Terminal Sales Intelligence

Promotional activities, as a way to effectively increase sales in a short time, are very useful in terminal stores during festivals and festivals. But only a scientific promotion strategy can achieve the desired effect. Market operation Rules, for businesses, are like drinking poison to quench thirst.

To this end, this newspaper invited Fan Yanru, a deputy secretary general of the Chinese general merchandise business association, and Li Weihua, a franchise expert, to make a pricing strategy according to the market situation and to deal with the problems existing in the promotion activities of department stores, and to share with them the wisdom and experience of many years in the retail industry.

Famous franchise expert Li Weihua

There are rules for promotion pricing, and scientific planning is the key.

CFW: retailers often do some things. Promotion Activities such as buying 100 back to 50, full 500 yuan to send gifts, etc., what are the general sales promotion methods? What kinds of products are easier to get larger profits?

Li Weihua: sales promotion is one of the most important means of marketing. There are dozens or even hundreds of different ways according to the different businesses. The most common activities are holiday shopping, discount, discount, membership card points, or some eye catching activities. For example, when Gome opened its business in Tianjin, it had held "the first 1000 sets of 17 inch color TV sets, one for only one yuan", all of which are aimed at increasing customer benefits and increasing the commercial value of commodities to achieve better sales.

Promotional products are classified according to different purposes and different means of promotion. popular goods Or unsalable goods can be used in activities. For example, moon cake is a popular food before the Mid Autumn Festival. It can stimulate consumers to buy through promotion. However, through investigation, the price of moon cakes will drop sharply after the Mid Autumn Festival. At that time, moon cakes will turn from salable goods to unsalable goods. At this time, if businesses must take greater efforts and smarter ways to take measures, commodities will become "waste products".

In terms of profitability, we should not judge the size of profits only by selling goods well or unmarketable. In the stage of selling goods, it is possible to promote sales force and make profits more profitable.

In the stage of slow sales, if the cost of goods itself is low, even if the business seems to have depressed most of the price, it is still very profitable.

CFW: many businessmen often make their sales price according to "experience", and there is no scientific and reasonable pricing plan. Could you tell us how to make a scientific pricing strategy according to different sales purposes?

Li Weihua: there are three basic categories of pricing, the first is the cost oriented pricing method, the second is the demand oriented pricing method, and the third is the competition oriented pricing method.

Among them, cost oriented pricing includes two major categories: one is cost plus, the other is target pricing. The concept of cost plus is explained in detail, for example, the cost of goods is 10 yuan, merchants want to earn 1 yuan, and the final price is 10+1 (yuan). Target pricing is based on total cost and estimated sales volume to determine target rate of return and calculate the price. Specifically, in the promotion pricing, we must first calculate the cost of the product itself and the cost of the gift portion, and then add the profit portion that we hope to get, that is, the price of the final product.

Demand oriented pricing is divided into three types: cognitive value, reverse pricing and demand differential pricing. Cognitive value is more subjective, for example, the specific pricing of a star concert ticket, in addition to the cost of hardware facilities such as venues, equipment and so on, mainly depends on how much you know about him.

Reverse pricing, as the name implies, is based on the consumer's ability to accept the price. The demand differential pricing method, also called differential pricing, refers to pricing according to different time, place and different consumer groups. For example, the park is full price for ordinary adults, for students, military personnel, half price, bus for elderly people over sixty years old is free, students are half price.

The third is competition oriented pricing, which means that businesses are influenced by competitors and passively adjust prices to meet market competition needs.

Here, I want to rectify the fact that we must not make a decision on the price of a promotion without considering the experience, but rather through careful calculation and planning. The calculation is very simple. First of all, it is calculated according to the promotion purpose of the merchants. If the purpose is to capture the market, it may seek small profits but quick turnover. For this purpose, sales discount and gift items will be based on minimum profit. If the purpose of sales promotion is to obtain greater profits, the profit will be put first in this case. However, some businesses are very extreme ways, with a high loss of money sales way, through this activity is to compensate for making money can not only look at the capital gains. Just like the previous case of Gome sales promotion in front of me, 1000 sets of 17 inch color TV sets can not make money for one yuan, but the mass media coverage caused by this activity and the word-of-mouth of consumers, will earn money in the loss of cash flow in brand reputation and reputation.

