Topic: Research on the Marketing Strategy of Yuanqi Forest Company
Abstract:Since the beginning of the new century, the income level of Chinese residents has been increasing, consumers' health awareness has also been increasing, and residents' preference for beverages has also changed significantly, and more and more consumers choose sugar-free beverages. In 2016, Yuanqi Forest (Beijing) Food Technology Group Co., Ltd. was established in Beijing, focusing on the research and development of sugar-free beverages. Since the advent of the product, it has been sought after by consumers, and the company has shown expansionary development. However, in recent years, due to the changes in the marketing environment and the deliberate competition of the same type of enterprises, the disadvantages of the current marketing strategy of the enterprise have gradually become prominent, and the original marketing strategy of Yuanqi Forest Company has been insufficient to support the expansion of the enterprise, and the relevant optimization of the marketing strategy needs to be realized. Through the study of Yuanqi Forest sparkling water series of beverages, it can not only provide corresponding suggestions for the improvement of Yuanqi Forest Company's marketing strategy, but also enrich the relevant cases of marketing strategy research in the sparkling water and even beverage industry.
Keywords: Genki Forest, Diet Drinks, Marketing Strategy
1. Overview of Yuanqi Forest Company
(1) Company profile
1. Time and place of establishment
Yuanqi Forest (Beijing) Food Technology Group Co., Ltd. is a Chinese food and beverage company dedicated to creating healthy and good products for a better life, the company was established in 2016.
2. Main products and business areas
At present, it has a series of products such as Yuanqi Forest Sparkling Water, Alien Electrolyte Water, Sugar-free Herbal Tea - Fiber Tea, Burning Tea, Yuanqi Full Milk Tea, Iced Tea, etc., and its sales network covers the whole country and has been exported to more than 40 countries such as the United States and Australia. Yuanqi Forest's business scope covers the R&D and sales of beverages, the operation of e-commerce platforms, investment and cooperation, as well as brand building and marketing.
(2) The company's organizational structure and operation model
1. Organizational structure analysis
Yuanqi Forest's organizational structure is relatively flat, focusing on flexibility and efficiency. Its overall structure mainly includes leadership, management and grassroots, and each department has a clear division of labor and cooperation.
2. Operational model analysis
Yuanqi Forest's operating model is user-centric, focusing on brand building and digital operation.
2. Analysis of the marketing environment of sparkling water series beverages of Yuanqi Forest Company
(1) Macro environment analysis (PEST analysis).
1. Policy environment analysis
The new combination of taxes and tax incentives proposed by the state, which taxes on sugar, regulate the consumption of sugary beverages, can reduce obesity and diabetes caused by excessive sugar intake, and reduce medical costs. Raising taxes on sugar will steer consumers to healthier diets and will also give producers an incentive to improve.
2. Analysis of the economic environment
The national economy has continued to grow steadily, and the total economic output has continued to increase. In terms of beverage retailing, the cumulative sales of China's beverage retail industry in 2021 amounted to RMB280.8 billion, up 20.4% year-on-year. China's total beverage retail sales reached RMB27.2 billion in December 2022, up 5.5% from the same period last year.
3. Analysis of the socio-cultural environment
With the improvement of social and cultural standards and the improvement of living standards, more and more consumers have begun to pay attention to the health of their diet, and low-sugar or sugar-free beverages have become more and more the first choice for beverage purchases. With the increase of China's new middle class, there is a trend of consumption upgrading, quality revolution, strong brand recognition, and the rise of new national brands.
4. Technical environment analysis
0 Preservatives may become the direction of the future development of the beverage industry, and it is possible that in the near future, in the coming period, the entire beverage industry will completely abandon the use of chemical preservatives such as sodium benzoate. 0 Preservatives are a process that is suitable for a variety of beverages and is a means to improve the quality of food and beverages.
(2) Microenvironmental analysis (Porter's Five Forces Model).
1. Competitor analysis in the same industry
At present, Coca-Cola, Pepsi and Nongfu Spring occupy half of the domestic beverage market. Coca-Cola and Pepsi are vigorously developing sugar-free beverages, and their products, from sugar-free drinks, to sugar-free coffee, to sugar-free drinks, are relying on their own strength and low prices, overwhelming the Yuanqi Forest. Due to the low entry barrier, many brands have also begun to develop sugar-free sparkling water, Coca-Cola, Nongfu Spring and other brands have great influence and deep roots, mature R&D teams, production equipment and sales channels, and the product price is lower than that of Yuanqi Forest's sugar-free soda. Therefore, for Yuanqi Forest, although it is currently the company with the largest market share, Yuanqi Forest is affected by the sugar-free tea market and faces greater challenges.
