1

The Case Study of Bibigo’s Glocalization

Strategy: From Korea to Global 1

Han Na Do, Su Zie Lee, Hyo Eun Kim,

Jeyeong Lee, & Tingting Fan2
This case study analyzes Bibigo’s success and the reasons behind it. Started
as an overseas targeting restaurant brand in 2010, Bibigo has joined the list of
top Home Meal Replacement (HMR) exports with its premium Korean
dumplings. The analysis discloses factors and occurrences behind Bibigo’s
success and fame.
The study can be divided into three parts. The first part is turning points that
Bibigo encountered which brought significant changes to the brand. It consists of
Bibigo’s responses and actions when challenges or opportunities came. The
second section is its success factors. Bibigo’s understanding of consumer
needs, innovative strategies, thorough localization process, and effective
management have led it to be No.1 on domestic and the US HRM market. The
last part is challenges and recommendations. It consists of Bibigo’s past,
present, and future challenges. Bibigo’s reaction to the past challenges and
some recommendations to its current and future problems are also included.
Even though Bibigo faces some challenges now, it will conquer them and
position itself as a major brand.
Bibigo’s bold decisions such as M&A and fast responses toward problems can
act as lessons to start-ups. Bibigo has come up with a solution to the Global-
Local dilemma which can enlighten export companies wanting to enter the global
market. This case study can help start-ups on how to maintain a company and
present a road to success.
Keywords: Glocalization, HMR Producer, Food Industry, Brand Identity, M&A

1
This case was selected as the World No. 1 Winner among the Top 10 best cases based on the World
Asian Case Competition (WACC 2020).
2
Han Na Do is a Bachelor of Business Administration (Integrated BBA), The Chinese University of
Hong Kong (email: dhn811@gmail.com)
Su Zie Lee is a Bachelor of Business Administration (Integrated BBA), The Chinese University of Hong
Kong (email: suzielee0727@gmail.com)
Hyo Eun Kim is a Bachelor of Business Administration (Integrated BBA), The Chinese University of
Hong Kong (email: rlagydms5709@naver.com)
Jeyeong Lee is a Bachelor of Business Administration (Integrated BBA), The Chinese University of
Hong Kong (email: jeyeong1130@gmail.com)
Tingting Fan (Corresponding author) is an Assistant Professor of Marketing, The Chinese University of
Hong Kong (email: tingtingfan@baf.cuhk.edu.hk)

ACADEMY OF ASIAN BUSINESS REVIEW ISSN: 2384-3454 / 20 / $10.00

Vol. 6, No. 2. DECEMBER 2020 ⓒ Academy of Asian Business 2020
2 ACADEMY OF ASIAN BUSINESS REVIEW, DECEMBER 2020

“We will develop Bibigo into a global brand like McDonald’s.” This was
how CJ Foodville’s CEO introduced the brand. Bibigo was founded in 2010 under
CJ Foodville, a subsidiary of the South Korean conglomerate, CJ Corporation. The
brand name originates from the combination of the traditional Korean cuisine
philosophy ‘bibim’ which translates to ‘mixing’ and represents the blending of
different elements and ‘go’ which symbolizes the brand’s goal of Korean food
globalization. The brand aims to strive for expanding the healthiness and culture of
Korean cuisine across the world.
The brand started with restaurants and then expanded widely into selling HMR
products. With the brand’s famous ‘mandu (Korean dumpling)’ products, it has
earned the title of “the premium brand of Korean mandu.” Bibigo’s restaurant in
London was registered in the 2014 Michelin Guide London and the Beijing branch
was selected as one of the best Korean restaurants in Beijing by the magazine “The
Beijinger” in the “2014 Reader Restaurants Awards.”
Bibigo is a fast-growing subsidiary from a major global company. Despite the
rough challenges the brand had to endure through in its beginning stages, it has
gained remarkable achievements. There were two main key contributors to its
growth: globalization and global-local dilemma resolution. With these strategies,
Bibigo is sustaining its growth momentum. In 2019, the brand’s ‘mandu’ sales
amounted approximately to 789 million USD3(CJ, 2019). However, it was only as
of 2016 when it reached the top sales in the US frozen dumplings market. Thus,
Bibigo has not yet arrived at a level of being classified as a major global brand.
However, as a fast-growing brand, Bibigo comprises the strategies for globalization.
The case study on Bibigo will be focused on the analysis of the past, present, and
future journeys of Bibigo. As the brand is viewed as a positive global enterprise
that is accomplishing extraordinary achievements in the Korean history, through
the research of Bibigo, we hope to find solutions to some deficiencies the brand
had to go through and seek for potential possibilities that may lead the brand to
greater globalization. We also aim to learn and discuss the successful strategies
carried out of the brand.
The Bibigo case study would inspire and encourage future entrepreneurs and
business leaders, as well as students like us. We believe our case study conveys the
story behind the success of the brand which can widen insights and be a foundation
for future Asian start-ups that aim to expand overseas. For researchers and business

3
868,000,000,000 KRW = 789,464,106 USD in Dec. 19 2020 exchange rate
 Bibigo’s Glocalization Strategy 3

learners, this case study will help them uncover differentiated strategies Bibigo has
used for entering the global market.

