Summary of New Consumer Brands’ Breakthrough in 2021

Breaking the impasse: We must coordinate with the general direction, body, surface, line, and point to establish a big picture of the single product system. (zoom in) abstraction and (zoom out) focus, see the direction and trend of the entire category from a high level, that is, the direction of the battle; focus on single points and single products from a deep level, actively differentiate, find breakthrough points, and win through points, lines, surfaces, and bodies.

Ma Huateng once said: Many users commented on QQ Mail and said that the only reason they used QQ was the fast file transfer, so we simply maximized the advantage of "fast file transfer". Although there may not be many users who actually use it, some users will say, "I want to transfer a large file, but I couldn't find a place to transfer it after searching for a long time, so I had no choice but to use the "crappy" QQ mailbox, and it actually worked, so our reputation came."

Fu Sheng recalled: When we were working on Clean Master, there were only a few people in the team, and the number of downloads increased from a few thousand to 200,000 or 300,000 per day; and another product, Battery Doctor, already has hundreds of millions of users. Later, at the Lushan Conference, I made a difficult decision: to invest all resources in Clean Master. Looking back now, the all-in point was correct. How can latecomers catch up, or even surpass others? The key lies in finding their own breakthrough point.

Breaking the impasse: We must coordinate with the general direction, body, surface, line, and point to establish a big picture of the single product system. (zoom in) abstraction and (zoom out) focus, see the direction and trend of the entire category from a high level, that is, the direction of the battle; focus on single points and single products from a deep level, actively differentiate, find breakthrough points, and win through points, lines, surfaces, and bodies.

• Body Thinking
• Market concentration, industry price range
• Category dividends, differentiation and differentiation

The essence of strategy is a question of choosing a route. The so-called strategy involves trade-offs, which means that if you take this path, you cannot take that path. Whether it is a narrow gate or a wide gate, the gates represent different paths. Different paths require, accumulate, and sediment different organizational resources. Furthermore, in the entire industry, industry ecological niches are formed for different enterprises.

1. Insight: Market concentration

Industry concentration, also known as market concentration, refers to the total market share of the largest companies and brands in an industry. Industry concentration is a measurement indicator of the degree of concentration of the market structure of the entire industry, outlining the basic outline of the market structure.

Depending on the degree of concentration, the market structure can be divided into three types: free competition in scattered markets, homogeneous competition in block markets, and differentiated competition in cluster markets. That is, free competition, homogeneous competition, and differentiated competition.

Market concentration reflects the current state of industry competition. Market concentration can reflect the current state of market competition. Oligopolistic, highly concentrated markets behave differently from fragmented markets. In general, an industry market that has not yet had a leader has relatively greater opportunities.

The dairy industry has developed for many years, and the ambient temperature milk sector has become a red ocean market: the industry concentration is high and the oligopoly enterprises are clear (Yili, Mengniu, and Bright). Due to the low market share of chilled milk (mainly yogurt) and low unit price of the product, it was rarely taken seriously by brand companies before 2010. At the same time, this category has not yet been widely recognized by consumers.

In 2010, the annual sales of yogurt was only RMB 33 billion, less than half of that of milk (RMB 67 billion). After 2013, the consumer demand for yogurt increased rapidly, and in 2014, Xia Haitong founded Jane Eyre. Jane Eyre positioned itself as "low-temperature high-end yogurt", so we have what we see today - raw milk, sugar, lactic acid bacteria, and nothing else. This is Jane Eyre. In May 2015, Jane Eyre's first cup of additive-free yogurt was officially launched on the market.

2. Find the right price range for your industry

Every industry has its own unique price band, which is formed through competition between consumers and brand companies. Through the industry price band, we can see the overall brand price ecology of the industry and then find market gaps. That is: the price range is relatively less competitive among brands, and there is a potential for profit in the market, with the possibility of entering through high-price or low-price flanks.

When it comes to product pricing, the core for new brands is to lead sub-categories to break through the original perception of product prices and to deliver value through category value, product selling points and brand declaration . Price is never an issue; value for money is. What’s more, it’s only a matter of 10 dollars in the final analysis.

If beverages can be sold for 6-7.5 yuan a bottle, then why can't yogurt be sold for 10 yuan. At least in consumers' perception of product categories, the value of a cup of yogurt is always higher than that of a bottle of beverage, not to mention if it is for children to drink. In this case, consumers' price sensitivity below 10 yuan is considered within the acceptable range. Because of this, Jane Eyre did not choose the low-price strategy of 2-3 yuan/100g, but set the price at a "high" level of 5-10 yuan/100g. For example, in the milk tea market, Mixue Bingcheng has achieved economies of scale through low prices.

