OPPO, vivo and Six Walnuts were able to successfully counterattack thanks to this marketing model

1. Why do we need to do in-depth marketing ?

1. The origin of the deep marketing model

As early as seventeen or eighteen years ago, Teacher Bao Zheng took us for consultation. At that time, he was working as a consultant for TCL and proposed a regional rolling marketing strategy called the ARS strategy (Area Roller Sales), which is a regional rolling strategy. It is to first cultivate one place intensively, concentrate resources to make breakthroughs, and then carry out rolling replication, and then connect the points into lines, and connect the lines into surfaces, and gradually gain a competitive advantage in the market. This is a tactical strategy, which later gradually extended to become a marketing strategic idea and an effective marketing model. This model has been marketed in China for nearly 20 years, and any company that does it well has basically no rivals. I remember that Teacher Bao once told me: If you master the deep marketing model, you will have no problem working in the consulting industry for 5 to 10 years. But now 15 years have passed, and I estimate that I can still get another 5 to 10 years.

Why is the deep marketing model more successful in China? Whether in the field of fast-moving consumer goods, consumer electronics such as mobile phones, or industrial products markets such as agricultural supplies, medicines and equipment, and construction machinery, the concepts and strategies of deep marketing are very effective models and means. So, what are the principles, concepts, strategies and methods of deep marketing?

2. Six core ideas emphasized by deep marketing

First, emphasize the intensive cultivation and continuous development of regional markets. First, concentrate superior forces to establish a base, and gain an advantage of more than 1.732 times in this market (simplified to gain an advantage of 1.8 times). The law implied here is called the "Lancaster Law". The "Lancaster Law" points out that when you have a competitive advantage of 1.8 times that of your opponent, your probability of success and winning is the highest; when you reach a competitive advantage of 3 to 4 times, the competitive pressure and competitive losses are the lowest. Simply put, it is to concentrate superior forces.

Second, emphasize win-win for channels , channels are king, and victory is determined at the terminal. First, we work closely together with channels to effectively support, help and serve dealers, so that they can cultivate terminals in regional markets in accordance with the basic requirements and intentions of manufacturers. Allow the terminal to be effectively opened and well controlled, so that the terminal can mainly and exclusively promote our products.

Third, emphasize the operation of the terminal. Deep marketing places great emphasis on terminal operations. What is a Terminal? The final "outlet" facing customers, the interface for selling products and services to consumers and collecting money from consumers, is called the terminal. For example, when selling feed in the agricultural supply market, the breeders are the terminals; when selling mobile phones, the retail stores are the terminals (the proprietress is the key person); when marketing industrial products, the direct users are the terminals. It can be seen that the interface for effectively selling products is called the terminal. The deep marketing model places great emphasis on the effective operation of terminals and has developed a series of effective terminal development, sales assistance, maintenance and other strategic means.

Fourth, emphasize in-depth interaction with target customers and focus on precise, down-to-earth integrated marketing communications and promotions . To put it simply, it means "three parts sky and seven parts ground". So now we can see that OPPO/ vivo , China Jinjiu, etc. all emphasize ground-based promotions and consumer communication activities to drive terminal sales. Whether it is the " Six Walnuts " that has risen in recent years or the long-successful " Wanglaoji ", they are all examples in this regard.

Fifth, emphasize the effective integration and precise allocation of resources. If you want to build channels and terminals, you will definitely think about the issue of resource investment. Marketing emphasizes efficiency. Deep marketing saves money on high-profile campaigns and brand bombardment, and carries out its delivery close to the ground, close to the terminal, and close to the consumers. At the same time, it mobilizes channel resources to the greatest extent possible and mobilizes the enthusiasm of all relevant partners (including the enthusiasm of terminal owners to specialize in franchises) to achieve the effect of resource resonance and sharing.

Sixth, emphasize the system coordination of the organization and the efficient execution of the team. Everyone knows that deep marketing does not rely on money or intensive investment of resources. With neither strong brand influence nor outstanding product comparative competitive advantages, it was completely "Xiaomi plus rifle", and the assault started from the ground, so it placed extremely high demands on the team's combat effectiveness and the team's execution ability. The basic requirement is to be able to "work from the crowing of the cock to the barking of the dog - you have to get up before the cock crows, and you can't go home when the dog barks", emphasizing the team's systematic and continuous competitiveness and execution. At the same time, we must also emphasize the support of the platform. For example, a series of marketing promotions and customer interaction publicity work such as terminal distribution, terminal promotions, regional market promotions, etc. must be supported by the platform. There must be a professional planning platform, material support platform, training platform and other powerful backgrounds to support the front line to truly achieve "a theme every month, an activity every week" such a continuous effort.