Company Overview

Company History
Overseas targeting brand Bibigo started its journey in May 2010 under CJ
Foodville. At first, Bibigo started as a Korean restaurant brand and opened its first
stores in Korea, China, the United States, and Singapore. In Bibigo restaurants,
people can choose different vegetables, sauces, and toppings to make their
bibimbap (Channel CJ, 2017). With this unique style of menu, Bibigo had grown
rapidly. In late 2010, CJ decided to add HMR production under CJ CheilJedang
into Bibigo and rebrand it as a Korean restaurant and HMR product brand. In the
same year, Bibigo entered the US HRM market with premium Korean-style
dumpling ‘mandu’. Along with its frozen mandu, Bibigo quickly expanded its
restaurants and HMR products into different countries. With 352 million USD4 ,
Bibigo dumplings ranked No.1 on domestic and the US market in 2016 (DBR Case
Study, 2018). However, unlike the HMR business, the total sales of Bibigo
restaurants were in bad condition. Eventually, Bibigo decided to change its brand
identity to an HMR producer in 2017. Except a few in Korea and the US, all Bibigo
restaurants around the world closed in 2018 (Figure 1).
To ensure further growth, Bibigo acquired various local production companies
such as Schwan’s Company in the US (CJ, 2019). In 2019, Bibigo’s mandu sales
were approximately 789 million USD 5 and overseas sales took about 63.6%
(Channel CJ, 2020).

4
387 billion KRW = 351,978,171.90 USD in Dec. 19 2020 Exchange Rate
5
868 billion KRW = 789,464,106 USD in Dec. 19 2020 Exchange Rate
4 ACADEMY OF ASIAN BUSINESS REVIEW, DECEMBER 2020

Figure 1
Timeline of Bibigo

Current Stage & Sales Forecast

CJ CheilJedang has indicated an upward trend between 2015 and 2019 with net
sales, strong revenue growth, and gross margin (Figure 2). 
Investors are showing strong confidence in expectations after uncertainty. It is
expected that if some uncertainties and negative effects of cash flow due to the
COVID-19 is covered, stabilization will be restored immediately. Then the effect
of improving margin will be visualized by intensive SKU arrangement that has
been advanced around processed foods.
After overcoming the earning shock in 2019, profitability-oriented management
strategies are expected to shine from 2020. Efforts are underway to improve
profitability by organizing low-income channels and streamlining promotion. HMR
product growth rate was not expected to remain high this year, but it is expected
that the previous year's growth rate will be maintained in 2020 due to an increase in
sales caused by the COVID-19 from late January to February. It is noteworthy that
this year's HMR product growth is different from last years. Last year, if new early
adopters led the growth of HMR products, the growth is now increasing in the
absence of new products, and existing products are leading the growth by
expanding their awareness. It is analyzed that this phenomenon is rapidly
expanding around home economy products at a time when consumption patterns of
domestic and foreign consumers are changing significantly due to the COVID-19.
Because of the possibility of the COVID-19 virus mutations or the emergence of
new viruses, people’s concerns about health will consistently rise. Thus, people’s
demand on HMR product is expected to keep growing in the future.
 Bibigo’s Glocalization Strategy 5

Figure 2
CJ CheilJedang’s Financial Performance

Source: WSJ & Samsung Securities Co. CJ CheilJedang

The HMR Industry

HMR is fully or partially prepared food that is ready to be served. Due to lack of
time, skill, and desire to prepare food, more people are looking for convenient
meals. An increase in income level, the entry of women in public affairs, and an
increase in the number of single-person households and double-income families
have influenced people’s preference toward tasty, convenient meals (MinJi Jin,
2019).
In the HMR market, Bibigo’s main products are dumplings. When Bibigo
entered different markets, it adjusted the dumplings’ main ingredients and
packaging to fit the locals. It continued to develop more HMR products such as
side dishes, kimchi, and soup. It has perfectly fulfilled consumer needs and became
a major brand in the Korean HMR market.

Competitor Analysis
Pulmuone
Pulmuone is a company founded nearly 35 years ago by Korean food pioneers
with one focus: the well-being of your family and the environment (Pulmuone).
Through the development of customized products by consumers’ lifestyles, the
company aims to respond quickly to changes in customer needs and establish RTE
(Real Time Enterprise)-based business capabilities to respond to rapid changes in
the environment. It is intended to continuously secure differentiated capabilities by
6 ACADEMY OF ASIAN BUSINESS REVIEW, DECEMBER 2020

organizing complex services that reflect customer needs and developing

specialized services (The Daily Post, 2019).
Since 2011, Pulmuone has implemented a full display system that will disclose
100% of all raw materials and additives used in manufacturing on its website, in
addition to legal labeling of packages. The "Right Food Principle Box" is easily
displayed on the back of the package for consumers to check the principles and
efforts of Pulmuone's “right food”. These illustrations show the entire process of
products being produced and delivered to customers to help consumers understand
them more easily (The Food & Beverage News, 2006).

Nestle
Nestle applies nutritional expertise to promote people's health and well-being. It
also meets the needs of modern consumers with healthy, delicious, and convenient
products. The brand brings premium food innovation to the market based on
consumer insight, pioneering nutrition, and culinary excellence, offering a wide
array of plant-based foods, to be consumers’ preferred choices as they diversify
their diets. Nestle has been able to deliver products to end-users through a broad
distribution network with a broad portfolio of products. Since the brand uses a
multi-channel strategy to distribute its products, developing countries have been
the biggest opportunity for Nestle to penetrate the market. 

The aforementioned are strategies of other companies that Bibigo does not have.
It would be recommended for Bibigo to develop a unique selling point to create
differentiation from its competitors. Bibigo would need to seek competitive
advantages and emphasize elements such as its healthy but convenient food
products for competitiveness. 

