Jian Libao's story: "Household" has never been reliable

       We say that Coca-Cola's household name is just one result of its continued advertising, but "household" has never been reliable - let's look at a once-household example, Ken Libao,Called "Oriental Magic Water" at the time, Jianlibao is a miracle of the local soft drink market.

    Its excellent advertising let it sit on the domestic beverage market's first throne, sales in 1997 reached a staggering 5.5 billion, is Pepsi and Coca-Cola sales in China combined, when the orange cans of Jianlibao is a lot of post-80s childhood collective memories, with "household name" to describe nothing, but now for the 95th, 00th, many people do not know what Jianlibao.

The reasons for Jianlibao's sinking are complex, and certainly not due to the fact that we no longer run ads, but it objectively provides us with an excellent case for answering this questionOnce a household name, the result of years of non-advertising is that consumers forget it.

In fact, Jianlibao did not close down, is still on sale, now Coca-Cola, Pepsi, Jianlibao three drinks at the same time on the shelf, how many consumers will choose Jianlibao? For many young consumers,The three words of Jianlibao can't make them associate any more.

Jianlibao is a typical phenomenon that we explain brand advertising, so what is the essence of this phenomenon? Let's go down:

Forgetting curve: People are always forgetful

The forgotten curve of German psychologist Ebinhos tells people that the rate at which people forget a thing is not linear, but begins to forget quickly, and the rate of subsequent forgetting slows down.The theoretical guiding principle of this finding is that any memory must be repeatedly enhanced before it is forgottenRepeat, and advertisers understand this - to deepen your impressions over and over again before people forget, so that you can build a strong image, or others will forget you.

Whether it's the era of television advertising orIn today's Internet advertising era, brands are very concerned about advertising when one indicator is the frequency of coverageUsually an ad Campaign plays on TV for four weeks and then stops for two weeks, and covers the same crowd at least three times when it's on the Internet, with a memory curve behind it to make you feel more impressive before you forget.

According to Nielsen, an average American has access to more than 120 advertising brands, and how to stand out from the crowd is a direct and effective tool.

Even if the impression has been reinforced over and over again, if not strengthened over time, it will slowly disappear in the minds of consumersLet's cite another case: Li Ning, a former gymnastics prince, was an all Chinese idol in the 1980s, not too much to describe as a household name.

But more than 20 years later, how many people still remember Li Ning as a living gold medalist? You go.Ask the younger generation, and even many of them only know that Li Ning is a sports brand and do not know the former national idol and world champion.If Li Ning wants to, how many sports brands are willing to talk to Li Ning?So Li Ning has long recognized the forgotten curve of people, early to make their own name as a sports brand.

By the same to no means, without Yao Ming, the heat of the past two years has objectively inevitably declined, more than 60% of NBA stars in retirement within five years of bankruptcy is related to their lifestyle and financial thinking, but from one side of the exposure brought about by the decline in business value is how great.

The mechanism of the role of advertising: inform, persuade, remind, strengthen

    For any one product, its advertising audience can be divided into high-frequency consumers, low-frequency consumption, non-consumers, advertising on these three types of human action mechanism is not the same, according to the classic advertising theory, the logic of advertising function comes from four aspects - inform, persuade, remind, strengthen.

   1) For non-consumers, the role of advertising is to cultivate visibility, that is, advertising role in the "inform and remind"——

"We've come up with a new taste!" "We've got a new spokesman," "We've got a new packaging," "We've got a new marketing theme"... All of this needs to be communicated to consumers through advertising.

I didn't drink Coke until 2014, and for Coca-Cola, I was a non-consumer, but one day in the summer of 2014, at noon, I swam out of Haidian Swimming Pool, thirsty and hungry, next to the newsstand Coca-Cola lyrics bottle in the promotion, I picked out the bottle printed with the "original dream, absolutely will achieve" lyrics, drink extreme thirst, very comfortable, and then I became Coca-Cola's mild consumer.

Non-consumers like me who seem to be "accidentally" transformed are a necessity in the eyes of Coca-Cola advertisersEvery day, thousands of non-consumers are transformed into low- and even high-frequency consumers, and this "accidental" transformation is actually the inevitable result of a long-term advertising infection.

In the summer of 2013, Coca-Cola's nickname bottle ads increased sales by 20% year-on-year.Know that even in the Coke consumer country of the United States, 45% of households do not consume Coca-ColaAnd as long as advertising can drop that percentage by one percentage point, it's also extremely successful for Coca-Cola.

