---
title: "Deep Feature | For New High-End Growth, Build a 2C Organization Skilled in Mobile Warfare"
description: "High-end products are either not recognized or fiercely recognized. High-end transformation is not just about the pinnacle of the pyramid. This article discusses the differences from past structural adjustments, the characteristics of high-end price bands, and why a 2C organization is essential for high-end marketing, emphasizing scenario, experience, and integrated marketing communications."
author: "刘春雄"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2022-12-13"
categories: "Management & Methods"
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citation: "刘春雄. “Deep Feature | For New High-End Growth, Build a 2C Organization Skilled in Mobile Warfare.” New Distribution, 2022-12-13. https://xinjignxiao.com/en/articles/deep-feature-for-new-high-end-growth-build-a-2c-organization-skilled-in-7327df82/"
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---

# Deep Feature | For New High-End Growth, Build a 2C Organization Skilled in Mobile Warfare

> High-end products are either not recognized or fiercely recognized. High-end transformation is not just about the pinnacle of the pyramid. This article discusses the differences from past structural adjustments, the characteristics of high-end price bands, and why a 2C organization is essential for high-end marketing, emphasizing scenario, experience, and integrated marketing communications.

**Lead: High-end products are either not recognized or fiercely recognized.**

High-end transformation is not just about the pinnacle of the pyramid. The term "structural adjustment" has been used for many years, and may no longer resonate. Over 30 years of marketing experience, I have been constantly adjusting structure. So, how is this round of structural adjustment different from the past? In the past, structural adjustment was (mass) mainstream upgrade. In the past M-shaped consumption structure, mainstream upgrade meant low-end upgrade. For example, the mainstream price of bottled water adjusted from 1 yuan per bottle to 2 yuan per bottle. This is a mass mainstream upgrade-style structural adjustment. For example, Yili yogurt adjusted from Uusouran to Ambrosial, although the price increase was significant, it was still a mainstream price upgrade-style structural adjustment. If we want a specific industry case for high-end, liquor is more appropriate. Feitian Moutai's price has long hovered around 800 yuan. In the previous round of liquor price adjustments, 800 yuan was not even considered sub-high-end. If we must use price as an indicator, I believe this round of structural adjustment has the following characteristics for high-end:

_1. The high-end price band is rapidly moving forward. Such as Feitian Moutai, 15-year Moutai, 30-year Moutai._
_2. The high-end price band is lengthening. Forming a high-end product cluster and high-end price band._
_3. Mass mainstream products are upgrading overall (mass high-end transformation)._
_4. After low-end products upgrade, the original low-end price band shrinks sharply (low-end upgrade)._

According to China Resources CEO Hou Xiaohai, the future structure will be spindle-shaped. Mid-to-high-end will account for half of the entire structure, and mid-to-high-end will be the main body of the future. Some industries may even become an inverted pyramid structure. In the embryonic and development stages of high-end, because high-end has not yet scaled, in the sales-oriented mass consumption field, the attention to high-end is certainly insufficient. When high-end explodes, it is likely that preparation is insufficient. By the way, using the logic of involution to do high-end is hopeless. If others have succeeded, squeezing competitors with traditional methods is hopeless. Because high-end user stickiness far exceeds mass products. The arrival of high-end may be elongated, with the bottom shrinking, the price band pulling up, and the spindle stretching; it may be wave-like, upgrading layer by layer, impacting the top; or it may be leapfrog, cross-generational, and clustered. This is determined by industry characteristics, and may not all be like the liquor industry. It's just that the liquor industry is too prominent, making it easier to understand as a case. Hou Xiaohai believes that understanding high-end cannot forget to add a "-ization" suffix. High-end transformation has both a layer-by-layer progression from low to high (this is the traditional high-end path), and also first occupying the commanding heights with high-end, creating a price band that can accommodate many high-end products, thereby forming a product cluster, or called a large high-end cluster. There is also a phenomenon: due to China's complexity, uneven development among regions, uneven development between urban and rural areas, and even division into first to fifth-tier markets, the emergence of high-end in the early stage is point-like and block-like, easily treated by enterprises as individual cases rather than precursors of a universal phenomenon. When the high-end era truly arrives, the scale of mid-to-low-end will no longer generate profits, only serving to share costs. A 10% increase in high-end share may increase profits by 30% or even more. **Whether Chinese brands can grow into value brands depends on high-end. The future profit growth of Chinese enterprises depends entirely on high-end.** Whether they can establish a foothold in the industry's high-end has become a new route issue for Chinese enterprises. Once the route is determined, the rest is the issue of cadres and organization. So, what organization can accomplish the mission of high-end transformation?

