The boundary of the game between brand and marketing!

Don’t ask what your brand can do for you, first ask what your brand can do for your customers.

When people build a brand, they rarely pay attention to what value the brand can bring to customers. Because when we talk about brand value, we mainly refer to the value of the seller. However, only when a brand can bring value to the buyer can it ultimately bring value to the seller.

In the presentation of the new brand strategy, it is not just fancy slides and a few success stories that can build a brand. Only when what you say is connected with customers, perceptible to them, and provides value to them, can it be the core factor of the brand and avoid becoming a meaningless one-sided brand promotion.

In terms of the value we provide to our customers, we have summarized the following points:

1. Does the brand make decision easier?

2. Can brands reduce risks?

3. Does the brand make customers gain respect from others?

4. Does the brand create dreams for customers?

1. Does the brand make decision-making easier?

A brand can help customers make decisions more easily.

McDonald's is not the most upscale or fashionable restaurant, but it is one of the most powerful restaurant brands in the world. In 2020, McDonald's global sales reached US$20 billion, far exceeding its peers. The value provided by McDonald's lies in reducing users' decision-making costs. Whether you go to Beijing or Hong Kong, New York or Jakarta, sooner or later you will go to McDonald's for dinner. The yellow golden arch logo is the best reason to attract people who have never set foot on this land.

It is not easy to find delicious food when you are out. McDonald’s various meal packages can always meet your needs. We like to eat there, not necessarily because McDonald's food is delicious, but because of the familiar and relaxing feeling that makes it an easy choice. People always choose things that are familiar to them, especially in unfamiliar environments. Familiar things can help us reduce anxiety.

Evolutionists believe that the determining factor may depend on how difficult it is for the brain to process external information. The easier it is to recognize, the easier it is for the brain to process it, and the better people feel, leading to positive evaluations.

If the law of attraction is applied to love, it means that if you want to attract someone, it is best to appear around the other person often and make yourself familiar to them, because people always like familiar things.

How to help consumers make decisions?

In the process of helping consumers make decisions, we can make good use of the anchor tool. Anchor refers to your psychological expectation of a certain item. Once the psychological expectation is formed, consumers will be more likely to accept it if the price is adjusted on this basis.

1. The power of “three”

McDonald's has three sizes of French fries and milkshakes, Starbucks has medium, large, and extra large cups, and many restaurants also have three price levels for lunch sets. These are the three options, why is number three valued by merchants?

The uniqueness of the three choices is that if a merchant sells two sizes of coffee, a small cup for 25 RMB and a large cup for 30 RMB, perhaps half of the people will buy the small cup and the other half will buy the large cup. But if I add an extra large cup, the price will be 36 yuan. Maybe no one will buy a super large cup, but now only 20% of people buy a small cup, and 80% of people will buy a large cup.

The purpose of launching the third option is to encourage customers to choose the second option, while at the same time promoting the lowest price as only 25 yuan.

This law is everywhere. When you open Taobao, you always see the lowest price. But when you click in, you will always find that there are products of various specifications. In the end, there is a high probability that you will not buy the product with the lowest price.

2. Percentages and numbers are two different things

Flexible use of percentages also makes it easier for consumers to make decisions.

There was an experiment in which psychiatrists decided whether to release a mentally ill patient. When psychiatrists were told that, in such cases, approximately 20 out of 100 people would exhibit violent behavior, 59% of psychiatrists would choose to release the patient. When told that 20% of the patients could be released, 79% of the experts chose to release the patients.

Psychiatrists make decisions based on the safety of the public, but in the end there are huge differences. They should be the ones making the most professional judgements, but they will be influenced by the way numbers and percentages are expressed.

This gives the brand huge imagination. If you want consumers to think of the number as larger, you should talk about absolute numbers instead of percentages; if you want consumers to think of the number as smaller, you should talk about percentages. When major brands are doing promotions, we always see advertising slogans like, "Buy 1,000 and get a 200 yuan discount" instead of "Buy over 1,000 and get a 20% discount."

