"Low Consumption": Low Consumption And Better Consumption Marketing Strategy

First, the interpretation of low consumption.

Under the inflation economic background, it is bound to cause consumers' "low consumption" behavior. This is almost the conclusion of economists. But nowadays, social culture, consumer structure, consumption value orientation and the rise of new Internet channels have undergone tremendous changes. The behavior and reasons of "low consumption" behavior have become very different from before. After in-depth market observation and research, we found that at least three points deserve enterprise attention.

1, "lower consumption", the level of consumption is clearer.

Low end people, who want to get the maximum use value with the least amount of money, have been suppressed by inflation in the past due to impulse. They are mainly driven by low consumption. The high-end people, who pursue high quality life, have little influence on inflation. They are mainly motivated by high consumption. The middle class group and inflation become more rational, but contrary to the traditional assumptions, they are no longer interested in the middle market. They choose cheap beef and supermarket brand cleaner to ease the economic pressure caused by inflation, but they still choose high end real estate. Luxury clothing And elite education to achieve identity value and wealth appreciation, and lower consumption and better consumption.

2, the two behaviors of lower consumption and better consumption may happen on the same consumer.

This phenomenon is mainly concentrated in the middle class group, and this group is the main force in today's consumer market, and it is also the object of every enterprise's efforts. When consuming low, consumers have a "cheap" mentality, hoping to become an expert type consumer in their familiar products, understand the attributes and value of products, and obtain goods at the lowest cost; while in the process of optimal consumption, consumers value the image value, cultural value, taste value of the product. Consumer attribute value He hopes to achieve self value by becoming the owner and user of goods, and what he buys is "satisfaction".

3, there are differences between different types of products.

Generally speaking, consumers will pay more attention to brands related to products related to social interaction, requiring them to have value associations that show the characteristics of consumers' status, hierarchy, taste and circles. Consumers mainly engage in "preferential consumption", while consumers related to self use only pay attention to their excellent "use value", and mainly focus on "low consumption".

Through the above three points, we can conclude that "lower consumption" is only one side of the coin. Enterprises can not ignore the other side of the coin because of the temporary upward trend. For enterprises, we should thoroughly analyze the characteristics of target consumers, and determine the appropriate marketing strategy combined with the characteristics of their own products. Whether they are going down the road or taking the best route, or across the two poles, they may succeed. The key is to see whether they are suitable for the current situation of enterprises. Because in the consumer market, there is no absolute red sea or absolute blue ocean. Only when enterprises look at all kinds of consumption phenomena comprehensively can they enter the Red Sea and sail the blue ocean. It is important to lower the market in today's low consumption caused by inflation. The corresponding market of excellence also contains unlimited opportunities. Therefore, enterprises should have a low strategy and should have better consideration.

Like the US Marriott, its Ritz Carlton brand has developed into the world's most valuable luxury hotel brand in the high-end market. Its success encouraged the expansion of Marriott in the luxury hotel market, while the low-end brands such as Wan Yi, Wenshan and Fairfield chain promoted the largest development of the number and income of Marriott. Only from 1994 to 2004, the number of economic rooms in Marriott increased by 11 percentage points. With the overall downturn in the hospitality industry, Marriott has been able to make a big profit in the low market and gain a reputation in the excellent market. On the one hand, it has adapted to the trend of "lower consumption", and the other side can not get away from its keen grasp of the "better consumption" machine implied by the downtrend.

Since it is equally important to be low and superior, it is necessary for us to have an in-depth understanding of these two seemingly opposite routes. At the marketing level, what are the differences between the low and the best? What differences and commonalities should the enterprises adopt in the two different routes? What are the differences and similarities between the products, channels and promotion strategies adopted by the enterprises?

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Two, the marketing strategy combination under the low line.

