Analysis of the “three forces” of domestic head beverage companies

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A few days ago, a friend and I chatted; the purpose is that several foreign beverage companies look at the domestic market, understand the current domestic beverage market and facilitate the future layout.

My point of view is evident, all the drinks, as long as to create a good “three forces”: product power, brand power, marketing power, adhere to down is bound to be ten billion enterprises.

First of all, the product power, good products will really talk. What is a good product, I think, is “three good,” good quality + packaging + good ideas.

Take the unified open small stove, with “three good” quality, the future will be great.

Besides the brand power, this concept is not a day or two to form, which contains the brand overtime under the loyal consumer’s sedimentation and product image and the high degree of consumer fit.

The reason why the summer of this year, why farmers have been targeting the Yuanqi forest sparkling water to do articles, the reason is simple: farmers want to target not sparkling water, but a “health” concept of rapid development of enterprises, and this concept is also the business positioning of farmers.

To put it bluntly, the Yuanqi forest has grown, and the brand power of the “health” label of Nongfu Mountain Spring will be affected, shaking the foundation of Nongfu.

Last but not least, the marketing model can really undermine a company’s development. In addition to the innovative awareness of the cold white open beverage, other products are followed and imitated, but the overall sales are not low; the reason is that the four in one marketing model plays a key role.

Next, I analyze the “three forces” of several domestic head drinks, each out of 5 points, 5 representing the best, 1 point represents the worst (personal knowledge, for reference only).

01.

The three forces of Nongfu Mountain Spring

1. Product power

Nongfu Mountain Spring should be split up and divided into water and non-water products. The non-water products are no problem; whether it is the quality, packaging, or product concept, it is definitely the beverage industry’s benchmark.

But the packaging of water products is somewhat anachronistic, almost a decade without change, which can be interpreted as shaping the classic, but also can be interpreted as not quite match with the Z era consumers.

2. Brand power

Nongfu Mountain Spring is a little sweet; we do not produce water; we are nature’s porters. These familiar advertising slogans, as well as more than twenty years of consumer water testing education, shaped its irreplaceable brand power.

3. Marketing power

Need to briefly analyze the marketing model of the Farmer; the core idea of the exclusive distributor model is: the enterprise is fully authorized to dealers and provides timely assistance and services.

1) Cost lump sum.

According to the city level, modern channels accounted for, colleges and universities scenic area accounted for and other comprehensive factors to give dealers market costs of 7%-10% of annual sales.

Which stipulates the proportion of market expenses (for terminal store display and other vivid deployment or consumer education and other activities) and channel expenses (for product hitching and other promotional activities).

2) Business assessment model.

Business salary by the dealer according to the actual situation in their own market, the monthly development is completed after the photo by the office and the region to retain the joint industry generation (now minimal).

The company sends the basic salary, the commission is the dealer out, the entire industry generation, and the company has no direct relationship. The company pays a monthly base salary subsidy. The rest is borne by the dealer.

(3) Grassroots managers go deep into the internal management of dealers.

Farmer’s grassroots manager is called account manager, managing 4-7 business personnel. Deep into the internal operation of the dealer, the organization participates in the dealer’s morning meeting, discusses the market strategy, participates in the formulation of market activities, personnel assessment, order distribution, warehouse management and other daily business practices.

4. Model advantages.

1. dealers are the first touch of the market, flexible and variable principles of using market expenses, which increases the resilience of the dealer market and makes the fees more efficient.

2. Cost lump sum, high gross profit drive, high dealer motivation.

3. Role change: the company turns from the user of fees to the checker of fees, leading to reliable auditing, monitoring and control mechanisms, and better market order.

4. Result-oriented, simple process, flexible execution and fast financial underwriting.

5. Perfect and advanced dealer communication, training and development system.

5.Model shortcomings.

1. Dealers’ market, management, assessment and other abilities are uneven.

2. dealers are profit-oriented, Farmer’s business process management for dealers is relatively sloppy, and the coverage rate and service level are low due to relatively low output in the peripheral suburban counties.

02.

The three forces of Imairang drinks

1. Product Power

Within Imaro, there is a consensus that the following is the lowest risk venture.

From the product structure of Imaro drinks, it can be seen that in recent years, except for Cool White and Menton Town, most of the other products have “prototypes” in the market, imitating Pulse, imitating Teaπ, soda, functional drinks and so on. Still, they don’t seem to be very satisfactory.

Before was limited strength no way, but now it is different.

As a northern benchmark enterprise, in terms of product innovation, research and development, and food technology have the right to speak, but also in the new research and development efforts, to meet the younger generation of post-90s consumer groups every day want to have a taste of recent taste change of small happiness, more heart, more innovation.

2. brand power.

The brand power in the first and second-tier cities is still weak. Still, the brand power in the lower towns with the tone of “Jinmairang is real” gradually penetrates people’s hearts, accumulating a certain number of loyal customers. Buy Jinmairang is to purchase affordable, the same price, the capacity is 50% higher than other.

