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Chapter 9 Chapter 08 Advertisements Improve Cost-effectiveness of Products

Highlights of this chapter: Under the influence of the "lipstick effect", consumers will choose products with high cost performance.For enterprises, it is easier to understand how to seek the differentiation of product appearance and performance, but it is more difficult to understand how to pursue the essence of the industry.This chapter takes watches, liquor and sports products as examples to explain how to convey the essence and spirit of these products to consumers through advertisements.
Why is the same advertising, but the effect is different? Let me ask you, do you think of Li Ning when you see O'Neill?

Will big star endorsement surely achieve good results? Liu Xiang ran, ran, ran, ran to the finish line, waved his hands, "XXX mineral water, my favorite". What is selling advertising?What are the gaps in our advertising thinking?What is the nature of advertising? A breakthrough in thinking is the first step, rather than relying on funds, technology, or talents. This chapter will explain to the reader how to bring out the spirit of the essence of the industry through advertising.Readers are asked to recall the price/performance formula. Cost performance 2 = (appearance + performance + industry essence) / price

The quality of a product is determined by appearance, performance and the nature of the industry.What is the difference in their positioning?I would like to use the product quality pyramid to explain. As shown in Figure 8-1, the pyramid is divided into three layers. The bottom layer is the appearance of the product, the middle layer is the performance of the product, and the top layer is the essence of the industry.At present, our Chinese entrepreneurs have only reached the lower two levels, and we are still seeking differentiation in product appearance and performance.If this continues, you will never become a brand-name enterprise. What our entrepreneurs should really focus on is to develop the spirit of the essence of the product industry.


Figure 8-1 Product Quality Pyramid
We have not yet reached this level. Taking sports shoes as an example, our sports shoes can have the same appearance as Adidas, the same performance as Nike, and the same performance as Nike, but if you lack the top piece, there is no People pay high prices for your product.Why do you buy Nike instead of the Yue Yuen sneakers manufactured for Nike?It is because of the lack of the spirit of the essence of the product industry.This part is the top priority for the consumer goods industry, but Chinese entrepreneurs are not doing well enough in this area, so we do not have a real world famous brand in China.

And only when this step is achieved, the cost-effective 2 will be accepted by consumers.Let's still take liquor as an example to talk about how to play the spirit of the essence of the industry through advertisements.We all know that the essence of the liquor industry is the precipitation of the history and geography of liquor, but we still need to display this "industry essence" through advertisements, which is called "brand spirit". As a liquor company in Hunan, Liuyanghe Liquor, after its sales exceeded 1.2 billion yuan in 2003, became weak with the fierce competition in the middle and low-end liquor market, and its decline rate was as high as 70% to 80%.Some insiders pointed out that the current annual sales of Liuyang River wine has dropped to 200 million to 300 million yuan.Jinliufu Liquor and Liuyanghe Liquor have encountered the same market conditions. However, the impression of Jinliufu Liquor is rising steadily. By 2007, the sales volume of Jinliufu series wines had maintained double-digit growth for 9 consecutive years. It has ranked first in the sales volume of Wuliangye series brands for 7 consecutive years. Why?


Both Jinliufu and Liuyanghe respect the core, and they both found a well-known company called Wuliangye to do OEM for them, that is, OEM.These two companies have asked Wuliangye to help them produce. The wine produced based on Wuliangye's history and geography is sold partly to Liuyanghe and partly to Jinliufu, which means that their cores are the same.So why does Liuyang River not sell as well as Jinliufu?Why do you not sell wine that is also in line with the nature of the industry when others sell it well?Because of the wrong choice of advertising, consumers cannot agree with your core.

