Hongta group: Innovating to Build Excellent Enterprises

Hongta group: Innovating to Build Excellent Enterprises

It is reported that during the "National Inter-provincial Cigarette Production and Marketing Convergence Meeting" held in Yuxi, Yunnan on June 9th 1 10, hongta group signed a cigarette sales agreement with tobacco companies all over the country in the first half of 2006. The situation is gratifying, especially the sales of "Hongtashan" brand series products recovered and increased rapidly for the first time after years of continuous brand decline, showing a good trend and achieving the goal for hongta group. According to the data of China Tobacco Trading Information Center, as of June 5438+00, the major brands in hongta group, such as Yuxi, Hongtashan, Hongmei, Guo Bin and Meideng, all grew rapidly in different degrees compared with the same period of last year, showing a booming trend of production and sales. It is a foregone conclusion that Hongtashan brand will achieve recovery growth this year.

Enterprises promote economic development, and brands breed economic creation. "Hongtashan" has been the first brand in China for seven consecutive years, and the rapid development of the "Hongtashan" brand has created the brilliance of hongta group. Hongta group once set up a banner of China's national industry and made positive contributions to the country and local governments, paying more than 200 billion yuan in profits and taxes for the country and local governments. On September 1 2005, hongta group was awarded the honorary title of "2005 China Famous Brand Product" by the National Famous Brand Promotion Committee. Hongta group is one of the enterprises with the largest number of brands in China, and it is also the only enterprise in the tobacco industry with three famous brands in China. However, Hongta, like the world-famous longevity enterprises, is not always smooth sailing, but developing in twists and turns. Facing the severe challenge of joining WTO and WHO, facing the further development strategy of "deepening reform, promoting reorganization, moving towards alliance and common development" and actively promoting the working idea of "big brand, big enterprise and big market", Hongta people are making fruitful and active explorations on how to strengthen independent innovation, seize opportunities, meet challenges and reproduce historical glory.

Strategic innovation

-Pointing out the direction for enterprise development

In the fierce market competition, if you want to maintain the strength of the enterprise in the competition, if you want to achieve long-term development and be invincible, you must have a clear strategy. Enterprises without strategy can usually only focus on the status quo, and they are tired of operating for short-term material benefits, and in the end they are often short-lived and futile. Strategic formulation is planned, not static, and it needs constant innovation and keeping pace with the times in order to achieve sustained success. Hongta group's strategic decision makers have advanced and forward-looking innovative thinking. In the early 1980s, they boldly carried out technological innovation and took the lead in introducing foreign advanced equipment. With the unique natural advantages of flue-cured tobacco cultivation, Hongta entered a period of rapid development and set up a banner of national industry. According to the needs of enterprise development, the "trinity" organizational structure model was put forward, and the second round of technical transformation was carried out in the mid-1990s, which laid a solid foundation for hongta group to become an excellent enterprise.

The decision-makers of Hongta believe: "In a complete industrial life cycle, an industry will inevitably go through the stage of decentralized competition, to the stage of cumulative development with internal growth as the main factor, to the stage of agglomeration development with external expansion as the main factor, and finally form large groups and enterprises. The tobacco industry in China is currently entering a stage of agglomeration and development based on outward expansion. " "Strategic issues are crucial. Strategy determines success or failure, and strategy is the banner and the direction. " Facing the new situation of China's entry into WTO and the great changes in the competition pattern of tobacco industry, hongta group adjusted its enterprise development strategy in time in 2002, and put forward the "refocusing strategy" to focus on the main business, improve quality and innovation, and enhance the core competitiveness of Hongta, so as to seize the opportunity, concentrate on integrating resources, and make the main business of tobacco stronger and bigger. Established the brand development strategy of Yuxi, Hongtashan, Hongmei, State Guest and Meideng. Take the brand as the link, and actively and steadily expand the brand through reorganization and integration, product joint venture, standardization and standardized management. Focusing on the development strategy of "deepening reform, promoting restructuring, moving towards alliance and * * * common development" put forward by the National Bureau, we will deepen the strategic construction of group integration. In order to realize the effective integration of resources after joint reorganization, hongta group has implemented "six integrations" and "two transformations". "Six integrations", namely: financial management integration, information integration, brand, marketing, R&D integration, raw material integration, material integration, human resources integration and organizational management integration. "Two changes", that is, the development goal has changed from bigger to stronger, and the economic growth mode has changed from incremental to optimized structure. According to the overall development requirements of hongta group, we will further strengthen international cooperation, expand the international market and strive for world-famous brands. At present, hongta group has seven cigarette production bases in Yuxi, Chuxiong and Dali, with a production scale of over 3.2 million boxes. It is the largest cigarette industrial enterprise in China and one of the most famous brand enterprises in China.

