China marketing can be understood from three aspects:
Micro-understanding: marketing is how to master the mind of the target consumers, or do the ideological work of the target consumers. To put it simply: understand human nature and understand people's hearts.
Macro understanding: Marketing is China's "Business Way"+American-style theoretical framework.
Understanding from the characteristics of China: China's concept+marketing tools (including: 4P, 4C, etc. ).
[Editor] China Marketing Trilogy
Strategic Trilogy: Opportunity Orientation, Renewal and Strategic Decisive Battle
The strategy of the primary stage of an enterprise is to find opportunities and find market gaps. Finding opportunities is actually a tactical action. There is no need to formulate a standardized strategy. The core goal of an enterprise is survival, and tactical action is strategy.
When entering the development stage, enterprises can formulate strategies or not in order to seek rapid expansion, still base themselves on the original market, update products, channels, brands and management, and occupy the market and expand the scale through continuous upgrading. At this time, expanding the scale and strengthening the enterprise is the top priority, "be big first, then be strong".
In the mature stage, the enterprise has entered the decisive battle stage. In order to get a good seat in the decisive battle, enterprises must formulate a clear strategy to solve the problem of "who am I". "Where am I now?" "Where am I going?" These three questions, and find their own core competitiveness and differences, and launch a strategic decisive battle with their opponents. What we should pay special attention to here is that the competition in the mature stage is no longer a one-stroke competition, nor is it the gain and loss of one city and one pool, but the overall competition of enterprises and even the group competition of the whole value chain.
Let's take a look at the development track of Wahaha and experience the trilogy of corporate strategy. At the earliest time, Wahaha started from "children's nutrient solution" and turned to "children's fruit milk", which became an instant hit. These two tricks are beautiful tricks to find opportunities; Since then, Wahaha has relied on the strategy of "moderately ahead, first follow-up", instead of its own innovation, relying on a strong distribution network to follow up the innovation of competitors. From pure water, eight-treasure porridge to Longjing tea to recent activation, it has continuously upgraded its products and rapidly expanded its scale, becoming the largest beverage enterprise in China with the total output of beverages in China exceeding that of Coca-Cola. Later, Wahaha formulated the strategy of "all-beverage company", established a joint venture with Danone, and launched an all-round decisive battle with Liangle, Uni-President and Master Kong in the China market.
Product trilogy: single-point breakthrough, multi-point siege, subdivision coverage
In the initial stage, products should strive for a single breakthrough. This single point does not mean that only one product can be made, but that the positioning or concept of the product must be single. At the beginning of entering the market, enterprises can't operate "multi-products and multi-channels", and generally choose a core product (or a product series dominated by a core product) to enter the market. In product positioning and brand positioning, we can only choose an accurate positioning, that is, to be "category first". By pooling resources, we will strive to gain a leading position in a local market or market segment and achieve a single breakthrough. In the initial stage, the product encountered many problems, and the single product was the most powerful.
In the initial stage, the enterprise has achieved the leading position in the local market, but it does not mean that the enterprise has achieved the leading position in the whole market. Just as "Yake V9" has achieved 9 1% market share in vitamin candy, it does not mean that Yake Group has become the first in the whole candy industry. Yake must extend its products if it wants to be the first in the whole candy industry.
Since then, Yake Group has successively launched "Didi Ditofi" and "Yake Yiya Xylitol", which has further become a strong brand in other related market segments. In 2006, Yake Group has become an important enterprise in China candy industry. This is the "multi-point siege" strategy of the product in the development stage.
After the stage of "single-point breakthrough" and "multi-point siege", the products of the enterprise have gained the competitive advantage in the market. However, competitive advantage does not mean the consolidation of brand advantage and consumer base. It is necessary to further subdivide the market by meeting the needs of consumers, launch related products in each market segment, and gradually develop from the original "accurate brand positioning" to consumer loyalty, so that consumers can buy their own products in each market segment, establish real brand positioning and loyalty in the market, occupy all market segments, further expand their sales and reduce their competitors' living space. This is the "subdivision coverage" stage.
For example, Yake Group not only launched new products in vitamin candy, milk candy and other market segments, but also launched products in soft candy, pine candy, cowhide candy, QQ candy, fruit candy and other market segments, occupying the market in an all-round way.
Channel trilogy: extensive period, expansion period and intensive cultivation period.
In China market, thrust is much more important than pull, and "channel-driven enterprise" has become common sense. Distribution density and channel arrival rate are the key elements of marketing.
In the early days, the brand's pull was very small, and the enterprise was almost entirely driven by channels. At this stage, enterprises should adopt the channel establishment method of "extensive planting and thin harvest", establish nationwide channels, and then distribute products to the whole country first. At this time, they can adopt the strategy of "entering medium-sized terminals" or "high-impact terminals" and "building momentum in the center and taking quantity in the periphery".
