Home Categories political economy Case Study (Part 1): How to Survive in China, A Straightforward Comparison of Eight Major Brands

Chapter 14 Is the dragon begets nine sons, or is it a single biography of the ten generations

Zhong Suisui is the boss who is most capable of "giving birth" among Chinese entrepreneurs, while Zong Qinghou is the leader who knows "birth control" best.If Yangshengtang is said to be the nine sons of the dragon, then Wahaha is the single biography of the ten generations. Speaking of Zong Qinghou, everyone knows that he is the head of Wahaha.But when it comes to Zhong Suisui, many people don’t know that he is the owner of Yangshengtang. As for Guibie Pills, Nongfu Spring, Qingzui Lozenges, Nongfu Orchard, Happy Growth, Duo’er Minus, Mother’s Beef Stick... Although everyone They are famous, but it is difficult for outsiders to know their blood relationship—they belong to the Yangshengtang.

Here, the reason why I compare Zong Qinghou and Zhong Suisui is because the brand development strategies of these two companies have gone out of two extremes: Zong Qinghou has a serious brand "birth control" complex, while Zhong Suisui has a serious interest in brand development. The brand "Chaosheng" never tires of it. For enterprises, is it better to have a single brand strategy or a multi-brand strategy?Some people are in favor of the former, thinking that the more prominent a single brand image is, the greater the brand value will accumulate; some people are in favor of the latter, thinking that multi-brand management can disperse corporate risks.So, what kind of brand strategy should the company choose?

Good market opportunities, but also scientific brand strategy planning, so as to create a perfect brand.Wahaha is undoubtedly the "extreme" of single-brand management. From the original milk yogurt to the later purified water, carbonated drinks, dairy products, tea drinks, canned food and other products, they all rely on the brand advantages established by Wahaha over the years.So, is there anything to discuss about Wahaha's single brand strategy?Can an enterprise expand infinitely if it has a strong brand? First of all, let's discuss such a question: Why did Wahaha children's clothing fail?Is the market bad?surely not.

China's children's clothing market has huge profits and broad prospects.But why did Wahaha children's wear fail?Is planning a failure?Or poor channels?Or is the terminal blocked?In fact, these are not the root causes, the crux lies in the mistakes of Wahaha's brand strategy. Who does the brand belong to?Is the consumer; who is the product sold to?Or consumers. Therefore, all decisions of enterprises must focus on consumers, so that products can be recognized and brands can be accepted. Who do you sell children's clothing to?Is it sold to children?wrong!Although children's clothing is worn by children, it is purchased by parents.In many cases for children's products, buyers and consumers are separated.Therefore, when we enter the field of children's products, we must not only understand the needs of children, but also understand the psychology of their parents.

From this observation, it is obvious why Wahaha children's clothing failed.Wahaha has gained a high reputation in the society over the years, but Wahaha's main brand image is based on pure water.What does Wahaha represent?It is popular, ordinary, cheap, etc.; what does a child represent to parents?It is the apple of the eye.No matter how hard or tired I am, I am not afraid, but my children must not suffer a little grievance.Therefore, parents will never let their favorite jewels wear cheap clothes that everyone knows to "show off" everywhere. They are afraid of ridicule and contemptuous eyes, and they are even more afraid of hurting their children's self-esteem, which they cannot tolerate.It can be seen that the possibility for parents to take the initiative to buy Wahaha children's clothing for their children is very slim, so if we can let children ask their parents to ask for it, the sale can be completed, but will these little emperors open their mouths to ask for Wahaha children's clothing?

Recently, Sina.com reprinted a social news article from Dalian Evening News: When the reporter passed by the gate of a school in Dalian, it was just after school. The school was crowded with parents who came to pick up their children. Many parents came by car, so that the school was completely surrounded.While waiting for their parents, several students talked vividly about the car outside the school: what brand, what model, how much it costs, how fast it can go, how it performs...it sounds pretty good. One of the students told his companion how good and expensive his father's BMW was, and that this car and that car were far worse, with a look of disdain on his face.After a while, the student's father came, and the dramatic scene happened. The father did come by car, but it was not a BMW.Seeing his father driving a "broken car", the son felt very embarrassed in front of his classmates. He was in a hurry with his father, but he didn't get in the car. Instead, he "questioned" why his father didn't drive a BMW, and yelled for him to go home Bring the BMW.His father persuaded him earnestly, and finally managed to persuade him to get into the car and drive away...

This is the characteristic of today’s children, maybe you will say that they are seriously spoiled by their parents, and how pathetic they are, but this is the fact, this is the brand cognitive psychology of contemporary children, which is cultivated by the current society” Brand self-esteem". Parents will not choose you, and children will not want you. Who can Wahaha children's clothing sell to? Wahaha Children's Wear made a mistake in brand extension without insight into the real needs of consumers and without brand strategic planning.As a result, he was defeated in a market with great potential and considerable profits.

After careful research, I found that consumers' greatest recognition of the Wahaha brand comes from its popular purified water.Its brand extends to carbonated beverages, tea beverages, dairy products and other fields. The key reason why it has achieved good results is that the extension of the brand in these categories is in line with the brand image it has established in the minds of consumers.The children's clothing market is different. For consumers, clothing categories are show-offs and decorations, which are all worn for others to see.Carbonated beverages, tea beverages, etc. are non-ostentatious categories, and the most important thing is high quality and low price. Therefore, Wahaha’s brand extension on daily food products will not have too many obstacles, but it cannot get the due due to the flamboyant products. This is the "bottleneck" of Wahaha's brand extension.Brand extension must consider not only the extended category, but also the limitations of the brand itself, which is a key step in brand strategy.

