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01 Brand manufacturers do new marketing, retail companies do new retail. In the second half of the internet era, traditional companies seem to have found a theoretical basis for moving forward. What is the connotation of new marketing? What is its extension? What are the epistemology and methodology? What should the practice be? Liu Chunxiong, a veteran in the marketing field, spent five years studying the relationship between traditional marketing and the internet. Recently, he published a book titled "New Marketing," which has received rave reviews and attracted many fans. In this book, Mr. Liu systematically proposed the following concepts: Two 'Trinities': 'Offline, community, cyberspace' and 'Cognition, transaction, relationship.' One 'Three Major Constructions': 'User connection, channel digitalization, full-chain transaction.' The 'Four Elements' of New Marketing: 'Scene, IP, community, communication.' The 'Five Transformations' of New Marketing: Product socialization, brand IP-ization, content-driven communication, channel community-ization, and gamified promotion. The structure is clear and the viewpoints are distinct, providing logical guidance for companies to deeply embrace the internet.
02 How do traditional companies react? They remain bystanders. Why? Because Mr. Liu avoided the existing stock. Those who don't manage a household don't know the cost of fuel and rice. Organizational inertia is the natural enemy of innovation and change. Traditional companies with huge existing stock are often bound in an interconnected ecosystem: companies need profits and cash flow, listed companies need market value, and a fully equipped business team racks their brains every month around collection tasks, designing various 'hedging' control measures to 'just fit' the task indicators. This multi-layered controlled business chain operates safely in a 'gray space.' The traditional stock ecosystem includes four dimensions of organization: 'structure, process, skills, assessment'; four systems of product: 'price, policy, structure, target'; and five division-of-labor definitions in the manufacturer-dealer relationship: 'cash flow, logistics, information flow, expense flow, commercial flow'... These four organizational dimensions, four product systems, and five manufacturer-dealer division systems do not even include R&D, procurement, production, quality control, branding, etc. They are like an old tree with long vines, interwoven, and a single move affects the whole. How easy is new marketing innovation?
03 Starting from the Existing Stock We have been researching new marketing since 2016 and have provided new marketing services to nearly a dozen traditional companies with results exceeding expectations. Below, we share our approach.
First, describe increment, start from stock. Unlike the human-wave tactics of deep marketing and the competitive strategy of positioning theory, new marketing is a new growth strategy for traditional companies after the demographic dividend ends and growth stagnates. It requires companies to move market resources and organizational mobilization capabilities to the consumer end, establishing intimate integrated relationships with consumers through scenes and content, thereby gaining more revenue from existing customers. This shifts the organization from a transaction-oriented approach to a user-operation-oriented approach, enabling sustainable growth in the new environment. Decision-makers are often impressed by such concepts that can bring incremental growth. Ideas drive change, and stock improvement gains strength. After instilling the concept, we optimize based on the company's existing business and organizational foundation. First, we adjust the original organizational system and product pricing system, gradually releasing the company's ability to operate consumer users, while tightening product price control to full control, giving the company 'ammunition' for secondary resource allocation. Then we introduce the 'Store-to-Store' (Dian Dian Tong) business, making dealer inventory and retail store purchases online and digital, connecting the 'manufacturer-store' trinity closely. This process aligns well with the traditional ecosystem, helping traditional business without causing disruption, and is easy to implement with visible results. By starting from the stock, the business and commercial teams taste the benefits, paving the way for subsequent changes with a unified organizational atmosphere and reducing change risks. The successful introduction of 'Store-to-Store' helps companies solve channel digitalization. Later, more challenging projects like 'Person-to-Person' (Ren Ren Tong), 'Village-to-Village' (Cun Cun Tong), 'Points Mall,' and 'Cross-Industry Integration' become relatively easier.