3. marketing power.

I have analyzed the four in one many times. You can check my previous articles; here is only a summary of three points:

1/ “Four in one” system and strong incentives to mobilize the front-line staff of high motivation, and thus improve human efficiency.

2/ The “Four-in-One” system has weakened the importance of distributors and given the company more initiative and flexibility in selecting partners.

3/ The quality and efficiency of terminal services are effectively improved through strict systems, procedures and tools.

For the time being, it should be one of the best offline coverage models in terms of stimulating the initiative and even humanity of the grassroots staff.

Of course, the four-in-one also has its improvements, currently only in terms of the small boss to the extreme, the apparent waist strength is not enough.

Just like farmers in the autumn harvest crops, moving a large bag of grain needs waist strength. The small boss’s responsibility is to follow the product sales requirements and maintenance and is an excellent small boss.

The logic of product sales depends on product + tools + methods. Regarding the above question, if the marketing is blocked, many times is the product selection problem? Or a problem with the device? Or is there an issue with the method?

In short, it is certainly not the problem of the small boss, the work of the small boss is by the operational standards to do it, to do it should be rewarded. The management of the small boss should be responsible for the results of the process; at this time, the problem is in the small boss “above.”

The core of solving the problem is to transform the “above” people of the small boss into partners.

 

03.

The three forces of unification

1. Product power

Unification claims to have the most significant food R&D center in Asia, which is worthy of recognition. Unification’s products are excellent, such as Lao Tan Pickle Noodles, Soup Daren, Kai Xiao Zao, Assam, etc., with good quality, beautiful packaging and transparent ideas, which can also be called the industry model.

2. brand power

The north and the south are very different. The south is extreme, the north is relatively weak, and even the northern part of the region rarely sees unified products.

3. Marketing power

About the unified marketing model is very vague, obviously feel that the unified marketing team is relatively “Buddhist,” before the traditional model to later “big package to earn,” to after “big package to earn” promotion failure, the comprehensive set of marketing model does not fully match their own.

In terms of the “big package to earn,” some problems still need to be solved.

1. the “big package earning” model of power, responsibility and profit is unclear and does not match, and the tone is not well set. 2.

2. there is no specific target group positioning for recruiting small bosses, nor is there a complete set of survival rules. The management converts the existing staff into small bosses to complete the assessment, resulting in a significant turnover rate. The workers who are used to taking five insurance and one gold can’t do the job of small bosses, and the rabbits and running and wolves are not the same.

3. north and south of a chessboard, market positioning is not precise, but also did not figure out the underlying logic of the failure of cooperative business, and so on.

04.

The three forces of Master Kong

1. Product Power

In terms of product innovation, Master Kong‘s performance in recent years has been relatively disappointing. It has been a super single product in resistance to volume (instant noodles are braised beef noodles, drinks are iced tea).

Of course, there is a massive flow of products with goods. Other SKU sales will not be too low. Still, suppose Master Kong wants to engage in a second venture. In that case, I believe it is difficult to succeed on the existing products.

2. brand power

Absolute volume determines the whole brand; brand power is indisputable.

3. marketing power

Marketing model of Master Kong over the years without much innovation, in short: the market is divided into 1-5 levels of business circles, 1-2 business circles are the direct mode, manufacturers of personnel to lead single and maintain the market, dealers are purely distribution, 3-5 level business circles to dealers to operate mainly, the director of business management to help supplement.

Master Kong is the channel-intensive cultivation of this deep distribution model to the extreme of the enterprise, matching the brand power of their own products, but also can kill. But the model is lacking in stimulating the initiative of personnel, or to achieve higher human efficiency will pay higher human costs.

05.

In conclusion.

First of all, the above is only a personal opinion, welcome to correct.
In turn, look at the beginning of the problem: how can beverage companies’ layout move toward the scale of 10 billion?
I think the first is to solve product power; if you can not do “three good” products (good quality, good packaging, good ideas), do not blindly invest; otherwise, it is easy to support down the drain.
Secondly, to solve the marketing power problem, good products must match a good marketing model; wine is not afraid of the era of the deep alley has long ended.
The last is to continue to shape their brand power from the beginning to end, which is one of the core values of the enterprise, just like the Moutai wine with a different name and packaging to sell, the farmers’ spring water with another name and packaging to sell, can reach the existing volume?
The answer is yes.

The above gives suggestions to each developing beverage enterprise; welcome to leave a message to discuss the exchange.

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John Lau.

John Lau.

John Lau, a project manager holding an engineering bachelor's degree, became fascinated with optimizing beverage production equipment during his university days. As an overseas project manager, he firmly believes that educating clients on achieving efficient workflows through customized equipment design is one of the most impactful aspects of his job.

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