Cow Geyong vegetable Li Jingwei
Yili's predecessor was Hohhot Huimin Milk Food Factory. 1983, when Zheng Junhuai was the factory director, his possessions were 4 10000 yuan, there were 76 employees, and the annual profits and taxes were 47,000 yuan, which is a set of figures that can be completely ignored when counting local GDP. After entering the 1990s, under the leadership of Zheng Junhuai, enterprises have developed rapidly. During the ten years from 1993 to 2003, Yili developed from a tens of millions enterprise into a national dairy giant with a main business income of 6.299 billion yuan, ranking first in china dairy. In the first half of 2004, the main business income reached 4.344 billion yuan, and the net profit reached 65.438+53 billion yuan. Not long ago, World Brand Lab (WBL) and World Economic Forum (WEF)*** selected "the most valuable brand in China in 2004", and Yili ranked 38th with RMB 654.38+02.787 billion, ranking among the top brands in China.
It is undeniable that Yili's operation in the past ten years has been successful, but in the long run, Yili is still full of crises, especially brand crises. There are serious defects in Yili's brand building and maintenance, which will not only affect Yili's current development, but also affect Yili's future sustainable growth space.
First, the brand concept created by Yili is bringing trouble to Yili.
The concept of "grassland" created by Yili has completed the development of competitors but hindered its own expansion. The negative effect of the concept of "grassland" caused by the wild running of the wind hurts not others, but Yili, the founder of this concept.
The core of the brand is the concept. Idea is the external expression of brand core value and the driving force to directly promote product marketing. In the past, the dairy industry in China has been in a state of separatism, and no brand dominates the world. The reason is that the high homogeneity of products leads to the decentralization of competitiveness, and no enterprise in the milk industry has created a unique brand concept to make itself stand out. Once Yili's "grassland" concept was launched, it quickly stood out from many milk brands and became the leader of the milk industry in China.
The reason why Yili's grassland concept can push Yili to the top of china dairy is because Yili has grasped the grassland complex in the hearts of China people, especially those in the central and eastern parts of China. Poems and songs such as "Blue sky and white clouds cover, horses run under white clouds ..." and "The sky is grey, the wild is vast, the wind blows grass and the cattle and sheep are low" make the prairie a place that China people dream of. Yili took the lead in grasping China people's beautiful yearning for grassland and launched the brand slogan "Green grassland, Yili is good at milk". This slogan quickly awakened consumers' beautiful experience of grassland and transferred it to milk and Yili brand, which quickly produced affinity in consumers' hearts. In order to implant the concept of grassland into the hearts of consumers in China, Yili has invested heavily in launching a series of activities focusing on grassland. 1994, in the first battle of Wuhan, Yili held a large-scale free goods Jian public relations activity with the theme of "Zhao Jun returned to his hometown and Yili sent his family". When the market share increased to more than 50%, local enterprises were forced to the corner of the market. When entering Beijing, Shanghai and other markets, Yili deepened the concept of prairie and introduced the concept of "natural pasture of mind". The straightforward prairie only indirectly implies the natural quality of the product, so Yili further extended the concept of prairie to "everyday nature". It is the deepening of this series of ideas that has promoted the development of Yili brand, and it is also the development of Yili brand that has widened the distance between Yili brand and other brands, making it rapidly grow from a regional brand to a national brand.
The grassland brand concept has made Yili's career, and Yili's brand operation is successful. However, the success of Yili brand promotion cannot hide its failure in brand maintenance.
The barrier-free brand concept directly promoted the rapid growth of Mengniu.
Brand safety theory tells us that brand assets are the easiest to lose, and brands that cannot successfully prevent the loss of brand assets are not good brands. The loss of brand equity is the loss of brand value. When brand assets flow to competing brands, brand competitiveness is weakened. One mistake of Yili brand building is that it failed to effectively protect its brand assets. Its brand equity flows into Mengniu's veins, and it fattens its biggest competitor, Mengniu.
