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Yuanyuan Forest, Image source: Suning
There are also three and a half “black horses” in the coffee industry. Founded in 2015, the products include instant boutique coffee, hanging ear coffee, coffee peripherals, etc. After the instant boutique coffee was launched, it quickly became a hit due to its innovative packaging, good flavor and aroma retention, and excellent solubility.
In 2018 double 11 and three and a half won the first place in the domestic coffee brand category, and double 12 became the second place in the whole coffee category (the first place is Nestle). Last year ’s double 11 and three-and-a-half turnover was ten times the double 11 in 2018, surpassing Nestlé in one fell swoop and becoming the first brand in the coffee category [9].
These rising stars are smaller and more flexible. With the “small cake” in the big market as the entry point, they have seized a group of young people who are pursuing freshness, personality, and segmentation, and have also brought challenges to big brands. Reversely push big brands to increase innovation and speed up new pushes.
03 Push the new speed battle, how should I fight?
1. Product upgrade segmentation
The composition and needs of consumers are diverse and changeable. The upgrading and innovation of products in the market must be continuously refined, based on the needs of specific groups of people, and tapping new consumption power in today’s saturated market to form a strong Brand recognition.
New product research and development can find the blue ocean in the red sea of large categories, and seize new consumer groups with new sub-categories to achieve overtaking in corners. The method of subdivision includes two paths: 1. Vertical expansion refers to the extension of other categories; 2. Horizontal expansion refers to the differentiation of existing categories.
We take dairy products as an example, and expand vertically from basic white milk to high-end white milk, from milk to horse milk, goat milk, camel milk, etc .; horizontal extension can start from nutritional content, functions, scenarios, etc., such as Organic milk, A2 milk, eye milk, sleep milk, breakfast milk, postprandial milk and other sub-categories.
2, omni-channel-oriented
E-commerce and new retail are developing rapidly in China. Consumers look forward to a more convenient shopping experience, hoping to achieve “wherever I want to buy, where to buy.” In today’s consumer context, consumers are no longer looking for products, but products are actively looking for consumers. Brands and consumers need to have more places to achieve omnichannel dialogue.
Multiple channels provide more options for new product listing, trial and error costs are relatively controllable, and communication between consumers and producers is more timely. Reduced trial and error costs, increased number of new products, shortened market feedback cycles, and speed to marketSpeeding up, between new and optimized, has formed a more rapid mode.
How do brands play omnichannel? First, the main channel needs to be determined according to the positioning of the product. For example, low-temperature pure milk has offline retail stores as its main sales channel due to storage conditions restrictions, while normal-temperature yogurt can focus on online power.
The omni-channel we talked about is not “online or offline”, but “focus on developing A while enriching BCD”. We once talked about this topic with Zeng Ruilu, the co-founder of single grain. He said that single grain has also made “unfocused” mistakes. As soon as new products are released, they are laid out in all channels. In fact, some products are more suitable for a certain channel. It requires higher investment and operational capabilities. Blind layout will make the brand positioning unclear, distracting energy and reducing efficiency.
Second, the brand also needs to formulate a multi-stage channel strategy based on the characteristics of the new product and the development status at different stages. Take Zhong Xuegao as an example, a 66 yuan piece of “Ecuadorian Pink Diamond” ice cream bar sold 40 million yuan a day on Double Eleven in 2018 (when autumn turns to winter) [10]. Behind this excellent marketing case is the multi-stage channel planning.
Zhong Xuegao’s “Ecuadorian Pink Diamond” ice cream, Image source: Zhong Xuegao
The first step is to settle in the small red book that focuses on community life sharing, because the tile shape and aesthetic design of Zhong Xuegao ice cream are suitable for photo sharing; the second step is to use pop-up stores to see landmarks in cities with huge traffic or Shopping malls, so that more consumers can buy products; the third step, set up camp Tmall, on Double Eleven, with a new taste and a hit. Now, Zhong Xuegao is exploring new growth in WeChat Mini Program.
3. New technologies enable new products
Whether it is a category breakdown or an omni-channel layout, the fundamental problem of thinking is: “How to reach consumers more accurately.” Traditionally, “Shangxin” has been unable to satisfy consumers. Aiming at the demand, pushing the “new products” in the opposite direction, and promoting supply and production with demand has become an actual problem that the brand side must face.
