1、 What is brand premium?
Some well-known brand consumer goods companies can control the pricing power because they directly face a large number of consumers. However, some manufacturing companies whose orders are made by large customers will have a much weaker durability of their pricing power. and When we talk about pricing power, we are talking about the premium of brands. Only one or two companies in the head of an industry can obtain the premium. What is premium? Premium is the extra profit that an enterprise can obtain above the cost and the average profit rate of the same industry. Ordinary companies will investigate the needs of consumers and then meet them. Outstanding public The company will regard itself as the most advanced consumer, and then eliminate the false and retain the true, strengthen the high-level demand, so as to give the best products to consumers. While enjoying a better product, consumers slowly become immersed in it and wake up their real needs, thus completing consumption upgrading and cognitive upgrading again and again. In professional terms, this is called "user experience". User experience is not to get demand from users, but the creator of the product. He regards himself as a user, creates the product, and uses his own consciousness to explore the most essential demand in the product. At the same time, users can learn to use the product with the least time and difficulty. Brand owners should take the initiative to push 99% of the learning cost of products forward to the design, production and sales links, and the more advanced this link is, the higher the premium rate will be. Therefore, in essence, the premium of brand includes three meanings: 1. Brand premium is the premium that the learning ability of enterprises is higher than that of consumers. If an enterprise's understanding of products is far more than that of consumers, then the enterprise can get rich premium profits. 2. The second meaning of brand premium is that consumers are willing to pay for the time saved. The higher the income of consumers, the more precious the time, the greater the difficulty of learning, and the stronger the willingness to pay for the brand premium. This is why the premium of famous watches, high-end cosmetics and jewelry products is very high. Consumers are unable to learn the latest trends and cultural orientations, so they entrust the task of learning to luxury goods companies Consumers pay for the learning time they save. 3. Product Brand premium is actually a consumer's belief in the company's innovative culture. The so-called belief is the unconditional belief and worship of users to the learning and thinking ability of masters. Learning and thinking are two of the most expensive things in the world. The belief attached to the brand seems expensive, but it actually saves money The lifetime learning cost of consumers. 2、 In the era of digital economy, why do you say that the traffic cost you save is your brand premium?
To answer this question, first understand the relationship between "brand" and "flow". Offline In the era, we always talk about brand, brand and brand. But in the Internet era, overnight, it seems that the traffic is huge, and the brand is not important. But brand and traffic never contradict. They actually affect different stages of consumption decision-making. Touch before purchase, depending on the brand; Touch in purchase, depending on flow; Reach after purchase, depending on the product A brand represents an image and the knowledge consumers have about goods and enterprises. When a certain enterprise is mentioned, people will subconsciously associate it with the products produced by the enterprise. The product is bound to the enterprise, and it has reached you before you need it. What reaches you earlier than the product is: Brand. The value of the brand is to complete the "mental pre-sale" at the pre purchase stage. Traffic is only valuable when consumers have a clear intention to purchase. Therefore, traffic is in the "purchase phase", helping products to "pay queue jump" for the order of reaching consumers in a category. The advantage of brand is locking. But the disadvantage is that it is not accurate. The advantage of traffic is accuracy. But the disadvantage is that there is no accumulation. Therefore, brand is touch before purchase; The flow is the touch of purchase. What about after purchase? What touch to use after purchase? Products. After buying, the only thing that can reach consumers and affect whether consumers will buy again is the product itself. If a product is not well done, no matter how to advertise or buy traffic, it will eventually die. Because in the post purchase stage, their product is a bamboo basket that can't catch the flow. Products can influence consumers' second consumption decision through post purchase touch. But in the Internet era, traffic becomes liquid, and the traffic cost of one platform can be much lower than that of another platform. Therefore, the efficiency of "Touch in Purchase" has become the main topic for everyone to study. At this time, everyone began to scramble for low-priced traffic. Compared with the dividends brought by low price traffic, brand advertising is considered wasteful. With the online and offline access to traffic ecology, traffic depressions are becoming less and less, and traffic costs are becoming more and more expensive. Therefore, we began to re realize that pre-sales touch, that is, the importance of brand. The value of the brand is pre-sale. If the cost of completing pre-sales through brands is lower than the cost of purchasing traffic in categories, you will become a real brand attached to consumers' hearts, rather than the traffic platform. At this time, the traffic cost you save is your brand premium. If the past advertising is more creative than today's advertising, it is more digital A deep understanding of communication. Therefore, we should also think about how to use the pre-sale value of the brand to save traffic costs. It is hoped that more and more Chinese enterprises can move from domestic products to national brands; It can move from being attached to the traffic platform to being attached to consumers.