Mengniu was founded in 1999 by Niu Gensheng, vice president of Yili, with the profit of 6,543,800,000 yuan from Yili. With the help of the operating experience gained in Yili, and in line with the business philosophy of building the market first, then the factory, then the brand and then the products, Niu Gensheng has expanded rapidly throughout the country, and has grown to the first place in "1999-0 1 China growth enterprises 100" with a growth rate of 1%. There are many reasons for Mengniu's triumph, but the concept of "grassland" created by Yili is of great help to Mengniu. After Yili's vigorous publicity, the concept of "grassland" has been deeply rooted in people's hearts. Mengniu directly borrowed the concept of prairie, grafted its own brand onto prairie, and achieved the effect of brand management going up the stairs. Mengniu's brand propaganda "Mengniu milk coming to Inner Mongolia prairie is green, natural and pollution-free." It not only draws lessons from the grassland concept created by Yili, but also carries it forward. In this way, Mengniu keeps pace with Yili in brand with little cost, even surpassing Yili. Yili's brand value is reasonably divided by Mengniu. This department alone directly saved tens of millions or even hundreds of millions of advertising investment for Mengniu, which is also an important reason why Mengniu started with 1000. If Mengniu doesn't have the brand concept of Yili, but operates from scratch, Mengniu's mere100000 yuan may not be enough to pay the tuition for market development. The rise of Mengniu, Yili can help a lot, but Mengniu didn't get Yili's favor and was very unhappy. Is Yili very wronged?
The brand value created by Yili has been run crazy by many small and medium-sized dairy enterprises.
Brand theory holds that if peer companies in the same geographical area overemphasize a certain natural feature of the geographical area in their brand themes, then this natural feature will become a shadow brand in consumers' minds, and corporate brands will become sub-brands under the umbrella of shadow brand protection. This kind of shadow brand has regional characteristics but no enterprise characteristics, so it can't protect itself and has become the same asset of the whole industry. Then there will be a strange phenomenon: large enterprises desperately inject brand equity, while small enterprises desperately manage brand equity. Just as several large enterprises have propped up the shadow brand of "Fuling mustard tuber", they are desperately managed by a large number of small and medium-sized enterprises, trying to extract benefits from "Fuling mustard tuber".
The concept of "grassland" created by Yili has only regional characteristics, but no enterprise characteristics. As a result, the brand concept has become a symbolic shadow brand concept, and "grassland" has become a shadow brand. As a result, the "grassland" became public property like the Tang monk's meat and lost its exclusive right. Yili did public welfare for grassland enterprises. Although Mengniu has grown up by enjoying this public welfare shadow brand, its brand assets have been injected into the shadow brand in large quantities, while many small and medium-sized enterprises are desperately managing this shadow brand. Since Yili and Mengniu succeeded in relying on the concept of grassland, many enterprises all over the country have now introduced the concept of grassland, all dressed as grassland milk, some playing "Dali natural pasture", some playing "Xinjiang Tianshan pasture", some playing "Aba grassland", some playing "Yellow River source grassland", and so on, and the concept of grassland has flooded. When large and small enterprises are using the concept of grassland, Yili spent huge sums of money to build the concept of grassland, which lost its previous market driving force. The key point is that enterprises with mixed quality do grassland articles, which will not only directly tarnish the image of grassland, but also directly corrode the core pillar of Yili brand. These opportunistic hitchhiking behaviors, apart from frantically operating the brand value of the prairie, will not strive to maintain the concept of the prairie. As a result of this run, the biggest harm is not the runner, but the runner-Yili, the founder of the grassland concept.
The brand concept created by Yili has become the fetters of its market expansion.
Yili originated from "grassland", succeeded in "grassland" and is being controlled by "grassland".
Yili is no longer the Ili of grassland people, but is becoming the Ili of China and wants to become the Ili of the world. However, due to the contradiction between centralized production and decentralized consumption, long-distance transportation and localized sales, Yili must strive to promote the localization of production. Localized production, localized milk source, the concept of "prairie" on which Yili relies for survival and development has lost its foundation, because the milk source of many production bases in Yili is from the local area, not the prairie. If Yili still pursues the concept of "grassland" at this time, it will only bring consumers a sense of deception and seriously hurt consumers' trust in Yili. Once you lose trust, Yili's brand will be destroyed and Yili's career will be hit hard. Mengniu's advertising crisis is a warning.
