Home Categories political economy Very Marketing Wahaha: Practical Lessons from China’s Success

Chapter 61 3. "Three Alls Campaign"

In 2002, Zong Qinghou reached a new peak in his career: the total beverage production and sales in the first half of the year surpassed the mighty Coca-Cola for the first time; Wahaha has given up a market space out of thin air, and the production and sales benefits of purified water and fruit milk have exceeded previous years; the newly launched tea drinks and fruit juice drinks have won the first battle; very cola is making great strides in the west of the Beijing-Guangzhou line and in the northeast market, and is expected to surpass Pepsi to become the second largest A carbonated beverage company; the huge national production and sales layout is about to be completed... All kinds of news make people have high expectations for this rising "Chinese beverage king".

However, in Zong Qinghou's mind, the real contest has just begun. Master Kong, Uni-President, Coca-Cola, and Pepsi are among the top four, and each opponent is not easy to be defeated. Since 2001, on the basis of maintaining vested markets such as purified water, fruit milk, and carbonated drinks, Wahaha has also launched a two-line attack on the fruit juice and tea beverage markets, and launched a "hand-to-hand combat" with the four major rivals.People can smell intense gunpowder when using celebrity advertisements to create momentum: Pepsi and Coca-Cola respectively hired "Queen of Heaven" and "King of Heaven" Zhang Huimei and Nicholas Tse as their image spokespersons in the Asian market.Wahaha hired Coco Lee and Wang Leehom, who are in the same weight class but are hotter and more fashionable.The protagonist of the advertisement for Uni-President Tea Beverage is Jay Chou, the "Music Boy" who is popular in half the Asia-Pacific region.Master Kong Green Tea successively signed Gigi Leung and Alec Su, two Hong Kong and Taiwan superstars as brand spokespersons, and spent tens of millions of yuan to select the "Best Actress" for the latter.Not to be outdone, Wahaha also launched a large-scale campaign of "Let your star shine from now on", openly recruiting "new talents" for Stephen Chow, Hong Kong's number one nonsensical star.

At the end of the market, various means of competition are extremely hot.China Central Television’s international website once reported such a piece of news: In the Guangzhou market, since the fall of 2001, a certain beverage brand has sent people to various retail stores to “purchase” Wahaha iced tea, in fact, to “exchange” Wahaha iced tea with their products. Products of Wahaha.And it also restricts the retailer's business behavior in the form of a "monopoly agreement". The brand provides free freezers for small stores, rewards every month, and promises to install awnings for free.Of course, if you want to get such "benefits", you have to give up selling Wahaha iced tea.The company also has many "incentive measures". Small stores that promise not to sell Wahaha products can get 5-10 boxes of iced black tea every month.

Even Coca-Cola, which has always rejected price wars, is quietly lowering its "worth". After the Spring Festival in 2002, Coca-Cola continuously launched new 1.5-liter and 2.25-liter Coke packages by increasing the volume without increasing the price. This move was regarded by the industry as a frontal price defense against the aggressive Pepsi and Very Coke. At the same time, the attractive benefits of the beverage market will also attract more competitors to enter.In recent years, various investment information has come frequently: Xinjiang Delong acquired Huiyuan Juice, Wanxiang Group acquired Chengde Lulu, and China's largest beer manufacturer Tsingtao Brewery cooperated with Japan's Asahi to invest hundreds of millions of dollars in tea beverages.

In addition, another possible situation is that with the evolution of the beverage industry and the innovation of circulation models, the existing industrial structure may be broken again at any time.As Philip Kotler describes it: Often it seems easy for a company to identify its competitors.But the scope of the company's actual and potential competitors is very wide, and the company is more likely to be eliminated by potential competitors than by existing competitors.For example, Kotler said that Fuji Corporation operates the film business, and it has always regarded another Japanese film manufacturer, Konica, as its biggest rival in its life.Only recently, however, did it discover that competitors threatening the company's future viability came from two other companies, Canon and Sony, which invented "filmless cameras" that could both display images on television receivers and reproduce them as photographs , and can even be erased.This threat from outside the film industry far outweighed any marketing attacks by Konica.In fact, in the beverage and food industry, traditional brand manufacturers have been threatened and impacted by professional distributors such as Wal-Mart and Amazon.

