Five ways to start a business high don't low-cost era, how to say goodbye to low-cost business? Dachen Tianlian Zhang Huaping believes that most enterprises are still in the thin profit marketing stage, ignoring the value brought by profitable marketing. Only profitable marketing can make enterprises say goodbye to the low-cost era.
Then, if enterprises do profitable marketing, how can they say goodbye to the low-cost era? Dachen Tianlian Zhang Huaping believes that you can start from the following five aspects.
I, Jump out of the low price to do high price
What is low price? What is high price? Low price is the homogeneous price, high price is the differentiation. If LV produces and sells bags for tens or hundreds of dollars, I believe there is not much difference with other bags in the market; if Mercedes-Benz produces cars for tens of thousands of yuan, I believe it is the same with Xiali and QQ; at this time, will you still buy Mercedes-Benz and LV?
Obviously not! Therefore, in the business operation and market competition, LV, Rolls-Royce and Haagen-Dazs have coincidentally chosen the business strategy of jumping out of low price to do high price. They have not only achieved success through their high price strategy, but have also brought in a steady stream of profits for their companies. Why is it that going beyond low prices to high prices not only does not reduce profits, but also becomes a core source of profit for the company? There are several reasons for this. Firstly, high prices represent high quality, and in today's market economy, no matter who you are, you will subconsciously believe that high prices bring high quality, and that good value for money is just a luxury of consumption, whether it is Mercedes-Benz or BMW, and Chery, Geely is different.
Secondly, high prices satisfy the consumer psychology of showing the same and showing different. Today's consumers have completely said goodbye to the consumption of subsistence, striding into the stage of enjoyment consumption. At this time, what is the way to sell to reflect the enjoyment of consumption? The purchase of high-priced products and brands is a typical characteristic of enjoyment-oriented consumption. When the middle class and the rich are rising rapidly, this phenomenon will be even more pronounced, which is why China is today the world's largest consumer of luxury.
Finally, high-priced consumption satisfies the consumer mentality of service and enjoyment. The same is true for a night's stay in a five-star hotel, but not the same as a stay in a home, when customers are not only satisfying the demand for accommodation, but also the characteristics of service and enjoyment.
By looking at the above, high-priced consumption and low-priced consumption present completely different polarities of consumption: low-priced is to meet the survival, high-priced is to meet the survival above the enjoyment. When the enjoyment group gradually increases, business sales will definitely keep increasing. This is why when some low-priced products continue to sell at reduced prices, high-priced products do stand out and are favoured by the market.
II, out of the masses to do niche
In today's economic development and consumer upgrading, many enterprises have been focusing on the mass market, and indeed invariably ignore the niche market, to continue to expand the market size and share as the highest goal, has actually gone into the Red Sea competition misunderstanding. The mass market can do the scale, but the niche market can do the profit.
In fact, in the development of enterprises, there are two profit models, one is the mass profit model, a niche profit model, the mass pursuit of thin profit and more sales, niche pursuit of less sales and more earnings. Trunks is certainly not as large as Mengniu's yoghurt and Tetra Pak pillows, but it contributes 60% of Mengniu's profits. Haagen-Dazs may not have as high sales as Hulu Snow, but in terms of profits, its return on investment is much higher than that of Hulu Snow. So in today's escalating consumption and market refinement, doing niche markets often becomes a new profit growth point for enterprises and becomes the core driver of their development.
III, away from the price war to do value war
Profitable marketing, the entire business operation to stay away from the price war, wholeheartedly play a good value war, price war will not only weaken corporate profits, but also weaken the brand. Why does this phenomenon occur? Because the real purchase of high-end or high-margin products, customers simply do not care if you discount, the price is not the core element that affects their choice to buy. Once you discount, the customer instead rebellious heart, triggering a lot of suspicion, such as whether the product quality or style problems, etc..
So in the profitable marketing of high-margin products, we must continue to build the value of the product and the brand, such as through the provision of additional services to bring better appreciation for the brand. Remy Martin and Hennessy constantly enhance their brand effect through high-end tasting exchanges, and make every effort to build a circle culture, focusing on creating a brand divided into a hierarchy. The same goes for Mengniu Trunks, which has been building its circle culture and high-end branding through its celebrity meetings.