In essence, deep marketing is actually a marketing method that a company has to adopt when it does not have strong brand power and strong product differentiation advantages and faces a complex multi-level market. To put it bluntly, this is a marketing method used only by losers. Even if a company has strong brand power and strong product power, many companies are unwilling to adopt a deep marketing model. For example, there is no need for in-depth marketing for Apple mobile phones because they have sufficient brand power and the products are also very good.

For example, in the early days of Huawei, during the "China Cool Alliance" era, it leveraged its product and channel resources to leverage operators ' channel resources and user resources to generate sales. When the operators' resources and channel capabilities withdrew, Huawei's products rose and gained strong product power and differentiation in smartphones that were leading in the country. Therefore, Huawei mobile phones can be ordered by consumers at the terminal and the phones can be sold through pull. But OPPO and vivo do not have this capability. It can be seen that the general deep marketing model is a model that will only be adopted by weak enterprises. Although this model can produce short-term benefits and effects, it requires a strong team's execution ability and good management and control capabilities. What you compete with is the people, not the money; what you compete with is yourself, not your father.

Precisely because there is no strong brand and product power, the deep marketing model places special emphasis on ground warfare and can only focus on terminals. If you float on the surface and engage in price wars, it will only be a prisoner's dilemma of "there is no lowest price, only lower prices", so you can only capture the terminals and consumers, and work harder than others. Six Walnuts was the result of a "loser"'s counterattack; OPPO/vivo was also the result of a "loser"'s counterattack; when Jingjiu faced off against Coconut Island Deer and Turtle Wine for the top spot in China's health wine market, it was also the result of a "loser"'s counterattack... So you see, many successful companies that adopted the deep marketing model all went through such a counterattack process from weak to strong.

In addition, the deep marketing model is particularly suitable for the national conditions of the Chinese market. First of all, China has huge urban-rural and regional differences, a dense population, and many market levels. Consumer information is relatively asymmetric, channels are relatively discrete, and no one brand can dominate the market and directly plant the "red flag" from the primary market to the third and fourth tier markets. Secondly, the population is very dense and the market integration is relatively poor, but the consumption intensity of the regional market is relatively high, so it is particularly suitable to first dominate the region and then develop in a rolling manner. Therefore, the deep marketing model is a powerful tool for small and medium-sized enterprises or weak enterprises to challenge strong enterprises.

2. The source of the power of deep marketing

How can deep marketing be effective? Where does its competitive advantage come from? What kind of inspiration can other companies gain from interpreting these success stories? Ever since I started my consulting career, I have been engaged in the innovation and practice of deep marketing. The main theme of my consulting projects is to help companies introduce the deep marketing model and effectively achieve performance growth through it. Along with the growth of performance, I develop organizations, train teams, and gradually grow from weak to strong.

First, the core point of deep marketing is to be extremely beneficial and effective.

When product strength is average and brand strength cannot be built in the short term, concentrate superior forces in a certain market first. If you can invest a lot of resources, you can start from a province; if you have fewer resources, you can start from a county or even a town. You will see that when Six Walnuts first started to launch plant protein drinks, they started from the surrounding third and fourth tier markets.

We only focused on the market near home, part of Henan, and part of Shandong, and worked hard in the area within a hundred or two hundred kilometers. We did a very in-depth job, and a county with a population of 500,000 was able to achieve more than 30 million. The same is true for Jinjiu. It worked hard in a key market and later could achieve sales of more than 10 million in a prefecture-level city. Now, a county can achieve sales of more than 10 million. For example, the Zhejiang market can achieve sales of more than 2 billion a year. Therefore, we first make breakthroughs in the regional market and then develop in a rolling manner. This is particularly effective and profitable. Of course, this is based on the premise that China has a dense population and is very suitable for intensive farming.

The second point is the direct channel.

