Why Can Integrated Marketing Achieve The Blue Sea Market?

I think I have put forward a very good idea to Zheng Yaonan, President of Dongguan city beauty industry limited company. I hope he can rely on 2500 underwear chain stores to do network marketing, so that we can achieve the perfect combination of online and offline businesses. But Zheng Yaonan is resolute: not to do it now! Our underwear chain monopoly mode has created a blue ocean, and there is still a vast expanse under the Internet.

Before 2002, the middle and low end underwear business model was very simple. Some lingerie shops or some wall on the edge of the shopping mall were all the business of underwear sales, with only a single variety of underwear, or bra, almost entirely relying on the natural marketing of passenger flow.

After establishing urban beauty in 1998, Zheng Yaonan did not find satisfactory marketing mode for a long time.

He found that a woman had to buy a close fitting garment, such as underwear, underwear, socks, household, warmth, vest, body shaping and so on. He had to go a lot of places to buy it, and the brand was different, and the price fluctuated greatly.

He feels that it is possible to integrate ladies' personal clothes into a exclusive store, as long as you go to my store, underwear, underwear, socks, home, warmth, vest, body shaping, and even buy men's underwear pajamas for their loved ones.

At that time, even high-grade underwear did not have this pattern.

He caught the consumers in the hope of getting the benefits and the brand mentality, making the urban beauty the most cost-effective product.

When high and low-grade brands are mixed up in commercial super market, this integrated marketing mode has created a new road, so that they can quickly widen the gap with their competitors and get rid of the previous four years' hesitant.

In the next few years, its opening speed almost doubled every year.

Until today, the number of 2500 stores has been ranked first in China's underwear chain.

If the success of urban beauty is only summed up as the aggregation of similar products, the creation of a fashionable concept will break out of the blue ocean market, which is undoubtedly a superficial bias.

Over the years, trying to break the limitations of single product profit, product integration is everywhere, the top is sports apparel, shoes, hats, clothing, and even sports equipment are displayed in the store (recently, Gome's sports retail brand - sharp move is to take this route), but few success.

Integrated marketing itself does not create new consumer groups. In essence, simply placing related products in the same store does not create the blue ocean, but it can increase the customer price per consumer.

Whether to create the blue ocean has a standard, that is, what is the opponent? If the opponent is few, it is blue ocean naturally; if your marketing power exceeds your opponent, it also proves that you are blue ocean.

Urban beauty is the latter. Although the channels of underwear brand and underwear sales are still numerous, the comprehensive marketing power created by innovation is not available to all competitors.

The marketing power of urban beauty includes four chains from front-end to terminal: supply chain, franchisee, refined terminal management and staff.

The first problem facing integrated marketing is whether the cost and price have gone down or gone up after product integration.

You want to let consumers avoid the trouble of choice, but consumers want to save money.

If the price of the integrated product is not falling, the overall solution of the one-stop shopping is just a concept of fooling consumers.

It is certainly more expensive to buy sports equipment in clothing stores than to buy them in sports stores.

Product convergence is bound to pose a great challenge to the supply chain. Let's see, there are eight kinds of products and three series of products in urban beauty. They are classified as high-end underwear, 25~45 years old, purple sunshine, 15~22 years old, urban beauty, 25~30 white-collar women, and consumers in the north and South have many different products.

That's why opponents can't follow.

Some people do well pajamas, do poorly brassiere, do well in bra, do not keep warm clothes.

Although these are all women's underwear, they all belong to different categories and industries. Many enterprises do not have such a strong combination ability.

Zheng Yaonan could not do it at the very beginning.

In order to make up eight major categories, they have been acting on other brands, but since then they have more trouble: entangled and tangled market protection (the city beauty set up shop in Fujian, but the agent's products have exclusive agents in Fujian, and their own stores can't sell that product), the quality is unstable and the goods are short.

In order to get rid of all his troubles, he completely gave up agency in 2003 and made all his own products.

