When Is The Price War Suitable For Outdoor Industry?

Why do you not follow the price war in outdoor activities?

The essence of price war is that when a market of a commodity is over saturated, the new business will be stopped by low price strategy and a new balance can be achieved by the withdrawal of the incompetent merchants.

However, the threshold of outdoor activities is too low, and the products are not standardized.

Therefore, it is very difficult to continue to compete through low prices.

However, there are still many clubs going forward to kill the price. Why?

Why price war?

1. activity homogenization

The industry has plagiarized routes, too many homogenization routes, no products of "new", "odd" and "special" products, nor does it work hard on the service and quality of products.

Finally, we fight the price war and form a vicious competition.

2. new people continue to enter

The second reason is that a large number of tour managers are doing their own work, so as to accumulate seed customers and reduce sales promotion.

These are the two main reasons for clubs to make price cuts or price wars.

But the result is contrary to the past. We can look at the regions.

Those who take the initiative to fight price war are basically small clubs, unable to recruit people, so they have to use the price reduction method to attract customers. Is there any result?

The effect must be a little bit, but this effect is very difficult to sustain, for the following reasons:

1, outdoor activities participants have high viscosity, so it is difficult for ordinary users to establish trust after outdoor clubs.

2, the real low price customer loyalty is very low, whose price is low with whose activities.

3, the club does not have enough profits, so it is difficult to improve the quality of service and protection.

4, lowering prices is actually telling customers that your service and quality are not high, instead of giving competition to mobile phones.

Basically, there are still some customers' growth in the early stage of price reduction, but the fewer customers they have, the more they can only survive by carpool.

Therefore, price war is a big pit, never jump inside.

Large clubs can guarantee the use of cars through a year's activity. The cost of housing, manpower and so on is lower than that of small clubs. Therefore, small and medium-sized clubs are not big on the gross profit of single line, and do not blindly fight price wars.

The most correct way is to constantly Polish yourself.

To improve their service, we should make our club brand effective and establish a good operation system.

In this way, our products will not only have no price war, but also have a larger premium space.

Another thing is not to lock the target in the stock market, to look at the incremental market more, and to use the money that can not be reduced to invest in marketing and operation, not only can expand the market share, but also guarantee the price and quality of the activity.

The outdoor activity market has an annual growth rate of about 30%. If your club's annual revenue does not grow by 30%, it can only be said that it will soon be eliminated by the industry.

But it is not a price war. When will we fight?

1. when creating explosive products

The price war at this time is not for competitors, but for customers.

The main purpose of the so-called explosive products is not to profit, but to drain or shape the brand.

Instead, we need to provide better service and value, and then promote it with low price. It is very easy to create a burst product quickly.

Before the summer rush, the boy scout outdoor network made a 79 yuan water trek ditch hiking activity before the summer vacation. It directly pulled supplies to the midday camp with its supply trucks and hiked all kinds of activities and fishing activities on foot. After the end, all parents felt very worthwhile. After a large amount of promotion, they accumulated three WeChat group customers in one month in June.

2. seize core lines

Each area has a core outdoor route. If these routes are used to bring brand value to the club, it is worth killing.

The temple is called Shangri-La in Qinling Mountains. Basically, the outdoor clubs in Shaanxi do 1-2 phases every year.

Because of the 2 day and 2 night route, there are no hotel guesthouses in the middle, and only a few families are not able to receive the adobe room. They must carry tent sleeping bags. Therefore, the threshold is higher, which is difficult for some new people.

The activity fee is around 300 yuan per person.

In 2011, ice rock purchased a number of camping equipment, hired local tractors to pport materials to a farm in the big temple.

In this way, players can travel light, vehicles can pull more players, the time is shortened to 2 days and 1 nights, and the cost of vehicles is greatly reduced.

At the same time, we advertised: "Chou Chou Tai Temple, one person is also a line", and set the price in the 180 yuan, so that all clubs can not follow.

In the next two years, ice rock was almost able to win the fame of the great temple, except for the weekly distribution in winter, which brought a lot of new customers to the ice rock.

For a new person who has just entered the industry, he wants to cut into the market through price war. In the outdoor activity industry, this heavy experience and heavy service industry is not feasible. Consumers take part in activities to pursue three things -- quality, service and experience.