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Robust : A diminishing of sight to the national brands (1)

provenance: Private operators : China reported on January 1, 2007

Date Added:2007-01-09

TWO major layoff is a direct product of the persistent downturn in the market. In 2005, 157 million yuan BY loss, the loss of 150 million yuan in 2006 is expected again. "The most serious losses of bottled water is nothing but a mess. "A TWO staff told reporters. BY products is the theme of bottled water in the 1996 to 1999 years of rapid growth, once their sales reach 30% of the market share in China, the share of first. Now, however, its market share is only 5%, the Wahaha and Nongfushangquan competitors far behind them. BY bottled water product lines are shrinking, water and mineral water lifted mint. It is understood that can reach into the TWO : Bottled water management model is the existence of an independent company, Other products by category management, operating independently of each type. These category include : bottled water, yogurt, tea beverages and pulse. Due to repeated losses tea drinks, which in October 2006 was made up of a complete transfer. Four into three category type. "TWO AD milk contained high level calcium is first introduced to the Wahaha is a follow-up to those. "A TWO staff told reporters, "However, the meager profit. "" Pulse? "asked this reporter. BY pulse is in the new products introduced in 2003, once the market has responded enthusiastically. "Pulse of the products in short, we entered a recession in 2006, the highest ever annual sales will reach 800 million Only 500 million in 2006 to 6 billion. "a veteran BY people believe that the pulse of the success was purely fortuitous. At that time, when the "SARS", the concept of functional beverages pulse to rise. It is understood that bottled water but each year 20 million yuan profit, but bottled water and tea drinks loss The end result is a comprehensive BY consecutive years of operating losses. "There are two main reasons for the losses in 2006, is one of the huge advertising invalid. marketing to achieve desired. Management claimed that the advertisements had more than 100 million yuan, but sales of the feedback is that not seen the advertising effect; Second, in 2005, Mr. based on the huge investment in building factories, Chongqing alone has invested more than 200 million yuan on, and to poor marketing. "TWO an internal sources. Because of sluggish sales of products, in addition to 30% of sales force layoffs, the plant also has large-scale layoffs rate as high as 40%. Sources of supply to the market in north and northeast China, Tangshan factories, there was 2,000 people, now only 800 people, said, layoffs will continue. "We have encountered some difficulties, we move further reform. "Lam reluctant to give up and forced massive layoffs matter. and the direction of reform is on grounds of commercial confidentiality and refused further interviews with the reporter of this newspaper. According to investigation by the reporter, TWO's structure, Marketing companies in the country will only become more regional marketing companies contracted for a comprehensive front. This is precisely six years ago with the acquisition totaled BY runs counter to the original intention. The initial intention was that can be reached through TWO channels and build a sales platform is totaled. This platform is not only sales BY products, but also other products sales totaled, including the interests, Yue Po, and is widely champion. BY acquisition can be reached before the structure is linear functions, according to production, supply, marketing division. throughout the branch responsible for the sales; Higher entered, the system was used Products Division. But some analysts believe that this is only eight on the implementation of the framework is a transitional measure, The aim is to be allocated to power 14% of one president and general manager. thus dividing venture he boquan five other veterans of the "five meetings," the power to influence. When he boquan five expulsion was a veteran venture, in March 2002, adopted a Regional Division BY formal structure. Bulk divided into five geographic markets : east China and north China, northeast China, southwest China and South Africa (central and southern China). Every business sector into a "small BY", a set of the production and marketing of their own independent system. However, in September 2006 the structure adjustment BY totaled wishing to become a complete declaration of its own platform concept is a failure. TWO new structure in the northeast region to be removed. East, north, southwest, south, despite their name changed, but the basis of division is no longer a geographical concept, Instead, sales of products. For example, the southern district of Wuhan, which originally was assigned to the southwest region. Those poor sales of the market, such as Changchun, Guiyang, were classified as development area. In fact, six years ago, the platform BY TWO never sold outside products. "For many years, the channel BY not strengthened, but were destroyed. "A TWO of such a channel can be reached in the evaluation of the performance of reconstruction BY