Compared with developed countries, the market verticality of many industries in China is relatively high, that is, there are different market segments with very different grades in the same industry. This reflects that there are two differences between China's market and developed countries: first, many industries are not yet mature; Second, the customs and purchasing power of consumers in China are quite different, so the demand for the function and quality of products is also quite different. For example, the specifications of lubricating oil in EMKT.com.cn market in China are several times more than those in the United States; Another example is daily necessities such as milk powder and toothpaste. In developed countries, the product form is relatively simple and the verticality is very low. However, due to the great difference in domestic demand levels, the product forms and grades are very rich.
Both the immature industry and the high verticality of the market caused by the difference in consumer demand reflect that there are many emerging opportunities in the China market. Therefore, the space and success probability for enterprises to implement brand strategy are higher than those in developed countries.
First of all, because the market is highly vertical, the demand for product function and quality is very different, and enterprises will gain broader space for core value development when planning brand strategy. It is easier to find out the core values that can impress the target customers and clearly distinguish them from competitors, whether from the differences of products themselves or from the emotions of consumers. This is the first step of successful brand strategy planning.
Secondly, the probability of successful brand strategy implementation will also increase. On the one hand, the huge development space makes the repetition rate of enterprises in choosing their own brand strategy lower, which fundamentally improves the overall success rate of brands; On the other hand, due to the low competition intensity in the same or similar market, the competition of enterprises is often difficult to upgrade to the core value level, and most industries only stay in the competition of brand awareness. Therefore, the first step of category occupation, the beautiful association of brand names, the brand temperament recognized by target customers and the status recognition of industry leaders will all become the magic weapon for enterprises to win the market. These are the main brand assets of developed countries, but for many industries, China denies that a brand owns these assets.
The vertical market also determines that enterprises will have more chances to succeed by adopting sub-brand strategy. First, a main brand covers the series of products of the enterprise, and at the same time gives each product a sub-brand, highlighting the grade and personality image of the product.
The Difference of Market Environment between China and Developed Capitalist Countries
Comparative project China market developed capitalist countries market
Market verticality The market verticality of most industries is very high, and there are also different market segments with very different grades in the same industry. The market verticality of most industries is low, and the requirements for product grade differences are small.
Market Maturity Many industries are still in the introduction period and growth period, but they have not yet developed to the level of core value competition. Most industries have entered a mature stage, and the market is extremely subdivided. Each market segment has its own "overlord".
The legislation of advertising law on market communication environment is not perfect, the media maturity is not high, the communication environment in various places is relatively independent and perfect, the media is mature and the communication environment is increasingly integrated.
Social responsibility, social responsibility culture is generally lacking, and social responsibility consciousness is generally high.
Enterprises are weak and need low-cost development. Brand strategy should not only obey the long-term goal-effectively accumulate brand assets, but also promote short-term sales promotion. Strategic promotion is backed by strong financial resources.
Consumer psychology and behavior pay attention to face culture; Perceptual consumption is greater than rational consumption; The post-80s generation has more and more influence on the consumption structure, and its rationality is higher than that of China consumers.
Conclusion Brand strategy can't be copied from the west, and China's national conditions must be highlighted.
Second, the influence of market maturity differences on brand strategy.
The standard to judge whether a market is mature or not is whether there is an unshakable leading brand in the industry. As far as developed countries are concerned, most industries have entered a mature stage, while in China, due to the late start of market economy, many industries are still in the market introduction period and growth period, which determines that China enterprises are very different from developed countries in planning brand strategy.
1, the competition of category occupation and brand awareness in many industries will be higher than the competition of core values.
At home, because many industries are still in the introduction period and growth period, there is still a lot of room for product segmentation. Therefore, brands can quickly distinguish themselves from other competitors through category occupation and win the favor of relevant market segments; By enhancing brand awareness and entering the candidate menu of consumers' decision-making time, these have a vital impact on the rise of an emerging brand. The slogan "Drink Wang Laoji if you are afraid of getting angry" has been widely recognized by consumers, which is the result of Wang Laoji's clear category occupation.
2. There are many opportunities for brand extension.
In brand extension, enterprises should consider the following factors: brand core value, correlation between old and new products, characteristics of industries and products, market capacity of products and market environment in which enterprises are located, purpose of developing new products, financial resources and promotion ability of enterprises, market competition pattern and market maturity. Among them, whether the brand core value can include extended products is the most important factor to determine whether the brand can be extended. However, for mature markets, due to the existence of leading brands, if latecomers adopt brand extension, the chances of surpassing competitors will be much smaller, so the phenomenon of brand extension in developed countries is relatively rare, and they enter new mature markets in the form of developing multi-brands.
Because many domestic industries are still in the stage of competition by brand awareness, there is no stable leading brand in the market. Therefore, when the enterprise has accumulated enough popularity and reputation in the original market segment, it can carry out rational brand extension if it conforms to the above-mentioned brand extension principles. The brand extension adopted by Wahaha has achieved great success in China market. However, at the beginning, it was also attacked by many people in the industry. These comments ignored the differences between the developed market and China market and made a dogmatic mistake of Wang Ming's style.
Although the opportunity to develop multi-brands is not mature, it is more than in previous years.
At present, the opportunity of developing multi-brands in China market is not mature, but it is more than in previous years. First of all, some enterprises have gained some original capital accumulation in the development process and have certain strength to launch new brands; Secondly, due to the large scale of some market segments, enterprises can occupy the market by cultivating a brand-new brand, which not only avoids the situation that the core values brought by brand extension can not be fully contained, but also can take the lead in forming the advantages of category booths, build the leading brand in this market segment and improve the entry threshold. When developing multi-brand strategy, we should also avoid being tempted by short-term interests and falling into the misunderstanding of opportunism. Yangshengtang's multi-brand strategy has achieved certain success in China market, and also learned some lessons. There are many brands under its banner, involving a wide range of categories, such as Guiling Pill, Nongfu Spring, Qingkou Buccal Tablet, Scream, Nongfu Orchard, Nongfu Steam Tea, Happy Growth, Duoer Capsule and Mama Beef Stick. For example, "Qingzui Buccal Tablets" and "Yangshengtang Adult Vitamins" are the products of opportunism. Push vitamins and chewing gum when you see vitamin fever, and give a buccal tablet for clearing your mouth. Results The performance of vitamins was far less than that of 2 1 gemvita, and the sales of Qingzui buccal tablets were less than 1 100 million. Yangshengtang should concentrate its limited resources on the deepening of the brand concept of "TCM health experts", and develop more authoritative products by continuously strengthening its own research and development capabilities, so that the assets of the general brand of the enterprise can be accumulated while developing multiple brands.