi and Master Kong, but the rural market is still very blank, and Hualong can seize the opportunity. "

Fan Xianguo was quite satisfied with the business sense of this little fellow, so he promised Wang Zhongwang to let him be the chief ** of Lanzhou.

Wang Zhongwang also lived up to expectations, and became the first to go deep into the rural market non-stop.

Soon, Hualong's sales volume will be like a rocket, and the revenue will be even more impressive.

Fan Xianguo was overjoyed and decided to promote Wang Zhongwang to be the chief ** in the northwest region.

But the ambitious Wang Zhongwang was"Anti-general army", when he was about to be promoted, he decided to leave Hualong and set up his own door.

In 1999, Wang Zhongwang took the savings and existing sales experience to open an instant noodle factory in his hometown in Hebei Province, named it"The Third Prince", which means Nezha.

According to the legend of Nezha and the sea, it is difficult not to think that Wang Zhongwang has to deal with it"Dragon King", is his old club Hualong.

With his connections in Hualong, he recruited several key employees of Hualong, which made Fan Xianguo very angry.

But no matter what, Wang Zhongwang still insisted on opening his own Third Prince instant noodle factory, ready to roll up his sleeves and do a big job.

In fact, at that time, the third prince entered the instant noodle market and did not have much advantage.

Henan Province already has a mature instant noodle industry chain such as Baixiang and Nanjie Village.

And the third prince has just started, with only a few rudimentary production lines.

But Wang Zhongwang was not discouraged, but found another way and started a business of eating noodles.

In order to improve the quantity, Wang Zhongwang set up different amounts of rewards and honors for the merchants who purchased the goods to promote the enthusiasm of the merchants.

With his efforts, Santai instant noodles exceeded 100 million yuan in sales in 2000, and it is in a market with many strong competitors"Deus Ex the Siege"Catch someone’s eye.

Wang Zhongwang also took advantage of the situation to expand the scale of the factory, and the third prince turned into a company"Zhongwang Group", and also created a new instant noodle brand"A bowl of incense"。

But his old rival Hua Long did not sit still, and pursued Zhongwang Group relentlessly.

Since you can come up with a new brand, then I am not to be outdone, so there is something that still exists today"Jinmailang"。

Just as the two enemies are still dealing with each other"Fight", Master Kong suddenly found Wang Zhongwang.

Prior to this, Master Kong had heard of Wang Zhongwang's family history, and he couldn't help but have some admiration in his heart.

But after all, it's a competitor, and it still can't let it develop so smoothly.

So, the person in charge of Master Kong contacted Wang Zhongwang and wanted to discuss and buy his instant noodle factory.

Wang Zhongwang is having a headache how to deal with Hualong, this is good, after all, the enemy of the enemy is a friend.

So after several discussions, Master Kong acquired Zhongwang Group for 300 million yuan and established a new company, and Wang Zhongwang is still the chairman.

But to Master Kang's surprise, Wang Zhongwang was also halfway like Fan Xianguo, who took him in at the beginning"Betrayal"Myself.

Originally, the agreement between Master Kong and Zhongwang Group was to produce affordable instant noodles and let the brand sink into the market.

However, Wang Zhongwang again"Words are not believed", with a huge sum of 300 million yuan, bought 10 high-end production lines, and started to make non-fried instant noodles.

The reason why Wang Zhongwang agreed to Master Kong's acquisition request was also because he had long had the idea of transformation and upgrading, but he did not have enough funds in his hand and has not taken action.

And Master Kong's investment is right in the middle.

This operation also made Master Kong Group"Eat a trench and grow a wisdom", urgently withdrew the capital, and demanded compensation from Zhongwang Group.

But Wang Zhongwang had just finished purchasing equipment and instruments at this time, and he couldn't get the compensation, so he had to pay it"A bowl of incense"The brand was transferred to Master Kong.

In this regard, it belongs"Five Grains Dojo"The era of instant noodles began.

