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Brand Road Series (3) Lao Gan Ma’s Brand Building The road: focus on product quality and maintain brand image

Huatai Securities 2016-11-23 09:41

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"Laoganma" Camp The revenue and profit scale are large, becoming the benchmark in the sauce industry

Guiyang Nanming Laoganma Flavor Food Co., Ltd. was established in 1996 with a registered capital of 10 million yuan. At present, the "Laoganma" series products account for half of similar products in the country, with 2 million bottles of chili sauce sold every day. In 2014, the sales revenue reached 4 billion yuan and the profit was 900 million yuan. The company has broad development prospects. In the past two decades, the sauce market has grown at an average annual rate of 20%, showing great potential. "Laoganma" insists on honest management, has established a good reputation with its unique formula and excellent product strength, and has become the leading brand in the sauce market.

It is positioned in the mid-to-low-end market and has high user consumption viscosity

The target group of "Laoganma" products is mainly concentrated in migrant workers, college students and white-collar workers who have not been working for a long time. This type of consumer group generally does not have strong economic strength, and has a relatively tight pace of life, simple dining structure, and overall low demand for high-end catering. Therefore, delicious and convenient sauces have become the first choice to assist dining. This laid the foundation for "Laoganma" to open up the national chili sauce market and achieve nationwide expansion.

The structural advantages of products are difficult to replicate, and the brand moat has become increasingly prominent

First of all, "Laoganma" has won the "taste war" in the sauce market with its rich and unique taste; On the other hand, "Laoganma" has given full play to its scale effect and brand advantages to reduce costs, and has made a strong attack through cost advantages, with affordable prices, which has increased consumers' consumption viscosity. In addition, in terms of packaging, the product packaging and trademark brand of "Lao Gan Ma" that has remained unchanged for 20 years have formed corporate characteristics and become the brand symbol of "chili sauce" in consumers' hearts, strengthening consumers' understanding of "Lao Gan Ma" brand identity.

The channel effect is obvious, building a strong brand moat

"Laoganma" has established sales channels and catering channels extending in all directions. In terms of sales channels, "Laoganma" first established large-area dealers, and then established secondary networks throughout the region through large-area dealers. Finally, it formed sales channels all over the country and formed a moat for the sales network, and actively used This advantage outputs stable and high-quality products, further strengthening its brand image; in terms of catering channels, the "Laoganma" series of products are also favored by terminal catering companies for their high-quality and stable chili sauce, promoting corporate brand communication.

Actively explore overseas markets and promote brand internationalization

In addition, "Laoganma" actively explores overseas markets and gradually formed a "relying on the domestic market and actively expanding the international market" business strategy guiding ideology. Firstly, the company positioned itself among overseas Chinese, focusing on emotional brands, and gained a stable consumer group in overseas markets; secondly, "Laoganma" changed its business strategy and adopted the method of directly setting up authorized agents in overseas markets, forming the "Laoganma" brand. "The win-win situation for authorized agents promotes the widespread spread of corporate brand influence in overseas markets.

Enlightenment of "Laoganma" brand building

Market positioning is the prerequisite for brand expansion, excellent product quality is the foundation of brand communication, and channels are the boosters of brand communication. Product internationalization and technological innovation are important components of brand influence. In addition, the personal spirit of entrepreneurs also plays an important role in promoting corporate brand communication.