Amoy Brand Royal Mud Square axes: marketing product management and the big environment

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Dai Yue, chairman and president of Royal Mud Square

"Electric Dealer Sample" Time is a long river. Since March 1998, the completion of China's first internet trading began, the electric business enterprise surging, live and death, both from the 1999 since the establishment of Dangdang, but also a high profile March but only online 3 months of the product Poly network. From July onwards, Sina Science and technology will select one or two representative electric business enterprise to do the observation every week. We do not mean to be successful, but are willing or due to the failure, or comb its model, or report its growth, to record the current sample of electricity.

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Brand Profile:

Brand: Royal Mud Square (Hunan Changsha)

Category: Mask;

Available time: 2006;

Executive team: Dai (Chairman and President); Liu Waves (the founder of the Royal Mud Square brand, is only responsible for the first raw materials processing management); Huangjin (Chief of staff, similar to COO); Kang Wenshu (technical engineer of product technology, former Office of Unilever);

The total number of products (paragraph): nearly 150 paragraph;

Customer Price: 120 yuan;

Sales: 2011 Close to 200 million, 2012-year target sales 200 million;

Annual net profit: About 10% of the sales, that is, the book profit amount of 20 million yuan. Since the expansion of operations requires substantial financial support, the essence still needs to be financed to promote development;

Number of employees: nearly 500 people (including customer service and warehousing, etc.);

Financing: billion-level investment has been made, specifically inconvenient to disclose.

(The above information is provided by Royal Mud Square)

Headquartered in Hunan "Royal Mud Square" is a completely rely on Taobao channel to do the Mask brand. Since 2006, the annual sales of Yu Nai Fang on Taobao have soared from less than 1000 yuan a year to nearly 200 million. From this brand in the period of several important points of view, the Royal Mud Square proved the marketing tools, product management and the big environment of these three elements in Amoy brand growth process of the important role.

"Good Time" marketing

April 2010, the Royal Mud Square sales jumped four or five times times. That made the company's president, Dai, a bit of an accident, since the growth rate was usually one to twice times. But he knows exactly where this unexpected growth is coming from. April 9, he attended the Hunan satellite TV "Day Up" program broadcast. In this episode, he was demonstrating the process of the mud mask production, and gave his brand a big advertisement.

Now, looking back on the show, Dai still felt that the mud square had a good time. At the end of 2009, Taobao and Hunan satellite TV set up a joint venture company "Hunan Happy Taobao Culture Communication Co., Ltd." April 2010, one of Hunan TV brand column "Day up" for this production of "Happy Taobao" Special Edition, selected a number of categories of more than 10 Taobao shop for the typical promotion. At that time, the royal Mud Square has just decided to make products from simple to do sales to do at the same time brand, and began to launch a large number of new products and upgrade product image.

With such planning, Dai walked into the studio of Hunan TV. Whether it is on-site demo mask production process or the performance of the moderator exaggerated humor, Dai to the Royal Mud Fang want to convey the "natural" demand performance of relatively clear in place. At that time to participate in the show also taobao another underwear Amoy brand "song Rui Seoul." For some reason, however, founder Zhang didn't even mention the "Goldie" brand name (and possibly the program clips) on the show.

According to Dai revealed that at that time, shop selection to Taobao advertising business priority. 2007 years, Taobao officially launched advertising business. And the Royal Mud Square since 2008 began to advertise on Taobao. Today, nearly 200 million of the annual sales of the Royal Mud Square brand promotion costs about more than 40 million, including Taobao channel accounted for 60%, other channels including fashion magazines and television programs.

May 2010, the Royal Mud Square and Hunan local life weekly "new one Week" cooperation, the production base and technology has been the focus of publicity. 2011, the mud mask of the royal Mud Square is Hunan TV's beauty category column "I am a great beauty" focus on recommendation. In addition, the Royal Mud Square also in Hunan TV shopping program "More Amoy More Happy" and "happy to buy" in a frequent appearance.

It is not difficult to see, in addition to Taobao ads, the Royal Mud Square media delivery are concentrated in its headquarters in Hunan. Thanks to the national coverage of Hunan TV and high-frequency exposure, the royal Mud Square has achieved a decent promotional effect. This effect is directly reflected in sales. 2010, the Royal Mud square sales soared 10 times times to reach 40 million yuan.

The "downwind car" of the internet shopping environment

The "Good time" encountered by the Royal Mud Square is not only "happy Taobao" one. China's consumer-to-consumer and Business-to-consumer markets have begun to show signs of rapid growth in 2006.