04 Connecting C-End Second, use a linker. Brand manufacturers ultimately need to achieve user privatization and online presence through new marketing. But without a suitable software linker to bring users online, all activities, communication, and other strategies will be homogenously imitated by competitors, diluting effects and leading to red ocean competition, resulting in 'the daughter wearing the mother's shoes—following the old path!' There are many linkers on the market, but either they only solve a specific link, such as consumer scanning codes—merely solving electronic promotion records—or the online-offline integration is insufficient, such as Retail Link and JD New Channel, or companies self-develop customized systems that downstream distributors, retail stores, and consumers do not accept—so far, there are no successful cases. A good linker requires two conditions to create value: values and organizational fit. Only with correct values can a linker avoid 'soft resistance' from offline members! A good linker must first consider the interests of the enterprise F! It must also consider the interests of the enterprise's customer, the dealer B, and even more the interests of the 'customer's customer, the retail store b'! The FBb trinity forms the supply system. A good linker upholds the value of 'supply thinking' rather than 'demand thinking.' Our linker 'Chain e Chain' (Lian e Lian), developed over four years, draws lessons from B2B and O2O, and from the manufacturer's standpoint connects the full chain of 'factory-store-customer,' allowing companies to smoothly introduce it into their existing business systems.
05 Organizational Optimization Third, optimize organization, take small steps and run. From channel transactions to user operations, the linker is only a tool; organizational transformation determines success. Companies need to develop a CMO (Chief Marketing Officer) organizational system, which includes four positions: 'product manager, scene designer, media officer, data officer.' The development of the internal CMO system drives the improvement of external dealers and retail stores, forming a trinity, 'Hong Kong people governing Hong Kong,' jointly conducting user operations, making traditional channels an extension of the manufacturer's market functions. CMO and market-oriented organizations are standard for new marketing, but they cannot be achieved overnight. They need to be developed gradually on the existing organization, from easy to difficult. For example, develop a media officer from the marketing department. Initially, the media officer should focus on editing and disseminating offline activity content, not necessarily creating high-end original articles. Once results are seen, upgrade to the next goal, borrowing internet practices and iterating quickly.
06 Starting from stock, choosing the right linker, and optimizing organization with small steps—we have followed these three principles and successively implemented new marketing for Henan Huangou and Jiangxi Litou, achieving good results with significant business growth. More than a dozen liquor companies, including Dukang Liquor, Baofeng Liquor, Xifeng Liquor, and Guyuelongshan, have cooperated with us. Our new marketing model, starting from stock such as channels and organization, has become a strong expectation for these traditional companies to embrace the future. The new marketing system is a process of repeated interweaving and improvement from theory to practice and practice to theory, and has become a concept of common concern in consulting, industry, academia, and other fields. In practice, we have moved from 'Store-to-Store,' 'Village-to-Village,' and 'Person-to-Person' to 'Cross-Industry Alliance' and 'Points Mall' (2B, 2C), to the four major user operation principles—the activity-as-product principle, the viral communication principle, the online-offline integrated transaction principle, and the 'Three Banquets and Three Meetings' consumption principle—to the 'resonance and explosion' principle of niche as mass, and to the monthly 'User Operation Strategy Meeting' process with consumer participation... These methods have broadened the horizons of traditional companies during practice, making them pleasantly surprised, tasting the benefits, and strengthening their determination for change.
07 Mr. Liu Chunxiong is an observer, thinker, and activist in China's FMCG industry. He has walked the fields for decades. He is a teacher I deeply respect. We often exchange ideas, and he even visited our projects to inspect and gave many specific suggestions, from which we benefited greatly. Since 2013, Mr. Liu has observed and thought as a bystander, helping emerging companies like Xiaoshile achieve outstanding results. Xiaoshile had no stock burden, so Mr. Liu naturally chose to start from the perspective of communication and explosion. Because we have long been in the consulting field, facing traditional companies with stock burdens daily, and with our accumulation in the internet, we proactively chose to start from the stock business, channels, and organization. Mr. Liu has accumulated experience in solving the growth and incremental explosion of emerging companies, while we have accumulated experience in solving the upgrade and stock revitalization of traditional companies. Both do new marketing, with different entry points but the same direction, leading to the same destination.
