At the beginning of the 21st century, Master Kong and Unification monopolized 80% of the instant noodle market, and the remaining 20% was also occupied by small brands such as Hualong , White Elephant and Nanjie Village.
Obviously, in this saturated and competitive market, it is difficult for new brands to break through and succeed.
In 2006, it created a dark horse in the instant noodle industry, achieving an annual sales revenue of 2 billion yuan with a thunderous trend, and successfully won the throne of the industry boss.
This dark horse is the "Five Grains Dojo", and its founder is Wang Zhongwang.
He established China's first non-fried instant noodle production line within 3 years, "defrauded" Master Kong of 300 million funds, but declared bankruptcy overnight.
What's going on in between? Let the Gotani Dojo fall from the sun to the abyss.
Wang Zhongwang's flash in the pan, is he not playing cards according to the rules? Or is it creation to make people?
Wang Zhongwang is a native of Longyao County, Hebei Province, and because of poverty, he went out to work after junior high school to earn money.
Wang Zhongwang has been to Tianjin, Beijing, and Shenzhen. He went to coal kilns, collected rags, and resold small commodities.
In 1996, Wang Zhongwang saved some money on hand, and he was born restless, so he wanted to use this original capital as leverage to pry open the door to wealth.
Looking around the world, what is it good to do?
At that time, many mainlanders went to coastal cities such as Guangzhou and Shenzhen to pan for gold. Wang Zhongwang, on the other hand, felt that the gold rushers in the north, Shanghai, Guangzhou and Shenzhen were already overcrowded, and the cities in the interior had more prospects for development, and he was ready to follow the development path of rural to urban development.
At this time, Wang Zhongwang's Longyao fellow Fan Xianguo had opened the market for rural instant noodles.
Fan Xianguo's instant noodles are called "Hualong Noodles", which was founded in 1994, two years later than Master Kang, who started in Tianjin, but Master Kong occupies the first- and second-tier city markets, and Hualong noodles mainly focus on the rural market, and the development momentum is strong.
Wang Zhongwang studied Fan Xianguo's sales and felt that it was necessary to expand the market in the northwest and seize the opportunity.
He found Fan Xianguo to take the initiative to ask Ying to be a sales agent in the northwest, Fan Xianguo actually had this intention a long time ago, plus Wang Zhongwang is a fellow countryman, so he gladly agreed, and in order to support his fellow countryman, Fan Xianguo gave the most favorable conditions.
Because Wang Zhongwang had never done sales, Fan Xianguo only made him an agent in Lanzhou District, promising to gradually expand the agency area according to the sales situation.
Perhaps it is the sales experience accumulated in the early years, or maybe it is a good piece of sales material by nature, Wang Zhongwang opened his door as soon as he arrived in Lanzhou.
With the increase in sales year by year, the sales area under Wang Zhongwang's jurisdiction has expanded year by year, and in less than three years, Wang Zhongwang has become the general agent of the northwest region of Hualong noodles.
The sales performance is getting better and better, and Wang Zhongwang's conceited side begins to appear, and he begins to collide with Fan Xianguo repeatedly in sales skills, management concepts, and commission amounts.
Wang Zhongwang felt that the Hualong platform that initially allowed him to show his skills could no longer meet his ability.
Instead of being controlled by others everywhere, why not build your own platform, fully exert your reach, and play your own ideas?
Wang Zhongwang began to brew and set up his own instant noodle company, he pulled 13 backbones from Hualong Company, raised 1.7 million yuan, and established his own "Third Prince Food Co., Ltd."
The ideal is plump, but the reality is very skinny.
In 1996, when the Third Prince entered the instant noodle market, Master Kong was the boss of the industry, and several instant noodles such as Unification, White Elephant and Hualong below had monopolized 80% of the Chinese market.
The remaining 20% of the market is also difficult to penetrate. Therefore, it is difficult for a small workshop like the Third Prince to produce 30,000 packs of instant noodles a day to take root, let alone develop and grow.
The instant noodles produced by Wang Zhongwang are a clone version of Hualong noodles, using the same sales channels and sales methods as Hualong , in front of Hualong this big brother, the third prince has no ability to compete and can only take the road of low price.
The price of instant noodles of the third prince is low, and Hualong has followed the price reduction, which is lower than that of the third prince.
In the end, such a competition method can only be won by Hualong with deep roots.
Although it is not explicitly said, in fact, Wang Zhongwang and his 13 partners have been fighting against Hualong all the time, to put it bluntly, it is to drag Hualong off the horse, so that the third prince can replace him. The goal is to defeat Hualong and replace it.
As soon as he entered the market, Wang Zhongwang was severely lectured by the market, and just when he was dizzy and struggling to find a way out, one thing made the "Third Prince" instant noodles worse.
It turned out that Wang Zhongwang's company name was "Three Prince Food Co., Ltd.", and the instant noodles produced were called "Three Princes", and the packaging of the dough cake had the pattern of Nezha Dragon.
