“Breaking the road” of cutting-edge consumer goods brands From Mckinsey

The following is the “Breaking the road” of cutting-edge consumer goods brands From Mckinsey recommended by recordtrend.com. And this article belongs to the classification: network marketing, Mckinsey .

With the warming up of the new consumption track, new brands have become an important opportunity for enterprises to enter the market. Facing the ever-changing consumption environment, enterprises can promote seven thinking changes and move towards the breaking road of cutting-edge brands.

In the consumer goods industry, brand means value, cognition and sales. With the rise of new consumption boom, new brands have become the “stepping stone” for enterprises to enter the consumer goods industry. However, the competition in the consumer goods market has already entered a white hot stage, and it is difficult to incubate new brands from 0 to 1. According to the public data of tmall, the 1-year survival rate of new brands settled in tmall is less than 30%. Even if new brands survive the start-up period, they will face multiple challenges such as improving penetration and loyalty in the ever-changing consumption environment.

How should the brand do a good job in product, marketing and operation? What measures can help brands keep up with cultural trends and capture the hearts of young consumers? How can new brands break the situation when it is difficult to expand, few re purchases and fast aging? This paper will deeply analyze this series of key problems to help enterprises grasp new brand opportunities and break through the market encirclement.

Four successful measures, racing consumption track

With consumer goods becoming a hot track, enterprises often face four difficulties when incubating new brands: first, how to quickly define the customer base. Enterprises not only need to accurately grasp consumer preferences, but also need to avoid making brands too small; The second is how to develop products quickly. Traditional new product development usually takes 9 ~ 24 months, or even longer, which is difficult to adapt to the rapidly changing consumer preferences; Third, how to quickly explode products. It is difficult for small brands to make waves in the current Internet Ecology, and it is increasingly difficult for social marketing such as Shuangwei and xiaohongshu to “get out of the circle”; The traffic premium is obvious, consumers’ sensitivity to advertising is reduced, and the launch cost of Pan media (including large-scale TV advertising, outdoor advertising, etc.) is high; Fourth, how to quickly enhance value. Enterprises need to raise product premium and raise funds quickly to obtain higher valuation in the capital market.

However, there are many successful cutting-edge brands on the “hundred racing” track. Through the analysis of these successful cases, we observed the winning measures around the four dimensions of “people”, “goods”, “field” and “organization”.

People: target population stratification

Defining target consumer groups is the first step in shaping new products. The traditional definition method (based on basic attributes such as gender, age group and region) is not accurate enough today. First of all, China has a large population and a large number of consumers with similar basic attributes, but individual living habits and consumption tendencies are different; Secondly, the same consumer has different buying habits and buying points for different categories. Therefore, the traditional definition method has limited reference significance for new brand development. For example, in the early stage, a home appliance brand tested the labels of the people actually purchased through marketing tools and found that the results “almost did not coincide” with the people defined by itself.

measures

Identify a certain consumer group, understand the subculture of its circle, and accurately cut in, and then continuously deepen the understanding of the circle and adjust the playing method through digital tools.

Core objective: to establish a consumption “tide brand” with subculture attribute, so that when consumers see the product, they think it is in line with aesthetics; Value for money after purchase; After use, think it “knows me”; When sharing with friends, think “this is me”, “fun” and “have face”.

Case: a cutting-edge carbonated beverage brand

Starting from the subculture of “punk health” of generation Z (both healthy and human, both delicious and low-fat), iteratively launched the products with the main three “0”, supplemented by Japanese packaging design, and successfully broke through the encirclement of foreign enterprises;

Obtain data from e-commerce, smart offline contacts and other channels, revise the crowd portrait, and then deepen the “Three Outlooks resonance” of the target group through targeted social grass planting and hot drama sponsorship;

By positioning the market gap through data, we launched a new matrix of supplementary products such as tea and soybean milk to seize more consumers’ minds.

After several years of development, at present, the annual sales of the brand exceeds 2.5 billion yuan, the brand valuation is close to 40 billion yuan, and the P / s valuation multiple is as high as 16 times.

Goods: iterative product development

Many big brands have been entrenched in the industry for more than 10 years, and cutting-edge brands are difficult to gain advantages in technology, R & D talent reserve and so on. Due to the lack of technology and human resources that can be “used”, it is more important for the brand to optimize the development speed and accurately grasp the needs of channels and consumers, or overtake in curves.

measures

In product development, we should “start from the end”, introduce the voices of producers, channels, media and consumers as soon as possible, integrate resources in advance, avoid direction deviation, and make iterative correction in each link in a small step.

Case: a well-known domestic cosmetics brand

Set the tone clearly when the product is approved – create a beauty product with strong social attributes, and integrate “social” into every process of product development:

Product concept stage: understand the latest social hot spots through the background data analysis of social platform; Introduce KOL / Koc (Expert / consumer opinion leader) to create jointly;

Feasibility evaluation stage: introduce the manufacturer and technical party to develop corresponding solutions;

Product R & D and production stage: rapid trial and error, close cooperation with OEM / ODM manufacturers, and pursue products with more social potential based on market feedback;

Product launch stage: communicate with KOL / Koc in advance, test grass planting content in small and medium-sized fan groups, and increase the possibility of “out of the circle”.

