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How does the new brand market work?
In today's fierce competition, it is not easy for many new brands to enter the market, especially for small and medium-sized enterprises. How does a new brand become a market channel? Let's take brand A as an example to see how the new brand enters the market channel. First, lock in the "small" market and seek "big" development. When brand A entered the shampoo industry, it must have gone through a fierce ideological struggle like many domestic washing and chemical enterprises. It is an indisputable fact that the competition in shampoo industry is fierce. Head & Shoulders, Rejoice, Shu Lei, Feng Ying, Lux, Hao Di, Jacquard Show, Beauty Makeup ... Plus two or three brands can be said to be numerous, so how to enter? Enter which market? In what way? Brand A adopts the market follower strategy to follow up Xi Anrang Sanglecai's drug dandruff market. Analysis: 1, Xi Le Cai, an Zhan Sen, won the professional dandruff shampoo market with differentiated market positioning, successfully opened up this market segment, and there is little risk in following the footsteps of predecessors. 2. At present, there is only one mature brand Le Cai in the specialized market segment of drug dandruff, and there are few competitors in the same market segment, thus avoiding the traditional shampoo market with fierce competition. Although the absolute capacity of market segments is small, the relative capacity is large due to insufficient competition. Enlightenment: Positioning new brands in market segments is a realistic strategy. Although the niche market is small, it has a high market share, which is 100 times stronger than not being based on the mass market. Many new products are not accurately positioned according to their own strength and market conditions before entering the market, which makes it more difficult to enter the market. Common is overconfidence and strong desire for self-realization, which makes many small and medium-sized enterprises overestimate their own strength and vow to catch up and become the leading brand in the market. Talking about what to follow other brands is not "self-mockery", but this determination and face-saving psychology can not impress the leniency of market competitors, but will arouse their unhappiness and strong depression. Secondly, they only pursue broad market space. The products of many small enterprises are not necessarily located in market segments, but think that these small markets have no "money" to do. To be a big market with a market capacity of more than 654.38+000 billion, these markets are huge, but the competitors are stronger and the competition is more intense. No matter how big the cake is, it makes no sense for you to eat it. Conclusion: 1 There are almost no competitors' market segments. 2. Be a challenger or follower of market segments. Second, focus on varieties and enter the market at reasonable prices. Many enterprises like the richness of product lines in order to fully occupy the market. Ten varieties, three or four specifications, add up to thirty or forty products. The general purpose of doing this is to meet the needs of different consumers and achieve wider market coverage. Secondly, show the size and strength of the company to the dealers and share the expensive admission fee again. However, the disadvantages of this method are also very obvious. The more products, the higher the cost of production, transportation and management, which is more unfavorable to the formation of its own superior products. Brand A has only two varieties of dandruff lotion and herbal dandruff lotion, 50 ml and 5 ml, with a total of four products. The price of 50ml of a brand emulsion 29.5 is only cheaper than 50ml of Le Cai 3 1 yuan 1 yuan. Analysis: 1, the lack of products will greatly simplify all aspects of production, circulation and management and save costs; Can concentrate on, facilitate product promotion; Reduce the investment of goods distribution and the financial risk of dealers. 2, the price closely follows Le Cai, which can avoid the impact of low prices on competitors and the suppression of competitors; Maintaining profit margin is convenient for channel operation. Enlightenment: It is often seen that some small and medium-sized brand products are very rich, but none of them have been recognized by the market. Giving consumers more investment and choices does not mean that they can establish a brand and occupy the market. It has been used too much to hit mature brands at low prices to achieve the purpose of entering the market. Can SMEs only make a fuss about low prices? The narrowing of profit space means the narrowing of enterprise's price manipulation space, and we can't just win at low prices when setting product market prices. Conclusion: 1, not too many kinds, highlight one or two items. 2. The price should follow the market, maintain the price system and maintain a reasonable profit. Third, lower the channel threshold. Under normal circumstances, new products will be marketed through various channels such as collecting agency fees, setting the first batch of purchases, and paying down payment. One is to choose powerful dealers, and the other is to quickly absorb funds and then put them into market operation. Although this model has obvious advantages, it is not suitable for all products, especially small brands with less advertising investment. Without advertising investment plan and terminal promotion support, there is naturally no bargaining chip that requires dealers to come up with more funds. However, many small and medium-sized enterprises ignore this point and still stubbornly hope to find the ideal dealer. Resulting in slow development of channels. Brand A has rapidly expanded its sales channels by purchasing 20,000 yuan for the first time, the ex-factory price being lower than the retail price by 30%, and trial sale. Analysis: 1, no agency fee, first purchase of 20,000 yuan, trial sale, etc. to reduce the entry threshold for threshold dealers. 