Inner Mongolia Mengniu Dairy was established in early 1999 and is headquartered in Horinger County. It has total assets of more than 8 billion yuan and an annual dairy production capacity of 5 million tons. The products have won honorary titles such as "China's Famous Trademark" and "No. 1 in Consumer Satisfaction" for their excellent quality. The products cover the domestic market and are exported to the United States, Canada, Mongolia, Southeast Asia, Hong Kong and Macao and other countries and regions.

However, China's dairy industry environment is still tense and severe. In order to change the dilemma of increasingly meager profits and meet the needs of some high-income groups, Mengniu took the lead in testing the high-end liquid milk market with Deluxe pure milk. The elegant and noble packaging appearance and the terminal sales method of whole box without dismantling are all refreshing. It has produced extraordinary results in just two months since it was launched. Since then, Deluxe has been on a roll, winning industry awards, and when the price war intensified in the dairy market, it even bucked the trend and raised prices by 10%. The launch of Deluxe has opened up a new field and achieved great success, making competing companies covet and imitate it. To this end, we have made the following analysis based on the successful case of Deluxe.

II. Market Analysis

(1) Market Current Situation

With the increasing improvement of people’s living standards, people have more and more concerns about the taste, taste and nutritional value of food. In order to meet higher requirements, consumers are most concerned about the nutritional value of dairy products. Before the launch of Deluxe milk, there were no high-end milk options for consumers in the market. However, people's consumer psychology had changed at that time, and many people were willing to spend more money to buy products with better quality. However, due to the slow development of milk processed products in the ordinary milk market and the lack of diversified dairy products, it cannot meet the needs of consumers who pursue a higher quality of life.

The price of dairy products was too low at that stage, and the difficult-to-lower costs resulted in meager profits. According to data from the China Dairy Development Conference in 2006, there were nearly 1,500 dairy product processing companies in my country at that time, of which about 30 were at the break-even point, and another 30 were experiencing losses and the prospects were not optimistic. Profits are too low, resulting in dairy product processing companies not getting better development prospects.

(2) Market Prospects

For the consumer groups targeted by Deluxe, the emergence of Deluxe almost meets all consumers’ needs for high-end milk. The banners of Delen Soda are gold medal origin, gold medal grass, gold medal dairy cows, gold medal processing, gold medal honors and gold medal nutrition, creating a high-end self-image, attracting those who have higher requirements for quality of life. The representative high-end milk represents a kind of high-end and nobility, which can meet the needs of high-end consumers and has become one of the best products for people to exchange gifts.

3. Marketing environment analysis

(1) Current situation of the milk industry

The milk industry is China’s sunrise industry. In recent years, with the continuous development of our country’s national economy, With the development, people's living standards are improving day by day, the dietary structure of families has been generally improved, and the consumption of dairy products has shown a significant upward trend. As a result, the production and sales of dairy products have also achieved good results, and the production of liquid milk has increased significantly, and the economic benefits of the entire industry have significantly improved.

(2) Micro-environment of the milk industry

Competitors

Since the outbreak of the "melamine incident", consumers have had a crisis of trust in domestic brands and have turned to Consumption of foreign brand products has become a strong competitor for domestic liquid milk companies.

In the domestic liquid milk market, first-tier brands including Yili and Mengniu have adopted market segmentation strategies and designed different products for different market segments. Competition is fierce.

However, China’s liquid dairy market is still dominated by national companies. Consumers in large and small cities tend to pay attention to and choose big brands when purchasing dairy products. It is difficult to predict the growth of China’s liquid dairy market. The pattern is structurally subverted.