Major Turning Points & Company Overview

Turning Point 1: The Change of Brand Identity

Challenge: The Failure of Bibigo Restaurants.
In its early stage, the image of CJ Foodville’s Bibigo was rather closer to a local
‘bibimbap’ restaurant. With its particular strategy of focusing on the target
country’s environment and culture, the brand started to earn stable profits from its
major overseas market, the US and China, which helped the brand open more
stores abroad; by 2016, the brand expanded its branches to four other countries,
 Bibigo’s Glocalization Strategy 7

which are the United Kingdom, Singapore, Japan, and Indonesia. In the following
years, the brand also launched frozen products, such as Korean-style dumplings,
seaweed, kimchi, etc. joining CJ CheilJedang in 2011. Bibigo tried to target busy
office workers to provide a simple and delicious meal with reasonable prices and
fast service. CJ Foodville took the lead in the globalization of Korean food and
gained the title of the most successful localization model in the domestic food
service industry (CJ News, 2016). While it was operating in food courts of
shopping malls and recognized as a healthy fast-casual restaurant that offers good-
quality food in the US market, it was also operating as a casual dining restaurant
(CDR) and acclaimed as a premium health food in the China market (CJ News,
2017).
Although it seemed like the brand expansion was in a solid uptrend, with the
appearance of its competitor ‘Seasonal Table’ and the poor performance of
Bibigo’s overseas branches, the brand had to scale back in the global market
between 2016 and 2017 by closing their restaurants in London, China, Singapore,
and other Southeast Asian countries (Figure 3). These closures were caused by
Bibigo’s consistent losses resulting from its lack of awareness of Korean food by
foreign consumers and its failure to grasp both domestic and global trends. For
instance, in China, there was a strong trend in food delivery services, making it
difficult for restaurant businesses to make a profit. On the whole, the
competitiveness of Korean food in foreign countries was not strong enough,
resulting in a huge deficit in the operation sector and a substantial decrease in the
number of restaurants in late April 2018, leaving only a few stores in the US and
South Korea. Reflecting on its experience, the brand changed the direction of its
globalization strategy by focusing more of its resources in the US and China
markets and approaching HMRs, instead of franchised Korean cuisine restaurants
(Seoul Economic, 2017).
The brand’s restaurants also experienced a deficit in the Korea market, mainly
due to changes in consumer taste. The popularity of family restaurants has been
declining slowly and HMRs from convenience stores have been rising dramatically
since the recent domestic consumer trend has been focused on cost-effectiveness. A
rise in the cost-increasing factors, including the real-estate rent and the minimum
wage, also played a role in recording the net loss of the brand. Its failure as food
restaurant chains is a classic example of Korean food globalization which brought
serious monetary losses as well as psychological damage.
8 ACADEMY OF ASIAN BUSINESS REVIEW, DECEMBER 2020

Figure 3
CJ Foodville’s Foreign Market Profit between 2014 and 2016

Source: Seoul Economic, 2017

Response: Change of Brand Identity (2017).

In November 2017, the brand decided to change its BI, Brand Identity, from a
dining restaurant brand into one that sells refrigerated products, aiming to raise
product awareness in a short period and target overseas markets. In 2016, Bibigo’s
“mandu” took the No.1 spot in the US frozen dumplings market by beating its
competitor, Ling Ling. This result may have contributed to the BI change. The
brand produced a new logo design that represents its philosophy and identity as a
global Korean cuisine brand (Figure 4). A phrase in the logo, “Share Korean
Flavor,” expresses the joy of sharing Korean food and culinary culture (Money
Today, 2017).
With the change of the BI, Bibigo started to offer an array of Korean-style
dumplings, sauces, and frozen meals that is easy for their consumers to enjoy at
home. To create high brand recognition, the brand focused on ‘mandu,’ which is a
refrigerated dumpling filled with various traditional Korean ingredients. However,
Bibigo emphasized to integrate Korean and local ingredients to familiarize the
local people with the fusion taste. Through this, the brand ensured that its products
would be accepted without aversion throughout Asia.
 Bibigo’s Glocalization Strategy 9

Figure 4
Bibigo’s Logo after Change of BI

Source: Bibigo

The growth trend of Bibigo seems to be continuing. As there are positive

outlooks from the change, Bibigo aimed to further expand into foreign markets and
market its prominent ‘mandu’ to build Bibigo as a premium frozen food brand.
Additionally, the company has taken the lead to spread awareness of Korean food
and recently added more HMR food into its product line to strengthen its position
in the sector. In China, Bibigo aims to expand its frozen food portfolio by offering
high-quality products as this ensures Bibigo’s high presence in the market by
creating an “HMR boom.”

Outcome: Results from Changing Brand Identity.

The change of Bibigo’s brand identity in 2017 has proven to be a success. In
2017 the sales of Bibigo ‘mandu’ increased by 119 billion KRW since the previous
year (Figure 5). Due to the recent attention on Korean culture and food, Bibigo
stood out as the striving identity. Additionally, the size of the HMR market in the
US has also been steadily increasing. As a result, in 2018 Bibigo’s global market
sales have proven to have exceeded the Korean market sales. Like the overseas
markets, in the domestic market, Bibigo has been growing as a representative HMR
producer. In the first quarter of 2017, Bibigo owned the most market shares in the
Korean HMR stew market by occupying 45.2% of shares (The Buyer, 2017).
The efforts Bibigo has put into changing its brand identity from a restaurant to a
convenience food producer have been effective. Through efforts put in R&D and
localization, the change of identity resulted in establishing a position as a high-
quality HMR brand. The outcomes have shown higher brand awareness and
strengthened consumer loyalty. Most importantly, there was a significant increase
in sales which proves that the change of brand identity was a successful strategy.
10 ACADEMY OF ASIAN BUSINESS REVIEW, DECEMBER 2020

Figure 5
Domestic & Global Sales of Bibigo ‘Mandu’.

