First, the increasingly competitive milk powder market
In recent years, the domestic milk powder market can be described as full of smoke, and each milk powder brand is madly grabbing terminal resources and playing a big promotion campaign. As we all know, the competition for infant milk powder market is the focus of competition among milk powder manufacturers. Dumex, Wyeth, Mead Johnson and other foreign brands have long monopolized China's infant formula by virtue of R&D foundation, long history and marketing strategy. High-end market share, but with the maturity of local brands such as Sanlu, Yili and Nanshan in terms of technology, process, quality and market strategy, the market competition of China's milk powder will become more intense.
Second, the industry shuffle, the marketing means homogenization, to the domestic milk powder enterprises to stress
According to a McKinsey survey, China's dairy market will reach $20 billion by 2010, and half of the dairy market will be eliminated. The author also believes that the production enterprises in the milk powder market will also become stronger and stronger, and the market tends to end in an oligarch. Whoever grows fast, whoever first discovers the blue ocean of the market and stays ahead in the blue ocean, can become the leader of domestic milk powder enterprises.
But nowadays, the competition of milk powder enterprises in various countries in terms of channels, terminals and milk sources has become increasingly fierce. The penetration of competing dealers, the compression of channel profits, the competition for promotion, and the increasing advertising investment have made the milk powder enterprises in various countries struggle, and the market share of high-end infant milk powder, which has higher profits and is more valued by consumers, has been The strong occupation of foreign brands is even more difficult. As mentioned in McKinsey's research report, in the past year, the milk powder industry's promotion and price wars in the terminal are almost every month; in the point system, the membership system has continuously introduced stable consumer groups. Consumers seem to be more and more awake in a variety of promotions, buying more and more rational, manufacturers' input-output ratio is getting lower and lower.
In order to obtain new sources of channels and more sales tasks, many domestic milk powder brands in 2006 and 2007 turned their attention to new markets such as hospitals and early education institutions. The development of medical channels, baby stores, kindergartens, communities and other targeted consumers concentrated, this seems to be a new highlight of milk powder marketing, but in this regard, many central hospitals in the first and second-tier markets have been monopolized by famous foreign milk powder brands, and The foreign milk powder brand is more mature and more advanced in the operation of medical channels. But those third- and fourth-tier medical markets that have not been developed, it still attracts domestic brands like a huge cake. Of course, the author also believes that this is also an effective method and strategy. Before the medical market is saturated, Every milk powder company can get a piece of it, and they all hope to seize this opportunity to grow quickly and open their opponents. However, I believe that as regulations continue to improve, the limitations of developing and maintaining medical channels will also emerge.
Improve service levels, intensive channel management, fine management of the market, terminal specials, promotion, development of medical channels, competition in traditional marketing has been heated up, the domestic milk powder market seems to be caught in a red sea, how to avoid the Red Sea, find domestic milk powder What is the marketing blue ocean of the enterprise? The rise of online sales should give us a good answer.
Third, the opportunity of domestic milk powder enterprise network sales
In 2007, it was the Year of the Golden Pig, and about 22 million newborns were born. Such a large group will bring new springs to domestic milk powder enterprises. Moreover, the infant milk powder market is an incremental market. Under the same competition, the annual sales growth rate of infant milk powder is higher than other industries. It is also a special industry. First, the purchaser and user of the milk powder are separated, and the purchaser is quite involved. With the development of science and technology and the popularization of education, consumer behavior has also quietly changed. The older generation's parenting experience has been gradually abandoned. The new generation of mothers rely on the advice of the media, doctors and experts. This has also led to the milk powder enterprises to continuously purchase media resources in order to establish a professional image, constantly develop medical channels, continuously improve service levels, conduct expert lectures, and large-scale parent-child public relations activities. The new generation of mothers is the main decision maker of milk powder purchase, and also a business source for businesses. What are the characteristics of these decision makers?
They are a generation that grows with the Internet, and most of them are inseparable from the Internet. The survey shows that the three sources that they value in information collection are “introduction of friends, relatives and friendsâ€, “introduction to television and media†and “networkâ€. Their ages range from 25 to 35 years old. They have their own circles and habits and accept faster new things. Most of them have higher education and higher education, and their income is mainly between 1500 and 3000.
In 2006, the total amount of online shopping transactions in the country was 26.65 billion yuan, accounting for 0.85% of the total sales of consumer goods in the country, and only 0.04% in 2002, which is enough to witness the rapid development of online trade. Among them, Taobao's total transaction volume was 16.9 billion yuan, an increase of 110% over the same period of 2005. This figure exceeded the annual turnover of Lotus (10 billion yuan) and Wal-Mart (9.93 billion yuan) in China, and it was Beijing Wangfujing. The department store group's annual sales were 2.6 times. At the end of the first quarter of 2007, the Taobao.com report released by China's well-known C2C website Taobao.com stated that the total transaction volume of Taobao in the first quarter of 2007 exceeded 7 billion. As of March 31, the cumulative number of registered members. It reached 35.1 million. According to the 2006 China C2C online shopping survey released by China Internet Network Information Center, nearly half of shopping users are women, and from December 2006 to January 2007, Taobao milk powder sales in just one month. Nearly 300,000, undoubtedly, these figures have great appeal to domestic milk powder breakthrough in the infant milk powder market. The prospect of network marketing is also optimistic about the manufacturers, but how to carry out it well, but has been confused by the milk powder enterprises. Manager.
