Marketing Strategy of Meng Niu by Kitty Zhang Ying
INTRODUCTION
Every company has its own promotion to sell their products. They have advertising and do the activities to as products’ promotion. But how can promotion impact an enterprise? In this article I will analyze the promotion in Meng Niu Corporation. To see how they promote their products to consumers.
Meng Niu Corporation set up on July 1997. In 6years, the revenue in Chinese dairy products companies from No.1116went up to No.2. Meng Niu Milk sale quantity is the NO.1 in liquid state milk market in whole country. In UHT milk market, Meng Niu sale quantity is the NO.1 in all over the country. In ice-cream market, Meng Niu sale quantity is the NO.2 in whole country. Meng Niu is the customer’s most satisfactory milk. It is the only one milk brand which comes into the market in abroad. It is also called “the template factory in the world” and “international demonstrate field”.
For selling milk, the sales person wears Mongolian clothing when they sell milk to customers in special days or special place. The products’ names are also special. They named their product from customers’ habit or people’s life. They have different products to fit different people. People drink different milk for different time. Their package is also larruping. They also invest much money on advertising. Sponsor many activities like “the Divine Land 5” and “Super Girls”. They also hole their own activities like consumers can make the advertising song for their products or the family activities. These all made much profit for Meng Niu Corporate. Meng Niu has the monopolistic shops; it’s the first milk brand which has monopolistic shops.
Meng Niu catches hold of opportunities when they have opportunities, they creates opportunities when there is no opportunity. Opportunity is important for developing companies. Hold opportunity equal to hold money.
Nowadays, more and more enterprises know that the sale strategy can control the business, it is very important part. From Meng Niu, we will see a good sale strategy can change the enterprise’s life; it is good for the enterprise’s future and get more developing.
The main purpose of the paper is if a company wants to set a famous brand in people, the important stand standard is has a good relationship with country, nation and society, close to people’s lives. Though Meng Niu Company’s sale strategy, we can found they do the tings are very close to people’s lives. There milk is form no pollution place. They sponsor the Shenzhou V and TV programs, such as Super girls and family activities. They donated 1 billion to society at SARS time. These are all making people know Mengniu, remember Mengniu. Let people know your company, remember your company, than your may get success in your business.
REVIEW OF LITERATURE
“The reason is easy. We choose an important standard of marketing is the things which are closed to country, nation, society and people’s life; there is all Mengniu’s considered scope. For example: Olympic Games, people form all over the world pay attention on it, Chinese people pay attention on Chinese team, so Mengniu pay attention on it. Taiwan Kuomintang president Song Chuyu went to China; it is an important thing for tow area’s peace and unification. So we did the commonweal’s advertisement for all Chinese. And the Chinese New Year Soiree, 2002, 2003 and 2004, Mengniu also is the CCTV Chinese New Year Soiree’s active participator. We just though that we have the responsibility to regard Chinese people on Chinese New Year after they work hard the whole year.” Said by Niu Gensheng, the president of Meng Niu.
（Source: http://hkstock.cnfol.com/060210/132,1360,1677548,00.shtml）. From the president of Mengniu Niu Gensheng’s words, we can see he direct MengNiu use the “close to customer” strategy.
Sun Xianhong said that, “If product is not good, more propagandize ways, better brand image, more promotion, also are does not have the significance. If the quality had the accident, all painstaking care, all people wealth and physical resource investment not only fell, but also could give the person impractically bad impression. Once the bad impression become the first impressions for customers, later even turned back improves the quality, work hard on remolding the brand image, it will be also nothing.”
(Source: http://www.cnad.com/cnadblog/thesis.asp?UID=172&LID=40&AID=472 ).Meng Niu also pay attention to their product besides their promotion (close to customer).
Why Meng Niu develops quickly and has much kudos in short time? Because from products, sale and activities, they have their own particular ideas. “In products policy, they have a plan called “Give a reason let me choose you!” They have five reasons that make consumers choose Meng Niu. The first is Chinese green food. The second is made in Mongolia. The third is the only resound brand in Chinese. The fourth is get authentication quality from British NQA and ISO9002 international standard. The fifth is the UHT sale quantity is the NO.1 in all over the world.”