platform. Cultural Conflict in the management of companies will blame the decline in sales performance ineffective. Sales staff and management chaos caused by the company -- that is no market orientation, lack of marketing strategy. "No new products were successfully launched several years in a row. We only know that money sit in an office executives. It invested 100 million yuan in advertising. They really do not know what went well spent. "A TWO sales staff says. "We can not in the market strength. "" We all know that the market and the sales office, such as air force and artillery. "a veteran senior sales BY statements" splittist "pain, "Markets are not permanent institutions in each region. BY past and the present, he boquan the identity of the original owners, clients and personally talk, and talk channels, the market now are all the 'manager'. They only data, led by the nose by advertising companies. The original is how do we tell advertisers, now become the advertising agency of the Department of the market to tell us how to do. "" Those people and the British do not understand the mainland China market. "This high-level sales, According to the information available to policy is too rigid, is one of the reasons landslide BY performance. It is reported that the Ministry of the market two years ago by the people in charge, it is now taken over by the British, called Mark. "V 4.5, the blue-and-mobile tea nutrition cool, Shin Tong," this former marketing executives excited, "These product name, you heard? "According to information, BY thrice in the past two years, these products are the launch of new products. Usually three months after listing some products on the market - the Ministry of the "death" Market recovery is based on data analysis products. But sales personnel that departed from the actual data analysis, some convicted of "death" of products, and over time, consumers will be accepted. "We have hardly been the first high-level acceptance. "A veteran BY Sales Manager feels helpless. "They feel that only people from the old BY operational level, not from a strategic perspective. BY they want a thorough transformation. "Early in the game, he boquan eve TWO former marketing director Yang Jie strong discovered that they Danone BY pace of development in a very divided. TWO old people believe that China's fast economic growth rate higher than that needs to snatch market space, increase its market share, so as not only to future profitability is considerable, but also the long-term national plan; However, Higher pursuit of the annual revenue, at reducing costs and shrinking establishment. "You know, the management of enterprises and people, the link is real blood. TWO early by the entrepreneurial mentality of the past. the various competing interests into place. "a veteran BY" memory "in the years since then. "TWO more familiar with the original concept of the company as it is done in the cause, loyalty, Now all professional managers. TWO old people just come, even if the wages are only 600 yuan. could provide 200 yuan fighting vehicles running business. Even now, earning 30 million if the company is not reimbursed. not even 10 yuan affixed their money on transport. Now for the revenue increases, 3 million annual salary, general manager, regional manager of more than 20 million annual salary, the lower the income of sales personnel. only in the basic monthly salary between 1,000 and 1,500 yuan. "The old TWO said. "Hong Kong people work very seriously, very professional, decision-making is more likely to result in the examination, without much consideration, it may be difficult to accept the old TWO people emotionally. The end result of communication difficulties in the region. "Another had to resign, Danone still exist in China, such high-level cooperation between the original sales BY TWO evaluation of two new general manager. The former senior sales, "BY defeated by the new management style differences. and the cultural differences between the new team and marketing team. "A native of private enterprises from subsidiaries of multinational companies change entrepreneurial fervor and the attendant loss of standardized management. BY makes old people could not find before "work" the impression that the expression of different ideas with different methods making contradictions accumulated. Brand weakening "to belittle them, I can feel the tone. "June 2006. reached more than 180 in Beijing held a scale of the Asia-Pacific Regional Conference, BY attend the flag can be achieved. A TWO found, as a large number of participants BY subject of criticism. Furthermore, the company's products, a cold BY equally. According to the plan, companies in Beijing Lifting the theme of the meeting, June 16, 2006 will be held at the Great Wall activities. Following convention, the layout of the scene activities in all enterprises will display their products. However, the benefits of forces responsible for the preparation of the Conference general manager Mao godsend (phonetic). TWO north Dec Marketing Director has refused to tell the specific locations. 