How does Jinliufu touch your heart?It is a "Fu" Yu.It's very interesting to see its advertisement.It is a rural town with a strong rural flavor, and the people are very kind. The old father waited at the entrance of the village for the wanderer who had been away for many years to return, and gave him Jinliufu to drink.Everyone is touched by this local folk custom.Why are you moved?Its "Fu" is well used.What is its advertising word?Go home during the Spring Festival, Jin Liufu.Everyone, when I go home during the Spring Festival, I see a word "Fu" on the door as soon as I get home.Do you remember the Beijing Olympic Fuwa?The message conveyed by the Olympic Games itself is also "blessing".From Olympic Blessing to Jinliufu, Jinliufu grasped the word "Fu" and built a bridge through this word from beginning to end, so that consumers can feel its core.

The question is what is your core, which can be conveyed by "Fu"?From the advertisement, we can see that the two old friends haven’t seen each other for many years, and they are very happy after meeting. Let’s drink and drink together. It’s a blessing to be with you. We haven’t seen each other for decades. Let’s have a drink.At this time, you will not drink those expensive wines, because there is no need to spend that money.You drink moderately priced and moderately flavored wines, neither too spicy nor too weak.The concentration of Jinliufu is neither high nor low, and the price is neither high nor low.After the word "Fu" is typed out, everyone especially likes to drink this wine on festive occasions.And its core is the history and geography of Wuliangye. It can shape your wine into the taste you want. It can make some changes, and it can be made into a wine of 30 to 40 degrees, which just meets your requirements.The question is how do you connect and impress consumers?It uses the word "Fu" to highlight the core of the wine, so you will buy Jinliufu.What about Liuyang River?

"A great man, a famous river, and a famous song" constitute the original brand connotation and cultural personality of Liuyang River Wine.And with the help of "Liuyang River", a Hunan folk song that is well known to all ages and children, Liuyang River wine has spread all over the country.However, Liuyang River Liquor soon fell into a fierce competition with Jinliufu Liquor, which came from the same discipline as itself and had the same positioning. Around the Mid-Autumn Festival in 2005, Liuyanghe Wine and Jinliufu Wine launched a tit-for-tat fight.The slogan of Jinliufu Liquor is "Mid-Autumn Festival Reunion, Jinliufu Liquor", which is exactly the same as Liuyang River's "Mid-Autumn Festival Reunion, Liuyang River".Not only that, from CCTV to Hunan Satellite TV, and then to the billboards of bus shelters in various places, Liuyang River Liquor and Jinliufu Liquor have always been inseparable.In order to win this competition, the planners of Liuyang River Wine set their sights on the popular "Super Girls" at that time. Endorsement, with such a powerful advertising campaign, can Liuyang River Wine beat Jinliufu Wine?For a brand to be successful, what is the support it needs most?


What confuses consumers the most is that Liuyang River Wine has found "Super Girl" as its endorsement.Think about it, what does He Jie have to do with Liuyang River Wine?She doesn't drink.What is its slogan? "Liuyang River, Chinese people's celebration wine." But when you think of He Jie, you don't think of celebration, but you think of the opportunistic feeling shown in the "Super Girl" mode.Putting these two together is a very strange combination, because "Supergirl" has nothing to do with festive wine.The core of Liuyanghe is right, because it is manufactured by Wuliangye, but if you want to advertise "Super Girl", the connection is wrong, which will inevitably lead to failure.In fact, there is not much difference between the two wines, but the advertising is not done well. If Liuyanghe can actively improve this point and show the core through the connection of advertising endorsements, it should be able to create good results.