**Deep Distribution: A Pawn That Has Already Crossed the River**
Traditional structural adjustment basically used the same channel organization, namely the mass channel organization.

In the new structural adjustment, some can be completed with traditional channel organizations. For example, low-end upgrades and mainstream product upgrades can still use deep distribution organizations. However, we must recognize the limitations of deep distribution organizations and the importance of new organizations.

For mass product distribution, deep distribution is still irreplaceable. The greatest value of deep distribution is completing the distribution and merchandising of millions of terminals. With brand power, customer relationships, and profits, it provides the possibility for terminal sell-through.

Multinational brands that do well in China also lean towards deep distribution in terms of channels. This is determined by China's fragmented channel characteristics.

Why is deep distribution effective? Because mass products have high substitutability. As long as they are visible at the terminal, substitution is possible. As long as there is a sell-through policy, there is strong substitutability. As long as you win over b, you may win over C.

As a pawn that has crossed the river, deep distribution has played an important role in mass product distribution and will remain irreplaceable in the future. However, for high-end products, mere distribution is useless, and high-end products do not emphasize distribution rate. Spending money on displays and promotions may also be useless. In short, the familiar tactics of deep distribution may be exactly what must be abandoned for high-end.

Image source: China Resources Snow Beer official flagship store

**High-end products must be based on value; any measure with price policy contradicts the sense of value.**

**2C Organization: Strong Cognition Organization**
Deep distribution "first distributes, then sells through". Deep distribution organizations are 2b organizations, with their user interface at B and b, not C. High-end products have weak substitutability. As long as you win over C, C has high stickiness, and winning over b is simple work. High-end products do not require daily customer relationship visits, daily displays, or daily promotional activities. The reason is simple. High-end products are strong cognition products with poor substitutability. Therefore, the key words for high-end product marketing are unrelated to deep distribution actions such as distribution, sell-through, and promotion, but are strongly related to cognition. **High-end products are either not recognized or fiercely recognized. This is strong cognition.**

Cognitive communication either has intensity or density. Mass media communication (advertising) and self-media content fission communication (IP), because the audience is the mass, density is particularly important. For high-end products, because the audience itself lacks density, cognitive intensity is very important. The trick for high-density cognition is audience reach and repetition frequency, forming reinforced memory. The trick for high-intensity cognition is "one-time cognition, unforgettable for life". Since it is strong cognition, the mass cognitive models we usually know are ineffective, such as mass media advertising and IP content fission. Where does strong cognition come from? Three key words: scenario, experience, and integrated marketing communications.

**1) Scenario**
High-end product consumption usually has a scenario nature, and the value of high-end also needs scenario to set off. Therefore, high-end marketing is usually scenario-oriented, different from the consumption orientation usually mentioned in mass marketing. It must be understood that high-end is not an upgrade of the mass, but a consumption scenario different from the mass. In the corresponding scenario, there must be corresponding high-end products. User orientation is the similarity of the same users; scenario orientation is the similarity of different users in the same scenario. The value satisfaction of high-end products is easier to understand when combined with scenarios. Scenarios are divided into three types: first, consumption scenarios; second, operation scenarios; third, sales scenarios. Scenario building should aim at consumption scenarios, and create operation scenarios and sales scenarios.