10:00 the same day, Wang Lei Dial, said Mao did not know God, in the ambiguity that may Simatai Great Wall. Great Wall at Juyongguan results of activities are conducted. Danone, Danone TWO only "family" in a bit. Meanwhile laughter of a group of children, shouted in unison, "Today, you drink? "TWO early television advertising this picture has become a distant memory. Have known "BY" brands are gradually faded from people's view. "Higher BY simply do not want big brands. "A TWO old people sad, surnamed Zhang, on the basis that BY milk, yogurt, the company has long been to weaken the upper intentionally or unintentionally, can be reached in the family. yogurt key layout in the "bright" and "Mengniu" This kind of enterprises that. "You can look at the pulse of the packaging beverage bottles, and even consumers do not see the relationship between the pulse and TWO, 'TWO' words in the top right hand corner of the packaging bottles. not obvious. The key lies in how to deal with the promotion of products brand BY problems. "The people surnamed Zhang TWO said. "In the old BY era, we do not put much publicity. But the results have been good. "This Mr Cheung asked the reporter," Why TAT will take over, BY fame began to slide? a pulse example, in the publicity and promotion of pulsating, BY behind the asking was diluted. "Mr Cheung said :" We sometimes as a daydreamer. I hope that one day there will be able to reach bought back from TWO, TWO re become national enterprises. national brands. "Focus can be reached success of the pace of expansion in China will reach endlessly. This from the French food and drink industry heavyweights, M & A volume in China famous beverage enterprises. Wahaha, Bright Dairy Corporation (6.37,0.09,1.43%), TWO, and is widely Meilin, Shenzhen interests, Huiyuan the Piedmont, and even recently, a number of Chinese-known food and drink brands, suddenly, Danone relations were linked to the capital. On the Chinese battlefield, end up like hungry lion, took advantage of its strong capital strength around and wait for annexation. Those of a merger or joint venture enterprises, can be covered up in the globalization of the "board". If you can reach the logical merger can be reached mergers and acquisitions do not expect that you reached with one heart and one mind. This company was founded in France in 1966, was originally a glass company called "BSN." Since diverted food and beverage industry, mergers and acquisitions have become the strategic and operational measures, including the triumph of beer, Evian mineral water. Today, even the name of it "totaled" is the first merger of enterprises. Just 20 years, through mergers and acquisitions amounted to become one of the European beverages giants. "M & A is to consolidate our existing market share. We stress to become the first local market share. "Danone Group, Bush Chief Executive Frank Lee had revealed in an exclusive interview with this reporter. Its final goal is continuously accumulated many regional First, the formation of the first world. If the acquisition is the second regional market, the three enterprises To be able to reach further, it is striving to become the first local market share. In this goal, in addition to the principles of mergers and acquisitions investment returns, Another important consideration is to allow enterprises Danone formed by the merger synergies, including cultural adaptations of integration. "After the merger, we plan to launch a common. "Bush said Frank Lee. Can be reached at the global strategic map, we hope to achieve the main share of the first to focus on three core businesses : dairy, beverages and biscuits. Danone, the core dairy and beverage, yoghurt and mineral water in China. can be reached on each of these three operations were carried out mergers and acquisitions. To share of the local market first, up joint ventures with Wahaha, BY acquisition, holding and wholly-owned Shenzhen interests; six joint ventures with a bright, but also came with lightning Cooperator "marriage." Danone, the M & A business is only one piece of its business arrangements. This global campaign began in 1996, Bush served as the company CEO Frank Lee, His dream is to lead up out of the slow development of the European economy to the real "globalization." That year, can also came up with Wahaha, the first joint venture. 10 foreign operators to choose the right path, can be reached quickly in China layout. However, the situation has been delicate. Zong Qinghou Wahaha head of the operation has been able to withstand up with intervention R & D managers and market presence could have reached director, Zong Qinghou were expelled. Although up subsidiaries in more than 50 Wahaha's ownership of large blocks of shares, but Zong Qinghou never lets up in Wahaha Group holdings. Case is the argument that "the Chinese people will use the site in their own way." Case reaches this point, a typical case occurred in the very Wahaha launched cola This demonstration can be reached for the impossible business, the use of these practices, encircling the cities from the countryside, pretty complete. TWO holding 93% can be reached, it lost its control and management. The result is a recession. Critics believe that the fundamental reason is that we can reach an understanding of Chinese market, but also understand the Chinese staff. Shenzhen