Once hit by the financial tsunami, ordinary people's wallets shrunk, and entrepreneurs' funds for advertising also shrunk significantly. Do you know what will happen?Under the circumstance that the corporate advertising budget has shrunk significantly, whoever's connection can show the industry essence of the product can successfully improve the cost performance.For readers, what is the so-called lipstick theory?That is, your future consumption will tend to pay more attention to cost-effective consumption. Taking liquor as an example, what does it mean to conform to the nature of the industry?That is how this wine conveys its core, that is, the taste displayed through historical and geographical accumulation, to consumers through a form of advertising, so that they can identify with your core.What can do this is good wine, and consumers will be moved unconsciously.The reason why you will be moved is because it injects the core spirit into the brand through advertising, so that consumers accept its cost-effectiveness 2 . Do you know why companies advertise?What do you think is the purpose of advertising?To fight product popularity, or to fight corporate reputation?You are wrong if you think so.The purpose of advertising is to imbue a product with the spirit you want to give it. What does this mean?Let me give you an example. When you take a dog out and you ring the bell, it doesn’t respond, but if you give it a piece of steak, it responds.After you experimented with this dog 100 times, would you believe it drools when you ring the bell?Through 100 commercials, the spirit of steak has been infused into this ringtone. What brand of sneakers do most of our young adults wear?Nike, Adidas.Did you know that all Nike sneakers are made in China?For example, Yue Yuen Industry in Dongguan, Guangdong produces Nike and Adidas sports shoes, so why don't you buy Nike instead of Yue Yuen, which has the same appearance and quality?Because Nike's sports shoes are infused with sports spirit, but Yue Yuen Industrial has not, but recently I got news that Yue Yuen Industrial has also begun to improve in the direction of sports spirit, which is a progress. Let's take Nike as an example to see how it injects the spirit of sports into sports shoes.Michael Jordan is the spokesperson of Nike. He wore Nike sports shoes (ringtones) and won the championship (steak). What he showed was superb technology and excellent sportsmanship (steak).The second ad was the same. Michael Jordan wore Nike sneakers (ringtones) to win the championship (steak). After watching the ad 100 times, to put it bluntly, you are like dogs trained by steak.The feeling of sportsmanship (steak) has since been injected into sneakers (ringtones), and you pay several times the price for a pair of shoes just for this feeling. why are you advertisingIt is to infuse the spirit you want to give the product—such as cultural spirit, sports spirit or steak spirit—into the product. If you can do this, then you will be successful.So let me tell readers, how can we sell our products better in this economic depression?In addition to improving the appearance, performance or lowering the price as in the past, there is another principle, which is to grasp the essence of your industry through advertising, inject the spirit of the industry essence that your product wants to express into the product, and improve the cost performance 2. And what choice do you make as a consumer?You used to buy 5 pairs of sports shoes a year, but now that the economy is in recession, you can only buy one pair of sports shoes. You will choose sports shoes with high cost performance, and sports shoes injected with sports spirit will increase their cost performance by 2. Therefore, it is naturally easy to be selected. But who to start with?I thought about Liu Xiang for a long time, and I especially hate Liu Xiang.I don’t like mountains or water. After a while, a friend gave me a ticket to watch Liu Xiang’s game. Suddenly the news came that my buddy quit and left. I was the biggest victim.Find another match with him, Li Ning.Why do I dare to talk about Li Ning?Because he is also my student, but he is much smarter than me.I still remember that when I was in the EMBA class of Peking University in 2003, he stood beside me for a long time. I didn’t remember that he was Li Ning, because Li Ning was a handsome, beautiful, and good-looking image in my mind.how to say?Anyway, it's not what Li Ning looks like now.Now Li Ning is a little bald and has a little belly like me, which doesn't match the image I imagined, but he is still more handsome than me. On February 18, 2009, Nike, the world's largest manufacturer of sports shoes and apparel, publicly stated that it would build the largest logistics center in Asia in eastern China.The logistics center with an investment of about US$99 million is the third largest in Asia.It can be seen that Nike is still very optimistic about the