The market pricing of an industry can be simply divided into three levels: high, medium and low. New-style tea drinks represented by Heytea and Nayuki are priced at more than 25 yuan per cup; those represented by CoCo and Guming are priced at 10-20 yuan; and those represented by Mixue Bingcheng are priced below 10 yuan. Heytea and Nayuki adopt high-price strategies to target the core business districts in first- and second-tier cities, CoCo and Guming are positioned in the mid-range, and Mixue Bingcheng sticks to the low-price + "surrounding the city from the countryside" strategy.

3. Seize: Category bonus, occupy the mind

Everyone who makes products knows or should know that brand is the foundation of the business. Otherwise, it will become a "trademark" and a slave to traffic. The profit of buying traffic and selling goods will ultimately be trapped in the cost of acquiring customers - this is ultimately a zero-sum game business. When the category dividends gradually disappear and the brand cannot be established, the glory will become a story of the past.

The method of spending money to buy traffic in exchange for sales may be acceptable in the early stages of a brand. However, if the brand still remains at a low-level operation of relying solely on traffic in exchange for sales in the middle and late stages, the brand will have to work for KOLs and Internet celebrities. In essence, KOLs and internet celebrities are channels, not brands themselves. Selling goods and building brands are two different things.

If users trust KOLs rather than brands. This means that the company’s brand has not really established mind and brand awareness among the target population. Once the consumers’ minds are saturated, it will be very difficult for you to break into them again - the key to seizing the opportunity is the window period of the category. Once consumers are overloaded with a certain type of information, it is difficult for them to remember similar information.

On the one hand, online users seize traffic and enhance exposure through hot-selling products to create the first place. The essence of a hit product is to solve the problem of consumers' first purchase and voice. In fact, new consumer brands such as Ubras, Neiwai, and Bananain have created popular products of their own at different stages. For example, Ubras’ Tmall flagship store sold a total of 12.6 million items, of which the most popular item sold about 4.39 million pieces, accounting for 34.9% of total sales. Neiwai launched the cloud-size-free underwear priced at 169 yuan as a super product on its main line.

Secondly, establish offline channels. Offline stores are not only a channel, but also a scene touchpoint for brand strength and category extension. The earlier this touchpoint is established and the greater the potential of the business district selected by the touchpoint, the more conducive it is to building the brand in the minds of consumers. For example, Neiwai resolutely chose to open offline stores because this is the most suitable place for new brands to establish "direct dialogue" with customers, and even a brand dojo. Through the layout of offline store touchpoints, on the one hand, we can establish deeper and broader connections with customers at a lower cost, and on the other hand, we can pave the way for product category extension.

In fact, 90% of sales of major global and domestic intimate apparel brands come from offline. In 2017, Neiwai began to invest heavily in expanding its offline channels. It is said that the first shopping mall Liu Xiaolu set her eyes on was Shanghai Jing'an Kerry Center, and that "the first Neiwai store must be opened in the core area of ​​Shanghai." Neiwai waited for a year for this location.

4. Active: Differentiation

Discovering and selecting category differentiation opportunities is an entrepreneur’s primary business decision. Category differentiation brings new market space, and differentiation is the driving force of business development.

Category differentiation brings new market opportunities: it is easier to create new brands in the process of category differentiation. Only new categories can bring new cognition, and new cognition brings new brand opportunities - 80% of business decisions come from how you discover new opportunities for category differentiation.

The origin of demand has never changed. What changes is only the way to meet the demand. New category opportunities or category characteristic opportunities are new opportunities for brands. The power of "differentiation" makes the world rich and colorful. Everything in the world originates from "differentiation", and "differentiation" is the inevitable trend of species development ("The Origin of Species").

Three logics:

1) Category is not the cause, but the result.

2) The value of a business lies in the fact that brand = category. The faster this equal sign is drawn, the more valuable it is.

3) Differentiation and innovation of sub-categories are the crudest and most direct ways to express differentiation.

1. Creating differentiation is the basis of differentiation

The underlying logic of new product categories is not only the gap in the market, but also the blank in consumer perception. Generally speaking: there are no more than three all-round players in an industry, and the vacant market provides new opportunities for new entrants. Therefore, after the mind is saturated, it can only develop new cognition through differentiation.

Where do your customers come from? First of all, they come from the competition within the category. The conversion of category customers happens after the brand gains a leading position, that is, from within the category to outside the category. In terms of customer conversion efficiency, the customer acquisition cost within the category is lower. Therefore, differentiation is not unlimited competition, but limited (intra-category) competition.

The new consumer products are making a revolution, and the first things that will be revolutionized are the old categories and old brands. People born after 1995 and 2000 probably won’t use their mothers’ brands anymore. Even if Aimei makes the same underwear and the same products, it can’t become Neiwai or Ubras - differentiated competition, based on products and in the form of brands, new names drive new cognition.

In addition, if the leader has already gained a cost advantage, the latecomers must do things differently. Consumers will not remember you because you are the same as the boss, but they will choose you because you are different from the boss.