This tactic is also very popular in the financial world. On Wall Street, financial elites always emphasize that they will only charge a 1.9% commission on invested funds each year. On the surface, it doesn't seem like there's much money. But the result is that an investor who invests $500,000 a year has to pay the fund manager $10,000 a year in fees.

Investors pay huge consulting fees to the financial industry and don't complain, not because they don't care, but because they may not even know how much they are paying.

2. Can brands reduce risks?

The basic function of a brand is to identify and differentiate. Today, when there are so many brands, brands reduce consumers' cognitive costs, otherwise they will be swallowed up in the vast ocean of information.

It is difficult for us to judge the quality of many products, and even after buying many products, we still don’t know whether they are good or bad. This is why people choose “the best doctor in the city” or “the most expensive lawyer in the legal profession” in life.

"High price and famous reputation" are naturally the weapons for brands to win over consumers. Whether it is Moutai, Canada Goose down jackets, or luxury goods that have been popular for many years, they all meet this principle. Because people psychologically feel that the higher the price of a product, the higher the probability that it is better, and the lower the risk of buying a bad product.

The reason why Moutai is so popular is that it reduces the risks of gift giving or banqueting. Rather than coming up with surprises, as long as you can ensure that there are no mistakes and that the quality is excellent without making mistakes, it will be a tacit understanding between the gift giver and the gift recipient, and this is how you reduce risks.

The significance behind reputation is self-evident. Brands spend huge amounts of money on advertising every year, and what they want is a reputation that allows them to occupy an influential position in the minds of consumers and guide consumption.

In order to increase the price, many brands will come up with some product features that are different from others, thereby increasing the price. For example, Canada Goose always emphasizes the cold resistance of its products, and has created experience rooms ranging from -5 degrees to -25 degrees, and constantly emphasizes the cold resistance of its brand; Moutai constantly emphasizes the status of its national liquor, making consumers understand that they have bought good things without losing face.

The focus of these brand campaigns is the same, which is to reduce the risk of consumer decision-making.

Fast Retailing, the parent company of Uniqlo and one of the world's three largest clothing giants, also pioneered a sales method to reduce consumer risks at the beginning of its establishment: basic styles. When it comes to basic styles, I think everyone is basically familiar with them. Whether it is HM or Uniqlo, there are basic styles in black, white or relatively single colors. This style does not change much, but it is a long-selling brand.

In the early days of Uniqlo, founder Tadashi Yanai chose the cheap fashion line based on the trend of the public pursuing high-priced clothing. When Yanai Tadashi saw the long line at the door, he knew that he had finally made the right choice. Not long after, Yanai Tadashi adjusted his brand strategy again, changing from selling cheap fashion to adding basic clothing.

Shanghai UNIQLO Flagship Store

Among all the clothing categories Liu tried, he found that basic styles accounted for a large proportion of sales, regardless of the positioning of the clothing. And selling trendy clothes is also full of hassles.

Because the sales cycle of trendy clothing is short and there are many varieties, many times, the good-selling items do not earn the money they should have because they do not purchase enough, and many styles cannot be sold, resulting in inventory backlogs and slow capital turnover. At this time, the effectiveness of the basic model is reflected.

Due to the small number of styles and high efficiency of capital turnover, Uniqlo can further lower prices while ensuring profits. Low prices can bring higher sales, which in turn bring lower purchase prices.

From the product side, the good sales of basic models can be seen from the sales volume, while from the consumer side, it is because basic models reduce the risk of consumer decision-making. Rather than wearing flashy clothes that might make people laugh, it’s always a good idea to choose something that won’t go wrong. This fear of losing is the underlying logic behind consumer purchases.

How can brands reduce the risk of consumer decision making?

Create unique features for the products, implant them into the minds of consumers through advertising, and maximize the price on this basis. If the brand placement is successful and has a good reputation, consumers will find it relatively easy to accept it even if the price is a little higher; create basic styles that will not go wrong, so that consumers will choose them even though they are afraid of taking risks.