Organizational innovation

-To provide guarantee for the implementation of enterprise management strategy.

Chandler, a famous American scholar, studied the business development history of more than 70 large American companies, especially General Electric Company, Dupont Company, New Jersey Standard Oil Company and Sears Robb Company, and reached a famous conclusion: the organizational structure of enterprises should obey and serve the strategy. The development of hongta group also verified Chandler's assertion. When the external environment is relatively stable, the contradiction between strategic adjustment and organizational structure is not prominent. When an enterprise faces a major strategic turning point, it needs to carry out major changes in its organizational structure to achieve major strategic innovation, and provide guarantee for the implementation of its business strategy through organizational innovation. In the high-speed growth period of hongta group in the early 1980s, the organizational structure corresponding to the factory system was linear; In the mid-1990s, Hongta changed from factory system to group company system, and its organizational structure adopted business department system. Especially after the diversification strategy was put forward in the last century, it expanded rapidly and the whole organizational structure expanded rapidly. In 2002, the new leadership of the Group put forward the refocusing strategy, redesigned the organizational structure, optimized the organizational process, and implemented the "three systems" reform internally to meet the needs of the Group's strategic adjustment. With the deepening of hongta group's integration strategy, the organizational structure of scientific research, production and marketing of "two centers and three production points" has been formed in the whole province, namely, the technical center, marketing center and three production points of Yuxi Cigarette Factory, Chuxiong Cigarette Factory and Dali Cigarette Factory.

The essence of organizational innovation lies in organizational culture, management and mechanism innovation. Hongta praised the enterprise spirit of "being the first in the world" in the past, and thus created countless miracles and set up a banner of China's national industry. Nowadays, Hongta people are constantly climbing the peak, continuing the essence of previous enterprises and putting forward the enterprise concept of "Mountain is the peak". The management policy of "people-oriented, caring for health, improving quality, innovation and pursuing Excellence", implementing the "three systems" reform and creating multi-channel and multi-level flexible employment mechanism innovation. Strengthen basic management and build a scientific management platform. hongta group passed the ISO9000 quality system certification in 1997, and passed the environmental and occupational health and safety management system certification in 2004. It was the first in the national tobacco industry to obtain the "three certificates in one" certification, and gradually introduced excellent performance appraisal, strengthened quality awareness, improved enterprise operation efficiency, stimulated employees' enthusiasm, enhanced enterprise brand influence and promoted major brands.

technical innovation

-take consumers as the center and build a strong brand.

No company, no matter how big it is, how famous it is, or how big its market share is, can rely on its past successful experience to survive. Sustained success requires new competitive advantages and innovation. Hongta people deeply realize that the only way to survive in the fierce market competition is to stay ahead of others. In order to maintain its leading position, Hongta attaches great importance to technological innovation and R&D investment, and does not hesitate to spend huge sums of money on technological transformation and new product development.