From project approval to listing, the brand took less than 6 months. By solidifying the mechanism, the brand has successfully created dozens of popular models.

Field: channel play poly coking

Marketing is another difficulty after product development. New consumer brands often face the Red Sea competition when entering the Bureau. If they want to seize the share with limited marketing budget, enterprises need to concentrate resources and crack down on 1 ~ 2 key channels quickly and accurately.

measures

First, the channel should be accurate: new brands need to comprehensively evaluate their own endowments and competitive advantages, develop their strengths and avoid their weaknesses, and cut the channel.

Second, the selection and playing method should be fast: enterprises need to size up the situation and make correct decisions in a short window period; The brand needs to cater to the changing market trend, competitive environment, internal team, digital environment and traffic playing methods in the rapid growth stage.

Third, seize the “air outlet”: new brands need to maintain keen market insight, quickly adapt to the traffic law of new platforms, new brands and new KOL, reach consumers faster and better, seize the opportunity to break the waves by “wind” and win traffic dividends.

case

An emerging carbonation and tea brand

“Avoiding weaknesses” in offline channels: focus on chain convenience stores, lay more than 10000 convenience stores within a year, avoid direct competition with giants such as Coca Cola in strong channels (modern supermarket channels and retail catering terminals), and quickly achieve sales of more than 100 million;

“Developing the strengths” of online channels: focus on social content channels with rich team operation experience and giants that have not yet formed an absolute advantage. Relying on the differentiated selling points and high-value packaging of new products, and using the ecology of little red book UGC (user original content), more than 70000 notes have been quickly accumulated.

A cutting-edge coffee liquor brand

Take advantage of the “wind” of the platform and always pay attention to the changes of platform orientation and traffic distribution logic. Tiktok has seized the flow signals of the “tiktok” and “quickly built”, and has been operating for 3~4 months. The monthly sales of the brand self service have reached 700 thousand, and become the first category of the platform.

2. Take advantage of the “wind” of other brands, cross-border joint names, share traffic and go to sea together;

Three times KOL’s “wind”, high-quality content is always the password to unlock traffic, invest in creative KOL from the perspective of development, and precipitate high-quality content assets for new brands with its creative ability.

Organization: operation mode lightweight

Before the launch of the new brand, its development has not been verified. Its core team is usually small and often requires one person to hold several positions. The organizational structure needs to be streamlined, efficient and controllable, and quickly respond to business needs to support the heavy work of brand incubation.

measures

Enterprises can build the operation mode of “big system and small sharp knife”: light in organization and independent decision-making in process. In addition, enterprises can also operate light assets by grafting external resources: from product concept, development to channel operation are completed by external suppliers.

First, use professional ability to help new brands quickly improve their functions in a short time, and cultivate the professional ability of internal employees through collaborative work;

Second, through past service experience, help the new team avoid pits and mine clearance and find a shortcut to growth;

Third, graft the resources of suppliers and other customers to explore cooperation opportunities for new brands in product R & D, marketing and sales channels.

Case: a health wine company

When creating new products, 3 ~ 4 people are selected internally to form a “small sharp knife” to undertake the core work of the initial stage of the new brand, including market demand research, brand creation, product testing, etc;

The original “big system” of the enterprise provides financial, legal, procurement, supply chain and other support;

Set up a more flexible independent approval mechanism for new businesses, achieve a batch every day, discuss the approval standards one by one, and support the parallel approval of various departments to shorten the link, so as to avoid falling into a miscellaneous “follow the process”.

Seven thinking changes to lay the foundation for “breaking the situation”

The above four initiatives are the “art” for enterprises to incubate new brands. In the final analysis, when incubating new brands, enterprises need to layout earlier, closer to consumer channels and more objective key decisions, which requires thinking, that is, the transformation of “Tao”. Therefore, we have summarized seven thinking changes to help enterprises lay a solid foundation for “breaking the situation”.

Change I

From “brain beating” R & D to data-driven innovation

The incubation of new brands is a process of collision and combination of sensibility and rationality. Perceptually, be sensitive to the unmet shopping needs of consumers; Rationally, make accurate decisions through testing and big data. The “pat your head” R & D method that only pays attention to perceptual intuition usually leads to products that do not meet consumer needs and are eventually ignored.

In the process of brand incubation, enterprises are suggested to test step by step and use the “cut” process for iteration:

C (concept): put forward concepts and design multiple schemes;

U (utilization): operation execution, transforming concepts into assessable objects or specific schemes and actions;

T (test): market test, which can collect as many data samples as possible through field evaluation, e-commerce test and other tools to support decision-making and correct deviation in the next iteration.