Data retrieved from Channel CJ

Turning Point 2: Global Expansion

Challenge: Global Market Expansion Failure.
The undervaluation of frozen products led Bibigo to choose ‘mandu’ as a “killer
item” and branch out to the US market. After inroad into the US market, the brand
attempted to expand further to diverse regions, such as the UK, China, Indonesia,
etc. Despite the efforts, its achievements did not exceed expectations, leading
Bibigo to step out of the global market. At the time, South Korea was suffering
from the loss of its status as a foot-and-mouth disease (FMD) free zone with
vaccination which is essential for a market extension. Many of Bibigo’s frozen
food products were produced in factories in Korea and exported overseas; however,
as the country was banned from exporting meat, sky roads for Bibigo dumplings
were blocked as well.
CJ CheilJedang tried to push for the rapid settlement of the market through
M&A with local companies as it would help the company secure plant equipment
in a short period and guarantee better access to the US distribution network.
However, due to the low recognition of Korean brands in the overseas market, CJ
CheilJedang was rejected with M&A intentions and was unable to receive foreign
investment (DBR Case Study, 2018). Since localization is such a time and
resource-consuming task that is difficult to achieve complete success, CJ
CheilJedang tried to reduce unnecessary costs by acquiring its way of entering the
market, which would also greatly reduce the probability of failure in its global
expansion.
 Bibigo’s Glocalization Strategy 11

Response: Implementation of Glocalization Strategies.

For successful overseas expansion, In general, the brand standardized its
production and development processes, but customized ingredients and packages of
products considering each countries’ cultural characteristics and diet preferences.
In other words, global localization, or glocalization, was one of the strategies of
Bibigo.
As a part of overseas expansion, Bibigo engaged in active R&D as well as
production facilities. In 2011, when Bibigo entered the Chinese market, there were
three major Chinese food makers in the industry accounting for 85% of the market.
However, Bibigo opened booths within supermarkets in Guangzhou where
consumers could try out its products for free. Despite not being a familiar
marketing strategy in the China market, it turned out to be a success by ranking at
the top in the dumpling product charts in approximately 40 stores and supermarkets
in Guangzhou by 2017 (DBR Case Study, 2018).
Bibigo localized its products through ingredients and packages modification.
Local diets were considered when modifying their ingredients. For instance, corn
and Chinese cabbage were used for Chinese consumers to make ‘mandu’ chewy;
extra pork in filling for ‘mandu’ in Russia market made the product like Russian-
styled dumpling ‘pelmeni.’ For the Japanese market, Bibigo made ‘boiled
dumplings’ for consumers to use in stews or soups. ‘Seafood dumpling’ and ‘meat-
and-corn dumpling’ were customized for consumers in the Vietnam market. As for
package localization, small packs of products were packaged in a big paper
package for American consumers who have mass consumption habits and a plastic
tray for packing dumplings separately to emphasize the luxurious design of the
package to Chinese consumers.

Figure 6
Bibigo Global Commercial Screenshot

Source: CJ News, 2019

12 ACADEMY OF ASIAN BUSINESS REVIEW, DECEMBER 2020

Bibigo’s resolution of the Global-Local dilemma, resulting in a sharp fall in its

profits due to the rise of the cost of production through matching the production
method, is another crucial operation and marketing strategy that helped Bibigo lay
the foundation of its expansion into the overseas market. 

Outcome: Current Status & Future Plans.

Globalizing groceries is difficult as maintaining its unique identity and attracting
the natives are required simultaneously. There must be an intriguing combination
of novelty value and familiarity in the product. However, after facing various
difficulties, CJ CheilJedang and Bibigo successfully proceeded with the
globalization of Bibigo’s ‘mandu’ (DBR Case Study, 2018).
With M&A, plant renovation, and product development experiences, Bibigo was
able to build new markets in Asia and Europe. To be specific, Bibigo entered the
market in China through a joint venture with a powerful Hong Kong distributor. At
the time, although the image of the Korean brands was improved and Chinese
consumers were interested in South Korea with the Korean wave, it was difficult
for Bibigo to begin M&A with local businesses. Even when Bibigo entered the
China market with its Hong Kong distributor DCH’s suggestion, it was difficult to
secure a certain percentage of the market. However, with know-how acquired
through the US market expansion, Bibigo managed to manufacture localized
products in a short time by investigating Chinese consumers’ living habits and
dumpling preferences (DBR Case Study, 2018).
The Korean Wave has contributed to the globalization of Bibigo. The brand
released an advertisement campaign, “PSYgo Bibigo” featuring the popular Korean
singer, PSY. The responses from this campaign returned positive outcomes
including a significant increase in brand awareness on a global scale (Figure 7).

