Subtraction Marketing: Building products and services from the periphery to the core

Why many two or three star hotel occupancy rate is only 40–50%, and the same price of such as home hotel occupancy rate is more than 95%?

Why the so-called four airlines in the country after the annual subsidy of billions of dollars will also be a large area of loss, and a lack of policy subsidies Spring airlines have done a brilliant, annual profit?

Why some home appliances brand stores open a loss, and Supor Life Pavilion opened a fire, but also charge up to 120,000 of the membership fees and security?

Why refrigeration started with the Kelon does not allow the sound of refrigerators, and disappeared in the market for many years the double deer seems to become the refrigerator industry in the night of the Dark Horse?

Why some kindergartens are empty, and some kindergartens reported an annual fee of hundreds of thousands of of the price is still squeezing the threshold of cutting the skull still have someone to drill inside?

Why is it that China's cars are bigger but no one buys them, while Mercedes-Benz Smart is lined up to buy?

Why did the biggest credit card company, ICBC, start advertising every day? Customers are still losing every day? And the rising star of the CCB, ICBC but the irresistible expansion of the market?

......

All this, for one reason, is that products and services are not clearly defined.

This is particularly significant for mature markets and industries.

The financial crisis has just passed, inflation has followed, consumer spending power and consumer confidence are affected, coupled with the accelerated pace of life, consumers on the product of static sales force, design sense, convenience requirements more and more high, the product function, role, characteristics is the less the better. From the point of view of consumer demand satisfaction, product marketing and service is to grasp the core needs of consumers, and the branches and leaves of the independent satisfaction related to the cost of products and services as far as possible to remove, and only in this way, enterprises can truly meet the core needs of consumers.

It can be foreseen that in the 2011, the product function, quantity, use is not the more the better, if you can meet specific areas, specific channels, specific groups, specific functions, specific services, specific costs of the need to open up a new market segments. In the age of rational consumption, how to innovate in the profit mode, how to create value for customers through core products and services?

One word, minus, it includes reducing the area, reducing the channel, reducing the crowd, reducing the function, reducing the service, reducing the cost.

But the reduction is to better add, the goal is to increase the consumer, increase consumption, increase consumption, increase consumption price, increase consumption frequency, increase consumption loyalty, increase consumption stickiness, finally realize to reduce to add, reached from the periphery to the core of product and service marketing.

I. Reduction of regional

Reducing the area is the enterprise in the promotion of product marketing process, must choose good battlefield and position. In the choice of strategy and position, we must grasp the principle of willing to, neither biting nor inaction, it is important to choose the most suitable for their own region. Representative Case: Supor Life Museum.

For Supor, in the urban channel facing the direct confrontation of love, and in the vast number of two or three-line regions and markets are facing a large number of basterds impact. With our helping, Supor City ka market import every day to sell more than one pot project, and the opponent's distance although further open, but the victory and defeat is difficult to point, is the city market in a stalemate, at this time, how to open up new strategies and positions, become a strategic choice for Supor.

Thus, Supor Life Museum project came into being, this is a typical case of regional subtraction marketing.

The Life Hall mode is led by Supor company, adopt franchise chain mode, authorize to join operator to use Supor brand and sell a whole series of products of a channel mode, its core competitive advantage is brand, product, service and operation management mode. Project since 2005, in the cooker and home appliances industry set off a new round of the storm to enter the two or three-line market. By the end of 09, the Life Museum stores have covered 29 provincial provinces, the total number of stores reached more than 600.

Not only that, the Life pavilion has gradually become the carrier of Supor strategy.

1, the whole category presents: From the pressure cooker to the cooker to the lampblack machine, for consumers to choose the cooker, kitchen appliances and other products up to 800 categories above. Two or three type of city terminals do not have the ability to display all the Supor products, two or three of cities because of local, capital Limited, will not Supor brand all items on display, this is Supor and the existing terminal contradictions. The terminals of two or three kinds of cities are difficult to achieve the goal of unified image, the terminal management brand diversification is more common, it is difficult to achieve the standard degree.

2, to ease the pressure of Ka occupancy capital risk: Supor for the agent is worried that the capital is too big risk.

3, end of the strong demand for many categories: survey shows that, compared with a class of cities, tertiary city sales terminals can provide only 1/5 of the kitchen products, and consumer demand is far from enough.

