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The road to starting a business from scratch

In China, just walk into a small shop and copy down all the catalogues. You will find that there are no more than three brands that appear repeatedly, and Wahaha may be one of them. In the past 15 years, everyone in China bought no more than three brands, and Wahaha may be one of them. This enterprise, which started from a school-run enterprise, now has an influence on the land of China that no one can underestimate.

On May 3 1 day, the 2003-2004 China Most Respected Enterprise Award Ceremony was held in Shenzhen, and 20 enterprises won this honor, among which Wahaha Group won this honor for the third time. Zong Houqing, president of Wahaha, spoke on behalf of the enterprise.

Zong Houqing, founder of Wahaha. During the period of 15, he established a beverage kingdom. At present, Tiny has grown into the largest food and beverage giant in China, with assets of 5.5 billion yuan, and has more than 50 wholly-owned or holding subsidiaries in 19 provinces and cities, with annual sales income of 7 billion yuan. "Wahaha" brand gallops across the country.

Regarding the popularity of Wahaha in China, we can do an experiment: in Tianchi of Changbai Mountain, the foothills of Altai Mountain, the jungles of Hainan Island, and the Qinghai-Tibet Plateau, we just walk into a small shop and copy down all the catalogues. You will find that there are no more than three brands that appear repeatedly, and Wahaha may be one of them; In the past 15 years, everyone in China bought no more than three brands, and Wahaha may be one of them. This "coincidence" is not coincidence. In fact, Wahaha products have covered almost every town in China. This enterprise, which started from a school-run enterprise, now has an influence on the land of China that no one can underestimate.

start from scratch

Zong was born in Hangzhou. After graduating from high school, as the eldest son, he took the initiative to come to Zhoushan Salt Field to exercise. A year later, I moved to Shaoxing Tea House, day after day, year after year. The best years of life have quietly passed away in the hard and monotonous days. From 65438 to 0979, after his mother, who was a primary school teacher, retired, she returned to her hometown of Hangzhou, where she had been away for many years. Because of the low level of education, I couldn't be a teacher, so I was arranged to be a doorman in a primary school. Until the day of 1987, the distribution department of school-run enterprises in Shangcheng District of Hangzhou, the predecessor of Wahaha, was established, and a small power of attorney suddenly changed everything.

That year, 42-year-old Zong led two retired teachers, borrowed 6.5438+0.4 million yuan, earned a penny by selling other people's soda, popsicles and stationery paper, and started a business. When he wore a straw hat, rode a flatbed to sell popsicle stationery, and quarreled with his brother unit next door under the Education Bureau in order to distribute the flowers needed by the coal stove, he never imagined that he would become a person in the beverage market pattern of China in 10.

1988, they began to process oral liquid for others. 1989, Hangzhou Wahaha nutritious food factory was established, and based on the theory of "homology of medicine and food" in traditional Chinese medicine dietotherapy, Wahaha nutritious oral liquid for children was developed and produced, which solved the problem that children did not want to eat. With the exact effect and the advertisement of "drink Wahaha to make it popular", the product became an instant hit and became popular all over the country. From 65438 to 0990, the output value of Wahaha, which was only opened for three years, exceeded 1 100 million yuan, completing the initial primitive accumulation. The economic miracle that happened on the primary school campus began to attract widespread attention from the society and governments at all levels.

Why can a small "children's nutrition oral liquid" succeed? Recalling the course of starting a business, Zong said: "When Wahaha made nutrient solution, 38 enterprises in the country were producing nutrient solution, but I found a blank spot in the market, that is, children's nutrient solution." At that time, the scene of grandparents, parents chasing after breastfeeding was staged in almost every family day after day. "So," Zong Houqing said, "I chose' promoting children's appetite' as the starting point." At that time, other nutrient solution manufacturers did not pay attention to this huge business opportunity that was about to surface, leaving a huge market space for Wahaha.

