Click the image for details Some mark the end of the year on December 31, others at the Spring Festival. One is the fiscal year, the other the psychological year. In any case, it's time to take stock. Annual results are out; some met targets, others didn't. Some are happy, some are not. At this point, I'd like to emphasize: how about reviewing your annual performance within a five-year framework? This question aims to determine the value of annual performance. A person's work is valuable not only this year but also in the future, so the value of performance appreciates. 01 I've written over a dozen books, and "Let Growth Change Destiny" is one of the three I'm most satisfied with. The other two are "Chinese-Style Marketing" and "Let Ordinary People Achieve Extraordinary Results." The perspective of "Let Growth Change Destiny" is to examine all growth within a longer time frame. Maybe you grow year after year, but die in a few years. You didn't die at millions, didn't die at tens of millions, but died at hundreds of millions. Many companies die during continuous growth because the threshold for elimination rises faster than growth, and competitors grow faster than you. Sometimes, you achieve your goals, but the industry has no place for you. For example, the goal is to enter the top three, but the result is that only the top two survive. Performance should be examined not only from the company's perspective but also from the industry's perspective and over a longer time dimension. 02 Being happy for a few years, then crying bitterly. This happens. 25 years ago, a wine company saw sales surge for several consecutive years, but went bankrupt a few years later. Because when wine transitioned from the original "ladies' fruit wine" to the era of dry red and dry white, they picked up sales that others had abandoned. A few years ago, a instant noodle company's sales surged. I learned that a major brand had abandoned low-end products, and this company cherished them. Now, this company is struggling. Performance growth was not in the right direction. If the route is wrong, the better the performance, the further you deviate from the goal. So, we need to examine: is your annual performance "toxic" performance? 03 There was a beer company that no longer exists. For a few years, sales grew well. I asked: In how many markets are you number one in sales? Answer: None. I asked again: In how many markets are you in the top three? Still none. I finally asked: In how many markets are you in the top eight? Answer: A few. Finally, my conclusion was: What's the point of such performance growth? If performance growth does not strengthen market position, it is meaningless. Because ultimately, what determines a company's fate is not performance growth but market position, even if it's a local market position. If performance helps improve market position, then quantitative changes bring qualitative changes. So, we need to examine: Does your performance help improve market position? Can quantitative changes lead to qualitative changes? 04 In the herbal tea industry, people often talk about positioning and the duel between the two giants, but I focus more on how this industry established itself. JDB's herbal tea went from a regional product to a national one, with the famous three major campaigns.
∙ Wenzhou Campaign: Crossing the river by feeling the stones. Started in hotpot restaurants, expanded through household consumption.
∙ Jiangxi Campaign: Nurturing a mature system. Established product positioning, advocated consumption scenarios, and determined the 4M strategic development model [referring to Marketing (market opportunities), Management, Model (resource model), and Money (money-related systems)].
∙ Beijing Campaign: Creating national momentum. Created national topics, matured media PR, and from then on went national. If there is performance more important than sales, I believe JDB's three major campaigns are the most important performance because they laid the foundation for future development. A model that brings rapid sales growth is more important performance than sales. Once the model is established, sales are worry-free. So, we need to examine: Does your performance help form a marketing model? If not, it's just isolated performance. 05 A provincial manager asked me why, despite good performance, the boss removed him. The boss sent him to a new province with two salespeople. As soon as he arrived, he worked hard on sales, and indeed the performance was good. I asked: What was the purpose of the boss sending you there? He said he didn't know. I said, people often complain that when performance is good, others get promoted. You think sales are performance, but the boss has performance more important than sales in mind. I guessed that the boss wanted to develop a second base market, and the purpose of sending you was, first, to explore the model of the new market; second, to lay out the layout. But instead, you found a bunch of customers and worked hard on sales. 06 Performance is important; we must never say it's not. Marketing is a competitive field; it's an elimination game, and comparison is necessary. We need to ask: What is the accumulation of performance? We can examine performance from several dimensions: First, can the accumulation of sales volume trigger a qualitative change from quantitative change?
Second, over a longer time dimension, how much value does sales volume have?
Third, in a larger layout, how much value does sales volume have?
Fourth, compared with competitors, how much has the performance changed in a seesaw manner?
Fifth, with the industry's elimination threshold rising, how much has the distance to the elimination threshold changed?
Sixth, in the industry landscape, how far is it from the ultimate pattern? Performance growth ultimately aims to change destiny, not delay death. Source: Teacher Liu's Forum (ID: liuchunxiong1964) New Distribution will hold the 2019 (5th) FMCG + Internet Conference during the Chengdu Spring Sugar Fair from March 16 to March 18. This conference will focus on the topic of "Breaking the Game" and conduct in-depth discussions with many brand owners, supply chain service providers, distributors, retailers, and others. Compared with previous conferences, this summit will be fully upgraded. In addition to the original topics such as channel innovation, city distribution logistics, and distributor transformation, it will also add multiple parallel forums such as new marketing cases, IP + FMCG empowerment, community group buying, and innovative retail. Through three days of ten high-density, high-quality expert sharing and exchanges, we believe every brand owner and distributor can learn the latest business models, expert opinions, and practical methods, find new tools and methods for their own breakthrough in 2019, and return to the track of rapid growth. -END-