In China, no matter how powerful the brand is or how good the product is, it is unrealistic to distribute the goods to more than 3,000 counties, more than 20,000 towns, and more than 200,000 natural villages in China overnight. No company can do it effectively. Deep marketing seizes this weakness and the bottleneck of other companies. Starting from the channel, it can first distribute the goods to the consumer terminals and interface connection points, effectively influence and control the terminals, and greatly expand the contact and influence on consumers. So it is very direct, because consumers have relatively no clear purchasing goals. Only 30% of consumers know what they want to buy, and 70% don’t know and will only know when they arrive at the terminal.

Among the 30% of consumers who know what they want to buy, 70% are persuaded to change their minds by the boss lady or shopping guide at the terminal. This means that 80-90% of consumers are influenced by the terminal. Why is it called the winning terminal? The boss lady said: "No matter what brand or product is not a brand, when you come to my store, my mouth is the brand. Whichever I promote is the best." This reflects the characteristics of the Chinese market. The channel has a lot of say, especially in the third and fourth tier markets. The traditional channels and terminals have a lot of say, sometimes even more than the influence of products and brands. This is the second source of its power.

The third point is that it has strong penetration and execution effectiveness.

It can directly deliver the company's resources, promotions, policies and consumer communications to the terminal, improving the accuracy of resource allocation and the efficiency of its use. In contrast, some traditional enterprises have high-profile plans, many policies cannot be implemented, many resources are withheld, and they are weak and powerless when they reach the terminal. I think this is the third source of power that makes deep marketing effective and able to achieve absolute local advantages.

Fourth, it is difficult to imitate based on the continuous efforts of the organization and the team.

Because it is not about spending money to buy sales, nor is it about high-profile advertising, nor is it about impacting the market with low prices. Instead, it is about letting marketing personnel help and guide dealers, opening one terminal at a time, doing one event at a time, and taking over one town at a time. In this way, the market will have a solid foundation and it will not be like duckweed floating on the water. Some practices can increase the volume in the short term, but they will be gone after a wave hits. Deep marketing is not like that. It has deep roots and each practice is successful. It has good accumulation and at the same time the team’s capabilities are effectively trained, making it difficult for competitors to replicate.

Often, many competitors go to our model markets, see what we do, and understand our tactics, but to be honest, they are powerless. I can understand how to do it, but I just can't do it; or I can do some of it, but not the whole thing. Therefore, companies that are good at deep marketing generally have a strong execution culture. At the same time, they all come from "loser" backgrounds and rely on themselves, not their parents, or advertising. Therefore, it is difficult for others to imitate this, and their competitive advantage is relatively long-lasting. I think this is the fourth reason why it works.

Fifth, the company’s marketing focus is relatively low and the market speed is fast.

First, the resource allocation center is relatively low; second, the team's operation management center and execution center are relatively low. Close to the regional market, close to consumers, and close to the last mile "outlet". Therefore, the response speed is very fast, the ability to respond to competition is very high, and the response efficiency is very high. We try to seize a market, conquer a terminal, or win a customer, but often our competitors don't react until the battle is over. Therefore, in the process of homogeneous competition, I believe that this high-speed response and strong and precise reaction are the most important points to gain an advantage.

In the past two or three decades, this competitive advantage has been more obvious. Yes, we have done a famous case before, in which we guided TCL to fight against Changhong. At that time, Changhong was several times larger than TCL, and it was engaged in rounds of high-frequency and high-intensity price wars. How will TCL respond? You are the big customer, and I am the terminal; you are aggressively attacking the first- and second-tier markets, and I am intensively cultivating the third- and fourth-tier markets; I control the terminals, and my reaction speed is faster than yours, so I can launch my products at a faster pace, and my promotion rhythm, service rhythm, and market operation rhythm are all faster than yours. Therefore, Changhong, which is six times larger than it, was defeated by TCL, which is six times faster than it. This is a classic case of speed versus scale.

This kind of case is actually also vividly demonstrated on OPPO/vivo. We started to be consultants for BBK in 2006, and at that time we mainly helped BBK to make repeaters and DVDs. I remember that the first time I came into contact with BBK was when I was working on a project in Shenzhen. An intermediary agency introduced me to give lectures on BBK in the nearby Chang'an Town. Almost all of BBK's dealers were there that day, especially the core dealers. After the class, the effect was good, so they invited me to dinner and asked if we could cooperate.