Japan became the second largest economy in the world in only 30 years after the war, and its technological policy focusing on digestion, absorption and innovation is one of the important factors. South Korea also takes the route of technological progress of digestion, absorption and innovation. At present, its scientific and technological innovation ability has jumped to the fifth place in the world. Since the reform and opening up in China, economic development and technological progress have been largely achieved through digestion, absorption and innovation on the basis of introduction. Through the innovation of digestion and absorption based on imported technology, hongta group has quickly achieved a leap from a small border tobacco factory to a leading tobacco company in China and the first modern cigarette industrial enterprise in Asia. We are constantly improving the digestion, absorption and re-innovation mechanism of imported technology, organically combining independent innovation with digestion and absorption of technology introduction, and striving to achieve innovation on the basis of introduction. In 2002, hongta group put forward the strategy of refocusing and returned to the main tobacco industry. At the end of last year, it began the third round of large-scale technological transformation aimed at "upgrading quality and innovation". By improving the key technological processes and procedures, the product processing is refined and the control is intelligent, which ensures the leading position of Hongta in technical equipment level and processing technology. At present, the characteristic processing mode of Chinese cigarettes has been realized in cigarette processing technology.

The products of cigarette industrial enterprises belong to a special kind of consumer goods and a hobby consumer goods. As a responsible big enterprise like hongta group, we should pay more attention to the health of consumers while paying attention to the national interests. Facing the accession to WHO, the Framework Convention on Tobacco Control will come into effect in China, which will bring great pressure to the tobacco industry. Hongta group took the initiative to meet the challenge. Over the years, we have been committed to the scientific and technological innovation of products that reduce coke and harm, constantly improve the level of scientific and technological innovation, effectively control and reduce the harm of harmful substances in tobacco to human body, take consumer health as our responsibility and safeguard consumers' interests. Hongta group has successively set up a national technical center and a postdoctoral mobile workstation to further intensify research and development, strengthen the research on consumption structure, brand structure and consumption habits, conduct product research and development and launch targeted at regional markets, and improve the ability to adapt to the market. From 65438 to 0999, hongta group took the lead in controlling the tar content of all cigarette products below 15mg/ cigarette. In 2002, "Platinum" series products with high-tech content, high aroma, high safety, low irritation and low harm were launched. The product has been appraised as "representing the strength and level of China Tobacco" by the leaders of the National Bureau. According to the needs of consumers, the market is constantly subdivided and products are constantly introduced. The research results of HT-2 filter rod produced by "New Force" and "Artificial Peak" Hongtashan, which were developed and put on the market this year, have been applied in Hongta brand, improving the smoking taste of cigarettes, reducing harmful substances in mainstream smoke and improving cigarette safety. In terms of raw materials, in the 1980s, Hongta put forward "the first workshop of raw materials", implemented the strategy of developing tobacco through science and technology, and continuously developed and planted low-tar tobacco varieties. In recent years, Hongta actively builds "green tobacco leaves" with no pollution and low pesticide residues, and builds Hongta brand with high-quality raw materials.

Brand innovation

-The inexhaustible motive force of Changshou brand

The world has entered the era of brand competition. Jack trotter, a world-famous market strategist, pointed out when analyzing the significance of future market brands: "There are two kinds of competitors who are successful. One is a strong brand, and the other is a big brand. Such companies can seek benefits all over the world. The other is a professional or well-positioned brand. These are small competitors. " As a leading enterprise in China tobacco industry, hongta group's brand development process shows that brand innovation is a necessary way to solve the problem of brand aging, an important guarantee to revitalize the brand, and a driving force for brand metabolism to move towards a new cycle. Of course, brand innovation is not a simple product transformation, but a systematic project, which must be carried out at the level of brand products, brands themselves and brand expansion. Hongta group continued to write a romantic new chapter in brand innovation.

Brand product level innovation

A brand has a life cycle, but it is completely different from the life cycle of a product, because the life of the brand and the life of the product are not completely integrated. Brands can be constantly innovated, but products must be constantly updated, improved and even extinct. The reason is that the original products of the brand are replaced by newly developed products because they can't adapt to the development of the situation and can't meet the needs of consumers, so that the brand can continue. In the rapidly changing market, the needs of consumers are also changing. From 2000 to 2003, "Hongmei" faced the problem of brand aging, and the taste of products could not meet the requirements of consumer groups. In 2002, hongta group timely introduced a new mellow variety "Hongmei" 1 and No.2, which is characterized by "sweetness and harmony" and reflects the soft and smooth taste. Its mellow and light taste is in line with the current smoking trend, and it has been recognized by consumers, with good market response and strong performance.

