On December 30, following the space technology science popularization whirlwind that swept five cities in Northwest China, Master Kong kicked off its space science exhibition in Southwest China at the Sichuan Science and Technology Museum. Since June 26, 2018, the FMCG giant Master Kong has partnered with Xinhua News Agency to hold the 'Space Spirit China Tour and Master Kong's Inclusion in Xinhua's National Brand Project' ceremony, after which the space science exhibition officially began. From late October to mid-December, Master Kong's space science exhibition toured five cities: Xi'an, Yulin, Datong, Ankang, and Taiyuan. Looking back at 2018, in my view, for Master Kong, 2018 was the first year of 'product quality benchmarking against space standards and digital channel upgrades.' As a leading enterprise in the FMCG sector, Master Kong is beginning to focus on deep innovation in products and channels. Why do I say this? Let's look at two aspects.

  1. Product Quality Benchmarking Against Space Standards Product quality is the cornerstone of all business activities. Without quality, a company has no value for sustained survival. In the past, the instant noodle category was once shrouded in negative perceptions, affecting the development of the entire industry and related enterprises. As is well known, only by breaking 'fixed perceptions' can the category continue to thrive and innovate. In my view, changing consumer perceptions cannot be effectively achieved solely through advertising, simple information transmission, or repetitive memory-strengthening communication. Changing perceptions requires adding interaction and experience, allowing consumers to be willing to learn, open to receiving information, and correctly understand the instant noodle category. How to change perceptions? This is a serious challenge for the category's leading enterprise, Master Kong. In 2003, Mr. Yang Liwei traveled into space aboard the Shenzhou V spacecraft, and from then on, space became the symbol of top-tier technology in the minds of Chinese people. In fact, in its early years, Master Kong also introduced the HACCP food safety management system used for space-grade applications. Additionally, since 2015, Master Kong has invested 300 million yuan to build a large-scale FD factory (using FD technology applied in space). Perhaps 'fate had its plans,' as Master Kong has long had countless connections with the space industry. Combining Master Kong's product quality R&D with space technology—these two CPs—might fundamentally solve the consumer perception problem. It is understood that at the science exhibition, Master Kong integrated the production process and management of instant noodles into the space technology experience, reshaping consumer perceptions of instant noodles through professional explanations and demonstrations. This change is not simply achieved through continuous information dissemination (advertising) but through consumers at the scene, in the form of 'hands-on, touch, and dialogue,' allowing them to understand the entire production process of instant noodles. This form is more enduring than single-form advertising, and when reflected back to the brand, consumers have a deeper impression of Master Kong. According to insiders, in the five cities where Master Kong's space science exhibition toured, the total number of visitors reached 41,000 consumers. In my view, the participation of these 41,000 consumers not only allowed them to see the technological progress of the national space industry up close but also showcased Master Kong's product R&D strength. Master Kong's 'space-oriented' product quality strategy is planting a seed of a healthy category in consumers' minds. Of course, when this ultimately reflects on the market, the boost to sales is also evident. Some might say that the impact of offline science exhibitions is limited and that they are only temporary activities. How to let more consumers, especially in third- and fourth-tier markets, understand the quality of instant noodles is a challenge Master Kong faces. But in my view, this is not the case, because 'space' is highly likely to become a hot IP like the Forbidden City. On January 3, Chang'e-4 successfully landed on the lunar surface, sparking nationwide discussion, and space technology is becoming a source of national pride. In this process, Master Kong's 'space strategy' will also become an object of attention and even imitation across the industry under the influence of the space IP.
  2. Digital Channel Upgrades In addition to partnering with the space industry, in the second half of 2018, Master Kong actively embraced the internet. On November 2, Master Kong announced a strategic cooperation agreement with Alibaba's Ling Shou Tong; on November 8, at the World Internet Conference, Yang Qiankun, Chairman of Master Kong Holdings China, announced the construction of a new smart business ecosystem. Strictly speaking, this is Master Kong's second channel marketing revolution after the 'intensive channel cultivation' strategy. △ Chen Huangshu, Chief Customer Officer of Master Kong Holdings (left), and Lin Xiaohai, General Manager of Alibaba's Ling Shou Tong (right) As the internet fully moves offline, future channels will become increasingly fragmented and diversified. Efficiently connecting diversified retail scenarios is a challenge every FMCG company must face. Master Kong's approach is to actively embrace the internet, using the digital management concepts behind it to respond to changes in diverse retail scenarios. Does using the internet to connect channels mean distributors are no longer needed? In fact, this is a misconception. In Master Kong's understanding, the internet is positioned as a tool for efficient distribution, not the main body of distribution. Distributors are the most important part of the distribution chain, and Master Kong hopes to use efficient tools like the internet to increase sales and improve distributors' distribution efficiency. In the future, with diverse retail scenarios, relying solely on distributors' sales staff through 'visits' will not achieve effective coverage and distribution. Master Kong hopes to position itself as a platform, not only exporting products but also advanced marketing ideas. In this era of mutual empowerment, Master Kong aims to empower distributors, tailoring suitable internet tools for them, and helping them connect to more diverse retail scenarios. Future business division of labor will be socialized. As a platform-based enterprise, Master Kong cannot handle all tasks alone. Distributors will not only be replaced but will be more valued by platform-based enterprises. Master Kong must maintain its core competitiveness in the offline market, no longer needing 'payment and delivery' type distributors, but more 'strategic cooperation' bundled distributors. Master Kong provides distributors with diversified products, advanced digital tools, and all the 'guns and ammunition' that help boost market sales. In recent actions, we have also seen Master Kong's emphasis on distributors: since 2017, Master Kong has implemented a new channel management strategy: 'small headquarters, large branches; remove large regions, establish provincial regions; intensively cultivate cities, jointly sell in counties; protect profits, focus on execution.' The core purpose is to reduce communication costs and enable efficient dialogue between Master Kong and offline distribution entities; in mid-2017, Master Kong actively helped distributors integrate digital tools, extending order acquisition time from the previous 8 hours to 24 hours; at the end of 2018, Master Kong increased rebate policies for instant noodles, adding 2 yuan per box. Behind this series of efforts is Master Kong's insight into industry trends and the repositioning of the distributor role.
  3. 2019 Worth Looking Forward To Looking back at Master Kong's two key actions in 2018, 2019 may be even more promising. Through interactive and experiential promotion, consumer perceptions of the category have been improved. At the same time, against the backdrop of the space hot topic, Master Kong, as a strategic partner, will also benefit from this process. Behind the heated discussions about space, not only is national pride established, but also reverence for quality technology, and these will be naturally attributed to Master Kong, making consumers more inclined to choose the Master Kong brand when purchasing. Undoubtedly, future consumer demand will be niche and diversified, which will test every company's product R&D capabilities. Product R&D capability will determine whether a company can adapt to changing consumption trends. The stronger the R&D capability, the faster a company can innovate and create products that meet consumer needs, and with Master Kong's 'intensive channel cultivation + internet' digital channel strategy, good products can be 'placed' in front of consumers immediately. An increase in market share and sales growth is worth looking forward to! -END-