Looking at the trend of dairy industry from the new layout of Mengniu

Image result for zuo yogurt

On March 27, Mengniu announced its 2017 results announcement, and the industry was stunned.

The annual operating income reached 60.156 billion yuan, a year-on-year increase of 11.9%, exceeding the industry average growth rate, and a net profit of 2.048 billion yuan. The new leadership team headed by CEO Lu Minfang has attracted attention from the industry and has received attention. There are also new Mengniu products placed next to its brand name. All these reflect some extent, Mengniu's ideas and insights in product development: Differentiated dairy products will become the main driving force for the company's continued improvement in profitability. 

In fact, since 2018, Mengniu has continued to work on product innovation: the launch of the “ZUO Yogurt” with three flavors of bitter, sweet and salty, the release of Chun Zhen ready-to-drink bottled yogurt, and the launch of new slow-burning fiber milkshake milk products. Enter the micro business community...

Responsible for consumption upgrade and lead the reform of dairy industry structure

As Mengniu pointed out in its annual report, the domestic consumer confidence index rebounded, and the per capita disposable income of the country’s residents continued to increase, stimulating consumer demand and promoting the upgrading of the consumption structure, which had a positive impact on the domestic dairy industry. In other words, China's dairy industry has entered a stage of big consumption and big dividends, and consumers have been forced to change their industries. Mengniu, as a leader in the dairy industry, has focused on the structural layout of its products and has led the industry to upgrade.

According to the annual report data, the full-line growth of high-end products has become the main force supporting Mengniu’s 2017 business growth. Taking the normal temperature category as an example, in 2017, the growth rate of pure Just Yoghurt was as high as 27%, that of Fruit Milk Drink as high as 25%, and that of Milk Deluxe as high as 11%, which led to a growth more than expected.

With the increase of the newly emerging middle class and a new generation of consumer groups and the aging of the population, consumers are pursuing healthy and green lifestyles and tend to purchase high-end, healthy and fresh products, which will lead to further diversification of market product structure. In the process of market competition, the structured layout of corporate products is even more important. Different types of consumers have different requirements for upgrading. Only by continuously satisfying the needs of consumers can we establish a sustainable market.

In order to comply with the escalation trend of consumption, Mengniu has long been in the layout. In 2017, Mengniu introduced Lumin Fang, the first strategic new product since he took office— Milk Deluxe style yogurt. At the same time, Mengniu's high-end yogurt brand, Champion Milk, is the only brand with the “Jianzihao” Regulation No. in the market so far. In 2017, it also launched two new products: Xiao Lan Mao Champion Milk and Mailaoru  Champion Milk. Opened a new era of functional yogurt. The new products soon received good market feedback and became an important support for the steadily increasing Mengniu's performance.

Innovation is not limited to this. On the day of the Distributor Customer Conference in 2018, Mengniu announced that its four business divisions in 2018 plan to launch more than 70 new products. The Milk Deluxe room temperature yogurt with the world's first high-quality glass bottle, Just Yoghurt PET drinking yogurt, and Bio meal yogurt are on display. Let the partners who tasted in advance praise profusely.

Milk Deluxe used to rely on "not all milk is called Milk Deluxe" high-end pure milk positioning to become famous,   also Mengniu's only super single product sales of 10 billion. With the influence of the brand name of Milk Deluxe, the gradual expansion of normal-temperature yogurt, high-end organic milk, and other categories with brands and categories is the focus of Mengniu’s differentiation strategy.

At the opening of the year, Mengniu launched a new pure light buttermilk flavor yogurt, which is a new type of ready-to-drink bottled yogurt, using different streamlined bottle design, consumers easy to open the lid and enjoy, great upgrade of portability. In addition to ingenious packaging, this light buttermilk new product is the first to create a new light buttermilk flavor for the pure yogurt light-release fermentation technology, making the product lighter,  refreshing, and natural. In the rhythm of modern life, portable fast food products have become the favorite diet for white-collar workers. At the same time, this group of people pays more attention to healthy diet and nutritional balance. Pure light buttermilk flavor yogurt taste light but not greasy, the product is rich in nutrients, open the lid for drinking is more portable, can hit the crowd of consumer’s pain points. It is understood that since February 2018, Just Yoghurt light buttermilk has been listed first in ten major regions including Anhui, Henan, Central China, Jiangsu, Tianjin, Shanghai, Guangdong, Zhejiang, Sichuan, Tibet, Chengdu, Shanxi, Menggu and Xi An. And with the unique product charm, successfully captured the majority of consumers.

