Brand extension is widely used in business operations. While some companies have achieved great success, there are also many cases of failure. Therefore, theoretical research on brand extension has important practical significance. So below is the content related to Xtep’s brand strategy research that I compiled. Welcome to read it.
Xtep’s Brand Strategy Research Part 1
1. Market Analysis
(1) Consumer Analysis
Youth has huge purchasing power consumer groups have great influence on other consumer groups. As a special consumer group, young people have consumer psychological characteristics such as pursuing novelty and fashion, advocating brands and famous brands, highlighting personality and self, and focusing on emotion and intuition.
Youth are a consumer group with huge potential. This is not only because of the large number of young people, but also because of their extensive consumption needs and rich content. International statistics show that young people account for about 1/5 of the total population. At present, the number of young people in our country is nearly 300 million, accounting for about 1/4 of the total population. This shows that young people are a large consumer group
(2) Sales analysis
Xtep is positioned as a fashion sports brand, and the age range of customers is between 13-20 years old. Based on scientific STP planning of market demand, target market, and market positioning, business opportunities in the domestic market are presented.
Over the years, Xtep has not only not separated from sports marketing, but also made extraordinary moves. Over the years, Xtep has actively sponsored large-scale sports events and participated in social welfare activities.
In order to expand its distribution network, Xtep cooperates with the online shopping platform Taobao to retail its product series and has signed contracts with more than 100 online distributors.
(3) Market Outlook
Nowadays, many middle-aged people are also getting closer to health and fashion after work. Middle-aged consumers can influence and drive many people of the same age and class around them, forming a consumer group such as young middle-aged people. They have a spending power that cannot be underestimated. As long as it makes them look young and energetic, they will choose either young brands or mature brands.
In order to expand the market, Xtep must first expand its market positioning. Therefore, it must not only target young people who pursue fashion, but also work hard on middle-aged people who are beginning to pursue high-quality life.
2. Product Analysis
A large-scale sporting goods enterprise whose main business is.
3. Competitive environment analysis
There are very few overseas high-end brands such as Adidas and Nike in the market.
Do regional advertising, and celebrity endorsement products are in the second and third tier markets. A strong guarantee of good sales. Currently, the number of brands adopting entertainment marketing strategies has surged: KAPPA endorsed by Fan Bingbing, Elva Hsiao wearing ANTA products, Hongxing Erke endorsed by Jordan Chan and Zhang Nala, and Jay Chou wearing Del Hui products have begun to compete for consumers' attention in various media.
In order to cope with competition, Xtep signed a framework agreement with Tianyu Media Company
to sign the top 5 happy girls in 2009 as spokespersons and title sponsors of the happy girls national tour. Time will take advantage of the popularity of Happy Girls to increase the popularity of the Xtep brand. Xtep also adopts the strategy of exclusively naming the well-known brand column "Xtep Every Day Up" on Hunan Satellite TV, using well-known domestic variety TV programs to attract the attention of target audiences, and combining them with variety shows to organically inject fashion connotations into target consumers. In the minds of consumers, they form a positive association with the Xtep brand, improving the brand's influence and status in the minds of consumers.
Xtep’s Brand Strategy Research Part 2
After Xtep has adopted scientific market positioning and segmentation, it is still in a strategic stage. The successful realization of this positioning requires customers to perceive the Xtep brand. Separation and differentiation, otherwise, it will only become a form of masturbation, and eventually become a deceitful work.
Through the three major strategies of product differentiation, image differentiation and promotion differentiation, Xtep can stand out from the severely homogeneous products.
1. Product differentiation
Products are the basis for building a brand. Customers usually build brand awareness through product experience and repeated purchases. Xtep is positioned as a fashion sports brand. First of all, It is necessary to break through from the level of product differentiation. When it comes to basketball shoes, the first brand that customers associate with is Nike. When it comes to Adidas, the first brand that customers associate with is football shoes. This is the product differentiation response of professional branding. For fashionable sports products, Xtep is the first company in China to change the exclusive attributes and cold brand image of sports products. According to the wearing characteristics of sports shoes, it exclusively introduces Japanese technology in the industry, giving each pair of shoes a touch of style. The scent of perfume plays the role of deodorizing and deodorizing. On the premise of ensuring the excellent quality of the product, we make bold breakthroughs in product color and design. We launch our own theme concept products every season every year, such as: wind and fire, cold-blooded pride, Blade, Flame, Pioneer and 04 are fun, individual and fashionable. Among them, the first generation Fenghuo shoes set a miracle of sales of 1.2 million pairs of shoes in China. Fashion elements are integrated into product design, which not only brings excellent product quality to customers, but also satisfies consumers' spiritual desire for fashion and personality.