When Wanglaoji was the boss, wasn’t Heqizheng also doing well? You are a small tin can and I am a big bottle. Heqi Zheng's bottled drinks are more enjoyable and they are sold at a good price. Red Bull is in the front and Dongpeng Special Drinks are divided into two categories, first with bottles and then with cans. When you are sleepy or tired, drink Dongpeng Special Drinks, and you will enjoy yourself.

Going back further: You are the boss, the red can represents the authentic cola (Coca-Cola); I am a latecomer, making a green can representing the cola for young people (Pepsi).

5. The essence of differentiation: forming differentiated cognition on the consumer side

The essence of differentiated competition is to form differentiated cognition on the consumer side, guide facts through cognition, and strengthen cognition with the help of facts. On the one hand, there is the factual differentiation support at the product level, and on the other hand, there is the differentiated cognitive segmentation of consumers. Therefore, building differentiation is not just about products, but also includes consumers’ cognitive guidance, cognitive insights, and even cognitive compliance.

Latecomers should not get involved in the education market. That is the boss’s duty and responsibility. He is the boss because he bears this duty and responsibility. If you are a latecomer, you must develop differentiated strategies for consumers and products in the market developed by the big players. If you can strike back and defeat the enemy, that would be really awesome.

For example: the product Nutri-Express was not invented by Wahaha, but copied by Wahaha. However, this does not affect Wahaha's efforts to make Nutri-Express a major product. This is the latecomer doing the boss's job, and the boss got a big bargain. Because, if they are bigger than you, have lower costs and a louder brand than you, they can just copy their products and paste them into the channels, and that’s it.

Latecomers should do the work of latecomers to be worthy of the role of latecomers. If latecomers want to gain power, they must take advantage of the weak points, avoid the strong and attack the weak, launch flank attacks, and use blitzkrieg. Instead of a head-on attack, a protracted war is a battle of scale and cost, and you will lose right from the start. There is only one boss, but there can be many successors

The essence of differentiation is to solve the problem of brand premium. Differentiation is a cover and premium is the hard work. There may not be only one latecomer, because there can be many types of product differentiation, and the core lies in the consumer's understanding of the product's functions, benefits, and characteristics. For example: toothpaste can whiten teeth, prevent tooth decay, remove tooth stains, prevent bleeding gums, strengthen teeth, is suitable for children, and can freshen breath.

Whitening, anti-caries, tooth stain removal, prevention of gum bleeding, tooth health, children's toothpaste, fresh breath, these words represent a group of consumers who have special preferences for the products. The satisfaction of special preferences is, on the one hand, the insight into consumers, and on the other hand, the differentiated support of products in terms of functions, benefits, and characteristics.

The core of differentiation is to focus on category characteristic words, which are the concentrated embodiment of consumer interests. Another example: the boss differentiates himself through strong suction, so other competitors cannot move in the same direction. When you are standing at the back of the team, you should look for opportunities to form another team, so that you may become the leader, for example: Mute.

6. Face vision

1. Misaligned competition, price gaps, and flanking battles

First, find a brand-new product category and set a price that matches the brand’s tone: for example, Neiwai was not the first to propose the idea of ​​underwire-free products, but it followed Uniqlo in vigorously promoting the concept, chose its own price range, and occupied the market while maintaining its brand tone.

Second, clear brand positioning: find a point of entry for differentiated competition in the market, differentiate yourself from other brands, and establish an image as a leader in new categories through clear positioning and relatively effective operational coordination (online and offline).

Third, grasp the traffic dividend, Internet celebrities + stars: use KOL, Internet celebrities, and stars to conduct brand marketing and create hot products on social media, seize the category dividend period, and occupy both the market and mind vacancies.

Fourth, sales channels that combine online and offline: use e-commerce channels as the entry point to exchange traffic for hot products; layout offline channels in advance to expand product lines.

(1) Misaligned competition

Faced with the strength of the first movers, if the latecomers compete with the first movers in the same factor dimension, it will be tantamount to hitting a stone with an egg. In the history of business, there are almost no cases of leaders being challenged head-on and winning . The core of misaligned competition is to find your own ecological niche in the industry, choose elements that are different from those of the first movers, and then achieve a breakthrough in the new track.

After the melamine incident, "safety" became synonymous with overseas milk powder. If domestic milk powder still competes with foreign milk powder on the dimension of "safety", it will never be able to gain an advantage. This is not a problem of product quality, but the sequelae of "mental trauma" to consumers, which cannot be cured by a single brand. Among many domestic milk powders, Feihe took a different approach and broke the deadlock by using the obvious common sense of "more suitable for the physique of Chinese babies".

