Enlightenment of successful marketing strategy of melatonin on skin-packaging industry
If you want to evaluate China's "business talent", Shi Yuzhu is absolutely second to none. Shi Yuzhu was the first programmer in China. In the 1990s, he developed the Hanka operating system and made hundreds of millions of dollars by advertising in newspapers and magazines. Everyone thinks his entrepreneurial career is over.
Then he made a comeback again, starting with $ 500,000, using his genius to market "brain platinum", and then creating an empire with tens of billions of dollars in online games, banking and other fields.
If Ma Huateng is good at products and Ma Yun is good at organization and strategy, then Shi Yuzhu is definitely a marketing genius. This man of scientific and engineering origin has a marketing philosophy that makes the market amazing. Whether or not his product is controversial, it is still worth learning, at least in terms of user needs and marketing methods, it is worthy of reference and learning from our skin-packing industry.
The above are his 15 laws of marketing. Materialism is taken from Shi Yuzhu's book "Shi Yuzhu Readme: My Marketing Experience."
1. The countryside surrounds the city
China's population is pyramidal and steeple in three cities: Beijing, Shanghai, Guangzhou, the largest cities, with the smallest population proportions.
In fact, all products, whether domestic or foreign, are losing money in these three cities as far as national consumer goods are concerned. Sales may be possible, but the cost is too high. In fact, the lower the city, the higher the profit and the lower the cost. To do Beijing, Shanghai, and Guangzhou is to radiate the surrounding areas.
In the countryside, our advertisements are on the wall of the pigpen, on the wall of the factory and on both sides of the railway.
People in our city think the score is too low. But when you go to the countryside, people in the countryside don't feel down, because they live in that environment, not for the urban people to see. So don't take the opinions of the people in the city seriously. You are looking for the people in the countryside. The people in the countryside don't feel down, then you can do it. In addition, the cost of doing this is very low, 50 yuan can be used to paint a wall, can be done once a year, actually very good. This is learned from the other three health products companies.
2.The foundation of marketing must be a good product
As humans evolved from apes to humans, the hardest thing to deceive is the consumer, who is the smartest. Even if this is only a temporary deception, because the business will eventually pay off.
As a company, it provides products that meet consumer needs. But first, the premise is that the product must be a good product. If the product is invalid, it will deceive consumers for up to 3 years, and it will definitely end after three years. A product that wants to make money ultimately depends on repeat customers, and the real money is in these people.
Melatonin, people who do n’t eat will say we lie, etc., but people who really eat really feel very effective, he can sleep well that day, that is the basis of the product. Brain Platinum has been on the market for 13 years and sales are rising every year, depending on the good product, it is effective. For our game, the game is the product of melatonin.
The skin-packaging industry is not exclusive. Skin packaging machines, skin packaging films, sarin films and other skin packaging products must have good quality in order to win any trust and trust from buyers, and to have a long and broad market.
3.A good name can reduce a lot of labor
The name of the product, it is best that people often appear every day when you say, remember those esoteric words.
If a name is not mentioned, it is not easy to remember, and it often takes dozens of times the advertising intensity to let others remember the effect. Although the name is not the only basis to make the product good, but this is the core link. For all good products, most of the names are made.
Choosing a good name can reduce a lot of labor and stress. The name of Melatonin is better, it has disadvantages, and its advantages are also outstanding; the name of Red K is good. People don't remember what is too popular, so naming is very important, we are very successful in naming.
4. There is only one word for marketing: consumer
This is how the melatonin ads are formed.
When I was in the early days of platinum launch, it was not officially sold, but on the basis of experiments, I once brought several people to the park to do field research. Some old people and old people are chatting in the pavilion in the park. Because we already sold platinum in that city, I went to talk to them. We feel that if we want to sell platinum, we cannot be with the elderly, but with his son or daughter. Telling the old lady is useless.
In Chinese tradition, giving gifts to the elderly is filial piety, which is another traditional virtue. So when we come back to discuss this position, we must say to the elderly and wife's son and daughter, don't say too much, just say two words-"gift".
The concept of "gift giving" not only comes from talking with the old woman, but I feel that the entire process cannot be separated from the consumer. I've been emphasizing to insiders that the best planner is the consumer.
5. Product form should serve positioning
We have also passed a lot of trouble with the product formula. The earliest newspaper product capsule + capsule, the capsule is melatonin, one is Lindsay Lintie, two red and white capsules. It was later discovered that such a dosage form problem was not suitable for a gift during the approval process because the product was small and light.