prospects of the Chinese market. In 2008, the US financial tsunami swept across the world, economic development slowed down, and purchasing power declined.Although in the context of the economic crisis, Nike, the sports industry giant, was inevitably hit by the financial crisis, and its profits decreased significantly.However, Nike has increased its investment in China against the market, and more confidence comes from its confidence in the Chinese market. According to the data provided by Nike China, Nike has more than 4,000 stores in China. In 2008, Nike's sales in China exceeded US$1.1 billion, a year-on-year increase of more than 50%, much higher than its average growth rate of 26% in the Asia-Pacific region.And these performances are all closely related to Nike's successful publicity.So why is Nike's advertising campaign so successful?What are the gaps between us and well-known foreign companies in advertising?
Nike's image spokesperson is Liu Xiang, how is its advertisement done?How to inject the essence of Nike's industry - sports spirit into its sports shoes?Think about it, readers, what is Nike's sports spirit? Just Do It, what is translated into Chinese? "Fulfill your potential".How to do other people's advertisements?is well thought out.When multinational companies come to China, they basically don't use Chinese advertising companies, even if they are cheap. Chinese people don't know how to advertise.You only need to ask a business executive why he wants to advertise, and he will definitely say to promote the company's popularity.This is all wrong, advertising is to play spirit, a certain kind of spirit.Sports equipment must play sportsmanship. How did Nike succeed?Its ads are fantastic.First of all, look at our Chinese attitude towards sports. We are a very contradictory nation. When it comes to sports, we are both arrogant and inferior.Arrogant what?We are so great, we won 51 gold medals in the Beijing Olympics, and we are very proud.I can tell you that even if we won 51 gold medals, European and American countries have never really regarded us as a sports power. Why?We can't do track and field.We can play table tennis and badminton, but we can’t compete with others in running and jumping, so when it comes to track and field competitions, we feel a little inferior. This kind of complicated and contradictory psychology is constantly intertwined in our hearts, and we are arrogant and inferior . Well, Nike sees that we are arrogant and inferior, great, make an advertisement, poke you once, and poke you three times at a time.As soon as the advertisement came out, two words: law.Law 1, you Chinese (Asian) people are not good, your muscles do not have explosive power, so you can't be a sprint champion.The Chinese are not very happy when they hear it, who said that?I have explosive power, I am very explosive when fighting with others, and I run very fast.Just after I finished speaking, the second law came out again. Chinese (Asian) people can't do it, and they don't have the courage to win.We were even more unhappy when we heard that, who said that?We have the courage to win.Before I finished talking, the third law came out again. You Chinese (Asian) people can't do it, and you can never become a sprinter.At this time, the Chinese couldn't bear it anymore, and the table slapped. The ad goes on to say, "Laws are made to be broken."The Chinese are happy, yes, yes, that's right.As a result, Liu Xiang really beat the pack and won the 110-meter hurdles championship.What is Nike's slogan? "Give full play to potential", Liu Xiang's success is indeed a manifestation of our Chinese people's potential.Nike has conveyed the essential sports spirit of the industry to consumers through advertisements. Let’s look at Li Ning again. Li Ning is very interesting. He asked Qu Ying to be the spokesperson for his Li Ning brand sports shoes.But Qu Ying is very famous, she can win product popularity, the only thing she can't win is sportsmanship, because she is not an athlete.What would be the result if you find someone who can promote product popularity but not sportsmanship as an image spokesperson?As a result, Li Ning's sales fell in 1999.As soon as the sales dropped, everyone realized that the problem was sportsmanship. In 1962, American Philip Knight created the Nike brand.Nike started from a pair of sports shoes, conquered the world with nothing, and became the most famous sports goods manufacturer in the world today.Nike's success is inseparable from its precise positioning and in-place publicity.Beginning in the 1970s, Nike began an aggressive marketing campaign to sign top athletes. In 1985, Michael Jordan was hired as a spokesperson with a lot of money. In 1996, he signed the golf king Tiger Woods with the most expensive advertising contract in sports history. It can be said that Nike is one of the most successful celebrity marketing companies. In the field of sporting goods, there are more and more private brands in our country, and there are many successful cases among them. However, compared with some famous international brands such as Nike and Adidas, our enterprises still have a big gap.So, where is the gap between us in advertising?