The choice of a lower line means that the enterprise has chosen a broad and tragic low-end market as its main battleground. In the low-end market, whoever has the highest value of use will become the ultimate winner. This requires enterprises to make every effort to reduce prices and improve quality. To win, we must be better and better. We must never stop pursuing lower prices and higher quality, because consumers are always pursuing more use value. There is no end to price reduction and quality improvement. The one-off cost reduction is only a trap. consumer goods

The characteristics of the world are endless cost reduction, business innovation, supply chain improvement and raw material substitution. Always pay attention to the price of the cheapest substitutes and be careful to be replaced by it. The main consumer groups in the low end market are low-end people and the middle class. Among them, the lower end people are limited to their own purchasing power, and the demand for almost all consumer goods is concentrated on the "cost performance" point, while the middle class pays attention to the products related to self use only.

Excellent use value and more emphasis on brand for social related products. Therefore, according to the different attributes of products, even the same choice tends to be low, the consumers of different enterprises are different. This explains why people who buy cheap detergent are far more than those who buy low-end digital products.

1, product strategy under the low line.

For enterprises that are on the low track, we should pay more attention to the practicability of products and improve their performance to price ratio when improving existing products and developing new products. On the low market, the key to product success is "foundation, low price and reliability". Light is not cheap, and light is not good. The two must be both.

"Foundation" means that products have basic functions, such as mobile phones. Its basic function is to receive calls, send text messages, and other functions (such as alarm, MP3, etc.) are all additional functions. For low-end products, consumers only pay attention to their basic functions. For other functions, consumers do not care, or may even feel redundant. In view of this consumption psychology, enterprises can have a definite purpose in developing products, weaken or cancel the additional functions of products, highlight and emphasize the basic functions of products, while making more precise positioning of products, they can also effectively reduce production and R & D costs. Now the popular mobile phones in the market are low priced. Design Simple and prominent functions (big buttons, loud bell and quick dial) are welcomed by friends of the elderly.

The "low price" of a product is that the money paid by the consumer when purchasing the product is lower than that of other similar products. This seems most easy to satisfy, but in fact, it is the highest requirement of the three points mentioned above. The driving force of an enterprise is to pursue profits and return on investment. After all, the practice of losing money and making money can not last for a long time. Therefore, "low price" means a reduction in cost, which includes procurement cost, production cost, R & D cost and sales cost. Only by ensuring and stabilizing their dominant position in the entire marketing value chain can enterprises effectively reduce the cost of procurement and sales, which requires enterprises to strive for vertical integration. Upstream, they can effectively integrate raw material resources through signing long-term procurement contracts and purchasing upstream suppliers, and so on, to boost the confidence of the channel providers and ensure the reasonable profit distribution by establishing joint operation department or establishing joint venture companies, so as to achieve the integration of manufacturers' value. In terms of reducing production costs, "simple packaging" is an effective means. For example, some brands of hand sanitizers, 300ml bottles and 300ml bags are sold together, and the price is much cheaper than that of two bottles of 300ml bottle washing liquid, which is very popular among consumers.

There is no need to say more about "reliability". Enterprises must not reduce the quality of products in order to lower the price of products. This is a very short-sighted behavior. Only by "years of consistent quality" can we establish a good image in the minds of consumers in order to attract more customers.

2, the channel strategy under the low route.

The strategy of "lower" enterprises in the channel can be summed up in six words: deepening, innovation and giving up. For the channels that fit the strategic positioning of enterprises, we should deepen the relationship with them, be bold in innovating new channels, and give up the channels for conflict with strategic positioning. Taking the liquor industry as an example, the main channels of liquor industry in China include: Catering channels, business super channels, traditional circulation channels, smoking hotel channels, night club channels, direct selling channels, group buying channels and network sales channels.

Among them, the traditional circulation channels are the most important channels to lower the category of alcoholic products. In order to deepen the relationship with the traditional distribution channels, enterprises must have a clear division of functions with the distributors: the manufacturer is responsible for planning the market layout, formulating corresponding sales policies, putting in relevant resources, planning and organizing thematic promotion, maintaining regional market order, cracking down on disorderly prices, supporting distributors to launch comprehensive services of customers, and dealers will become the main body of the regional market, undertake the specific operation of logistics and settlement, and be responsible for the construction and maintenance of terminal network.

Promotion with theme markets, organization and implementation of regional promotions, and active organization of user service activities. Only in this way can we turn from business to market, from extensive market operation to intensive cultivation and development of market, and from a single Hunter amateur to a professional team.