Therefore, if Yili wants to go to the whole country and the world, the prairie will become a fetter. Yili is facing the severe task of brand reconstruction.
Yili also realized this and began to try to deepen the concept of grassland into the concept of "nature" and take "everyday nature" as the new brand appeal. Can the concept of "nature" successfully replace Yili's concept of "grassland" to support Yili's brand building?
What is "nature"? What is "everyday"? Is the growing environment of dairy cows natural? Or is milk natural? Just from Yili's brand slogan "Everyday Nature", it should mean that Yili's milk is natural, which means "What you drink every day is natural milk". Milk is produced by cows. How can it be natural? If cows produce natural milk, can there be artificial milk? It is untenable to say that milk is natural.
If Yili's "natural" refers to the natural growth environment of dairy cows, it implies that the milk produced by captive dairy cows is unnatural and of poor quality. Yili's appeal not only improved the product value of this enterprise, but also devalued the milk produced by other captive cows. In fact, the industrialization of dairy farming is the main mode not only in China, but also in the west, that is, pasture farming. Special feed should be added to increase milk production. It is difficult for a dairy company to ensure that its milk source is all milk produced by natural dairy cows, even Yili may not be able to do it completely. If you can't do this, you will leave yourself with a huge brand safety hazard. Once the name is not true, it will kill the enterprise. Yili is the one who can do this in Inner Mongolia. However, due to limited conditions, it is difficult for Yili to ensure that all the sources come from natural pasture cows. If this cannot be guaranteed, Yili's brand will also face a crisis of trust. In addition, the concept of nature, like the prairie, once recognized by the market, will also be operated by competitors. Does Yili have to be a living Lei Feng? So we think that Yili's concept of "nature", like "grassland", can contribute profits to Yili at a certain stage, but it cannot be relied on for a long time. "Nature" is difficult to support Yili's brand building, and the concept of "grassland" has evolved into "nature", which cannot solve the core value problem of Yili's brand, and Yili has fallen into the confusion of brand concept.
Second, the brand positioning at the quality level has set a fetter for Yili's sustainable growth.
Brand positioning based only on quality level is a weak positioning, and only brand positioning based on culture can ensure brand differentiation and sustainable growth of enterprises.
Yili's efforts and achievements in quality assurance system are obvious to all. Yili has successively established excellent milk source bases in Hohhot, Inner Mongolia, Hulunbeier Grassland and Dorbert Grassland in Heilongjiang. In 2003, Yili realized the transformation of dairy farming from large group and small scale to small group and large scale, embarked on a scientific, standardized and intensive dairy farming road, and created a brand-new model of milk source base construction in the whole industry. In line with Yili's national expansion strategy, it has invested 1 1 billion to establish its own high-quality milk production bases in Beijing, Shanghai, Hebei, Shaanxi and other places through acquisition, merger, asset restructuring and trusteeship, so as to shorten the distance between enterprises and the market and ensure consumers to drink fresh milk. Yili has also implemented a four-in-one all-round food quality certification model in product quality management, namely, ISO9002 international quality certification system, GMP system for standardizing manufacturing, HACCP system for ensuring food safety and hygiene quality, effective hazard analysis and critical control point management, and ISO 1400 environmental management system known as the green barrier pass. Yili wants to ensure that every drop of milk provided to the market is qualified.
Yili's quality management is indeed remarkable, but it is far from enough. Any brand that wants to occupy a place in the market must have its own unique and unrepeatable brand appeal to distinguish it from its competitors, but can Yili's brand quality appeal be obviously different from its competitors? I can't.
Assimilated quality demand makes Yili brand lose its personality.
Personality is the life of a brand, and a brand without personality has no soul. The first thing Coca-Cola should do when it comes to dairy industry is how to make its milk products fashionable, so as to be compatible with Coca-Cola's brand and distinguish it from its competitors. However, china dairy, headed by Yili, pursues quality almost invariably.