Approved surprise modification, changed to capsule + oral liquid, the purpose is to make the volume slightly larger, as a gift market. The first application was not approved and the second application was not approved until the fourth.
The first product to enter the consumer's eye is what he wants to buy.
The first design is big and the size of the gift is huge.
After the packaging design was completed, it was printed with a color printer and two boxes were made. Then let the planning department take the box to the terminal, go to the pharmacy, put it with other medicines and health products, and then investigate at the door of the product that consumers first see.
What we saw initially wasn't our product, so we changed it, and after several modifications, we found that more than half of the consumers walked into the store and looked at it, and most of them said it was our box. The boxes were only then resolved.
For consumers, the first product to enter the eye is what he wants to buy.
How to put the melatonin in the terminal, it sets a principle, the melatonin should be no less than 3 boxes in the store, no less than 1.5 meters in height, no more than 1.8 meters. The insurance is 1.5 to 1.7 meters high.
7. Product pricing cannot be based on research
As for the price, the earliest capsule + capsule price was 18 yuan, but immediately felt that the price of 18 yuan was too low, and finally decided to 38 yuan, and later changed to oral liquid 38 yuan, because the cost of the oral solution increased.
At that time, we did market research, 38 yuan, 48 yuan, 58 yuan, 68 yuan, 78 yuan, 88 yuan. So many price surveys, the most accepted are 38 yuan and 48 yuan. It seems that pricing cannot look at the survey results one-sidedly, we should analyze the survey results. Finally, we discussed that the price was too low, but felt worthless.
After that, it was set between 68 and 88 yuan. In the end, 88 yuan was denied. The reason is that we count the monthly input if we want to keep it for a long time. Later, if it was 68 yuan, all families except the laid-off workers would accept it.
8. The test market is not fast, and the national market is slow.
To do a project, you must first test sales.
We like to choose the county-level cities in Zhejiang and Jiangsu. It is a county, but its wealth is equal to one city and other cities in the country, and its spending power can be equal to one city. It has an advantage. After all, it is county-level and the advertising cost is very low, so we generally choose those places to try.
Generally, three different types of counties are selected for trials. After collecting data daily, surveys are conducted every day, and they are aggregated after 3 months, and then some judgments are made.
9. Unconditional execution
This plan is complete and cannot be changed.
First of all, everyone said that each market is different, the North and South are very different, but we do n’t care, even if it fails, it is the headquarters, you put this article.
At the time, important planning plans were excerpts from soft papers and books. As long as the book is in place, the price on the soft text, as required, then the fault is also the responsibility of the headquarters.
Starting these four places, the plan is a future national launch plan.
There is no TV in the plan, with emphasis on soft text and book excerpts; there are small things like push-pull and desktop POP, but nothing else. But because the excerpts from this book are good, and because each piece of software is carefully designed, it succeeded as soon as it was opened without fail.
The channels of marketing and promotion are still important to the skin-packing industry. They must be selected properly and covered as comprehensively as possible.
10. Newspapers followed by TV
How is our advertising budget allocated?
In the early days, there were more newspaper ads. Later, when the market opened up for our products, we focused mainly on TV commercials. Big heads are still on TV commercials, followed by terminal promotions, there are also terminal promotions.
We had more newspaper ads in the early days because when a product first hits the market, you have to tell consumers more.
In addition to the concept of "gift", there is also the concept of "improving sleep". Why it improves sleep, if there are side effects, what its mechanism is, and how it regulates the intestines are different from three types and angles. These you need to tell consumers TV can not do, newspapers can do, because you can say a lot of words in the newspaper.
In the import market, we have three years more than advertising on newspapers on television. Later, newspaper advertising gradually weakened, and now, newspaper advertising has basically stopped.
TV ads may not be suitable for the skin-packing industry, and the cost is too high.
11.The best advertising is to sell products
Everything must be pragmatic. From a business perspective, you can sell products that are good ads, you cannot sell products because our business is not a good ad. There are too many advertisements now. Every night, a person watches hundreds of advertisements. 99% of ads cannot be remembered. This is equivalent to playing white chess. The more beautiful the advertisement, the less impression he has.
When we first started, about 15 years ago, an advertisement cost only 50,000 yuan, because even a movie is useless. It was shot with a digital machine, but it worked well. The old man is looking for a 60-year-old drama actor and an old lady. The drama actor's facial expression was very exaggerated, "This year, if you don't receive a gift, you will get platinum." Finally, when he said, "he also received brain platinum," he ran over and grabbed him Brain platinum. He held it in his arms and twisted twice. Just particularly uncomfortable.