Fourth, how to develop online sales
Now some of the more business-conscious milk powder dealers have begun to establish platforms on the Internet to sell, and the emergence of new things must have the soil for their development. This phenomenon is also really gratifying to the author, but after all, it is only a small fight. How to develop a new sales model, how to deal with conflicts with traditional channels, and how to quickly open up followers, these problems have been plaguing corporate managers. Now the author is ignoring the jade, publishing some of his ideas and pilot experiences, and discussing and learning with readers.
1. SWOT analysis of domestic milk powder enterprises in network marketing
S: 1, a relatively complete distribution entity, the products are well distributed in cities across the country;
2. Covering a more comprehensive logistics system;
W: 1. Lack of experience in website operation,
There is no accurate and scientific investment income analysis mechanism;
2 Domestic brand appeal needs to be strengthened;
O: 1. Foreign milk powder brand network marketing is not mature;
2. Can obtain detailed data and customer data of real high-end consumer groups;
T: 1. Foreign brands have considerable market share and brand power;
2, easy to cause confusion in the price system, the difficulty of dealer management, lack of corresponding organizational structure support;
2. Analysis of the advantages and disadvantages of the network sales model
There are three kinds of online sales models for domestically produced milk powder. The former is to distribute milk powder through the professional sales platform of maternal and child products. (For example, Huaying.com, Red Kids and other types of websites) use the mother-infant shopping platform to realize the distribution. . Lee: 1. Develop virtual dealers and reduce distribution links; 2. Such platforms are generally equipped with physical store and telephone ordering systems, which can eliminate consumers' concerns about payment security; 3. Enterprises purchase through this platform Consumer service costs are small; 4. This maternal and child products agent sales platform generally has its own distribution system and distribution scope. Disadvantages: 1. Unable to obtain consumer information, there is a strong dependence on this platform; 2. Due to the reduction of distribution links, let the benefits to consumers. Low supply price will also generate the risk of dumping goods; 3. The profit-seeking nature of the third-party platform will make its marketing resources on the competitive brands with larger profit margins, thus making existing consumers turn and lose customers. . The second type: through the well-known C2C platform such as Taobao, eBay and other sales information, with the help of express, post office or corporate offices throughout the country, dealers to achieve logistics. Lee: 1. Platform management, order management does not require a lot of human resources; 2. Can have a stable customer source and accurate consumer information, easy to enhance loyalty through services. Online payment can speed up the company's capital turnover; 3. The company has completely independent pricing power, and can also more accurately understand the promotion effect of online activities; 4. Obtain objective and timely sales data, and more simple inventory management. Disadvantages: 1. Sales through this platform will be much smaller than traditional channels; 2. Inconvenient enterprise information management, order processing and financial process processing are risky; 3. The dealer's cargo flow is not easy to supervise, direct delivery through the dealer Resolving logistics may weaken the company's control over the sales platform.
The third type: the company builds its own online sales platform, promotes its own operations, and uses the national marketing network to realize the distribution or distribution of business outsourcing to third-party platforms. Lee: 1. Less distribution, gain more profit space; 2. Dependence on channels and dealers will be reduced, or more advantageous in the negotiation with the channel, market personnel are easier; 3. Marketing expenses are reduced (such as promotional items procurement, inventory, transportation) 4. Accelerate capital turnover, reduce financial processes; 5. Make full use of data mining technology to obtain accurate market data and customer information to assist decision-making; 6. Promotion information and reputation spread faster and better wide.
Disadvantages: 1. The self-operated platform has a large investment, and the maintenance is not easy to suffer losses; 2. It is easy to cause confusion in the price system of the physical distribution channel; 3. The promotion and distribution planning of the self-operated website; 4. Consumer complaints Improper, the impact of negative information on the brand will be enormous.
Generally speaking, for domestic milk powder enterprises, it is easier to see the benefits of building a C2C platform. But it takes a long time to be bigger and stronger. The use of third-party baby products monopoly platform, benefiting quickly, can achieve a certain amount, but it is prone to the phenomenon of dumping goods, and more troublesome is the inability to establish their own consumer database, the development of future marketing work is very Big loss. Self-built online sales platform is still the general direction of high-end customers. It can not only rely on the company's platform to become bigger and stronger, but also have its own target consumer information. As for the promotion of the sales platform, the author thinks that the problem is not big. At present, there are already Some domestic brands of strong milk powder have been interactively promoted with well-known domestic maternal and child websites. This has laid a good foundation for the online sales platform, and its experience and model are also worth learning and application.
In short, the maturity of models such as online sales, telephone ordering and TV shopping channels will inevitably bring new enlightenment to the channel reform of the milk powder industry. At the same time, consumers' behavior habits are also changing. I hope that milk powder enterprises in various countries can seize new opportunities, adjust marketing channels and strategic directions in a timely manner, keep pace with the times, and constantly innovate to break the pattern of high-end market for infant milk powder. It is also the direction of the domestic milk powder industry.
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