Liu Chunxiong's Comment The article contains many flattering words about me, which I dare not accept. I was forced to learn new marketing because traditional methods couldn't solve problems. First, let me comment on the issue of incremental entry versus stock entry. Starting from increment has been my consistent principle in corporate marketing. Marketing consulting differs from other consulting, such as strategy, management, branding, culture, human resources, in that marketing must speak with results and prove itself with results. Just as a doctor treats a patient, the principle is to cure the patient, and strengthening the body should be under the premise of treating the disease. I do not oppose starting from stock. The biggest problem with moving stock and organization may be that the stock is not preserved. Many consulting failures are due to not preserving the stock. Second, let me comment on the difference between Lin Feng's new marketing and my new marketing. What Lin Feng does in new marketing, I call the three major foundational constructions of new marketing: connecting C-end, channel digitalization, and full-chain sales. Lin Feng's 'Store-to-Store' is actually channel digitalization; 'Person-to-Person' and 'Village-to-Village' are actually connecting C-end. Full-chain sales should be based on connecting C-end. Starting from the three major foundational constructions, there are two possibilities for generating increment: one is solving the problem of second-tier distributors' price chaos. The root of price chaos is in the second-tier distributors. Channel digitalization solves this, making second-tier distributors lack survival space. (By the way, second-tier distributors are actually intentionally raised by salespeople and agents because only they can buy goods with cash at critical moments; pressure stocking is mainly pressed into second-tier warehouses.) Channel digitalization solves the transparency of goods in the channel. Therefore, Lin Feng said that channel digitalization should be solved through administrative orders. Solving this problem may generate increment. The second space for generating increment is: because of connecting C-end, it is possible to carry out promotional activities targeting C-end, activating C-end. I agree with this view. I strongly approve of Lin Feng's stock entry. However, in his system, although it has the three major constructions of new marketing, it precisely lacks new marketing. Scenes, IP, community, communication, and other content are basically absent. Of course, whether to start from increment or stock is purely a personal preference. Doing one well and then the other is fine. In my humble book "New Marketing," there is no mention of the 'three major foundational constructions' of new marketing. This was proposed when PK-ing with Mr. Bao Yuezhong on new retail, as a measure for brand manufacturers to respond to new retail. What Lin Feng does is exactly this. Therefore, I pay close attention to his work. By the way, Mido Big Data Engine's one-code-one-thing also conforms to the 'three major foundational constructions' of new marketing.
Source: Teacher Liu's Forum (ID: liuchunxiong1964) On October 23-24, during the Autumn Sugar and Wine Fair, the '2018 FMCG City Distribution Logistics Conference' hosted by New Distribution will be held. New Distribution will invite industry bigwigs, FMCG warehousing and distribution experts, and dealers who have transformed to unified warehousing and distribution platforms to discuss and answer questions about the future development trends of FMCG city distribution logistics and practical cases of dealer transformation to unified warehousing and distribution, under the theme 'New Distribution, New City Distribution,' hoping to bring you different inspiration and thinking! The specific meeting topics are as follows:
