Marketing Case Study Wanglaoji PPT 1828 Wanglaoji Pharmaceutical Factory was established in the early 1950s was renamed Yangcheng Pharmaceuticals, 1997 and incorporated into the Guangzhou Pharmaceutical Group Annual sales: 90 million Potential loss: 30 million 2004 renamed "Wanglaoji Pharmaceuticals" Now, the annual sales of nearly 200 million Marketing Strategy Brand Expansion: Leverage brand cooperation: Lease the right to use the brand to Hong Kong Gadobao (Dongguan) Company (win-win strategy) Subliminal Penetration Marketing: It is actually the process of integrating the internal and external resources of the enterprise, and it is also the process of extending the radius of the resources of the enterprise The seven years of Herbal Tea has been in the middle of the medicine and the tea, and the ambiguous position of the product makes it has not had a clear operation mode in the market, so that the extension of the brand is not effectively expanded and enhanced. The brand extension has not been effectively expanded and enhanced. 85% of the market of Wanglaoji Herbal Tea is in Guangdong and Guangxi, and the market share is limited. The enterprise cannot answer what the red Wanglaoji is, and neither can the consumers. However, the sales of more than 100 million a year show that the market exists and that it must be able to satisfy a certain need of consumers, which has not been clearly highlighted. Wanglaoji's Long-term Troubles Trouble 1: Sell as "herbal tea" or "beverage" (cognitive confusion) Guangdong: prominent medicinal function, not regular consumption, sales are limited South Zhejiang: strong substitutability National promotion: is it a beverage or medicine? Plagued two: unable to go out of Guangdong and Zhennan - product concept is geographically limited outside of Guangdong and Zhejiang, people do not have the concept of herbal tea As a beverage, there are many crises Neither can we stick to the two places, nor can we promote it nationwide Plagued three: the concept of "herbal tea" is vague in the company's promotion, limiting its sales "The only way to solve the problem: the only way to solve the problem: to position the product The key words for brand positioning are: inheritance, abandonment, breakthrough and innovation In response to the three major weaknesses of Wanglaoji, the red Wanglaoji was repositioned in 2003. In response to Wanglaoji's three weaknesses, in 2003, Red Wanglaoji was repositioned as a beverage that prevents fire, and the brand was repositioned with an advertisement phrase - "Drink Wanglaoji for fear of fire". This simple and clear positioning highlights the product characteristics of red Wanglaoji and effectively solves Wanglaoji's original brand mismatch. It takes Wanglaoji out of the limitations of regional brands and is conducive to opening up the national market, opening up a new category of functional beverages Publicity and promotion Advertising: a large number of advertisements were placed on CCTV bidding segments. By the end of 2003, Wanglaoji's advertisement spending had increased to RMB 40 million. By the end of 2003, Wanglaoji's advertisement was increased to RMB 40 million. In 2004, the advertisement reached RMB 100 million, while the total sales in 2004 was RMB 1 billion: Hot pot, watching football matches all night, eating fried food and fries, barbecuing and summer sunbathing Stylish and dynamic commercial song The commercial song repeats "Don't be afraid of anything, just enjoy life, drink Wanglaoji for fear of catching fire". In addition to POP advertisements in traditional channels, the company also cooperated with the development of new catering channels Wanglaoji Drink Wanglaoji for Fear of Fire Wanglaoji helped the Guangzhou Asian Games Entered the catering industry by selecting Hunan and Sichuan restaurants and hotpot restaurants as "Wanglaoji Sincerity Cooperative Stores", and gave free promotional materials into the ordering boards of KFC, which is good at innovation and localization, and promoted it to the whole country through KFC. The successful brand positioning and communication of Wanglaoji in red cans has brought great benefits to this 175-year-old product with strong Lingnan characteristics: Sales volume of Wanglaoji beverages in previous years: 180 million yuan in 2002, 600 million yuan in 2003, 1.43 billion yuan in 2004, and 2.5 billion yuan in 2005 (including boxed beverages). The revelation of Wanglaoji's repositioning has revealed the characteristics of the red Wanglaoji product, thus successfully accomplishing Wanglaoji's brand positioning The blizzard-like advertising campaign ensured that the red Wanglaoji quickly impressed people in a short period of time The key to successful positioning is to create a new product category. The key to successful positioning lies in the creation of a new product category. The use of hundreds of years of branding to promote the brand is undoubtedly a shortcut that will get you twice the result with half the effort.