Lifan to return from the attack

Source:

text / Bai Renchun

1992, the 55-year-old The company started with only 9 employees, 20 million of funds and lack of core technology. Yin Construction Group Maintenance Department to purchase the engine parts, their assembly into a machine the way the sale started, and by imitating the design alternatives and quickly took to the road of independent development. More than ten years later, Chongqing Lifan motorcycle has long been beyond into the boss, and once China's motorcycle enterprises. In 2004, Lifan motorcycle industry ranked third, and among the top 500 list. In recent years, with the motorcycle industry has become increasingly fierce competition, industry profits are growing thin. And many private businesses, Lifan began their road to diversification has involved a lot of hot industries. Lifan careful analysis of the diversification in recent years have traveled the road, although the benefits of Lifan, but it is more experience and lessons learned.

alcohol tobacco
Misunderstanding of brand extension


2001, the Lifan Group, to be formally involved in brand extension of the liquor industry. Company first winery in Sichuan Yibin OEM Lifan Red wine, followed by merger of the Golden Buddha Rongchang Chongqing Brewery spring, re-registered Not only brewing liquor, Lifan is also involved in red wine market trend: Lifan to replacement of trade, with the motor for wine in Argentina, and then paste the

Lifan head off into the wine jar, the road seems to go right. Lifan liquor market for three months, profits have exceeded 10 million yuan. But the happy times did not last long,Coach Handbags, because of the high liquor taxes, combined with completely unfamiliar to the alcohol market and other factors, Lifan liquor last year basically no reproduction.

brand extension is often used corporate diversification strategy. But a closer look we can find, Lifan brand extension into a misunderstanding. The main effect of brand extension strategy is through an association, the advantages of migration to the core brand extension products, with the halo of light extending the core brand products, with strong core brands to new products to gain market recognition and identity soon. However, a packet of brand extension is not a panacea for the market. According to experts Chernatony of well-known brand, brand extension success depends primarily on two aspects: First, the core consumer brand awareness; the second is an extension of the core brand and brand association. Consumer awareness of core brands mainly into two categories: functional and psychological benefits of interests. Any brand is the functional and psychological benefits consisting of two properties, that brand has a duality, the duality constitutes a combination of different proportions between the core brand. The brand's functional and psychological composition according to the level of standards, will form a matrix that Chernatony-Mc William matrix (referred to as the C-M matrix). C-M matrix can reflect on consumer brand awareness in the duality.

C-M matrix of the brand is divided into four categories, divided into four quadrants of the matrix: (1) high-performance - high performance type of brand. Both of these brands in the minds of consumers with high value, but also a perfect tool for self-expression, such as Rolls-Royce, Oxford; (2) high function - Low performance-based brand. Such brands have high value, but the lack of symbolic meaning, consumers buy these products is to obtain the use of functional rather than to the pursuit of value embodied or psychological satisfaction, such as TCL, Haier, etc.; (3) Low function - - High performance type brand. Main value of these brands have a very strong performance in its significance and symbolic meaning, can give consumers a great psychological satisfaction, such as Louis XIII, Rolex, etc.; (4) Low function - Low performance-based brand. These brands are both in the psychological value or use value both black and white, mainly some daily necessities such as food, washing powder and so on.

above four brand recognition is the core brand strengths of existing resources, these resources limit the ability of brand extension and the boundary, can determine the reach of brand extension. Only extension products to match those resources, the basic effect of brand extension is possible to play. The success of brand extension is a key factor in the second extension product and the core brand association. This correlation can be tangible (also known as continuous) or intangible (intermittent). The former include the transferability of skills or resources of the extension; complementary and alternative extension of three types of extension, which is mainly based on the value or quality of carried out similar extension.

comprehensive understanding of core brands and core brands and brand extensions associated with two aspects of Mr. Zhou Zhimin Chinese scholars put forward a range of brand extension (see Figure 2).

brand extension of the scope of this map can be drawn from different core brand extension of its proper orientation. (1) high-performance - high performance type Brand: both can be intermittently continuous extension of an extension. Such brands have obvious advantages in technology, to give consumers high value, and thus adapted to the technical, extension of complementary and alternative, while the high performance characteristics of the brand to consumers but also to psychological or emotional satisfaction , which can rely on the value of the advantages of this invisible extension. (2) high-functioning - low phenotype Brand: should be a continuous extension, and should not be interrupted extension. The advantage of these brands with advanced process technology, can provide high value. For example, the Panasonic can be successfully extended to various types of household electrical appliances, but not into the high-end watch or a luxury perfume and other performance products. (3) Low function - high performance type Brand: extension should be interrupted, not continuous extension (alternative extension excluded). Such brands have a good sense of symbolic meaning and value, can satisfy the psychological needs of consumers, which is an extension of the advantages of its resources. If an extension to the functional product, often difficult to succeed, because consumers do not identify with their functional properties. (4) low functioning - low phenotype Brand: comparison is more suitable for a continuous extension. The performance of these brands is weak, can not meet the psychological needs of consumers, but to meet the basic physiological needs (this is such a brand can survive the reasons), so functionality is relatively better than the performance of. Because of its functionality is not strong, it is not appropriate use of technology similar extension for the appropriate use of complementary and alternative extension.