3. Does the brand make customers gain respect from others?

Why do people need respect from others so much?

The most essential human nature is the desire to be appreciated. The desire to feel important is also a major difference between humans and animals.

Here is a negative example. Recently, CCTV released a documentary titled "Sticking to the Iron Rules", which features officials at all levels who were imprisoned for corruption and abuse of power. Zhao Hongshun is the deputy director of the State Tobacco Monopoly Administration. He has stockpiled thousands of bottles of Moutai at home. According to his description, he was intoxicated by the compliments and toasts from others, and felt elated and good in such an environment. This feeling is like a drug addiction that he can't quit. It is this feeling that makes him feel that he has realized his self-worth.

Of course, behind this kind of respect, there is no real realization of self-worth, but just a false bubble. But we can still see from this how important respect is to a person.

Let me give you another example from real life. After a husband and his wife get married, the wife's biggest complaint is that her husband no longer praises her or compliments her, making her feel disrespected and unappreciated.

In order to seek the attention of others, American President George Washington liked to be called "His Excellency the President of the United States of America", Columbus begged the government to grant him the title of "Commander-in-Chief of the Oceans and Governor-General of India", and Russian Empress Catherine would not read any letters that did not address her as "Her Majesty the Queen". These people who made extraordinary achievements in history are also obsessed with the word "respect". How can ordinary poor people easily escape it?

Understanding the concept that it is human nature to want to be respected, we have reason to focus on whether we bring respect to customers during the brand building process.

I believe everyone is familiar with the story of the 8848 mobile phone. The 8848 mobile phone is developed by Beijing Mount Everest Company. The reason for this name is that the height of Mount Everest is 8848. The meaning of the name 8848 also expresses its positioning, that is, the minority of people who are at a higher peak. The positioning determines its price. The entry-level price of the 8848 mobile phone is 9,999 yuan, and the highest price has been 29,999 yuan.

8848 mobile phone priced at 29999

The target audience of 8848 mobile phone is obviously not ordinary people with no purchasing power, but business owners or successful people who have achieved some success. These people need an emotional outlet to express their own emotional demands that are different from others. The emergence of the 8848 mobile phone satisfied their wishes. What others cannot afford is what they pursue. For them, the configuration of the mobile phone is not the most important thing; highlighting their identity is the key point.

Inviting Wang Shi, Feng Xiaogang and others to endorse the brand further highlights its business attributes. The words such as "luxury, success, double password and double space" mentioned repeatedly in the advertisements give consumers enough respect, allowing the audience to have a sense of privacy and gain satisfaction from the bottom of their hearts.

Relying on this brand strategy, if 8848 Mobile sold 100,000 M2 phones in 2016, the profit would be equivalent to that of 10 million Redmi phones. While other mobile phone manufacturers were competing fiercely, he only focused on one thousandth of the market, which was the consumers who demanded to be different and respected.

Although with the popularity of smartphones, core selling points such as encrypted calls and dual systems no longer have an advantage, they were definitely examples of brand success a few years ago.

4. Does the brand help customers achieve a more ideal world?

A successful brand must meet the needs of the ideological field, and its brand proposition must grasp the opportunities in the ideological field generated by social and historical changes. It is in this way that a brand can realize its dreams successfully.

Using cultural strategy to create dreams for users is one of the magic weapons for Nike’s brand success. What we are most familiar with about Nike is the well-known brand slogan "just do it". The cultural strategy behind this slogan is one of the keys to Nike's gradual surpassing of Adidas and many other brands.

In 1971, Phil Knight and Bill Bowerman sold their first pair of Nike shoes. Ten years later, the brand's annual sales reached $458 million. In the 1990s, Nike's annual sales reached 3 billion US dollars. In the list of "The World's 50 Most Valuable Apparel Brands in 2020" released by British consulting firm Brand Finance last year, Nike undisputedly ranked first with a value of US$300.8 billion.