4, Gome, suning Such depth is not: as Gome, suning long-term advantage in the first-tier cities, in two or three of cities encountered many problems, such as the headquarters of the order is implemented in place, and local regional harmony, upstream enterprise distribution and so on, the overall development of the chain industry and consumer demand still have a certain distance, is not proportional.

Ii. Reducing channels

If the region to reduce the market level and the level of fuss, then, the channel is in many channels to choose the most appropriate channel positioning and combination of enterprises, rather than all the size of zero network channels. The particularity of China's market has doomed the enterprise not to carry out full-scale all-out attack on all channel fronts, but to find the most suitable channel structure and mode. Representative case double deer fridge.

Double deer, once is China's first refrigerator brand, has also been the first Chinese refrigerator listed shares. Now the two deer have been resurrected again. Has won the well-known trademarks in China, China's outstanding innovative enterprises, 100 private enterprises in Shanghai, China's rural refrigerator, the first brand and so on honor.

2002, through the first lease after the acquisition of double deer Old brand, first leased and replaced Changling production line of light asset model into the refrigerator industry, the success of the revival of China's first brand of old brands, the establishment of Cixi and Songjiang two major production base, the annual sales of refrigerators more than 2 million, into the refrigerator industry top 10 Become the first brand of rural refrigerator market in China.

Original "Two-level" refrigerator rural channel mode and "Millions project" and "benefiting poverty alleviation Project", to create a refrigerator industry blue sea, leading the Chinese refrigerator industry another wave of development climax.

From the double deer view, the key to success in the flat channel model, as well as in this model distributed across the country thousands of agents and tens of thousands of terminals. The core of the double deer reducing channel is to build the two channel mode from the beginning, from the agent to the terminal business, there is no channel chain in the middle, realize the real fast. Regardless of the agent is what level of regional and city, whether the provincial capital agents, or prefecture-level agents, or county and town agents, for the two deer, the agency's mission is to have the terminal business step open to the township.

At the same time, in order to match the two-level channel mode of management, double deer to take a highly flattened marketing organization, rapid response channels, terminals, improve channel efficiency. At the same time, the two deer sales staff and after-sale personnel, to ensure rapid response and step. Not only that, the two deer also attaches great importance to the terminal input, in order to facilitate the first-line sales staff to expand the terminal, timely feedback information, in the main market, the double deer also provide each salesperson with laptops, wireless cards and cameras, in order to get their information on the terminal, the negotiation of regular, timely feedback to distributors and superiors. In this way, dealers only run a trip, finalize the logistics and distribution terms, everything can be easily done.

Iii. Reducing the population

Traditional marketing is based on the target group's search and satisfaction, that is, the so-called subdivision of the target crowd.

In the new economic era, because of the dispersal of the crowd, mobility and personalized publicity, a certain amount of target population is relatively difficult, aggregation is more difficult, and enterprises and brands to establish a corresponding relationship, it is even more difficult.

In this kind of change, the current consumer is trying to build their own differences, on the other hand, and the pursuit of the same consumer code is inevitable convergence. Consumers with the same lifestyle and consumption of the same Code form a group of individuals expressing themselves, and these approximate groups can influence people's behavior more than modern institutions and other formal cultural authority. This group, which we call "tribes", is a consumer organization that transcends traditional groups.

The formation of this tribe is very different from the traditional target population. The traditional target crowd mostly because of geography, blood, race and other reasons, and the current tribe is the result of people voluntarily choose, first of all, members to recognize the tribe he will join, secondly, because the tribe is voluntary choice, joined the Ministry of backward members will abide by the tribal rules, And try to consume objects or services that the tribe recognizes or can perform as a tribal identity.

To reduce the population, the essence is the enterprise's target group of tribal marketing. The target population subdivision, theoretically everybody knows, but the reality operation, many enterprises wish to all the crowd sweep. In fact, the more often than not, the actual marketing effect is worse. Look at the fire is now a mess of the IPHONE4 know, you are positioned to sell high-end, to buy more people, and then look at the current EMBA education, the higher the price, the more people read. The so-called only buy the expensive do not buy the right. Under this kind of strategic guidance, the price becomes the most effective lever which distinguishes the crowd and the crowd, but also constructs a more and more sticky consumer tribe, not only the circle or the crowd.

