james song general manager of marketing mengniu dairy (group) co feb. 24, 2014 the changing...
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James Song General Manager of MarketingMengniu Dairy (Group) Co
Feb. 24, 2014
The Changing Landscape of China’s Dairy Industry
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About Me
• 1990-1996 Harbin Institute of Technology majored in Applied Chemistry with Master degree
and minored in Business Administration
• 1996-2007 Procter & Gamble (China) Co. Ltd., Product Manager, Section Head
• 2007-2010 Nestle Co. Ltd. , Business and Brand Development Manager
• 2010-2013 Ariston Thermo (China) Co. Ltd, Marketing & Sales Director
• 2013- present Mengniu Dairy (Group) Co. Ltd, Marketing General Manager
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Dairy in China
Defending milk Demand diversification Digitalization Deficiency of raw milk
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Defend Milk
Milk Safety issue
Is always a focus of the media
and the public around the
world.
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Pause & Recharge Spoil Delight Provide Satisfy Fill Nourish Good For Refresh
Simple convenient meals Fill
Easy Simple Health
Creative inspiration to impress
Straightforward
balanced family meals
Pause & Recharge
Indulge
Positive Health
Celebration
Satisfying and
nutritious goodness
Pause & Recharge Indulge Impress Provide Satisfy Fill Nourish Good For Celebration
Stressed & Struggling
Young Path Finders
Life Jugglers
Optimistic Experience Seekers
Settled traditionalists
Foodie Idealists
Health Controllers
Demand Diversity
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Young girls spent 10 minutes taking food photos, making boyfriends hungry to tears
DigitalizationThe Internet has totally changed
consumer behavior and experience.
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Deficiency of raw milk
The insufficiency of raw milk supply is forcing dairy companies to explore disruptive innovation aggressively
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Every day
more than 70 million consumers and 5
million students drink Mengniu products
Mengniu: largest UHT milk provider
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Established in 1999
Stepped into World Dairy Top 20 in 2008
The 15th in 2013
One of the world's fastest-growing dairy enterprises
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High penetration in China
One Mengniu sale outlet
serves 810 Chinese consumers
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• Value: to provide nutritious and healthy food to meet consumers’
diversified needs with strong innovative capability
• Vision: to forge an eco-system with consumers, employees, investors and
all related parties and grow together
Mengniu’s Value and Vision
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Expanding platform
Positive cycle in capital market
– Market value of Mengniu in 2013: from £3.06b to £5.18b
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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61%feel their life will be better in the next 12 months
47%think their
financial situation today is better than 12 months
ago
Forward-Looking
Despite the supposed economic slowdown, consumers in China
continue to live better and better lives.
Enjoying Improved Lives
49millionChinese homes
earn middle-class incomes by 2013
More Well-Off Than Ever
The changing Chinese consumer
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As a result, much has been said about how their increased
willingness to trade-up their brands across a wide slew of
product categories .
Source: McKinsey & Co. (*weighted averages for 12 categories), Ipsos China
% Agree:“Expensive Products are Better”
Main Reason for Spending Moreon Various Products (%)*
Bought new type of product
Traded up to more expensive products
Bought more frequently or in larger quantities
The Spending Habits of the ‘New Mainstream’ Consumer Trading-Up in Food/Beverage
Yes, 40%
No, 60%
Willingness to Pay forHigh Quality Food & Drinks
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Doing business in China
Duplication to innovation People, people, peopleTechnology Real partnership
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Get peach blossom and
be lucky quickly.
Be wealthy and get
promotion quickly.
Thanks!