One of Yili's main competitors is Bright Dairy, which is the oldest enterprise in china dairy. She is the teacher of Yili and Mengniu. As the main leaders of Yili and Mengniu, Zheng Junhuai and Niu Gensheng have visited and studied here. Bright Milk has always regarded quality as the brand's unique appeal: "100% good cow, 100% good milk", "good cow, good milk" and "three guarantees of scientific and technological products" (freshness, nutrition and safety) are the milk propaganda slogans of Bright Milk, and the quality concept has become the brand core of Bright Milk. Mengniu, another competitor of Yili, also made a big fuss about quality, defining quality as "natural, pure, fresh and healthy". The core appeal of china dairy Big Three is quality and high homogeneity, which leads to the loss of brand personality. I am afraid it is difficult to distinguish Yili milk from Mengniu and Guangming in the market. This problem arises: the brand overlap caused by the convergence of competition between Yili brand and similar brands such as Mengniu and Guangming will reduce consumers' involvement and psychological dependence on Yili brand over time. The most direct reflection is the loss of brand price protection, and the most serious consequence is that when the price rises, it produces a large elastic response, and the purchase volume decreases rapidly, while when the price falls, it produces a large inelastic response, and the purchase volume does not increase significantly, which is extremely unfavorable to the rapid development of Yili.
Brand homogeneity makes it more difficult for Yili to distance itself from its competitors.
The market share of Yili, Mengniu and Guangming has reached 50% of the national market, and the brand concentration is already high. The market space for further off-brand development of the three brands is already very small, so the competition among the three brands will become the focus of market competition. Due to the demand of homogenization, it is difficult to distance the three brands, so it will be very difficult for Yili to surpass the light in big strides, or to leave Mengniu, which is about to surpass, far behind. Yili's brand appeal with quality as the core has become a major obstacle to Yili's rapid development.
Satisfied with the brand positioning at the quality level, Yili brand presents weak characteristics.
According to American brand scientist Cafelle, quality assurance is a weak brand positioning, because ensuring quality is just doing what you should do. Therefore, in the brand theory, the brand established with quality as the center can only be regarded as a primary brand, and only in the era of product quality competition can it be competitive. With the evolution of brand competition from the era of quality competition to the era of individual competition, brand competitiveness has been lost. At present, the competition of dairy industry in China is going out of the quality era and towards the individuality era. Yili's quality concept is losing its original competitiveness. If Yili can't improve the cultural value of the brand in an all-round way and establish a unique brand personality in the minds of consumers, it will be difficult to guarantee a total victory in the new round of competition. Upshaw believes that establishing a strong brand personality and cultural characteristics is conducive to protecting and increasing brand value. Just as Yili pioneered the concept of quality and laid the foundation for Yili, what Yili is facing now is how to build a brand with unique personality and cultural value, and rely on the unique personalized brand sales proposition to take the lead in surpassing the quality era and entering a new competitive era. This is an urgent task before Yili's brand building and the key to Yili's "sustainable success".
Third, the investment is insufficient, and the growth potential of Yili brand is weak
The places that should be invested most are underinvested, and the places that should not be invested most are overinvested. At the critical moment of brand growth, Yili's limited funds were not used on the cutting edge.
Brand management theory holds that the best time to build a brand is the rapid growth period of products. Once this period is missed, it is difficult to cultivate the brand. At present, china dairy is in a period of rapid market growth, which is the best opportunity for enterprises to establish their brands. Dairy enterprises urgently need to expand the market quickly and cultivate brands. According to industry experts' prediction, the golden time for china dairy's development is still three to five years, and it will be difficult to make achievements in the dairy market if we miss these years. Therefore, almost all dairy enterprises, whether old or new, are gathering resources to expand wildly, winning more market opportunities and competitive chips for the next competition.
Mengniu is doing its best to gather competitive forces in order to make a final effort.
Mengniu, Yili's direct competitor, has planned to double its production capacity to 2.75 million heads in 2005. In order to achieve this goal, Mengniu raised a lot of money. According to the data, from 200/kloc-0 to 2004, Mengniu * * * raised 221380 million yuan, including1400 million yuan in 2004. These funds are used to expand the market and production capacity. Mengniu should rely on its strong financial strength and strong market expansion to replace Yili as the king of china dairy. Southwest Wangxin hopes to spend 654.38 billion yuan to intervene in the dairy market, and completed the acquisition and merger activities in southwest China in just two years. Now chess pieces have spread all over the country. Wahaha also raised more than 654.38 billion yuan to carve up dairy cakes. Guangming, Sanyuan, Sanlu, Wandashan, Huishan, etc. Not to be outdone, they have poured all their money and tried their best.