For this reason, two strategic partners have been successfully introduced. One is Zhang Shengfeng, a global buyer who has over 20 years of experience in the field of procurement and R & D, and one is Lin Zonghong, a connoisseur of 20 years of experience in the production field.

Their joining has greatly solved the problems faced by urban beauty in production and R & D.

This breakthrough is very important, which indicates that the enterprise that has made product brand and channel brand has solved the bottleneck of upstream supply chain and has made a qualitative leap.

City beauty shop success rate is very high.

There are several factors that determine the success of a store's opening: first location, second goods management, third store manager and staff recruitment, fourth shop guide.

This series is called the "worry free babysitter program".

About site selection, Zheng Yaonan is learning from WAL-MART and 7-11.

He rarely advertises and thinks his shop is an advertisement (which is also due to their confidence in the shop).

The product is in the commercial street, community and University Town, which is a kind of convenience and coverage. I have provided enough products, so long as they can be covered, they can bring sales volume.

In terms of goods management, there is a difference in every store, especially in the north and south of China.

Every time we enter a new market, companies invest heavily in opening a special store, such as Hebei, opening shop in the best commercial street, and feel the impact of the market for the first time.

This reaction will be slow if we go through distributors.

They will be able to develop local franchisees by adjusting their cups, codes, colors and so on.

Once every 3 months, the store manager training is not lonely for the franchisee to open shop, and it will not matter if they are not doing business. The construction team is responsible for opening the shop, supervising and assisting to improve the performance, opening 5 days are there, and visiting every month. They have opened ten training courses for franchisees, and continuously instructed store management to ensure that the cost is recovered within the next two years.

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Integrated marketing aims to provide customers with a set of overall plans, and of course, it needs more sophisticated management of the whole system.

Zheng Yaonan said, "your sales and marketing" recently has an excellent article. Why is it that "marketers can't go from excellence to excellence"? Many marketers always think that they can succeed in finding a good idea, but what happens after a spectacular event? Enterprises still have to run for a long time.

So he thinks that planning, ideas and ideas are all surgeons, and they have finished the operation disease well, but there are many sequelae. The real marketing masters are not just surgeons. They should know more about health care as well as the health care doctors. Where are the internal problems of the enterprises? How do you replicate yesterday's success? How to let the internal forces push the enterprises forward? All these require meticulous conditioning.

Urban beauty can achieve meticulous management through systematic experiments. For example, how many employees should be allocated to a franchised store? Many businesses may be determined by their feelings, but they are not. They are experimenting on the basis of marginal effects: a store of 50 square, with 4 employees, achieving 100 thousand yuan performance, and then trying to increase employees; the original performance of 25 thousand yuan per person, if the increase is one, how much can be generated, generally will increase the number of 10 thousand yuan performance, which can also increase. If we add another, the marginal benefit is 8000, which is not cost-effective.

They also do such an experiment: how can we improve performance when people flow unchanged, employees remain unchanged, and the market remains unchanged? They will try from different aspects, including employee attempts, merchandising attempts, price attempts, set up different variables like an equation, and test the different performances that are brought along. Instead of unlimited increase or unwarranted reduction of employees, the maximum profit can be achieved, but there is a peak, constantly testing to find this peak.

They have a IT system that accurately calculates the customer price, passenger volume, sales ratio and proportion of the container. At the same time, it also dispatched on-site personnel to calculate how many people are going through the hour, how many people are concerned, how many people enter the shop, how many people buy, how much is the wastage? How much time do they stay in front of each product?

Through these meticulous management, bring some standardized things, when replicating shops, we will have a good idea.

The turnover rate of circulation enterprises is very large, especially in the exclusive stores, the loss rate at the grass-roots level is about 60%, but in the urban beauty, the control is less than 20%.

This figure compares the difference in the way employees are managed.