The management and maintenance of channels also adopt extensive management methods. To make full use of the network, capital and human resources of dealers, we mainly rely on dealers to open up markets and distribute products. Enterprises only need to do a good job of "receiving orders, collecting money and supporting the market".
In the development stage, the brand has gained a certain popularity, and the brand is attractive to consumers and distributors. Channel thrust is similar to brand pull. Enterprises should not only vigorously shape brand credibility, but also expand channels and fight on two fronts.
At present, the channel expansion is mainly to select key markets and tilt the focus of policies to key markets. In terms of market support and even the establishment of branches, enterprises should take key markets as their base areas, intensively cultivate some key markets, and at the same time quickly enter relevant sub-channels to distribute their products in major channels, such as canteens and large supermarkets.
In the mature stage, the influence of corporate brands is growing. In the market, the brand has a strong appeal, and the role of brand pulling exceeds the channel for the first time. At this time, it doesn't mean that the channel is neglected, and the channel is still very important.
Because the homogenization of products is very serious in the mature stage, the important differentiation means of enterprises is the operation of channels. At this stage, enterprises should carry out in-depth distribution, and the sales focus will sink in an all-round way. They should set up branches or offices in important cities, carry out terminal direct sales in core cities, and carry out the "direct sales+distribution" model in second-and third-tier cities. In the third-and fourth-tier markets and even rural markets, the channel model of "distribution-oriented" should still be implemented. In the secondary, tertiary and tertiary markets, enterprises should control core distributors, establish marketing value chain, conduct in-depth distribution with distributors and intensively cultivate terminals.
Trilogy of marketing organization: headquarters system, base system and all-round sinking system
In the early days of the establishment of an enterprise, the enterprise should establish a strong marketing headquarters and concentrate all its personnel and resources at the headquarters. There is no need for enterprises to set up branches elsewhere, or even to set up a market at headquarters. Everything revolves around the model of "strong sales, streamlined organization and full responsibility of salesmen". Enterprise marketing agencies can be said to be commercial vagrants, and their functions are mostly: "receiving orders, collecting money and attracting large households". At this time, heroic salesmen are needed within the enterprise marketing organization, which can help enterprises attract large households. Marketing organizations in the development period should improve the personnel functions of the marketing department, and at the same time set up offices or branches in the core key markets, so that the marketing organizations will partially sink. The company headquarters has invested heavily in regional branches and strengthened its control.
In the mature stage, enterprises should carry out in-depth distribution, which emphasizes the professional quality and skills of salespeople. It requires the salesman to change from the original business of "taking orders, collecting money, and soaking up large households" to the customer consultant of "providing management system solutions", and from a stray soldier to a professional player, providing market information, order planning, logistics and distribution, account management, promotion implementation and store management for dealers and terminal bosses. How to transform a group of stragglers into an efficient and professional marketing team is a difficult problem for enterprises.
In the stage of deep distribution, enterprises should emphasize the strength of the team. At this stage, enterprises do not need heroic salesmen, but only ordinary people, so that a group of ordinary people can make extraordinary achievements. Therefore, the burden on enterprises is extremely heavy. It is necessary to select the right people, formulate a perfect process and management system, strengthen the training of salesmen, and let the business team finally undertake the important mission of deep distribution.
[Editor] Four Characteristics of China Marketing
Enterprise is brand, and brand is enterprise.
In China, many social functional departments are not perfect, such as finance and capital market, such as the cultivation of high-end talents. Enterprises in China are not only enterprises, but also help the government to undertake some social and administrative responsibilities. China enterprises are not pure enterprises, but semi-social enterprises. First of all, China's communication infrastructure is underdeveloped, and even many places don't even have telephones. This makes it difficult to spread product information and lacks a mechanism to prove whether the seller's statement is reliable. Government regulators can't classify products, and when products don't meet the demand, consumers can't find compensation mechanisms to seek protection. In this way, the cost of building a brand and establishing a brand reputation is much higher than that of foreign countries. It is particularly difficult to establish a brand, so it is feasible to establish a corporate brand first and then a product brand. In the future, "corporate brand" will be the easiest way to successfully establish a new brand. With the increasing influence of technology, people will rely less and less on their own judgment of a single product.
In almost all product fields, every brand should look for distinctive features in the vague market structure. In the highly competitive China market, powerful dealers and consumers are concerned about price, and product innovation is often copied or ignored. How can we make a brand different and keep the same advantages all the time? One way is to combine part of brand awareness with enterprises. Because of the characteristics of enterprises, it can bring differentiated effects to brands. Therefore, to build a brand in China market, we should also build a corporate brand:
First of all, the brand name of the enterprise is the brand name of the product, that is, the enterprise should take the road of "single brand";
Secondly, enterprises should establish relationships with customers through various means, such as advertising and product packaging.