Brand is like an organism, and product is a subsystem of this organism system; Only by innovating and optimizing each subsystem can we produce the effect of 1+ 12 and optimize the parent system. A lasting brand depends on the good sales and market performance of its next product or products. Good products provide strong support for brand building. If the product is not good, the brand will become an empty shell with nowhere to go. In order to maintain and maintain the brand of Hongtashan, according to the regional consumption culture and habits, the cigarette consumption market is subdivided, and the products are innovated. This year, the research results of "new power" and "artificial peak" filter rods developed and put on the market were applied to Hongtashan brand, which improved the smoking taste of cigarettes, reduced the harmful substances in mainstream smoke and ensured the safety of cigarettes. At the same time, with the brand's interpretation of history and consumers' nostalgia as the appeal point, the unique charm and king style of Hongtashan brand are reproduced, and the "classic 1956" product is launched to make Hongtashan, an old brand, look brand-new, inject vitality and restore its strong competitiveness.

Innovation of the brand itself

Brand innovation at this level mainly focuses on brand vision, brand image, brand extension, brand concept and brand strategy. Its direct purpose is to improve popularity, reshape brand image, enhance brand loyalty and brand association, and the ultimate goal is to improve repeated purchasing power, accumulate brand assets and restore brand market competitiveness.

Hongta group has established the brand development strategies of Yuxi, Hongtashan and Hongmei. According to the three levels of high, medium and low, through the three levels of enterprise brand, main brand and sub-brand, a "pyramid" brand structure is formed, which clarifies the brand positioning, enhances the value of each brand and effectively enhances the overall competitiveness of the brand. For example, the newly developed "new force" Hongtashan introduces the new image of the product with brand-new products and clear market positioning: "a brave, determined, hardworking, strong, adventurous and masculine man", and highlights the individual characteristics of the product: "a climber with strong physique, vigor, perseverance, strength, courage to struggle, innovation and accept challenges." With the visual impact of advertising: "I will come in the future", we will consolidate the existing consumer groups, attract new consumers, meet the consumer demand in this area with unique product characteristics, adopt new technologies, make the outer packaging shiny, festive, novel and more graded, innovate the brand image of the whole "Hongtashan" and promote the sales of the whole "Hongtashan" series of products.

Brand expansion level innovation

Facing the competitive pressure of foreign cigarettes entering the domestic market and the rise of local brands, and facing the in-depth reform of the industry, the market space is gradually staggered, providing opportunities for powerful enterprises. The products of cigarette enterprises always have a life cycle, which is an unavoidable reality for enterprises. When the product life cycle matures or declines, the market demand stops growing and begins to decline. At this time, enterprises should consider how to launch new products or enter new market areas to avoid the disaster brought by the product life cycle. In fact, when products mature or decline, enterprises begin to consider brand expansion, hoping to introduce new products or move to new markets through brand expansion, so that enterprises or brands can continue to survive and develop.

Brand expansion is an inevitable choice for leading enterprises such as hongta group. Expansion brings brand extension and expansion, but it also brings risks. Avoid risks, seize opportunities, use OEM under the banner of brand, transfer production base to other production points, and enter foreign markets. Hongta group's brand expansion is mainly from joint reorganization and joint processing. At present, the brand output is mainly three or four kinds of cigarettes; Through merger, joint venture company or joint-stock company, enterprise assets reorganization, etc., we will integrate the existing brands and their respective superior resources in both markets, weaken the production of weak brands, and realize brand expansion of a certain scale; Through joint production in the region, regional brand expansion and market resources will be realized. Through brand expansion, in 2004, the sales volume of "Hongmei" brand cigarettes in hongta group once again exceeded one million cases, becoming one of the top three brands in China, which provided a good growth space for the development of "Hongmei" brand, thus achieving the purpose of effectively and fully utilizing enterprise brand resources.