careful analysis of the Lifan brand extension into the liquor market strategy can be found in clear violation of the basic principles of brand extension. Lifan motorcycles and wine are not related in these three areas, Lifan brand in the motorcycle industry is difficult to reach Lifan alcohol effects. Lifan Group, Lifan's brand with the expected effect to illuminate their own alcohol, and therefore did not take great efforts to marketing. Furthermore, the Lifan wine, whether red or white wine, not their production, liquor is brandable, red wine in exchange for more motorcycle, and then paste Lifan's brand,Burberry Outlet, people vaguely feel that this approach Qin was the famous shadow group pool. Qin pool of small breweries in Sichuan through the acquisition of bulk wine to be blended, Lifan motorcycles altogether for OEM or exchange; Qin pool marked by competing with the king to the rapid price increase awareness, Lifan motorcycle industry with the brand name paving the way for the wine products trademark. The difference between the two is: the king of Qin pool because the price marked the time being were moving the world, exit is also the uproar, the price is very heavy; Lifan because the core brand and influence, also appears to exit quietly, in addition to its announced withdrawal Lifan Group, the industry did not cause much reaction.

and Lifan Lifan wine is very similar to smoke. Poured into the wine market at the same time,Louis Vuitton Monogram Vernis, Lifan is also involved in the cigarette industry. Lifan trademarks and registered overseas by the company, and other tobacco companies in China for OEM production capacity, roundabout into the state monopoly of the tobacco industry, but are not really the end of 2004 Lifan sell a pack of cigarettes.

Chongqing International Auto Industry Exhibition in 2005, the Lifan Lifan announced officially withdraw from the boss Yin Mingshan tobacco industry.

air conditioning

doing things low-key, or a lack of confidence?

just get rid of wine jar, Lifan also made air conditioning. According to sources Lifan Group Investments, Bulgaria, Lifan has established a company in the local co-operation of the Recognition of a member of the Board of Lifan, Bulgaria Air Conditioning project has been launched, but would like a low-key treatment, because the main business is the Lifan motorcycles and cars. The source said, Lifan from overseas into the air conditioning industry, the manufacturing base on Bulgaria, the aim is to competitive air conditioner market in the EU. Allegedly sold in the EU a single air-conditioning, high-priced than the domestic market of about 1,000 yuan, profits are quite attractive; In addition, the EU demand for air conditioning. Bulgarian domestic demand is only tens of thousands of air-conditioning units, air-conditioning needs of the EU countries

Lifan tobacco market from the failure of some lessons learned, and this time the areas of diversification is no longer a core business has nothing to do with the market. The choice of air conditioning industry, and motorcycles are both mechanical products, more importantly, air conditioning and motorcycles have in common technically. But it is hard on the air conditioning project optimism. First, many companies believe that a large-scale access to fail, the loss of the larger, so willing to use for small-scale attempts to enter. But in this case, the companies can not get economies of scale and build long-term foothold in the market. Air-conditioning products are obvious economies of scale, there is no economies of scale, costs will suffer. Meanwhile, in Bulgaria in the EU cost of human resources and the environment I'm afraid the cost is much higher than domestic, even if the European Union,Tiffany and Co Outlet Online, such as air conditioning Lifan alleged price higher than the domestic market of about 1,000 yuan, above factors, whether as a Lifan the expected real profits unknown. Second,Louis Vuitton Handbags, the EU said air conditioner market really as Lifan as In 2003, France had suffered a case of high temperatures for several decades, many people to the mall to buy air-conditioning did not find what products are selling. What does this mean, as the EU's main members of the French people simply do not use air conditioning is too strong tradition, and even shopping malls are not stocking. As Lifan said, Bulgaria and other Eastern European countries, air-conditioning market is very small, and northern Europe and other countries close to the Arctic Circle, the use of air conditioning may be smaller, as Britain, France, Germany and other countries, there is no extensive use of air conditioning habits. Thus, the EU is far from Lifan air conditioner market down as optimistic. Finally, and most important, taking into account the Lifan as tobacco and alcohol in the market and when the high-profile football industry, and in the air-conditioning is unusually low profile and even secretive, except to say, Lifan air-conditioning market to the EU itself does not have enough confidence.

