for eecs441

1. L AO GAN MA CHILI
CRISP SAUCE
P R E S E N T E D B Y
T I A N Y U E Z H A N G

2. THE HISTORY OF LAO GAN MA
• Lao Gan Ma ---- the story of Tao Bihua
• The begun of the business
• The development

3. PRODUCT

4. CHALLENGE
• Fake “Lao Gan Ma”
• Price war
• Single raw material/ strong supplier power

5. BUSINESS MODEL
• Debt-Free
• Not going public
• Consumer Psychology
• Family-based management
• Enterprise---base---farming
• Human resource management
Lao gan ma:The hottest woman in China

6. FINANCIAL INFO
• 750 factory and about 5000 employees
• Sell more than 2 million bottles/day
• $655 million in revenue in 2016, earn $0.15/bottle
• Pay Tax: $0.3 billion value of $1.14 billion in 3 years
(2014)

7. COMPETITON
Lao Gan Ma Lee Kum Kee Douban
Sales/year 730 million bottles 600,000 tons 50,000 tons
Revenue/year $655 million $250 million $40 million
Brand reputation 1 3 2

8. THE SECRETE SAUCE
• The secrete sauce!
• The secrete person!
• Quality focus
• Brand-built

9. PREDICTION
• Will success in many years as long
as the secret sauce is the same.
• Not likely to become much larger
• Will try to sell products at different
countries.

11. Q&A