CFW: how can businesses apply theoretical things to practical operations? What taboos should we pay attention to in the pricing process?

Li Weihua: if sales promotion is done well, it is a very good way to expand sales, occupy the market and win the competition. However, although the correct sales promotion method can well solve the sales crisis, if we fail to make proper use of it, it will have a very big negative impact on brand competitiveness and brand image.

For example, a high-end clothing brand, because last year's winter, there is "thousand years of extremely cold" argument, the brand has produced a lot of thick cotton padded clothes, leather clothing and so on, but when the weather is getting warmer, the "Millennium cold" argument is no longer applicable, the brand manufacturers concluded that products may be overloaded, so during the Spring Festival Promotion, the original price of 1000 yuan clothing price 200 yuan. In this way, the image of high-end brands in consumers' minds will go down. Consumers may no longer dare to buy the brand clothes easily. {page_break}

Fan Yanru, Deputy Secretary General of China Department Store Association

Store sales promotion hidden mystery is the key.

CFW: what is the general purpose of marketing activities aimed at shopping malls?

Fan Yanru: first, let's see what the purpose of the promotion is. For the new shop, the initial profit may not be his top priority. Enlarging the scale is the top priority, and it can be profitable or even zero profit.

There is a great relationship between the promotion and the location of shopping malls, such as Cui Wei building. The annual celebration activities basically buy 100 to 20, equivalent to 20 percent off, and have achieved very obvious results. Sales are increasing every year, and sales volume has reached four hundred million yuan in this year's celebration activities.

Jin Yuan and Lufthansa are relatively high-end and have few promotional activities. Most of them are special activities for VIP customers or gold card customers, but they may organize activities such as Italy commodity week to attract customers to promote sales. So different locations such as Jin Yuan, Yansha, starlight, Seth shopping center, Cui Wei building, Wangfujing department store and so on, the price of the lowest single product will also be different, and the promotion efforts must be different.

Shopping malls usually negotiate a discount limit with the brand before they do a big sales promotion, such as 4~6 discount. The brand will decide the specific discount strength according to its own situation. At this time, there is a game between shopping malls and brands. Sometimes the brand stores that are weaker in strength will become more powerful, forcing brands to take part in activities; otherwise, when dealing with strong brands, the shopping malls are in a weak state.

CFW: is there any sales promotion in some shopping malls? What do you think of it?

Fan Yanru: some shopping malls do exist in the use of promotional activities and consumers playing digital games. For example, buying 100 minus 30 in the Ming Dynasty, but setting the price of commodities to a few hundred dollars, such as 195 yuan and 399 yuan, and so on. After each activity, the shopping center will make a calculation, including the sales volume and sales volume of the event, the proportion of the discount portion, etc., and the actual calculation results may not reach the discount rate of the external publicity.

Some brands may be in a state of weakness relative to the shopping malls, passively participate in the sales promotion activities of the stores, take the new products away during the activities, and only produce the goods sold over the season, stock or broken yards.

In addition, the high price of goods is also a big problem in the promotion of shopping malls. For example, summer is coming soon, and some brands of new summer wear have just begun to discount. Personally, I think this practice is very unreasonable, which means that the price itself is high. It is purely deceiving consumers. What's more, the slogan of "100 full 300" is used to attract consumers. These are against market rules.

There are also some goods on the surface of the original price of 1000 yuan, the current price of 500 yuan, but it may well be far from 500 yuan. These phenomena lead to the final loss of consumers, but the shopping mentality of consumers is beginning to mature. In view of their economic conditions, they choose suitable shopping places suitable for their own consumption level. Some high-income classes will choose Jin Yuan's Yansha or starry sky. Many consumers may go to Xidan shopping malls, Wangfujing Department stores and so on. For those who want to bargain, the tail goods market will become the best choice. I have also seen the tail cargo market. Some goods are worth recommending both in quality and price.

