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Home > Solutions > Value Chain Development for Smallholders
July 9, 2024    

Strategic Traffic and Marketing Initiatives Help Small Dairy Company Become Recognised Brand

Story; Value Chain Development for Smallholders; E-commerce; Dairy Industry; Small Enterprise

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Sun Shijun was born in 1985 in a remote village in Zhejiang, a coastal province in eastern China. His parents worked outside of the area year-round, which resulted in him living with extended family and developing skills that have proven useful throughout the course of the entrepreneurial journey that he has engaged in as an adult: adept communication, interpersonal finesse, effective organisation, and the capacity to navigate challenging and unfamiliar environments with confidence.

Sun graduated from a university renowned for its prowess in industry and commerce in 2007 and began working at a prestigious dairy company soon after. He performed exceptionally well, which led to him being promoted to marketing director in 2012 and receiving a salary of RMB200,000 a year. His salary increased to RMB300,000 in 2014 after he received a raise, but he then started to worry that he couldn't catch up with the process of knowledge updating and the requirement of ability improvement, so he began to think about changing his career trajectory.

Sun eventually encountered a former realtor-turned dairy magnate named Xu Xiaobo who owned a sprawling farm featuring a substantial herd of 10,560 head of high-quality, purebred Australian cattle strategically located near four major Chinese cities – Beijing, Jinan, Shijiazhuang and Zhengzhou – during a routine purchasing assignment. Sun sensed the potential for promising collaboration with him due to the considerable influence, financial resources, and industry connections that Xu possessed as well as the support that he enjoyed from an influential author and business journalist with over 4.7 million followers on social media platforms and thought they would pair well with his own extensive marketing expertise and client network. Recognising the burgeoning trend of demand for authentic, novel brands that exists among many younger consumers, Sun envisioned a branded dairy enterprise committed to delivering safe, high-quality farm-to-table products leveraging the power of e-commerce, which would be a marked departure from the predominant focus on offline channels that exists among existing dairy players in China.

The two discussed the concept together and ultimately reached an agreement in 2016 that resulted in them launching what became known as Hangzhou Adopt A Cow Dairy Co. Ltd. together.

In 2017, Adopt A Cow advertised its brand across 100 subscription accounts with a total of over 200 million followers on the WeChat social media platform.

The influence of WeChat subscription accounts eventually began to decline, however; and new promotional approaches involving live commerce, online influencers, and short videos began to gain momentum around 2019. Adopt A Cow embraced the trends, came up with catchy slogans that conveyed innovative and memorable concepts, and began collaborating with leading influencers and live-streamers, which had a significant impact with regard to both exposure and sales.

Adopt A Cow also strategically aligns itself with other brands and usage scenarios in order to expand consumers' understanding of the brand. For instance, it embarked on a collaboration with a flower brand designed to delve into the concept of the "good life" sought after by young women, unveiling a range of innovative milk products. Emphasis on related products has been another pivotal factor that has contributed to its soaring sales growth. The company astutely positions its products in cake shops, bakeries, fruit stores, and similar venues where consumers often purchase dairy products to complement bakery items.

A vital weapon in Adopt A Cow's brand communication arsenal, experiential marketing enables it to develop loyal customers, expand to new markets, and reach out to potential ones. It crafts innovative, culturally enriched, and client-oriented user experiences in order to enhance customer satisfaction, thereby fostering a higher propensity for repeat purchases and encouraging positive word-of-mouth.

Ranch tours offered by the company are the highlight of its experiential marketing efforts. Member families are invited to visit Adopt a Cow's primary farm every year once they have been members for three consecutive years, with round-trip transportation and accommodation being fully covered by the company. Customers can examine the cows’ living conditions, the feeding process, and milk processing procedures and gain first-hand insight into the entire production process from forage processing and milking to filling and packing, during their stay. They also have the opportunity to engage in activities themselves, such as fodder harvesting, feeding, and milking, which enhances their connection to the brand and deepens their appreciation for its products.

Members can also make yogurt, cheese, ice cream, bread, and other milk-related products at Adopt A Cow facilities as well as handicrafts such as soaps, shower gel, and candles. The items make excellent gifts for friends and family, and members can even design their own packaging. Adopt A Cow also records short videos of the process and gives them to participants, which they often eagerly share on various social media platforms, thereby strengthening the brand and spreading awareness of it.

As its name implies, the company enables its members to adopt a cow through a mobile app that facilitates the tracking of cows' journeys, including feeding, growth, and milking, and receive fresh milk delivered to their homes up to twice a week promptly after it is packaged.

Many problems and dangers lurk behind the rapid development that Adopt a Cow has experienced, however. The company focuses on sourcing and marketing, for example, and lacks its own large-scale factories, relying instead on outsourcing to various companies. This model has led to fluctuations in flavour and quality, resulting in customer complaints.

The sustainability of Adopt a Cow's marketing strategy also has the potential to be a critical issue. Short videos are easily disseminated but often have a short-term horizon, so the company may need to rely on them less and explore other marketing methods more in order to ensure its long-term success going forward. Several problems related to the adoption model itself also exist. Freshness can sometimes be an issue since the milk from adopted cows is processed elsewhere prior to being delivered to customers' homes. Some customers have also received milk labelled with production dates that are in the future, indicating logistical issues. Adopt A Cow also enables its premium members to name its cows, but the service could be threatened if the number of members surpasses the number of cows that are available for adoption.

Source:

AliResearch

Administration and Management Institute (AMI) of China's Ministry of Agriculture and Rural Affairs (MARA)

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