we need to look at an enterprise with a longer cyclical mentality.
One sixth of 2022 has passed, the epidemic is still recurring, stocks fluctuate from time to time, and uncertainty fills our lives.
The charm of business lies in its uncertainty and infinite possibility, and successful business is to defeat uncertainty with certainty and turn “possibility” into “can”.
In the past year, Jiang nanchun, chairman of focus media, communicated with the founders and leaders of 1000 enterprises. He found that successful enterprises have their own successes, but there are similar methodologies behind them. He summarized it as eight words: “seize the mind and deeply distribute”.
How can Chinese entrepreneurs find “certainty” in the turbulent market? How can enterprises at different stages of development do a good job in seizing the mind and in-depth distribution? What are the opportunities for new consumer brands in 2022? Wu Xiaobo and Jiang nanchun discussed these issues, hoping to provide some inspiration for entrepreneurs.
An era of growing anxiety,
Two misunderstandings of brand communication
Jiang nanchun: the research company Kaidu has analyzed the total marketing return rate and found that over a long period of time, 70% of an enterprise’s sales are contributed by its brand assets, while only 30% of its sales come from its short-term traffic.
Many brands in China devote 90% of their energy to the promotion and traffic with immediate results. Promotion and traffic can help the brand achieve the goal of sales growth next month, but it can not help the brand out of the price war and traffic war, and can not let the brand enter the minds of consumers, so it is difficult to make due profits. The result is that prices are falling, traffic costs are rising, and profits are becoming thinner and thinner. This is the source of anxiety.
At the same time, there are many misunderstandings among enterprises in the second half of the Internet.
The first misunderstanding is that in the Internet era, as long as there are extreme products and extreme cost performance, there will be consumers. Because there is word-of-mouth communication in the Internet era, everyone can make a voice on the Internet. In fact, on the contrary, your brand is planting grass and your competitive products are planting grass in the opposite direction. With so many different views, users are still unable to make judgments in the end and rely more on the brand to make consumption decisions. For consumers with limited energy, the role of brand as a simplification of information will be greater and greater. In fact, it is ultimately the choice of a brand. When others are still planting grass, you should plant a big tree.
The second misunderstanding, will the Internet make communication more effective? In fact, it’s not. The virtual world is infinite, and no matter how much investment the brand makes, it’s easy to be submerged. The real world is limited. Only by exploding the limited living space of consumers and detonating the brand in the limited space of the real world can we achieve greater exposure and greater visibility.
Wu Xiaobo: you just talked about the concept of “planting grass”. Now it is in a fragmented era. The whole communication is no longer a pyramid, and we don’t know where consumers are. Therefore, we will use scene description on some social media to make consumers form cognition and finally guide them to buy. This is the so-called grass planting behavior. So “planting trees” has become another matter. What is planting trees?
Jiang nanchun: the media trend in 2022 can be summarized as follows:
The first is to detonate the brand with centralized media to combat the fragmentation of information dissemination. The so-called tree planting is to form a centralized detonation through centralized media, and then penetrate the brand image into the minds of consumers. Many brands are detonated, whether they are detonated by focus or top satellite TV columns. This is called planting trees.
0-100 million brands can plant grass and cultivate original seed users. Most companies need to detonate a broken circle after exceeding 200 million or 300 million in order to bring real sales growth. So there is no contradiction between planting trees and planting grass. Mr. Philip Kotler said that in order to form a social consensus, we must impress five groups: buyers, decision makers, influencers, Experiencers and communicators. Today, we see that the accurate distribution of “goods for people” improves the efficiency of transaction, but “people for goods” is the building of the brand. Brand building requires centralized media to replace fragmentation and establish the group identity of mainstream people.
The second trend is to counter the forgetting speed of users in the information explosion environment with continuous repetition. Daniel Kahneman, a Nobel Laureate in economics, introduced in thinking, fast and slow that people will relax their cognition of familiar things and make comfortable and easy judgments. Brand is to establish consumers’ sense of security and trust through repetition, become standards and common sense in categories, and become consumers’ intuitive response without thinking.