It was then that I realized that BBK actually had no marketing team. The marketing backend consists of a few clerks, and a "range team" of about 40 people (this team was later disbanded). They would help whichever dealer was not doing well. There were more than 30 dealers across the country (basically one dealer in each province), and the market was operated through the dealers. The relationship between these dealers and Duan Yongping is both a distribution partnership and a shareholder relationship. They are both partners and friends. At that time, we provided them with consulting services in the Sichuan market, which had a very good effect in the regional market and sales continued to increase.

A year later, we started providing marketing consulting services for OPPO mobile phones. At that time, the OPPO brand was preparing to start its own business and break away from the original BBK mobile phone system to create a brand that was higher-end, younger, more fashionable, and more international than BBK. Therefore, from the moment OPPO was registered, it operated as an international brand, in an attempt to break away from the original BBK system. Because the original BBK mobile phone was labeled as a migrant worker's phone and was a branded phone among copycat phones. OPPO's approach is to require each dealer to set up an independent team, with dedicated funds and personnel, separate from the original ones.

At that time, OPPO phones were still music phones, which were called "crappy phones" in today's terms. However, BBK's dealers were very powerful. Looking at such a crappy phone (which we all looked down on at the time), they were able to recruit 800 shopping guides and put 2,000 counters on the market. In-depth marketing was a requirement at that time. I remember that their distributor Mr. Qiu said to me: "Teacher Cheng, we need to find people who have never made mobile phones but have sold home appliances to make our OPPO mobile phones. In the past, TCL mobile phones and domestic mobile phones were sold by finding big customers and selling them through channels. We need to find people who make terminals."

At that time, everyone reached a consensus: the deep marketing model is the core key to OPPO's rise . Therefore, from the very beginning, all their sales policies, promotion methods, and resource allocations were carried out in accordance with terminal control and terminal sales. Our project team has developed a series of strategic routines around terminal strategy, layout, development, construction, sales, and maintenance. At that time, we put in a lot of effort and spent six months to turn these routines into a "fool-proof version", including what to say when meeting the terminal boss lady, what props to use, how to deal with problems, etc., all of which were made into the "Sunflower Manual". They are still using these basic frameworks today.

At that time, we led OPPO's young salesmen to the market to develop terminal stores. We had neither a brand nor good products, so many people, especially those big customers who were doing well, actually ignored us. We could only go to each store one by one and visit them one by one. There were rules at the time: no quotations were allowed and no products were allowed to be seen. We could only talk about our concepts and our business model . Only after they were interested and came to visit our company could we see our products and get quotes.

At that time, many bosses of mobile phone terminals thought: Are you guys crazy? Are you looking for me for a relationship or to do business? Why talk about so many concepts and so much empty talk? Just give the product the right price. We said: selling OPPO is not about getting rich overnight. We have our own business model. If you agree with our philosophy and our approach, we will cooperate with you for a long time. If you are not a family, you cannot enter the same door. If you want to enter the same door, you must be a family. From that time on, this concept and the direction of intensive and meticulous marketing have been made clear.

For more than 10 years, they have been adhering to this basic culture and philosophy, and it has not changed! Last week I gave a lecture to OPPO/vivo dealers in Henan, and they talked about this issue. They said: "Ten years ago, we had nothing, so we had affinity and service capabilities for terminals. But now, OPPO/vivo has risen, and terminal owners feel insecure about us. They say we don't serve and support them like before, and they feel like they are being 'kidnapped' by us." OPPO/vivo dealers still adhere to this concept. They answered terminal dealers in Henan like this: "Don't worry, no matter how awesome OPPO/vivo is, we will do what we promised as before." Therefore, it is a kind of cultural power that strengthens the continuous execution of their terminals.

People from OPPO/vivo mentioned a phenomenon that has a sense of picture. We arrived at a terminal, to a town. There are 5 stores selling mobile phones in this town. We found the best one and asked, “Are you willing to sell OPPO/vivo? I will give you zero risk. First calculate the number of counters. You give me the cultural wall and I will send you a product. You give me a deposit of 20,000 yuan. If you fail to achieve the target in one month, I will return the money to you and let you operate with zero risk.” As soon as our team entered, we could increase sales through sales promotion. The boss lady became more and more courageous and confident, and gradually she handed the store over to us to run.