2. Taking 50ml as an example, the price space in 20 yuan between the factory and the retail makes the dealers see huge profits. 3. Channel innovation has entered the hairdressing professional line, broadening the product sales channels and terminal resources. In addition to adopting the OTC fixed channel model in Le Cai, Brand A also introduced its products to many beauty salons. Many people first saw Brand A in a beauty salon, which is not only a good sales channel, but also a direct publicity position for consumers. Enlightenment: the channel construction of small and medium-sized enterprises has always been a difficult problem. Powerful distributors will disdain the new brand, while weak distributors will be turned away by the threshold of agency fee, initial purchase amount and deposit. In addition, the profit margin of small brand products is small, which may not necessarily arouse the interest of dealers. Mature brands have stable shipments, and dealers can make profits according to the volume, while new brands must use sufficient profit space and good market prospects in exchange for dealers to bear the market risks of new products. Conclusion: 1, the first batch of purchase quantity standard is not easy to be too high, and a small number of trial sales are encouraged to drive the market more. 2. Profit is one of the most important advantages of the new brand, and the channel price should have enough profit space to stimulate the dealer's nerves. 3. Don't think too much about the channel standardization of new brands. In order to enter the market to the maximum extent, we should enlarge it through multiple channels and then standardize it slowly. Fourth, adhere to low-input terminal promotion. Many new brands will encounter the same problem. If they don't invest in advertising, the products can't be sold, and the only capital investment is just a drop in the bucket. Brand A chose the propaganda mode of small input, little accumulation and winning by quantity. There are no counters, no big advertisements, the X display stand of the pharmacy, the desktop pop at the checkout counter, the small label of brand A on the medicine cabinet, and the promotional materials of brand A hanging in front of the mirror of the hairdressing salon, trying to make customers satisfied ... The first thing consumers who enter the hairdressing salon see is the X display stand of brand A, and then the clerk will recommend using the emulsion of brand A to eliminate dandruff. A large number of unpaid salesmen have greatly promoted the terminal promotion of brand A. Analysis: 1. The input cost of these terminals is low, but the effect of point-to-point and large-scale publicity can not be ignored. 2. Good customer relations with pharmacies and barbershops make them promoters of their own products. Enlightenment: Small and medium-sized enterprises are most afraid of promoting publicity, which is a bottomless pit. Without strong strength, keeping silent is a taboo. However, if you don't mention it to the dealer, consumers must also know about your product through publicity. Therefore, many enterprises can only treat terminal publicity negatively, or reluctantly invest huge sums of money. Without money, they just can't do TV advertisements or street sign advertisements, which doesn't mean they can't even put up posters. Don't be so small and so big. A poster, a display stand and a banner are better than nothing. In those days, Bao Si just started with a poster and a hanging sign. Not having enough publicity expenses is not an excuse for not doing publicity. From quantitative change to qualitative change, as long as all efforts are carefully accumulated, they will be reflected in market returns. Conclusion: 1 If you don't have enough power, don't invest your only money in big media such as TV and newspapers. 2. Insist on making "small advertisements" and directly put promotional materials in front of consumers. Don't ask for full-time promotion, learn to borrow other people's employees to become your own promoters. V. Looking for strategic cooperation and enhancing competitiveness Although brand A is positioned as a drug dandruff lotion, it will feel unprofessional because it has no medical background. After all, Ann's Janssen is a well-known pharmaceutical company, and the A brand says that it is a drug anti-dandruff lotion, which is obviously lacking in confidence. In order to make up for this shortcoming, Brand A found a well-known enterprise group B among domestic pharmaceutical companies, reached a * * * understanding through many consultations, and formed a strategic alliance to jointly produce a series of dandruff-removing products of Brand A drugs. At this time, brand A is responsible for trademark and sales, and enterprise group B is responsible for product production. Analysis: 1, a brand has better product guarantee. Strengthen your market position from the product quality. 2. Borrowing brand B has expanded the influence of its own brand. 3. Have more energy to engage in marketing promotion. Enlightenment: Small and medium-sized enterprises should concentrate on what they are good at, and have a long-term vision. Everything can't adapt to the cruel competitive reality by relying on their own "efforts". Knowing how to cooperate with other enterprises is an effective means to promote the development and growth of enterprises. Conclusion: 1 If you are looking for a big company to cooperate, don't be afraid that your profits will be shared by others. Whether it is management, technology or joint influence, there will be quite good returns. 2. Focus on brand marketing. R&D and production can be completed by more professional enterprises. The value of brand management is far greater than OEM, so the input-output ratio of this energy is the largest.