Wahaha has won the opportunity to compete with multinational brands on an equal basis through the "qualification competition", and at the same time, it has also won the possibility of becoming an international brand.Whether Wahaha can become an international brand with oriental cultural characteristics like Japan's Toyota and Korea's Hyundai will surely be revealed in the not-too-distant future. At the end of 2001, Zong Qinghou announced to the media Wahaha's marketing strategy concept for the next three years: investing 1.8 billion yuan to launch the "Three All Campaigns".The so-called "three-full campaign" refers to the comprehensive development of the market, the comprehensive development of varieties, and the comprehensive launch of the market. The proposal of the "three complete" strategy is actually Zong Qinghou's strategic judgment on China's beverage market.He believes that future competition will be an all-out war, and beverage companies that dominate the world with a single product have become increasingly difficult to survive and breathe.This battle will conduct an all-round test of the competitiveness of enterprises from the following aspects: recognition of corporate brand culture and values, new product research and development capabilities and competition for the right to speak in the market, extension and innovation of marketing networks, and corporate capital strength competition and so on.

Marketing is a very easy business to get lost in.As Henry Ford said in his autobiography, "Businessmen are often defeated by their own success because they are too stubborn on the old ways."Often a successful marketing model gives birth to a powerful company, and this model quickly becomes the "golden chain" that restrains the company from becoming stronger. It sinks in experience and shrinks in the model. Such cases are almost everywhere in China and abroad. yes.The powerful marketing advantages formed by Wahaha have contributed to its brilliance in the past 15 years, but whether it is suitable for the future market is a big question mark.In addition, such a prominent advantage feature is also very easy to be attacked by opponents to some extent.

Wahaha's future marketing road seems to have three directions worth exploring: (1) Continuing the existing model, further integrating dealers, and deepening the blood relationship between enterprises and dealers through equity combinations and other forms, thus forming a nearly closed state and the largest marketing network group in the country.This will be an unprecedented marketing model. (2) Learn from the experience of Uni-President Group, fully penetrate from the manufacturing industry to the distribution industry, form a deep integration of production and sales through investment or cooperative operation of chain convenience stores, hypermarkets, etc., and become the "channel king" in the Chinese market.

(3) Implement the strategy of concentric circles of the brand, and extend to multiple industries with the "Wahaha" brand as the core of competition and configurable resources. In the summer of 2002, Zong Qinghou announced to enter the children's clothing market and launched the "Wahaha" children's clothing brand. As soon as the news was announced, it was sought after by dealers all over the country. In just three months, more than 2,000 merchants asked to join.In August of that year, the first batch of 800 specialty stores opened. At the same time, the innovation of marketing theory and the widespread application of computer and Internet technologies also provide a broad space for Wahaha's future marketing innovation.

Now I am afraid that no one doubts the decisive significance of "innovation" for an enterprise.However, where does the internal motivation for enterprise innovation come from? You can say that it is the infinite enthusiasm for work, the relentless pursuit of wealth, and the self-realization of the value of life, but we believe that the most direct driving force is the fear and vigilance of market changes. Therefore, to judge the vitality of a modern enterprise, one should first understand how sensitive and conditional its system is to market changes.On the one hand, there is no river that cannot be crossed in Qinghou, and a marketing organization like Wahaha obviously has a natural advantage.

