Distribution fission is one of the means of product operation, but due to many misunderstandings, this term can easily be demonized.

The article disassembles New Oriental Datang Xiaoyu’s summer distribution activities, and analyzes the underlying logic of its popular marketing from three aspects: distribution concept, activity situation, and product highlights, and shares it with everyone.

Case disassembly background

New Oriental Datang Xiaoyu is not a sub-brand or subsidiary of New Oriental, but a company in which New Oriental has a stake.

This company can be called the Pinduoduo of the online education field. Its activities are very radical and its ideas are unique. The activities include limited-time group buying, bargaining, lottery, distribution, free items, live broadcast and so on.

Today we will share with you the distribution activity of Datang Xiaoyu - [July Summer Carnival Spokesperson], which mainly includes:

1. Distribution Overview: Main Components and Influencing Factors
2. Activity analysis: [July Summer Carnival Spokesperson]
3. Product highlights and reusable and optimizable points
4. Thinking summary: Unspoken rules that need to be paid attention to in the distribution system

01 Distribution system: main components and influencing factors

When we talk about distribution now, most of the time we are referring to the distribution platform that combines online and offline.

Distribution is a method of taking out a portion of the original platform's promotion fees and giving them to promoters to help the platform promote and sell.

1. Main components

Distribution is mainly composed of promoters, consumers, direct promotion, indirect promotion, commission, etc.:

• Promoter: helps to successfully sell products to users;
• Consumer: The person who purchases and ultimately uses the product;
• Direct promotion: The downline directly promoted by the promoter is the first-level promoter;
• Indirect promotion: The downline promoted by the first-level promoter under the promoter is the second-level promoter;
• Commission: a certain percentage of the paid promoter's commission;

2. Main factors affecting distribution

Therefore, the factors that affect conversion efficiency are poster clicks, page sharing and final purchases.

• Poster clicks: There are several major elements in poster design. Taking the course sharing poster as an example: it needs to have user identity, trust endorsement, theme copy, content extraction, price anchor, sense of urgency, short-term benefits, etc.
• Course details page: Most course details pages will include suitable groups, course delivery, instructor information, course outline/catalog, course benefits, purchase instructions, etc.

02 Activity Analysis: [July Summer Carnival Spokesperson]

Event Overview

1. Event time: June 18, 2020 - July 31, 2020

2. Activity purpose: To promote and sell course products, with prices ranging from RMB 308 to RMB 2799;

3. Event promotion channels: Datang Xiaoyu service account matrix, community, and personal WeChat account.

4. Event theme: July Summer Carnival·Spokesperson Carnival Ceremony, 4 layers of luxury gifts, we declare that we will spoil you to the end.

5. Activity gameplay: Set up a gameplay with 4 layers of superimposed gifts

(2) You will receive gifts based on the number of orders you promote. You can earn RMB 400 for promoting one order and get a RMB 100 bonus. You can earn RMB 9,600 for promoting 24 orders and get a Treee T1 projector.

(3) The promotional turnover amount will be increased to continue to give away gifts; if the promotion amount reaches 888 yuan, 1888 yuan, 3888 yuan, 6888 yuan, or 18888 yuan, physical prizes will be given on top of the promotional amount;

(4) Honor Rankings and bonus red envelopes; 66 gold coins will be awarded for each fan locked. If a total of 68 fans are locked, an additional 66 yuan in cash will be awarded.

03 Product highlights and reusable and optimizable points

1. Product Highlights

The event has a tiered reward system, with a low initial participation threshold. You can get gold coins and cash rewards by locking in your fans. On this basis, a roulette wheel lottery activity was set up. For every new user recommended to scan the code and browse the poster, you will get a chance to draw the silver roulette wheel. For every friend recommended to buy a course, you will get a chance to draw the gold roulette wheel. The prizes for the gold and silver wheels are different. Greatly stimulate users' interest in participation.

The prize distribution format adopts a 4-fold superposition of gifts, combining cash and physical rewards, giving users a feeling that they will lose a lot if they do not promote the product. Four generous gifts, linked together, maximize the promoter's promotion efficiency.

Automatically generate sharing scripts and sharing posters to improve sharing efficiency, guide users to share to their friends circle or mothers group, and acquire more accurate users as much as possible.

A countdown is set on the event details page to give users a sense of tension.

In terms of page layout, the text is very prominent and the page contains a large amount of information, which gives the promoter a strong sense of oppression.

2. Reusable points

Distribution activities need to fully consider their attractiveness to grassroots users. The threshold should not be set too high. Bottom-level users need to be gradually guided and given small profits.

For top users, ranking rewards should be set up to repeatedly tap the potential of top distribution players.

The overlay method is suitable for distribution activities of multiple categories of SKUs, but should be used with caution for single categories.

The prize setting requires a combination of cash and physical objects. Points that can be optimized:

The design of the details page is too full, with too much text and too many page animations, giving people a dazzling feeling.

There are a large number of activities, and multiple activities are combined together. For new users, it is difficult to understand all the activity rules in a short time. There is no other guidance on the page except the text of the activity rules.

The event page can guide users to join the WeChat group, solve common event problems, and guide new users to participate in the event.

The copywriting on the event poster is too radical, using mostly words like "urgent", "last" and "hurry up", which gives users a strong sense of oppression.

The activity has two detail pages, which increases user steps and makes the connection between the two detail pages a bit abrupt.

04 Summary: Unspoken rules that need to be paid attention to in the distribution system

1. Distribution can only be set up to three levels of distribution

Under the current legal provisions, we generally determine whether it is illegal as "within the third level of distribution"

2. Distribution rewards require a tiered setup

The tiered reward setting makes it easier to get prizes in the early stages, which can satisfy users’ psychology. Only after giving users some sweet tastes can users be encouraged to engage in more activities.

Phased management helps reduce the cost investment of early users and gradually guides subsequent users to make additional investments.

3. Distributed products need to be low-cost and not a well-known brand

Lower costs mean greater profits. Compared with well-known brands, the market price of non-well-known brands is relatively fixed, and it is difficult for them to have a high profit margin.

The distribution system is not as complicated as you might think. Understanding the nature and key points of distribution, as well as the psychological knowledge behind it, can help you master the distribution system.

Different industries and different products need to adjust their own distribution systems according to actual conditions. Before designing, you need to fully consider the target users and remember not to copy the distribution system.

Author: Jiang Liuer

Source: Jiang Liuer