Now OPPO/vivo has really taken things to the extreme. In the morning, the regional manager can buy breakfast for the store employees; in the evening, when the promotion is over, the regional manager can invite the store employees to have a foot massage. Many boss ladies said: "I opened a store, but now the clerks don't listen to me anymore. They listen to you. I feel like I'm being sidelined." Therefore, the deep marketing approach can indeed maximize the company's resources, unique product strength and team capabilities. This is also one of the main reasons why it is very effective.

3. Innovative directions for deep marketing in the future

Looking to the future, in today's highly developed Internet marketing and Internet e-commerce , in the new era where people born in the 80s and 90s have become the main consumers, how can deep marketing carry on the tradition and continue to innovate? I believe that if any model wants to remain effective and have endless vitality, it is imperative and necessary for it to keep pace with the times. I believe that deep marketing mainly involves systematic innovation in the following six aspects.

First, we must gradually transition from channel-centric and terminal-centric to consumer-centric and directly facing consumers.

In the past, the terminal was king, but now we need to gradually make it so that consumers are king. Companies like Jinjiu have now clearly stipulated that they will reduce their massive terminal investment and gradually shift resources to interaction with and services to consumers. Gu Jiajia Furniture, which recently went public, also emphasizes abandoning its previous high-profile terminal marketing and gradually turning to precise marketing and precise services for consumers. Some time ago, I went to Hangzhou and gave a lecture to Gu Jiajia Furniture on "Marketing Innovation in Terminal Operations under the New Situation", focusing on the issue of transformation.

Secondly, we need to build a new type of manufacturer-supplier relationship.

In recent years, with the continuous maturity of the industry and the increasing concentration of the industry, the concentration of channels has also increased, and a group of modern regional platform distributors with modern business concepts, corporate operations, professional functional platform support, complete personnel and high degree of professionalism have emerged. These dealers can actually have in-depth cooperation with manufacturers, so we recommend strong cooperation, introducing an operating model that integrates the manufacturer's value, and allowing dealers and manufacturers to work closely together. Manufacturers should implement the policy of "dividing land into households", and dealers should till the fields themselves; manufacturers should implement "monogamy", and dealers should achieve win-win development. Further enhance the cooperation efficiency among manufacturers.

The deep marketing model has relatively high requirements on the people in the company. Not only the quality of the people is required to be high, but also the number of people in the team is required to be high. Under the current economic situation, it is unrealistic for companies to support so many people, both in terms of operating costs and management difficulties. So what concept do we propose? In the future, companies engaged in in-depth marketing must take the path of elite troops, integrate more of the resources and teams of dealers, and expand and strengthen local armed forces. The prerequisite for manufacturers to take the path of elite troops and expand and strengthen local armed forces is that manufacturers and merchants must form a community of shared destiny and form an operating model and system that integrates the value of manufacturers.

In this regard, many home furnishing and building materials companies, including some fast-moving consumer goods companies, such as Jinjiu, and companies that sell feed and make fertilizers, such as Kingenta, Stanley, Tongwei, Haida, etc., are transforming and renovating their dealers. They have established business schools for dealer training, exporting concepts, culture, management, information, and teams to dealers to enhance the ability and efficiency of dealers in collaborating with manufacturers.

Third, we must fully embrace the Internet and use new communication tools such as the Internet and big data , as well as new means of connecting with consumers, to improve existing distribution efficiency and service efficiency.

The first thing is to effectively manage the distribution inventory of the channels, introduce the CRM system, and carry out unified information technology transformation of dealers, so that a series of distribution efficiency such as order processing, expense verification, policy issuance, product delivery, etc. can be equipped with the wings of the Internet. At the same time, we must effectively use big data to enable us to retain consumers through precision marketing, continuously deepen and improve our value-added service capabilities and interactive stickiness with consumers, and enhance the influence of our terminals. Therefore, we need to gradually shift from simply controlling terminals to controlling both terminals and consumers. We need to retain consumers and do both well.

Fourthly, we must emphasize the terminal experience and the consumer’s sense of value of service.