Faced with the strong position of Yili, Mengniu and Bright in ambient temperature milk, Jane Eyre chose low-temperature milk (yogurt) as its entry point and found a breakthrough by focusing on new channels. The traditional way of selling yogurt is basically to rely on KA supermarkets and traditional small stores. With the help of new channels and staggered competition, it has seized the cognitive gap and become the leading brand in the subdivided category.

(2) Price gap

Emerging companies often challenge industry giants through low-end disruption, entering the low-end market where the giants have not entered. Because of the small scale, low profit margins and unclear demand of the low-end market, it is difficult for industry giants to have sufficient reasons to enter, resulting in the rapid rise of emerging companies in the low-end market, achieving breakthroughs, and then migrating from the low-end market to the mainstream market, ultimately completing the subversion of industry giants.

Mixue Bingcheng insisted on the low price + "surrounding the city from the countryside" strategy, which not only broke the deadlock but also created a new situation of 20,000 stores. From the perspective of the industry's price range, Mixue Bingcheng has locked in a low price, but from the perspective of specific consumption, it is hard to say that for those who have always drunk beverages, now drinking milk tea because of Mixue Bingcheng is not a consumer upgrade.

Low-end disruption is not the only way, especially at the current time of consumption upgrading, many new consumer brands have achieved industry breakthroughs by positioning themselves at high prices, and even brought dividends to the entire category, such as the new consumer brand: Zhong Xue Gao. If Haagen-Dazs can be sold for 38, why can’t Zhong Xue Gao be sold for 66? The key lies in understanding the behavior behind consumption. Selling something cheaply has been our experience over the past 30 years, and selling something expensively is our future mission.

French sociologist Jean Baudrillard once said: “People never consume things for their own sake (use value), they always use things as symbols that can highlight themselves .” By finding a high-priced vacancy, Zhong Xue Gao has achieved a breakthrough in the ice cream market.

7. Flanking Battle

In a market where your opponent has deployed a large number of troops, if you launch an offensive, you must have three or five times the troops (resources) to have a chance of achieving a tie. The resources of any organization are relative. Strength and weakness are two sides of the same coin. The stronger an organization is, the weaker it is. Yin is within Yang, not opposite to Yang. The key to breaking through the flank attack is to avoid the strong and attack the weak.

The flank warfare can be summarized in one sentence: surround the city from the countryside. "Rural areas" are the opponent's weak and empty areas, while "cities" are the opponent's strong and real areas. If strong opponents deploy heavy troops in the first and second tier cities, I will go to the third and fourth tier cities. If strong opponents try to encircle them offline, I will break through online. If strong opponents are in supermarkets, I will find another way, namely convenience stores.

For example: Winona entered the large health product market and used a flanking attack to enter the market from the niche market, forming a staggered competition with the existing cosmetics giants. Positioning efficacy and single-point focus: focusing on efficacy-grade cosmetics, positioning the first brand of efficacy-grade cosmetics, making cosmetics according to the standards of making medicines, with medical support and authoritative endorsement, going 1km deep from 1cm, going deep and penetrating; one selling point, gathering advantageous resources, promoting and distributing online, laying out channels offline, starting with the narrow and then the wide, from point to surface, breaking the game at the start and playing a good hand.

8. Line Planning

1. Four-stage strategy

Phase 1: 0-10 million, single-point single product, efficient conversion, traffic into sales

Phase 2: 10 million to 100 million, product line expansion, channel penetration, and deep cultivation of user minds

Phase 3: 100 million to 1 billion, cross-border endorsement, breaking circles and user retention

Phase 4: 5 billion club, supply chain, category penetration, two players, one shake, one focus

(1) Phase 1: 0 to 1 verification, single point breakthrough, single product penetration

When new products and new brands first enter the market, the problem they face is not a brand issue, but finding traffic and increasing sales. By improving and eliminating differentiated selling points of single products and single points, we can gradually increase conversions and run the content conversion path from traffic to efficiency.

Method: On-site + off-site, free + paid, stock + incremental

Image and text promotion + brand self-broadcasting + top product promotion + mid-level KOL investment + e-commerce conversion

The brand strategy at this stage focuses on potential consumers who have a favorable impression and interest in the category. At the same time, because new brands have relatively low awareness, they need to rely on category awareness or bonuses + unique differentiated selling points of products to convert consumers within the category. Focusing on the A2-A3 population, we will increase interest through differentiated product content, strengthen interactions to establish connections, and promote orders and purchases.

What is the 0 to 1 verification phase? That is: in the product verification stage, the measurement standard is (conversion efficiency) sales. The biggest problems at this stage are the adaptation between products and demand, products and content, products and media, and the efficiency of investment and conversion.

Usually this stage starts with a single point or a single product, using the single point as a pilot and the single product for penetration. During this stage, you should have a brand mindset but definitely not build the brand immediately with great fanfare. We still have to focus on this product and solve the problem of product sales, that is, effectively extracting the unique and differentiated selling points of the product.

