Why do you want to do mega brand?

Mega brand in the end what is the holy? How to serve the Lord well? This is a minor problem that has plagued me for two years. In fact, a lot of problems, when the forehead with a gun in a hurry to break through, it is difficult to calm and dialectical thinking. So, I just dragged on for two years and didn't have time to think about it.

Until recently, I had an "unknown" feeling that I might start serving the Lord. So have to squeeze time, cobwebs + blind guess, pondering the question--why exactly do mega brand? How do Mega brand?

First of all, what is Mega brand?

Different institutions may be called different Chinese, vulgar translation may be "Big brand, Mega brand, Super brand." Do these words sound particularly sensational?

A while ago, I because of the data, inadvertently broke into the "XX brand Network", curious to browse a lot of "brand master" of the essays, suddenly from the pubic region roared with an unknown feeling, then suddenly dawned--originally, I have been living in a "two Yuan" world Ah! Chinese and Western marketers are probably doing the same thing , language is like in parallel space, especially in two points: basic concepts and strategies.

Difference 1: Basic concepts. such as the connotation of the brand. The first time I saw "corporate brand, product brand, channel brand, service brand, terminal brand" of the parallel division, also feel not aware of the feeling, and then finally make it clear that the original people want to express, really just "I am very powerful" this meaning. How come there are so many brands? Shouldn't the brand be based on the identification of the main business (product or service)? and the so-called services, channels, terminals, business names are only extension. How many parents are there in a son?

Variance 2: Policy. Most of the time, people may say one thing, but Chinese and western languages are different. English is more inclined to accurate description, Chinese more emphasis on scene rendering, so the western textbooks of many brand strategy into the Chinese context, it becomes a murderous world of the world. such as "Cross Boundary".

When discussing the definition of mega brand super brand, it may inadvertently be fanned by the word "cross-border", so I try to be as cautious as possible and objective description. Mega brand is a result of brand expansion, and multi PS multiple brands, refers to a single brand through the vertical (the same category), Horizontal (cross category), or depth (pure price) after the expansion of the Super brand. Luxury brands are mostly super brands.

Second, why is there mega brand?

Single brand expansion into a super brand, there may be two basic driving force:

1. Consumers do have cross-border demand cross-category/cross-property needs.

This is more common in women's consumer groups. Usually, a woman buys a hat, not just to buy a hat, maybe she is to buy a winter tour of the whole body equipment ... While buying a hat, the brain thinks: "What kind of down jacket should I wear for this hat?" Do you have to buy a matching glove and a mask? and snow boots and thick socks to match! Prepare a more spare suit! More warm baby! Warm handbag! Do you want to change the suitcase to a bigger one? Handbags should also be replaced with warm feather ...

In short, a woman needs not a single product, but a complete set of life services total package. This is why there are many super brands in the field of luxury goods. For a person accustomed to decorating himself with a brand, he/she wants to buy more than just a piece of jewelry.

2. Financial and efficiency-driven.

In theory, the root of brand expansion is consumer demand. The problem is, consumer demand is big, is not every need to meet? People have the essence of greed, see there is demand, pockets and silver, it itch, want to expand.

Interestingly, when business is good, want to expand, business is not good when also want to expand, the former is to seek greater market share, the latter may be to save near-death business, ease internal contradictions.

But, even if the expansion is a scientific calculation, but the way to expand in the end is the use of multi-brand or Mega-brand? In general, managers burdened with financial pressure tend to be mega-brand, that is, to use the influence of old brands to reduce the cost of listing new products; At the same time tap the benefits of economies of scale. And the financial pressure of entrepreneurs/rich second-generation, or super confident marketing manager, will be inclined to multi-brands. It's just that everyone's starting point may be different: some are considered for brand development;

Third, how Mega brand generally formed?