2. Image differentiation
Brand awareness can be established through corporate strength and a large amount of advertising support, but the establishment and shaping of brand personality and brand image takes a long time. achieved. In 1985, when Nike was still a little-known small company, Adidas and Reebok had been leading brands that had dominated the market for many years. Nike and Adidas invented air-cushion technology for sports shoes almost at the same time. Nike found an excellent opportunity to sign a contract with Air Jordan , created a professional image of basketball shoes, surpassing Adidas in one fell swoop to become the leading brand in the professional sporting goods market.
Xtep is the first domestic sporting goods brand to adopt entertainment marketing, which is very consistent with Xtep’s characteristics as a fashionable sports brand. Xtep signed a contract with Emperor's artist Nicholas Tse at a cost of RMB 5 million per year, and Xtep became the brand spokesperson and image ambassador of Xtep. Nicholas Tse has extraordinary appeal among the young generation and is the core leader of Generation X. His rebellion, personality, and fashion are surprisingly similar to the Xtep brand characteristics. Nicholas Tse embodies the Xtep brand characteristics. After Nicholas Tse became the spokesperson, Nicholas Tse's loyal fans across the country lined up to buy Xtep sneaker posters, CDs, and signed albums, which were out of stock several times across the country.
Xtep and Emperor closely cooperate with its mainland China market expansion plan. Every media meeting that Nicholas Tse has in the mainland has Xtep autograph sessions. In terms of in-depth cooperation with spokespersons, Xtep has set up a task force to track and promote. In the past three years, it has carried out massive promotion activities in more than 20 major cities across the country. Xtep's brand image and personality are highly recognized by Xtep's target consumer groups.
In terms of brand image endorsement techniques, Xtep has inadvertently become the originator of media comments to create China's "three-dimensional endorsement" strategy. After Nicholas Tse's success, the youthful, energetic and energetic twins singing group, and the BOY?Z group, which has extraordinary influence on customers under the age of 18, came into Xtep's sight and became Xtep's brand spokesperson. Use the influence of different stars to drive different individual needs of the target market, and ultimately achieve integrated marketing of consumer characteristics in the target market. Like QQ and M-Zone, Xtep uses "Generation X" to summarize the core characteristics of the target market and establish the core values ??of "Generation X" and a sense of brand belonging, using multi-star three-dimensional endorsement methods to continuously expand the members of the Generation X camp and establish a personalized, fashionable and unique brand image and brand personality.
3. Promotion of differentiation
Product homogeneity is a problem in marketing, while promotion homogeneity is the natural enemy of marketing. The former means that we can still utilize our own resources. In order to achieve breakthroughs on the surface, promotion must be differentiated. In addition to its own resources, there are many factors beyond the control of the enterprise.
Xtep’s Brand Strategy Research Part 3
To implement a differentiation strategy, companies must meet the following conditions:
(1) Have strong research and development capabilities , researchers should have a creative vision.
(2) The enterprise has a reputation for leading in product quality or technology.
(3) The enterprise has a long history in this industry or absorbs the skills of other enterprises and becomes its own entity.
(4) Strong marketing capabilities.
(5) There must be strong coordination between functional departments such as research and development, product development and marketing.
(6) Enterprises must have physical facilities that can attract senior researchers, creative talents and highly skilled staff.
2. Benefits and risks of differentiation strategy
Benefits of differentiation strategy:
(1) Establish customers’ awareness and trust of products or services , when the price of a product or service changes, customers will be less sensitive. In this way, the differentiation strategy can form an isolation zone for enterprises in the competition in the same industry and avoid the infringement of competitors.
(2) Customers’ trust and loyalty to trademarks form a strong barrier to industry entry. If a new entrant to the industry competes, it must reverse customers' trust in the original product and overcome the impact of the original product's uniqueness, which increases the difficulty for new entrants to enter the industry.
(3) The high marginal revenue generated by the differentiation strategy enhances the company's bargaining power against suppliers.
(4) Through differentiation strategies, companies make buyers lack comparable product choices and reduce buyers' price sensitivity. On the other hand, through product differentiation, buyers have high switching costs, making them dependent on the enterprise. These can weaken the bargaining power of buyers.
(5) Enterprises build customers' trust in the product through differentiation strategy, making it impossible for substitute products to compete with it in terms of performance.
3. Risks of implementing differentiation strategy:
(1) Enterprises that implement differentiation strategy may have high production costs. Because it requires increased design and research costs, the use of high-end raw materials, etc. If the cost gap between products adopting a differentiation strategy and those of competitors pursuing a cost leadership strategy is too large, buyers may be willing to sacrifice the performance, quality, service and image of differentiated products in pursuit of lower procurement costs.
(2) Buyers have become more sophisticated, and they have lowered their requirements for product or service differentiation.
(3) As the industry in which an enterprise operates enters a mature stage, the advantages of differentiated products are likely to be imitated by competitors, weakening the product's advantages.