The reason why 90% of products don’t sell well is not because of the product’s problem, but because of the compatibility of the product’s selling points with consumer demand. Before a product is launched on the market, it may have various functions and features, but these are all illusions. If you don’t put your products on the real market, you’ll never know which ideas are the ones that will bring you real results.

Starting from the function, and looking for support in technology and raw materials, the product selling points at this stage should be less empty and more practical - visible, tangible, physically felt, and visual. It is not only about refining the selling points, but also about the presentation form of the selling points. Both the product and the content, the product and the media, whether it is pictures and texts or short videos, can the selling points be brought out, and whether the expressiveness, penetration and perception are strong.

Single point breakthrough, concentrate resources on one medium, one sector under one medium, one type of KOL under one sector, and penetrate with one keyword. For example: Santonban focused on Xiachufang in the early stage, and Perfect Diary focused on Xiaohongshu. If one doesn't work and all of them don't work, but one media works, basically 80% of the methods can be replicated. It is critical to find the right adaptation points for the needs behind them. The rest is replication, amplification, and conversion rate indicators.

For example, Swisse launched blood orange essence. In the first phase of Xiaohongshu, the focus was on the benefits of blood orange and why blood orange can supplement collagen, helping consumers understand the benefits of blood orange. The product was even named after its function: Blood Orange Collagen Liquid (rather than Blood Orange Essence).

The product’s nickname “Collagen Liquid” lowers the consumer’s cognitive threshold, and what you see is what you get; by promoting its efficacy and principles, it helps consumers understand the efficacy of blood oranges.

It is important to note that the matching points and leverage points are:

The problem of slow acceleration in the early stage is usually that the right matching point between product and demand is not found. Once the matching point is found correctly, the leverage point of content and media is found. Single point breakthrough, single product penetration, sales of 10 million or 50,000-100,000 orders can be repeatedly verified.

(2) Phase 2: 10-fold growth from 10 million to 100 million. Key words: enlarging the target audience

Expanding from the A2/3 population to the A1 population, if this stage is still centered around the A2/3 population, it will inevitably lead to weak growth in the later stage. By using matrix advertising and advertising exposure methods, we target the A1 population and increase the base of the exposed population.

Usually in the 100 to 100 million stage, most brands do not encounter traffic problems, but the difficulty of how to occupy the minds of users as early as possible and how to deeply cultivate the minds of users. To this end, the second stage is to gradually form actions, routines, and strategies for the brand to occupy the mind and deeply cultivate the mind. If we say that stage one focuses on products + content + conversion, stage two should start to take the brand into consideration.

Note: If a one-dimensional product competition does not have a brand rooted in the minds of users, it will be difficult to escape the traffic curse.

Method: Matrix, advertising, top KOL + celebrities + cross-border collaboration

The law of quantity is the basic law. Exposure, reach, interaction, conversion, and amplifying sales tenfold not only involve secondary reach and conversion of existing users, but the core is to increase the initial value equivalent, expand the basic plate, and release water at the source of traffic. In the first stage, the basic logic and path of reach, interaction and conversion have been implemented, which provides a basic basis for judging the amplification actions in the second stage.

10 million to 100 million, judging from the sales results, it is 10 times faster. How to achieve this 10x speed? There are two key points: 1) product line expansion, 2) channel penetration.

This stage will enter the initial stage of the brand. In the stage of 10 million to 100 million, the brand feeling will be gradually improved, and products will begin to be made like a brand. Industry public relations, SEO, press releases, brand media matrix, etc. need to be gradually improved, but the premise is that the product is hot-selling and product sales growth cannot stop.

Product expansion. The expansion here means only extending the product specifications and sizes upward and downward based on the original best-selling products. A, APro, A-. Instead of making changes to product items, the goal is to expand product offerings, stretch consumer stratification, and meet the needs of consumers at different levels. Product flavoring can also be used to expand products. Whether it is product expansion (A, APro, A-) or flavor extension, the consistency of the items must be maintained, or in other words, the basic tone of the brand must be maintained.

Channel penetration. Channel penetration is not just online and offline, it also includes media penetration. Exposure is a hard indicator. It is best to choose a region with high potential, choose a city with high potential in the region with high potential, choose a channel with high potential in the city with high potential, and choose a terminal with high potential in the channel with high potential.

What is high potential energy? For example: whether a restaurant is a large store, whether it is a chain, whether it is ranked high on Dianping.com, and whether it accepts membership cards. Large stores have higher potential energy than small stores, chain stores have higher potential energy than single stores, stores ranked higher on Dianping.com have higher potential energy than stores ranked lower on Dianping.com, and stores that can collect membership deposits have higher potential energy than stores that cannot.

Analyze each situation specifically. In essence, high potential energy can be felt. When you stand at the terminal and take a look, the atmosphere and feeling are real. Therefore, without investigation, there is no right to speak. The answers are on the spot, and the questions are all wild imaginations.