Enterprises need to be in “awe” of the market and data, iterate in the pursuit of perfection, take practical data feedback as the judgment standard, and optimize while executing.

Change II

From being a “universal” popular brand to being a “trendy brand with cultural connotation”

After more than 10 years of evolution, consumers’ perception of “tide” has evolved from “brand logo = tide” to “culture = tide”. Western street culture such as hip-hop, Japanese culture such as youth dimension and national fashion culture such as Hanfu have become the “fashion” wind vane of young people. A brand needs to convey an attitude consistent with consumer value, so that it can be regarded as a “know me” brand, which will cause fission and increase stickiness.

Therefore, when identifying target consumers, cutting-edge brands need to cut into its circle, deeply understand its subculture spiritual core, dissect its cultural elements, internalize them into the “iconic” style of products and the “attitude” of brands, and finally form their own brand culture – the moat of cutting-edge brands.

Change III

From big and comprehensive to “breaking the face with points”

The era of big advertising and big channels has passed. In the era of information explosion, the role of traditional pan media marketing in the cultivation of consumers’ mind is weakening day by day, and huge advertising investment will also pose a challenge to the cash flow of enterprises.

It is suggested that enterprises anchor 1 ~ 2 groups and 1 ~ 2 channels through early iteration to focus on 360 ° marketing. In terms of publicity, through digital advertising, social marketing and other means, ensure that each potential consumer is touched more than 5 times, or even more than 10 times, and establish consumer associations in a short time; In terms of channels, focus on breaking through in a short time to create a model for key channels / regions. On the one hand, build a reputation in the industry and reduce the cooperation threshold of other channels. On the other hand, copy the playing methods to improve the success rate of entering other channels.

Change IV

From “short-term profit” orientation to “scale first, then profit” orientation

The development of FMCG Brand basically follows the principle that the larger the scale, the higher the profit.

Before the project is approved, the enterprise needs to make psychological preparations for low profits or even losses in the early stage, use more funds for market development, improve penetration and sales volume as soon as possible, use the scale effect to reduce production and operation costs, obtain reputation and natural flow, reduce the average customer cost, and finally make profits. Enterprises can even consider introducing investment in the early stage to accelerate the process of market expansion.

Change V

From “copy experience” to “approach exploration”

The rise of most cutting-edge brands takes advantage of the “wind” of a certain wave. The market is changing and rote is no longer applicable. Enterprises need to make up their minds to find their own path.

For example, the industry generally believes that the live broadcast is the “poison” of the new brand. The big anchor does not accept it, and the small anchor cannot afford it. He knows that the live broadcast is a loss, but he has to do it. However, when we helped an enterprise build a new sub brand, we tried to cooperate with more than 20 KOLs, and finally precipitated four middle waist KOLs with long-term cooperation. The single Gmv (website transaction amount) exceeded 150000 yuan, and the comprehensive return on investment (ROI) exceeded 1.5. Live broadcasting, as an online channel integrating quality and efficiency, can help brands gain a firm foothold in the market.

Change VI

From “large team and process” to small unit of agile operation

Large team size means high communication costs. In the process of new brand building, fighters are often delayed.

It is suggested that the enterprise establish a small unit of agile operation, which can be a research group of a subject or an active SWAT team, and grant certain independent decision-making power.

For example, when helping an enterprise prepare for the 6.18 e-commerce promotion, we helped it set up a combat team to track sales in real time, analyze key data such as consumer path every day, and agile iterative optimization plan. At the same time, the operation team shall assume the responsibility of resource allocation, mobilize all departments as a hub and concentrate on tackling tough problems. In this process, we found that the smallest combat unit improved the communication efficiency by nearly two times. Finally, the goal of e-commerce was exceeded, and the sales volume increased by 36% year-on-year while the resource investment remained unchanged.

Change VII

From “telling a good story” to returning to value

The new consumption boom has lasted for several years, and the heat of some sub industries has begun to subside. In hundreds of financing cases, investors have summed up the experience and lessons on the valuation of cutting-edge brands – paying more attention to the brand core and its value. Therefore, “telling a good story” is no longer a trial and error in the capital market, but has become an auxiliary means.

There are three key points in brand value construction: scale, profit (or profit model) and brand assets. New brands need to straighten out their mentality, develop steadily, constantly optimize their operations, accumulate consumers and data assets, consolidate their basic market and return to positive value management while doing a good job in the “three financial statements”.

FMCG takes the word “fast” as the head, which not only explains the rapid change of market environment, but also reveals the possibility of “the old king changes his master and the new king is born”. For cutting-edge brands, this is the worst era and the best era. Only by keeping up with the tide of the new consumption era in thinking, management and operation can enterprises improve the survival rate of new brands and highlight the encirclement of “oligarchs”.

McKinsey hopes that this article can help more enterprises successfully incubate new brands and create commercial and social value. We also hope that each cutting-edge brand can find its own way to break the situation, inject new vitality into the industry and release the great potential of new consumption.

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