(Source: http://czq.blog.bokee.net/bloggermodule/blog_viewblog.do?id=174863 )
“Cup of milks optimizes a nationality” is a Japanese slogan which proposed in postwar, advocated develops cow cultivation industry change national food structure, strengthens people physical quality. In short 20 years time, Japan as soon as leaps into the second big economical powerful nation in the world! The Chinese wants to strive and improve, China needs a strong national physical quality, adjusts Chinese’s diet traditional ideas imperative! Hope Meng Niu can take this revolution and to be the director!
(Source: http://www.bokee.net/forummodule/view/ForumThread/view/10/100412.html) I saw this words form a BBS, it’s a Chinese people want all Chinese to drink milk like Japanese, in his mind, he thought milk as an important part in our lives.
“Niu Gensheng said ‘Advocate all Chinese drink milk, you shouldn’t must drink Mengniu milk, just drink milk. For educating Chinese people drink milk, Mengniu though many ideas, one of them is they present VCD to customers. Mengniu bought some veldt songs’ copyright, use the milk produce’s line and the introduction of milk knowledge to make VCD, and put the VCD into milk boxes to present consumers
(Source: http://book.studa.com/article/390/20051129103415246.html ) The same as that BBS (above), Niu Gensheng advocated Chinese people drink milk, let the milk to be a part of our lives. He said “Advocate all Chinese drink milk; you shouldn’t must drink Mengniu milk, just drink milk.” If I’m a consumer, I see or listen this words, I will think “Meng Niu is really care bout my health, care about all Chinese people. It is our consumer’s company.”
Meng Niu extremely pays great attention to the media output case, Mengniu believe that, a good case may become millions teachers, lecturers and the training organization lecturer’s teaching source material, it’s education of the consumers the function is more widespread and profound, this more effective than sends out 10,000 bagmen, this way although cannot get results quickly, but to the Chinese dairy products development’s influence is extremely profound, after all, there are more and more Chinese people drink milk.
(Source: http://book.studa.com/article/390/20051129103415246-2.html )
“The city people drinks cup of milks, the countryside becomes rich the whole family, our sense of mission is hundred year Mengniu, the strong dairy produce promotes agriculture. Because we make the strong dairying goal and promote the agriculture, agriculture is strong then country will be strong, dairying is strong then the agriculture will be strong. Because Inner Mongolia took the western area, 85% farmers have not entered the county seat. Because the region quite is big, 1.18 million square kilometers scopes, 85% farmer have not had been to the county seat. But in WTO later today, our farmer must face the Australian farmers, the American farmers, the Canadian farmers…how goes to war with the developed countries grain truly is the very urgent question. Therefore we proposed this slogan, drink the milk much and relate with the cultivation household and the planter household. Now our milk price is also lower than water.”(Source: http://eladies.sina.com.cn/2004-05-31/95977.html ). Mengniu Milk is made on the Mongolian llano; they make the foremilk form cows, so they need many cowhands and big llanos. These solve many farmers’ survival problem.
RESULTS & DISCUSSIONS
To set a good brand in people’s mind, Mengniu take the “close to people” strategy, from products’ produce, mane, slogan and package to sale system and create company’s well-know brand.
The first is “have good products”. A good product can make strong sale power! If customers want to know your company, the first step, knows your products, know your brand. So products are good or bad, affect the whole company directly. You know follow our developing economy, there are many factory have built, many people drive cars, the sewage and toxic gas makes our environment is getting not so good. People think much of their health. These make people want their food get to be green food and no pollute. Mengniu know it, so they tell their customers Mengniu milk is green food, it is made in Mongolia. It is an advantage, Mongolia has big llano, it is far from factories, has no polluted. The milk is no polluted; it is easily accepted by customers.
From the national health and I health angle, Meng Niu is an enterprise who has the social responsible, they don’t put too many thickening agent and the medicinal fragrance into the milk. Responsible for the society, offer health products, that can construct a long-time healthy enterprise. At past time, Chinese people work hard to earn money to satisfy their physiological needs which is one of Maslow’s hierarchies of needs. But now, people think much of their health. When they buy things such as food or drink, they always pay attention to food’s quality. “It‘s good or bad for our health?” It transit to the second of Maslow’s hierarchies of needs—safety needs. Guarantee product’s quality not only can get more consumers, but also is a long-term strategy for enterprise.
Meng Niu l milk comes from the Inner Mongolian prairie; there is living Chinese minority –Mongolian nationality. China is a country which has 56 minorities; Meng Niu becomes one member of Mongolian nationality. In 2000, Meng Niu invested more than1 million RMB to one advertisement, the subject is “Cheers for Inner Mongolia”. In the special days, Meng Niu sales person put on Mongolian minority’s clothing. Meng Niu wants Hu Hehaote City where Meng Niu milk made in to be the “Chinese Milk City”. Put the enterprise brand the local brands get together. These let the Mongolian minority and the Hu Hehaote locaters feel Meng Niu is their minority and their hometown brand.