Figure 7
Celebrity Endorsement

Source: CJ News, 2013

 Bibigo’s Glocalization Strategy 13

The rise of the popularity of the South Korean football coach Park Hang-seo has
contributed to the Korean Wave, amounting to around 20 billion KRW of ‘mandu’
revenue in 2018 (Korea JoongAng Daily, 2019). The continuous popularity and
interest of the Korean Wave in foreign countries has triggered a ripple effect of K-
food in the global market.
As a result, with an increase in worldwide sales, its products were well received
in the marketplaces (Figure 8). Bibigo sustained its growth trend with its sales in
overseas markets and by 2017, its foreign sales accounted for 47.6%. In 2019,
Bibigo’s foreign sales rose to 63.6% of its net sales (Figure 5). As a next step,
Bibigo is carrying forward a two-track strategy by providing Korean-styled
dumplings and localized dumplings in its overseas markets. In 2020, CJ
CheilJedang aims to post more than a trillion KRW with dumpling in annual global
sales, ranking the first in the world dumpling market (CJ News, 2019).

Figure 8
Geographic Locations of Bibigo’s Exports

Source: Bibigo

Turning Point 3: The Acquisition of ‘Schwan’s Company’

Challenge: Steps to Globalization.
In order to move a step closer to achieving global success, Bibigo has taken the
action to acquire a foreign company. The reason for selecting a US company can
be simplified into two main reasons. First, the US is showing great interest in
Korean culture. Specifically, the millennial generation shows a large interest in the
so-called Korean Wave which consists of Korean culture, food, and entertainment.
Another component of acquiring Schwan’s Company is the food market of the US.
As the US is home to the world’s largest food market, CJ CheilJedang views it as
14 ACADEMY OF ASIAN BUSINESS REVIEW, DECEMBER 2020

strategically significant to enter this market. Because the frozen food market is
already developed in the US, it is currently showing low growth; however, the
Asian food market is exhibiting consistent growth at 4~5% (CJ CheilJedang, 2019).

Response: Successful Acquisition.

In February 2019, Bibigo’s parent company, CJ CheilJedang acquired ‘Schwan’s
Company’, a US firm founded in 1952 that specializes in frozen food, for $1.84
billion. This marked CJ CheilJedang’s largest overseas acquisition until 2019.
As one of Bibigo’s objectives is to capture the US market, the acquisition of
Schwan’s Company establishes a foundation for ‘globalization of Korean food
culture.’ The acquisition allows CJ CheilJedang to secure the Korean food
expansion platform by combining food production and distribution infrastructure in
addition to more R&D opportunities in the US. The tactic targets to dominate the
US market to produce food that comprises the characteristics of international and
Korean food culture together to establish a new food genre. This will be done by
focusing on localization with R&D, which would bring outstanding
competitiveness to the brand. Additionally, there will be more opportunities for
Bibigo to be distributed to major retail channels at a quicker rate.

Outcome: Consequences of the Strategic Transaction.

The outcome of this transaction was an increase in sales and growth. In 2019, CJ
Corporation showed a 19.7% increase in consolidated sales from its previous years.
Various subsidiaries contributed to its sales. However, the effects of the acquisition
of Schwan’s Company contributed to achieving high global growth (CJ Annual
Report, 2019). This remarkable transaction is playing a crucial role in widening the
horizons of Korean food, thereby expanding the brand to a major global one.

Success Factors

Innovative Strategies
Three major innovative strategies helped Bibigo reach the top of the HMR
market in different countries: advertisement, linchpin strategy, and Global-Local
dilemma solving strategy. The first strategy is trendy, straight-forward
advertisements. Bibigo has hugely invested in advertising even after it reached the
top of the HMR market. To remain as the best dumpling provider to customers,
Bibigo advertised on a large scale through TV, YouTube, and outdoor billboards.
As the Korean No.1 dumpling brand, Bibigo has made more TV advertisements
 Bibigo’s Glocalization Strategy 15

than before to imprint itself on people’s minds. The TV advertisement emphasizes

‘premium,’ which is Bibigo's strategy that changed the frozen dumplings’ image
from cheap and unhealthy to premium and well-being. Since most people already
know the taste of dumplings, the advertisement focuses on the product rather than
the advertisement model. Out of the total running time of 15 seconds, the first 11
seconds of the ad shows the appearance of dumplings, which emphasizes the thin
dumpling skin and solid stuffing; the remaining 4 seconds shows the model (Figure
9). The cleanness and simpleness of the advertisement had successfully caught
customers’ attention. 

Figure 9
Bibigo TV Advertisements

source: Bibigo’s‘BibigoGlobal’ YouTube Channel

Bibigo used TV advertisements to attract Korean customers. However, it was

difficult and expensive to make TV advertisements for all countries that Bibigo
entered. To minimize the cost, Bibigo decided to make a global channel on
YouTube so that all customers around the world can easily watch its videos. The
name of the channel is ‘BibigoGlobal’, and there are various videos uploaded
including Bibigo TV Commercial (TVC), K-Food dictionary, and Bibigo recipe.
Bibigo TVC is a playlist of all TV advertisements and YouTube advertisements
that have been played before. The second playlist K-Food Dictionary includes
information about Korean food such as the food’s simple history and recipe. It
helps foreigners to be more familiar with Korean food. Lastly, Bibigo Recipe
videos consist of various recipes that use Bibigo’s products.
In addition, Bibigo actively utilizes outdoor advertisements. The brand put
dumpling advertisements on the outdoor billboards at bus stops and installed
warmers on top of the billboard. With warmers, dumpling advertisements looked
warmer and more delicious. The effect of the ads was great during winter; people
gathered around warmers looking for warmth, and they naturally saw Bibigo’s
dumpling advertisement.
16 ACADEMY OF ASIAN BUSINESS REVIEW, DECEMBER 2020