We started to seize the rhythm online to achieve hot sales, first in category and first in individual product. The first value is to accumulate credibility for the brand. For 618, Double Eleven and New Year’s Festival, plans should be made 3-5 weeks in advance.

• The rhythm of leading products should be positioned
• Off-site traffic needs to be coordinated
• In-site purchases require investment
• Brand PR needs to keep up
• Cross-border joint venture

For example, taking Xiaoxiandun as an example, in 2018, it mainly focused on weight loss and skin care; in 2019, it enhanced the extension of pregnancy care and the concept of frozen age, and at the same time increased the proportion of skin care products from 28% to 45%. This means that the combination of skin care and functionality is effective.

Focusing on the A2-A3 population, complete the user population portrait, and based on the A2-A3 user population portrait, iterate keywords and penetrate the population.

After April 2019, the scenarios for Xiaoxiandun's advertising began to change. The proportion of "weight loss" scenarios decreased to 11%, and the proportion of "skin care" scenarios was the highest, accounting for more than 45% of the total. The proportion of "pregnancy care" and "freezing age" scenarios increased significantly, and the proportion of "health preservation" scenarios was still at the bottom.

We used super-head KOLs to increase awareness, and used "weight loss", "skin care", "anti-aging", "health preservation", and "pregnancy care" as keywords for penetration. We gradually developed the core keywords: skin care as the main focus, health preservation as the foundation, pregnancy care, and anti-aging as the grass-planting strategy to penetrate the population.

(3) Phase 3: 100 million to 1 billion

This stage is also 10 times, the same question is where does the 10 times come from? 1) Online + offline, 2) Breaking the circle and attracting new customers, 3) Taking action to a higher level

The core is to rely on the pull of the brand to drive sales growth. In other words, at this stage, simply talking about products, traffic, and conversion is no longer sufficient to support sales growth. It is necessary to combine brand, product, traffic and content together. Only at this stage can we enter the comprehensive stage of integrating product, effect and sales.

The brand's actions expand from brand and category groups to interested groups, attracting interested groups through top-stream product promotion + celebrity endorsements + brand cross-border + advertising and public relations, amplifying the traffic entrance, and gradually transitioning from A2-A3 groups to A1 and O consumer groups. The purpose of cross-border and brand collaboration is to break the boundaries of categories, and the core of cross-border is also to attract new traffic.

During this stage, the amplification of brand actions will bring in more general traffic. For this reason, the integration of brand, effect and sales has entered a critical stage. If the integration of brand, effect and sales is not achieved at this stage, the traffic brought by the brand's cross-border, joint ventures, advertising and public relations will not be converted into sales growth.

• Phase 1: Running Effect
• Stage 2: Product Promotion
• Phase 3: Running in One
• Stage 4: Moat

The focus of this stage is on breaking the circle and attracting new customers among the O and A1 groups:

Attract new customers within the category: users who are interested in competing products or the same category

Attract new customers from similar products: Analyze the overlap between the customer groups of this product and similar products, and conduct targeted marketing to customers who have similar products performing well but the customer group needs to improve.

Attract new customers across product categories: Compare with your own 5A customers to see which product categories have higher TGI besides your own product, and target the corresponding industry groups with the product.

Attract new customers by using the scene crowd: Based on personalized demands, we can tap into the scene crowd with a high overlap rate and large scale with the 5A crowd.

From "arithmetic growth" to "exponential growth", when a brand grows to a certain stage, it will encounter diminishing marginal utility. There is often only one reason for this, and it is a fundamental lesson that is often overlooked, that is, insufficient brand power. In the entire life cycle of a brand, only at this stage does brand power become extremely important.

In particular, when growth becomes sluggish, we need to increase new customer acquisition and break through the circle externally, and internally drive repeat purchases and improve conversions. Attracting new customers is the constant action, and breaking the circle is the goal.

From brand users, to competitor users, to category users, to cross-category users, and then to scenario users. Only by constantly breaking through circles can we maintain growth, especially in the stage of crossing the chasm; this is even more true for achieving exponential growth - traffic, breaking the circle, conversion, operation, and sedimentation of the mind.

Based on consumer portrait labels and sales base data: define the brand's core portrait labels and lock in the A4-A5 core strategic groups: emerging white-collar workers, senior middle-class, sophisticated mothers, small town youth, Gen Z (Generation Z), urban silver-haired people, small town middle-aged and elderly people, and urban blue-collar workers. Based on the A4-A5 portraits, attract new user circles to increase traffic.