Under the new circumstances, after all, in the Internet era, consumer experience is king, products are king, and experience is king. Therefore, the construction of terminals must gradually shift from focusing on promotions and dynamic sales to focusing on consumer experience and services to meet the shopping needs of new consumers. What are the three shopping needs of new consumers? In addition to traditional transactions, there are more entertainment needs, more experience needs, and more participation needs, so future terminals must bring consumers a sense of experience, participation, and entertainment. This requires that deep marketing must be fully upgraded in terms of terminal construction in the future, gradually shifting from previous high-profile practices and extensive operating methods such as simple promotions and high-density street shows to one-on-one services and precise communication with consumers that are subtle and effective.

Fifthly, we must gradually expand and enhance the advantages of deep marketing, channel dominance and in-depth interaction with consumer interfaces to integrated advantages.

First of all, in the Internet era, products are king and product strength must be improved. Now OPPO/vivo is desperately increasing its investment in R&D to improve product performance. In addition, the brand needs to be gradually upgraded. In the new era of Internet communication, we have a good communication interface with consumers and a good interface for serving consumers. We should use our advantages to enhance the brand and strengthen interactive communication with new consumers. Of course, branding is not about high-profile advertising like Evergrande Ice Spring, but about continuous interaction with consumers, treating consumers as friends and besties, and deepening the relationship with customers through such communication and service, thereby increasing the brand's influence in consumers' minds.

Sixthly, the channel model for deep marketing in the future will be an omni-channel model.

With the operating platform that integrates the value of dealers and manufacturers as the core, we will integrate online and offline to form a three-dimensional O+O channel. In addition to offline distribution, circulation, traditional distribution outlets in the third and fourth-tier markets and offline terminal stores such as specialty stores, we must also make full use of the Internet's unified operating platform, service platform, and delivery platform to carry out O+O integrated distribution and services. Therefore, deep marketing is actually the easiest and most capable of connecting online and offline interfaces that are consistent with each other. It is different from traditional O2O methods such as simple transactions or information diversion.

IV. Application of deep marketing in industrial product market and key customer marketing

Many people ask me: Most of the current successful cases of deep marketing are based on fast-moving consumer goods. So, how can deep marketing be applied to large-scale project marketing and large-customer marketing in the industrial products market? Let me talk about our practices in this regard.

When deep marketing is used in the industrial products market, the concept can actually be summed up in one sentence: If you want to win over your customers, you must win over your customers' customers. I think this sentence is the most concise and essential summary of deep marketing used in the business market and industrial products B2B market.

Let me give you an example here. We used to provide services to an automobile parts company that made axles. As we all know, when axles were being invested in the market operation process in the past, heavy trucks and heavy machinery were in short supply, which led to a particularly good supporting business for axles, so there was no marketing problem. Later, due to the withdrawal of the "Four Trillion" high fixed investment policy, the entire construction market declined, resulting in a drop in sales of heavy trucks and heavy machinery, and their marketing became a problem. So this heavy-duty truck parts brand company came directly to our team to introduce an in-depth marketing model. At that time, all of them were asking us: "Deep marketing is all about building channels and terminals. We only follow this approach for aftermarket auto parts, but we can't do the same for the rest of the host supporting market!" But our consulting team doesn't think so. The deep marketing model can also be applied.

First, we look for some strategic brand heavy-duty truck manufacturers, such as Foton. The traditional way is that when you go to Futian, you have to bid, and then find the interfaces of each link, human relationships, customer relations, and the traditional old routine. So should we do this? To do. We told them: "You need to strengthen and continue to do the things you did before. But not only do these, but you also need to reach the future markets." What are the future markets? We track which car the axle is installed on and which dealer picks it up. What does it mean to deal with “the customer’s customer”? That is, invite those dealers who have picked up the cars to the factory to promote services, observe products, and have in-depth communication. We also jointly hold promotional activities. All Auman heavy-duty trucks equipped with our brand axles will have after-sales extended warranty services, buy-one-get-one-free promotions, and product experience. This series of promotional and service activities are jointly carried out through collaboration with contributions from our brand and heavy-duty truck dealers.

Obviously, such a marketing strategy has achieved very good results in the regional market. Many car owners who come to buy cars see that the heavy-duty trucks of the same brand are equipped with our brand axles. First, the axles are better than previous ones and have higher technical content; second, there is a buy-one-get-one-free promotion, where you can get an extra navigation system or TV; third, the warranty mileage of the axles is extended. Under the same conditions, heavy trucks with our brand axles will definitely sell well. At this time, regional heavy-duty truck dealers still have to purchase goods from the factory and add order plans, which will definitely increase the number of models that are equipped with our brand axles.

