'Blue Ocean' Strategies Assist Yongye in Winning 2009 Chinese Enterprise Marketing Innovation Award

Dec 14, 2009, 09:38 ET from China Marketing Magazine

BEIJING, Dec. 14 /PRNewswire-Asia/ -- Mr. Xu Nan, President of the National Sales Center of Yongye attended the 2009 China Marketing Forum and delivered a keynote speech on December 11, 2009. At the event, Mr. Xu also received the 2009 Chinese Enterprise Marketing Innovation Award on behalf of the Company.

The China Marketing Forum, one of the largest, most influential annual summits in China's professional marketing sector, is considered to be the ultimate marketing event in China. The Chinese Enterprise Marketing Innovation Award ceremony functions as the recognition arm of the forum and recognizes outstanding companies which have succeeded in attracting and retaining customers, transforming the competitive forces of their markets and enhancing their profitability through innovative products, technologies and operating models. This Award represents the Chinese professional marketing sector's highest honor. Many of the facets of Yongye's professional marketing approach, which led to winning honors in the marketing industry, also led to their being honored with a "Top Business Model" Award in November 2009. Yongye shared this honor with several name brand companies such as Lenovo, Alibaba, Sunning Appliance, and Skyworth Group.

Recognition by China's marketing industry confirms that Yongye International's (Nasdaq: YONG) marketing efforts in promoting its Shengmingsu brand of products have paid off and they have seen a number of breakthroughs in 2009. During the company's "Outperform" campaign, the Shengmingsu brand posted a single store, one-day sales record of 41,628 bottles with the daily revenue reaching RMB 582,792 and gross profit reaching RMB 124,884. When compared to the previous year, the same store took one half year to achieve the same amount of gross profit. This record was only achievable in conjunction with the full marketing efforts of Yongye and its ability to implement innovative marketing strategies such as the ones found in the book, "Blue Ocean."

The Chinese Enterprise Marketing Innovation Award signifies recognition of Yongye's excellent performance by industry professionals and the overall media community. They attribute the success of the Shengmingsu brand to the Company's "Blue Ocean" strategy that seeks out vertical integration rather than strictly focusing its attention on its direct competitors. First of all, Yongye's Shengmingsu products help farmers improve production and yields through its "eight features" product. Secondly, leveraging innovative marketing approaches such as "to see is to believe - reverse marketing" and "integrated cooperation between vendors" thus breaking the stalemate between traditional industry players. With this, Yongye has broken ranks with traditional ways of marketing agricultural products in China. These innovative steps taken by Yongye to break traditional rules have allowed the company to earn a big success in the market and lead the industry into a new era. For example, the group devotes its resources to building every county- level market into a "base area" which helps farmers make money by demonstrating to them the effects of increased crop yield increases through experimental fields. They are now inspiring new marketing talent and managing the marketing team and dealer network in an appropriate way to ensure efficient implementation of their corporate decisions. They are also taking advantage of foreign investment from capital markets to jump start the Chinese agricultural industry's maturity in marketing.

At the same time, this year's panel members believe that although Yongye is a relatively new entrant into the thousand year old agricultural product sector, the company's marketing model used to commercialize its Shengmingsu product portfolio in the sector is rapidly replacing original marketing models. In addition, the panel commented that they expect the model to point to future trends in the sector and to have a far-reaching effect, boosting the marketing activities of the agricultural products sector.

Mr. Xu Nan, President of the National Sales Center of Yongye, also delivered a keynote speech on "Innovative Marketing Makes Yongye Successful" at the 2009 Marketing Forum. In the speech, Mr. Xu shared Yongye's innovative marketing experience with attendees of the event and gave a detailed analysis on the company's successful models such as "to see is to believe - reverse marketing", "integrated cooperation between vendors" and "Yongye's wealth creation model." In addition, he gave a brief introduction on Yongye's excellent marketing team and commercial support systems with modern management among others.

SOURCE China Marketing Magazine