The pattern was later viciously defamed by Hualong suing Wang Zhongwang.
Hualong reasoned that Wang Zhongwang compared himself to Nezha, "dragon" is "Hualong ", and Nezha captures the dragon obviously means to destroy Hualong .
At the request of the relevant departments, the pattern of the outer packaging of the third prince is only the third prince of Nezha wearing a red belly pocket.
Several battles with Hualong made Wang Zhongwang realize that he could no longer be a head-on enemy of Hualong anymore, otherwise it would not be a defeat for both, but an egg touching a stone.
Wang Zhongwang decided to take a different path, no longer going head-to-head with his old club, but taking a differentiated approach.
So he used his sales experience to re-examine the market.
Wang Zhongwang found that traditional instant noodles are mainly boiled, and there is also a kind of dry noodles on the market, which has not been paid attention to because of limited sales.
He decided to make instant noodles that are both dry and suitable for soaking, and are not expensive, and are launched for small towns and rural markets.
The dough cake was produced, and Wang Zhongwang quickly opened up the market by using the sales channels he had rolled out while he was in Hualong time.
In order to quickly seize business opportunities, Wang Zhongwang launched more preferential promotion strategies, such as manufacturer promotion, cumulative quantity cashback, purchase ranking cashback, sales champion rewards and so on.
Relying on the sales strategy of comprehensive flowering, the third prince's two ways of eating instant noodles have broken a bloody road in the market, quickly occupying half of the urban and rural markets.
From entrepreneurship to market, it took less than two years for the third prince to exceed the 100 million yuan mark in annual sales.
At this time, Wang Zhongwang established Zhongwang Group.
Taking advantage of the market where instant noodles were spread out, Wang Zhongwang took advantage of the victory, and he hurriedly launched a new brand "A Bowl of Incense".
A bowl of incense mainly hits the mid-end market, and Zhongwang Group's products began to penetrate into medium-sized cities and gradually expand their sales population.
In 2002, the sales of the third prince reached 500 million yuan, becoming the fifth among the top 100 fast-growing enterprises in China.
The development momentum of Zhongwang Group has caused panic in Hualong Wang's old owner. Seeing that Wang Zhongwang took half of his market, Hualong decided to suppress it.
Wang Zhongwang produces two-eat instant noodles, and Hualong also produces two-eat noodles, and the price is lower.
Wang Zhongwang's "A Bowl of Incense" is aimed at the mid-end market, and Hualong produces "Jinmai Lang" and invites the famous actor Zhang Weijian to endorse.
Soon, Jinmai Lang was sold all over the country, quickly occupying more than 300 large cities and more than 2,000 small and medium-sized cities, and achieved annual sales revenue of 1.5 billion.
Jinmai Lang's fanaticism made Wang Zhongwang sell "a bowl of incense" at a reduced price again. The price war between the two companies has entered a stalemate. The price war hurt Wang Zhongwang greatly.
While he was anxiously looking for a new way out, good luck quietly arrived.
It turned out that the sudden emergence of Zhongwang Group not only affected Hualong sales and profits, but also attracted the attention of Master Kang, the leader of instant noodles.
Master Kong is the leader of the instant noodle industry, and the market has always been in first- and second-tier cities, accounting for less than 10% in rural areas and small counties.
Due to Master Kong's high price, the market in large and medium-sized cities is basically saturated, in order to expand market share, the company decided to develop rural and small town markets.
In order to take a shortcut, Master Kong decided to cooperate with instant noodle companies with a high market share in rural areas.
They first considered Hualong and Zhongwang Group, which are adjacent to Tianjin, as partners, and after investigation, Zhongwang Group won.
After several rounds of negotiations, the two companies reached a cooperation agreement: the joint venture established Zhongwang Investment Group Co., Ltd.
Master Kong contributed 300 million yuan in cash, the third prince's existing instant noodle industry was worth 300 million yuan in kind, and the shares of each station were 50%.
On the basis of the original 33 production lines, the company has expanded 35 more for the production of affordable noodles and occupied the vast rural market.
The joint venture company is chaired by Wang Zhongwang and a manager from Master Kang's side as vice chairman.
In 2003, Wang Zhongwang signed a cooperation agreement with Master Kang's head in Beijing, and he excitedly claimed that his grassroots experience was king in rural market sales.
A spokesman for Master Kong called it "a complementary integration of competitiveness".
After the agreement was signed, Master Kong's 300 million funds entered Wang Zhongwang's account a lot.
However, Wang Zhongwang actually did not implement the agreement and went on 35 affordable production lines.
Where did Master Kong's 300 million funds go?
With 300 million funds, Wang Zhongwang did go on the production line, but not according to the agreement, on 35 affordable production lines.
In fact, Wang Zhongwang has 10 high-end instant noodle production lines.
This is really funny, Master Kang, who occupies the high-end market, wants to occupy the low-end market, but Wang Zhongwang, who occupies the low-end market, is bent on entering the high-end market.