Once there is a kindergarten, what people can come in, what people all recruit, the result business was once neglected. The boss is very distressed, looking for expert guidance. Later, the boss in the extended with the help of students in the park to carry out the extraordinary subtraction marketing, in essence, is the admission of students to the parents segmentation and subtraction marketing. After consulting the company's precision planning and positioning, the kindergarten entry threshold for unprecedented improvement, only six of people's children can be in the park, one is the civil service, institutions, state-owned enterprises at the level of cadres; second, more than 300 million of the turnover of private entrepreneurs and business owners Four is the passbook in more than 30 million of the family; the husband and wife at least one side is the overseas returnees or the two departments of the domestic 211 University PhD family; Of course, the corresponding tuition is also unthinkable. As a result of the announcement, the school was squeezed out of the threshold, the relationship, looking for people, the money ... There is only one goal, which is to send the children to the school. Of course, in the actual operation, how to develop opinion leaders, how to run these tribes, how to make people think that the value of the money, and so on, need in-depth consideration and careful deployment. Otherwise, it is easy to lose the sesame seeds did not pick up the watermelon.

Iv. function reduction

Market opportunity analysis is essential to understanding the customer's requirements for the product. Enterprises through market opportunity analysis to explore the customer's demand for a product, and then design products to choose different characteristics to meet these needs. Many managers do not do this job easily, or even run away.

The problem is that the customer buys the use and benefits that the product can offer, rather than the nature of the product itself. Business operators consider what components should be selected in the product, how their costs, compatibility, production plans, etc. But what customers care about is not what components are included in the product, but whether the product meets the needs of the customer's work.

Therefore, when the enterprise is conducting market opportunity analysis, it starts with the product benefits that the customer needs recently, thinking about which features or components can provide the product benefits that the customer requires. In brand design decisions, companies are advised to start with features or components to reflect on the benefits that product characteristics can bring to customers.

In the functional combination, many times, not to increase functionality, but to reduce functionality. In person, the function that is lost is not to bring value to the customer, while the function that leaves is can enhance customer value and increase customer stickiness.

In this regard, functional characteristics are not the more the more. Some managers may think they will win low-end markets by lowering prices and providing additional product features. This strategy does not always work.

For example, suppose an enterprise sells two different calculators at the same price, one is a scientific calculator with 36 functional keys, and the other is a standard four-function calculator. The result may be that many customers will choose a simple calculator. The reason is that complex calculators may also imply a cost of use.

Customers must spend a certain amount of time learning how to operate a complex calculator. They also have to worry about pressing the wrong button or in the wrong order. Complex scientific calculators are not popular. Because of the market for some sectors, simple and easy to use itself is the customer's pursuit of product characteristics. A brand with complex functions is not necessarily favored.

Why did the Mercedes-Benz SMRT Fire recently? Some time ago to accompany the family to the Mercedes-Benz 4S shop car, seems to understand some of the road. Mercedes-Benz SMRT is simply a function of the classic: 1, Mercedes-Benz SMRT positioning in Low-carbon green cars, this kind of positioning responds to a lot of environment-friendly ecological people's mentality and goals; 2, ultra-low displacement, energy-saving, less pollution; 3, driving up super simple, only parking, driving, reversing three gears, stop on the brakes even in the lane, Do not step on the accelerator will not go, not to walk the car, four is not occupy space, occupy parking place only half, parking fee is also halved; Five is the volume of small wipe car accident probability is very low ... These five points are enough to capture a large number of large urban consumers. Mercedes-Benz SMRT also began to lay its position in the field of micro-vehicles, statistics show that many plans to buy the Mini, TT finally bought Mercedes-Benz SMRT.

V. Service reduction

Reduced service, in fact, not in the service of the people cut corners, but only through the breakdown of the population consumption patterns and characteristics of the product service portfolio, through the distinction between core services and peripheral services, in reducing costs while improving service quality at the same time to better serve to do fine, but also easier to stick to consumers. Typical cases such as home hotels.

What is the most important for a budget hotel? Maybe every budget hotel has its own answer, but what kind of budget hotel has made the best of his answers? such as home, think that the economy hotels in the reduction of related functions at the same time, need to upgrade is the service, and service in the essence is the details, and the pursuit of the details of the ultimate.

such as home reduction service value-added point of entry is the brand contact point of the relevant details to achieve the ultimate, to do so that consumers know, a use of that Ming, so that consumers in the process of imperceptible stay as a loyal fans, for single shop occupancy rate stable upgrade has laid a solid marketing foundation.

