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Business Administration Case 7-2: Growth of Little Sheep
Nowadays, in many parts of China, "Little Sheep" is loved by people. Little Sheep Restaurant Chain Co., Ltd. has quietly climbed to the top of Chinese food in China catering industry in four years. At present, this chain company has developed 668 chain stores and entered the American market last year. In June, 2003, "Little Sheep Company" was awarded as the top growth enterprise 100 champion in China. "Little Sheep Phenomenon" has also caused a great sensation in the catering industry in China. What makes a small restaurant develop so fast?

First, transform the chain model into a climate model.

1999 in the summer, when Zhang Gang was tasting traditional Sichuan-style hot pot with his friends, he had a whim: can the northern mutton hotpot be "free from small ingredients" like Sichuan hot pot? This can not only save time to meet the fast-paced lifestyle of modern people, but also keep the original flavor, combine convenience with delicacy and have a unique style.

Innovation, sensitivity and grasping business opportunities are always eternal elements in the story of entrepreneurs. Zhang Gang, who dares to be the first, and his partner Chen Hongkai have a clear goal: to build instant-boiled mutton in the north. Based on the traditional way of eating instant-boiled mutton in the north and the cultural characteristics of ethnic catering in the grassland, they introduced the eating method of Sichuan hot pot and the principle of medicinal seasoning, extensively explored the formula of folk pot bottom materials, and devoted themselves to studying the technology of "instant-boiled mutton does not touch small materials". After extensive and in-depth market research and many experiments, Little Sheep Hot Pot was born. With the delicious characteristics of Little Sheep Hot Pot, 1999 launched the first Little Sheep Hot Pot in Baotou, which was well received by the public. From 200 1, Little Sheep appeared in Shanghai, Beijing and Shenzhen. In 2002, Little Sheep Hot Pot Restaurant opened in Chengdu, conquering the consumers in Chengdu, Sichuan, the hometown of hot pot. In this way, Little Sheep started the chain operation with vigorous steps, out of Inner Mongolia, across the Yellow River, across the Yangtze River and all over China. The popularity of Little Sheep is getting higher and higher.

Second, characteristic management casts a brand.

As the saying goes, "Don't open a store without characteristics", and the success of "Little Sheep" benefits from its characteristics:

First, more than 20 kinds of nourishing condiments, such as Angelica sinensis, Amomum tsaoko, Lycium barbarum and longan, were carefully prepared into "Little Sheep" pot bottom soup. There are two kinds of soup pots, spicy.

Second, choose assured mutton. "Little Sheep" is located in Inner Mongolia prairie, and the world-famous Xilin Gol prairie is one of the largest natural pastures in Asia. The fat sheep produced can be called "assured sheep", which just caters to the first choice of modern consumers.

Third, it is convenient, hygienic, fast and economical, and is suitable for different levels of consumer groups.

Third, look at the threat behind the miracle.

The life course of an enterprise should have a lasting competitive advantage. "Little Sheep" has gone from grassland to the whole country, and it is green food with unique flavor advantages. Although the prospect is gratifying, there are also obstacles to its development:

First, the supply of raw materials was cut off and the production base was tight. Baotou corporation has the phenomenon of insufficient supply of raw materials and broken meat stalls. As the general agent in Hebei, the logistics distribution is not smooth, which has caused dissatisfaction and even complaints from many franchise chain stores. When the number of Little Sheep branches in China reached 350, the general manager of Little Sheep Company said: "Apart from' counterfeiting', the most urgent thing at present is to' borrow' sheep from Hulunbeier and other places, because there are not many bases in Xilinhot." He also revealed a little-known news: more than a dozen mutton factories sold 10 thousand tons of mutton last year. If a sheep produces 30 kilograms of meat, 1 10,000 tons of mutton probably needs more than 3 million sheep. All the sheep in Ximeng were eaten by Little Sheep.

Second, fake "sheep" are rampant, disrupting commercial order. On the site of Little Sheep, Shijiazhuang has the most fake "sheep". Lan Jianxin, general manager of Little Sheep Company, told reporters that there are at least 100 "fake sheep" related to Little Sheep in Shijiazhuang. It is said that there are at least 1 0,000 "little sheep" in Shijiazhuang. Fake "sheep" are rampant, which seriously disrupts the operation order of Little Sheep and infringes on consumers' rights and interests. Because the name of the store with the words "Little Sheep" is not protected by the Trademark Law, it makes counterfeiting weak.

Third, brand operation is out of control and management is not in place. Little Sheep Company launched a franchise chain shortly after its opening, relying on brand output to achieve profitability. Franchisees in provincial capital cities can get the right to use the brand by paying 200,000 yuan a year, and the expenses of prefectures, county-level cities and underdeveloped areas will be reduced accordingly. The head office is responsible for the supply of mutton and raw materials, and conducts staff training for half a month. When local operators apply to join, they only need to pay the fees to the agents, forming a very loose relationship, which is beyond the reach of the management. Some chain stores lack brand awareness, only pay attention to immediate interests, do not strictly follow the contract, and even set up new brands to compete with the head office without authorization. Some chain stores have poor personnel quality, low management level, dirty environment and blunt service attitude. The technicians in some chain stores have a weak knowledge or a weak sense of responsibility, and the phenomenon that soup and ingredients are mixed and shoddy occurs from time to time, which seriously damages the brand image of Little Sheep.

Fourth, new measures to avoid risks.

In order to make the "little sheep" prosperous, the following countermeasures are put forward:

First, the combination of resources and culture is a unique business model for enterprises to bring special effects to consumers, which enables enterprises to have a competitive advantage in a certain market for a long time and obtain internal competitive resources with stable excess profits. Due to its unique historical and regional characteristics, Inner Mongolia is not only rich in characteristic resources, but also rich in Mongolian culture, grassland culture and green cultural resources. In the international trend of "cultural commercialization" and "commodity culture", if a commodity can meet the material needs and cultural content at the same time, it will have dual values (material and culture) and meet the material needs and cultural needs of consumers at the same time.

Second, highlight the brand image of "Little Sheep". First, we should enhance the vitality of "Little Sheep" products. First of all, we should establish a legal system to protect the famous brand "Little Sheep". For example, the trademark of "Little Sheep" should be registered not only domestically, but also internationally. Now, "Little Sheep" has obtained the legal protection of 16 national registered trademark. Secondly, it is better to stabilize the quality of products, especially the quality of meat sources, and it is better to lack them than to abuse them. Never abuse "sheep". The second is to enhance the immunity of "Little Sheep".

First of all, enterprises should establish an early warning mechanism and a "fire brigade", establish an information network to master counterfeiting, communicate with law enforcement departments in a timely manner, and severely investigate and deal with illegal acts of cracking down on the manufacture of counterfeit and shoddy products, so that offenders can't benefit from it. Secondly, it is necessary to register defensive trademarks to prevent the erosion of similar trademarks. Thirdly, make anti-counterfeiting signs and establish exclusive sales channels.