[Direct Report Network Beijing April 12] (East E-Jiao) What is the positioning strategy? Why does East A Ejiao with a thousand-year culture choose a positioning strategy? How does Dong'e Ejiao practice its positioning strategy?

 

On the afternoon of April 9, 2019, the "Business Entrepreneurship and Innovation" course of the Communication University of China invited Qin Yufeng, Party Secretary and President of Dong'e Ejiao Co., Ltd. to share. Based on the positioning strategy of Dong A Ejiao for 12 years, Qin shared his thoughts and explorations on positioning strategy.

 

Dong'e Ejiao Qin Yufeng: Positioning - the core of corporate strategy

First, the eve of "positioning" - encounter development challenges

Dong'e Ejiao, the country's largest nourishing health Chinese medicine Ejiao manufacturer, China's first nourishing health brand. Over the years, relying on the two masters of quality and innovation, Dong'e Ejiao has successfully moved from a remote county to the whole country and the world. But if the time is set back to 12 years ago, the East Ejiao at that time was facing a huge dilemma.

 

In 2006, Ejiao's raw materials were short of fur resources, unclear strategy, diversified business, scattered resources, and weak growth. Many problems were all on the East Ejiao. More deadly, as Ejiao goes to aging and low-end, Ejiao's entire category is marginalized. The number of Ejiao enterprises in the country has also dropped from more than 50 in the 1980s to only two.

 

As Jack Trout said, “There is only one way to continue to make cheaper products, because the opponents will find ways to keep prices down.” What to do? How to change the status quo of marginalization? The reality is that East Ejiao has to be forced Make strategic choices. After repeated scrutiny, Dong E Ejia chose the “positioning strategy”.

 

Second, the "positioning" strategy - "single focus, multi-brand" strategy

 

After continuous research and combing, Dong'e Ejiao has clearly defined its strategy to focus on Ejiao's main business and cultivate multiple brands; continue to promote the Ejiao culture marketing and value return project; return to nourish the value of top grades and high-end nourishing customers; implement the development of the donkey live circulation To enhance the comprehensive value, to extend to the upstream and downstream of the industrial chain; to use global resources; to enhance brand awareness and customer lifetime value through experience marketing, to move toward world-class enterprises.

 

Dong'e Ejiao Qin Yufeng: Positioning - the core of corporate strategy

First, Dong'e Ejiao decided to focus on Ejiao's main business, cultivating multiple brands, and divesting non-Ejiao businesses such as beer, medical equipment and printing.

 

Second, the brand push category is hidden, thus leading the development of the gelatin industry. After making this category of Ejiao and improving the value of this category, companies with high brand awareness and good product quality will undoubtedly get the most benefit. Therefore, Dong'e Ejiao has always been based on Ejiao in the pre-marketing promotion, rather than Dong'e Ejiao. The purpose is to let more people know the Ejiao category. In 2006, the total sales of the Ejiao category was only 500 million yuan. Even if Dong Ejiao accounted for 70% of the total, it was less than 300 million. However, the current sales of a product in Dong'e Ejiao has reached more than 50 billion, and the entire category of donkey-hide gelatin has exceeded 30 billion. Dong'e Ejiao promoted the prosperity of the whole industry through “hiding the brand promotion category”, which in turn led to its own rapid development.

 

Third, in terms of product positioning, Dong'e Ejiao cultivates multiple brands according to the “single focus, multi-brand” strategy. At present, Dong'e Ejiao has a number of products and brands such as Jiuchao Gongjiao, Dong'e Ejiao, Compound Ejiao, Peach Blossom Ejiao Cake, and True Molecular Ejiao to meet the needs of different consumers.

 

Third, the "positioning" matching name - the implementation of three major projects, breaking through the three major bottlenecks

 

After the product positioning and selection are clear, the next step is to make resource support around the entire strategy. The entire Dong'e Ejiao operation system needs to be adjusted accordingly. Specifically, Dong'e Ejiao has broken through three major bottlenecks by implementing three major projects to support the implementation of the entire strategy.

 

(1) Launching cultural experience marketing and value regression projects to break through the marketing bottleneck

 

Why use cultural marketing to break through the marketing bottleneck? Because the history of Dong'e Ejiao is close to 3,000 years, in the process of the development of the three thousand years, a large amount of history and culture has accumulated. This is the advantage of Dong'e Ejiao. Resources utilized. Initiating cultural marketing is also the expectation that the historical experience will be restored to life by returning from the classics to the life. The cultural marketing of Dong'e Ejiao experienced three stages from 1.0 to 2.0 to 3.0.

In the future, Dong'e Ejiao will develop and innovate products based on two paths to meet the needs of different groups of people. First, through the "Ejiao + new technology", the development of products based on medical functions. For example, the true face of "Ejiao + Biotechnology" can make the skin absorb faster. The instant gelatin block of “Ejiao + Low Pressure Microcellular Molding Technology” makes it easier to take. Second, through the "mature category + Ejiao", to develop products based on health products, such as "Ejiao + jujube" gelatin jujube.