That is: the right people (user portraits), multiple levels (5A stratification), multi-dimensional reach (off-site, on-site)

1) Based on the insights of brand 5A people, clear user portraits

2) Produce insight-based crowds and break-circle strategies

3) Implement closed loop through operation

Through the analysis of the 5A of the population and brand users, we can clearly correspond the strategies to the different circles of people. The core of breaking the circle is to attract users other than A4-A5 types, and guide users to gradually settle into A2-A3 users through content, so as to prepare for traffic accumulation for sales conversion.

According to the 5A population level, a reach combination of "brand advertising + content seeding + paid traffic" is formulated to achieve content reach across touchpoints/frequencies.

Off-site: Based on data portraits, select brand advertising to reach the O-A1 population, stimulate conversion of the A1-3 population through short video influencers, and then cooperate with bidding advertising to convert them into the A4 population.

On the site: Super Interactive City and Brand Special Show expose the "O-A1 group" (targeting the opportunity group) and reach new users. Use the Through Train to reach the "A2-3 group" with shopping intentions, stimulate users and deepen their behaviors. Use Diamond Ads to reach the "A3-A4 group" (interested group, purchasing group). Use Pinxiaobao to reach the "A4-A5 group" (purchasing group, loyal group).

(4) Phase 4: 5 billion club, building a moat

Through long-term operations and content output, the brand improves the ROI of O-A1-A3-A4, strengthens the continuous reach of A5 super users, and drives the long-term compound value of the brand.

Only by taking into account all aspects at the organizational level, from products to marketing, to channels, and finally to the supply chain, and even talent management and financial management, can we build a solid wall and consolidate the moat. At the brand level, we use multiple dimensions, multiple frequencies, and multiple touches to build a full-link brand growth from advertising to content marketing, and then to scenarios, not only online but also including the penetration of offline channels.

1-5 billion, it is time to build a moat. From products, to marketing, to channels, and finally to the supply chain, and even including talent management and financial management, all aspects must be taken into consideration to build a high wall and consolidate the moat.

The method of spending money to buy traffic in exchange for sales may be acceptable in the early stages of a brand. However, if the brand still remains at a low-level operation of relying solely on traffic in exchange for sales in the middle and late stages, the brand will have to work for KOLs and Internet celebrities. In essence, KOLs and internet celebrities are channels, not brands themselves. Selling goods and building brands are two different things. If users trust KOLs rather than brands.

This means that the company’s brand has not really established mind and brand awareness among the target population. Once the consumers’ minds are saturated, it will be very difficult for you to break into them again - the key to seizing the opportunity is the window period of the category. Once consumers are overloaded with a certain type of information, it is difficult for them to remember similar information.

For example: In the three years from 2017 to 2020, Neiwai has 110 retail experience stores in 29 first- and second-tier cities across the country, and has strategic cooperation with first-tier owners such as Kerry, Sun Hung Kai, Swire, Hang Lung, and China Resources. On the one hand, choosing a high-potential business district as the location for offline stores can reflect the brand image and effectively form brand endorsement.

On the other hand, as traffic becomes more and more expensive, offline channels can bring brands greater room for category expansion and more development opportunities. With the help of the layout of offline channels, Neiwai has gradually expanded from underwear to home casual wear, dance sports and home products.

Breakthrough: User focus, occupation characteristics, and scene reconstruction

1. User focus

(1) Zulijian

When selling products to someone, you have to start with their needs. The reason why Zulijian can stand out in the red ocean of market competition is that its boss Zhang Jingkang has a clear idea. He wants to do business with the elderly (user focus). People’s legs age first. So take a hundred steps after a meal. The more obvious it is, the more it is ignored by the market.

• Brand: Zulijian
• User Focus: Seniors
• Category: Shoes

As a result, a series of market actions centered on the elderly came into being; precise and effective selling points also emerged; in terms of product design, square dance shoes, travel shoes, casual walking shoes, and non-slip bathroom slippers were made around the key life scenes of the elderly - the essence of business is people, and it is the needs that are focused on and magnified by users.

(2) Toffee Pie

In July 2015, Naitangpai started to build a community on Douban. The book "Must-Read Before Joining the Group: The Origin and Ideas of Naitangpai" shared Naitangpai's insights into the Chinese underwear market.

There is a high degree of repetition in large-cup bras in China, and most of them are the "auntie styles" that girls despise; the styles of European and American brands do not suit the Chinese body shape, and the aesthetic demands are also different; invisible, strapless, swimsuit, sports, and sexy bras are very difficult to find... These insights into the pain points of target consumers have stimulated potential demand. In terms of content, traffic, fans, and monetization, Naitangpai has completed the first step.

• Brand: Toffee Pie
• User Focus: Large Cup Women
• Category: Bra

2. Occupancy characteristics: process, raw materials, functions

(1) Three and a half meals

Starting from the product function, focus on the characteristics (instant dissolution). In response to the criticism that traditional coffee is inconvenient and instant coffee is not tasty, we strike a balance between taste and convenience based on extraction technology, focusing on its instant characteristics.