**2) Experience**
The purpose of creating scenarios is not sales, but experience. Forming cognition in scenarios is experience. Scenario experience, especially immersive experience, is strong cognition. The high-end of high-end products is often formed in strong cognition.

△ Drink·JOY WONDERπ Beach Play Outdoor Exhibition Area Image source: Snow Beer

Generally speaking, consumers of high-end products have a higher cognitive threshold, are resistant to mass media advertising, and are even less interested in content fission. However, experience in a scenario atmosphere can generate high recognition and may produce exclusivity. Scenario experience is often not personal experience, but group experience, and the potential energy of group experience is large. Therefore, although the cognition efficiency of the experience model is low, the effect is very good. Of course, because of low efficiency, the cognitive cycle is relatively long, and long-termism must be adhered to.

**3) Integrated Marketing Communications**
High-end product cognition has no centralized communication position. For example, magazine advertising, niche event sponsorship, scenario experience, etc., are common in high-end products. **If mass media lifts mass brands, content fission lifts IP, and elevator advertising lifts Focus Media brands, then integrated marketing communications (IMC) will lift high-end brands.** 20 years ago, when Mr. Schultz's integrated marketing communications entered China, we thought it was an idealized communication model, far away from us. Now it seems so close to us. According to the compilation of brand expert Miao Qingxian, integrated marketing communications has four key words:

** _First, all contact points._ ** All contact points between consumers and the enterprise can be used as channels for information transmission; ** _Second, information flow._ ** Operating information is the core work of marketing; ** _Third, communication unity._ ** Speak with one voice. Each piece of information should be integrated and echo each other to support other information or impressions about the brand; ** _Fourth, interaction._ ** Schultz proposed a communication model: publicity, acceptance, cognitive response, attitude, intention, and behavior. The communicator and the audience are interactive, and the brand communicates again based on consumer reactions and attitudes._

For mass brands, integrated marketing communications may only be a supplementary means, but for high-end products, integrated marketing communications is a necessary means. **High-end consumers appear in point-like scenarios, and it is necessary to let consumers feel the high density and high intensity of communication in point-like time and space.** Among the above high-intensity cognition keywords, scenario and experience are intensity, and integrated marketing communications is atmosphere (relative density). Other communication methods only play a supporting role. High-density cognitive communication must rely on media, because only media has high reach. The best way for high-intensity communication is to reach individuals or circles, and face-to-face experience has the highest cognitive intensity. Therefore, mass brands have a brand department outsourced to media, while high-end products, in addition to the brand department, also have a 2C organization that directly touches the C-end at the front line.

**2C Organization and Mobile Warfare**
2b organizations are normalized sales organizations, only able to do normal operations at the B-end and b-end. 2C organizations are non-normalized cognitive organizations. Once the C-end is won over and has sufficient stickiness, the remaining work can be handed over to the 2b organization. Therefore, 2C organizations fight mobile warfare, and 2b organizations fight positional warfare. Traditional enterprises also have 2C organizations, such as advertising departments (brand departments) and IP content departments. These 2C organizations usually rely on media (mass media, self-media) to reach the C-end. The scenario experience of high-end products must stand at the front end and directly face the C-end. Recently, when visiting enterprises, I found that "assault teams" that only existed when small and medium enterprises broke through have appeared in the high-end products of large enterprises, such as "flying teams" and "flying tiger teams". From the name, this is an organization that fights mobile warfare. After completing cognitive promotion in one region, they move to another market. So-called mobile warfare meets the following conditions:

_1. High density of personnel in a short time, several times the personnel density of competitors; otherwise, it is not mobile warfare but guerrilla warfare;_ _2. Mobile warfare must be an annihilation battle, aiming for complete victory and major victory;_ _3. Mobile warfare is a quick battle. Before the opponent reacts, the war is already over;_ _4. Mobile warfare is an efficient organization. Pre-war preparation, post-war cleanup, efficient personnel scheduling, and preparation of "weapons" (consumables) all greatly test the enterprise's organizational capabilities._