CFW: what is the nature of unreasonable sales promotion? Did the mall take some regulatory measures?

Fan Yanru: in view of the problem of high priced shopping malls, I think the market and brand have responsibilities.

First, the supervision department of shopping malls must strengthen management, especially the Department of investment promotion of shopping malls. Some commodities may be priced at 300 yuan and numbered 1-1, but because of the bad purchase, the brand will return the factory to the factory and change the number to 1-3 before the price is raised. This requires that the shopping mall should not only look at the commodity number, but also look at the commodities in the process of examining and approving commodities.

Second, brands must also find their own reasons. Some brands complain that the market rate is too high and the gray fees are too high. As industry supervisors, we have been trying to stop this phenomenon from shopping malls. However, as brands, in order to deal with the market charges, the price of private cars is high, which leads consumers to pay for the two direct contradictions.

In this respect, Cui Wei building is doing better. Cui Wei has a large-scale celebration every year. It started publicity very early, and locked the price from the computer system a month ago to avoid unauthorized increase in its price. This method can be used as reference for other shopping malls.

Reporter's line of sight

Seeking benefits from management and service

As a kind of marketing method, promotion is just like a shot in the arm, which can stimulate consumers' purchasing power in a short time and generate a lot of consumption activities. But how to make use of science to prepare the potion is the key factor to achieve the intended purpose. In the practice of long term trading, the retail terminal has formed a set of operation systems that conform to the market rules and are universally accepted and accepted. If the sales promotion breaks the balance of the market rules, it can not only increase profits, but also pose a huge threat to the soft power of brand enterprises and so on.

Especially for the retail industry, the use of virtual high prices, false discount, digital game and other unfair means of competition can only damage the business image, and eventually damage the brand reputation. Therefore, if the market wants to win in the competition, it should benefit from management and services. (Zhu Ye)

Voice of micro-blog

@EC brand observation: retailers often engage in promotional activities to buy and sell. For example, to buy 2000 yuan to send gifts, etc., specifically asked why 2000 yuan sent, generally can not answer, because this data is usually the result of the beat. In fact, if the value is not clear, the impact is very big: high, sales promotion is not effective, low, sales can not be maximized.

Xiao Nan: you may as well learn the promotion method of electric business: the combination of limited time discount + direct train + super store promotions can create a "sales treasure" (a single product) in the short term. Through this "sales treasure" to participate in Taobao activities, bring the flow of shops, the main promotion is to attract traffic, after the flow up, do any activities to do well.

@ Wang Shun -Kevin: good sales promotion has three elements: first, to concentrate on a product; two, high quality goods to break through the psychological price, and price strategy to be smart; three, advertising is fresh and effective. Single class promotion does not affect the promotion of other commodities, and joint selling is the key. This is the easiest point for many retailers to overlook. The amount of promotional products is earned and the profits of joint products are made.

@EC brand observation: retailers often engage in promotional activities to buy and sell. For example, to buy 2000 yuan to send gifts, etc., specifically asked why 2000 yuan sent, generally can not answer, because this data is usually the result of the beat. In fact, if the value is not clear, the impact is very big: high, sales promotion is not effective, low, sales can not be maximized.

Xiao Nan: you may as well learn the promotion method of electric business: the combination of limited time discount + direct train + super store promotions can create a "sales treasure" (a single product) in the short term. Through this "sales treasure" to participate in Taobao activities, bring the flow of shops, the main promotion is to attract traffic, after the flow up, do any activities to do well.

@ Wang Shun -Kevin: good sales promotion has three elements: first, to concentrate on a product; two, high quality goods to break through the psychological price, and price strategy to be smart; three, advertising is fresh and effective. Single class promotion does not affect the promotion of other commodities, and joint selling is the key. This is the easiest point for many retailers to overlook. The amount of promotional products is earned and the profits of joint products are made.