Research has found that Chinas dairy industry shows cyclical development with changes in peoples consumption concepts and abilities. The COVID-19 at the beginning of this year has strengthened consumer education on dairy consumption, increased the number of dairy consumers and consumer spending, and generally improved the awareness of drinking milk. This also means that Chinas dairy industry is already facing a new growth cycle.
The development of Chinas dairy industry is approximately a small cycle every 3 years, a medium cycle every 5-7 years, and a large cycle every 7-15 years. Accompanied by the cycle is the cyclical changes in consumption concepts and capabilities, and the cyclical growth of Chinas population, consumption, and market demand determines that Chinas dairy industry will continue to grow accordingly. So how can enterprises achieve new breakthroughs in the face of new development? Recently, Hou Junwei, a researcher at the China Brand Research Institute, conducted an in-depth analysis on the "2020 Brand Dairy Marketing Strategy Forum - New Cycle, New Breakthrough in Growth in Dairy Industry" hosted by Shanghai Ruinong Management Consulting Co., Ltd.
Focusing on advantages to reshape the brand
Enterprises must have a clear understanding of the current situation in order to seize opportunities. Hou Junwei believes that for enterprises, the new cycle also heralds new opportunities for development: firstly, the market opportunities for entry-level dairy consumption in low-level markets and upgrading dairy consumption in high-level markets; The second is the opportunity for urban dairy industry to carry out integrated operation of the primary, secondary, and tertiary industries by doing a good job in experiential marketing and establishing consumer trust; The third is to reshape the brand and defeat disorderly opportunities with value; The fourth is the opportunity for functional products that meet consumers deep-seated needs for health; The fifth is the opportunity for the market to transform towards low temperatures and build core competitiveness around freshness; The sixth is the opportunity to carry out comprehensive new marketing.
The new cycle of the dairy industry means development opportunities, and the key to achieving breakthroughs is first to have clear strategies, and secondly to effectively implement tactics. Many times, the stagnation of enterprise development is not due to a lack of effective tactics, but rather to strategic ambiguity. Most importantly, many business leaders have not yet realized this issue. In Hou Junweis view, enterprises first need to clarify their brand positioning and reshape their brand value system.
The current competition pattern in Chinas dairy market is basically stable. To survive and develop in the fierce competition, it is necessary to identify the unique advantages of brands, focus on advantages, and continue to invest in order to form true competitiveness.
With fierce competition in the industry, homogenization of products has become the norm. In response, Hou Junwei stated that the dairy industry must focus strategically, build a differentiated brand value system, and reshape brand value in order to obtain sustained development momentum.
Make sustainable planning and create super items
So how to build a brand value system and achieve sustainable development of the brand？
Hou Junweis analysis suggests that firstly, enterprises need to create super single products and make sustainable product planning。
Many managers in enterprises want an explosive product, and this concept often arises from the pressure of short-term performance. However, explosive products are always fleeting. In the long run, explosive products cannot bring too much help to the development of the enterprise, but may lead the enterprise to fall into a crisis after reckless progress. "Analyzing the current market situation, Hou Junwei pointed out that the real support for enterprise development is not explosive products, but super single products.
What is a super item? It is a strategic product that can help enterprises achieve both performance and brand rise. This means that super items have characteristics such as sales volume, profit, image, and are in line with consumption trends. The reason why super items can promote enterprise development is precisely because they themselves convey brand value. With the promotion of super single products, the brands influence can be enhanced, which in turn can drive the sales of other products and ultimately improve the overall sales performance of the enterprise.
How to create a super item? According to Hou Junweis analysis, first of all, it is necessary to plan and promote super items.
Make good use of new media, do a good job in new communication, and create a new brand. Hou Junwei proposed that the problem that marketing needs to solve is to make consumers have awareness and trust in the brand and products, generate purchases, and thus form word-of-mouth, all of which require good communication. The fundamental purpose of media oriented products, scenario oriented terminals, as well as roadshows and public relations promotion, is to convey brand value. Through various forms of communication and promotion activities, consumers can participate in the process, gain a good experience of the brand and products, and generate recognition. Therefore, marketing is communication, and communication is promotion.
Hou Junwei also stated that enterprises need to strengthen new types of management, establish market-oriented company mechanisms through backend service front desk. He believes that all aspects of the brand strategy need to be implemented by people. Therefore, efficient marketing management is crucial to the smooth implementation of the brand strategy. From the perspective of departmental functions of enterprises, the marketing department located in the front desk truly creates benefits, while the production, research and development, administrative, human resources and other departments undertake more supportive service functions. Therefore, in order for enterprises to develop and break through in the new cycle of the dairy industry, they must change their management awareness, and transform the entire companys organizational management into a market-oriented management system with the awareness of serving the front desk in the background
For the marketing department at the front end, it is necessary to create value through continuous achievement of goals. How to do a good job of goal management? Hou Junwei proposed a new management concept of "process service objectives", which aims to ensure the smooth completion of objectives through goal oriented process management。
The development of the industry is always constantly changing, and for Chinese dairy companies, they need to take timely measures to respond. Hou Junwei gave his own suggestions for this: firstly, adapt to changes, take advantage of the situation, and adapt to market changes through new marketing systems and organizational management; The second is to utilize change, keep up with the times, make good use of new media, create new experiences, and build new brands; The third is to adhere to long-term principles, adhere to ones own deterministic strategy in the changing era, continue to win customer trust, and continue to build a brand.
Source: China Food News Network
