The trend of consumption recommendation and the integrated marketing case of DHC

From Ogilvy China, chairman of Shanghai I-merge/boondoggle Company, Van den Bergh recently published an online poll on online branding and product referrals from I-merge and Sinomonitor. Some of the data I'm interested in is quoted:

• An average of one months with 8 people on the brand exchange. Of these, 17% of consumers have a monthly brand exchange of more than 10 people.

• Women communicate more than men, but men are more influential in communication.

31% 's interviewees are sure their friends will buy the products they recommend.

26% 's interviewees will persuade friends not to buy a brand product.

• A good brand experience (or a bad brand experience) is more powerful than a positive or negative brand image.

• The vast majority of brand exchanges are face-to-face, 90% through conversation.

• The internet is the most important channel for consumers to learn, the importance of the Internet in new brands and new products, the first time in front of television ads.

• The internet remains the most effective medium when people choose to buy a branded product.

The above data from the marketing perspective reminds me of such a case: DHC Cosmetics Experience Marketing case.

DHC is a Japanese cosmetics brand, it entered the Chinese market time than other European and American brands are much later, and for cosmetics marketing, want to grab a place in a new market, even if a large number of marketing input, may not be able to achieve the goal. Compared to DHC marketing strategy, it should be said that they understand the market, what they do, fully conform to the above data analysis.

I'm more concerned with DHC's experience marketing and integrated marketing. Basically, the above data can be summarized, corresponding to the strategy of DHC.

1. Network Virus Marketing

The internet is the most important channel for consumers to learn, and in new brands and new products, the importance of the Internet is first ranked in front of television commercials.
DHC uses the Advertising Alliance way, will advertise all over the big and small website, because uses the trial strategy, the advertisement click rate is also relatively high, because uses the large area network marketing, its comprehensive marketing cost also relatively reduces, and the marketing effect and the scale is far better than the traditional media.

2. Experience Marketing

A good brand experience (or a bad brand experience) is much more powerful than a positive or negative brand image.
DHC uses the trial experience strategy, the user only needs to fill in the real information and the mailing address, can obtain 4 sets of trial attire. When a consumer tries to DHC a product, it evaluates it, communicates with other potential consumers, and generally communicates positively (the trial is bad and the brand is broken).

3. Word-of-mouth Marketing

31% of the interviewees are sure their friends will buy the products they recommend. 26% of the interviewees will persuade their friends not to buy a brand product.
Consumers ' recommendation or advice to potential consumers can often lead to the purchase decision of potential consumers. The overwhelming advertising campaign, the media has gradually lost the impartial public relations, has let the consumer to the traditional media Advertisement Trust degree drops, the word-of-mouth spreads often becomes the cosmetics consumption most powerful marketing strategy.

4. Member System

Similar to the Bertelsmann Book club model, only by telephone or internet access to DHC free trial, as well as the purchase of DHC products automatically become DHC members, without paying any membership dues and annual dues. DHC members can also receive a DM magazine, to become DHC and members of the transfer of information, two-way communication links. The adoption of membership system greatly enhances the DHC consumers ' sense of belonging, and brings closer the distance between DHC and consumers.

5. Multi-channel Marketing

Network Marketing is a part of DHC Marketing System, of course, the traditional media will still have DHC ads, including a large number of hiring spokesmen and other acts, are in the promotion of brand image, multi-channel marketing promotion, deepen the consumer's brand of DHC, when the opportunity to contact the trial, to promote the purchase may also be greatly increased.

Overall, DHC in recent years to inform development and its marketing strategy is inseparable, or can say DHC better understand the market, know how to use new media for the brand spread. Through traditional media, the image spokesperson promotes the brand image, the brand credibility, is the core key to the new product, the network virus marketing can enlarge the dissemination point, invests 1 points the cost to see perhaps is 10 cent the effect; Through the experience marketing way, faces the consumer, uses the product to change the consumer idea ; Once you can build brand trust, there is a good chance that the DHC will spread within this consumer impact, more people to apply for trial, more people to try to buy, and eventually use DHC's member DM magazine to tightly bind users and brands, and constantly focus on and remind consumers, will naturally lead to more purchase decisions and dissemination of influence.

From the above analysis, the Internet to DHC the biggest promotion has 3 aspects:

1. Reduce marketing costs.

2. A significant increase in the speed of brand ownership of the market.

3. Consumers through the Internet to potential consumers effective word-of-mouth.

From this data and case I think can cause a lot of thinking, on the one hand is the traditional enterprise how to consumer mentality, using the Internet new media tools for effective marketing promotion. On the other hand, the consumer's mentality and consumption of the desire to communicate, itself is a very valuable demand, and then the transformation of business is also very convenient to help the brand cohesion precision users of the application of products, will inevitably be favored by business. Maybe that's what social business should do, just a matter of time.