Football

a loss may not make crying
Football is the Lifan Group

diversification an important area involved. Lifan Group in August 2000 to 55.8 million yuan in Chongqing Qianweihuandao acquisition and re-established football club stock Lifan Football Club, officially entered the soccer market.

we all know, in recent years and in the future can be expected for some time, Chinese football is a money-burning program, the club is hard to self-financing, business investment was more 赔本赚吆喝 football. As a private enterprise, Lifan Group, hold high the banner of Western football, excluding gains and losses to maintain the development of football in Western, and its admirable sense of social responsibility. However, I believe that football in the business aspects of Lifan some specific strategies or ideas worth discussing.

former Italian football club Inter Milan President Massimo Moratti involved in football in ten years, has invested over one billion U.S. dollars of funds but because the club was forced to resign after the poor performance said a word with deep feeling: do Football is not doing charity, not a lot of money you will get fans into the appreciation and recognition. Losing money is not terrible, the question is whether the market earned recognition (crying), which focuses on results and depending on the club football in the country (currently not talk about in the world) influence. Lifan Football Club have had good results. But then a few years back because of the team's lack of personnel development, etc., resulting in deteriorating performance in recent years, Lifan Football: In 2003, Lifan football team because of poor performance degradation. When the end of the year, Lifan Group had invested 38 million yuan acquisition of the Super League football club Yunnan Hongta qualify. Super 2004, the first year, the integration of the two Yunnan Hongta and Lifan Lifan Football Club soccer team scores a new elite is not the slightest improvement in levels of 4 wins and 9 losses plot 9 out of 21 points the last 12 Super League teams, and ultimately by significant increases instead of falling in east China was able to remain in the top league. First half of 2005, Lifan record remains poor, 9 consecutive victorious games, with the second half of 2004, 13 games victorious, China has created numerous top league for 22 games In addition to poor performance, the club talents to the Chinese national team at all levels have also looked very pale. The overall environment of the poor football, the team bad results,USA Louis Vuitton, and no appeal of the players in the market very naturally greatly affected the operations and market image of the team. Course attendance is not high, the club poor market development, the team and the club where the businesses will naturally be difficult to be people from the football too much attention. March 2, 2004, Chongqing Lifan Group, invested 25.8 million yuan, the official title Lifan Football Club shirt naming rights and advertising have to Lifan Group buy! Lifan people with the words - which marks the Lifan will continue to fly the flag in the Super League, Super Cup, FA Cup on the race track, show Lifan Lifan Group, a century to build the determination and confidence. I believe that is the weak market development Lifan Football Club, the team naming rights and advertising do not sell jerseys only have to pay using this left hand right hand of the game is more appropriate.



back to basics
Lu Maite

American scholar published in 1974 The book world, many large enterprises in the 20 years follow-up investigation of diversification based on the results obtained an important conclusion: Stick to diversified business activities strictly limited to the center of their own skills or competence of the enterprise, its profitability and growth rates are higher than other types of enterprises. After 80 years of the 20th century, European and Japanese companies in the flank, the U.S. companies losing ground in many areas, causing the U.S. business and academic reflection, which also includes a wide range of reflection.

Americans reflect on the Chinese people, too. Executive Vice Mayor of Chongqing Huang Qifan said: Chongqing motorcycle almost all enterprises (including Lifan Group) have opened a small difference, get involved in real estate, air conditioning and many other industries, diversification is bound to affect the main industry. The results of small scale enterprises in Chongqing Mount, the strength decreased, increasingly slim profit margins.

is indeed the case. Lifan diversified in recent years, a great impact on its core business. The beginning of the new century, Lifan motorcycle was leading enterprises in China in 2004, Lifan motorcycle production and sales retreated to third in the country in 2005 is down to the tenth, to April 2005 as an example: production of 206,351 Lifan motorcycles vehicles, compared with the previous year decreased by 39.35% over the same period, the third from the previous year dropped to the tenth national. The face of all this, people are Lifan Reflection: the tobacco market to do unreasonable, air conditioning was not sure, football is a bottomless pit, Lifan began to move closer to their own areas of expertise. Guangdong and Guangxi in the dealer meeting this year, Lifan officially this year as the First half of 2005, Lifan determined to give up alcohol and tobacco industries, to focus on their main business - Auto industry, long-awaited formal launch of the car

attack from all sides to withdraw from alcohol and tobacco market and focus on core skills related to automobile and motorcycle products, indicating that the Lifan Group has a better understanding of diversification; The air conditioner market in the EU try to investment, I believe that as decisive retreat to more focus on core products; the football market, Lifan hold high the banner of the western spirit of football and social responsibility should be affirmed, but the Lifan should focus on the future, in echelon personnel, infrastructure construction and other aspects of efforts in improving the ball team performance, training superstars such as multiple talents for the national team to strengthen the club on the basis of market development, and strive for the club to become self-reliant, the Group also gain more from market image or influence other aspects of harvest.