Marketing: the strategy of traditional coating enterprises to deal with the impact of "low cost mode"

Core tip: in 1436, Johann Gutenberg invented the printing press Before that, books were handcrafted by monks Gutenberg's invention greatly reduced the cost of production By 1500, nearly 20 million books had been printed with this new method, which is more than the total number of books printed in the past human history In 1869, John Sainsbury opened his first self-service supermarket in London Before that, miscellaneous Shenyang steel structure fireproof coating construction expert punde Building Fire Engineering Co., Ltd Recommended introduction: since its establishment, Shenyang punde Construction Fire Engineering Co., Ltd has cultivated a group of professional construction teams with excellent equipment, rich experience and serious responsibility with advanced and scientific management methods and strict engineering quality assurance and after-sales service system It has undertaken a number of fire system installation projects, which has been praised by customers Every idea and special requirement of you will be fully considered by us and fully realized in the construction technology, which will become the cornerstone of our successful long-term development We are looking forward to your invitation, to provide you with quality services and high-quality technical support! All construction coatings have passed ISO9001 Paint House News: in 1436, Johann Gutenberg invented the printing press Before that, books were handcrafted by monks Gutenberg's invention greatly reduced the cost of production By 1500, nearly 20 million books had been printed with this new method, which is more than the total number of books printed in the past human history In 1869, John Sainsbury opened his first self-service supermarket in London Before that, the competition of grocers mainly focused on store location and sales personnel Sainsbury decided to locate his store outside the city center and let customers self serve Sainsbury saved costs by reducing staff and choosing cheaper locations, and returned some of the costs to customers in a way that reduced commodity prices Sainsbury was a quick success His supermarket is not cheap, but different Is your business, like the monks of the 15th century, trying to retouch manuscripts faster and better? Or is it Conceiving and creating new printing equipment, so as to take the lead in the industry and bring about a revolution that truly benefits mankind? Low cost products and services are not new things, but a new wave of low-cost business models is emerging In many industries and regions, these new business models are seizing market share from traditional enterprises This new wave first appeared in the rapid development economy (RDE) In the RDE market, local enterprises and multinational companies must design new business models to provide services for most customers with limited economic capacity These new business models are also of strategic importance to developed markets The leading companies in the RDE market are taking advantage of the successful experience in the local market to enter the global market Multinational companies use low-cost products and services created specifically for the RDE market to fight against competitors and develop new price points and applications in developed markets The golden rule of the low-cost model is that the low-cost way is not just to give existing customers the opportunity to buy the same product at a lower price Most importantly, this approach is a new value proposition to meet the needs of existing customers and new customers, and is strongly supported by the new business model Ryanair, for example, is a budget airline Of the first passengers on Ryanair, 55% have never flown before Nearly a hundred years after Sainsbury's innovation, Theo Albrecht and Karl Albrecht rebuilt their retail stores At that time, the supermarket has become a large-scale store, and with the continuous expansion of the store scale, the real estate and personnel costs once again become an important factor The Albrecht brothers realized that by strictly controlling the number of products to about 600 and focusing on their own brand products, their stores could provide customers with the most favorable prices and the convenience of the city center The Albrecht brothers have achieved amazing success Providing limited products without compromising product quality is another key pillar of many low-cost business models Henry Ford used this principle to launch the Model T in 1908, which made the car really popular in the United States In 1913, Ford introduced the assembly line, focusing on cost control rather than diversity He claims that any customer can paint the car in any color he wants, as long as it's black It should be noted that the drying speed of black paint is the fastest In 1948, Dick McDonald and MAC McDonald redesigned the restaurant: they canceled the printed menu and provided customers with a limited set of choices There are also no waiters in the restaurant Customers order directly at the counter, which separates the dining area from the kitchen Restaurants no longer offer knives and forks Customers can eat directly by hand Customers may even clean their own tables before leaving the restaurant This is a revolution worthy of the name The restaurant did not reduce the quality of food, but only reduced the product range Like supermarkets, restaurants give customers part of the work they used to do to save money These examples illustrate the