JD.com’s 6.18 event has lasted for a month. What operational weapons does it have?

When you think of June 18, 2017, what’s the first thing that comes to your mind? 618 sale or Father’s Day?

No matter which one we think of first, we must admit one thing: after 10 years of deep cultivation, the "618 Big Sale", a festival created by the Internet, has become a day that can be compared with the traditional "Father's Day".

This year's 618, we saw more online and offline e-commerce companies participating in this event. For one user, it was a shopping spree. For a PM or operations student, this is a rare learning opportunity - so how to learn? "Look at the weapons of this battle, look at the tactics of this battle"

What is the “ JD 618” strategy? Let’s start with the old 4P principle.

4P refers to product, price, place, promotion,
promotion). 4Ps are controllable factors in the marketing process and are also the main means for enterprises to carry out marketing activities . Their specific application forms the company's marketing strategy. For online platforms, product and place are no longer important controllable factors in marketing.

Today we mainly analyze the "price" and "promotion" aspects. This will be more useful for many online activity operations .

Weapon——Price

What does “JD 618” mean to JD? For an e-commerce platform, different resources will be invested in different categories of activities. The 618 JD store anniversary is an A-level event in JD.com. Throughout the year, A-level events include not only 618, but also Double 11 and New Year’s Goods Festival! Therefore, in the event we can see various "cross-category" and "applicable to the entire store" discounts, which are extremely high-level discounts.

Price is the weapon in the “JD 618” campaign. A promotion is actually an offer. Increase people's desire to buy by controlling prices. The understanding of price should not be limited to the selling price. In e-commerce, any strategy related to money can be classified as price.

So what are some of the exciting pricing strategies?

Weapon 1: Single product pricing strategy

The single product pricing strategy is a pricing strategy set on a single product. This strategy is also the easiest for ordinary users to perceive. In other words, the basis of promotion is the comparison of two prices - "original price" and "discount price". The larger the difference, the stronger the discount and the more attractive it is to consumers. The single product pricing strategy is the basis of the entire marketing campaign.

The basic information of “single product pricing strategy” consists of:

1. Type:

• Single product discount: Set discounts for products, such as "10% off" or "25% off"
• Product price: Directly set a new price based on the original price, such as "Original price: 80", "Promotional price: 10 yuan"

2. Basic information:

• Pricing activity time & activity name
• Pricing budget: Promotion budget & inventory of a single product (maximum number of units sold, maximum discount)

3. Promotional information:

• From the perspective of risk control, it is also necessary to set the maximum number of shares that each person can buy.

Application scenarios:

Single product promotion strategies are often combined with flash sales, hot items, store-level promotions, etc. In order to match the atmosphere of the big promotion, there are many ways to render the situation on the product details page. For example, setting up a countdown can increase the sense of urgency when purchasing. Or add promotional advertising copy and promotional banners to the product details page to make the user's entire promotional purchasing experience more coherent.

At the same time, there are many special functions for single product promotion. For example, making reservations for price reductions, or marking price reductions on the front page of a product page (search results page, promotion venue page). These reminder and marking functions play a good catalytic role in the promotion of single products.

Weapon 2: Coupon Strategy

The goal of a single-product promotion strategy is to allow users to “feel like they are saving money even though they are spending money ” by setting up various discounts.

So what is the ultimate goal of promotion? I think it is to make users "feel like they are robbing money even though they are spending money ." The coupon strategy is this "money grabbing feeling".

Basic information of "Coupon" consists of:

1. Type:

• Product coupons: applicable to specified products or specified categories
• Store coupons: applicable to products in a certain store

2. Basic Information

(1) Coupon value:

• Fixed amount: The amount that can be reduced by using the coupon. For example: "10 yuan coupon"
• Random amount: The operator sets an amount range, and the amount received by the user is different

(2) Coupon activation amount: the prerequisite for the coupon to be used. For example: "Available for purchases over 100 yuan"

(3) Coupon validity period

(4) Coupon budget: the number of coupons issued and the maximum total amount of coupons issued

3. Promotional Information

(1) Voucher issuance method:

• Automatic coupon loading: Operation staff screens users and automatically issues coupons to designated groups of people. For example: "New user coupon"
• Collect at the front desk: users need to click to collect manually. Generally combined with flash sale coupons

(2) Platform: General/Mobile-only

Application scenarios:

There are many ways to receive coupons, such as combining with marketing activities, shaking red envelopes , combining with stores, etc. In addition to these uncertain coupon collection scenarios, there are many fixed-scenario entrances for coupon collection:

1. Coupon Collection Center: All coupons can be displayed and collected at the Coupon Collection Center. The coupon center provides excellent classification and filtering functions. For expert users, the coupon center is the best choice for receiving coupons. In addition, the coupon center plays a good supplementary role in event coupon collection. After a user receives a coupon, he or she can go to the coupon center to view other coupons, which greatly improves related collection.
2. Product page: Each coupon has a list of applicable products. Then adding a coupon redemption entrance on each product details page will greatly increase the exposure of the coupons.
3. Checkout process: Shopping carts, order centers, etc. should provide entrances for collecting coupons. Because the coupon redemption scenario is in the settlement process, there is a direct entrance to collect the coupon in the settlement process, which greatly increases the user's convenience.

In addition to the collection process, in order to achieve a closed loop of the overall coupon process, it is also necessary to provide a process from "coupon" to "finding products that can be used for coupons."