Marketing innovation

-Respond calmly to the ever-changing external environment

In order to cooperate with the refocusing strategy, Hongta put forward the slogan of "taking the market as the first workshop". This is a historic strategic change compared with the "raw material production is the first workshop" during the rapid rise of Hongta. Drucker, a famous management master, pointed out in his book Management: Task, Responsibility and Practice that the two basic functions of enterprises are marketing and innovation. Although innovation consciousness runs through every link and department of an enterprise, it is more intuitive and important in the marketing system. Hongta group keeps an innovative mind, constantly improves its ability to adapt to the market, and calmly responds to the ever-changing external environment.

In the marketing practice, hongta group constantly experiences the marketing idea, innovates the marketing idea, strengthens the brand marketing, and establishes the brand red tower consciousness. We have made fruitful explorations in marketing innovation, which are mainly reflected in:

1, event marketing, that is, through or with the help of an important event to strengthen marketing and expand market share. In 2003, Hongta initiated "2003 Passion Crossing the Haba Snow Mountain" and sponsored "2003 Real Madrid China Tour". With the help of "2004 hongta group Michael Porter Strategic Forum", Hongta has been sponsoring "2005 Everest Survey". Effectively conveyed the concept and connotation of "the mountain is the highest" to the public, and promoted the brand of Hongta enterprises, thus driving Hongta.

2. Brand marketing. This is an era of brand competition. The development history of tobacco industry tells us that the result of market segmentation is that without absolute strong brands, there will be no competitiveness of strong corporate brands. As a leader in the tobacco industry, we have the responsibility to establish brand tobacco. In the romantic process of "big brand, big enterprise, big market", hongta group adjusted its brand development strategy in time and made a brand-new interpretation of the major cigarette brand cultures to meet the market demand. At the same time, high-level marketing made a heavy blow and launched all-round marketing, and held "Hongta Brand Market Symposium" in Shanghai, Qingdao, Shanxi and other places, which greatly promoted the communication and brand recognition of all parties in industry and commerce.

3. "Willing" marketing. Hongta people know very well that only by "giving up" can they "get". To give up is not to give up, but to seek advantages and avoid disadvantages, concentrate resources, seize opportunities, pay attention to consumers' health, increase scientific and technological innovation, "reduce focus and harm" products, and practice "national interests and consumers' interests are paramount". "Winning" means constantly meeting consumers' needs, launching new products in time, gaining consumers' recognition, making truly powerful brands refined and stronger, making Hongta brand brilliant again and enhancing brand value, thus maintaining it.

4. Differentiated marketing

2005 is the year of hongta group's integration. Strengthening Hongtashan is hongta group's number one task, and restoring Hongtashan brand to its proper position. Set up the Hongtashan brand development project team, launch the "artificial peak" positioned as "the return of the king", and develop targeted regional new products according to the market climate, culture, consumer taste characteristics and smoking preference in Jiangsu Province; The "new force" with the visual impact of "I will come in the future" is its new cigarette product, which is consumption-oriented and carefully developed for young consumers.

label

-The market calls for "the return of the king"

2006 is the 50th anniversary of the establishment of Hongta. On the occasion of the upcoming factory celebration, all the powerful brands in hongta group are showing a good development momentum, which is the biggest factory celebration gift for Hongta people themselves. Hongta people know that the competition of market economy is the competition of strength. Only by constantly practicing internal strength, refined management, continuous improvement and continuous innovation can we continue to succeed; Facing the love of governments at all levels and the concern of consumers, Hongta is duty-bound to innovate independently and brand tobacco. Innovation needs courage and courage, and innovation needs courage and time. As Guo Shina, who successfully saved IBM, repeatedly stressed: "If the top management of the enterprise is not determined to spend at least five years on reform, then it will be difficult to succeed in organizational restructuring. You must prepare the whole company, spend a few years making such a plan, and understand that the difficult thing is not to start, but to make changes until the goal is achieved. " Therefore, Hongta has a long way to go to rebuild its glory, achieve outstanding enterprises and shape a century-old shop.