The strategic relationship between brand strategy and enterprise development

Basic problems of enterprise development strategy

Enterprise development strategy: it is to integrate enterprise resources for a long time and realize enterprise development goals.

Features: long-term, systematic, forward-looking and competitive.

The problems to be solved in enterprise development strategy are: industrial positioning, selection and cultivation of new industrial growth points; Business divestiture and reorganization; Product positioning; Strategic goal setting.

The formulation and implementation of enterprise development strategy (the formulation of enterprise strategy should fully consider the history of enterprise development, take reality as the starting point, and conceive the future development direction; The development of enterprises also has path dependence. It is impossible for any enterprise to engage in some seemingly profitable business at will, and it must always be based on reality. ) determine the mission and purpose of the enterprise; Identify market opportunities and environmental threats; Evaluate the advantages and disadvantages of the enterprise itself; Formulate the strategic plan of the enterprise; Mobilize existing resources for strategic planning; Evaluation and evaluation of strategy implementation results; Enterprise development strategy system; Industry and product positioning strategy.

Then, in the era when many enterprises in China still regard brands as products, is it necessary for us to emphasize brand strategy? In order to earn cash (immediate benefits), many consulting experts often pay attention to the short-term benefits of brands, that is, sales performance and even sales volume, shouting that "benefits are everything" and euphemistically calling it "improving brand awareness and market share".

We don't approve of such an approach. Subjectively, the purpose of doing this is to obtain short-term benefits from business owners, which objectively violates the objective market law of brand growth, and in essence does not meet the fundamental desire and economic purpose of business owners to pursue long-term profits. This is a dangerous practice of charlatans, killing the goose that lays the golden eggs and ruining their future.

Look at two typical cases at home and abroad to know the pros and cons:

First, the glory and poverty of Goldlion

Once upon a time, Goldlion-A Man's World fascinated many men and women in China. In a few years, Goldlion has grown into a first-class high-end men's wear brand in China, which is regarded as a symbol of successful people and the first choice for many men to chase.

However, the once brilliant Jin Dage is safe now? It's almost invisible. For example, in Shanghai, there are few traces of this Hong Kong brother in famous department stores and specialty stores. What a brilliant success, why is it so bad now? !

B, Valentino's luxury and vulgarity

Similarly, once upon a time, when we mentioned the famous Italian high-end brand Valentino with the "V" logo, we couldn't help but respect and feel a sense of high-end luxury and nobility. I remember that in the early 1990s, Valentino almost occupied the market position of top clothing in China market.

Brother Hua, where is this gentleman? Contrary to Jin Xiong and Goldlion brothers, Gehua is really blooming everywhere in China now, and V-shaped product stores have opened all over the motherland. I have bought pueraria lobata products many times in special booths and specialty stores in Hong Kong and Shanghai. But what product is this? A suit in 400 yuan is RMB, and a shirt is RMB 50- 100! In China, it's men. In cities and even some villages, I'm afraid everyone has one or two products of pueraria lobata. The aristocrats in those days have now become ordinary consumer goods for migrant workers and working-class people.

In China, there are many similar brand tragedies, especially many new and old industries, such as home appliances and light industry. Tragedy is staged every day, and it will continue to be staged vigorously, so I won't go into details one by one because of time constraints. The reason why tragedies happen again and again is not the force majeure of "destiny takes a hand", but the root of these enterprises' lack of strategic management of brands.

What is strategy? Strategy is to look, plan and grasp the whole for a long time. Brand strategic management includes many contents, but in China, the most serious problems are brand extension, brand growth and brand authorization.

First of all, the brand needs to be managed in extension.

There are countless examples of brand extension mistakes. The famous brand Hengyuanxiang is one of them. Hengyuanxiang rose from wool in the late 1990s and became famous all over the country for a time. It is still regarded as a successful model. However, in the eyes of many of our brand management experts, the infinite product line extension has irrevocably diluted the 100% alcohol of Hengyuanxiang wool into countless Hengyuanxiang series products "seawater". Today's short-lived glory is the root of tomorrow's gloom.

