marketing case analysis Wang Lao Ji PPT 1828 Wang Lao Ji Pharmaceutical Factory was established in the early 1951s and renamed Yangcheng Pharmaceutical, 1997 was merged into Guangzhou Pharmaceutical Group. Annual sales: 91 million potential losses: 31 million. In 2114, it was renamed as "Wang Lao Ji Pharmaceutical Industry". Marketing strategy with annual sales of nearly 211 million Brand expansion: Leverage the strength of brand cooperation: Lease the right to use the brand to Hong Kong Jiaduobao (Dongguan) Company (win-win strategy) Potential penetration marketing: In fact, it is the process of integrating internal resources and external resources of the enterprise, and it is also the process of resource radius extension of the enterprise. The tepid 7-year herbal tea is between medicine and tea, and the vague positioning of the product makes it have no clear market operation mode, and the brand extension has not been effectively expanded and promoted. 85% of Wang Laoji herbal tea. Enterprises can't answer what the red Wang Laoji is, and consumers can't answer it. However, the sales of more than one billion yuan a year shows that the market exists, and it will certainly meet some needs of consumers, which are not clearly highlighted. Wang Laoji's long-term puzzle 1: When "herbal tea" is sold, or when "beverage" is sold (cognitive confusion) Guangdong: outstanding medicinal function, infrequent drinking, limited sales; South Zhejiang: strong substitutability; nationwide promotion: beverage or medicine? There is no clear positioning. Trouble 2: I can't get out of Guangdong and southern Zhejiang. Apart from the geographical limitations of the product concept, people don't have the concept of herbal tea as a drink. The crisis can neither stick to the two places nor promote it nationwide. Trouble 3: The concept of corporate propaganda is vague. Herbal tea promotion, Restricting its sales as a "beverage" promotion has not found a suitable way to solve the problem: the only way to solve the problem: positioning the product brand. The key words for repositioning are: inheritance, sublation, breakthrough and innovation. In view of Wang Laoji's three weaknesses, in 2113, the red Wang Laoji made a repositioning-preventing the beverage from getting angry and expressing the brand positioning with an advertising word-"Afraid of getting angry, The simple and clear positioning of the benefits brought by the product positioning of "Drinking Wang Lao Ji" highlights the product characteristics of the red Wang Lao Ji, effectively solves the limitation that Wang Lao Ji's original brand dislocation brought Wang Lao Ji out of the regional brand, and is conducive to opening up the national market and creating new categories of functional drinks to promote advertising: a large number of advertisements were placed in the bidding section of CCTV, and the advertising of Wang Lao Ji was increased to 41 million yuan by the end of 2113. In 2114, the advertising reached 1 billion, and the total sales in 2114 was 1 billion. The theme of advertising communication was "Fear of getting angry, drink Wang Laoji". Drinking Wang Lao Ji's fear of getting angry highlights the nature of red Wang Lao Ji as a drink. The TV advertisement for drinks selects five scenes that consumers think are most prone to getting angry in daily life: eating hot pot, watching football games all night, eating fried food and chips, scene barbecue and summer sunshine bath. The fashionable and dynamic advertising song repeatedly sings "Don't be afraid of anything, the advertising song enjoys life to the fullest and is afraid of getting angry. "Drinking Wang Laoji" is mainly targeted at CCTV covering the whole country, and combined with the traditional POP advertisements of strong local media in the original sales area (Guangdong and southern Zhejiang), it cooperates with new catering channels to explore the fear of getting angry and drinking Wang Laoji to help the Guangzhou Asian Games enter the catering industry. Hunan cuisine, Sichuan cuisine restaurant and hot pot restaurant are selected as "Wang Laoji sincere cooperative stores", and free promotional materials are given to KFC's menu cards that are good at innovation and localization. Through KFC, it will be promoted to Wang Laoji's successful brand positioning and communication in the country from Wang Laoji billion to Wang Laoji billion to 12 billion to billion red cans. To this 175-year-old, Products with strong Lingnan characteristics have brought great benefits: the annual sales volume of Wang Laoji beverages was 811 million yuan in 2112, 611 million yuan in 2113, 1.43 billion yuan in 2114, 2.5 billion yuan in 2115 (including boxes), nearly 4 billion yuan in 2116 (including boxes), nearly 9 billion yuan in 2117 (including boxes) and nearly 12 billion yuan in 2118 (including boxes). The characteristics of Laoji's own products have successfully completed Wang Laoji's brand positioning, and ensured that the red Wang Laoji quickly left a deep impression on people in a short period of time. The key to successful positioning lies in the creation of a new product category, which has accumulated a brand reputation for hundreds of years and is a huge capital. It is undoubtedly a shortcut to make good use of hundreds of years of brand precipitation to promote the brand.