2) For mild consumers, the role of advertising is to cultivate reputation, that is, the role of advertising in the "persuasion."

One of the characteristics of mild consumers is that they tend not to have a stable pursuit of a particular brand: they may drink Pepsi or Coca-Cola; they may eat McDonald's, they may eat KFC; they may wear Nike, they may wear Adi.

But they're very important,Because consumers have a large number of choices, so mild consumers, although the long tail of brand consumption, but their share of brand sales is actually very highAs if no one eats McDonald's every day, people always eat McDonald's once in a while, but it's those consumers who eat once in a while that support McDonald's popularity, and the role of McDonald's advertising is to make sure that when you think about eating a family, it's within your options.

When I graduated, I met a young editor after 90, every time I ate with her he chose Coke must choose Pepsi, the instant waiter gave her Coca-Cola, she will also be specifically replaced with Pepsi, I asked her why? She said:Because Pepsi invited Wu Mo worry as a spokesman, I like her, I also know that there are many people do not like my family Mo worry, but Pepsi still invited her, I became Pepsi powder!"Consumers are like this, they have a lot of reasons to like a brand, so advertising companies have to think different advertising strategies to influence these diverse consumers.

3) For heavy consumers, the role of advertising is to cultivate loyalty, that is, the role of advertising in the "strengthening"

That's when the role of advertising becomes to reinforce the pride of loyal consumersFor example, you are already a big consumer of Pepsi, the refrigerator is full of Pepsi of different sizes, every time a friend party you must drink Pepsi, this time if Pepsi sponsored the World Cup, or asked Leonardo to do endorsements, or released a viral video of the word-of-mouth explosion, you must think: Well, this is the Pepsi I love!

My cousin bought a Xiaomi mobile phone in 2015, when Xiaomi sponsored the Spring Festival Evening ad, and my cousin was very excited to see Xiaomi's ad on Chinese New Year's Eve nightThe excitement stems from his thought that his choices are finally being accepted by more people and going mainstream, which is actually the pride that advertising brings to loyal customers.

Making loyal consumers proud is also one of the important missions of advertising.

Competition and scale: If you don't advertise others will do it

Coca-Cola's market is a fast-food market.The fast-food market means a higher frequency of purchases;At the same time and shampoos, cosmetics and other products that emphasize the functional level, Coca-Cola and Pepsi in the product function, taste level of the degree of differentiation is basically small.

When Americans experimented in 1970, less than 10 percent of them could drink the difference between two kinds of cola.That is, brand is an important way to maintain the bridge of purchase, and advertising is one of the most important ways to shape the brand(One of the reasons is that there are exceptions, such as the old mother is to use its unique taste to shape the brand, underwater fishing is to use its superior service to shape the brand, they do not advertise)

The beverage market is extremely competitive, and it's important for Coca-Cola to keep its size with advertising, and a simple rule for a company as big as Coca-Cola is that it'sIn the short term (i.e., when fixed costs remain the same), scale determines profit marginsBecause marginal costs are definitely falling in the short term, let's take a simplified model

If Coca-Cola's fixed input cost is 100 yuan (including plant, research and development and other costs that do not change with sales), the annual production of 200 bottles of Cola, each bottle of Coke variable cost is 1.5 pieces (i.e., the material cost of a piece of drink), then its total The cost is 100 plus 200 x 1.5 x 400, the average cost is 400/200 x 2 yuan, if each bottle sells for 2.5 yuan, then it can earn 0.5. At this time the advertising stopped, sales from 200 bottles to 100 bottles, fixed costs remain unchanged, the total cost to 100 x 100 x 1.5 x 250, and the average cost becomes 250/100 x 2.5, if you sell 2.5, then do not make money, profit margin becomes 0, this is the meaning of the short-term scale.

Of course, the reality is 1,000 times more complex than this model,But in any case, for an industry, size and share mean bargaining powerWhen you are small and have a small share, you have very little bargaining power for upstream suppliers and downstream distributors, in which case it can be very difficult to make a profit.

If you don't advertise, someone else will do it, someone else's size will crush you, and unless you change your pattern to make a profit on a small scale, maintaining scale through advertising is an inevitable choice......(Unfinished, pay attention to the media borderless WeChat public number and view historical news, more original hands-on dry goods wonderful sharing!) Welcome to forward, please indicate the author and source, more sincerely invite you to visit Peng Xiaodong tutor classroom to listen to Peng Xiaodong tutor live wonderful speech! WeChat and mobile phone number: 13076066155)