four golden rules of a low-cost business model: ● low cost does not mean low profit A low-cost business model can also generate high profits For example, Ryanair and McDonald's are among the most profitable companies in their respective industries ● low cost does not mean poor quality In general, the low-cost business model only narrows the product range ● low cost does not mean cheap imitation Low cost business model is a real innovation ● low cost does not mean no brand Low cost business models are often strongly supported by strong brands Although successful low-cost business models have their own characteristics, most of them have common characteristics Its success depends on carefully selecting and actively integrating the most fundamental and mutually supportive elements in all aspects of the business model At the beginning of the 21st century, most multinational companies have realized that in order to realize their development vision, they need to succeed in BRIC markets such as Brazil, Russia, India and China Most companies simply move their traditional business models to developed markets By serving the high-income customer base of large cities, these enterprises have achieved double-digit growth on the basis of small income Although such growth is good, it is unlikely to have a significant impact on a company's global performance or long-term leadership In most industries, if enterprises want to obtain strategic income in the RDE market, they must expand to areas outside the high-end market, and develop appropriate business models, products and services The low-cost business model is an important part of all RDE strategies Nokia was one of the best examples of this strategy To succeed in the developing market, Nokia has adapted its business model: it uses local R & D centers to create low-cost products designed to meet the needs of mainstream users At the same time, Nokia has set up a new system to bring these mobile phones to the market Nokia has about 100000 dealerships, three times larger than its closest competitor Nokia has established a close relationship with the Indian market, further promoting the rapid growth of its business Since Nokia entered the Indian market, India has developed into the second largest mobile phone market in the world after China Today, Nokia has become one of the largest multinational companies operating in India, with $3 billion of its revenue coming from India But that's not the end of the competition Nokia faces a huge challenge from local handset manufacturers For example, Tianyu mobile phone has jumped to the third place in the market, and its business model focuses on rapid innovation cycle and unique functions, such as ultraviolet money detector Low cost is necessary for emerging markets, and it is often the source of inspiration for mature markets In 2002, General Electric Company (GE) sold ultrasound equipment priced at more than $100000 to large hospitals in China, with limited success Clearly, GE has to develop a very different business model to capture the core of the market Ge decided to pursue a value proposition focused on low cost and portability In terms of operating model, GE has made significant adjustments to the R & D department and sales and service team to rapidly develop and launch a portable product The product, which initially sold for $30000 (now down to $15000), has been a success in the market GE's sales in China have grown significantly In addition, Ge also found that this new product makes ultrasonic products widely used in developed markets For developed markets, GE's previous products were either too large or too expensive As of 2008, portable ultrasound equipment has generated nearly $300 million in revenue for GE GE has achieved similar "two-way" benefits not only in other medical product lines, but also in other businesses such as aircraft engines Jeff Immelt, GE's chairman and chief executive, called the phenomenon "reverse innovation." Not all innovative enterprises adopting low-cost business model come from developed markets Asustek Computer Company of Taiwan takes the lead in exploring the low-cost market of netbooks and providing profitable products based on Linux The price of the product is only slightly higher than the price of one laptop per child (OLPC), a non-profit project Eeepc was named the most wanted Christmas gift of 2007 on amazon.com Tata Motors in India sees a lot of untapped opportunities from families who need mechanized transportation but can't afford traditional cars Tata has revisited the business model of the automotive industry to design, produce and deliver a $2500 car Of course, Tata removes a lot of decoration and provides only a limited function But more importantly, Tata relies on the support of its suppliers to a large extent by using an open development model Like GE, Tata sees the opportunity to bring this innovation to developed markets Tata has announced a model called nano Europa The model will meet all regulatory standards in Europe and is likely to be available in 2012 for less than $10000 When it comes to low cost, traditional enterprises tend to fall into two traps: negative trap and innovation trap We all know the negative trap Business leaders underestimate the impact of low-cost models on their businesses In their view, low-cost alternatives are not their real competitors They assume, of course, that customers attach great importance to their services and brands and will not choose other products and services When they start to see customers switch to low-cost competitors,