Now that more than ten years have passed, when parents are sad because their children don't want to eat, they will still think of the slogan "Drink Wahaha and eat delicious". In the nutrient solution market, although Wahaha failed to dominate in an all-round way, it almost ate the consumption fault of children.

After Zong Houqing and Wahaha became famous, someone once asked him if he regretted spending the most promising 15 years in the countryside. He said: "This 15 year, although it is the youngest and most promising time in my life, seems to have done nothing in the countryside. But it is really helpful for the whole life path. At least 15 years of hard life has tempered my fighting spirit. I can bear hardships, and at the same time I have developed a better figure. It laid a solid foundation for me to start a business again after I was 42 years old. "

It takes years to build a big ship-great ideas mature late.

199 1 year, with the support of the Hangzhou municipal government, Wahaha nutritious food factory, which originally had only 140 employees but had more than 60 million yuan in bank deposits, resolutely merged Hangzhou canned food factory, one of the insolvent national canned enterprises, and established Hangzhou Wahaha Group Company. As a result of "small fish eat big fish", the old state-owned factory with a debt of more than 40 million yuan turned losses into profits only three months later, and Wahaha quickly expanded its own team. Since then, Wahaha has gradually stepped into the road of scale operation.

From 65438 to 0994, Wahaha participated in counterpart support for the construction of immigrants in the Three Gorges reservoir area, merged three poor enterprises in Fuling and established Wahaha Fuling Branch. With mature products, mature technology and mature market, supplemented by strong financial strength and Wahaha's inherent brand advantages, Fuling Company has opened up the situation in one fell swoop, and its output value and profits and taxes have increased rapidly year after year, becoming one of the largest counterpart support enterprises in the Three Gorges reservoir area and one of the top 50 industrial enterprises in Chongqing.

Since 1997, Wahaha has built more than 40 holding subsidiaries in 22 provinces and cities, including Yichang, Hong 'an, Guangyuan, Jingyu, Shenyang, Changsha, Tianjin, Gaobeidian, Hebei and Chaohu, Anhui, which have achieved good economic benefits. The output value of foreign subsidiaries accounts for nearly half of the whole group company. Not only has it become a "locomotive" to promote local economic development, but it has also enabled Wahaha to sell real estate and develop into the largest and strongest beverage enterprise in China, achieving a "win-win" situation and achieving the goal of mutual benefit and win-win.

1998, Wahaha, after more than ten years of experience, feels full-fledged and qualified to compete with world-famous brands. After more than two years' careful research and development, it launched "China people's own cola-Wahaha very cola", which took the initiative to carry the banner of national industry and challenge internationally renowned brands in the beverage industry. Since/kloc-0 was put into production in May, 1998, Coca-Cola has sprung up everywhere, with an annual production and sales volume of over 600,000 tons, forming a tripartite confrontation with Coca-Cola and Pepsi.

From the beginning of listing, Coca-Cola has never fought a tough battle with Erle (Coca-Cola and Pepsi). Instead, it aimed at the vast midwest market in China and the vast rural market with a large population and vast territory, and delivered its own cola to every village and corner in China through the dislocation competition with Liangle and Wahaha's powerful marketing network layout. From 1998, Coca-Cola became an instant hit in China market, and has been selling well for several years, accounting for 12% of China carbonated beverage market.

Coca-Cola's strategy of relying on the countryside to surround the city succeeded in one fell swoop, but the market can't have a fixed sales strategy, and Wahaha is no exception. At present, Wahaha is gradually implementing the "push-pull combination" marketing strategy, from the initial use of traditional channel strategy to the terminal retail of the market, especially in the urban terminal market to compete directly with Liangle. In 2003, Coca-Cola still maintained a good sales momentum, with an annual production and sales volume of 620,000 tons, accounting for 35% of Coca-Cola's sales in China and 70% of Pepsi's sales in China. In 2004, Wahaha increased the cost budget of urban market operation, and planned to strengthen manpower, material resources and financial resources in the urban terminal market, ready to start hand-to-hand combat with Liangle.