So in 2003, Li Ning figured it out and found Li Tiedang as a spokesperson.Who is Li Tie?Soccer star Li Tie.What is Li Ning's sportsmanship?Everything is possible.I don't know why, but Li Tie's performance has dropped drastically since he joined the Premier League. I think everything is almost impossible, so Li Ning didn't feel like asking Li Tie to be his spokesperson.Then, in 2006, Li Ning found another NBA star O'Neal, who was nicknamed Shark. O'Neill is incredibly brave, like a shark.He is really good and plays basketball very well, but let me ask you, do you think of Li Ning when you see O'Neill?O'Neill is good, but the bravery and arrogance he displayed is not the image of Li Ning. Li Ning is a gymnast, with a fit body and a very beautiful person. I'm talking about the past, when he was young.But you can see that the image spokesperson he found is not right, so he can't do well. So I thought, if one day I lent you Liu Xiang for an advertisement, how would you use Liu Xiang to boost your sportsmanship?Let's take a guess.There is a bottle of mineral water here, I think it will be like this: Liu Xiang ran, ran, ran, ran to the finish line, waved his hands, "xxx mineral water, my favorite".Believe it or not?As soon as I saw this kind of advertisement, I immediately felt nothing.What's more interesting, Li Ning developed a new type of sports shoes in 2006, called shock-absorbing sports shoes, what is the slogan?It's called "shock absorption, it depends on Li Ning". When China's sporting goods industry just started, many domestic companies were deliberately imitating world-renowned brands such as Nike and Adidas.However, this kind of imitation only stops at copying the marketing method of celebrity endorsement. As a result, various sports brands are scrambling to invite celebrities to be their spokespersons, without considering whether the celebrity's image matches the product positioning.After a large number of celebrity "bombing" endorsements, consumers are increasingly feeling aesthetic fatigue, and they are indifferent to the products endorsed by celebrities. As the leader of the Chinese sports brand, "Li-Ning" has been trying to refine its own brand spirit, from the earliest "the hope of the new generation of China" to "keep the excitement for yourself", and then to "I exercise and I exist", "Sports The beauty of the world is shared", "excellence comes from the true nature", and now "everything is possible", we have been actively exploring, so what guidelines should corporate promotion follow?
This is its advertising slogan, "Shock absorption, still look at Li Ning", what do you think?If we asked Liu Xiang to advertise, it must be Liu Xiang who ran, ran, ran, ran to the finish line, won the championship, waved his hands, took off the shoes from his feet and threw them into the sky, "Shock absorption, let's look at Li Ning." .Immediately I felt nothing.This is the advertisement made by our Chinese companies, which is why foreign brand companies basically do not seek Chinese advertising companies after entering China. I would like to advise readers who are in the advertising industry that advertising is a very competitive industry, and it is very difficult to survive in this industry.But as long as you listen to my point of view, you will send it.why?Because when everyone is promoting product awareness and corporate awareness through advertisements, you will discover through this book that the purpose of advertising is to promote the spirit of the product.As long as you can think of this step, the entire advertising industry is an unexplored virgin land for you.So for an entrepreneur, what is the most important thing if he can make a breakthrough?A breakthrough in thinking is the first step, rather than relying on funds, technology, or talents. Then please take a look at the story of the movement I told.How far have Adidas and Nike advertised?When you mention Nike, you think of basketball and Michael Jordan; when you mention Adidas, you think of Beckham and football.Then when you mention Li Ning, you will think of Li Tie, and you will feel nothing.This ad is really interesting, how to use the ad to play the spirit of the product?This requires a lot of work. Some people say that today's era is an era of communication, and as a medium of communication, advertising is closely related to the lives of modern people.Professor Lang believes that a good advertisement is not to promote the popularity of the company or the product, but the spirit of promoting the product. But how to find the spirit of the product?