The net sales channel is a new channel for liquor products. This channel can not only effectively increase product sales in the short term, but also serve as a window for event marketing and expansion of product influence. Like "Hebei Mitsui small knife liquor" relying on network channels in Beijing area for white-collar workers to carry out drinking activities has achieved good results. Such channels, enterprises can not belittle, to fully tap its potential value, perhaps the starting point for success is here.

For low-grade liquor products, nightclubs, smoking hotels and other channels are obviously not suitable for them, but in the Shang Chao channel, because of the high cost, it has made the meager profits already stretched. At this time, enterprises should boldly choose to give up and concentrate on the channels that can adapt themselves to their own survival and their own specialties.

3, the promotion strategy under the low line.

The low sales promotion should focus on making consumers feel "cheap" and get more use value. However, how to control the promotion cost is a very thorny problem to lower the products. Moreover, with the maturing of the consumer market, it is difficult for consumers to get satisfied with the simple purchase and gift. Enterprises should learn from the experience and cases of domestic and foreign industries, and give full play to their creativity to design sales promotion plans.

Generally speaking, a good sales promotion plan should be both "cost controllable" and "creative". Last year, when LaFang's daily chemical index was at a high level, some promotional products were launched with a "high volume and no price" promotion policy. Good market feedback was obtained for some products. Recently, a "fast food chain" sponsored by Beijing's "fast food chain" -- "harmony Valley" sponsored by the company is worth praising: consumers can buy a designated package (the price is higher than that of a regular set), and a scrape card can be obtained. The prize is as large as iPad and ipodtouch, and a small coke and coupons can fully mobilize the enthusiasm of consumers and enhance the sense of participation of customers by scraping the prize. In terms of "cost control", bundling, "

4, the problems that may be faced with the lower line.

The biggest problem faced by "low" enterprises is the blurring of brands and the entry of competitors.

If the enterprise is located in the middle market before, then it will inevitably lead to a vague brand in a certain period of time. If the processing is not timely, it is likely to cause irreparable damage to the brand. The author suggests that in order to ensure that the existing mid-range market is not going to be a long way to go, we should try our best to use the new brand to operate the new market.

"Going down" means moving the center of gravity out of the middle market. At this point, competitors are likely to take advantage of it. In this regard, our proposal is to gradually escape from the mid-range market, not overnight, after all, the mid-range market will continue to exist for a long time. If the enterprise already has a considerable foundation in the market itself, it will also provide a strong guarantee for us to enter the low end for a long time.

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Three, marketing strategy combination under the route of excellence.

In the same direction, enterprises lose profits in order to occupy the market. The preferred route can bring more profits to enterprises. It has been reported that although the phenomenon of "lower consumption" will last for a long time in China, enterprises are worried about price war, profit margins and losses. The phenomenon of "better consumption" has broken through in China. Enterprises should formulate corresponding strategies to meet the needs of these consumers.

Today, as the trend of "lower consumption" is becoming more and more obvious, enterprises that choose the best route can be said to be in the opposite direction. However, as mentioned above, the inflationary pressure will not prevent the high-end market from growing slowly and steadily. When most competitors focus on the low-end market, it is a good time for enterprises to occupy the high-end market and establish high-end brand image. Just a few years ago, as the voice of domestic price restraining prices rose rapidly, Wuliangye chose to raise the price substantially. There is no doubt that Wuliangye is aiming at a higher end. The price increase is to ensure and enhance the high-end image of the brand.

The target market for high-end market is high-end people and some middle class. For high-end people, they pursue high quality, luxury and diversity. The best way to maintain these customers is to maintain and enhance their brand image. For the middle class, buying high-end products is for social recognition and self satisfaction. Although they tend to lower their consumption when buying most of the consumer goods, they still prefer to choose products for certain specific categories.

1, product strategy under the route of excellence.

On the market of excellence, the magic weapon for success is "visible high quality, striking uniqueness". That is to say, the products in the preferred market must be able to provide different levels of benefits: technology, function and emotion. Only the intangible value of the brand plus unique differentiation can sell high prices. The development of superior products should follow the rule of "waste" and "beauty".