The third trend is to use deterministic media logic to fight against the uncertain development environment. Find the core media and accumulate the brand mind for a long time, so that the compound interest effect will be greater and greater. Everyone wants to create the hottest marketing event of the year, but its success rate is very low, it is difficult to copy, and it is impossible to meet.
Doreen, CEO of Kantar group, emphasized the concept of “double micro shake and focus” at the press conference of the top 100 brand ranking list. She believes that “double micro shake and focus” is an effective paradigm of current communication, that is, the content marketing of online social media represented by “double micro shake” and offline media represented by focus are in apartment buildings, office buildings Combination of scene marketing in cinemas.
Has the development of new consumption come to an end?
Wu Xiaobo: some time ago, Xicha began to lay off workers. Last year, Haidilao also began to lay off workers. People will say whether new consumption and new domestic products have achieved the first. What do you think of these views?
Jiang nanchun: I think there are many innovations and places to return in the development of new consumption, but I firmly believe that the future of new consumption is bright. Because the new generation has the needs of the new generation, it will give birth to a new generation of brands. Today, the new consumption is a little faster and depends too much on the flow dividend, so the root base is slightly unstable.
Today, for new consumption, the slowdown of flow dividend will bring a return. Today’s new consumer brands need to solve two problems:
The first problem is that some new consumer brands excessively pursue fine operation, and tactical diligence can not solve strategic problems. After 200-500 million, you didn’t break the circle. No matter how much iron powder there is, that’s the amount. So they want people to break the circle, seize a wider range of consumer minds, and change from online popular brands to public brands.
Another problem is that channels are too dependent on online. I predict that the next wave of new consumption in China is offline. When a strong offline channel penetration is really established, the company can achieve larger scale growth and really have strong profitability. Because there are limited shelves and limited minds offline.
Wu Xiaobo: I think many new consumer brands are going through the make-up stage. These so-called new consumer forces may not be in this industry. Because they have mastered the flow capacity, they have achieved explosive growth in a very short time through the flow delivery and the tuyere period of e-commerce.
But they face two problems. The first is the problem of supply chain. Make up, toothpaste and ice cream, buy land and build factories after a certain scale, and return to the supply chain itself. Because if the manufacturing capacity is not enough, there will be no production capacity and pricing power of a product.
The second is the issue of offline channels. (new consumer brand) is not much different from the traditional consumer goods company. When entering an industry in the 1980s and 1990s, the first thing is not to find consumers, but to find a production line, and then design the brand and sell it to everyone through the channels of distributors. Now it is possible to obtain a group of users through traffic. But in retrospect, the classes that should be made up, the pits that should be stepped on, and the things that should be done have to be done again. So we need to look at an enterprise with a longer cyclical mentality. So what do you think of today’s new consumer brands?
Jiang nanchun: I have been marketing consumer goods for 30 years, and my biggest experience is that the whole new consumption should return to the essence. It can be summarized into eight words: deep distribution and seizing the mind.
High channel penetration and high mental penetration are the king. First of all, the products must be good. Without good products, you can’t enter the finals at all, but you don’t necessarily win after entering the finals, because excellent companies at the same level compete with you. At this time, channel penetration is very important.
Second, are you equal to a category or a feature in the minds of consumers? Have you captured the minds of consumers? Is there a reason in the minds of consumers to choose you over others?
Strong brands have stronger and longer-term competitiveness and immunity. Strong brands have the ability of premium, even if they still have profits when promoting, weak brands have no profits. In the economic downturn, consumers will actually spend their money on strong brands that are more secure, more deterministic and more reliable. During the crisis, strong brands dare to take action, but it is a good time to open the gap and expand their share.
How will enterprises become brands in 2022
Wu Xiaobo: do you think a brand should first move the rational side or the emotional side of consumers? What is the rhythm of brand building?