Brand extension, for an enterprise, may be a good thing with huge profits, or it may be an abyss beyond redemption. American Scott Company used to produce Kleenex brand toilet paper, which was the number one brand in the toilet paper market. However, with the appearance of Kleenex napkins, customers’ psychology has undergone subtle changes, which eventually led to Kleenex’s top brand position being taken over by Procter & Gamble. Charmin toilet paper replaced. Rongchang Antai, everyone agrees that it is a hemorrhoid drug that sticks to the navel, but it has extended to the field of health care products and launched Rongchang Tianmeng Oral Liquid. Imagine if you were a consumer, would you accept it?

When it comes to the 999 brand of Sanjiu Group, the first thing that comes to mind is 999 stomach medicine.But when 999 began to enter the beer market that has nothing to do with medical products, the brand association began to work, just as some consumers said: "When drinking 999 beer, I always feel like 999 gastric medicine." In the cases cited above, we found that brand extension will not enhance brand equity, but instead damage the original product categories due to the failure of brand extension, change consumers’ original favor towards the brand, and make the original brand positioning change. Get blurred.

A person needs to grow taller and wider, and the same is true for the growth of a brand.The brand needs to be continuously extended in the process of growth and development, but the following work must be done before the extension: build a strong brand asset support, investigate and analyze consumers' views on the brand, extend and activate the existing brand personality, and resolutely not Blur the original brand image. Who is the parent company behind Gillette, the number one brand of razors?Procter & Gamble Who is sitting behind the No. 1 cold drink brand and Lu Xue?Unilever You must ask is this true?True!The reason why you don't know is not that you are not careful enough, but that the two "giants" deliberately concealed the truth.As we all know, Procter & Gamble and Unilever are the world's two major brands of daily chemical products. If Procter & Gamble loudly advertises that Gillette is under its name like a daily brand, I believe that Gillette will not be affected by Procter & Gamble; if Unilever makes a high profile Announced that he and Lu Xue had a close relationship with him, consumers might taste the smell of washing powder when eating ice cream. Brand extension should be done according to one's ability, the birth of a new brand will not bring you much trouble, and it may have unexpected effects! If there are obstacles to brand extension, then why don't we have more "children"? The procedure is just to have a few more names. Naturally, consumers with different names will not misunderstand, and it is easier to build a brand image. He Le Why not? Look at Procter & Gamble: Head & Shoulders, Rejoice, Zeshuang, Sassoon, Lux, Safeguard, Ariel, Tide... Different categories, different brands, how well they operate, have not affected the P&G brand at all, and have added value to the P&G brand. few. As a result, we saw that Nongfu Spring was born, Duo'er was launched on the market, cleared up, grew up happily...all of them came to consumers, and all of them aroused considerable repercussions in the market. However, consumers know that Procter & Gamble is an expert in daily chemical products, but how many people know what Yangshengtang does?Consumers know that Procter & Gamble "beautifies your life", but do they know what Yangshengtang has to do with them? Why do we know that Head & Shoulders, Rejoice, Safeguard, etc. are owned by Procter & Gamble, but we don't know much about Gillette and them?Because Procter & Gamble has determined its own brand positioning of daily chemical products, all its daily chemical products are operated by multiple brands in marketing. In terms of brand strategy, although the names are different, they have established strong brand associations and continuously increased the connotation of their corporate brands. , to strengthen the corporate brand image, so consumers will agree that P&G is beautifying our lives; in the field of non-daily chemical products, P&G has completely taken the road of multi-brand, no matter in terms of naming, marketing or brand operation, Gillette has no Associated with Procter & Gamble, but with an independent image to claim its own expert brand image, to build its own kingdom in the field of razors.Procter & Gamble clearly knows that Gillette can't get any brilliance from itself, so it's better to let it show its charm! On the surface, the current Yangshengtang is learning from the brand operation methods of many international companies in the West and adopting a multi-brand strategy, but in essence?Has the corporate brand connotation of Yangshengtang been implemented?Do consumers know what Yangshengtang does specifically, and do they understand and recognize the core value of its brand?Although several product brands are well-known, a product is a product after all, and its life cycle is limited. It did not add new value and honor to the corporate brand when it was at its most glorious. Once the product goes downhill, the company will definitely continue. Find a new love. If an enterprise wants to develop for a long time, it must build its own brand; the corporate brand cannot operate like a product brand, but it can add to itself through its different product brands. Of course, these product brands must be screened and are in line with the positioning of the enterprise itself Yes, it is recognized by consumers, it can enhance the core value of the corporate brand, and it helps the company enrich the brand connotation... A brand is not just a name. A brand is a living body that needs to have a plan, connotation, image, personality, and reflect its own value.A brand cannot be used indiscriminately, and it cannot have dual personalities, so that consumers will think that it has "mental illness" and stay away from it; a brand cannot have children of different skin colors at the same time, so that consumers will not be able to distinguish it. Forget it, even think it has been unfaithful and abandon it. Brands must make a detailed plan before setting off on their own, and be clear about who I am, where I am going, what I can do, what I cannot do, and how I want to express myself... These are key issues in brand strategic planning.Without scientific brand planning, your brand will be doomed to be worthless, but not far away! The current Yangshengtang needs a set of scientific brand strategy planning to clarify its own brand positioning and refine its own brand core value; integrate all brand resources and clarify the relationship between its many product brands and corporate brands. Only the three characters of "Tong" can become a strong brand endorsement. What the enterprise pursues should not be the momentary popularity of the product, but should be the permanent golden brand of the enterprise!
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