So from here we can see that if you just build relationships with the OEMs and lower prices, it will not have much effect, and it will require a lot of resources to be invested, and it will easily lead to vicious competition, price wars, and sales on credit. Instead, you can save resources to deal with your customers' customers, the car dealers of the OEMs, and the car owners. Through deep interaction, deep promotion, and deep service with them, you can increase your influence on them, so that they can reversely pull in orders and promote sales. This approach not only effectively increased the number of orders at the moment, but also deepened the cooperative relationship with the OEMs. Gradually, it formed some strategic projects such as joint promotions with the OEMs and joint development of new products, deepening the cooperative relationship between the two parties.

Let me talk about how to use deep marketing in the distribution of industrial products.

Last year, we provided service for a project for Sinochem Blue Sky. The customer mainly deals in refrigerant products. Now when they encounter problems, they come to us for advice on solutions and improvements. What's the problem? The sales growth of air conditioners such as Gree and Midea in China is actually in single digits, and the growth has slowed down, resulting in restrictions on the development of refrigerants. However, what should enterprises do to ensure rapid development? We proposed a new direction for him to develop market space, which is to move towards the air-conditioning aftermarket.

The growth in the new air-conditioning market is not large, but as the number of air-conditioners increases, the usage in the maintenance service market will be even higher. In the past, there were no big brands in this market (most international brands have gradually withdrawn from the domestic market). It was mainly some small and medium-sized private enterprises and "anywhere brands" that sold "scattered" fake products, which not only polluted the environment, but also evaded taxes, messed up the market, and was actually not good for the air-conditioning manufacturers. Some bad refrigerants have damaged users' air conditioners, and users don't know whether it is a problem with the refrigerant or the air conditioner, so it has caused a lot of negative impact on the brand.

The pain point of the industry now is our opportunity. Why can we seize this pain point? Then we must introduce in-depth marketing. In the past, our client companies sold refrigerants in a rough and extensive manner by releasing high-end goods. They would find a distributor in each place and leave the goods alone after they were wholesaled. They would sell the goods at the lowest price, which was basically "running naked". There was no price maintenance management, which led to chaos and sales being blocked. Many regional distributors also "sold dog meat under the guise of sheep meat".

Now we have started in-depth marketing. In key markets, we have found stores that can sell refrigeration accessories, contractors that can take on cold chain modification projects, and service providers that do large-scale air-conditioning equipment maintenance. We will first concentrate our resources to provide in-depth services to these terminal merchants and their air-conditioning repairmen. Through promotional push and effective communication with them, we will drive channel dealers to specialize in our Sinochem Blue Sky products. This has made major breakthroughs in the local markets of Fujian and Guangdong, greatly boosted the enthusiasm of other dealers and the confidence of the internal marketing team. We then took advantage of the victory and replicated the business in 10 provinces last year, opening nearly 3,000 brand stores and affecting tens of thousands of air-conditioning contractors and repairmen. This increased the sales volume of this category more than tenfold that year, and also increased the price, truly achieving a simultaneous increase in both price and volume.

Our experience from 20 years of providing in-depth marketing consulting services is that the basic principles of marketing are actually the same. There is a saying that goes, happy families are all alike, but unhappy families are each unhappy in their own way. There are always reasons for failure. In fact, success only requires one thing: to focus closely on the customer's value, get closer to them in providing services, and interact with them about products and services. The closer we are to our customers and the market, the greater the advantage we gain and the faster we will be. In the absence of "nuclear weapon-like" products and "unreliable" brands, I believe this is the only way for "losers" to stand out in the world and make a comeback. Therefore, there are still many opportunities for deep marketing in the future.

Many companies are now learning from Huawei. I personally believe that 90% of Chinese companies cannot learn from Huawei. Because they cannot have the same continuous R&D investment, technological reserves and corporate mechanisms as Huawei. Most companies still focus on the immediate gains and losses and can only survive in homogeneous competition. Therefore, in-depth marketing may be closer to their current requirements and can win time and space for their future brand building, technology research and development, and product improvement.

I am still very optimistic about the vitality of the deep marketing model. In the next 5 to 10 years, deep marketing will remain the mainstream marketing model for most Chinese companies.

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