Case analysis: How does Juewei Duck Neck do social marketing?

If you like to eat duck necks and braised food, you may be familiar with the names Zhou Hei Ya and Juewei Duck Neck.

However, due to the epidemic, both companies have been greatly affected. In the first half of 2020, Zhou Hei Ya's revenue was 903 million yuan, a year-on-year decrease of 44.4%, while Juewei Foods' revenue was 2.413 billion yuan, a year-on-year decrease of only 3.08%.

Of course, the current result is definitely not caused by a single factor. It may include the operating models of the two companies. Zhou Hei Ya has been self-operated for a long time and only started franchising in 2019, while Juewei has always adopted a franchise policy, etc.

Today, putting aside other factors, let’s focus on analyzing how Juewei Duck Neck does social marketing .

1. Specific performance of merchants in 2020

Zhou Hei Ya: Revenue in the first half of 2020 was 903 million yuan, a year-on-year decrease of 44.4%; net loss was 42 million yuan, compared with a profit of 224 million yuan in the previous year, a year-on-year decrease of 118.8% from profit to loss.

August 25th news Zhou Hei Ya (HK: 01458) disclosed its 2020 interim report yesterday. The company achieved revenue of 903 million yuan in the first half of the year, a year-on-year decrease of 44.4%; it realized a net loss of 42 million yuan, compared with a profit of 224 million yuan in the previous year, a year-on-year decrease of 118.8% from profit to loss.

Juewei Foods: Revenue in the first half of 2020 was 2.413 billion yuan, a year-on-year decrease of 3.08%; net profit was 274 million yuan, a year-on-year decrease of 30.78%. In the first three quarters, revenue was 3.885 billion yuan, down 0.01% year-on-year; net profit was 520 million yuan, down 15.33% year-on-year.

On the evening of October 29, Juewei Foods released its operating data for the first three quarters of 2020 (unaudited). During the period, the company achieved revenue of 3.885 billion yuan, a year-on-year decrease of 0.01%; net profit of 520 million yuan, a year-on-year decrease of 15.33%.

According to the semi-annual report, although both are losing money, Juewei obviously lost less than Zhou Hei Ya, and Juewei Foods explained the reasons for the loss:

Due to the outbreak of the new coronavirus pandemic in the first half of 2020, in order to respond to the country's needs to fight the epidemic, some stores were temporarily closed at the beginning of this year; at the same time, during the epidemic, support for franchisees was increased, resulting in sales expenses reaching 235 million yuan, a year-on-year increase of 15.21%.

In addition, the epidemic has had a certain impact on the company's production, logistics distribution, marketing and other work.

It can be seen that Juewei Duck Neck increased sales expenses for franchisees by 235 million yuan during the epidemic. The company's marketing strategy has been upgraded from "land grabbing and saturated store opening" to "deep coverage and intensive channel cultivation". In terms of franchisee operations, the headquarters provides a number of empowerment strategies.

2. How does Juewei empower its stores in terms of marketing?

We outsiders don’t know which stores are specifically eligible for empowerment, but this can be seen from the investment and franchise information that is synchronized to the outside world.

Juewei has six major empowerment systems for empowering stores, including site selection evaluation, store design, technical training, operation guidance, R&D support, and logistics support; in terms of visible R&D support, it developed a community marketing mini program during the epidemic, and used corporate WeChat and service accounts for marketing.

3. Juewei’s social marketing strategy

1. Overall steps

Offline traffic diversion - add corporate WeChat group - group operation.

2. Traffic diversion

To attract new customers in the store, the clerk will guide them to add the company WeChat group and inform them of promotional activities (it seems that there is no online promotion in this area, so the online promotion strategy will not be discussed here).

3. Group operations

Design different activities every day to increase the fun of the activities and promote order conversion within the group;

4. Related Tools

• Service account: guide users to follow the service account and attract fans to join their own private domain;
• Community marketing mini program: Develop a community marketing mini program that is only open to the public - Juewei Food Assistant, which realizes marketing functions while reducing the marketing costs of franchisees (not open to the public, and currently only has the functions of shaking full discount coupons and issuing red envelopes);
• Enterprise WeChat: Use enterprise WeChat groups to acquire and operate users and accurately establish private domain traffic pools.

4. Analysis of specific activities

1. Activity 1: Public domain traffic + private domain traffic

Event time: 11.11

Activity form: Takeaway platform discount + Wednesday membership day

Specific strategy: various takeaway platforms’ discounts + own member day discounts

Activity restrictions: Same as other food delivery platforms

Activity tools: corporate WeChat group + various food delivery platforms + community marketing applets

1. Enterprise WeChat group: operation group users;
2. Activities on various food delivery platforms: Use activities to attract users of various food delivery platforms to place orders;
3. Mini Program: Use Juewei Food Assistant to get red envelopes with full shakes to guide private domain traffic conversion.

(Social marketing tools developed independently are not open to the public;)

Specific steps:

1. Discount activities on food delivery platforms: attract public domain traffic conversion;
2. Launch Wednesday Membership Day event: attract private domain traffic conversion.

Specific activities:

1) Offer discounts to food delivery platforms such as Ele.me, Meituan, and Dianping: attract public domain traffic conversion;

2) Launch Wednesday Member Day activities: attract private domain traffic conversion;

Use social marketing tools to launch Wednesday membership day activities, where members can get discounts by shaking their phones;

The form of large discount coupons + free shipping increases the attributes of the game and promotes conversion, and new group members will be notified.

