network marketing

What is the logic behind marketing’s ability to become a new consumer brand?

The following is the What is the logic behind marketing’s ability to become a new consumer brand? recommended by And this article belongs to the classification: network marketing.

The author of this paper is a researcher in the official think tank of massive engine: Zhou Ting’s new consumption wind is blowing too hard, thanks to the “new infrastructure of consumption digital” in recent years It is just like the bicycle sharing and unmanned shelf five years ago, which has become the “son of choice” and has been warmly welcomed by the capital among the numerous investment targets. The rising consumption trend has also become a highlight of the consumer economy in the epidemic.

From Yuanqi forest, ramen, three and a half meals, to huaxizi, perfect diary, to ubras, jiaonei, and bubble Mart in the field of Chaozhou play, all the new brands that take advantage of this trend have become the “new favorites” of Z generation consumers. Some brands’ revenue has even increased 50 times a year, and the growth rate of traditional brands can only be matched. In addition, from the tiktok index, the new consumer brand is more prominent than traditional brands in the brand voice volume of the jitter.

Data shows that data measure the sound volume of the word in the tiktok. According to the comprehensive index model of shaking, the index of corresponding keywords is obtained by weighting the number of related internal capacity, user’s search, reading, sharing, and tiktok.

Time dimension: January 1-February 28, 2021

Select the average value of traditional brands and new consumer brands of four corresponding industries

In the new media, marketing has become the “label” of new consumer brands. Compared with traditional brands, what is the role of marketing in the high growth of new consumer brands? After the development period from 0 to 1, how can a new consumer brand become a brand with lasting vitality and spanning the economic cycle? The official think tank of giant engine talked with Cao Hu, global partner of Kotler Consulting Group and President of China, to decipher the underlying logic of the growth of new consumer brands.

Business link reconstruction, consumer communication has become the focus of business

New consumer brands are explorers of China’s consumer market. They are fundamentally different from traditional consumer brands in the underlying logic.

In the era of big market, products are oriented and channels are the king. Most of the products meet the basic needs of the mass consumers. As long as the products are produced, the goods are sold in supermarkets, and then advertised through the mass media, good sales can be achieved. Its standard growth formula is nationalized large single product + mass communication + pressure type large distribution + flow type large shipment. The essential business logic is that supply is more important than demand, and goods find people in weak relationship. This business model tests the production capacity and channel distribution capacity of the brand side, which has become the underlying capacity of traditional brand growth.

In the new era of consumption, Cao Hu points out four obvious differences from the era of big market.

1. The change of consumers is the most fundamental change.

With the emergence of alpha generation and Z generation, they have different purchase standards for clothing, food, housing and transportation brands with different age, family structure and life cycle. Brands also need to provide the image of expression, brand positioning and brand narrative mode at any time. This new demand is the origin of new consumer brands.

2. The change of media enriches the way of brand building.

For z-generation consumers, brands can and must be transformed into a kind of communication and co creation through content, interaction, narration and IP. At the same time, media and channels are also merging. Media can not only be attributed, but also directly lead to real experience and purchase, greatly shortening the 5A model (Understanding aware, attracting appeal, asking ask ask, action act, advocating advocate). In this process, the transformation or loss of consumers are very fast.

3. China’s industrial chain is gradually mature and complete.

The oversupply of production capacity makes the production of products no longer difficult and the cost becomes lower and lower.

This kind of technology spillover, overcapacity and the competitive advantage of upstream manufacturing industry brought by industry 4.0 have been rapidly flattened and spilled, which has led to the greatly lowered threshold of creating a brand and manufacturing a product today. In the past, to make a solid beverage, you had to invest at least one or two million yuan in the product. Today, you can do it through the OEM with 100000 yuan. This enables a lot of people with ideas and creativity to integrate upstream in turn and use supply chain resources to make their own products and express themselves.

4. Channel deconstruction and remodeling brings dividends to new brands.

In the past, new brands not only could not afford advertising, but also had to spend huge costs on distribution channels, and the cost of platform e-commerce was getting higher and higher. Now the emergence of online social e-commerce, content e-commerce, offline flash shops, community group buying and other channels makes the channels present a multi-directional re integration after dismantling.

To sum up, the new consumption era is driven by stratification and demand, which meets the segmentation and emotional needs of alpha generation and Z generation consumers at different stages. Brand building must be user-oriented, focus on target consumers, and “empathize” with consumers with differentiated products and unique emotional experience in new media. The essential business logic is that demand is more important than supply and people create goods Strong empathy linkage business logic.

From supply pulling demand to demand pulling supply, from product centered to user centered, the standard growth formula of new consumer brands has also changed into user demand insight + user communication + transaction + supply chain performance, and the process of “user communication + transaction” has become heavier, and all of them have turned to the new media end. The biggest cost for consumer brands is not in the production end and channel end, but in the user end and media end.

Therefore, the cognitive cost of customers has become the biggest cost, and the communication ability and marketing ability between brands and users have also become the underlying ability of new consumer brands. Meanwhile, tiktok has such natural advantages as IP, tiktok and other products. The products such as jitter shops and other products have made consumers communicate and trade on a platform. The boundaries between media and channels, “camp” and “sales” have been broken, and the cost of channels has also been greatly reduced. Content as an adhesive and accelerator has shortened the link of 5A, and become a new consumer brand camp. The main position of marketing.