Figure 10
‘BibigoGlobal’ YouTube Channel

 source: Bibigo’s ‘BibigoGlobal’ YouTube Channel

The second Bibigo’s innovative strategy is the linchpin strategy, which is using
one specific and specialized product to symbolize the whole brand. Bibigo has
hugely invested in dumplings to find the best taste, packaging styles, and marketing
strategies. It makes people remember frozen dumplings when they think of Bibigo,
and Bibigo occurs to them when they think of frozen dumplings. After Bibigo
reached the top of the HMR market with dumplings in South Korea and the US, it
introduced other products such as kimchi, sauce, and other frozen meals. As there
was a certain credibility built with Bibigo among consumers due to its dumpling
products, consumers purchased its new products without any hesitation. Bibigo’s
linchpin strategy with frozen dumplings successfully built trust between customers
and the brand.
Lastly, Bibigo had successfully solved the Global-Local dilemma with its unique
strategy. The Global-Local dilemma, immense cost pressure accompanied by
localization, is a big challenge to every company wanting to make inroads to the
global market (InterBiz, 2018). When Bibigo entered the global market, it also
underwent the Global-Local dilemma. Bibigo had successfully solved the dilemma
by using the same production method but with different main ingredients and
package styles. Its special strategies can help other brands wanting to enter the
global market.

Bibigo’s Successful Localization

CJ CheilJedang thought that to catch up with major companies already active in
the local market, it should reveal the distinctiveness of Bibigo dumplings. For this
reason, CJ CheilJedang has allocated global R&D human resources to the field and
expanded its investment in product development. As a result, CJ CheilJedang is
 Bibigo’s Glocalization Strategy 17

releasing products that are strictly tailored to local people’s eating habits and tastes.
When CJ CheilJedang entered the U.S. market, it was difficult to find localized
products in consideration of American tastes. This is because most of them used
recipes that suit Chinese tastes. However, the company thought that it would be
able to differentiate itself from existing companies if new products consider the
taste and nutrition that Americans want. 
Since CJ CheilJedang found that Americans prefer "healthy” taste, they added
chicken instead of pork and added chili pepper, which is a representative of Asian
flavor. The size of the dish is also reduced to bite-sized pieces so that anyone can
easily eat it and it can be applied to salads and whole dishes. ‘Mini-Wonton,’ the
first product developed through continuous localization efforts, had successfully
settled in the market and played a significant role in promoting Bibigo throughout
the US. 
CJ CheilJedang’s unique "localization strategy" has made tangible achievements
in the Chinese market too. When Bibigo advanced into China in 2011, it faced a
difficult problem. At that time, three huge food companies in China accounted for
85% of the dumpling market (DBR Case Study, 2018). Chinese consumers were
not very interested in Korean products as they had already insisted only on familiar
Chinese brands, and CJ CheilJedang's R&D team figured out the reason why
Chinese people did not give a good rating on dumplings’ flavor. It was chives in
dumplings that Koreans like. The team also found that most dumplings in China
contain corn and cabbage; considering the mix of ingredients, the team thought
about a new combination considering the difference in local ingredients’
characteristics from Korea. Thus, a new Bibigo dumpling has been created for
Chinese consumers, and it has captivated local people with a healthy and familiar
taste.
CJ CheilJedang has localized not only its taste but also its packaging material.
Although the logo and design of "Bibigo" have standardized, the packaging varies
from country to country.
Some are packed in paper boxes, some are packed in plastic bags, and the size of
dumplings are all different based on the country. When deciding how to pack
dumplings, Bibigo first considered each countries’ income level, lifestyle, and
consumers’ willingness to pay and then set the price so that it can determine the
size of the package and the number of dumplings inside each package. Considering
the mass consumption habits of American consumers, Bibigo packed four packs of
dumplings in a big paper package. Because Chinese consumers set a high value on
the luxurious appearance of products, Bibigo emphasized the design of the package
and used a plastic tray for packing dumplings separately.
18 ACADEMY OF ASIAN BUSINESS REVIEW, DECEMBER 2020

Figure 11
Bibigo Dumplings with Different Packages

source: Channel CJ, 2019

CJ CheilJedang did not stop production of the products of the local

manufacturers it acquired. Rather, it incorporated into Bibigo by utilizing its
original products. Instead of replacing products that already have product
awareness and brand power with products developed by Bibigo, the company has
made them into Bibigo assets and maximized the synergy effect. The strategy gave
the advantage of allowing the company to promote its newly developed flagship
products naturally and indirectly throughout the local brand products.
Localization is not an easy task. This is because it is not only difficult to grasp
the tastes of local people, but also if the tastes of locals are combined, the unique
identity of companies, which is the source of differentiation, may disappear.