Specific highlights:

1. Social marketing tools: Shake to get discount coupons, add fun to activities, and independently developed social marketing tools, which also save franchisee marketing costs;
2. Enterprise WeChat operation: Use enterprise WeChat to operate private domain communities;
3. The event will not forget to tag new members in the group: promote order conversion from new users.

Activity Questions:

New users enter the store by scanning the QR code, which means they placed an order on the same day. Why would they place a second order? New users should be given a reason to place an order, otherwise the conversion rate should not be high.

2. Activity 2: In-store activity with a prize draw for purchases over 68 yuan

Event time: 11.9-11.15

Activity form: In-store activities with a prize draw of 68 yuan + takeaway discounts

Specific strategy: If you spend 68 or more in the store, you can draw 4 prizes, including the special prize of a free meal, the first prize of a duck bun, the second prize of a product exchanged for a red envelope of 11.11, the third prize of a duck head, and the fourth prize of a product exchanged for a red envelope of 1.1.

Activity restrictions: In-store activities, on-site redemption, invalid upon leaving the store.

Activity tool: Enterprise WeChat group

1. Enterprise WeChat group: operation group users;
2. Community operation: simultaneous activities and in-store raffles and redemptions.

Specific steps:

1. Distribution activity description;
2. On-site redemption.

Specific activities:

Specific highlights:

Diversification of event prizes: On the one hand, group operations promote the conversion of private domain traffic; on the other hand, the prizes are diversified, using prizes to attract user conversions and increase the average order value.

3. Activity 3: Lucky Red Packet

Event time: 11.16

Activity form: Group red envelope

Specific strategy: 10 red packets of 5 yuan are distributed, and group members compete for luck to grab the red packets. The luckiest ones to get 10% to 20% off on orders respectively.

Activity restrictions: Amount within 200 yuan, only limited to today, those who cannot come can transfer.

Activity tools: corporate WeChat group + official service account + community marketing mini program.

1. Enterprise WeChat group: operation group users;
2. Service account: "Juewei Duck Neck": Get more fans;
3. Mini program: "Juewei Food Assistant" is not open to the public.

Specific steps:

1. Picture + service account QR code: traffic diversion + event notification;
2. Activity details: Distribute the activity details and guide group members to attract new members;
3. Issue red envelopes: Use the Juewei Food Assistant applet to issue red envelopes;
4. Announcement of the list of winners: Announce the list of winners and inform them of the usage method.

Specific activities:

1) Picture + service account QR code: traffic diversion + event notification:

2) Activity details: distribute the activity details and guide group members to attract new members;

1-4 users will get 40%-80% discount on orders, accumulating 5 users.

3) Issue red envelopes: Use the Juewei Food Assistant applet to issue red envelopes;

4) Announcement of the list of winners: Announce the list of winners and inform them how to use the prizes. Also, inform those who cannot come that the prizes can be transferred.

Estimated income and expenditure analysis: Spend 5 yuan, get 5 accurate users, and get 60%-90% off order red envelopes respectively. Based on the maximum consumption of 200 yuan per person, the cumulative sales amount for the five customers is 780 yuan, and the comprehensive discount is 28% off.

The official gross profit margin announced in 2019 was 34%, and the marketing discount was set at 78%. It is clear that this is not a loss-making business.

Specific highlights:

1. Social marketing tools: Use Juewei Food Assistant to distribute red envelopes;
2. Enterprise WeChat operation: Use enterprise WeChat to operate private domain communities;
3. Lucky red envelope: Get different discounts based on your luck ranking.

5. What can we learn from

Although small and medium-sized enterprises may not have the R&D capabilities to make their own mini-programs and cannot implement the shake-to-red envelope function, they can learn from other operating models:

1. Ways to attract new customers

You can set up a social WeChat group in the store to guide users to join the group; be sure to design good new customer acquisition scripts for your store staff.

2. In-store activities

Daily activities are different, which increases fun and interactivity while guiding order conversions.

• Store activities: Increase offline store activities, use diversified event prizes to attract fans to convert, and increase customer unit price;
• Red envelope activities: Use the lucky red envelope format that users like to increase interactive activities and stimulate conversions;
• Food delivery platform discount activities: This activity can be set up on each food delivery platform based on the average customer spending.

3. Operations

Public domain traffic and private domain traffic are used together: public domain traffic normally promotes the conversion of public domain traffic, but it can be synchronized under private domain traffic. The two do not interfere with each other and complement each other. It depends on user preferences. You can place an order wherever you want.

4. Other aspects

Choose the right time and intensity of the activity: In terms of activity time, since it is a catering business, the merchant will choose to hold the activity before meal times, such as 11 a.m. to 12 p.m. and 5 p.m. to 6 p.m. Everyone can adjust their time according to their own industry situation.

The intensity of the activity should be calculated based on the company's own costs and existing average customer spending, and it should not be decided on a whim.

I hope the above will be helpful and inspiring to everyone. I’m Yuemo, an internet operations expert who’s improving every day. By the way, are there any classmates who are engaged in community operations in the catering industry? How do they organize activities? Welcome to follow us and leave a message at any time.

Author: Yue Mo

Source: Yuemo Channel