This article elaborates on certain viewpoints, derived from conversations with friends including a product department manager at a leading brand and a procurement head at a platform-based trading company.

The success of a company or brand is inseparable from the marketing 4Ps we often study: product, price, channel, and promotion. This logic is like getting into university: brand success is the total score, with product, price, channel, and promotion as four subjects (each out of 100).

For admission to a general undergraduate college, the principle of strengths applies—scoring above 90 in one or two subjects (which is relatively hard) can compensate for a weak subject and still reach the cutoff. For top-tier universities (985/211), the principle of weaknesses applies: everyone is a top performer, and a single weak subject puts you at a disadvantage. In today's increasingly fierce competition, all-round development is the best strategy.

On the Product Side

A product is destined to have certain attributes from its "birth" at the brand manufacturer. For example: conducting market research to understand target consumers' preferences, lifestyles, and purchasing habits to position and design the product; seeking new ideas and solutions to address consumers' potential problems or unmet needs; ensuring product quality meets national and industry standards and establishing a strict quality control system; selecting appropriate materials and manufacturing processes to stay within budget; understanding competitors' products and market trends to determine the product's unique selling points and positioning to stand out in the market, etc.

However, the following points need special emphasis.

1. Scenario-based products: Scenario is crucial

Many brands achieve great success by leveraging consumption scenarios, such as "Tired and sleepy? Drink Dongshengteling" and "Afraid of getting heaty? Drink Wong Lo Kat."

Scenario is an important part of product consumption. To understand it, refer to the six elements of narrative writing we learned as children: time, place, character, cause, process, and result.

For example: A functional beverage brand defines its scenario as white-collar workers staying up late at night for overtime work, needing to refresh their minds.

Break it down: Time is night, place is the office, character is white-collar workers, cause is overtime work, process is feeling sleepy and unfocused, and result is refreshing the mind. Therefore, a complete scenario must have these six elements; otherwise, it cannot form a closed loop to meet the specific needs of a specific group, and the product's scenario positioning will be problematic.

Of course, we can also call products that rely on consumption scenarios "scenario products."

But why is it difficult for scenario products to succeed? I summarize the following points:

a. Real scenarios vs. fake scenarios:

Some product developers define product demand scenarios based on their own cognition. The biggest fear is cognitive bias, like an expert saying that if people are poor, they can rent out their idle houses or drive their cars to be ride-hailing drivers. So scenarios must be based on the real life needs of target consumers.

b. Scenarios need to be built on cognitive foundations:

Even if the product scenario is real, if the channel does not support it, the perceived value will be greatly reduced. Currently, it is difficult to establish the uniqueness of a product scenario, meaning that products in the same scenario are substitutable. Coupled with consumers' "memory cocoon," if the channel does not guide, the product scenario is hard to implement.

c. Imprecise scenario definition:

As mentioned above, the six elements of narrative writing—time, place, character, cause, process, result—are missing, leading to an incomplete scenario loop.

d. Product packaging and marketing not closely related to the scenario:

FMCG products place more emphasis on contextualization in marketing and packaging. R&D teams need to consider how to combine with packaging and marketing to present the appropriate product scenario and brand image to drive sales. For example, during important festivals or holidays, scenario-based marketing should be carefully crafted and promoted according to the atmosphere.

2. Channel-based products: Channel is crucial

In fact, many products have almost no scenario concept but still succeed. From another dimension, a successful product can be defined as: overall cost leadership, differentiation, and focus.

For example: Jinmailang's Madun Town, a super big single product, retailing at 2 yuan, with annual sales of 2 billion yuan, succeeds due to overall cost leadership and focused full-channel distribution; emerging brand Pukou, retailing at 5-6 yuan, with annual sales of 2 billion yuan, succeeds due to differentiation (high fruit content) and focus on the catering channel.

These products do little research on scenarios but focus on channel layout and can still achieve success.

Of course, we can also call products that rely on channel layout "channel products."

What is the focus of channel products? Simply put, there are three points:

a. Channel selection: Choose the most suitable channel to sell the product, with precise selection and segmentation into sub-tracks (e.g., the catering channel is not a sub-track; the next level like hotpot restaurants or Hunan cuisine restaurants are).

b. Channel density: Once the channel type is determined, concentrate firepower to penetrate it thoroughly and become the leader in that channel category.

c. Channel quality: Return to basic offline actions: display, visualization, maximizing shelf space, etc.

It is worth noting that with the continuous penetration of the internet into the FMCG industry, online channels have also produced well-known and recognized brands, such as "Taobao brands" on the Taobao channel and "community group-buying brands" on community group-buying platforms. These products that rely on online channels are also new types of channel products.