totaled notified BY pure water and power interests integration, markets will be lost. "All of us have to consider how their products do not interacted with them. "TWO. Instead, it seems that the knitting business alone. Fluctuation in sales is good, BY nothing to do with the other employees feel. "Do not tell you, you can see the pulse of products TWO? "Pulse of product promotion, almost no mention TWO. like Danone, not TWO another brand. Fluctuation in profit, the money earned will consider input TWO. BY Wahaha, and the fate of the two formed a sharp contrast. Since then, bright and Huiyuan Danone joint venture in the process are warning. TWO who do not want to repeat their mistakes. Zong Qinghou themselves and the practice has become even more emboldened. Six years, up to 20.01% shareholding can quietly on a bright, but always bright like holding water which can reach a chimera. Meanwhile, the growing public vigilance on foreign mergers and acquisitions. Dream of a brand, foreign investors who do not mind being "eroded"? Interview team visited BY Corporate restructuring is not targeting the general manager Lu Xing stay : "China business" TWO of the recent personnel changes, how do you as a human resource person in charge? Xing Lu left : overall survival of the fittest is the normal or personnel changes. Personnel changes do not mean layoffs, because we do not reduce the sales management team, capable upswing so bad down in any enterprise like that. This large area manager for a few people, but were down for poor job performance. According to the main performance. "China business" : the industry's argument that TWO personnel adjustments TWO old people to carry out a comprehensive cleaning. Xing Lu stay : I do not agree with this argument, this team did not have specific adjustments. We recently proposed a concept called "TWO great team," stressing that collaboration, new and old no longer separate. Overall, there is a company interest, and performance-oriented. TWO employees before the acquisition can be reached, there are two outstanding business managers of this region have been upgraded to the same manager. "China business" : the acquisition can be reached, BY performance continued to deteriorate in recent years. Do you think it was a turbulent relationship with the staff? Xing said Lu remain : the continued decline is not accurate. BY 2000 totaled acquisition, management took over in 2002, this is a transition. BY launched in 2003 on the pulse of those most successful beverage. BY currently encountered some difficulties, but there will be ups and downs in the development of any enterprise. "China business" : What do you think the ups and downs of the reason for this? Xing Lu stay : the main market competition is intense, especially water, low water more inferior. This will have a great impact on TWO. Overall the impact is greater northern region, the South is relatively stable. "China business" : the allegation that totaled BY acquisition, the existing management was unfamiliar. This is common in multinational corporations. How should we understand this situation? Xing Lu currently serving TWO : First of all, I remain, the strategy can be reached, I will not answer. Secondly, I do not agree with China reached in the acquisition is a failure. Pulse great success in 2003, profits had reached the peak BY history. At present temporary difficulties must not equate failure. In addition, the acquisition of other enterprises in China can be reached, such as Shenzhen and interests of the force is very successful in recent years has been rapid growth. "China business" TWO : Do you think the problems are mainly what? What measures will be taken to change the status quo? Xing Lu remain : the problem is spreading itself too thinly, and the blocking by other brands. How do now is the front adjusted to keep the leading position in some areas. Besides doing the assessment of staff development, improve team-building. Background foreign acquisition strategy to acquire capital globalization Chinese enterprises have become a new adventure in Paradise. Today, any of the mainstream international financial newspaper reported on the acquisition of Chinese enterprises have become commonplace. Why foreign mergers and acquisitions since 2005 has suddenly increased? First, the rapid growth of China's economy has been in many trades have already fairly high management level, a larger market share. investment in higher-value businesses. Through the acquisition of these companies, foreign investment can quickly enter the China market. to fully utilize the marketing and supplier network has been formed to share the fruits of China's rapid economic growth. More important is that Chinese enterprises purchase price is not that expensive. Since 2001 successive bearish enable Chinese enterprises to the value has been seriously underestimated. Secondly, the acquisition will help enterprises to achieve its strategic plan and then seek the integration industry. In China, resources, monopolistic businesses have gradually become the focus of industry takeovers. Such monopoly can be broken down into resource monopolies (energy, steel, non-ferrous metals), a regional market monopoly (such as