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4. 3. 1 To occupy rural markets21
4. 3. 2 To determine rational orientation 21
4. 3. 3 To enrich product structure 22
4. 3. 4 To increase sales channels 22
4. 3. 5 To improve insufficient promotion 23
4. 3. 6 To strengthen safety control 23
Chapter Five Conclusion 25
5. 1 Major findings and implications of the study 25
5. 2 Limitations of the research 25
References26
Appendix Interview 27
Appendix Questionnaire 29
Development Strategies of Dairy Enterprises--Case Study of VV Group
Chapter One Introduction
1. 1 General Statement
1. 1. 1 Current circumstances of dairy industry
Dairy products are made under the conditions required by the laws and standard regulations. Its main raw materials are milk or goat milk and its processed products, auxiliary materials are right amount of vitamins, minerals and so on. Dairy products consist of liquid milk, pasteurized milk, sterilized milk, milk, fermented milk modulation), powder (whole milk powder, dried skim milk, dried skim milk powder, modulation, cattle early powder) and some other dairy products.
There are many local dairy process factories over different regions in China, for instance, Mengniu, Yiliand and Guangming. These factories play an important role in satisfying local as well as national dairy needs. Among these local dairy process factories, the VV Group is a typical one. VV, developed from a small state-owned rice mill, was set up in 1992 in Xuzhou. After ten years of development, VV group has become a large trans-regional and cross-industry enterprise group with more than 20000 employees and 3.16 billion yuan in total assets. Its main product “soy” is one of the best-selling products and occupies more than 85% of domestic market share. However, as the integration of the dairy industry, local dairy processing enterprises are now faced with survival difficulties, backward management and so on. Most of the factories are trying to figure out how to survive and develop well in the fierce competition.
1. 1. 2 General development strategies of VV Group
To develop well in the changing market environment, VV Group, with the aid of the brand and the advantages of the capital, formulates its overall goals as: stand still in food field, base itself on product management, take advantage of brand, vigorously develop the capital management, accelerate the development of scientific research, strengthen the marketing network construction and create international brand. The development strategies of VV are to build a famous brand, to make strategic expansion and to establish a good image. The current strategies are made according to actual operation situation and all turn out to be effective to its development. Each of the strategies will be discussed in detail along with their implication.
First, to build a famous brand.
Brand competition is particularly important in the highly homogenized dairy industry. VV insists that brand advantage should be fundamental in competition and create a huge kingdom and its unique brands. VV is the abbreviation of "Weiwei" and the first "V" refers to vitamin while the second "V" represents victory.
VV soy milk soon attracted consumers for its excellent quality and affordable price after being launched into the market. The slogan "VV soy milk, happy and joy” and "good nutrition, good health" became widely spread, and VV became synonymous of soy milk.