Taobao platform for example, 2005, Taobao's annual sales of 8 billion. In 2006, the figure doubled to 16.9 billion. 2007, Taobao annual sales of 43.3 billion, the performance growth rate again significantly accelerated to 156%. The "2008 China Online Shopping Survey", which is looking for consultation, shows that the penetration rate of online shopping in the 2007 is growing rapidly. At the end of 2007, the penetration rate of online shopping was increased by 13.3% to 42.5%. Over the same period, the number of shopping on the internet in the north of the 9 million, an increase of 122.6%.

2007, the Royal Mud square sales in such a large environment soared. At the end of 2006, Dai from Liu Hailang, founder of the mud Square in the hands of the Royal Mud Square online sales business. Dai said that in the six months before the takeover, the Royal Mud Square on Taobao only sold 1000 yuan of merchandise. And 2007 the whole year, with large-scale trial activities, the Royal Mud square Taobao store sales jumped to 700,000. "At that time is mainly the development of online shopping momentum is very good, and our base is small, high growth in fact very easy to do." "The Dai Yue Feng concludes this way now.

2009, Taobao began to implement the "big Taobao strategy." The big Taobao strategy is designed to move Taobao from an online shop platform to an E-commerce infrastructure platform. Taobao in the elaboration of the big Taobao strategy specifically mentioned to help traditional brands to carry out business intentions, more and more traditional brands began to enter Taobao Mall. At the same time, all customers, wheat bags and other pure Internet brand hot let Dai began to realize the importance of brand in the future competition. "At that time Taobao people told me that this is a chance, so I went back to the Royal Mud Square began to focus on brand." ”

In the second half of 2008, the Royal Mud Square company shareholders contradictions, Dai in 2009 basically has faded out of the company. So far, Dai-Feng for the contradictions of the details were not discussed in detail.

2010, Dai at the invitation of shareholders to return to the Royal Mud Square. Most of the television publicity at the Royal Mud Square was rolled out after his return.

Amoy Brand product development and management

Almost all Amoy brands have maintained a faster new product update speed. However, compared with the clothing Amoy brand, beauty cosmetics Amoy brand new product change because of category characteristics, research and development cycle and raw materials and other factors.

2010, the Royal Mud Square began a planned expansion of the product line. 2008, the Royal Mud Square of the full range of products have 20, 2010, the data quickly increased to 60 variety. At present, this figure has been updated to 150. These products are divided into independent research and development, corporate cooperation and outsourcing to research and development institutions three kinds. Today, most of the core products of the Royal Mud Square are developed by themselves.

Royal Mud Square Research and development of a mask new product cycle of about six months to a year. Dai said that their product development team is divided into product planning and product formulation development of two pieces. Product planning is mainly based on market demand planning product concept. Product formulation research and development according to product planning needs to develop formulations. A new product roughly to go through "planning Program-Research and development formula-laboratory testing-packaging materials testing-internal staff trial-invite customers to try" These links before mass listing.

Not every product of the project can achieve mass production and listing, and these failure cases are also testing the Dai Yue-Feng decision-making ability. Royal Mud Square once wanted to develop a Jingdezhen ceramic series, but because the sealing of ceramic packaging did not meet the standard, the project two years still can not achieve mass production. Today, the project has been largely abandoned. "But in the formulation research and development, packaging proofing, trial experiments and other links have been spent a good hundreds of thousands of." "Dai said.

According to the official introduction, Royal Mud Square raw materials "royal mud" has non-renewable. "Royal mud" needs to be mined and up to 6 months of physical precipitation. Such a production process also let the royal mud square raw materials, product management links are different from the clothing category Amoy brand. In order to ensure the supply of raw materials, the production base is usually prepared one year ahead of the next year of raw materials.

Dai said the current "royal mud" reserves can support the development of the brand for more than 30 years. In order to avoid the problems caused by the depletion of the "Yu Nai", the Royal Mud Square has begun to expand the mask products of plant species outside the mud mask. And the expansion has begun to bear fruit. It is understood that the royal mud Square mud mask currently accounts for only about 30% of the brand.

It is understood that the royal Mud Square customer price of 120 yuan, each user average purchase of 1.5 pieces of goods. Dai is still quite satisfied with both of these parameters. He disclosed that this year's royal Mud Square's customer unit price target is 140 yuan. The span of this goal is not large, because for Dai, this year, the focus of the mud square is no longer sales, but the internal management system and brand upgrade. "The first two years of rapid growth, internal staff management did not keep up, affecting the company's efficiency." ”

And Dai said the brand image upgrade only involves product and shop external image upgrade, does not involve the royal Mud square itself price strategy and brand positioning. From the product price point of view, the Royal Mud square each product price is generally around 100, belong to Taobao on the middle of the mask. In this respect, Dai said, the Royal Mud Square is still located in the city of the petty bourgeoisie women, temporarily do not do high-end products.