Core Insights - The article discusses the pricing and market performance of Xieti Dairy, a brand under Yuexiu Dairy, which focuses on high-end organic milk products. The brand's initial pricing strategy has significantly changed, with current prices being lower than when the products first launched [2][3]. Pricing and Product Comparison - Xieti's 6-pack organic milk is priced at 19.9 yuan, while a 10-pack of 250ml milk is priced at 48 yuan, indicating a shift from its initial higher pricing strategy [2]. - Initially, Xieti's products were priced at 12.8 yuan for a 200ml box and 78 yuan for A2 milk, reflecting a premium positioning that has not been sustained [2]. Marketing and Brand Positioning - To enhance market presence, Yuexiu Dairy invested heavily in marketing, including exclusive sponsorships of popular TV shows, which increased brand visibility but did not translate into proportional sales growth [2][3]. - The brand's slogan emphasizes the natural origins of its milk, aiming to attract consumers seeking premium products [2]. Market Dynamics and Consumer Behavior - The dairy market is experiencing a downturn, with a significant decline in retail sales growth for regular milk products, showing a year-on-year decrease of approximately 2% in the first three quarters [3]. - Consumers are becoming more price-sensitive, leading to a dilution of the perceived value of high-end products, as they now prefer cost-effective options over premium-priced items [3][4]. Competitive Landscape - The high-end milk market is already dominated by established brands like Jindian and Telunsu, which have created strong brand recognition and loyalty, making it challenging for Xieti to penetrate the market effectively [4]. - The competitive environment has led to price wars among high-end milk brands, further impacting Xieti's pricing strategy and market positioning [4]. Challenges Ahead - Xieti Dairy faces significant challenges in establishing brand differentiation and gaining consumer acceptance in a crowded market, where merely relying on product features and nutritional claims may not suffice [5].