There are approximately three basic paths:

1. Vertical expansion: Same category upstream and downstream expansion.

This occurs in resources/raw materials-dependent industries, such as oil, electricity, minerals, agriculture, etc. The main purpose is to control costs and maintain supply chain stability. In the field of consumer goods, there are vertical expansion from the channel to the product, such as Watson, Wal-Mart, Lok Feng have not reconciled to the only channel, desperately develop their own brands, but also from the product to the channel expansion, from the only product development to the franchise store.

2. Horizontal expansion: Expanding across categories.

Horizontal expansion is basically without industry restrictions, as long as there is ambition, resources may be "cross-border." In the area of consumer goods, luxury goods are more likely to expand horizontally than mass-market consumers, like Chanel, Gucci, Dior, which covers almost all areas of consumer goods.

Of course, there are examples of horizontal expansion in the public domain, such as overlord, Yunnan white powder, Master Kang, L ' oreal, October mummy, Wanglaoji, Nestle.

3. Deep expansion: pure price expansion, the same category/product across different price ranges.

This is rarely seen in theory. Probably most experts don't think it's a brand expansion ... After all, there is no change in the category, not to change products, generally known as brand upgrades. In reality, this should be the most common brand expansion, because it means that the brand is expanding the size of the consumer group. Many brands, may not have the guts and resources to horizontal expansion, may not have the resources and energy to vertical expansion, but in their own professional areas of price expansion, but also feel very strong, but often not expected, price expansion is the most deceptive dangerous behavior.

Four, Mega brand will surely succeed?

Success, in effect, depends on the standard--in the short term, expansion may lead to additional sales, but in the long run it may lose a full game; Here, for the time being, according to the rational person of economics, suppose everyone pursues Pareto optimality, pursuing both long-term and short-term success. Unfortunately, we cannot forward to infer "Mega brand How to Succeed?" Because the conditions involved are very complex. But we can try to push back, using the exclusion method, to discuss "how Mega brand can fail?"

Here, rough lists some of the pitfalls that led to mega brand failure:

Misunderstanding one: facing different consumers.

In my industry, from the Almighty luxury brand, to frequent cross-border public beauty brand, the Super brand everywhere. Everyone in a thriving, booming industry, is always not easy to calm. Skin care brand desperately to do make-up, want to occupy the market opportunities; make-up brands are unwilling to miss the mature skin care market; The perfume brand is more unwilling to give up the market which has not been developed in China; even the long ripe category of shampoo and hair is being divided up by many enterprises. However, several sorrows of laughter.

I have been trying to understand, why we and others almost at the same time lofty pride into a blank market, the result is very different? Everyone seems to fancy is a big fat ah, out of the product is similar ah, hit the silver also a lot of ah, why the result is not the same? After two years, I know later, The problem is: we use a brand to surprise different consumers, while others only serve a group of consumers.

Here, there are two basic questions:

1. How do you define "the same group of consumers"?

This is actually a very serious basic question that needs to be discussed in detail in a whole text. To put it simply, in the past, we like to divide consumers from age and income levels, and thus create an incredibly complex consumer model. We are used to pushing fixed products for people of the same age and at the same income level. For example, in the area of skincare products, we are accustomed to 25-year-old + women to push the anti-old product, to the low income people push inexpensive promotional outfit. But in reality, we are very puzzled: why people are not willing to use anti-aging, only willing to fill up the water on the line? Why do not the high income of the girl is willing to spend money to buy luxury goods?

Nowadays, when we divide the consumers, we have to add the "Consumption concept/value" index. Because, on the surface looks like the wind and horses are not the same person, perhaps in the heart of the same person, may be willing to consume the same brand. For example, Korean dramas loyal consumer groups include both girls and women.

2. Why does a brand try not to surprise different consumer groups?

This is going back to the essence of the brand-the brand is, in fact, a tool for consumers to locate themselves and distinguish others. Since the modern commodity economy, people's pursuit of self is becoming more and more fierce, different people Morandia brand, is to define their own in the world of coordinates. Therefore, the power of the brand, in fact, from the modern commodity economy, the awakening of human self-consciousness began to rise. Of course, in a world where there is no need to pursue a self, there is little sound in the brand, such as North Korea.