The key issue is how to find consumer needs. In fact, under the development of artificial intelligence such as big data and AI, consumers’ consumption behavior can be transformed into data, the demand tendency can be calculated, and new products can be targeted.
Tmall released “TMIC New Product Digital System” last year, which integrates incubator, management desk and knowledge base.Reduce the time for new product development from 2 years to an average of 6 months. In the process of new product development, it can help businesses complete the online and digitalization of the four steps of “opportunity mining, creative generation, proof of concept, trial marketing iteration” [11].
04 Summary: How fast and live is a new product on the market?
So how to improve the survival rate of new products in the process of rapid update? We have observed some brand cases in the market and summarized the following three points for everyone:
1. Have the courage to push new decisively
The air vent is often full of uncertainty. Many brands are more willing to stand by the shore and wait until the first person who eats crabs says “No poison, rest assured.” They rushed together and often missed the best time. . Therefore, whether a company has the courage to jump out of the comfort zone, quickly respond to market changes, and launch new categories and products in a timely manner requires determination from top to bottom.
Fortunately, we have seen this courage in some of China’s leading enterprises, such as Yili, Nongfushanquan, etc. In 2019, Nongfu Spring is targeting different groups in the existing drinking water market, while accelerating its layout in other areas:
-
In January, its classic brand tip Called to launch two new sports products, including green flavor and white peach flavor;
-
In March, new teaπ Packaging , keeping up with young people’s fashion trends;
-
In April, it entered the yogurt market for the first time and introduced plant-based yogurt, which is also the first plant yogurt in the true sense in China;
-
In May, it entered the coffee market for the first time and announced the launch of New Carbonated Coffee Product” Charcoal “;
-
In June, entered the middle-aged and elderly drinking water market, 21 # wechat_redirect “> Introduction of lithium-containing natural mineral water ;
-
In July, refrigerated NFC juice , including three products: apple juice, orange juice, and mango juice;
-
September, aiming at the medium-concentration fruit juice market, launched wechat_redirect “> 5 0 % farmer orchard new series , the juice content is upgraded from the original 30% to 50%;
-
In October, new carbon Series RTD coffees , mainly sugar-free / low sugar, flavor-free, preservative-free, and Topped the list of double-sale pre-sale beverages in 2019 ;
-
At the end of October, its Oriental Leaf launched The mini version of Oriental Little Leaves is mainly for winter warm drinks.
Nongfushanquan Charcoal launched a new series of ready-to-drink coffee, Image source: Nongfushanquan
2. Be patient and wait for the timing
In the new product market, there are few people who are popular overnight, and many people are sinking into the sea. Many brands have entered the consumer prematurely and eagerly when pushing new onesThis is a market that has not been reached by this level.
On the one hand, brands need to have an accurate judgement of the current situation, what stage of development the category is and what kind of consumer needs, so as to find the positioning of new products and launch at the right time to do more with less. On the other hand, we believe that as long as it is gold, it will one day shine. As long as it is in line with the changing trend of consumption trends, it will eventually wait for its heyday. Brands need to be patient and wait for the time to mature.
For example, Kunlun Mountain, which entered the bottled water market with glacial water at the price of 4 yuan in 2010, experienced ten years. At that time, the hundred-year-old mountain with 3 yuan water had passed the tens of billions. . The reason is that it entered the four-dollar market prematurely-at that time, 3 yuan of water had not been widely promoted, forming a price fault.
When the bottled water market continues to grow and 3 yuan of water is cultivated, consumers are looking forward to higher-end choices, and water of 4 yuan and above has started. Kunlun Mountain, which adheres to the high-end market, has now become the leader in the domestic high-end water category. In June last year, the sales volume of Kunlun Mountain increased by 37.5% month-on-month. In the 618 E-commerce Festival, it ranked first in the domestic high-end water category [12].
3. Perseverance to keep pushing new
Are you finished when you see the new air outlet? Innovation is actually a strategic and protracted battle. Brands keep innovating by constantly pushing new ones, urging themselves to grow with consumers, and to find out patterns and structures that are suitable for them and meet consumer trends. The growth environment has been debugged, and the brand’s overall new product survival rate will naturally increase.