The meaning of "waste" is "misuse or incontinence of property, manpower and time". It is a derogatory term. For superior products, it is manifested as "quantitative waste" that is controlled for the brand idea, that is, to create high-end brands, spare no effort and consume huge amounts, which brings the impression of "many talents", such as the bottle designed by the pottery master, perfume bottles designed and made of top grade glass, and specially designed wooden or leather box watches. All products must be designed and prepared before the products meet with customers. If the seemingly unnecessary waste is abolished, the high-end atmosphere of the brand will be reduced.

"Beauty" means pursuing perfection in every detail that can reach the brand. Complex elements, beautiful packaging, any element must be carefully considered, detail design not only exquisite, but also emphasize high quality gorgeous. The sophistication of a high-end perfume product is amazing. It takes 18-24 months from concept to final listing. The glass bottle must be specially designed and manufactured quantitatively. The corrugated cardboard supporting inside the box is not allowed to be white, and must be consistent with the color of the outer package. All the details must be perfect and perfect.

2, channel strategy under the route of optimization.

The channel strategy of "superior" enterprises should be focused on "deepening, innovation and abandonment" as well as "low" enterprises. The only thing that needs to be specified is that the enterprises' control over the channel is particularly important for the "better" enterprises.

This requires manufacturers to effectively guide channel members through various aspects such as vision, brand, service and interests, and gradually bring channel members into their own management system. Specifically, the management and maintenance work of channel members includes: strengthening communication, deepening the relationship between guests and customers, enhancing the loyalty of channel members, actively co operating, guiding them to participate in the operation of the market, understanding the operation status, regular feedback, and solving difficulties for channel members; establishing perfect files, guiding the management and operation of channel members at the same time of daily maintenance, ensuring effective incentives, providing comprehensive and comprehensive support, maintaining market order, preventing channel conflicts, coordinating channel relationships, and handling unexpected emergencies in time.

3, promotion strategy under the route of excellence.

Unlike low products, the promotion of superior products should not be too frequent and should be carefully designed. The key is to "satisfy consumers" and never give people a sense of price reduction in disguise. Specifically, every promotional activity of the preferred product should have a corresponding theme. The theme should be innovative, unique and contemporary; every aspect of the activity should pay more attention to the interaction with the consumers, so that consumers can get a better experience; the promotional gifts should also have the quality and style that match their products, such as high-end perfume, which can consider the choice of new small bottle as a gift, on the one hand, it does not conflict with its own brand, on the other hand, it can also effectively promote new products. At the same time, enterprises can also consider cross border promotion with other high-end brands. Through joint promotion of cross industry high-end brands, brand communication can be carried out well, and consumers' resources can be effectively shared with the co authors.

In fact, in the final analysis, the success or failure of any promotional activities will ultimately depend on the understanding of the current situation of the industry and the depth of the consumer's inner needs.

4, problems that may arise in the route of excellence.

The main problems faced by enterprises in the path of "becoming better" are channel conflict and consumers' ignorance.

The importance of developing new channels is mentioned in the foregoing, but the development of new channels will inevitably lead to conflicts between channels, and this conflict will be more intense in the preferred products. Take the network channel, in order to make the product more competitive, the network channel often requires that the products sold by the enterprise are lower than the normal price of the market, coupled with the shift of the logistics cost, the impact on the traditional channels can be imagined. At present, there is no perfect solution to resolve this conflict. A more feasible method is to put special customized varieties and specifications into the network channel.

A typical example of "consumers do not recognize" is the abuse caused by this Wuliangye price increase. Actually, it is not that Wuliangye's strategy of raising prices is wrong, but that Wuliangye has not given a satisfactory answer to the price raising behavior. We can give up consumers, but we can not abandon the brand! Under such circumstances, the business is to maximize the recognition of the target consumer groups. If Wuliangye declares that the main target group of its products is a high-end crowd, and at the same time doing a good job in publicizing and publicizing the media, then the price increase is a perfectly justified "brand value enhancement" behavior.

In short, the phenomenon of "low consumption" caused by inflation today means both challenges and opportunities for enterprises. In this trend, whether they enter the broad low end or rush to the higher end, they will be able to grasp the opportunity well and get rich returns as long as they meet their objective conditions.