Click the image for details. Recently, I saw news that Evergrande's boss Xu is now the second richest man in Asia, second only to Jack Ma, the richest man in Asia, who invested in Xu's Evergrande football team and is Xu's partner and close friend. It's really interesting: his water business is a mess, but his real estate is already number one in Asia—but unfortunately, what about Xu's promised target of 30 billion in three years? Has it been achieved? How exactly should premium water be done? This is still almost in chaos. Everyone's time is precious, and I don't want to talk nonsense, so I'll just give a few key points. Why is premium water difficult? Why has the premium bottled water market been lukewarm for a long time? I think there are three main reasons: First, consumption habits: all water is colorless and tasteless, and consumers generally don't know or perceive the difference between purified water and mineral water; Second, for a long time, the prices of ordinary mineral water and purified water have been similar, with no price difference, so there's no differentiation, and consumers are not sensitive; Third, consumer psychology: why drink a 10-yuan bottle? What's the reason? What's the consumption scenario? What problem does it solve? How to do premium water? Today a reporter interviewed me, saying that Ganten C'estbon launched a glass-bottle premium water in June: Benlaiwang, selling at 9.9 yuan per bottle, and asked my opinion. I'm generally optimistic; Ganten C'estbon has a chance in premium water, because it has the experience and resources, and it's catching the right opportunity. But what I don't understand is that this rustic name is actually a translation of Ganten C'estbon's original name: Blairquhan, which sounds quite foreign. It's a castle in Scotland, later acquired by the Ganten Group—this approach is, of course, in line with Ganten C'estbon's brand-building route: telling a good story, a story of European aristocracy, and this "Benlaiwang" glass-bottle premium water also wants to do that. However, it's hard to be self-consistent: your water source is in Luofu Mountain, Huizhou, but the castle and story are in Scotland. I don't know how to solve that. Let's set aside these brand planning issues for now. What about strategy and market approach? I don't quite approve of the first launches on JD.com or Tmall, because this is a niche water that needs experience and trial; it's okay to promote and hype on these online platforms, but they are not good sales channels. Below, I give three moves. First, what is the purchase reason and solution? Consumers need a sufficient reason to buy any product, especially for premium products with little functional difference. Everyone in the water business knows: appealing to origin, mineral content, telling a story, or designing a high-end package—these are no longer differentiating. Instead, I think providing consumers with a solution is fundamental. For example, the "first glass of water in the morning" is not bad; it's a solution and a scenario, but it's not enough because only mass-market water can succeed that way. To do premium, you need to target a specific group and solve a specific group's problem. For example, physical exercise, running, etc. If there were a water specially customized for them, would it take off? I think it would be better than origin, minerals, stories, or packaging. Second, what is the consumption scenario? Where to drink? If it's just a solution, it's still not enough. You need to integrate the solution into a specific scenario, such as drinking after waking up, before and during exercise, or after exercise, providing a complete set of methods and plans—isn't that an innovation? Kunlun Mountain sponsors sports events and spreads brand value through high-end groups, which is somewhat successful, but the final landing of such communication is weak, with no appeal or sales power. JDB created the hotpot scenario and suddenly became popular in catering; Jingjiu also established a form and ritual of drinking in the catering channel, which I think is also a scenario application. What scenario can we create for premium water? Let the communication land and achieve sales conversion. Third, where to start? Core consumption pull level: There are roughly the following approaches: whether brand or product, the most important is to give new value and shape a differentiated premium water image; First, focus on regional markets, doing deep and thorough sample markets with multi-level, three-dimensional communication; Second, after a certain foundation, formulate PR activities, establish connections with enterprises and institutions, and conduct free tastings and trials to play a driving and exemplary role; Third, target the target group with continuous promotion, such as using internet precision marketing for PR, promotional activities, WeChat circle interactions, and even using new media platforms to carry out family drinking water consumption plans. Key market advancement level: The internet sample market is not outdated, but it needs to be considered from a larger dimension. For example, starting from the South China market, replicate and extend one market after success, choose points to do deep and thorough, rather than spreading out comprehensively. After selecting the market, you need to choose channels. Where to break through? Consumers need a value benchmark to accept a premium product. So the channel selection strategy: first, large supermarkets set the value benchmark and form value awareness; Second, chain convenience stores, due to low price sensitivity, facilitate consumption; Third, prosperous areas and points (commercial districts, quality community terminals) form window demonstration effects to drive consumption; Then, special channels, such as cinemas and entertainment venues, supplement sales. Finally, timely launch mid-to-high-end barrel water, baby water, and tea-brewing water—enrich the product portfolio to form a stable and solid market position. Source: Shenzhi Precision Marketing (ID: shenzhiyingxiao2010) Click the image for details. The 3rd (CFIC) China FMCG + Internet Conference will be held in Chongqing in October 2017. At this conference, New Distribution has invited over 1,000 distributors, 500 brand owners, 200+ B2B platform founders, and 100+ investment and financing institutions to participate. The theme of this conference: New Forces, New Ecosystem. We will invite well-known domestic B2B industry experts, mentors, and B2B platform founders to discuss the following topics: Core topics of this conference:
How can the FMCG industry achieve new growth opportunities through B2B?
How to build the new supply chain behind new retail?
How can intra-city logistics help B2B achieve leapfrog development?
Highlights of this conference:
The industry's first "2017 China FMCG B2B Industry Competitiveness White Paper"
Excellent transformation and upgrade distributor case sharing
Conference + exhibition upgrade, Hall 6 Internet Technology Exhibition strengthens docking
Alibaba Retail Link, ProLogis Finance, Eternal Asia Supply Chain, Best Dianjia, Yijiupi, Unilever, Haiding Technology, Yunmei Shares—leaders from various fields will give speeches and share pioneering views.
October 17-18, 2017 Chongqing International Expo Center Registration is now open. Long press the QR code below or click "Read Original" to register. Early bird tickets before September 15 enjoy a 30% discount! Add friend and note "Conference Registration" Click the links below to review the highlights of the 1st and 2nd FMCG + Internet Conferences: 2016 "FMCG + Internet" Summit Forum 2017 (2nd) China FMCG + Internet Conference Click the links below to review the highlights of the 1st and 2nd FMCG + Internet Conferences: 2016 "FMCG + Internet" Summit Forum -END-