Yili is weakening its competitiveness and giving competitors an opportunity.
Mengniu is staking a horse, so what is Yili, the boss of dairy industry?
On June 29th, 2004, Yili held the 2003 general meeting of shareholders. At the meeting, a stockholder said to Zheng Junhuai, chairman of Yili, "Mengniu has been listed in Hong Kong and tried to invest money to expand its production capacity, but Yili only invested in national debt, but you didn't invest in the place where the money was most needed. Is Yili really too rich to burn? " The shareholders' words hit the nail on the head. According to Yili information published by World Business Review, at the end of August 2002, Yili issued 48,964,380,400 shares, raising 825 million yuan. Less than two months after the funds were put in place, the company bought a lot of government bonds. The clarification announcement issued on June 18, 2004 stated that from the fourth meeting of the fourth board of directors held on June 18, 2002, a resolution on using part of idle funds to purchase government bonds was passed, during which the accumulated investment was 4170,000 yuan, and * * sold 247 million yuan of government bonds, up to June 6,544, Yili said. Does Yili really have that much spare money? In fact, Yili's debt has been rising in recent years, and its financial expenses have increased rapidly. At the end of 2002, the asset-liability ratio of Yili was 36%, which was lower than 44% at the end of 200/kloc-0. However, the decline in debt ratio is purely due to the issuance of new shares in August 2002 to raise 825 million yuan. After deducting this factor, the debt ratio is actually 50%. Among them, Yili shares' current liabilities at the end of 2002 were year-on-year. By the end of 2003, Yili's asset-liability ratio had further increased to 45%, total liabilities increased by 865,438+0%, current liabilities increased by 765,438+0%, and long-term liabilities increased by 230%. In the same year, interest expense increased by 65,438+0.33% to 2,654.38+0.34 million yuan. Of the total liabilities, interest-bearing liabilities increased from1.1.60 billion yuan to 420 million yuan. The quarterly report of the first quarter of this year also showed that the operating cash flow of Yili shares changed from 500 million yuan at the end of last year to negative 20 million yuan, and the accounts receivable increased to 80 million yuan. Due to the continuous decline of the national debt market since August 2003, Yili shares are also deeply involved. . From March 3, 2004 to April 23, 2004, the investment loss of newly purchased government bonds was120,000 yuan.
While other dairy enterprises are concentrating on capacity expansion and market expansion, Yili is investing in national debt and losing money. In the case of fierce market competition, Yili did not concentrate limited funds to win more markets, which cannot be said to be a major mistake in Yili's business strategy. If Yili thinks that she is the boss of dairy industry and has established an irreplaceable market position without larger investment, it is wrong. Last year, the debate about who is the boss of china dairy began. If Yili was barely in the position of the boss in 2003, it is hard to say whether it will be the boss in 2004. As for 2005, according to Yili's current style of play, I'm afraid the country will be in jeopardy. Being a market is like sailing against the current. If you don't advance, you will retreat. While everyone is trying to attack the city and plunder the land, Yili is still stealing market funds. Can't call it a wise move. If Yili can't make full use of the present good opportunity and strong market situation to improve itself quickly, when the opportunity is missed, Yili is likely to swallow the bitter fruit. Now that the investment is insufficient, the stamina for the growth of Yili brand will be greatly reduced. Yili must not make radical efforts at the critical moment of brand growth. It is the wisest choice to concentrate on laying a solid foundation for the rapid and sustained growth of the brand and accumulating sufficient brand energy for the fierce market competition.
Fourth, brand competition, Yili is under siege.
Fighting local tyrants and dividing fields, Yili faces competition from all sides.