2. Threat analysis of potential new entrants
The emergence of competitors is also constantly encroaching on the market of Yuanqi Forest. Internet celebrity brands such as Heytea and Qingquan Izuyama are also beginning to develop sparkling water, and through various ...The form continues to open up the market. Compared with Yuanqi Forest Food Technology Group Co., Ltd., this type of brand has its own advantages. Because they are not famous for their sparkling water, they use their store advantages and brand advantages, making it difficult for Genki Forest to compete with such brands. Based on the product characteristics and novel forms of Yuanqi Forest, beverage brands continue to introduce more simple and distinctive product packaging, and at the same time continuously improve product positioning, and there are currently hundreds of beverages similar to Yuanqi Forest sparkling water on the market.
3. Threat analysis of potential alternatives
Alternative products follow the trend of healthy drinks created by Genki Forest, actively respond to the concept of health, promote their products as equally effective, and put sugar control and health labels on their own products. In terms of marketing methods, they borrowed from the marketing methods of Yuanqi Forest, explored the network promotion methods of Yuanqi Forest, and actively promoted them on social media platforms by using new media methods.
4. Analysis of suppliers' bargaining power
Ternary Biotech Co., Ltd. is a professional manufacturer of erythritol and the main supplier of erythritol of Yuanqi Forest (Beijing) Food Technology Group Co., Ltd. Sanyuan's partners include international Coca-Cola, Pepsi, domestic Nongfu Spring, Tongyi, Jinmailang, Heytea, etc., it can be seen that Sanyuan does not lack sales channels and is in short supply. Whether it is Pepsi or Coca-Cola, they have huge capital and enterprise scale, or domestic brands such as Nongfu Spring, which are not comparable to Yuanqi Forest Food Technology Group Co., Ltd., therefore, the bargaining power of Yuanqi Forest Food Technology Group Co., Ltd. determines the cost of Yuanqi Forest Food Technology Group Co., Ltd.
5. Analysis of customer bargaining power
As more sugar-free brands are offered to third-party sellers, the share of Yuanqi Forest in stores and online supermarkets will decrease, and stores and online supermarkets will have more choices to seek more profits, if the third-party sellers of Yuanqi Forest are not the only options for Yuanqi Forest, if there are more brands, third-party sellers will seek more profits. As the number of competing brands increases, so does the ability of buyers to assert their position. Eventually, because the brand barriers are too low and the technical content of substitution and imitation is too small, the influence of the brand on the product will become weaker and weaker.
3. Target market analysis and market positioning
(1) Target market analysis
1. Analysis of geographical factors
Large cities have a more concentrated population, consumption capacity and health awareness are also more prominent, and it is easier to achieve product sales in third-tier cities and above as the main battlefield for the sales of Yuanqi Forest sparkling water series beverages.
2. Analysis of demographic factors
Compared with male consumer groups, female consumer groups pay more attention to the packaging design, bottle design, product capacity, product taste, etc., pay more attention to the social attributes of the product, and the pricing range of the product is less obvious, which is a type of consumer group that should be focused on breakthroughs. Female consumer groups also pay more attention to their own health attributes, and consumer surveys show that the main group of people for sugar and fat reduction is women, and about 65% of women have had sugar reduction behaviors, which is much higher than that of male groups.
3. Analysis of behavioral factors
Consumers buy Genki Forest sparkling water series products, or because of its refreshing taste, they can obtain the expectation that it will quench their thirst as a drink itself; or because of its excellent appearance, it is expected to achieve product socialization as a popular product; Or because of its main health quality, it is expected to control sugar and reduce fat. For the different expectations of consumers when purchasing products, they can be divided into three categories: practical product market, social product market, and health product market.
(2) Market positioning
1. Geographical factors
At present, the channel sales network of Yuanqi Forest sparkling water series products has basically achieved full coverage of first- and second-tier cities, and in the next step of the layout strategy, we should focus on the development and expansion of new first-tier cities, which are in a period of development and expansion, and have a relatively broad consumption prospect.
2. Demographic factors
At present, the target customers of Yuanqi Forest Sparkling Water series products are mainly teenagers and women, but at the same time, it is also necessary to realize that the 25-34-year-old group and the male group with a larger population base and stronger spending power should also pay attention.
3. Behavioral factors
As a daily beverage, Yuanqi Forest Sparkling Water series products are currently positioned as practical and health-based, mainly to meet daily consumption needs. In the next step of the layout strategy, we can focus on the social and gift attributes of the basic blank of the product, by modifying the outer packaging of the product, increasing the value of the product in the social field related publicity, through the youth group to connect the young and middle-aged groups, to promote the old with the new, the combination of the old and the new, so as to better expand the scope of consumer groups through behavioral factors.
