Chapter 18 Data link: Jiang Nanchun's 2/8 strategy and long tail strategy

Jiang Nanchun believes in the "2/8 rule", and even integrates it into his daily life, conduct himself in the world, and the rules of entrepreneurship, etc. where he may need it. In 1897, Italian economic sociologist Pareto found that most of the wealth flowed to a small group of people when studying the income distribution of the British; , has a relatively definite unbalanced quantitative relationship.Pareto's research results are: 20% of the population owns 80% of the wealth.Thus, 80/20 became shorthand for this unbalanced relationship.Traditionally, 80/20 talks about the top 80% rather than the bottom 20%.Economists call this discovery "Pareto's Law of Income Distribution" and consider it "one of Pareto's most striking contributions."Later generations named Pareto's discovery differently, such as Pareto's law, Pareto's law, 80/20 law, 28th principle, 2/8 rule, law of least effort, imbalance principle, etc. Wait.

The typical performance of Pareto's "2/8 Law" is: 80% of the output comes from 20% of the input; 80% of the results are attributed to 20% of the effort; 80% of the results are due to 20% of the cause.It tells people the truth that there is generally an unbalanced relationship between input and output, effort and gain, cause and effect.Less input, more output can be obtained; small efforts can achieve great results; the key few are often the main factors that determine the efficiency, output, profit and loss, and success or failure of the entire organization.This actually refuted the principle of "no pain, no gain" and emphasized that "no pain, no gain".

Pareto's "2/8 Law" focuses on "imbalance" rather than moral evaluation, and it is based on the assumption of fairness.The reasoning explained by this interpretation is: if you want to solve a problem, you must grasp the key, you must grasp 20% of the key, and the key minority determines the uncritical majority; but the other 80% that is not critical cannot be ignored in the application process , Try to balance 80% of your psychology, otherwise they will definitely do bad things. Since Pareto proposed the "2/8 rule" at the end of the 19th century, its important practical value has been fully reflected.Whether it is economic and social activities or people's daily life, there is a "2/8 rule" phenomenon:——

20% of the brands occupy 80% of the market share;—— 20% of the products and 20% of the customers account for about 80% of the company's turnover;—— 20% of the products and 20% of the customers usually bring 80% of the profits of the enterprise;—— 20% of civil servants undertake more than 80% of government work;— 20% of forum authors have published more than 80% of high-quality articles;—— 20% of college teachers received more than 80% of teaching and research subsidies;—— The money earned by 20% of stock speculators is the money lost by 80% of stock speculators. ... The significance of the "2/8 rule" lies in that it advocates "seeking breakthroughs in thinking and consciousness" by revealing "phenomenal imbalances".And from Jiang Nanchun, we have seen a new understanding of the "2/8 rule", which is the thinking and comprehension from life:

Jiang Nanchun, who believes in the "2/8 rule", on the other hand, also uses the "long tail theory" with great proficiency. The "long tail theory" is considered to be a complete rebellion against the traditional "2/8 rule", which was summarized by Chris Anderson, editor-in-chief of the American "Wired" magazine.After systematically studying the sales data of Internet retailers such as Amazon, Rhapsody, Blog, Google, eBay, and Netflix, and comparing them with the sales data of traditional retailers such as Wal-Mart, Anderson observed a statistical law (law of large numbers) This phenomenon is just like a demand curve on the two-dimensional coordinates of quantity and variety, dragging a long tail, extending to the end of the horizontal axis representing "variety", hence the name "long tail".

In the past, the "2/8 rule" has always been the only way humans used to define the mainstream and calculate the efficiency of inputs and outputs.It runs through the whole life and business society.In marketing, in order to improve efficiency, manufacturers are used to focusing on the 20% of mainstream products that 80% of customers buy, and focus on maintaining the 20% of mainstream customers who buy 80% of their products. "We've been enduring these lowest-common-denominator tyranny...our thinking is stuck in an economic model driven by mainstream demand." Anderson believes that the "long tail" of the neglected 80% of the "2/8 rule" "It deserves greater attention.

Driven by the Internet, especially in the media and entertainment industry, the economic driving model is showing a trend of shifting from the mainstream market to the non-mainstream market.The market began to differentiate into countless different fields, and presented a situation of diversified audience needs.The traditional market curve is in line with the "2/8 rule". In order to snatch the best-selling product market that brings 80% of the profit, traditional advertisers spend a lot of money on prime time slots of prime TV programs.In fact, ratings for prime TV shows have been shrinking for decades.

For the future of Focus, it may be said that the "long tail" is about strategy, and "2/8" is about strategy.From digital outdoor media such as building TV and digital posters to the Internet and wireless mobile phones, through the in-depth "Focus" media network, Focus enables audiences to personalize information needs and media contact, that is, the "flow" of attention is realized and integrated . "For Focus, our strategy is actually very simple. One of the basic routes is wider coverage, and the other is deeper segmentation. In terms of media form, we will increasingly emphasize interactivity." From a certain perspective, Focus, especially the digital focus in the future, is Jiang Nanchun's grasp and interpretation of the long tail of the media, and it has also become a big concept in the strategic sense of Focus. "Our advertisers have changed from media-centric to audience-centric. From now until 5 years later, advertisers will not study the media, but the lifestyle of the audience. At this time, who can put their products on the market? It’s very powerful when it’s integrated into the lifestyle.” Jiang Nanchun claimed that Focus Group will follow its own basic strategy in the future.