No matter which modern country you are in, the market competition can be interpreted as four levels: one is the "price-quality" positioning competition; the other is the competition to create new expertise and establish leadership advantages; The offensive and defensive competition in the regional market; the fourth is the competition based on the abundant capital and the establishment of scale advantages and resource integration advantages. What is different from the past is that the advantages that enterprises have painstakingly established at every level will be quickly copied and surpassed by their opponents. As Tom Peters described in "Liberated Management", this is a deconstruction and reconstruction. In the competitive era of deconstruction, creation and destruction are often accomplished by the same hand at the same time. Today's Chinese market is no exception.With the swarms of domestic enterprises, the strong participation of multinational brands, the improvement of technological level, and the innovation of Internet technology, the market competition in almost all fields has become unprecedentedly fierce.In an environment where the forces that sustained corporate advantage in the past are rapidly disintegrating, no advantage can stand.Correspondingly, the strategic focus of corporate competition is no longer to seek lasting advantages, nor to establish a stable and balanced structure, but to continuously launch a series of attacks to obtain temporary advantages, and then take the initiative Break out of this status quo and actively strive for the next temporary advantage.The competitive strategy that an enterprise needs is a dynamic and changeable strategic combination. In 1994, American marketing guru A. Daphne put forward the famous theory of "Super Advantage Competition".He believes that the future competitive strategy should be a process of moderate reflection, finding or creating short-term opportunities, rather than long-term and prudent planning of a specific action in the product market.Accordingly, Davani proposed three strategies for enterprises to survive in such a competitive environment: One is "learning to destroy," a dynamic strategy whose goal is to disrupt the status quo of the industry.Destruction is a common strategy of all competitors in the industry. Non-leading enterprises can gain advantages through destruction, while leading companies must also actively break the status quo if they want to maintain their existing advantages, so as to trigger the inspiration of industrial progress.They must undermine the status quo by undermining their own advantages; because if they do not undercut their own advantages, sooner or later competitors will. The second is "learning control". Controlling the evolution of competition in the market is much more important than earning profits at this stage. Control the market rhythm, including the rhythm of new product development, price and scale, and competition.The marketing ability of a successful entrepreneur in the future is mainly reflected in his grasp of the market rhythm. The third is to "learn allocation" and become a proactive resource allocator.In the future, market sharing and competition will exist at the same time. When the competition reaches a certain level, the tacit understanding among industry leaders will become very important.To realize the efficient allocation of resources, enterprises need to carry out continuous innovation in the system. In 2000, McKinsey’s research report on 78 companies in the United States showed that: “The coordination between the corporate structure and institutional structure required for resource allocation sometimes seems to violate internal consistency.” That is to say, companies must Continuously transform and innovate its own system to form an open corporate culture and institutional structure to adapt to the ever-present challenges and integration. The only sustainable advantage is the ability to create new advantages. What is true for Wahaha is true for all companies in the Chinese market. In 1989, Charles Handy, a professor at the Massachusetts Institute of Technology, published the famous "The Age of Unreason" ("The Age of Unreason").In the book, he put forward the new concept of "uncertain age" for the first time.He pointed out that the future era is "incoherent" and "uncertain", and the sudden emergence of "3I" (information, intelligence, ideas) makes it necessary for any enterprise to maintain a change-seeking mentality and organization at all times. structure, we must devote ourselves to learning and innovation.Handy wrote in the book: "What we have taken for granted in the past begins to shake. The shape of the future is in the hands of us sculptors. We sculpt the future for ourselves. Only one prophecy stands, and that is-no one Prophecy stands." Handy's voice came from a distance, and it became clearer and clearer.In the past few years, the bursting of the IT network bubble, the outbreak of Enron, Andersen, Xerox and World Communication scandals, the crumbling credit system of Wall Street, and the ups and downs of countless well-known Chinese companies have given us more confidence in the future. Alert and awake. No prophecy is tenable, no company's future is certain, no marketing model is eternal, and no success can be replicated. Every day is full of questions and challenges.I come from nowhere, but I can't go back; I go wherever I go, but there is no absoluteness. "Tao can be Tao, very Tao. Name can be named, very famous. Nameless, the beginning of heaven and earth. Named, the mother of all things." Regarding the "very marketing" of Wahaha and Zong Qinghou, there must be more exciting sequels. The future has arrived ahead of schedule and is uncertain.
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