What Is The Strategic Reflection Of "Strategic Single Product"?

Enterprise management, product Be king

Chinese enterprises were once confused by the illusory concepts of "positioning", "mind" and "communication", and once neglected that the core of business operation is to manage products. Products, and only products, is the foundation of enterprises.

Study China market After the environment, the importance of all marketing elements has been ranked, namely, product - access - brand. This ranking is still very consistent with the reality of the Chinese market, at least in line with the actual situation of the Chinese market in the first 30 years.

All business and strategy of an enterprise are good. brand The core of marketing or marketing is to operate around products or services.

"Marketing is gross, product is leather", "brand is wool, product is skin", no product, enterprise marketing and brand, "skin is not left, wool will be attached"?

The operation of an enterprise is actually a process of providing supply to meet demand. The core of this supply is supply. Without good products, how can we link businesses with consumers?

Without good products, where are the brands attached?

Without good products, what are the channels to sell?

Without good products, what do businesses do?

Products, and only products, are the core of enterprise management.

All brands are backed by strong products.

A brand from small to large, originated from the success of specific products. In the initial stage of brand, brand is attached to the product. At this time, if products are innovative products, that is, strategic products, then the strategic products will quickly get the recognition of consumers.

Once consumers identify their characteristics of the strategic products and their characteristics, they can be directly attributed to the brand and form a brand concept. At this point, a successful product brings out a successful brand.

After studying the Chinese market environment, the importance of all marketing elements has been sorted out, namely, product - access - brand. This ranking is still very consistent with the reality of the Chinese market, at least in line with the actual situation of the Chinese market in the first 30 years.

The practice of reform and opening up in the past thirty years has proved that successful large-scale enterprises are those with good product quality and good channel operation. Wahaha, Galanz, Midea, Haier, farmer Hill spring, Kangshifu, Erie, Lining, Anta, Smith Barney... "Product strength is sales force". The success of these successful enterprises is first due to the success of their products. Products are the biggest driving force for the growth of these enterprises.

Let the enterprise return to the origin of marketing, let the enterprise return to the origin of brand management, this is my urgent appeal. Product is king, product driven, especially strategic single product driven, is the Chinese enterprise has always insisted on the success of this.

Is it important to have many products or many good products?

Many enterprises, especially those with a certain scale and strength, tend to have more than one product line, not only to produce one product, but also to have two or more product combinations.

So, is it important for this type of enterprise to be multi product or strategic single product?

For the vast majority of enterprises in China, more enterprises are relatively weak in strength and small in scale, and are still at the stage of development, far from developing to maturity. For Chinese enterprises in the rising period, they usually encounter such problems as whether multi products are important or strategic single products are important.

Consulting Shen Zhiyong believes that strategic single product is more important than multiple products. Why?

Because the vast majority of Chinese enterprises are still in the stage of development or rise, and the strength and scale of enterprises are very limited. In this case, if we take a multi product strategy hastily, we will face great risks if we do not cultivate our own strategic products.

On the one hand, the financial, material and human resources of enterprises are limited. The development of multiple product combinations will inevitably result in limited investment in individual products. Then, if the product cluster that fails to concentrate on enterprise resources can win the recognition of consumers once it is launched into the market, it is obviously not possible.

On the other hand, the homogenization of products is becoming more and more serious, and the market competition is more and more intense. Only the truly creative and powerful products and services can win the chance in this market environment. Conversely, those mediocre products and services are often denied the opportunity to show their faces.

On the contrary, if an enterprise can focus on a product or service, and conscientiously do well in the product and service, then it will win. In the current market environment, fish can not be caught by spreading nets widely. Instead, if you concentrate on a product and service and make it the ultimate, you will achieve great success.

This is the strategy of large single product strategy.

The so-called large single product strategy is the limited strength and scale of enterprises, do not rush to expand their product lines, do not have a wide range of dreams. Instead of focusing on the wide range of products, it is better to aim at the products with the greatest potential in the market, innovate in categories, concentrate on cultivating their own strategic single products, and rely on strategic breakthroughs in single products to build brands.

In China, many companies adhering to the strategy of big single products have a good and brighter future. On the contrary, many enterprises that are blindly expanding, eager to rush ahead, and seek for perfection are often struggling in the muddy marshes.

There are many classic cases in this respect. Let's take six walnuts.

Before the grand launch of six walnuts, the category of Yuan Yuan was very broad, and the mainstream beverage categories of the market had entered, such as carbonic acid, fruit juice, milk and so on, and there were as many as 15 species.