When many unrelated products or products with too little correlation are labeled as Hengyuanxiang, imagine that consumers will recognize you and agree with you as before? Can you keep your brand characteristics and professional appeal that you didn't have at the beginning? ! Blindly or too quickly, you can really get huge scale and temporary benefits, but what about tomorrow? Tomorrow may be "hurting Zhong Yong"-a young genius has become an ordinary person, and yesterday's yellow flowers no longer have magical charm. Regardless of the personality and characteristics of their own products and brands, many enterprises blindly pursue rapid growth and overall economic scale, seek more and faster, and lack long-term strategic planning of brands, which is bound to be blind and eventually get lost in the forest.

Second, changes and changes in brand growth

The failure of Goldlion is the biggest negative case of brand growth. Why did the legendary swordsman's mobile phone Goldlion, once at the peak of his life, become a little brother who was notorious in Sun Shan and drowned in obscurity? The fundamental reason is that success has come too quickly and too much, and enterprises have lost their vigilance in grasping the development of the situation, resulting in a serious "polio" and lost their sensitivity to the changes in the men's wear market in China.

When the motherland has flourished in 1956 and 1978, the living standards and consumption power of urban people have been greatly improved, and people's consumption concepts and habits have changed "upward", the Goldlion brothers themselves have always stood firm, still at that price, that quality and that image. Due to the unfortunate brand incident, Goldlion gradually widened the gap with the demand of the target consumer groups, and the business became worse and worse. Finally, one day, consumers move on, and Goldlion will be lovelorn. When he woke up, he was abandoned by his once enthusiastic "lover"

Recently, I read some information about Procter & Gamble in the United States and found many really valuable things. If nothing else, many domestic companies are far behind in their awareness and intensity of market research. Without a comprehensive insight and grasp of consumer demand, what can we talk about as an "old married couple" and a long-term business enterprise? However, consumers and markets are not static, and brands need to grow and make appropriate amendments according to market changes. In short, alas, they must "keep pace with the times"! Both consumers and markets are improving. No progress or insufficient progress can only be abandoned by the times. Look at the brand strategy of Liangle (Coca Cola, Pepsi Cola). How do they make an ancient product and brand forever young?

Third, risk control and authorization management of brand authorization

Brand authorization is a big problem for foreign brands to enter the China market. Improper authorization or lax management of joint ventures and brands have done great harm to many European and American brands entering China. The above Valentino is typical. Well-known American brands BOSS and POLO also have similar problems to varying degrees.

The problem mainly lies in three aspects. First, there are too many brand authorizations, but at least China Company really got the brand authorization and paid a certain price; Only the quality, service and image are not satisfactory, which is harmful to the brand, but not fatal.

Second, the brand of joint venture is a big problem. The essence of the joint venture brand is the wrong brand extension, that is, the brand originally positioned at high-end or ultra-high-end (for the China market) is reduced to a mid-range or even low-end brand. The lax management of the joint venture brand will inevitably devalue the original brand and weaken the positioning of the original high-end brand, which is not conducive to the development of the brand in the China market. This is also the long-term benefit of selling brands cheaply for short-term commercial benefits.

Third, the joint venture company or others counterfeit brands. Such injuries are fatal. Valentino, for example, saw counterfeit specialty stores such as Valentino in Shanghai alone, and so did BOSS. At first glance, the trademark is BOSS, but a closer look reveals that there are other letters before and after BOSS. I asked the salesperson, and I said, "It's the boss, we are joint ventures".

Brand authorization is necessary and correct for many brands, but there is a problem of risk control and authorization management in brand authorization. If these problems are not handled well, it will become a kind of brand chronic suicide that destroys the Great Wall. Proper handling of brand management issues such as brand authorization requires brand companies to have clear brand management strategies. Only by establishing a brand management strategy that takes into account both long-term and short-term interests can enterprises avoid arbitrariness and shortsightedness in brand management, persistently and rigorously cultivate, maintain and accumulate brand assets, and ultimately create maximum brand value and benefits for enterprises and customers.