The market structure faced by Yili can be described as "there are wolves in front, tigers behind, and a group of mice in the middle". Li Tiantian, a veteran in the industry, described the competitive pattern in china dairy as follows: In 2002, the Central Legion was steady and steady, the local legion defended the country, the overseas legion was eyeing, and the new legion was in full swing; In 2003, the Central Army contracted the front line, the local army was exhausted, the overseas army was watching, and the new army in the industry festered; The trend in 2004 is: the giants compete for hegemony, the terminal competition and the entry of foreign capital.
When Yili succeeded, there were only a few giants in China dairy market, such as Sanyuan and Guangming. But now, in just a few years, Mengniu, New Hope, Wahaha, Wandashan and other new dairy forces have risen rapidly and become an important force in china dairy, which has matched Yili's leading position. China dairy's throne, which Yili just snatched from the light, is already facing a powerful challenge.
Traditional giants are unwilling to lag behind.
Yili is first of all a challenge from traditional giants. Guangming and Sanyuan have long been worried about the rapid growth of Yili. As the leader of the north, Sanyuan is not reconciled to the rise of Yili, and they hit the battlefield of competition to Yili's hometown. Sanyuan established an ultra-high temperature sterilized milk base in Hulunbeier. After inspection, the three batches of heat preservation experimental products all meet the quality requirements of ultra-high temperature sterilized milk, and the new line has been put into production, marking the formal entry of Sanyuan into Yili base camp, the forefront of ultra-high temperature sterilized milk market. Sang Yue, deputy general manager of Sanyuan Company, said: The expansion project of ultra-high temperature sterilized milk of Hulunbeier Sanyuan Company has been completed. The company's daily output of ultra-high temperature sterilized dairy products has doubled on the original basis, and the production capacity has reached 40 tons/day. At present, the main sales area is the local market. According to the plan of Sanyuan, the next one will continue to expand to Inner Mongolia and other areas in Northeast China. It seems that the competition between Guangming and Yili has entered the stage of close combat.
Guangming is never willing to give up its position as the boss for many years, and has begun the work of fully recovering lost land. Guangming entered the country with a huge sum of 950 million yuan raised from the stock market. In June 2002, Bright Dairy invested 65438+300 million yuan to upgrade Heilongjiang Guangming Songhe Co., Ltd. acquired by 1996 to compete with Yili in the northeast market; On September 14, 2002, Bright Dairy acquired 60% equity of Paipai Food Co., Ltd., the second largest dairy company in Changsha, with cash150,000 yuan. On February 29th, 2002, Bright Dairy acquired 5 1% equity of Hero Dairy Co., Ltd., the largest dairy enterprise in Jiangxi, and Bright will fight Yili in the central China market. On June 5438+ 10, 2003, Bright Dairy began to enter the core market of Yili, and quietly completed the acquisition of Guangzhou Danone, thus holding 0/00% equity of Guangzhou Danone/kloc-0, and the battle between Bright and Yili in South China began. Guangming also invested/kloc-0.40 billion yuan with Beijing He Lin Industrial Development Company to build a second dairy factory in Shunyi, Beijing, with a daily output of 300 tons. The variety is mainly yogurt that Beijingers love to drink, and Guangming wants to seize Yili's yogurt market in North China.
The new giant vowed to catch up.
Mengniu, as a new giant, has strong strength and wants to compete with Yili. Mengniu is an enterprise that grows up directly by using Yili's shortcomings. Mengniu and Yili compete comprehensively in the fields of management, culture, promotion, brand, capital and talents. Mengniu was founded in July, 1999 by Niu Gensheng, vice president and general manager of Yili Group, with a sum of money from Yili and 9 core personnel of the Cold Drink Division, with a registered capital of100000 yuan. Mengniu took Yili as the challenge object at the beginning of its establishment, vowing to make use of Yili's loopholes to achieve Mengniu's career. Mengniu achieved sales of 40 million yuan in the year when it was founded, and increased to 2 1 100 million yuan in 2002, and its ranking in the national dairy industry rose from 1 16 to the fourth place. Since the establishment of Mengniu, the growth rate has far exceeded Yili. In the past three years, the compound growth rate of Mengniu has reached 137%. In 2003, the sales revenue was 4.07 billion yuan and the net profit was 230 million yuan. In terms of sales volume, Mengniu has become the largest liquid milk producer in China in 2003, which is less than the fifth anniversary of its establishment. In the first round of china dairy's capital competition, Yili's production and sales have actually retreated from the first place to the second place. Zheng Junhuai has felt urgently that Yili, the elephant, will be in danger of being buried in the belly of a snake if he is not careful. Earlier, when the news that Mengniu planned to go public came out, Yili was very nervous. Mengniu, which is developing rapidly, has become a big worry for Yili. If there is another financing channel in the capital market, Yili is worried that Mengniu will get out of control. To this end, Yili hired a consulting agency and formulated a plan to systematically suppress Mengniu. It is said that when summing up the preliminary investigation report, the project leader thought that the result of the implementation of the plan might cause great losses to the whole of china dairy, so he immediately stopped. From this point of view, the rise of Mengniu has given Yili tremendous development pressure.