As a grass-roots employee, in general, every 3 months will change in mood. Once managers ignore their emotional changes, they will be leaving sooner or later according to the comparison of the 90's shopping guide.

Urban beauties express their feelings for employees through a way called coke conference.

The shopkeeper would like to take a guided tour to McDonald's to sit down and chat and invite her to have a coke.

Talk about sales, chat about life, talk about goals, and relax in a completely new environment.

At the cola conference, the store manager consulted the management suggestion, and once the employee put forward a suggestion: PK Wang.

The two adjacent stores are almost the same. A challenges the B. A will do 200 thousand yuan next month. How much can B do? B says it can do 230 thousand yuan.

Half a month to make a summary, the loser shops will visit the winning shops, then compete to see who completes the task first, so as to stimulate them to finish earlier, and the loser must write a surrender.

After the implementation of the plan, the effect is very good. People's fighting spirit is stirred up. Employees will voluntarily work overtime or call customers.

This way is self motivation, which is the best and the most difficult.

The store manager will ask the staff about their future plans. Do they plan to sell them here in 5 years? Everyone says they don't want to shop.

They encourage their employees to have such ideals. Only those who have such ideals can be trained.

The question is, what should you do now? We have ten management of the store: brand management, promotion management, crisis management, goods management, staff management, exhibition management, atmosphere management and so on. Have you learned the ten management?

This communication enables employees to find the motive force for their struggle and cultivate a stable team.

In short, the integration of the supply chain has achieved the advantages of cost and R & D, and the plan for franchisees is to cover coverage, fine terminal management and staff potential stimulate to form a strong store advantage. They have accumulated potential energy on every chain and have reached the overall height.

At his height, no one else can do or do well, thus forming a blue sea cofferdam, which has opened up a vast market.

The establishment of a model is inseparable from the influence of trader.

Zheng Yaonan has three characteristics and has great influence on the success of this mode.

In 2003, when he was ready to join in the franchise, he met his first shareholder, Mr. Cheng Zuming (now in charge of joining the market and brand operation). He reorganized the franchise system, realized the pformation from his own growth to the growth of borrowed power, and established a new business model.

In 2006, he met two other shareholders. Mr. Zhang Shengfeng's rich buyer experience straightened out the supply chain. Mr. Lin Zonghong thoroughly solved the problems faced by production and R & D.

In 2008, he launched the employee stock ownership plan, which greatly solved the problem of introduction of top management.

A team with complementary strengths is not easy to come by. Zheng Yaonan is good at retail and store management. Zhang Shengfeng's 20 years of global buyer experience make them complex and well organized, and Lin is a professional in the field of production and design. Cheng Zuming is the trader of the whole franchise system.

Professionals in channel, retailing, shop management, production and purchasing are gathered in a team to make Zheng feel lucky. He always meets the right people at the critical moment and returns the resources through sharing.

He said he has grasped these core elements at every stage. If a certain stage is not grasped, if there is no team that is complementary to each other, there may be no way to do it today.

It is said that he spent 1/3 of his time in walking management, and now he has passed 1/3 of the shops.

He thinks that the bigger the enterprise is, the easier it is for the middle class to get into trouble. How to make this class run more efficiently? He will not ask the middle level directly, because they will find various reasons to explain why they can't do well. He looks directly at the bottom of the floor, and the bottom line is the middle level answer.

He does not pursue speed.

In the next 5 years, the number of stores will be expanded to 5000 to 6000, and 800 will be steadily advancing each year.

It is a matter of decades to run a business. It is enough to stick to one goal at every stage.

Back to the beginning of the Internet marketing problem, he said, the temptation of entrepreneurs is too much. When I calm down, I will think about what I want to do.

I want to be the largest underwear brand in the country, not the most high-end, but the biggest selling brand, the most commendable brand that people can afford to buy. This is positioning. We are now concentrating on chain stores, and will not blindly pursue the diversification of marketing mode. In the future, conditions will mature or may be done, but now, we are concentrating on this.