In 6 years, Meng Niu increase cow more than 800,000 heads in Inner Mongolian and the around areas .They have millions cowhand. Meng Niu uses “Promotes dairy farming to develop the Chinese agriculture” as their enterprise mission. China is a large agricultural country which has1.3 billion population .There are 900 million farmers. Meng Niu not only helped the farmer to escape from poverty but also lightened the government’s burden. Meng Niu obtained consumers’ and government’s support. Treats people’s problem as own difficulty, treats the government worried as own worried, this is an enterprise’s responsibility, it good for setting up enterprise’s brand.
In order to expand the box sale of the supermarket, Meng Niu promote the small boxes which 12 bags milk in. Thus, it has solved many housewife the difficult problem about can not move the big box when they purchase. It is greatly popular in the supermarket.
In Chinese culture, people usually to say “Suibian (随便)”. Mengniu consider this speak culture, they produce a new ice cream is named “Suibian (随变), the Chinese sound as same as Suibian (随便). If people ask you “What ice cream would you like?” May be you will say “Suibian”随变（随便）It’s easily to remember and got around.
How can the enterprise make big or how promotes the brand, this is a solution question which every enterprise must fact to. Because products can’t leave life, it is a new proposition.In1999, Mengniu produce the first ice cream “Mengniu Zhuan zhuan”, it is in virtue of the popular song ‘Chang hui jia kan kan’, which sang in Chinese New Year Soiree in CCTV, Mengniu make the advertisement slogan ‘Mengniu zhuan zhuan, hui jia kan kan’, it’s accepted quickly by people. In nowadays, children work very busy, so they can’t go home to see their parents often. The song “Chang Hui jia Kan kan” tell children to go home often to see their parents. It is represented the Chinese culture “filial piety”. Meng Niu is also wanted to use the meaning of this song, so they took that slogan. It made people feel friendly with Mengniu.
China is developing fast; most people are busy on their jobs. That makes many parents have less time with their children. They go to work in the morning, come back home in the evening. Some of them also have overtime for their work on weekend. Children have less communication with their parents. It is not good for the family relationship. Now, many families are trying to change this actuality. In Chinese culture, the family relationship is very important. According this situation, Meng Niu sponsored an activity named “Meng Niu acidophilus milk family activity”. It is an activity which attends by the whole family. Children can act a program with their parents. Meng Niu gave the opportunities to children and parents to improve their relationship. Though this activity, let the families have much time to communicate with each other.
“Enterprise should take are of people first, than people can take care of you!” (Source http://biz.163.com/06/0208/15/29EUJSNH00020QDS.html said by Niu Gensheng– The present of Mengniu) In 2003, China was suffered by SARS, it made China in trouble. At that time, Mengniu took one billion to Chinese government. In SARS period, Mengniu took the “give customers healthy milk” strategy. Mengniu put milk at residential area for customers. It was took convenience for customers. These are all made people know Mengniu, was took a good credit standing for Mengniu. If you help a person at an emergent or difficult time, than that people will bear in mind, thanks you very much, won’t forget it. Meng Niu knows this, and it also took the credit standing from the government. Have a good relationship with your customers and government that will makes your company easily to get succeed.
“When enterprise’s life is close to a region, a country and a nation’s life, the enterprise should work hard to innovate and should assume more social responsibility”
Mengniu made another activity to people and Chinese government. They gave the milk to teachers. They call it “Milk Hope Project”. Mengniu give the milk to teachers on Teacher’s Day in 16cites. T his activity made people feel Mengniu attach importance to education. It also took a good credit standing for Mengniu. Education is important for people; Mengniu took the “close to customer” strategy again.
From beginning, Mengniu have jumped out of sell milk, they put enterprise and the affairs of state and social tings together, the things which Mengniu participated in, there is no relation with milk at surface, but actually, Mengniu spread their brand popularity and upgraded their good credit standing.