Dairy new army grabs stalls.
A group of new dairy armies are even more eager to try and gallop around. In the southwest market, new hope is aimed at Yili. In August, 2002, New Hope Group, a private enterprise with feed background, invested 50 million yuan in Sichuan Huaxi Dairy. On February 9th of the same year, 65438, New Hope defeated competitors such as Yili and successfully acquired Yunnan Dengchuan Diequan Dairy Company. Not long ago, a well-known international consulting company tailored a five-year development plan for New Hope. So far, nine dairy companies in Nanjing, Hefei, Qingdao, Wuhan, Zhengzhou, Chongqing, Xi and Harbin have expressed their willingness to cooperate, and three companies have signed cooperation intention agreements. New hope has spread to the whole country. In East China, Weiwei and Wahaha are also tense and begin to expand into the national market. They want to use their own capital to get a slice of the dairy market. Everyone knows that what these new market forces have to do is to fight local tyrants and divide the fields, and the biggest local tyrant is Yili, the market leader, so almost all new market forces are aimed at Yili, and Yili is becoming the focus of competition. Whether Yili can win in this struggle is the key to whether Yili can continue to lead the dairy market in China.
Foreign giants took advantage of the trend to enter.
Multinational companies are also eager to occupy the dairy market in China. Nestle, which has already entered China with milk powder, began to target milk sources in the case of declining sales. First, it invested heavily in developing milk source base in Heilongjiang and began to intervene in the liquid milk market. Danone participated in Guangming, Haoji and other enterprises and began the expansion of China market; Even the Coca-Cola Company began to step in. In order to take the lead in the highly competitive soft drink market, the company plans to launch "Mother Plan" milk drinks in the near future. Because the information conveyed by milk is not as fashionable and refreshing as that conveyed by coke, Coca-Cola officials said that the company will make efforts in the size, packaging and taste of milk drinks to make up for the lack of fashion in people's minds. With the entry of foreign-funded enterprises, the scuffle in the dairy market seems inevitable. As the market leader, what did Yili win? Eli, are you ready?
Verb (abbreviation of verb) The ghost of brand extension failure is eroding Yili's brand image.
Rough brand extension does not harm the extended products, but supports the extended parent brand.
Brand theory holds that brand extension and brand expansion are important ways of brand development and important measures to increase brand assets. However, improper brand extension and expansion, or brand extension and expansion failure, will damage the image of parent brand and reduce brand equity.
Yili has both success and failure in brand extension and expansion. Success has made Yili's brand development, while failure is bringing brand crisis to Yili.
The brand extension that does not follow the market rules has made Yili suffer a lot.
Niubi is a very effective product. However, if the weather is not beautiful, it is really an unpopular market and is seriously unsalable. According to industry estimates, the loss brought by "Niubi" to Yili will be more than 30 million yuan.
Now the enterprise economy has evolved into a growth economy, and the support of growth is the brand. If Yili does something to hurt the brand for petty gain, she has no intention to quench her thirst by drinking poison. In fact, the biggest loss of Yili Niubi incident is not the investment of 30 million yuan, but the negative impact of the sale on Yili brand, which is difficult to eliminate for a period of time and is also a serious injury to Yili brand.