Fighting mobile warfare is more difficult than positional warfare, but the efficiency and effect are also better. The high substitutability of mass products determines that enterprises must maintain a standing 2b organization to achieve repeated contention for the b-end position. Deep distribution organizations are like this. The high stickiness of high-end users determines that after the 2C organization completes strong cognition, the work intensity of the 2b organization is not as high as for mass products. Therefore, the importance of the 2C organization is higher than that of the 2b organization.

**2b Organization and 2C Organization**
In the mass product marketing system, the 2C organization relies on media to reach the C-end. Therefore, the brand department (marketing department, communication department) is in the rear, with few people, outsourced work, but consumes huge resources annually (advertising fees). This is a pull marketing organization. Deep distribution is a channel push organization, relying on a huge channel team to put products on shelves, compete with competitors for shelf space, realize relationship monetization through terminal customer relationships, and achieve terminal interception through shopping guides. The above organizational characteristics are determined by the strong substitutability of mass products. So, what is the strong substitutability of mass products?

**Marketing guru Kotler has emphasized in "Marketing Management" that we have now entered the stage of "brand similarity" from "brand ladder".**

My understanding is: for mass brands, in the past there were first choice and second choice, but now the top three brands are all "about the same", and the brand ladder no longer exists. The strong substitutability of mass products determines that 2b organizations must appear at the terminal with high density to compete with competitors for terminal display space. Because even big brands are not much different from other big brands, there is no need to spend too much time looking for the first choice brand. With the trend of high-end transformation, the share of mass products declines, and the importance of 2b organizations may decline, with fewer people. Although the 2C organization is a mobile warfare organization, market promotion is wave-like. One wave pushes up a step, and after a period, there will be a second wave. Therefore, although the 2C organization is a mobile warfare organization, it is also a normalized organization. Of course, for 2C organizations that are not permanently stationed in a certain market, the methods of 2b organizations are already ineffective, and 2C organizations need new "weapons" equipment. This is a topic for another article.

**2C Organization and Contact Point Management**
The core of 2b organization management is terminal management, management around terminal actions, such as distribution rate, display, terminal inventory (stock pressure), and sell-through management. The core of mass communication and IP content fission management is the number of media reaching the C-end, advertising ratings, and content reach. **The core of 2C organization management is contact point management and cognitive conversion efficiency management.** Contact points, i.e., touchpoints. IMC theory tells us: all contact points are communication points. The contact points between the 2C organization and users are, first, experience scenarios of high-intensity cognition, which are direct human-to-human contact points; second, media contact points in specific scenarios, forming a cognitive atmosphere. Just as deep distribution takes distribution rate as a KPI, the 2C organization should take contact points and contact point actions as KPIs for contact point management. Similarly, without the density of contact points, high-end potential energy cannot be formed. The strong cognition formed by point-like contact will fade over time. Contact point management and contact point conversion rate management will play an increasingly prominent role in the promotion and cognition of high-end products.

Liu Chunxiong, advocate of new marketing, dean of the Marketing Digitalization Research Institute. Currently an associate professor at Zhengzhou University, author of the new marketing trilogy "New Marketing", "New Marketing 2.0: From Deep Distribution to Three-Dimensional Linkage", and "New Marketing 3.0: bC Integrated Digital Transformation".


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## Citation metadata

- Publisher: New Distribution
- Author: 刘春雄
- Published: 2022-12-13
- Canonical: https://xinjignxiao.com/en/articles/deep-feature-for-new-high-end-growth-build-a-2c-organization-skilled-in-7327df82/
- Original source: https://mp.weixin.qq.com/s/H23k4cSHbYrlif52pRoegg

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