List of Participating Companies In no particular order Hunan Zonglan Diandan Network Technology Co., Ltd. Jingbang (Wuhan) International Freight Forwarding Co., Ltd. Mengniu Dairy Qinghai Hanxiang E-commerce Co., Ltd. Unilever Service (Hefei) Co., Ltd. Shanghai Branch Huicong Hunan Xuan'ang Food Co., Ltd. Guangzhou Tongdaoren Information Technology Co., Ltd. Qingdao 888 Trading Co., Ltd. Uni-President Enterprises (China) Investment Co., Ltd. Hunan Province Zhongxiang Gongpei Logistics Co., Ltd. Shenglong Ingredients COSCO Shipping Logistics Warehousing and Distribution Co., Ltd. Guangxi Yongpai Liquor Co., Ltd. Shangqiu Kangrong Trading Co., Ltd. Jinan Dingzhong Economic and Trade Co., Ltd. Liaoning Bimai Agricultural Technology Co., Ltd. Kunming Xiongjia Trading Co., Ltd. Shaanxi Houheng Trading Co., Ltd. Guangzhou Dingwo Enterprise Information Consulting Co., Ltd. Shaodong Jiajiale Trading Firm Boda Trading Industrial Bank Changsha Branch Wuhan Muchen Convenience Store Chain Co., Ltd. Fujian Fuxing Yuncang Logistics Co., Ltd. Guizhou Yilimi E-commerce Co., Ltd. Jiangxi Xiao Laoer E-commerce Co., Ltd. Jinshankoufu Shanxi Taihang Yuanjing Supply Chain Management Co., Ltd. Shanxi Dezhun Supply Chain Management Co., Ltd. Shaoyang Tongdeli Trading (Xiangbang Logistics) Huanfu Tongda Express City Distribution Beijing Xinjingxiang Food Co., Ltd. Wuhan Huizhong Tianhong Liquor Co., Ltd. Changsha Paide Biotechnology Co., Ltd. Chao'an Tuqiang Guizhou Yihe Bopin Supply Chain Management Co., Ltd. Jiangxi Kang'en Industrial Development Co., Ltd. Xiangtan County Yisuhe Town Yuhua Paper Store Luoyang Yuanlang Trading Co., Ltd. Tongchuan Yaozhou Huayuan Supermarket Co., Ltd. Hunan Yongfu Jiujiu Trading Co., Ltd. Zhejiang Chengchengtong Logistics Co., Ltd. Chongqing Kaiguo Materials Trading Co., Ltd. Beijing Xianmaixianmai Data Technology Co., Ltd. Hanchuan Qixing Trading Co., Ltd. Tongxin Jiuzhiru Trading Co., Ltd. Guizhou Meiguo Guoguo Network Technology Co., Ltd. Hubei Anjie Logistics Co., Ltd. Hubei Kuaixiao Hulian Technology Development Co., Ltd. ...
Dealer Transformation Representatives (Proposed) In no particular order Jiangsu Huashang City Distribution Network Co., Ltd. Chairman, Rong Jun Hubei Yijiaren Logistics Co., Ltd. Chairman, Wang Bo Sichuan Chengdu Xingrenxing Trading Co., Ltd. General Manager, Jiang Shuming Shandong Yunbang Warehousing and Logistics Co., Ltd. Chairman, Liu Jichen Chongqing Lingyu Consumer Goods Supply Chain Management Co., Ltd. Chairman, Tu Mingyu Guangzhou Zhongshan Wanrong Marketing Co., Ltd. Chairman, Yang Su Sichuan Bajie Supply Chain Management Co., Ltd. Chairman, Yuan Xia Hubei Pengdun Meiyitian Supply Chain Management Co., Ltd. Co-founder, Li Qiangyun Henan Xuchang Jiulegou E-commerce Co., Ltd. Chairman, Zhang Jianyong Hebei Changyi Logistics Co., Ltd. Founder, Ma Haichao Hebei (Chengde) Wulian Yun Warehouse Co., Ltd. General Manager, Meng Yucun Xinjiang Urumqi Su'an Jinchi Logistics Co., Ltd. Chairman, Zhang Xun Jilin Sansheng Lianguo Chairman, Zhang Hailing Hebei Dunjie Supply Chain Management Co., Ltd. Founder, Qiang Huitao Hunan Damei Supply Chain Management Co., Ltd. General Manager, Liao Lei ...
On October 23-24, the 2018 China FMCG City Distribution Logistics Conference hosted by New Distribution will be held in Changsha. Industry bigwigs have sent blessings for the conference. Click the video to watch; see the original text for more details.
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