Four strokes to identify the potential market

Being one of the first to enter the potential market is one of the means for companies to maintain vitality, increase profits, and win competition. The company has thus achieved leaps and bounds. How to correctly predict and evaluate the potential of an emerging market and select a “good” market is obviously an important capability of the company. We can't always be like Wahaha. Wait until the market potential has become apparent before entering. The vast majority of companies do not have so much channel power. So, how to judge a product's market potential is not big before the market potential is fully expressed, is it suitable for a brand?

When there are standards for measurement, decision-making can be justified. Based on years of market observations, we can test the market potential mainly from the four criteria of market size, brand concentration, upstream raw material support and innovation activity.

Standard One: Market Size.

The larger the market size, the greater the space for brand survival and development, and the easier it is for companies to earn a place. At the same time, the more popular fast-food products, the more suitable for large-scale standardized production of the category, the more suitable for branding.

Beverages, edible oils and other industries have long been the competition for major food brands. Eggs have created a number of egg brands such as Deqingyuan, Caoqi, Lizige, 100-year-old Liyuan, etc., because of its huge consumption and consumption. With relatively small amount of pickled products, brands appear late, and brand building is also difficult.

What needs to be emphasized is that the market size here does not refer to the existing scale, but refers to the scale that new products can occupy other alternative products in the future consumer market. Most of the new products are quite substitutes for old products that are not the same kind of products. For example, the introduction of low-concentration juices will surely squeeze some of the sales of other drinks such as Coke and water. The success of the nutrition fast line lies in its replacement. A large part of breakfast food.

Standard 2: brand concentration.

The degree of brand concentration is a measure of market maturity and market competition. The higher the degree of brand concentration and the more stable the industry structure, the more difficult it is to build a new brand. The development of the food industry to date, in addition to a few categories such as fresh, no brand blank area has been left. Do not be afraid of the market to do more than the brand, the key to see if there is a leading brand, if the market share of the brand is small, very scattered, the opportunity for the later more.

The small-packaged edible oil market has formed a strong brand lineup represented by Arowana, Fulinmen, Luhua, Duoli, and Hu Jihua after ample market competition, and the pattern is super stable. The market share of the first Golden Dragon Fish exceeds the second The sum to the tenth place. Therefore, although the small packaging edible oil market is huge, it is no longer a potential brand market. Although China's tea has a brand, most consumers are still only well-known tea, and they do not know the company brand, although there are Zhang Yiyuan, Wu Yutai and other old brands. As well as brands such as Zhu Yeqing, Deyu Live Tea, Dayi, and Meipai, but relative to the entire tea market, branded products are far from enough, and new brands have more room for development.

Criterion 3: Support of the upstream of the industrial chain such as raw materials.

Successful food brands must be able to form large-scale production and influential sales. If the upstream output-side production scale, fresh-keeping storage and transportation technologies cannot be adequately supported, a production line can only produce enough for three months because of the shortage of raw materials. Sales are very good. Only one season can be sold. This kind of company and brand can't do anything unless it is focused on luxury goods.

Seabuckthorn is a good thing, the king of Victoria C, but the natural production is too low, artificial scale planting is not enough, so this category is always doing little; milk shortage has finally become the rapid development of China's dairy industry brake valve for the dairy industry Deeply hit; Zhongjing mushroom sauce has production base support, relying on the traditional Xixiang village of Xixiang, annual output of 1 billion production value of the mushroom sauce food garden is under construction.

Standard 4: The degree of activity in technological innovation and marketing innovation.

The degree of innovation activity refers to the frequency and quantity of new products introduced in the product category market. In industries with a high degree of innovation and activity, new products emerge in an endless stream, and there is a high degree of concern among competing brands to quickly follow up. Its product innovation makes it more difficult to make differences, and the investment needed for marketing breakthroughs is even higher. Every year, the beverage industry has a new product war, but many products have come and gone, indicating that the success of this market is very difficult.

In a sector where technology and marketing innovation activity is low, a minor change can attract consumers' attention. In fact, many food category markets appear to be mature. In fact, they are old-fashioned, cling to tradition, innovate and innovate, and consumer satisfaction is not. Gao, there will be more opportunities in these categories.

For example, honey, cooked food and other industries, seemingly many old brands, old brands, in fact, products and marketing have long been aging, South Korea's honey grapefruit tea can quickly get hot? Because it was infused with sweet and sour honey products in the purest sweet honey product; Why did the monkey's dried bean curd? The small package allows the dried bean curd to turn into a snack food, making the dried bean curd easy to fashion.

The above four standards are the basic measure of the market potential of general food brands. In the face of a constantly changing market environment, enterprises must also make comprehensive considerations based on their own circumstances and correctly select breakthrough points to achieve market victory.