Because the essence of the brand is the people's positioning media, so if the brand's target group is not focused, then it may hurt a few people, because these waves may also have the illusion of "This brand is like for others to design!" Therefore, luxury goods rarely use a single brand to do price expansion-no matter how complex the consumer division standards, prices are always the most basic indicators. But it does not mean that there is no price difference between brands. In fact, the brand can design a small number of high-priced products as image products, but can not be too much hope for sales, and to try to ensure that the main products in the same price range (of course, not the same industry price range is not the same).

Myth Two: Expansion category/product line has no relevance, or wrong correlation.

Many people know that overlord shampoo into herbal tea, but may not know, Wuliangye has been out of the red bottle of Wuliangye mineral water, Haier also sell medicine. Wrong correlation is not related to the brand more aggressive, will let consumers overwhelmed.

But here the concept of "relevance" is in fact relative, because consumers ' awareness and tolerance of the brand will change over time. For example, Master Kang, the beginning of the introduction of tea drinks, a lot of people are a bit puzzled, it is difficult to associate instant noodles and tea drinks together, and later on, it is estimated that now Kang Master out candy, and no one surprised. But imagine, cola if the instant noodles, if you do Camellia oleifera, you will not feel strange ...

Misunderstanding three: There is no unified, can cross the category/product line brand characteristics equity.

Equity is a concept repeatedly emphasized by big brands, similar to the role of sword, where actions that do not conform to equity are usually on sight. It is only under great business pressure, or the strong desire of a leader, that actions that do not conform to equity will occur.

Equity has a wide range of connotations, including brand personality, differentiated function and brand value. In the area of luxury goods, brand expansion pays more attention to brand value, such as Chanel expansion in any case, always unchanged is "classic". In the area of mass consumer goods, brand expansion pays more attention to the difference function, the Nike expands, always revolves around pure movement;

Myth Four: Use a brand name that lacks ductility.

Brand naming is a learning discipline. Most luxury brands employ names and avoid direct correlations with product functions, in part to facilitate expansion. If you're naming from a feature, you can increase your awareness in the short term, but it also limits your chances of expansion.

In the U.S. makeup industry, "natural/natural" brand name, it is difficult to develop High-tech concepts, or High-tech driven product category, while the main focus on "sensitive skin", it may miss the general public consumers; "White" named, it is difficult to do water and anti-aging market; named after "Water", it is very difficult to do whitening and anti-old market; To "oil" named, how to convince consumers products are refreshing oil-free?

There is also a phenomenon in the market, with the group name (company name) to endorse the brand, such as Unilever in their own every TV ads behind, are tirelessly affix the logo of Unilever and with the external sound. This endorsement, in the end, the role is positive or negative more? Sometimes too obvious endorsement, but will weaken their carefully designed "multi-brand architecture", itself is a paradox.

Misunderstanding Five: internal resources (human, management, culture) not matching.

The longer you work, the more you realize that many times the success or failure of your organization is often not the hard conditions of business, but the soft power of human management and culture. The perfect ideal and plan, if there is no reliable person to implement, is also in vain; if the organizational structure does not encourage people to be reliable, it is also a waste of effort; if the whole corporate culture is submissive, conservative, and the construction of a strong atmosphere, it is estimated that even normal brand operation is difficult. You have to have good soldiers before you can win.

In mathematics, 1+1=2, in real life, may not be equal to 2. Brand expansion is so, the ideal is full, the reality is very bony, need to think carefully before deciding. In the final analysis, the brand is only a tool, not an end. The aim of the organization is not to be a brand of mega brand, or a nail-and-death laurels, which is a sleek, shiny brand. It is to realize the ultimate value of the enterprise-sustainable profit growth by respecting the basic brand rules and rationally integrating the internal resources. Those who are contrary to this fundamental purpose, even if the temptation to lights, but also as far as possible restraint, moderation.