3. Price-based products: Price is crucial

Price is the element that most directly stimulates consumers' sensitive nerves. It would be a stretch to say that the lowest-priced product in a category will definitely sell, but in reality, most consumers accept low-priced products. China has 600 million people with a monthly income below 1,000 yuan, a huge consumer base whose need is low prices.

For example: Zhang Xinfa's 5-yuan betel nut, with many pieces and extremely low unit price, meets the industry standards for betel nut quality, and has found a niche in the fiercely competitive betel nut industry.

Of course, price-based products are not necessarily low-priced; they can also be ultra-high-priced. For example, a luxury brand sells rings, hair clips, etc., made of ordinary metal elements at sky-high prices, and people are willing to buy them. This involves marketing, communication, branding, and other factors.

On the Channel Side

The essence of channels is to reach target consumers who can solve practical needs in a large-scale, efficient, low-cost, and diversified manner. These are also the core elements of continuous channel iteration. Simply put, it means "think of it, see it, buy it, and enjoy buying it." This is a big topic, so let's discuss a case.

A friend once told me over a meal: "No company that does well in bottled water can do well in beverages, like C'estbon and Ganten. And no company that does well in beverages can do well in bottled water." Such cases are everywhere, like a curse. The only one to break the curse is Nongfu Spring, which sells both bottled water and beverages well. What is the reason? Is it product or channel?

When analyzing the factors of a company's success in the market, I tend to analyze three aspects: product competitiveness (including brand), channel competitiveness, and consumer competitiveness. I served at Nongfu for a long time and have deep feelings about these three points.

1. Product competitiveness comes from the enterprise leader's accurate judgment of the future consumer market and continuous, long-term, unswerving product cultivation.

Take Oriental Leaf as an example. Boss Zhong was determined to make tea with "5 zeros." As early as 2011, we began promoting this product. Investment in Oriental Leaf brand building continued for many years, with losses all along, but investment continued. It only exploded in recent years. This process of building product strength is hard for ordinary companies to persist in.

2. Channel competitiveness came from Boss Zhong's visit to the Jiangxi market in 2012. After comparing with the gap with "two colas" (Coca-Cola and Pepsi), he found that Nongfu Spring's channel capability was insufficient. The following year, the whole company began a vigorous channel coverage model iteration. The word "subversion" was often on our lips, seeking a channel model that suited our own development characteristics. It took about 3 years to iterate to the current mature and stable manufacturer-dealer cooperation model, greatly increasing channel competitiveness.

3. Consumer competitiveness needs no elaboration. The longest thing I did at Nongfu for bottled water was "water testing." Direct and indirect water tests for consumers were no less than 100,000 person-times. For Oriental Leaf, in summer we pulled ice buckets, in winter we pushed thermos bottles. Over the years, the free product experience samples of Oriental Leaf used up nearly a truckload of goods.

Channel strength alone cannot make Nongfu Spring what it is today. Looking at other companies, almost none can persistently do these three competitiveness aspects like Nongfu Spring. They often rely on one or two of channel, product, or consumer, and achieving their current results is reasonable.

Finally, strong channel competitiveness can build a company, but it also needs product and consumer competitiveness to add wings to the tiger.

On the Consumer Side

Consumers are God, but nowadays God is increasingly hard to please. When making good products, there are several important considerations on the consumer side, which are also clichés. Let me briefly list them:

1. Demand research: Understanding the needs and preferences of target consumers is very important. Through market research, user feedback, and other methods, understand consumers' needs and expectations, distinguish between real and fake needs, and design products that meet their needs.

2. User experience: Consider the habits and preferences of different consumer groups, maximize differentiation, and provide a good experience is key to attracting and retaining consumers.

3. Quality and reliability: Consumers have high requirements for product quality and reliability. Ensure product quality meets relevant standards, can stably meet standards over time, and provide timely and effective after-sales service to make consumers feel assured and satisfied.

4. Price and value for money: Consumers are highly price-sensitive, so pricing should consider market competition and product value. Provide reasonable prices and ensure excellent cost-performance ratio, bringing more practical value to consumers.

5. Brand reputation and trust: Building a good brand reputation and consumer trust is an important foundation for product success. By providing high-quality products and services, actively participating in social responsibility and brand communication activities, establish a trustworthy brand image, and win consumers' trust and support.

In summary, to do well in products, you need to pay attention to consumer needs, user experience, quality and reliability, price and value for money, and build a good brand reputation and trust to meet consumer expectations, win market competitive advantages, and achieve sustained business success.