[Abstract] Under the conditions of market economy, brand has become an important tool for enterprises to compete and occupy the market. This article analyzes the current situation and reasons of domestic enterprise brand strategies, and proposes various measures to improve domestic brands from multiple perspectives, in order to improve the core competitiveness of enterprises.
[Keywords] Brand strategy, brand joint market positioning
Due to the "dairy melamine incident", Sanlu Group is facing a bankruptcy crisis and is likely to be Acquisition and reorganization of companies or other enterprises. Regarding the outcome of Sanlu Group, which has the reputation of "a Chinese brand that has changed Chinese people's lives for 30 years" and "the only iconic brand in China's milk powder industry", it is worth thinking deeply about the current situation of corporate brand strategy.
1. Analysis of defects and causes of brand strategy of Chinese enterprises
In the past thirty years of reform and opening up, China’s commodity market has changed from a seller’s market to a buyer’s market, and many companies have proposed brand strategy construction. . Brand strategy refers to the business strategy of using brand as the core competitiveness to obtain differentiated profits and value. Its essence is to create a differentiated competitive strategy, allowing enterprises to seek to occupy the market by creating differentiation through branding in a social context where products, technologies and services are becoming increasingly homogeneous. The brand strategy of Chinese enterprises mainly has the following shortcomings:
1. Insufficient understanding of the connotation of brand strategy. Quite a few companies in our country simply believe that brand strategy is just to give the product a good name, shoot a good advertisement, and then spend a lot of money on advertising on major media such as CCTV. In fact, advertising is just a marketing strategy and does not reach the level of brand strategy. Naturally, it is difficult to improve the competitiveness of enterprises. For example, the top brands at that time: Kongfu Yanjiu, Qinchi, and Aiduo spent huge sums of money on CCTV advertisements in an effort to increase brand awareness. However, in the end, it was because they did not truly understand the connotation of the brand strategy and neglected to improve the brand. Defects in reputation, business strategies and management methods caused the brand to develop abnormally and eventually collapse.
2. Insufficient theoretical and practical experience leads to strategic choices errors. Chinese corporate brands usually spend a lot of money to promote brand awareness in the early stage. However, once the brand becomes a household name, it does not know how to continue to maintain and enhance the brand image. For example, the Sanlu milk powder incident led to its bankruptcy. The specific application of brand strategy is often divorced from the reality of the industry in which the company is located. For example, many large companies in the food and beverage industry, such as Wahaha, Uni-President, Master Kong, Want Want, etc., adopt a brand broadening strategy. Under the leadership of a big brand, their products have developed into various fields such as beverages, dairy products, canned foods, etc. However, with the expansion of product categories under a single brand, the hollowing out of the brand has become more and more serious, resulting in a reduction in the core value of the brand. However, Xizhilang focuses on making jelly and adopts a brand narrowing strategy. Its market share has been above 60% for many years, and it has achieved great success.
3. There are difficulties in the organization and implementation of brand strategy. The reason why the brand strategies of many companies in our country have failed is because there are serious problems in organization and implementation. The main manifestations are as follows: First, the brand strategy cannot be raised to a strategic level in the planned organizational structure. Many companies simply do not include it in their annual plans. There is no brand strategic plan. Second, there are misunderstandings among brand managers. Since the research on brand strategy in China is in its infancy, there are very few professional talents who can truly understand the operation of brand strategy and have practical planning capabilities. Some brand managers and product managers in the marketing department of some companies think that brand strategy is just how to advertise and promote, which lacks professionalism. Moreover, brand planning does not pay attention to long-term investment returns, is full of quick success, and ignores the lifeline of the brand - quality. Turn 2. Countermeasures to improve the brand strategy level of domestic enterprises. The shortcomings of corporate brand strategy have profoundly affected the long-term development of enterprises. We must actively take countermeasures to enhance the brand competitiveness of domestic enterprises.
1. Establish a strong awareness of brand strategy. Senior leaders of enterprises must learn modern enterprise marketing management knowledge, understand domestic and international industry development situations, and actively implement and promote the company's brand strategy.
Only by deeply understanding the importance of implementing brand strategy can enterprises win a larger market share in the fierce industry competition and achieve long-term survival and development. Only by creating an internationally renowned brand that is famous both at home and abroad can we make due contributions to the country and the nation. Therefore, Chinese entrepreneurs should shoulder their own historical mission, establish a strong strategic awareness of brand development, and implement and promote the company's brand strategy with a high sense of political responsibility and urgency.
2. Select the correct market positioning of the strategic brand. Market positioning refers to the marketing methods and products and services a company will use to differentiate itself from competitors in the target market after determining the target market, thereby establishing the company's image and gaining a favorable competitive position. The implementation of brand strategy means that under the background of obvious homogeneity of goods in socialized mass production, enterprises conduct market research and based on the actual situation of the enterprise, focus on developing one or two brands in specific fields and make them reflect heterogeneity. heterogeneity, and this heterogeneity should be developed according to the consumer demand of the market, which means that we must keep up with the market. For example, Coca-Cola and Pepsi in the beverage industry; Rolex watches in the luxury goods industry; and Bentley and Rolls-Royce in the automotive consumer goods industry are all very successful and worthy of careful study by Chinese companies.
3. Increase the protection of existing brands and implement brand alliances. For existing brands in China, Chinese companies should strengthen protection from the following two aspects: First, strengthen the construction of relevant legal systems so that brand holders can protect their legitimate rights from infringement. Second, strive to learn foreign legal knowledge about trademark registration and foreign handling of infringements, so as to make preparations in advance for exploring foreign markets in the future and making Chinese brands become world brands. Brand co-branding refers to the formation of a unique brand by two or more corporate brands that combine and rely on each other to achieve the effect of the whole being greater than the sum of its parts. Brand combination not only better demonstrates the quality or characteristics of the product, but also achieves complementary advantages and resource sharing, thereby better improving the brand's popularity. For example, the new brand "Sony-Ericsson" has achieved great success.
4. Operate capital management and innovate product sales models. In order to speed up the pace of brand development, the common practice of international enterprises is to operate capital management, which takes the form of grafting and introducing existing international and domestic brands through mergers, acquisitions, transfers, franchising, paid use, etc. We must start from the specific situation of the enterprise to determine whether to use capital management to acquire and merge other people's brands, or to use capital management to transfer, use for a fee, or franchise our own brand. In order to expand the brand field, in terms of sales model, the model of "finding regional agents to cooperate, distributing agents at a lower price, and selling agency rights" can be used to expand the sales area of ??the product, so that it can be the first in the market at any time. Handle demand information to better satisfy consumers.
References:
[1] Sun Boliang: Enterprise Strategic Management [M]. 2nd Edition. Beijing: Science Press, 2004
[2 ] Li Guangdou: Brand Competitiveness [M]. 1st Edition. Beijing: Renmin University of China Press, 2004
[3] Hao Jiwei: Discussion on Brand Strategy and Enterprise Operation of National Enterprises. Enterprise Vitality [J] .In 2006, the 10th issue was posted in China Paper Download