Marketing is the shortest way to build a moat

Scale is the antidote to all problems.

Looking at the hot investment fields in China in the past 10 years, there are only one or two winners or survivors in each stage of competition, while most start-ups in emerging industries are reduced to “running company”. From the perspective of capital, from the last round of financing to the next round of capital entry, the time for new brands is very urgent. We must use the fastest speed to let our products enter the vision of users, attract the most users, and build a scale barrier that competitors can not surmount. This kind of “lightning expansion” is the key way for the start-ups to open the gap with their competitors and decide the outcome.

Time turns to today, because we need to have a keen sense of market demand, organizational structure and mode of production need to have a certain degree of agility, and new consumer brands are often dominated by start-ups rather than large-scale companies. New consumer brands are in the cold start period, and need to accumulate a large number of customers in a short time. Moreover, for new consumer brands, the media dividend and channel dividend are fleeting, and they are easy to be imitated by competitors. At this stage, what we are fighting for is whose computing power is more optimized and whose customer acquisition conversion rate is higher under the same cost.

Therefore, in order to build a moat of scale, we should seize the window period, attack quickly in the early stage of category cognition, adopt the method of saturation attack, realize the accurate attack on the target population, and obtain the seed users most efficiently. Marketing has become the shortest way to build a moat of scale, which also requires new consumer brands to innovate in marketing methods compared with traditional brands.

In the digital age, marketing has become a factor of production

Nowadays, traditional marketing has been changing to digital marketing. Traditional marketing plays an important role in building popularity and arousing interest. The most important role of digital marketing is to trigger purchase and win support. The extension of marketing is expanding. Its function is not only to obtain one or two users, but also runs through the whole link from user insight to production and sales.

For new consumer brands, digitization is the original thinking, and marketing has become a factor of production. New consumer brands not only approach consumers’ inner needs through data insight, but also make their marketing department into a small advertising company + media company, becoming the central node of communication. The process of marketing is not only to spread brands, but also to manage data and precipitate assets.

Take Yuanqi forest as an example. Tang Binsen, founder of Yuanqi forest, knows how to build a user’s mind and data system. There are many ways to gain customers and split the amount of vegetables and other small games in Kaixin farm, and the data system can help the company to accurately obtain customers and put them in. Enough data can analyze where the customers are, what they need and what products they will pay for.

From 1 to 100, what is the long-term route of new consumer brands?

Of course, when the new consumer brand has achieved the market share target, it is also the only way for the brand to develop in the long run to invest time and money in independent research and development and brand loyalty. To complete the development from 1 to 100, new consumer brands should do three things

Method 1: to form a group of loyal customers to the brand and enhance the customer’s lifetime value.

Form a group of loyal customers to the brand, enhance the customer’s life-long value. If the new consumer brand only obtains new customers through a large amount of advertising expenses, and can not achieve the retention and re purchase of customers, it can only stop. In order to improve customer stickiness and increase the repurchase rate, new consumer brands should turn the thinking of purchasing volume to the thinking of operation. Change “flow” into “reserve” by the way of operation position, accumulate brand fans by content operation, strengthen the communication with fans, let a user form n times of reach and create “flow multiplier”.

In this respect, the perfect Diary makes a good example. Today, the perfect diary has been running through the tiktok position, and the number of fans has reached about 4000000. By initiating topics, actively attracting fans to participate, live broadcast and other ways, it forms multiple touch and communication with users, so that “taste users” can become sticky “fans” who can continue to purchase.

Method 2: expand SKU and establish multiple product relationships with customers.

Cao Hu said that in the 0-1 stage, the strategy of traditional brands is often to seize channel shelves through a large number of SKUs, while new consumer brands seize customers’ minds through simplified SKUs. In the stage of 1-100, it is necessary for new consumer brands to expand SKU and expand the price range of product line, so as to avoid leaving price space for competitors. Old products and core products are used to consolidate old users, and innovative products are used to pull new ones.

Method 3: expand offline channels and become a brand that consumers can buy at any time.

For brands, when consumers are interested but can’t experience or buy, consumers will lose. Although new consumer brands are generally weak offline, after breaking through the initial stage of development, they are bound to need to make up for this weakness.

The test of this batch of new consumer brands is whether they can cultivate the ability to cross the economic cycle and create products and brands that have been growing for more than 10 years and accompanied a generation.

Thanks to Cao Hu, global partner of Kotler Consulting Group and President of China region. Luo XianFen, marketing center of massive engine, also contributed to this article.

More reading: iResearch: 2020 China’s online marketing launch monitoring series report – new consumer brands (with download) billion euro: 2019 China’s new consumer brands Research Report and top 100 list traditional brands vs new consumer brands: social marketing differentiation analysis report (with download) consumer brand report: finding the truth of the city’s new busy people – first and second tier city office workers marketing insight micro Report hot cloud data: 2018 double 11 e-commerce app advertising behavior insight special report salesforce: 2021 online consumer report digital strategy in the era of artificial intelligence: how to make full use of artificial intelligence in advertising (with download) hot cloud data: Three Kingdoms Theme game advertising insight CTR: in January 2021, advertising market spending decreased by 2.0% year on year and 9.5% month on month Harris poll: consumer opinion report for the first quarter of 2021 Merkle: customer experience transformation report station B: general case of beauty care industry in 2020 (with download) what are the characteristics of super marketers in the next decade (with download)

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