Chapter 879 Recast
The restructuring of Nandu was proceeding step by step. By May, the restructuring was almost completed . After the initial completion, the new Nandu replaced the original Nandu, and the brand of Nandu was also changed from Jinling Nandu Food Factory to Nandu Food Co., Ltd.
The main controlling shareholder of Nandu is Xiaoqi's company. At the same time, state-owned assets still hold part of Nandu's shares. As for Nandu's previous shareholding ratio in Sitter, it has also been adjusted. In other words, although Song Yuanchao still retained the name and brand of Nandu through the restructuring of Nandu, it is actually equivalent to acquiring the entire Nandu.
After taking over Nandu, the equity problem that Sit had always existed was completely solved. After multiple shareholdings and cross-share swaps, Song Chaoyuan has actually become the real boss of Sit. Although Sit is still a joint venture in name, the change of controlling rights has been completed. It is just that on the surface, the foreign equity ratio of Sit is still within a reasonable range.
Previously, Song Yuanchao considered merging Nandu and Si Te, but he eventually gave up the idea.
As an old enterprise, it would not be worth it to solve the problem of Nandu in this way. After all, although Nandu has declined, its brand still has a certain influence. It would be a pity if Nandu disappeared like this.
After careful consideration, Song Yuanchao planned to allow Nandu to continue to maintain its independence and inject new vitality into Nandu through restructuring, thus leading Nandu to rise again.
In order to make Nandu rise again, in addition to solving the many problems of Nandu in the past, such as various problems in management and operations, the most important thing is to rebuild Nandu's brand. To achieve this, Nandu's product structure must be adjusted, because if it continues to rely on Nandu's old three products to conquer the world, Nandu will never be able to undergo a complete transformation.
In view of this problem, Song Chaoyuan has asked the R&D center of Si Te, that is, Zhan Linhong's team, to develop new products for Nandu's products. For Nandu's old products, such as milk candy and snacks, Song Chaoyuan instructed Xiaoqi to restore the original formula of production. As for the formulas that were changed in previous years for the so-called cost saving, they were all abolished.
Although the new formula saved a lot of costs and was called "process innovation", in fact, the quality of Nandu's products dropped sharply after the new formula was implemented.
When it comes to food, the most important thing that determines whether it tastes good or not is not only the difference in craftsmanship, but also the ingredients. Food made with solid ingredients will of course taste good, but once the raw materials are cut corners, the resulting food will naturally be bad.
Consumers are not stupid. They eat what they eat. Will they be fooled again after being fooled once? Now is not the past. In the planned economy, it was not easy to buy something. The things in the supply and marketing cooperatives were not difficult to sell, and there were only a few items. If you don't buy, someone else will.
But now, after so many years of reform and opening up, there are more and more commodities on the market, and shopping malls are full of goods. Take food for example, there are so many food companies in the country, producing so many products. If your food is not delicious, customers will naturally buy others. As a result, your product is no longer popular in the market and becomes unsalable.
After the restructuring of Nandu, the new Nandu could not do the same as before. Song Chaoyuan restored the original formula to change the problem of Nandu's decision-making in the past, and used this method to re-establish Nandu's product quality and brand among consumers.
While restoring the formula, Song Chaoyuan also advertised Nandu in various ways. The core of the advertisement was the slogan "Nandu food is made from real ingredients, Nandu food is healthy food."
Nandu has repurchased all the products that have been put on the market. In fact, it is not accurate to say that it is a repurchase, because Nandu’s sales method has always been mainly "agent sales". This sales method is to send the products to the channels for market launch, and then the salesmen (distributors) will settle the payment according to the account period after the products are sold.
This sales model is very common. On the surface, it seems to be fine, but in fact, this model is extremely risky. It will not only lead to product backlogs, but also slow down the collection of payment. Moreover, the phenomenon of triangular debt is becoming more and more serious, and the agency sales model accounts for a large part of it. Because of triangular debt, the payment for the agency sales products cannot be collected after the sales, but the sellers (distributors) continue to add goods, which makes the amount of accounts receivable increase, forming a vicious circle.
Since Nandu has been restructured, the sales model must be changed. The future sales model of Nandu will be the same as the model established by Song Yuanchao at Sit, and will no longer adopt the previous agency sales model. By buying back old products this time, Nandu can also directly cut off the operation of the previous sales model and promote a new sales model.