Dali has implemented a multi-brand strategy over the past three decades, and has successively launched egg yolk pie (2002), Kirk Baker (2003), delicious food (2004), He Qizheng (2007), peanut milk (2011 Years), Lehu (2013), Douban Dou (2017), Mei Bingchen (2018), etc.
So how to improve the survival rate of new products in the process of rapid update? We have observed some brand cases in the market and summarized the following three points for everyone:
1. Have the courage to push new decisively
The air vent is often full of uncertainty. Many brands are more willing to stand by the shore and wait until the first person who eats crabs says “No poison, rest assured.” They rushed together and often missed the best time. . Therefore, whether a company has the courage to jump out of the comfort zone, quickly respond to market changes, and launch new categories and products in a timely manner requires determination from top to bottom.
Fortunately, we have seen this courage in some of China’s leading enterprises, such as Yili, Nongfushanquan, etc. In 2019, Nongfu Spring is targeting different groups in the existing drinking water market, while accelerating its layout in other areas:
-
In January, its classic brand tip Called to launch two new sports products, including green flavor and white peach flavor;
-
In March, new teaπ Packaging , keeping up with young people’s fashion trends;
-
In April, it entered the yogurt market for the first time and introduced plant-based yogurt, which is also the first plant yogurt in the true sense in China;
-
In May, it entered the coffee market for the first time and announced the launch of New Carbonated Coffee Product” Charcoal “;
-
In June, entered the middle-aged and elderly drinking water market, 21 # wechat_redirect “> Introduction of lithium-containing natural mineral water ;
-
In July, refrigerated NFC juice , including three products: apple juice, orange juice, and mango juice;
-
September, aiming at the medium-concentration fruit juice market, launched wechat_redirect “> 5 0 % farmer orchard new series , the juice content is upgraded from the original 30% to 50%;
-
In October, new carbon Series RTD coffees , mainly sugar-free / low sugar, flavor-free, preservative-free, and Topped the list of double-sale pre-sale beverages in 2019 ;
-
At the end of October, its Oriental Leaf launched The mini version of Oriental Little Leaves is mainly for winter warm drinks.
Nongfushanquan Charcoal launched a new series of ready-to-drink coffee, Image source: Nongfushanquan
2. Be patient and wait for the timing
In the new product market, there are few people who are popular overnight, and many people are sinking into the sea. Many brands have entered the consumer prematurely and eagerly when pushing new onesThis is a market that has not been reached by this level.
On the one hand, brands need to have an accurate judgement of the current situation, what stage of development the category is and what kind of consumer needs, so as to find the positioning of new products and launch at the right time to do more with less. On the other hand, we believe that as long as it is gold, it will one day shine. As long as it is in line with the changing trend of consumption trends, it will eventually wait for its heyday. Brands need to be patient and wait for the time to mature.
For example, Kunlun Mountain, which entered the bottled water market with glacial water at the price of 4 yuan in 2010, experienced ten years. At that time, the hundred-year-old mountain with 3 yuan water had passed the tens of billions. . The reason is that it entered the four-dollar market prematurely-at that time, 3 yuan of water had not been widely promoted, forming a price fault.
When the bottled water market continues to grow and 3 yuan of water is cultivated, consumers are looking forward to higher-end choices, and water of 4 yuan and above has started. Kunlun Mountain, which adheres to the high-end market, has now become the leader in the domestic high-end water category. In June last year, the sales volume of Kunlun Mountain increased by 37.5% month-on-month. In the 618 E-commerce Festival, it ranked first in the domestic high-end water category [12].
3. Perseverance to keep pushing new
Are you finished when you see the new air outlet? Innovation is actually a strategic and protracted battle. Brands keep innovating by constantly pushing new ones, urging themselves to grow with consumers, and to find out patterns and structures that are suitable for them and meet consumer trends. The growth environment has been debugged, and the brand’s overall new product survival rate will naturally increase.
Dali has implemented a multi-brand strategy over the past three decades, and has successively launched egg yolk pie (2002), Kirk Baker (2003), delicious food (2004), He Qizheng (2007), peanut milk (2011 Years), Lehu (2013), Douban Dou (2017), Mei Bingchen (2018), etc.