At that time, we were piloting in Suzhou. For a while, many people wrote to Suzhou TV Station, hoping that they would stop advertising. Another boss said, how much did he spend on radio advertising for you? After the ad aired, sales increased. Reputation is poor, but sales are really good.
We say you always hate it. We have to be good. Sometimes it is impractical to ask Jiang Kun and Dashan to take an advertisement. Jiang Kun has a good image. The advertisement production cost is very high and it is broadcast many times.
12. Advertising is an investment in consumer brains
Advertising is most afraid of change, because you have changed and accumulated the loss in front. So after we confirmed that the ad read "No gifts this year, and we have platinum in our brains", we spent 13 or 4 years. The language of advertising has remained largely unchanged. But we change it every year. Now you see, this ad works well.
In this advertisement, around the fifth year, in the minds of consumers, when he mentioned "gift", he and "brain platinum" unknowingly began to draw an equal sign.
Advertising is an investment. In the minds of consumers, this is the brain of an investment consumer.
If your advertising language changes, the advertising language will change in one or two years, then the previous accumulation will be lost, and investing in the front is a waste.
This is great, it is worth learning from the skin packaging industry
13.Spend the least money for the most advertising
We place special emphasis on discounting advertising costs. As far as local TV stations are concerned, we can get them to 3/5. This is not the norm in the industry. We went to talk.
We are very strict with the following managers. Our headquarters will study when formulating the delivery strategy: how about this station, its popularity, ratings, and then our headquarters will approve a price. Magazine prices. If you can't talk about it, we won't do it. If you don't, I will deduct your money and the money of the local manager, so he will find a way to talk about it himself. If you can't talk about it all the time, I will end up fine. The first year was a fine, and the next year I would get rid of him. So I'm not afraid that those who talk about advertising go out and get rebates. Sometimes our people have to pay for it themselves and ask the TV station's advertising department to eat and eat.
We pay $ 300 million a year for advertising, compared to the previous advertising company's estimate of $ 3.8 billion. Advertising costs $ 3 billion a year because the team's execution has reached $ 300 million, and our profit margins are coming out immediately.
14. Cash spot to prevent bad debts
At its peak, the giant had 300 million bad debts, of which 200 million were mismanaged and 100 million were accidents.
That's why it sucks, because we sell on credit, so we put it at a low point. Even if I made it small enough, all of my products are in cash and you don't do it, but I'm on the spot. At first it was difficult. Everyone said we couldn't do it, but we clenched our teeth and stuck to it. In the end, we did it, so now all our companies are cash. Of course, we don't owe other people's money, we also give you cash for all the suppliers, we also give you cash for advertising costs. Even if we pay you, we don't owe others, and others don't owe me.
Actually entering a virtuous circle, so you know the behavior of this company, you want to do business with me, that's it, slowly being approved, and doing it. Melatonin has accumulated billions of dollars in sales, but no penny account is in a state of confusion.
This strategy for collecting money is very worthy of reference for the skin packaging film industry. Cash transactions, the formation of a good flow of funds can ensure the company's long-term normal circulation of funds, which is very conducive to the company's development and growth.
15. The rewards and punishments are clear.
For example, we have another problem in sales, called "blushing." In other words, I originally sold this product to you in Zhejiang. These products were printed with "Zhejiang Special Sale". Not only the province, I also subdivide it into each city, for example, I am a special sale in Hangzhou area and Jiaxing area, and a special sale in each city. If he sells his specialty products elsewhere, we call it "blushing", which is a violation of the interests of other branches.
I also rate ten good flyers every year. He sold them elsewhere. I will give him a yellow flag. He is a flyer. The "expert" is quoted. The "expert" was too hasty and I punished him financially. You charge £ 1 million to the next city, and I will give you a sale of £ 1 million, and the headquarters will impose a fine of £ 1 million on you, and that's it. At the end of the punishment, someone appeared, and then I did this: every year, I rated the top ten "good flyers" as "good flyers", erected a yellow flag, and hung the yellow flag in the manager's office The wall behind the table. We also need to check regularly whether to take off and if take off, punish him.
My company has one advantage: everything is on the table. For example, our company reviews advanced every year. As long as the assessment is advanced, I must also comment on backwardness. We evaluate the city's top ten branches and ten branches each year. As long as there are "ten best", there must be "ten differences". The "Top Ten" was on the red flag and gave a speech. He went up and took a yellow flag, gave a speech, led the yellow flag, and paid a small fine, 10 yuan. As long as this culture, everyone is used to it.
The punishment is clear, the skin-packing film skin-packing machine industry is very worth learning from.
The above is taken from "Shi Yuzhu: My Marketing Experience".