Lock in the new generation and become the milk company that knows the youngest

Mengniu Group CEO Lu Minfang once said that Mengniu is deeply aware of the fact that innovation is the primary driving force for development. Compared with 70 and 80, the demand for personalization of consumer groups after 90 and 00 is more prominent. In order to meet the consumer needs of different groups, Mengniu has been relentless to innovate.

In January of this year, position the consumer after the 00, “ZUO” known as the“understands youngest most yogurt”. Mengniu ZUO yogurt attracts people's attention the most, no more than it claims to be China's first strange taste of yogurt, in an attempt to bring new tastes to "subvert the taste of the traditional views". There are hot red Ginger jujube flavors that represent the friendship, love bitter with black chocolate flavors and eyes drop salt with sea salt caramel flavors.

According to reports, ZUO yogurt will be firmly positioned for young people before its listing. According to the results of market research conducted in major cities such as Beijing and Shanghai, Mengniu ZUO Yogurt pioneered Bitter Spicy Salty as new product tastes, carefully fermented with imported Danish strains of raw cow milk, and served with carefully selected raw materials, 100 % raw milk fermentation, unique formula, and production process to ensure a more evenly, slippery, smooth and nutritious.

Not only is the product's positioning and mouthfeel novel and unique, ZUO yogurt packaging is also special, it is the world's top ten teams to carry out packaging design, use a unique second element design style, with which not only drink, you can also take pictures, print show off. Bold tastes, novelty attempts, and the most tidal experiences fully meet the social experiences of the young people who pursued their personalities and enjoyed sharing.

Since then, the slow-burning fiber milkshake milk marketed for female consumers has hit the market for healthy, fat-reducing products and has successfully captured the attention of consumers. In the 12th Inner Mongolia Dairy Expo, Slow Burning won the "Best Weight Management Milk Innovation Product Award". As the most important dairy industry summit in China, this fiber milkshake milk selected for the public must have its existing value. Mengniu's slow-burning fiber milkshake milk is positioned to provide consumers with a light and stylish "styled" life. Based on high-quality milk and grain granules, add CLA glycerides, resistant dextrins (dietary fiber) and various vitamins. Blueberry taste, silky taste, a strong sense of fullness. The calories per package are 195 kcal, which is about 1/3 of a meal. Power new retail, embracing change with innovation.

It can be said that since its establishment in 1999, Mengniu's innovative genes have gone deep into the bone marrow. Facing the changes in channels and marketing environment, Mengniu is an attitude of open acceptance and positive innovation.

According to the person in charge of Mengniu's e-commerce department, Mengniu's completely new online and offline products are about 10 SKUs on the e-commerce platform in 2017, and more are e-commerce's own innovative SKUs, such as new specifications or new tastes. However, in 2018, about 30 new SKUs will be released for online and offline integration.

For example, to incubate some exclusive products that meet the habits of online purchasers, especially for the purchase habits of the post-90s and the post-00s, to create products that are completely owned by e-commerce. For example, Mengniu’s newly launched Future Star Children’s Organic Milk uses special products. Milk Deluxe source. In addition, we collaborated with new retail platforms such as JD.com and Tmall to combine big data, analyze the crowds, and create user portraits. We have targeted product development and planning activities.

Mengniu's slow-burning fiber milkshake milk is a new retail product. It entered the people's field of vision with a new retail approach and entered the micro-business area. It will reconstruct the relationship between traditional enterprises and the Internet and consumer relations. These are all Mengniu’s positive attempts.

China's first Tetrapak Pure Milk, China's first high-end milk brand, Milk Deluxe, China's first professional children's milk brand Future Star, the world's first authentic fruit drink containing real fruit, China's first national authenticated "JIANZIHAO" yogurt product Champion Milk, China's first two-dimensional code traceable to milk selected ranch, and the industry's first Internet milk Tianxiaohai based on big data research ... Behind these countless Chinese First and the global initiatives, it reflects Mengniu’s innovation and R&D strength and the aggressiveness of actively embracing change.

Mengniu has stated publicly that it is necessary to achieve the "double-billion target" by 2020, that is, sales will reach 100 billion yuan and the market value will reach 100 billion yuan. If you say that 2017 is the foundation for laying a foundation, 2018 is a crucial year for Mengniu to achieve the goal of “double-billion”. It is the persistence and exploration of consumer insights and product innovation that Mengniu has the ambition and self-confidence to build a “world-class Chinese brand”, and more innovations are being extended at the foot of Mengniu.