Three yuan into the "Snake Swallow Elephant" dilemma?

Recently, ternary released the first quarter of 2013 performance report, with a bleak description is not too, ternary first quarter loss of 12.5416 million yuan, and the same period last year, the company profits 4.92 million yuan. Looking back on the 2008, ternary is how the scenery, the outbreak of melamine at that time led to almost total loss of dairy enterprises, dairy industry carried out a big baptism, in this "dairy industry disaster" may be the biggest industry winners than ternary, ternary in this industry disaster completed their own gorgeous turn, Back to China's first line of dairy industry to achieve a net profit of 40.76 million yuan. However, now the decline of the aristocracy, to be attributed to the three-dimensional restructuring Sanlu This "elephant"?

What's wrong with ternary?

First of all, the annexation of Sanlu "Snake swallow Elephant", into a quagmire into reality.

Three-yuan acquisition of Sanlu, if the layout and adjust properly, with Sanlu nearly 5 billion of the capacity attributed to ternary, may be able to change the fate of ternary, seeking to set the national market, will have more than 50 years of history of Beijing local dairy products old three to the national brand change. However, the brutal reality and good dreams always have a gap, ternary in recent years, the results have been given the answer, in three Yuan to buy Sanlu a year later, Mengniu, Yili, bright overall turn round, http://www.aliyun.com/zixun/aggregation/ 32902.html "> Revenue growth ranged from 7% to 68%, but three yuan because of the integration of Sanlu group bankruptcy assets and losses."

Second, the blind expansion sank deeper and deeper.

Eight porridge, drink, Prince's milk, McDonald's?? Can you relate to ternary? Since the acquisition of Sanlu, the three-dimensional expansion of the food industry map has never slowed down. 2009, ternary "alternative", through the way of brand licensing to enter the eight porridge and non-carbonated beverages market; in 2011, Sanyuan and New Hualian Holdings joined hands in the bankruptcy of Prince Edward's milk and a stake in McDonald's. Multi-category expansion is a double-edged sword, multi-front combat, will cause enemies, energy dispersed, dispersed forces, resources dispersed and other issues, resulting in the mire deeper and deeper.

Finally, high production costs are also factors affecting performance.

In the global raw material rising situation, the dairy industry faces the situation of large increase in operating costs, the industrial chain of raw milk, transportation, testing costs and many other aspects of the price increase, have exacerbated the cost of dairy enterprises pressure, compressed the profit space of enterprises.

How should ternary break through?

As a foothold in the Beijing market ternary, facing has been caught in the dilemma of internal and internal difficulties, should do a good product, expand product line and break out of the sales area, blindly diversified investment will only let ternary go more detours.

1, busy mergers and acquisitions to catch quality, do promotion. Ternary by virtue of "clean body" has been the public's appreciation and trust, now steadfast, attentive to do a good job of products and marketing only to break through the foundation. Domestic brands only to do their own solid products to win the hearts of consumers, to obtain a better market share.

2. Perfect dairy product line. Dairy industry has entered the white-hot competition, many enterprises have played a combination of boxing. Ternary need to continuously enrich their product line, and strive to achieve "No I have, I have gifted, people gifted me refined" to increase product varieties, specifications, the target group of people to meet different levels of market demand, occupy the market heights.

3, breakout sales area, Vitalize. Sanyuan took over the core assets of Sanlu and launched a nationwide sales network, but could not equate with the occupation of national market share. Ternary should use the "mushroom" strategy, first to create several important cities, and then radiation throughout the country.

I hope that ternary can continue to quality-oriented, to provide consumers with inexpensive products, to eliminate extensive expansion, holding a "decade grinding sword" the determination to break through the dilemma, to create a true national brand hundred years.

Mu Chaoxi

China marketing decision expert

Dean of the school of excellent marketing

Visiting Professor of Tsinghua University