Change the Main Course Consumer goods manufacturers are having a hard time these days. Besides the economic downturn and e-commerce disruption, a key reason is that their once-reliable 'signature dishes' are no longer favored. At a forum during the 2016 Chengdu Spring Sugar Fair, to express my stance on product upgrades, I spontaneously used the term: change the main course. Unexpectedly, this term drew much applause, perhaps because it was more vivid than other professional terms. No matter how good the dish, consumers eventually get tired of it. If the main course isn't changed, consumers will overturn the table and switch restaurants. On a full table of dishes, to stand out and please, there must be a standout main course, also known as the signature dish. This main course defines the entire meal, while the rest are merely side dishes. In some high-end restaurants, consumers only need to order the main course, and side dishes are free. In the past, industry leaders had signature dishes; otherwise, they wouldn't have achieved their current status. These signature dishes were their strategic big products. Companies that claim strong brands would be nothing without their signature dishes. Over the past decade, I've seen few companies change their main course. More often, they change side dishes, adding new products that don't significantly impact the overall picture, seeking niche markets and catering to small segments. When the main course is established, this approach is fine. It's usually called product diversification. After all, a table can't have only one main course. For years, both R&D and sales departments seem accustomed to only changing side dishes, not considering changing the main course. Now, it's imperative to change the main course. Uni-President vs. Master Kong: Who Is Changing the Main Course? Master Kong and Uni-President once had a significant gap. In 2008, sales difference was about 10 times, and now it's still 3 times. However, the industry now criticizes Master Kong while praising Uni-President. During the channel deepening period, I wrote many articles praising Master Kong, but that was about the situation, not the company. In 2008, when Uni-President launched its Laotan Sauerkraut noodles, it also introduced a new product, Tom Yum Noodles (Tang Daren). Laotan Sauerkraut was a traditional main course with a low price. Tom Yum Noodles was priced at 7.5 yuan, which was very high at that time, almost double the price of Laotan Sauerkraut. After its launch, Tom Yum Noodles had minimal sales and little market impact, but Uni-President persisted. They insisted on not lowering the price and on maintaining in-store displays, with one Tom Yum display for every two Laotan displays. For five years, Tom Yum Noodles showed little movement. However, in 2015, its sales jumped to 500 million yuan, entering the big product category and firmly holding the top position in the high-end segment. Since 2014, the instant noodle market has been declining overall, with Master Kong experiencing both sales and profit declines. Uni-President's sales declined in 2015, but profits grew significantly. Undoubtedly, Uni-President quietly changed its main course, while Master Kong stuck with its traditional dishes, and consumers are truly tired of them. New Main Course Strategy: Slow Simmering for a Fine Soup In the previous round of strategic big product launches, manufacturers invested heavily in CCTV, bombarding the market to quickly build brand awareness, then rapidly completing channel distribution and consumer education. This was almost a template, and today's industry big products have similar traces. However, in the new round of changing main courses, this tactic seems ineffective. Among mid-to-high-end water products, Ganten and Nongfu Spring's Bai Sui Shan show a stark contrast. Years ago, when I first saw Bai Sui Shan, I didn't pay much attention. It was mainly available in airport and high-speed rail stores. The packaging was good, and I occasionally bought it. I didn't mind its price. Later, I saw Bai Sui Shan in more stores, and more people were accepting the product and its price. It seemed that Bai Sui Shan quietly captured an upgraded bottled water market. During this period, I didn't see any advertising for Bai Sui Shan. Consumers accepted it either because of the product itself or its continuous in-store promotion. But I didn't see it doing promotional activities at the point of sale either. China's bottled water market is fiercely competitive, eventually forming an oligopoly of three players. Master Kong's retail price is 1 yuan, and it's mineral water. Nongfu Spring's retail price is 1.5 or 2 yuan. C'estbon in the south is also at this price point. In that era of 'low price, low quality', this was the mainstream price. It was this low price that killed off regional brands. Later, people desired higher-quality water. Unknowingly, Bai Sui Shan arrived. Initially, the market was small, and it was only sold in select outlets like airport and high-speed rail stores. Even today, the mid-range bottled water market is still not large. However, Bai Sui Shan has started selling in regular outlets. Unknowingly, I've come to regard it as