After the repurchase of the products, the old products of Nandu were no longer on the market. Next, Sun Yaoliang’s sales company gave Nandu support in terms of channels. Nandu organized a week-long product promotion activity in various shopping malls, food stores and even some core areas of the city in Jinling, and sent a large number of personnel to set up stalls to provide free product tasting to everyone.
Although Nandu has not been doing well in recent years and its reputation has declined a lot, it is, after all, a long-established local enterprise in Jinling. Many people in Jinling have been eating Nandu's products since childhood and still have deep feelings for the Nandu brand.
During the promotion, with the restoration of the formula and the authentic taste of the product, it won the approval of many consumers, especially some old consumers who were disappointed with Nandu before. When they tasted the current Nandu products, their eyes suddenly lit up, because the taste was exactly the taste in their memory, the taste they had eaten for many years before, and now this familiar taste is finally back.
After a week of product promotion, the results achieved in Jinling were very significant.
Due to the restoration of the product formula and the strict control of the production process including quality control, many consumers once again accepted Nandu's products. Many people even paid directly for their favorite products on the spot after tasting the products for free.
Song Chaoyuan is very satisfied with the result. The reason for this achievement is not only the restoration of the formula and promotional methods, but also that Nandu’s position in the minds of consumers has not been completely lost.
If in a few years, when Nandu becomes worse and worse and the reputation of its products is completely ruined, it will be very difficult to change people's impression of Nandu.
Scientists have proven that a fish's memory lasts only seven seconds, which means that a fish will no longer remember what happened after seven seconds.
In fact, it is the same with people. Although people’s memory is much longer, as time goes by, when people gradually forget, the position of Nandu in their minds will become completely different.
In the future, some brand products that were once familiar to people and accompanied many people for countless years suddenly disappeared one day. At first, many people would not be used to it, but as alternative products and other products appeared one after another, their habits would gradually change.
Many years later , the disappeared brands are reborn again, and they use the so-called "nostalgia" to attract people. But for various reasons, how useful is nostalgia? Moreover, too much time has passed. Due to many changes, the products that reappear are also different from the original products. Twenty or thirty years is not a short time. It is the replacement of two generations. Many things have changed. It is impossible for these brands to be recognized by consumers as before.
The success of the promotion gave confidence to everyone at Nandu and also helped to stabilize the unsettled morale of the people after Nandu’s restructuring.
Although the cost of products increased significantly due to the increase in raw material prices and the restoration of Nandu’s formula, coupled with the expenditure on promotional activities, Nandu actually did not make any money from this activity but instead incurred some deficits.
However, Song Yuanchao believes that these expenditures are worthwhile. After the effects are achieved, the sales of Nandu products will be different from before. Even if the overall profit will decline to a certain extent in the future, at least Nandu has improved from its original predicament by changing its products and sales methods and has begun to develop in a positive direction.
As for the future changes of Nandu, or the real benefits, Song Yuanchao did not focus on the original products. The original products were only used to restore Nandu's reputation, re-establish Nandu's brand, and give Nandu a certain confidence.
The new products that the R&D center is currently developing are the most important step for Nandu. First, stabilize the pace, regain the lost consumer market by improving the reputation of old products, and then open up the situation by launching new products. This is Song Yuanchao's real goal.
As for new products, Song Yuanchao carefully considered and chose snack foods and children's foods as the main products, with puffed foods as the core. Now Zhan Linhong and her team have initially determined the research and development goals and have achieved certain results. According to the current progress, it will not take too long to get the final results.
At the end of May, Song Yuanchao returned to Nandu and served as the chairman of Nandu. Song Yuanchao's return gave a shot in the arm to Nandu. There were many people in Nandu who were familiar with and understood Song Yuanchao. Even some young people who came later did not know Song Yuanchao, but they knew that Song Yuanchao was once the deputy director of Nandu and the former chairman of Si Te.
After Song Yuanchao returned to Nandu, he convened board meetings and Nandu senior management meetings in succession to determine Nandu’s new management team and management system.
Then, Song Yuanchao returned to the board of directors of Sit as a shareholder of Sit, and took the throne of Sit’s chairman again on June 1, Children’s Day.