I was thinking, what mistake did Liu Xiang make this time?He was too young and too successful. On such an important occasion, he chose to retreat.If I were his agent, I would definitely make him a hit.What should he do this time?Many media said that we have to understand him, he has difficulties.I tell you, I don't understand him.Why don't you understand him?You enjoy flowers and applause, but you have to bear the pressure.There is also such a good thing, you take the money, and let us bear the pressure, what is this?You are an athlete, you should bear the pressure, you should take the first place.It is nonsense to say that the Chinese people put too much pressure on him.How much does he spend on advertising a year?Dozens of times more than me, I want to run, but my legs are short. If I were Liu Xiang's coach, what would I tell him?I tentatively believe that Liu Xiang injured his foot, what should he do?He should get up and run hard, run for more than a dozen steps, then suddenly fall down, and then get up painfully, and climb to the finish line step by step. possible" performance.In this case, everyone will look for him to advertise. What is Nike's advertising language? "Fulfill your potential".What is the slogan of Adidas?It copied Li Ning's "Anything is possible".The moment Liu Xiang succeeds is the expression of Chinese people's "full potential" and "everything is possible". This is what you, Liu Xiang, should do.But you not only let us down, let me go to Beijing for nothing, but what is even more hateful is that you have brought out all the weaknesses of us Chinese, such as fleeing, irresponsibility, and shirking responsibility.Everything is possible, and there is nothing to play, what to do instead, and in the end, the media is mobilized to ask us to understand, understand what?After Liu Xiang stopped running the 100 meters, we found that there was no successor. At this time, the inferiority complex of our Chinese came out again. If you can’t win the championship in track and field, you will never be a big sports country. This world is so cruel. Nike and Adidas, the two sports brands, surpassed domestic brands by grasping the essence of the industry, but during the recession, these two brands also encountered trouble. Nike's orders for sports shoes and apparel products from June to November 2008 were only US$7.8 billion, a year-on-year decrease of 12%.In the first quarter of 2009, Adidas' net profit plummeted by 97%, and its sales fell by 2%.Adidas' sales fell by 6% due to weak market demand in China and Japan.In order to reverse the decline, Adidas plans to withdraw its regional headquarters in Asia and Europe, close some stores, and save 130 million US dollars a year. Compared with Nike and Adidas, the situation of many second-tier domestic sports brands such as Fujian Jinjiang, Shishi, Quanzhou, and Xiamen is even worse, and they were pushed into the "ice and fire" by the Beijing Olympics.These brands originally hoped to use Olympic marketing to enhance brand awareness and sales.However, due to the overly optimistic estimate of the post-Olympic market, blindly increasing production, coupled with the impact of the economic depression, many sports brand apparel companies were troubled by inventory in the first half of 2009. Of course, Nike and Adidas are no exception. Inventory problem. As the national distributor of Nike, Adidas and these second-tier brands, the operating profit margin of Belle's international sports brand business in 2008 fell by 1.3% year-on-year, and the operating profit decreased by nearly 100 million yuan compared with 2007. In the first half of 2009, the revenue of Nike and Adidas represented by Belle increased by 2.5%, while the sales of second-tier brands represented by Belle fell sharply by 11.3%. Belle integrated these second-tier sports brand businesses and closed loss-making and perennially unprofitable stores. In the first half of 2009, Belle closed 346 stores, of which 304 were second-tier brands and 42 were first-tier brands. Judging from this simple data, the situation of second-tier brands is obviously worse than that of first-tier brands.This reason is very simple, and it can still be explained by the price/performance ratio 2. Because the first-tier brands have the advantages of the nature of the industry, they have a large price space. Just like the example in Chapter 7, as long as the first-tier brands lower their prices, their cost performance will exceed the second-tier brands, so that the first-tier brand Nike and Nike Adidas is in better shape than second-tier brands.Moreover, in order to restore the decline, Nike and Adidas made a decision to reduce production in March 2009 to reduce inventory, and adopted a radical marketing strategy in the second quarter of 2009 to effectively improve cost performance through price cuts2, thus overwhelming second-tier brands and increasing sales This is the advantage of grasping the nature of the industry during the economic depression.
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