Everything can be sold at Santonban, but the 6-10 yuan pricing strategy leaves enough room for future cost-effective brands (same instant product, half the price), which also determines Santonban’s fate of moving from a category pioneer to a high-end brand.

• Brand: Santonban
• Category: Instant coffee
• Features: Instant
• Dramatic expression: Everything can be eaten in three and a half meals

(2) Yuanqi Forest

Happy Fat House Water, the A side of demand is greed and the B side is fear. Magnifying beauty satisfies greed, while escaping fear brings action. Yuanqi Forest: Found the perfect combination between sugar-free and sparkling water - redefining sugar-free sparkling water.

In December 2016, Ran Tea was launched on the market with “0 sugar” as its selling point, becoming Yuanqi Forest’s first product. Rancha's performance was lukewarm. Following the concept of "sugar-free", Yuanqi Forest launched its first cucumber-flavored soda sparkling water in March 2018. During Tmall's 618 event in 2019, Yuanqi Forest took the top spot in the water beverage category with sales of 2.26 million bottles. Since then, Yuanqi Forest has become more widely recognized. Yuanqi Forest has developed a long product line around sugar-free and low-sugar products.

• Point: Breaking the circle with sugar-free sparkling water
• Line: Innovate in categories with sugar-free and low-sugar products to extend product lines
• Surface: Multi-category penetration, Yuanqi Forest products have covered multiple categories such as sparkling water, tea drinks, functional drinks, ready-to-drink milk tea, juice drinks, electrolyte drinks, energy drinks, coffee drinks and even yogurt
• Body: The growth rate of sugar-free beverages reached more than 30% in 2017 and 2018. In 2018, the domestic sparkling water industry just reached a market value of 9 billion yuan.

(3) Wang Baobao

• Insight into the differentiation opportunities brought by category characteristics and seek incremental markets
• Carry out micro-innovation on products, actively differentiate category characteristics, and strive for leading brand position
• Taking advantage of the structural changes in new channels and new media, the cognitive dividends brought by traffic

For traditional oatmeal brands, 60% of their marketing and advertising expenses are used for sales promotion. A large amount of sales promotion expenses are invested at the terminal through display fees, entry fees, purchase-and-get-one-free fees, and rebate fees in the store, while their advertising expenses only account for 10% of it. Unlike traditional oatmeal brands, Wang Baobao focuses on online sales: Xiaohongshu, Bilibili, Douyin, and online celebrity sales. The art of war lies in investing more troops than the enemy at the attack and defense points. - Napoleon

(4) Jane Eyre

The low-fat, low-sugar, and even zero-sugar concepts that have swept the beverage industry can also be replicated in the yogurt category. Jane Eyre targets the following groups: those aged 22 to 40, first- and second-tier markets, and highly educated mothers. At the same time, it focuses on high-end low-temperature yogurt in the low-temperature yogurt market, and uses the "no additives" concept to support its high-end, high-price strategy.

• Product: Low temperature yogurt
• Process: natural, no additives
• Dramatic expression: raw milk, sugar, lactic acid bacteria, nothing else

3. Scene Reconstruction

The changes in commercial space, from large supermarkets to small convenience stores, from shelves and display cases to Hema Fresh, and from a food street to a one-stop shopping and eating complex, are caused by the changes in the shopping and entertainment demands of the new consumer groups. A scene is a complete consumption behavior, including time, place, people and events. A scenario is an automatic and spontaneous satisfaction of a need.

(1) Helens

Busy young people work during the day, have coffee to refresh themselves, and snacks to relieve stress. At night, there seems to be no third choice except bars, KTVs, and cinemas. Therefore, a new bar built for young people, Helen's Bistro, was born.

Today, Helen's Bistro has become the midnight Starbucks for young people. It is currently the largest bistro in China and a bar where one can consume without stress. Young people nowadays always have indescribable pressure and need a pressure-free space to soothe their emotions. Helens provides a differentiated choice for young people in terms of cost-effectiveness and environment.

• Products: Solutions for scenarios
• Brand: Occupies a heavy scene
• Channels/Media: Visual Communication, Links
• Price: stress-free consumption for young people

(2) Bear Electric Appliances

Urban youths are under great pressure at work and are lazy in life. Cooking is usually for one person, and traditional rice cookers produce too much rice, which would be a pity to throw away. Xiaoxiong Electric Appliances took the initiative to differentiate the categories of home appliances, explore the scenarios, and launched an electric lunch box. In addition to being able to steam rice and vegetables, it can also cook soup and has other functions. It is beautiful and inexpensive.

• Scene: Workers who bring their own lunch
• Pain point: Microwave heating can easily cause deviations in food moisture and taste.
• Demand: convenient, healthy, affordable

Author: New Consumer Brand Research Society

Source: New Consumer Brand Research Institute