The consequence is that the operation of enterprises is not focused and the marketing power is obviously dispersed. The performance in the market is that many of its products are all dead and alive, and sales are not satisfactory.

Nourishing yuan is painful. In the later stage, through focusing on products, walnut milk was chosen as the breakthrough point. Therefore, the chaotic marketing has finally got the direction and the key point.

Through the introduction of six large walnut products, Yuan Yuan has achieved great success, so that enterprises have renewed their youth and vitality. In 2005, six walnut brands were established, with sales of 30 million in 2006, and more than 30 billion in 2011, and continued growth in 2012. The strategy of raising six walnut products is overwhelming and unstoppable.

　　 The future competition between enterprises is the competition between large single products and large single products.

The so-called "strategic single product" is relative to the conventional tactical products. Since it is called "strategic single product", what is its strategic reflection?

The birth and launch of strategic single products is not for tactical purposes of enterprises, but for strategic business purposes of enterprises.

It is not launched for tactical purposes of enterprises, because it is neither for simple market segmentation, nor for enriching the product line of enterprises, nor for resisting opponents, but for the purpose of meeting a new strategic change in consumption demand structure, which is born to create a new market and is born to create a new category.

Its strategic mission is to become the king of the new market, to become a representative brand of new products, to become a bigger and stronger nuclear weapon for its own brand, and become a main product to meet the new changes in the structure of consumption demand.

Therefore, this "strategic single product" can not be generalized by the concepts of star products, core products, running volume products, image products and blocking products that we routinely talk about. Its connotation and mission are much higher than those of product concepts.

The so-called "strategic single product", why not called "product" or "new product", rather than "single product"?

That is because, after years of research, the author found that small and medium-sized enterprises, which have just been innovating, have become large and medium-sized enterprises. The competition between them is the single product winning, not the product group winning.

The success of China's successful enterprises is often due to a large single product. For example:

Kangshifu's braised beef noodles, 7 billion, 40% of the annual sales of Kangshifu company comes from braised beef noodles.

Wahaha's nutrition express sales volume was 15 billion in 2011.

Jin Mai Lang, 1 billion 500 million.

Mengniu's yogurt exceeded 2 billion in 2005.

XTEP's beacon shoes sell up to 1 million 200 thousand pairs annually, and so far fifteenth generations have been launched.

However, Chinese enterprises, even successful Chinese enterprises, have only stayed at the brand level of category representatives, and have not yet become longevity brands.

World class successful companies often have several large single products, and many of them are longevity brands. For example:

Coca Cola Co has annual sales of over $10 billion, and it has more than 500 products sold around the world, with two or three large single products.

P & G, an aircraft carrier company, has more than 300 single products, and its annual sales volume exceeds 1 billion US dollars, and there are 10 large single products.

Wrigley Company now has annual sales of over $5 billion. In 1920, the annual sales of Wrigley gum reached 9 billion 200 million yuan, becoming the largest single product (green arrow) Company in the world.

The brand management of all brand enterprises is run through the core of strategic single product management.

Because the new product is not known to the public, the strength of the enterprise itself is also limited. Therefore, when the enterprise just started innovation, the most effective strategy is to concentrate all the strength on a single point to make breakthroughs. In terms of products, it concentrates on single category rather than multi category, and uses the single product breakthrough mode to cut the market quickly. Just like the beginning of the category innovation, Wang Laoji took the red cans as the core. The beauty is the mask as the core. The Tai Chang foot bathtub is based on the Jin Tai Chang 1017.

After breaking through the strategic single product strategy to open the new category market, enterprises enter the development stage. At this time, due to the differentiation of consumer groups and the needs of subdivision channels, it is necessary for enterprises to expand the product line around the core of strategic single product. Even so, in the development stage, the outbreak of enterprise sales is still the largest sales volume from strategic single products.

When the enterprise has passed the development stage and the sales scale is bigger, the product competition between big enterprises and big enterprises has become the decisive stage for the big single products between the wheat and the large ones. At this time, the contest between the top companies in the industry is the contest between the large single products that can make the market share and the Ti Gaoying interest rate on a large scale. The final result of winning or losing is to distinguish the high and large products with such large scale and strong products. Just like the competition between the noodle noodle in the instant noodle industry and the old sauerkraut noodles, like the competition between the red cans Coca-Cola and the blue cans Pepsi Cola in the carbonated drinks, just like the competition between P & G Head and Shoulders in shampoo and Unilever Qingyang. They all belong to the competition situation of big single product confrontation.

So, in the future, the competition between enterprises and enterprises is the battle between big and single products. Without a large single product, there will be no strong brand, and there is no long life brand without long life.