Fourth, the marketing strategy of Yuanqi Forest
(1) Product strategy
1. Increase the research and development of new products
At present, although the market share of Yuanqi forest products is acceptable, the phenomenon of over-reliance on a certain popular commodity is too prominent. The single product structure and the product type to be optimized are prominent problems in the product. The new products put on the market every year are less than 5% of its total research and development, and a large number of new flavored sparkling water of Yuanqi Forest is still in the development and experimental stage. How to launch new products such as white peach-flavored sparkling water in the past one or two years is an urgent task for Yuanqi Forest sparkling water series drinks to increase their market share.
2. Promote the diversification of product capacity
In terms of product capacity design, Yuanqi Forest Sparkling Water series beverages should be modeled after similar competitors, adding multi-capacity packaging, and setting the target group of less than 200ML in mini bottles as teenagers or women; The multi-flavor 1.5L capacity target group is set as a family gathering or a gathering of friends to meet the various needs of consumers.
3. Optimize the outer packaging of the product
In the future product packaging design, the Japanese character "気" can be gradually modified, changed to domestic calligraphy or other trademarks, increase the domestic attributes of product packaging, and strive to gradually break away from the "pseudo-Japanese" brand of product impression. In the whole box packaging, you can set up part of the gift box or re-optimize the design of the whole box packaging, the current Yuanqi Forest uses the whole box packaging lack of beauty and practicality, the gift box product design around highlighting the social interaction between young people, the whole box product design around the practical design of the product, can be further optimized.
(2) Price strategy
1. Differentiated pricing strategy
In order to enhance the profitability of enterprises, different pricing strategies should be implemented for different target groups. For example, teenagers who do not care too much about sugar intake can design sparkling water "youth models" for such groups, cancel the use of sugar substitutes for youth products, dig deep into the taste of products, and win the preferences of this group through lower cost and relatively low price; For example, for middle and high-end income groups, you can design a "business model" of sparkling water for such groups, consider a more concise and elegant design for the outer packaging of business models, reduce the sweetness of sparkling water in taste, and strive to make business sparkling water seize the market of the original commercial drinking water. Different products refined for different target groups can be freely floated in the pricing range to achieve product profitability for each audience group.
2. Expand dealer product discounts
On the one hand, it can slow down the deposit recovery time of dealers, and can directly feedback part of the deposit, and then feedback part of the deposit after completing the operation of a product cycle, and finally return the remaining pressure at one time within the agreed time to increase the cash flow of dealers; On the other hand, you can also consider the incentive measures for the product, and the dealers will be rewarded with Yuanqi Forest sparkling water and make a profit, and the range of financial rewards will be different, and you can also start from the delivery price to reduce the delivery price of high-grade dealers, form a price gradient, and implement different product discounts for different levels of dealers.
(3) Channel strategy
1. Online channels are more user-focused
With the help of e-commerce platforms or online celebrity live broadcasts, we can mine large-scale discount product promotions for old customers and lightly mature group customers, regularly set promotional festivals, and recycle the backlog of inventory in offline channels to concentrate on online sales. Carry out such activities periodically to form a memory point for product channel sales.
2. Offline channels focus on revenue
In addition to first- and second-tier cities, we should also consider the channel layout of new first-tier cities and even third-tier cities, relying on convenience stores and small supermarkets, and quickly seize such markets with fewer but more refined main brands; In addition, typical places and channels that have not yet been involved should also be considered, such as Internet cafes, hotels, amusement parks, shopping malls with intelligent cabinets, small and medium-sized restaurants, and other areas with huge consumption potential but not yet fully occupied by Yuanqi Forest sparkling water series beverages, and flexible pricing based on regional characteristics to improve revenue space; Finally, the monitoring effect of channel product sales should also be strengthened, and the products with poor sales should be replaced in a timely manner to achieve dynamic improvement of products.
V. Conclusions
This paper takes the Yuanqi Forest Sparkling Water series of beverages as the research object, analyzes the external marketing environment of the Yuanqi Forest Sparkling Water series of beverages, summarizes and finds the problems existing in the current marketing strategy of the Yuanqi Forest Sparkling Water series of beverages, and analyzes the causes of the problems one by one. Through the STP theory, the target market is subdivided, the market space can be entered, and the direction of the optimization strategy is controlled, and then the 4P theory is used to optimize and improve the problems mentioned in the above problems from the four perspectives of product, price, channel and marketing, and some safeguard measures are designed to realize the implementation of the optimization strategy. The optimization measures of marketing strategy can broaden the marketing ideas of Yuanqi Forest sparkling water series products, and also provide a certain reference for the marketing strategies of other similar enterprises in the industry.
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