In the hardware of the budget hotel. Location, in order to be able to produce brand differentiation, so that consumers can clearly distinguish such as home and other budget hotels, such as home with a large area of the home to brush bright colors, so that consumers can see themselves far away, so that their success in a pile of budget hotels in the fore; the room's hard fittings, such as the location of the home and the number of sockets fully take into account the ease of use of consumers, note paper with the small pallet to make consumers write more casual, hanging racks of design not only save the cost of room space at the same time also make the consumer can more convenient hanging clothes, a small table lamp on the desk also makes the evening need office staff convenient a lot ......

In the software aspect of the budget hotel. such as home in addition to fully delegate to these store-lengths, the shop-keeper is also playing the role of manager at the same time as the home of the super salesman at the same time as the home brand of the disseminator, such as the home of the store will seize all possible opportunities for potential customers to develop, and through the agreement to make potential customers as a stable source of customers like home Service as another important factor of economy hotel is more and more attention, service is the most important link of all brand contact point, is also the link of human factor most. such as home around the consumer this fundamental point, to optimize the standard to be the breakthrough point, to the characteristics of service as a breakthrough, the pursuit of "0 complaints" to maximize the quality of service, so that the entire single shop all employees involved in this brand marketing project, these brand marketing services have produced a positive brand impact, Online netizens for such as home praise is the best proof, but also produced a positive word-of-mouth dissemination of influence, for such as home brought a huge customer base.

Vi. Cost reduction

To reduce the success, including the two-tier content, one is to reduce the cost of the service while reducing the costs, and the second is to reduce the customer in the consumer purchase experience process hidden costs. With the advent of the new economic era and housing economy, customer experience purchase and consumption costs more and more occupy a considerable proportion.

Cost reduction actually means the 4P theory upgrades to 4C theory.

The core of cost reduction lies in the pursuit of customer satisfaction, we must strive to reduce customer purchase costs, and then pay full attention to the convenience of the customer purchase process, rather than from the enterprise perspective to determine the sales channel strategy.

When the customer buys a commodity, in addition to expend certain funds, but also consumes certain time, the energy and the physical strength, these constitute the customer total cost. Therefore, the total customer cost includes money cost, time cost, spiritual cost and physical cost. As customers buy goods, the total hope that the relevant costs, such as money, time, spirit and physical strength to minimize to maximize their satisfaction, therefore, enterprises must consider the customer to meet the needs of the "customer's total cost". Efforts to reduce the total cost of customer purchase, reducing the cost of commodity and marketing to reduce the price of goods, so as to decrease the cost of the customers, to improve the working efficiency, to reduce the time and expense of customers, to save the time of purchase, to provide the customers with detailed information through various channels, and to provide good after-sale service for the customers. , reduce the consumption of customer spirit and physical strength.

This is why a lot of heavy flyers would rather buy a more expensive airline ticket than China Eastern Airlines and Air China, the Eastern Airlines and Air China are often late, but more importantly, the Southern Airlines can pick up the mobile phone message value machine to get boarding pass, As long as 20-30 minutes in advance to the airport designated location (and do not need to queue) to get a good paper boarding pass can be done, this trick, seemingly simple tactics, but for customers to save how much time cost.

The same free ticket exchange, as early as five years ago, on the internet can be completed in a few minutes, take ID card can be boarded, and Eastern Airlines but need a week in advance to their designated business hall to row half's team to handle the free ticket. As a result, after the merger on the east, many members began to take the eastern points to the air. As a result, Eastern Airlines issued regulations, East Airlines points to go, the upper limit is 3000 points, and the points on the airline can all be poured to the East Airlines membership card up ... This one, not only the eastern airlines began to lose members, the members of the airlines began to lose.

Similar cases have also taken place in the bank, which is known for its innovation. Today's Bank of merchants seems to be premature. Open Network silver to confirm the site, the merchant bank Dot is less, a queue will have to row for a long time, a lot of consumers to abandon the CMB and go; and credit card rising up the CCB, integral redemption has seven or eight ways, the simplest and quickest way is a text message on the fix; for the adjustment of the amount, a telephone can be answered, because CCB has established a set of automatic standardized credit limit adjustment and approval mechanism ... All of this, well done, is based on a cost-reduction embodiment.