Bibigo’s Differentiation Strategies

The success of CJ CheilJedang is attributed to its acquisition and management.
The company's acquisition method, which puts more weight on intrinsic value
rather than market value, was also successful, and its post-acquisition management
policy was excellent.
Besides, "CJ Cau Tre" and "CJ Ravioli" of Vietnam and Russia, which were
acquired by CJ CheilJedang in 2016 and 2017 (DBR Case Study, 2018), were
relatively easy to localize because the company had resources, brand awareness,
and influence to help with overseas market settlement. The two corporations also
secured major regional distribution networks based on their brand influence,
making it easier for Korean dumplings to display at local supermarkets.
 Bibigo’s Glocalization Strategy 19

CJ CheilJedang also places the most importance on the opinion of dumpling

experts during the M&A process. Generally, a M&A team of financial experts in
most common companies leads the search for M&A targets, due diligence, and
contracts. When the contract is completed, experts in the business sector lead PMI,
Post-Merger Integration, and management. However, CJ CheilJedang's method was
different from that of other companies. Product experts have played an important
role in the overall M&A process, including a frozen food planning and marketing
department and a researcher at an R&D center that studies dumplings. Breaking
away from the conventional practice of focusing on financial factors such as the
current market value of the acquired company, the acquisition and operation team
of CJ CheilJedang as product experts has established and implemented M&A
strategies intensively analyzed the production and operation of dumplings, the
business value and potential of its main products. This was impossible without a
sincere understanding of the dumpling market and the production process.

Current Challenges and Recommendations

The first challenge is the difficulty of using product placement advertising. The
greatest advantage of this type of advertising is to be able to see the maximum
effect of product exposure at a relatively low cost because the initial advertising
cost is set regardless. Also, it allows the brand to promote and if fortunate, can
become viral on social media. However, just because PPL advertising has a
relatively low cost doesn’t mean that the cost is low. According to a CJ
CheilJedang’s spokesperson, product placement marketing is effective on shows
that are popular; however, the advertisement cost is very high. Therefore, it gives
hesitation when considering within the budget. Our recommendation is to utilize
social media such as Bibigo’s Facebook or Instagram accounts and influencers as
channels of marketing as it is less costly. In terms of content, we suggest Bibigo to
emphasize its special ingredients and advantages of Korean food in general to
attract the attention of consumers. The anticipated outcomes of this may be the
enhancement of the positive image of Korean food and raised awareness to a larger
audience on social media platforms as social media marketing is an important
strategy to build the brand stronger and increase sales.
The second challenge is the change in the food trends due to the COVID-19
pandemic. Every day, the Coronavirus is causing numerous deaths and infections
worldwide, and it has changed a lot of our lives in 2020. Since there is currently no
20 ACADEMY OF ASIAN BUSINESS REVIEW, DECEMBER 2020

vaccine against COVID-19, many people are concerned about their health than
before. The relationship between the pandemic and healthy eating habits is
undeniable. In order to maintain that, intaking adequate nutrition is an absolute
must. Our recommendation is to add ingredients or vitamins that can boost
people’s immune systems. Since vaccines for COVID-19 have not yet been
developed, the immune system, the system that supports the body’s ability to
defend against the virus, is the best defense. COVID-19 vaccines may be
developed in the future, but the possibility of the COVID-19 virus mutations or the
emergence of new viruses cannot be overlooked. People's interest in healthy eating
habits will continue to rise, whether the pandemic is over. When current shoppers
purchase food products, they try to read the label of the product, understand what
ingredients the food contains, where the food comes from, and what kinds of food
should be avoided. Thus, the company should implement a more detailed
ingredient labeling system in order to let consumers perceive how certain
ingredients of their products have an important effect on enhancing the immunity
to fight off viruses and other health abnormalities.
Another recommendation is to develop products with long expiration dates
without adding hazardous chemicals. Because people cannot go out often, they
tend to panic buy daily necessaries or HMR products at once and keep them in
storage. If they buy food products with long expiration dates, then they would not
have to worry about food spoilage.

Outlooks and Future Directions

Outlooks for Bibigo’s Expansion into Overseas Markets

The brand has achieved remarkable achievements in the domestic and foreign
markets; however, it is aiming for further success in the overseas markets by
continuing to invest heavily in R&D, M&A, and joint ventures. The brand aims to
focus its R&D on new product development, innovative manufacturing techniques,
and localization strategies. by continuing to invest heavily in R&D, M&A, and
joint ventures. The brand aims to focus its R&D on new product development,
innovative manufacturing techniques, and localization strategies.
In the US market, Bibigo aims to build a new production base in the Western
part of the country. Furthermore, with the help of acquired companies like
Schwan’s Company, Bibigo intends to expand its distribution channels and focus
on diversifying the supply of its products to B2B retailers. In the China market,
 Bibigo’s Glocalization Strategy 21

Bibigo will concentrate on localization. The brand will utilize and use alternative
ingredients to develop localized products to satisfy the tastes, preferences, and
culture of the Chinese consumers. As in the case of Vietnam, Bibigo projects to
continue to push forward the two-track strategy featuring both Korean and local
style ‘mandu.’ Bibigo must prudently implement investments; otherwise, problems
such as monetary losses may occur.

Uncertainty in the Food Industry and Trend

As a food brand, Bibigo’s core business activities will highly depend on the food
and eating trend of consumers. The HMR business is a continuously growing
business segment. The change in lifestyles and an increase in the working
population has strongly influenced the preference for convenience food. According
to Statista, the revenue in the convenience food segment in 2020 amounts to $563.9
billion, and the market is anticipated to grow by 0.3% annually. Accordingly, the
sale of HMR products of Bibigo is also expected to rise with the ongoing trend. It
would be recommended for Bibigo to continue its R&D on new innovative HMR
products to maintain its growth and aim for further success.
Another consumer trend in the food industry is health-conscious eating where
consumers are concerned with the nutrition and health benefits of the product they
consume. As the trend of consumer’s buying behavior is focused more on
becoming aware of the quality of food, Bibigo should focus on providing healthy
but convenient preparation products. Many people have the concern that ready-
made food is unhealthy. According to a study conducted at the Harvard School of
Public Health, consuming instant noodles two or more times in a week raised the
possibility of developing heart diseases and diabetes. Nevertheless, Bibigo has
gained a healthy and well-being HMR food brand image. Using its positive brand
image, Bibigo could gain a unique selling point by developing stronger into a
ready-made food producer that satisfies the health-conscious eating trend of
consumers.