cement). Technology monopoly (such as mechanical engineering), the policy monopolies (banking, fund management industry, etc.), the public monopoly (such as electricity, Urban Transport), and so on and so forth. To intervene or not to intervene directly in foreign direct the high cost of the acquisition can be achieved through its strategic intentions. Third, the government cadre performance appraisal mechanism with Chinese characteristics promote the acquisition of foreign capital influx intensified. For this reason, and foreign investment in China is mainly to the early returns on investment are different, In recent years, foreign capital holding more hope for the implementation of its strategic business plans. To achieve its holding, In practice, foreign shareholders are likely to enable the company to suffer losses in control of the company the right to operate the way China was forced to withdraw from the company. thus achieving the goal of wholly foreign. Health watch : TWO great misfortune when capital engulfed autonomy plaintive, Sigh; Sorrowful feelings, Archive two forgotten. Is this is the time that had Xuanhe BY ultimate fate? BY recall the David Bradley, and they brim with bitter taste train of thought descended. BY source for the kept back into the old video footage of the remnants of past glory faintly, after all, BY not the mainstream. Two months, we have spent in Beijing, Guangzhou We noticed two reporters depth survey Once outside the capital said the veil of secrecy slowly bare Consequently 1:00 alarming is that the EU is already scarred BY air. annoying features. At such a time, how can it reached to comment on the six years since the former BY meddle? Not wrap miscellaneous economic nationalist sentiment, could not reach Sep comparing two different end, Sep capital Botswana capital Higher capital Bo Industries, regretted that the word "SUGAR" case has been proved by many examples, Those who play major capital Danone Morrison position in industrial areas. Reading through, taking up with the chaos BY capital, we have come to this basic conclusion : When the M & openly flaunt the evolution of technologies, capital rigid become hostage to their own brands were strong, the loss of autonomy. Brand will become an unavoidable decline, unable to break away from the doom and fate. BY news of today's distress and become an "investment" also thought he boquan buy and sell "long neck top duck"? 2001, "he boquan have" betrayed BY able to reach for them, so there is no risk of high-yield brands degrees. Brand and entrepreneurial spirit deeply interrelated, he boquan failed enterprises and brands parallel evolution Brand has not shown the passion to pursue sustainable value. Rational firms should have to maximize their own brand of prudent and rational. Brand genes to achieve the utmost Spread charisma. ABSOLUTE said that the entrepreneurs should even become a strong sense of responsibility, "Brand center," and a high degree of autonomy to the brand. Measurement continued to be the future, the next measure. Remember that it was early in 2005, the country held two sessions before I went to interview Zong Qinghou Hangzhou. he boquan not avoid the topic of conversation. Zong Qinghou said frankly : "TWO selling, I would keep myself, Wahaha advantages can be sustained? "He Zong Qinghou realize that the boss must lack self-control business going. Capital under the control of their own brands and continues to exist, the need for extraordinary wisdom of the operation, the same kind of courage and resourcefulness. "TWO case," warning the eye : Brand independence is not easily give up the most cherished for "sovereignty". Internally it is above all else, an independent external means that the inherent power to defend. Re-distribution of capital tough. Mengniu jointly, can be reached engage in yogurt, TWO of the America. China will link up the timetable Raiders in 1987, the establishment of Guangzhou totaled yogurt company. In 1994, established a joint venture with Shanghai Guangming has two milk yogurt and preservation projects. can be reached 45.2% of the shares. 1996, the acquisition of 54.2% of the shares of Wuhan Lake beer; Set up five joint ventures with Wahaha Company, can reach 41% of the equity; force food companies to purchase 54.2% equity interest in Shenzhen. In March 2000, will reach 92% of the equity to purchase TWO. 2001, totaled Asia Limited shares a bright future, the proportion of 5%. 2004, the Company acquired 50% of the shares and drinking water is widely champion. April 2005, Asia will hold up Guangming Dairy (6.37,0.09, 1.43%) shares increased 9.7%, to be the company's third largest shareholder. In October 2005, the third in Asia will reach 1.85% equity holdings Guangming Dairy. Total 11.55% shares. To April 2006, a bright equity holdings reached 20.01%. In July 2006, the ratio of 22.18% shareholding Faguodaneng to become the second largest shareholder of China Huiyuan Group. In December 2006, reaching Cooperator with the formation of joint ventures, totaled 49% shareholding. Committed to the production of yoghurt and other products, research and development and sales. (Editors : Guangzhou CESTBON)

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