 

Six, the three magic weapons of Dong'e Ejiao brand strategy

 

After a few decades of development, Dong'e Ejiao is still full of vitality and vitality, which is inseparable from the following three experiences.

 

First, positioning is the core of strategy. Positioning is to give the brand precise guidance and efficiently access the customer's mental resources.

 

Second, the primary responsibility of category leaders is to lead the benign development of categories, and the category of leading brands has the greatest benefit. The boss must have a heart, a pattern, and not be able to make himself bigger.

 

Third, culture is a resource for sustainable use. It is necessary for culture to inject soul into products and enhance product connotation and premium ability.

 

Zhang Dong Dialogue Qin Yufeng

 

Dong'e Ejiao Qin Yufeng: Positioning - the core of corporate strategy

Zhang Dong: How many hairy donkeys are raised, why does Ejiao have a raw material bottleneck? And why are the prices of different Ejiao products worse than ten times?

 

Qin Yufeng: Because the Ejiao industry has been very prosperous in recent years, there are hundreds of companies that do Ejiao in the country, so they will face the shortage of raw materials. Now the biggest problem in the Ejiao industry is the phenomenon of counterfeiting and shoddy. The rind of rind is 580 yuan a kilogram, close to two kilograms to get a pound of gelatin. Ejiao products that sell for tens of dollars to one hundred dollars are not enough to buy raw materials, and the quality of the products is self-evident. But as law enforcement becomes stronger, I believe this market will become more benign and healthier.

 

Zhang Dong: Some people have suggested that Dong'e Ejiao is more expensive. What do you think of this view?

 

Qin Yufeng: There is a misunderstanding under the traditional cognition. For example, Ejiao is sold by jin, and two thousand pieces are one hundred pounds. Cordyceps, bird's nest and red ginseng are all sold in grams. If it is priced in grams, Ejiao is the cheapest health care product, the most cost-effective.

 

Dong'e Ejiao Qin Yufeng: Positioning - the core of corporate strategy

Zhang Dong: What do you think is the pain point of Dong'e Ejiao so far? What is the worst thing to overcome?

 

Qin Yufeng: The biggest pain point of Dong'e Ejiao is like Ren Zhengfei's talk about Huawei. He entered the no-man's land and there is no benchmark in front. Dongjia Ejiao's benchmark in Ejiao is not any Chinese medicine company in China. Now we are targeting Japan, Hanfang medicine accounts for 85% of Japan's share, and Korea's Zhengguanzhuang is our target company. We have strategic cooperation with them to make Ejiao international as soon as possible, and to enter new people with new channels, new media and new products. If this aspect is not solved well, Dong'e Ejiao will one day be replaced. Let Ejiao pass for another three thousand years. This is our mission and our responsibility. I believe that with the revival of Chinese culture, the revival of the Chinese nation, and the Chinese medicine going to the world is only a matter of time. Dong E Ejia is willing to be a leader in this regard.

 

question Time

 

Q: We must speak outside, and what are your key actions in leading and mobilizing all employees to implement the new strategic model?

 

A: Implementing a positioning strategy is a very difficult process. We often hire some professional managers to be the general manager of the marketing department, but now I have changed ten general managers, as long as I do not follow the strategy, I will replace them. This is the challenge, and you must be steadfast in implementing my strategy, which is very difficult. For example, ISO9000, with the customer as the focus of attention, all your problems should be considered from the perspective of the customer, not from the inside of the enterprise, the brand must be stationed to the outside, external management is much more difficult than internal management. The outside is the mind of the consumer. Positioning is not the position I impose on the product, nor is it created by us. This is what consumers have in mind, and we just awakened this kind of cognition.

 

Dong'e Ejiao Qin Yufeng: Positioning - the core of corporate strategy

Q: How does Dong'e Ejiao “position” the merger? How will it develop afterwards?

 

A: Your problem is exactly the opposite of Dong'e Ejiao. We are not a merger, but a focus. We sold out all the other businesses of the company and spent more than 10 years completely withdrawing. Our future mergers and acquisitions are based on qi and blood products and products related to Ejiao's main business. Now that we have acquired a velvet antler company, we can make it public here that 70% of the world's antler is in the hands of Dong'e Ejiao.

 

Dong'e Ejiao Qin Yufeng: Positioning - the core of corporate strategy

Q: The location of Dong'e Ejiao is very successful. Is it only the industry boss that has a living space? If you can't do the industry leader, is it necessary to find another way, and you must seek the first position in other fields?

 

A: I think this problem is also the problem solved by positioning. You either become the boss or you can find a different path. You must find your own differentiation and find irreplaceable value. For example, Yanjing Beer is fresh. It is the world of Yanjing in Beijing. Now there are three major brands, one is Snowflake, and Tsingtao, and the third is Yanjing. It is always fresh, and who is better than it in Beijing. So this is differentiation. This is the problem that positioning should solve. It must find its own advantages, and it is the advantage that others cannot replace you.