Mrs. Le will "make a big move" this year!

To accelerate growth again this year, Nestlé's local condiment company Totole has a clear overall plan.

"In 2021, the core strategy of our operations can be summarized in three sentences: growth is the only way to solve all problems, innovation is the only driving force for growth, and consumers and customers are the only focus of our innovation.

" Mrs.
Le President Zhang Xiqiang said in an exclusive exchange with Xiaoshidai recently.

He told Xiaoshidai that despite the impact of the epidemic in 2020, the company still achieved “very good year-on-year growth”.

Totole’s growth target will be even higher in 2021 and will maintain its goal of reaching 10 billion by 2023.

Speaking of the path to achieve accelerated growth, he revealed Totole’s plans for catering and retail this year, the innovation of operating model and organizational structure, the sinking of the "Umami Partners" channel launched at the beginning of the year, and new product planning.

Wait.

Totole President Zhang Xiqiang

Xiaoshidai introduced that in recent years, the product line of this well-known chicken essence company has greatly expanded.

At present, Totole’s seasoning products cover two major categories of solid compound flavor seasoning and liquid flavoring seasoning.
It has multiple sub-brands of different series and nearly 300 product specifications.
In addition to chicken essence, chicken powder, and soy sauce , Oyster sauce, recipe-style seasonings and other products.

Let's take a look together.

Model innovation, etc.

Model innovation, etc.

"Growth is the only way to solve all problems.

Although the growth of Totole has been very good in the past few years, I think it is not enough, so it must be faster in 2021.
As long as you work hard to achieve growth, you will be in cost, operation, Basically all problems in terms of costs and channels can be solved.
" Zhang Xiqiang told Xiaoshidai.

He cited as an example that condiment companies including Totole are facing pressure from rising costs on raw materials such as soybeans and corn, and if the business scale is further expanded, the problem of rising costs can be digested through a stronger scale effect.

So how to drive growth? Totole’s answer is: innovation.

“Innovation to me is far more than product innovation, but also innovation in our operating model, team organization and workflow.

Innovative products are a relatively easy part, because Nestlé has a very mature approach from the initial concept to the final launch.
(Idea to launch) product innovation process, we have been doing this in the past few years, and we will continue to work hard on the product side.
" Zhang Xiqiang said.

However, in his view, the real challenge lies in what method and model should be used to make the product after the new product is available.

"For example, there are the so-called distribution model, agency sales model, direct supply model, special supply model, etc.
After you have the product, how you want to operate, this model must be very clear.
" He said.

"In the future, we may open up this idea.

In terms of model, do we build together (with dealers)? Is it a joint model? Can it be customized? In terms of model, we can try to break through our boundaries.
" Zhang Xiqiang said.

Model innovation also puts forward requirements for organizational innovation.

"If you want to do well in these new products and new businesses, if you want a completely new model, you need to innovate in the organization.
For example, we have too many potential growth opportunities in the to B business.
For example, we have not implemented these models such as the point exchange with bank credit cards and the launch of gift platforms.
However, these opportunities are difficult to integrate into the current large system of Totole, so we need to adjust the organizational structure.
Responding to some new challenges brought by new products and new models.
" Zhang Xiqiang said.

Xiaoshidai learned that at present, Totole has taken the "first step" and set up a separate special team to do these "new businesses".

Totole President Zhang Xiqiang

"Similarly, with this team, we must greatly shorten the process and make decisions faster, so that we can better seize opportunities.
" Zhang Xiqiang said.

He described the innovation that Totole is doing is not "revolution" but "evolution".
"What we are doing today will be different from the past.
This is a gradual process, but after three or five years, if you look back, it will be earth-shaking changes.
" He said, all in all, Ms.
Tai would like to "focus on innovation.
" , For the purpose of serving consumers" to solve the problem of growth.

Retail and catering

Retail and catering

In the "three uniques" strategy proposed by Zhang Xiqiang, consumers and users are described as the only focus of Totole's innovation.
"We do so much innovation, all around how to serve consumers and customers well.
"

He told Snack Foods that for B-end customers, Totole’s focus is to create a full-category solution.
"More specifically, we want to provide these restaurants with a one-stop service platform, providing customers with condiments, not just chicken essence.
In recent years, we have taken a big step forward and are moving towards a company that can provide One-stop condiment solution company transformation.
"

For C-end consumers, Zhang Xiqiang said that the focus is on refined operations.
"Consumers have a thousand faces, some like our oyster sauce, and some like our chicken essence.
It is difficult for them to like all our products at the same time.
In this case, we need to carry out refined operations.
At the same time, we must also consider how to attract him to become a customer of our other products.
"

Totole launched its first oyster sauce product last year

Following the launch of dozens of new SKU products last year, Totole has a series of "new" plans this year.

On the one hand, for the core chicken essence business, Totole is continuing to high-end.
"This is what we must do.
The research on taste peptides we mentioned last year has made very good progress.
I expect to be able to launch a new upgraded series in the third and fourth quarters of this year.
This will be refreshing for everyone.
But we can't say too much at the moment.
" Zhang Xiqiang told Xiaoshidai.

On the other hand, for new category business, including oyster sauce, cooking wine, recipe-style seasoning, etc.
, Totole is continuously expanding SKU.
"This year, we will continue to work hard on product innovation, launch more different flavors, suitable for more applications in different scenarios, you will see more and more of our tricks, this is in full swing.
" Zhang Xiqiang revealed.
.

"The number of new products this year will not be less than 2020.
" He said.

Snack generation introduced that last year, Totole successively launched a variety of new products such as recipe-style seasoning, newly upgraded chicken powder seasoning, abalone sauce and oyster sauce.
This company, well-known for chicken essence, also has high hopes for the soy sauce business, hoping that soy sauce can become the "second pillar" besides chicken essence.
Totole expects that by 2023, 30%-40% of sales will come from these new products.

Speaking of the performance of these new products launched in 2020, Zhang Xiqiang said that "far exceeded the original expectations.
" "Like a recipe-style seasoning.
At first, I was worried that the unit price of this product was a bit expensive, the crowd was a bit narrow, etc.
, but the actual sales performance far exceeded expectations, so that I will have some directional adjustments and changes this year, and I will invest More resources are on such products.
"

Totole’s new "Recipe Seasoning" product launched last year

However, he also emphasized that all of Totole’s product innovations will focus on the “umami” field that it is good at.
"We will not go too far, such as chili oil, fish balls, etc.
, we will not do.
" He said.

The sinking strategy of "people and goods yard"

The sinking strategy of "people and goods yard"

In order to further release the growth potential, Totole will also focus on the vast low-tier cities and rural markets.

"We are doing very well in East China, but our (penetration rate) in the Midwest is not satisfactory.
Consumers in rural areas cannot buy our products unless they buy online.
So, in the sinking channel, I think There is room for two or three times (growth), not just a doubling.
" Zhang Xiqiang said to Xiaoshidai last year.

Right now, this condiment company is really starting to exert its strength.

Zhang Xiqiang revealed to Xiaoshidai that since the beginning of this year, Totole has launched an internal "Xianwei Partner" program for distributors.
"Traditional condiment companies have a large number of distributors.
We will use our distributor partners to sink the channel.
" He said, "We have thousands of distributors.
If each distributor we have 10 If we are a business partner, then tens of thousands of people can help us do this business well.
"

Totole's soy sauce products

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