Third, establish a "trustworthy" corporate image;
Fourth, make the corporate culture and concept clearer and let customers know.
Small enterprises should not be superstitious about R&D, but should be moderately ahead.
In China market, small enterprises want to survive, but they lack strong strength and strong marketing team. What should they do? Relying on advanced products, to be "category first". First of all, small enterprises must carry out product innovation, and only product innovation can lead the way; But it is worth mentioning that focusing on the advanced nature of products does not necessarily mean superstitious research and development. Because for small enterprises, R&D ability is limited, and it is impossible to carry out overall research and development. At the same time, opportunities wait for no one. Small enterprises want to be "fast", but overall, R&D can't be "fast". In other words, small enterprises should not blindly believe in R&D if they want to be ahead in products. Paying full attention to R&D will make small enterprises lose their biggest advantage-"fast". So there is a paradox:
Only by developing products can small enterprises have "product advantages"; However, if small enterprises blindly believe in R&D, they may lose their "fast" advantage. Then, how should small enterprises carry out product research and development and product promotion? Our attitude towards product research and development is moderately forward. It is necessary to develop new products moderately, but this kind of development is not comprehensive research and development, nor is it the research and development of core technologies, because "fast" is more important than "good". The best strategy is "partial imitation, partial creation". Either "core technology imitation, product appearance innovation". We once planned a WNQ fitness equipment, and we suggested that it be innovated. Its core components and technologies mainly come from the United States and Taiwan Province Province, so it is impossible to innovate. What shall we do? Since the core components can't be innovated, we will innovate the appearance of the product and spray the appearance of the equipment into Ferrari red, so that the product will become fashionable immediately. Or "product form" innovation. Geek cookies are not much different from other cookies, but they need differentiation to drive sales. What should I do? The shape of cookies and the shape of the outer packaging are designed as triangles, which will be immediately distinguished when placed on the terminal shelf. Small enterprises should innovate moderately in product research and development and innovation, but not excessively.
Don't be overly superstitious about consumer surveys
Foreign brands pay special attention to consumer market research when operating in China market. Many domestic brands should learn from them. We suggest that domestic brands, especially small and medium-sized brands, should not be too obsessed with consumer surveys.
First of all, China has a vast territory, with great differences in culture and consumption habits between coastal and inland areas, urban and rural areas. Selecting several representative cities in the east, west, south and north of China for sampling survey can not really represent all consumers in China;
Secondly, China's market research is not standardized and scientific enough, and many interviewers and investigators have subjective ideas. Many market research reports are second-hand processed reports, and some people even mixed them in the investigation. There is no strict guarantee for the scientific nature of such reports.
So, how should enterprises conduct market research? We think the best way is for the relevant personnel of the enterprise to go to the market in person, communicate with dealers, communicate with terminals and communicate with consumers. Such information is the most direct and accurate. When Zong Houqing of Wahaha made major decisions, he almost never used the method of market research, and almost always relied on "slapping his head". Why did he dare to "pat his head"? Because he personally runs the market for more than 200 days, 365 days a year. Do you think he still needs a marketing company?
The China market allows diversification.
Because of China's economic development level and consumption consciousness, China has not yet reached the stage of brand consumption, but is still in the stage of product consumption. Most consumers need cheap products, not real brands. They have no loyalty to the brand. In the relationship between brand and market, market comes first and brand comes second. Brands should let the market speak. Therefore, for consumers, the brand has not yet reached the time to buy. This has little to do with what a brand stands for, whether it is diversified, and whether it covers different kinds of products. There is no problem of overdrawing brand assets, and there is no problem of brand disappearance. "Put different eggs in one basket" is still possible at this stage.
The first is the diversification of products. It is more suitable to engage in "all-round product series" than to engage in a single product category. Because China consumers are more changeable and fickle.
Secondly, the diversification of enterprise management. There are still many blank spots in China market. Every blank spot is an opportunity, and every opportunity represents a brand-new category and a brand-new industry. Therefore, opportunistic enterprises are often diversified and strive to seize every opportunity.
Wahaha first made health care products, then turned to drinks, doing very well, and began to make children's clothes, all of which were diversified. Haier has made great achievements in home appliances, but diversified development in computer, medicine, finance, insurance and other industries. Even many little-known China enterprises have defined their main business as "real estate, finance, manufacturing" and so on, which has become a common phenomenon. Can you say that it is absolutely wrong for them to be so "diversified"? It's not all wrong. Because there are still many opportunities in China market, "diversification" still has its rationality in a certain historical stage.
[Editor] Eight Hidden Rules of China Marketing
"China Single Brand" Rule
Law of "Brand Building in China"
Law of "China Product Innovation"
"Chinese management" rule
The rules of "Team China"
"China Channel Driven" Rule
Law of "China Regional Strategy"
China's Law of Diversification
Periodical: bimonthly