In 2003, what was the motherland most noticeable matter? I believe that many people can with one voice to tell you, is “Shenzhou V” flights success. “Shenzhou V” fall to the ground to the same day before dawn 6 o’clock, and Mengniu also in the same day before 12o’clock put their advertisement bedding the entire park more than 30 cities main street and small alley and the outdoors waiting room, simultaneously, Mengniu brand-new television advertisement ‘launch – military supplies – docking’ declares a position in CCTV and regional station various frequency channels synchronization, in several days, Mengniu’s products, already printed on ‘the Chinese astronaut special-purpose milk”.
“Shenzhou V” made Chinese thousands dream came true, it is the success of China, the third world and developing country. It is Chinese people’s pride. Mengniu celebrated with all Chinese. It is a close activity with customers, it also good for Mengniu to have a good relationship with their customers On April 29th, 2005, After CCTV news channel reported the Chinese Kuomintang Present lectured in Beijing University, Mengniu made a commonweal advertisement. Their slogan “Motherland get unify is the same dream of all Chinese! Mengniu Dairy”. This slogan made all Chinese people’s resonance; people want to make Chinese mainland and Taiwan get together. It also took a pure-hearted and close communication with customers. That means Mengniu and all Chinese have a same dream, let customers feel they are one family.
The milk and the dairy products are the most ideal natural food which the nature gives us. There are many alimentations in it. It’s good for our health, especially children. It is a pity that our Chinese takes in the milk and the dairy products are very less. The main of the reason is the standard of living. At past time, Chinese science and technology were not developed. The standard of living is low; most families can’t drink milk because milk is luxury things. But now, not every families drink milk every day. The reasons are people’s habit and conception. If want to change people’s habit and conception that needs correct guidance and the education. Meng Niu’s CEO Niu Gensheng found this problem, he said ‘Advocate all Chinese drink milk; you shouldn’t must drink Meng Niu milk, just drink milk.” Solve people’s essential problem, strengthens Chinese people physical quality that are which Meng Niu did.
CONCLUSION
From all the things which Meng Niu made, we can find Meng Niu take the “close to customer” strategy all the time. So it is more profound to tell enterprise the important stand standard is has a good relationship with country, nation and society, close to people’s lives. Meng Niu considers which close to the country and people. Solve the really problem which people face to. That is important close to your consumers in an enterprise. As a good enterprise, you should let your consumers believe you, accept you, then they can buy your products.
Meng Niu did many things, but how about the future? I advice Meng Niu keep on their “close to customers” strategy. China may hold the Female Football World Cup 2007. At the same year, China will celebrate for regress of Hong Kong‘s 10 year’s anniversary. 2008, China will hold The Olympic Games in Beijing. 2009 is the Chinese Communist Party 60 year’s anniversary. Meng Niu can also have some activities for their promotion in these specially days. Not just Meng Niu Company, any company can do it. Close to customers, customers will close to you!
BIBLIOGRAPHY
1. Dialogue between Li G.D. (the general manager of Beijing Huasheng Shidai Advertisement Co.) and Niu G.S ( the CEO of Meng Niu Co.) 2006,
China FOL Website.
Available from: http://hkstock.cnfol.com/060210/132,1360,1677548,00.shtml
[Accessed: 3rd August, 2006]
2. Liu F, (2005 ) The article about Sun X.H, the vice-president of Meng Niu),
CNAD Website
Available from:
http://www.cnad.com/cnadblog/thesis.asp?UID=172&LID=40&AID=472
[Accessed: 3rd August, 2006]
3. Meng Niu Open Sesame: Small success depend on wisdom, big success depend on ethic, 2006, Asiaec Admin Website.
Available from: http://admin.asiaec.com/zjsj/gggl/598785.html
[Accessed: 4th August, 2006]
4. Chen Z. and Liu R. (2005), The best way for marketing is train your consumers, 46th Ed. Meng Niu Si Wei, Book Studa Website
Available from: http://book.studa.com/article/390/20051129103415246.html
[Accessed: 4th August, 2006]
5. Niu G.S (2004) Story on campo –Meng Niu is not a miracle, Sina Website
Available from: http://eladies.sina.com.cn/2004-05-31/95977.html ).
[Accessed: 4th August, 2006]
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August 31st, 2006 at 10:42 pm
“CLOSE-TO-CUSTOMER” Strategy is the only strategy for success in any business!
I agree with many of the points raised and felt that the author has given many good examples to support her views.
Meng Niu is definitely a good business model for many Chinese companies to be truly successful.
As mentioned in the paper, good business sense is secured by building good relationships with customers, society and nation.
It is an all encompassing relationship-building that defines good companies from GREAT companies.
Overall, I am relatively happy with the paper.