It turned out that when engaging in low-price competition with Hualong , in order to de-homogenize and differentiate, Wang Zhongwang once visited Japan, where instant noodles were first launched.
In Japan, he saw a new type of non-fried instant noodles in the Japanese market, and when he asked, he learned that the Japanese began to pay attention to health preservation, believing that fried instant noodles can easily lead to diseases such as high blood pressure.
Wang Zhongwang was inspired and decided to use non-fried instant noodles, but the non-fried instant noodle production line, one requires an investment of more than 20 million yuan, and the one-time fixed investment is equivalent to 20 times that of ordinary instant noodles.
Wang Zhongwang could only bury this idea temporarily in his heart because of the shortage of funds.
Who knows, if you want to sleep, someone will send a pillow, and Master Kong happily sent 300 million funds, which is really a good thing that has fallen from the sky.
After Wang Zhongwang got the money, he secretly got on the production line of 10 non-fried instant noodles without Master Kang.
When Master Kong found out, the raw rice had been cooked into rice.
Because of the unilateral breach of the contract, Master Kong withdrew the funds.
But 300 million yuan has already been spent by Wang Zhongwang, what should I do?
In order to compensate Master Kang, Wang Zhongwang endured the pain and love, and he gave Master Kang three production bases and the "A Bowl of Incense" brand under his name.
Freed from Master Kang's restraint, Wang Zhongwang began to go on the non-fried instant noodle production line according to his own plan.
He gave this non-fried instant noodle a very connotative name - "Five Grains Dojo", and invited Chen Baoguo, an old mainland actor, to endorse it.
The advertising slogan of the Wugu Dojo "non-fried, healthier" poked at the pain points of urban white-collar workers and middle-class citizens, and sales were unprecedented.
In 2006, the sales of Gotani Dojo reached 2 billion.
Seeing the business opportunities, Wang Zhongwang decided to fully expand the production and sales of Wugu Dojo, and he wanted to march to first-tier cities across the country and become the leader of high-end instant noodles in one fell swoop.
At this time, Wang Zhongwang's heart swelled faster than his market.
He invested 1.8 billion yuan to establish more than 30 branches across the country, added 38 non-fried noodle production lines, and expanded the number of employees to 20,000.
In terms of promotion, Wang Zhongwang paved the way with heavy money, and the advertising cost of the Central Channel alone reached 180 million yuan.
In order to quickly occupy the market, the sales price of the Goya Dojo also touched the bottom line of cost.
There was a long queue of trucks waiting to be picked up in front of the Gotani Dojo.
In 2006, Wang Zhongwang became the first among the top 100 domestic enterprises with a growth rate of 2,000 percent.
It is often said: the peak is the cliff.
This sentence is really appropriate for Wang Zhongwang.
When Wang Zhongwang made the advertising slogan "non-fried, healthier", he had become the common enemy of all fried instant noodle companies.
The fried noodle industry joined forces and hired health experts to examine fried and non-fried noodles.
The result is that fried noodles cannot cause cancer, and non-fried noodles cannot play a role in health preservation.
This undoubtedly gave Wang Zhongwang, who was advancing vigorously, a blow to the head.
When external worries arrive, internal troubles also come.
First of all, the management of the Wugu Dojo has different opinions, Wang Zhongwang wants to attack the city with full firepower, but some executives want to fight steadily.
In order not to disturb the morale of the military, Wang Zhongwang dismissed some senior executives, resulting in unstable military morale and chaotic management of the management.
In 2007, bank loans, raw material payments, workers' wages and other expenses were accumulated for a long time, and the capital turnover was difficult, and workers complained and slackened.
At the beginning of 2008, due to lawsuits from all over the country to collect debts from the Gotani Dojo, the Gotani Dojo Company was blocked, and the book funds were only 75 yuan.
In order to repay the debt, Wang Zhongwang could only endure the pain of selling the Wugu Dojo, and in 2009, he sold the Wugu Dojo to COFCO for more than 100 million yuan.
However, COFCO also failed to save the "Five Grains Dojo", and in 2017, the brand was sold to "Keming Noodle Industry" for more than 50 million yuan.
Since selling the "Five Grains Dojo" at a low price, Wang Zhongwang has rarely appeared in public.
In 2014, Wang Zhongwang was also judged by the court to be an untrustworthy executor and put on the "Lao Lai" blacklist to restrict high consumption.
Although his Zhongwang Investment Group Co., Ltd. has been operating, there has been no such person in the rivers and lakes since then.
The "Five Grain Dojo" he founded was revived in the hands of "Keming Noodle Industry", and sales increased by double-digit percentages every year.
In 2022, "Five Grain Dojo" will become popular again by relying on a popular variety show, and sales will skyrocket.
If Wang Zhongwang learned of this, I don't know how he would feel?
It's a pity that "the green mountains can't cover it, after all, the east flows away", even if the Goya Dojo can return to the peak era, all this has nothing to do with him.
-END-
Author: Ai Xizi
Editor: Willow Leaf Nagging
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