The Rise Of "Local Champions"

In China

The story of the rise of the red cans Wang Lao Ji is familiar to everyone.

Before 2000, red canned Wang Laoji was only a local brand. Its sales area was limited to Guangdong and southern Zhejiang. Its annual sales volume was only 100 million yuan.

By 2009, sales of 16 billion yuan made Wang Laoji a household name in China.

Today, Wang Laoji's sales in single cans have surpassed Coca-Cola and become the brand of beverage that is similar to Coca-Cola.

What is the reason behind the phenomenon of "Wong Lo Kat"?

A prerequisite for success is to conform to the consumer's perception.

In the early 1950s, Wang Laoji's herbal tea shop was divided into two parts: in mainland China, the brand of Wang Laoji belongs to the Wang Laoji pharmaceutical Limited by Share Ltd; in the countries and regions outside the mainland of China, the Wang Laoji brand is registered by Wang's descendants.

JDB is licensed by Wang Lao Ji pharmaceutical company, and is provided by Wang's later generations in Hongkong to produce and operate Wang Lao Ji brand canned herbal tea exclusively in mainland China.

The definition of cool tea as a new beverage category, giving the consumers a "legitimate" status of cool tea, is a breakthrough in building consumer cognition by Wang Laoji. Making herbal tea conforms to the basic characteristics of beverages, such as taste, is another innovation that complies with the needs of consumers.

Since it is a drink, Wang Laoji has any particular reason to let consumers purchase desire? In our research, we found that consumers in Guangdong mainly drank red pot Wang Laoji in barbecue and mountaineering, because "eating barbecue is easy to get angry and drink a can to prevent it first".

The positioning of "prevention of excessive internal heat" has enabled Wang Laoji to find reasons for national consumers to accept and open their door of cognition.

Around the clear brand positioning, Wang Laoji quickly launched the advertising strategy with the theme of "fear of getting angry and drinking Wang Laoji".

In order to better arouse consumer demand, TV advertisements choose five scenarios that consumers think are most likely to get angry: eat hot pot, watch the ball all night, eat fried food, barbecue and summer sun bath.

In the advertising picture, people enjoy the above activities while enjoying the red cans, Wang Lao Ji.

In addition to emphasizing the traditional channels of POP advertising, Wang Laoji also cooperated with the development of new catering channels, designed and arranged a large number of terminal materials for catering channels.

In sales channels, Wang Laoji boldly innovates.

Careful people will find that Wang Laoji can be seen in shopping malls, supermarkets and stores in the first and second tier cities.

It is said that Wang Laoji's terminal construction work is very meticulous, for example, every business person must put up 60~70 POP posters in the terminal store every day.

Of course, Wang Laoji also has an excellent pen in packaging design, crisis public relations, team building and cost management.

The excellent performance of many links made Guangdong cool tea, which has been partial to Guangdong for more than 100 years, moved to the national market.

In a specific market environment, it is not new for small and medium-sized enterprises to earn enough money.

And when the market enters the mature competition, it is the key to success to tell the consumers the irreplaceable nature of products before grabbing them.

In the Chinese market, Lining, Anta, PEAK, PEAK and XTEP are facing up with international brands such as Adidas and Nike. Heng and Vinda, the biggest paper towel manufacturer in China, are strong competitors of international giants P & G and E; Wahaha, Yili and Mengniu are also the main force in the market; the fame of Tianyu, TCL and China can even match the world's top mobile phones, home appliances and consumer electronics manufacturers.

The emergence of new brands will undoubtedly lead to a highly fragmented market structure. For multinational groups, Chinese local enterprises have become their strong competitors.

Transnational giants need to learn the response speed, learning ability and risk tolerance of "local champions" to reformulate strategies.