Through careful analysis of the development process of the Seven Wolves Group, we can understand the mystery and experience of the success of diversification of the Seven Wolves.
As a necessary stage for an enterprise to develop to a certain extent, the opportunity of diversification is very important. Premature diversification will not only increase the business risk of enterprises, but also affect the development of main business; Too late diversification will delay the opportunity for enterprises to improve quality and make the scale effect impossible to form.
Economics believes that 70% of a successful company's funds should be concentrated in a certain industry; In the development of this industry, at least 70% of the funds should be concentrated on a certain type of leading products; And the company should form a scale to resist the wind and waves, and the leading products should strive to reach 70% market share.
Seven wolves company was founded in 1990, when developed countries began to transfer the labor-intensive industries of clothing production to the third world. The same clothes, China's cloth, China's processing, foreign brands will double the price.
The great value of the brand inspired the seven wolves. When the company was born, grasping the reality that the brand awareness has not yet entered the mass consumption behavior and the market segmentation of the clothing industry has not really formed, Seven Wolves took the initiative to adopt the market segmentation strategy and entered the men's wear field.
In terms of market expansion, the seven wolves oppose traditional marketing ideas and move against the trend. First of all, focusing on Shanghai as a "window" functional city, taking Baibai, Hualian and other shopping malls with excellent images as the breakthrough point, the seven wolves men's wear and imported men's wear will be sold side by side in the window. It turns out that this is right. Seven wolves men's wear conquered Shanghai consumers with its unique youth, pride, comfort and elegance, and quickly opened the Shanghai market, where finger shopping appeared.
Due to the success of Shanghai's market expansion, the popularity and reputation of the Seven Wolves brand have climbed all the way, and quickly spread to the national market. In a short time, it became a strong brand in the clothing industry, and the seven wolves jacket was also known as the "king of jackets". From 1993 to 1994, the leading position of the seven wolves in the jacket market has been basically established. In order to transform the marketing channels of products, after careful consideration, Seven Wolves boldly adopted two forms of distribution strategies: direct chain and foreign developed franchise chain.
According to the traditional practice in the industry in the past, most of the existing products will find the market again. However, the seven wolves did the opposite. Through the twice-yearly promotion meeting, they invited retailers and agents from all over the country to "try on shoes" and set up chain stores with them in the form of franchising. The headquarters and chain stores around the country implement network management, so that goods can be loaded and delivered in time, greatly reducing operating costs and realizing "no capital expansion".
From the market recognition obtained by the above seven wolves, we can find that when the seven wolves began to diversify, the main business of men's jackets was the first, occupying a huge market share.
The direction of diversification is a key issue. Many enterprises blindly enter industries they don't understand because of their fever, and the lack of manpower and material resources also causes financial difficulties and eventually fails. In addition, it is also a problem worth studying whether to diversify under the coverage of one brand or to fragment multiple brands.
Based on the opinions of all parties and repeated argumentation, Seven Wolves Company has established a diversified strategy of "cross-industry operation under the same brand" and clearly put forward that the theme must be "Seven Wolves-advocating a new culture of men".
Inspired by the phenomenon that foreign clothing industry and tobacco industry often run in two tracks, Seven Wolves Company began the first step of diversification.
From 65438 to 0996, Seven Wolves Group cooperated with Jinjiang Tobacco Monopoly Bureau of Fujian Province to develop and produce "Golden Seven Wolves" cigarettes in Longyan Cigarette Factory with the brand of "Seven Wolves". The first white shell packaging was introduced, which quickly started in Fujian market and quickly became a famous brand cigarette in Fujian real estate. In June165438+1October of the same year, with the help of market inertia, Seven Wolves launched special high-grade red-shell cigarettes on the occasion of Hong Kong's return to China, filling the gap in the middle and high-grade cigarette market in Fujian Province for many years.
With the help of this east wind, the seven wolves lost no time to intervene in the wine market. From 65438 to 0997, Seven Wolves Company launched "Seven Wolves Golden Bottle Beer" and wine, which was positioned as middle and high-grade wine, and opened several major wine markets in Fujian Province and Northeast China in a short time. In order to pursue victory, from 65438 to 0998, the seven wolves actively intervened in the tea culture product industry.
At first glance, these diversities seem too broad and do not conform to the law of pluralism, but in fact, the pluralism of the seven wolves closely revolves around the theme of "advocating a new male official culture"
Men are facing great social pressure, and they have both wolf character and potential in performance. The loneliness and vicissitudes of the wolf, the victory and defeat of the wolf, the courage and persistence of the wolf, and the sincere unity of the wolf seem to be the only spiritual course of these "winners". It is these people who are confident, bold, chic and even rebellious, and at the same time pay attention to the combination of individual heroism and traditional collectivism in team operation.
The theme positioning of the Seven Wolves represents the excellent image of men who are pursuing achievements, going forward bravely and being brave in challenges. Their age ranges from 20 to 55 years old, among which men aged 30 to 40 are the main consumer groups. It is precisely because of the accurate grasp of the male spirit that the seven wolves company unified the clothing, tobacco, alcohol and tea industries under the "male culture"; Clothing represents self-confidence and stability, cigarettes symbolize heaviness and thinking, alcohol expresses chic and boldness, and tea emphasizes tranquility and reverie. The main personality characteristics of men are all integrated into the products of Seven Wolves in various industries.
For example, the reason why Seven Wolves entered the tea culture products industry is because the tea culture products industry will be a bright market with great potential, especially leisure workshops, which will largely replace the declining dance halls and other industries; The market of tea culture products is also the market of male officials, because men in this group are successful in career pursuit, but they are also under pressure from all sides. While pursuing career development, they also have a strong mentality of "seeking quietness while moving", and drinking tea is an elegant and mature leisure way.
However, there has never been a famous brand of tea in Chinese mainland. In the past, the habit of buying tea by place of origin and variety was widespread, which hit the blank spot of developing local famous brand tea market and development opportunities in Chinese mainland.
In addition, the diversification of the seven wolves is largely based on the situation, such as the development of cigarettes and the merger with Jinjiang Tobacco Company; The development of wine is in cooperation with Baker Brewery in Putian. Intervening in tea culture products is a joint venture with Shi Jia Tea Industry in Taiwan Province Province. It can be seen that in the diversified development, the seven wolves are cooperating with powerful and experienced enterprises in this industry, making use of the brand advantages of the "seven wolves", and effectively extending the brand image.
Thinking:
1. What are the characteristics of "Seven Wolves" in the timing of implementing diversification strategy?
2. What is the reference significance of "Seven Wolves" in choosing the direction of implementing diversification strategy?
3. What are the misunderstandings of diversification? How to correctly handle the relationship between specialized management and diversified management?