Chapter 28 I have something to say

Cheng Lie: Expert in China's business execution, chief consultant of Shanghai Shiyou Enterprise Management Consulting Co., Ltd. View: Any strategic transformation that abandons milk is unacceptable to VV Group, because it will mean the sinking of a large amount of investment in the early stage, not to mention that "VV Tianshanxue" has grown into a very interesting milk product brand. review: In fact, the milk products industry has done one thing in the past ten years: change bulk products with a short shelf life into small packages with longer shelf life and sell them on a large scale.Therefore, from the perspective of market perception, there are not many "new" things, insufficient reasons for market premium payment, and single consumption methods are the fundamental reasons that lead to the scale and no profit of milk products.

However, the soy product industry has undergone earth-shaking changes in the past ten years: soybean oil has become popular across the country; VV Soybean Milk made into instant drinks.Because soybeans have undergone deep processing in different ways to meet different consumption patterns, today's soybean product industry continues to enjoy relatively rich profits. Suggestion 1: Regardless of whether in 2000 or 2005, the monopolized market share made VV Group’s speech of “Why no one joins the competition” just reflected the narrow strategic wisdom of VV’s decision-makers.Because VV Group has been looking for the wrong industry reference point for a long time!

VV Group has always positioned its industry reference point as the "beverage industry". Its successful marketing has strengthened the market's recognition of its beverage attributes. That is to say, VV has ignored more market demands while educating the market. Forget to educate yourself. We believe that the success of a product creates a platform for the launch of related products.For a successful product, the way the market is categorized will change fundamentally.The market is no longer classified by age, occupation, gender, etc., but is divided into two categories: VV's market and non-VV's market. Since VV has monopolized 80% of the market, VV's market will be A "pure" market without competition.What an enviable opportunity this is!However, the VV Group is still confused today.The most fundamental reason is that VV's industry positioning has not been adjusted with the arrival of the monopoly fact.

We suggest: VV Group adjusts its corporate positioning to be a bean food expert.Combining different consumption patterns in the market to achieve a multi-format development strategy, not just product diversification within the same format. Suggestion 2: The current milk product industry is an industry that has developed rapidly under the background of government marketing. With the support of the government, milk product companies have fundamentally eliminated milk products through a series of measures such as prohibiting the sale of fresh milk, establishing industry production standards, and access to circulation and sales. The sale of bulk milk has realized the replacement of bulk milk products with small-package milk products, and laid a solid foundation for the national industry monopoly.

Therefore, the current milk products are at best just completing a process of popularization in the market. The intellectual bottleneck of its development lies in the relatively simple way of consumption of milk products. The reason is that Chinese people need a process of acceptance, accumulation and innovation for milk consumption methods and culture. . So far, the consumption culture and ways of milk products have basically been introduced along with the western consumption culture and ways.However, there is no inherent consumer culture in China to connect with it, which leads Chinese people to drink milk like water. Therefore, in terms of consumption methods and market prices, the reference points for Chinese people to consume milk are soy milk and ordinary drinks.

We suggest: change the industry and product reference point of "Tianshan Snow", and keep the brand market demands unchanged.The reference points that can be considered are: the fresh milk content of "milk tea" is between 20% and 40%, and "Tianshan Snow" cheese is a high-end product for some people who get rich first to enjoy, etc. in conclusion: The current soybean product industry is an industry that extends consumption upwards, and the milk products industry is an industry that extends consumption downwards.As a result, the current scale of the soybean milk industry is developing slowly with stable profits, and the scale of the milk products industry is expanding rapidly but with meager profits.VV Group is involved in these two industries at the same time, and it seems to have the feeling of two worlds of ice and fire, but as long as the industry reference point is adjusted strategically, huge business opportunities are in front of us.

1. Comparing with the data estimate of Sany Heavy Industry. 2. The difference between mortar and concrete is that it does not contain coarse aggregate. It can be considered that mortar is a special case of concrete, and it can also be called fine aggregate. 3. Reposted from "Powerful Logic", Issue 9 of "IT Manager World" in May 2004.