Why do consumers value Nike so highly?

Many people think that Nike designs the best shoes, but this is not true. In the field of shoemaking, Nike is not the only company that has innovated in technology, but none of them has been as successful as it has. Although one of the founders, Bowerman, is a professional fitness coach and is well-versed in shoes, Nike's winning formula lies in the shaping of cultural concepts rather than innovative products.

In the 1960s, most shoe companies were obsessed with advanced technology, and some capable companies tried to combine new materials and medicine in the design of sports shoes. This is naturally good for athletes who pay close attention to the footwear market. For them, even a small improvement in performance is very important.

This allowed these technology-focused companies to be recognized and popular across the United States in the 1960s. But in the 1970s, ordinary consumers were tired of this race for shoe technology and couldn't see any difference in these changes, and these consumers happened to be the vast majority of the market. This was also the beginning of Nike's shaping of cultural innovation. In order to bridge this product gap, Nike shifted from initial technological innovation to cultural innovation.

Nike's cultural marketing strategy is to create dreams for consumers. Speaking of this, we must also consider the social background of the United States at that time. In the 1970s, the United States experienced economic stagflation as the stimulus brought by technology and war slowed down, unemployment increased, and prices generally rose. In this era, people's hobbies have changed. From the national love of basketball and football, it has turned to the most individualistic sport of running. They believe that running has the sensitivity of resisting authority, and joining collective activities means falling into the trap of institutionalization. The runner runs alone and takes responsibility for his or her success or failure alone. This ideology is called personal will to fight.

Nike, having insight into the changes in consumer ideology, decided to change its previous advertising tactics. The protagonists of the advertisement were changed from various sports stars to unknown runners, and the slogan used was "The track has no focus." The personal perseverance conveyed by Nike was quickly perceived by consumers. In 1979, Nike, which had only been in business for 8 years, surpassed Adidas, which had a 30-year history.

How did the myth of “JUST DO IT” come about?

In the 1980s, the global economy collapsed several times, and a large number of companies were affected, merged or closed down. Americans find themselves in an uneasy environment with high risks and many difficulties, and they need a new cultural concept. To respond to this opportunity, Weiden & Kennedy, in partnership with Nike, dug into the most unexpected angle: the African-American ghetto. Nike touched on the issue of social inequality that was hanging on the hearts of the people, something that other companies at the time tried to avoid, but Nike did it.

The slums in the United States in the 1980s were the most troublesome and shameful places in the United States. These neighborhoods, made up of African Americans, face some of the cruelest living conditions in the world, with broken families, rampant gangs, racist police, and schools that are like prisons. To survive here, one must have strong will and street skills.

Only sports were an exception. Nike tells people that sports provide an equal playing field, which allows those at the bottom to escape from harsh environments through competition. Escaping the slums and achieving sports success has become the American dream for many African Americans at the bottom of society. Nike then hired Jordan as its ambassador, combining ideas with products to shape a sense of firmness in people's hearts amid social unrest.

After Nike successfully implemented this tactic in the United States, it expanded to Latin America and other countries, continuously using it in areas where it had yet to make a breakthrough. Letting the brand create dreams for customers and implanting brand concepts into consumers' lives is undoubtedly the best marketing. The United States has always been proud of its advocacy of "freedom". "Just do it" is not just an advertising slogan, but also represents the process of consumers realizing their ideal life.

To summarize this article, we have highlighted 4 values ​​we provide to our customers. These include “ whether it makes purchasing decisions easy ”, “ whether it reduces consumer risks ”, “ whether it makes consumers respected ” and “ whether it builds a more ideal world for consumers ”. These four requirements are exactly the value we bring to our customers, rather than squeezing empty value from the brand.

Appendix: Nike's operating income by region: China is higher than other regions

Author: Consumer Industry

Source: Consumer Industry (ID: xiaofeijie316)