In order to quickly open the market, Wang Zhongwang gritted his teeth and voted 1500 million yuan, in the CCTV evening ** file rotation advertising.

One sentence"Non-fried, healthier"The advertising slogan is deeply rooted in the hearts of the people, and the famous actor Chen Baoguo also endorses it.

I have to say that the new track of non-fried instant noodles has made differentiation and made instant noodles as "junk food" high-end.

Wugu Dojo not only retains the public's pursuit of delicious instant noodles, but also satisfies the psychological needs of eating safely and healthily, and was soon sought after and once out of stock.

The performance myth of Wugu Dojo generating 2 billion revenue a year has made the two giants of Master Kong and Uni-President shocked.

Wang Zhongwang is also known as a leader in domestic instant noodles.

However, the higher he stands, the more competitors will want to pull him into the water.

Other instant noodle competitors are envious and jealous of Wang Zhongwang, who has made a lot of money

Why does Wugu Dojo sell so well, and are non-fried instant noodles really that healthy?

In order to block Wang Zhongwang's "healthy" road, other opponents joined forces and invited food and nutrition experts to take a look.

After expert comparison, non-fried instant noodles are not "much better" than ordinary instant noodles, and in the end they are just ordinary noodles.

As soon as the news came out, it shook the market and consumers.

Customers who seek after Wugu Dojo feel that they have been deceived and have boycotted the brand, and the sales have fallen off a cliff**.

In addition, the convenience food field has launched new tricks such as self-heating rice and self-heating small hot pot, impacting the instant noodle market, and Master Kong has to reduce some production chains to control costs.

Under the attack from all sides, the "National Instant Noodles" Wugu Dojo fell off the altar, and many capitals urgently withdrew their investment.

And Wang Zhongwang, who was still raising money to expand his processing plant, suddenly became heavily in debt.

In less than a year, Zhongwang Group could not pay the wages of its employees, and disputes arose.

In 2008, in order to repay his debts, Wang Zhongwang emptied the company's family funds, and there was only a double-digit amount left on the books.

In order to repay the huge debt, the desperate Wang Zhongwang had no choice but to build the Wugu Dojo brand with 10.9 billion "cheap sale" to COFCO.

But it is a pity that because the reputation of Wugu Dojo has plummeted, consumers' desire to buy is extremely low, and it has not "come back to life" in the hands of COFCO.

In desperation, COFCO sold this once smash hit brand to Keming Noodles at a discount of 50 million yuan in 2017.

Today, the Five Grains Dojo still appears on the shelves of shopping malls.

But it has long since faded from the high-end brand coat and become a pack of affordable instant noodles.

And Wang Zhongwang has been reduced from a billionaire to a dishonest person subject to execution because of high debts, and his life is restricted everywhere.

It is really embarrassing that a generation of sales myths ended up with such a "high drive and low go".

Wang Zhongwang's vision in the early days of entrepreneurship was indeed higher than ordinary people.

And quickly and accurately discover the breakthrough point in the industry, jump up, and talk face-to-face with the peer boss in a short time.

This kind of perseverance and confidence is worth learning from all entrepreneurs.

But in the later period, his ambition trumped rationality, blindly expanding production, ignoring changes in current affairs, and letting the instant noodle empire he had built for many years collapse.

His non-fried instant noodles entered the market with a green and healthy signboard and created a sales myth.

But the wave of national popularity has passed, and in the end, it only gives consumers one more choice.

In the final analysis, instant noodles are for "convenience", and as a fast food, we should pay more attention to taste and efficiency.

It's a bit absurd to pursue any nutritional value from an ordinary piece of bread and instant seasoning.

And Wang Zhongwang just lost in overconfidence.

If Wang Zhongwang's steps are a little smaller and he is more trustworthy to his investors, maybe the ending of Wugu Dojo will be another story of "the rise of domestic products".

-end-

Author: Songting.

Editor: Ichiyigi.

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