Brand Positioning: Ajisen builds a high-end brand: Wakayama

Fast-food chain Ajisen (China) is strategically enhancing its brand positioning with a significant move into the high-end restaurant market. The inauguration of the first restaurant, named Wakayama, situated in the prestigious International Finance Center (IFC) of Hong Kong, reflects Ajisen’s deliberate shift towards a more upscale and sophisticated culinary landscape. This strategic venture marks a pivotal moment in Ajisen’s brand positioning, signaling its commitment to catering to a discerning and upscale clientele. The move underscores Ajisen’s ambition to redefine its market presence and elevate its brand positioning within the competitive restaurant industry, capturing the attention of a more refined audience in the process.

Ajisen (China) holds an exclusive franchise for Japan’s renowned Ajisen branded restaurants across mainland China and Hong Kong. Since its inception in 1996, Ajisen has established itself as a trailblazer in delivering top-notch Japanese noodles and dishes. As the sole franchisee, Ajisen (China) has earned a stellar reputation, positioning itself as one of China’s leading operators in the fast-food restaurant chain industry. The brand’s commitment to high-quality culinary offerings has contributed to its prominence, solidifying Ajisen’s standing as a key player in the Chinese market and reinforcing its role as the primary gateway to authentic Japanese cuisine for discerning consumers.

Wakayama, the brand name of the high-end restaurant, is derived from Japan’s ancient scenic capital Wakayama, the birthplace of Japanese cuisine known as the “Treasure House” of food materials. This name conveys the noble and elegant image of the new restaurant and its rich cultural background.

As a new brand catering to the high-end market, Wakayama’s target market is the senior staff of large companies, as well as other high-income consumer groups. Thus, it will be located in high-grade commercial areas or five-star hotels to fit its brand positioning.

In its pursuit of refined brand positioning, Wakayama seamlessly merges ancient culinary techniques with cutting-edge technology, a culmination of two years of dedicated research and development. Collaborating with seasoned Japanese cooking experts, the restaurant prioritizes all-natural, no-MSG cooking methods. The result is a meticulously crafted menu featuring delicious and visually stunning soups and food offerings, specifically designed to meet the discerning requirements of high-end consumers. Wakayama’s commitment to this fusion of tradition and innovation not only showcases culinary mastery but also strategically positions the brand as a unique and sophisticated dining destination, elevating its brand positioning to cater to the refined tastes of its upscale clientele.

The dining experience at Wakayama positions itself distinctly with an average cost per person ranging from 150 to 180 RMB, a notable contrast to the approximately 37 RMB spent at Ajisen Ramen. As per a report from China Merchants Securities (HK), Wakayama IFC boasts an impressive gross margin exceeding 70%, surpassing the general Ajisen Ramen shop’s net profit margin. Notably, in its inaugural month, Wakayama achieved a substantial sales volume, reaching 1.4 million Hong Kong dollars. These financial metrics underscore Wakayama’s success in catering to a higher-end market segment, exemplifying its effectiveness in brand positioning and financial performance compared to the more mainstream Ajisen Ramen establishments.

Although Ajisen (China) is optimistic about its high-end market in 2010, they should pay attention to their brand strategy. After all, it’s no easy task to build a luxurious brand image of a high end restaurant derived from a fast food noodle shop!