Conclusion

Although there were numerous difficulties encountered throughout its journey,

Bibigo strived to acknowledge its strengths and success factors, such as
understanding consumer needs, implementing innovative marketing strategies, and
localization by dealing with and overcoming its challenges and obstacles. With
these key success factors, Bibigo managed to show its sincere understanding of the
22 ACADEMY OF ASIAN BUSINESS REVIEW, DECEMBER 2020

market and to become a major brand in the Korean HMR market. The brand’s
strategies and know-how may be the cornerstone of other brands’ successes and
great accomplishments.
In the case of Bibigo, knowing the effective, differentiated global market entry
strategies were crucial in extending and vitalizing the global market; the brand
would be an example of a suggestion to other businesses that would help them soar
in the business world when they make inroads to the global market and encounter
the Global-Local dilemma. The case study will inform society of the successful
marketing strategies of Bibigo products and convey that Bibigo’s unique selling
points can be applied not only to the food industry but also to other various
industries.
Bibigo has changed the perception of HMR products by providing a variety of
advantages. With the convenient and timesaving features as well as maintaining
nutrition, Bibigo’s HMR products have offered people to have a more affordable
and a well-balanced meal easily. Bibigo is constantly seeking means of
improvement which has allowed it to grow as an Asian HMR producer globally.
Following Bibigo’s footsteps, we were able to look through the change in food
culture trends. The overarching lesson of this case study is that a comprehensive
understanding of the integrated effects of Bibigo’s globalization and Global-Local
dilemma resolution strategies requires an in-depth analysis of the market and the
development of innovative tools and strategies.

(Received November 20, 2020; Revised December 21, 2020; Accepted December 23, 2020)
 Bibigo’s Glocalization Strategy 23

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28 ACADEMY OF ASIAN BUSINESS REVIEW, DECEMBER 2020

Appendix: Teaching Notes

Significance and Focus of Our Case Study

Our case study on Bibigo focuses on the analysis of the past, present, and future
journeys of Bibigo and the analysis discloses factors and occurrences behind its
success and failure. Although there were numerous difficulties encountered
throughout its journey, Bibigo managed to show its sincere understanding of the
market and to become a major brand in the Korean HMR market with its unique
key success factors. The brand’s strategies and know-how may be the cornerstone
of the brand’s successes and great accomplishments.

Bibigo has changed the perception of HMR products by providing a variety of

advantages. With the convenient and timesaving features as well as maintaining
nutrition, Bibigo’s HMR products have offered people to have a more affordable
and a well-balanced meal easily. Bibigo is constantly seeking means of
improvement which has allowed it to grow as an Asian HMR producer globally.
Following Bibigo’s footsteps, we were able to look through the change in food
culture trends.

As the brand is viewed as a positive global enterprise that is accomplishing

extraordinary achievements in the Korean history, through the research of Bibigo,
we hope to find solutions to some deficiencies the brand had to go through and
seek for potential possibilities that may lead the brand to greater globalization. We
also aim to learn and discuss the successful strategies carried out by the brand.

Major Lessons and Implications for Students’ Future Careers

Students can learn three characteristics of Bibigo for their future careers:
differentiated thinking, firm decision making, and fast responses to crises.

First, having differentiated thinking is essential to students. Bibigo has fulfilled

various customers’ needs with differentiated strategies and gotten ahead of other
companies. Like Bibigo, students should differentiate their thinking from others so
that they can quickly understand others’ demands. It will help them build a clear
career path and position their value in the job market.

Second, they must learn to make firm decisions. Responding to deficits of

restaurants, Bibigo firmly changed its brand identity which led to great success.
After sufficient research, students should trust themselves and make definite
 Bibigo’s Glocalization Strategy 29

decisions whether they face an opportunity or a crisis. These decisions will lead
them to seize opportunities and overcome difficulties.

Lastly, students should have fast responses to crises. During a crisis, time moves
fast, and it is important to grasp problems and present solutions to them. Like
Bibigo, as long as students maintain their composure and understand their ability,
they will quickly devise a plan to overcome the crisis.

Teaching Tips

This case study would be best used for students to understand the problems faced
by the food industry and a successful business strategy for localization. It is
recommended to start the class with a brief introduction to the HMR industry and
its current trends. Next, list Bibigo's turning points in chronological order and
explain how they dealt with the problems they faced. Then, highlight Bibigo’s
special business strategies by referring to the examples mentioned in this case
study. Finally, discuss future challenges and potential recommendations.

Classroom Discussion Questions

1. Elaborate on which turning point contributed the most to Bibigo’s overall

growth and success.

2. Considering the strategies Bibigo applied in overcoming its challenges in its

major turning points, discuss other potential tactics Bibigo could have utilized as
solutions.

3. Other than the challenges stated in the report, discuss potential challenges that
Bibigo may face in the future.
30 ACADEMY OF ASIAN BUSINESS REVIEW, DECEMBER 2020