In my opinion, the most important issue in the mind of consumers is the difference of playing method.
For example, when starting a business 0-1, it should have unique functional selling points, either representing a category or a feature. At this time, we can catch the origin crowd through accurate distribution and social grass planting.
After you reach hundreds of millions, precise distribution and social grass planting have entered the bottleneck. Then you need to detonate the circle through brand positioning and become the first choice for a subdivided group.
Starting from hundreds of millions to tens of billions, it will enter the second bottleneck, which requires new product iteration and scenario creation. Jue Wei duck neck used to be advertised for its spicy and delicious taste, but to achieve further growth, it needs to detonate the scene. For example, focus on the elevator advertisement for Jue Wei in the office building “what class is added without Jue Wei duck neck”, and the elevator in the apartment building is “what drama is pursued without Jue Wei duck neck”, which creates a scene and may stimulate potential demand and create business increment.
When the enterprise reaches the level of 10 billion and is already a leading brand in the industry, it is necessary to improve the brand power, export values, establish cultural identity and become a leading brand. The failure of many companies is that they understand the methods, but the stages are misplaced. Many companies talk about feelings when they get up, but today feelings are often the privilege of winners.
Wu Xiaobo: what are the most successful cases in the past two years?
Jiang nanchun: Miaoke Landuo and vitality forest. They first focused on the company’s strategic objectives on a very good segment track, then chose to focus on all the company’s resources and firepower, quickly broke the circle of popularity, and established an absolute leading position in the segment category.
When you build up awareness in the hearts of consumers and mention 0 sugar, 0 fat and 0 card, everyone will think of vitality forest; When you mention the cheese stick, you think of mikolando. Such a brand has formed a siphon effect, and truly established a brand moat, the company can develop very stably and continuously, and the brand is the most sustainable flow.
Wu Xiaobo: how to identify a real potential category track?
Jiang nanchun: actually, it’s hard to judge. I think there are two judgment methods: the first judgment method is to see if there is a bigger one in this category. For example, when we were working as Mengniu Youyi C, there was a benchmarking company, yangleduo. Yangleduo has achieved $56 billion, so we think this track will be OK. The second is to judge the false demand and the true demand. At that time, Yuanqi forest made more than 100 products. These products were accurately distributed online and tested on a small scale first. Finally, only four products can be sold, and those that cannot be sold will be eliminated quickly.
Wu Xiaobo: just now, nanchun actually gave entrepreneurs two inspirations. For example, if you are in the men’s wear market, you can study which popular style or category is growing in the global men’s wear market and do benchmarking research in the international market. The second thing is to dare to try and make mistakes. For example, I am also making down jackets, but there is already a Bosideng in this industry. What should I do?
Jiang nanchun: the Chinese market is large enough and there are many places to innovate. Either subdivide a group of people, or subdivide a scene, or subdivide a function. There are four main strategic orientations of business: the boss usually blocks the category, and the brand is equal to the category. For example, shopping “heavenly cat” is enough; The second is the boss of the attack, highlighting his own characteristics, “more, faster, better and better in Jingdong province”, and the core is fast delivery; Third, vertical focus, vipshop “website specializing in special sales”, focusing on a subdivided field; Then later, they opened innovative categories and landed in no man’s land. They created a social group mode by “fighting more and saving more”.
⑤ Wu Xiaobo: one suggestion for all entrepreneurs is that there are competitors like mountains in your industry, which may also be a very lucky thing for you. You have two choices: the first choice is to withdraw and leave the industry; The second is to die hard, in the shadow of your giant, to find the possibility of survival. Through differentiated competition and professional strategy, we can find the possibility of our own development. I think business is the ultimate struggle of intelligence and the game of intelligence. This is the sexy and exciting place of business.
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Original title: Wu Xiaobo x Jiang nanchun: has the development of new consumption come to an end in 2022?
Source: Wu Xiaobo channel (ID: woxiaobopd), reprint has been authorized.
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