Weapon 3: Promotional Strategy

Basic information composition:

1. Promotion Type:

(1) Full discount promotion: when you spend a certain amount, you can get a specified amount off

• For example: "30 off for every 200 spent"
• For example: "30 off for every 200 spent, 60 off for every 400 spent"
• Tiered discounts, for example: "Get Y yuan off for every X yuan you spend, get N yuan off for every Z yuan you spend"

(2) Free gift: If you spend M yuan or more, you can get N yuan free gift.

(3) Gift promotion: In order to increase sales, some products can be given as gifts to consumers.

(4) Promotion of gifts: You can choose gifts when you spend a certain amount of money

(5) Pre-sale promotion: Pay a deposit in advance and make a reservation

(6) Package promotion: Several products are combined and sold as a package. Through promotional packages, customers can buy more products at one time.

(7) Bulk purchase discounts, for example: "40% off for 2 items" or "50% off for 4 items"

(8) Group buying: SNS discounts for purchases

2. Rule setting:

(1) Activity name

(2) Activity time

(3) Participation method: full participation, partial participation, or exclusion of some products

Tactics - Promotion

Price is the basic weapon, and promotoin uses these weapons on the real battlefield!

Let’s get back to our question, “Why does JD’s promotion last for a month?” In other words, if you were given one month to hold a nationwide promotion, what would you do? JD.com has adopted four tactical parallel approaches:

Strategy 1: Featured Events

From May 25th to June 20th, special events were arranged intermittently throughout the month. During the warm-up period, we launched the God Coupon Day, Hot Product Day, Membership Day, etc. At the same time, the appearance of two festivals, " Children's Day " and " Dragon Boat Festival " during the warm-up period, both played a very good role in the 618 warm-up.

After the official event on June 18, a two-day encore event was arranged to continue the popularity of the event.

The special event strategy creates a hotspot by concentrating the same type of discounts.

Strategy 2: Super Brand Day

Since 2015, Tmall has launched the "Tmall Super Brand Day" for merchants, integrating resources between the platform and merchants to create a "Carnival Day" that belongs to the brand itself. For merchants, on the one hand, they can reduce their operating and promotion costs, and on the other hand, they can leverage the power of the platform to seize an excellent opportunity to enhance brand awareness. In 2017, the "Super Brand Day" tactic became increasingly common on e-commerce platforms.

During the entire "JD 618" event this year, different brand activities can be seen every day. For example, you can pull down the homepage of the app to see the brand spokesperson's promotional advertisements for "JD 618", as well as daily brand live broadcasts . For e-commerce platforms, the setting of Super Brand Day can better meet the needs of long-tail users and is more personalized compared to traditional homepages.

Strategy 3: Interactive Red Packets

The composition of the weapon "coupon" is mentioned in the price chapter. Now let’s talk about the tactics involved in “coupons”

1. Coupon entrance: In addition to the entrance combined with marketing activities and the fixed entrance mentioned above, the coupon entrance has gradually developed into "Coupon + X". That is to say, when coupons are combined with different product forms, different entrances will be generated. For example, the search red envelope entrance of "JD 618" allows you to directly receive red envelopes on the search results page when searching for specified keywords . For example, the red envelope entrance on the homepage of "JD 618" adds an ICON floating on the entire homepage, which greatly increases the user-visible area of ​​the coupon grabbing activity.
2. Collecting coupons: The most common way is to collect them directly. This method requires controlling the collection time. Generally, collecting coupons without any threshold depends on hand speed and network speed. Innovative ways include sharing coupons to receive them, or completing tasks to receive them. In addition, with the emergence of various "black technologies", the way of receiving has become more sexy. For example, this year’s “Scan 618” event to win coupons.

Strategy 4: Category Chain

When thinking of JD.com, everyone will definitely think of a comprehensive e-commerce company that offers “all kinds of products”. During big sales, there are too many categories, resulting in “users being unable to focus”, which is a very common problem. “Wanting to buy everything” leads to “not being able to buy anything” in the end. The result of information explosion is that users are paralyzed in purchasing decisions. On the other hand, the long tail of user preference categories makes comprehensive promotional information too redundant. For example, for a otaku who "only buys 3C products", the information of "fresh food", "home appliances" and "household supplies" is redundant and needs to be filtered.

With the category chain, on category day, the platform will recommend products and arrange the venue according to the category. For users, this is more targeted and can provide better decision support. In addition, each business unit has the opportunity to showcase the unique charm of its categories based on specific dates. At the same time, single-day category-focused events provide opportunities for more specialized categories to be showcased.

It can be said that category chaining conforms to the characteristics of mobile Internet, which is fragmented, scenario-based and decentralized. It provides good promotional support to both merchants and consumers.

PS: What are the preliminary preparations for the “JD 618” event? The “JD 618” period is from May 25th to June 20th. After analyzing the four timelines of this month, let’s take a look at the preliminary preparations - "APP function release".

JD.com’s latest app was released on May 18th.

Why should the app be released one week in advance?

The first reason is that many functions related to the big promotion, such as appointment and search optimization, are implemented through native pages. The native page needs to follow the version.
The second reason is that according to online data, it takes about 7 days for an app to be released and for 70% to 80% of users to update it, that is, for most users to update it. Released one week in advance, it just ensures that most users have completed the update.

Summarize

What did “JD.com 618” do in one month? This article analyzes this battle from the two aspects of "weapons" and "tactics".

Weapons: Product pricing, coupons, promotions

Tactics: Featured activities, interactive red envelopes, super brand day, category chain

Mobile application product promotion service: APP promotion service Qinggua Media advertising

The author of this article is @姜太公公  Compiled and published by (Qinggua Media), please indicate the author information and source when reprinting! Site Map