a representative of mid-range water; otherwise, I wouldn't mention it today. Uni-President's Aqua (Ai Kua) water, priced at 4 yuan, is a mid-to-high-end product. Its 1-centimeter-wide label initially caught my attention. I hardly saw any advertising for it. I bought a bottle and kept it at home for a few days, wondering why they did that. With this water, Uni-President exited the low-end mineral water market. I've imagined: What if Bai Sui Shan had launched with a big splash? At that time, the market was small. A grand campaign might have quickly raised awareness and slightly expanded the market. But even if it expanded, it would have been unstable. Large-scale communication has costs and requires sufficient sales to cover them. Evergrande just validated my hypothesis. Leveraging its profits and fame in real estate and football, Evergrande replicated the previous model of launching a main course. It turned out that the old model no longer works. With advertising bombardment, channel distributors feared missing opportunities and joined in. However, consumers didn't buy it, and sell-through at the point of sale was difficult. The Logic of Changing the Main Course Although China entered an economy of surplus after the 1997 Asian financial crisis, Chinese consumers are still somewhat unique. In the past, they were always hungry, in a state of deprivation. Suddenly, products became abundant, and although they were full, they still felt hungry. Consumption during this period had a revenge-buying characteristic. Some say Chinese people's refrigerators are always full, which reflects the insecurity brought by hunger. This stage of consumption was quantity-oriented, with sales exceeding normal levels. At the same time, when information channels were not smooth, centralized communication could quickly build product awareness. Therefore, communication was more important than the product itself. That's why brand and planning people used to say 'perception is greater than fact'. China's past market was a manipulable market. Manufacturers had ample marketing space, and consumers were easily guided by marketing. The most powerful guide was advertising, so many companies became addicted to advertising. Branding became advertising, and brand planning became advertising planning. Now, when changing the main course, who is the target? The consensus is the middle class, which is quite demanding. First, the middle class is rational and hard to manipulate. Having experienced an era of excessive communication, they are instinctively skeptical of commercial messages. This is why marketing finds it hard to gain traction in the process of changing the main course. No matter how good the promotion, consumers are skeptical. Therefore, for a new main course to be accepted, word-of-mouth becomes key. The previous strategic big products were accepted by almost everyone, with wave-like consumption, so the market exploded. The carpet-bombing advertising corresponded to this market explosion. The rise of the middle class is a slow process. Changing the main course at this time is delicate. If too early, the market is too small. If too late, the market is already occupied by others, and it's difficult to quickly capture it through explosive marketing. I agree that the better approach is like Tom Yum Noodles, Aqua, and Bai Sui Shan: silently nourishing, growing together with the middle class. The logic is: the rise of the middle class is slow; middle-class consumption is rational and less influenced by communication. Combining these, the strategy is to enter early, grow slowly, and fight a protracted war. From the cases of Uni-President's Tom Yum Noodles and Aqua, it seems they quietly laid out mid-to-high-end products while vigorously promoting Laotan Sauerkraut. Although they continued to invest, there were no big moves. Yet, unknowingly, the main course was changed, and the company was revitalized. Growing with the middle class means that the old tactic of waiting until the market is big and then hijacking it no longer works. Using marketing tactics to hijack or surpass others is no longer viable. Only by laying out ahead, fighting a protracted war, and honestly building the market can one succeed. - END- The best learning platform for FMCG distributors in China Focusing on providing professional, practical, and actionable tutorials for enterprises and distributors Committed to helping Chinese FMCG distributors grow rapidly The most professional and practical knowledge base in the FMCG industry Reply with the red number below to get corresponding content Reply with number 1 to view the complete knowledge base | 001 Excellent Article Selection | 002 Distributor Market Operations | 003 Terminal Visit Management | 004 Sales Supervisor Skills | 005 Sales Improvement Techniques | 006 Channel Expansion | 007 Managing Distributors | 008 Distributor Development | 009 Distributor Internal Operations Management | 010 Team Management | 011 Efficient Distribution Techniques | 012 Sales Manager's Eighteen Skills | 013 KA Operation Methods and Strategies | 014 First Lesson for New Salespeople | 015 Internet, Brand | 016 Distributor B2B Transformation | [Long press QR code to follow]