In today's fierce market competition, the establishment of brand competitive advantage has become a crucial part for enterprises to stand out in the fierce market competition. Continuously occupying a leading position in brand competition can help enterprises operate steadily in different economic cycles and achieve long-term commercial success. So, how to scientifically build brand competitive advantage? The following four basic methods will be introduced to you, including new product building competitive advantage, channel building competitive advantage, customer service building competitive advantage and brand additional benefits (intangible value) building competitive advantage.
Before building a brand advantage, we need to understand a strategic tool—Xu Zhanhai Matrix, which can fully integrate growth strategy, competitive strategy, and brand potential. According to Xu Zhanhai's matrix product and business combination model, in order to win the competition, enterprises must establish competitive advantages for their brands. The scientific method of building brand competitive advantage can enable enterprises to know what to do and what not to do, concentrate on the main contradiction, avoid detours, and enhance the overall competitiveness of the enterprise. In the current fierce market competition, it is very important for enterprises to master the method of establishing brand competitive advantage. Next, let's delve into the specific ways of building a brand's competitive advantage.
Xu Zhanhai Matrix
1. Establishing a competitive advantage with new products
Microsoft builds competitive advantage with new offering Microsoft Cloud
In 2008, Ray Ozzie announced Windows Azure, which seemed nonsense at the time, but now Azure IaaS, Azure PaaS, and Office 365 are the creations of his great ideas. At that time, Microsoft CEO Steve Ballmer expressed his firm opposition. At that time, up to 80% of Microsoft's revenue relied on Windows and Office. He worried that it would severely squeeze Microsoft's inherent advantages.
The launch of Microsoft Cloud Azure has helped Windows and Office enhance the stickiness of old customers and bring strong growth to enterprises. Surface and X-Box play the same role as iPod to bring youthful vitality to enterprises. When IBM, Dell, Cisco, Oracle and SAP are all struggling with growth, Microsoft's market value is as high as 2 trillion US dollars. Old rivals Oracle, SAP and Adobe were left far behind by Microsoft, and even the total market capitalization of global software companies was once inferior to Microsoft alone.
Audi launches quatro to establish four-wheel drive leading competitive advantage
In 1980, Audi developed the quattro four-wheel drive system and equipped it on a two-door sedan based on the Audi 80 chassis, which was also called quattro. In the same year, Audi unveiled a model equipped with Quattro full-time four-wheel drive technology at the Geneva Motor Show, marking the birth of Quattro, Audi's signature technology.
Most of Audi's U.S. models come standard with all-wheel drive (only the entry-level A4 and A6 have front-wheel drive), while Mercedes-Benz and BMW have all-wheel drive as an option. BMW didn't offer all-wheel drive on its V8-powered cars until the 2010 BMW 7 Series and 2011 BMW 5 Series, while the Audi A8 has had all-wheel drive standard since the '90s.
Audi Quattro full-time four-wheel drive system has undergone six innovations and has become a representative technology of four-wheel drive with quick response, stability and reliability. Audi Quattro can be said to be the core of Audi's production technology, and it is the technical foundation that can be compared with BMW and Mercedes-Benz.
Tencent builds competitive edge with new product WeChat
WeChat (WeChat) is a free application program launched by Tencent on January 21, 2011 to provide instant messaging services for smart terminals. WeChat supports cross-communication operators and cross-operating system platforms to quickly send free (requires a small amount of network traffic) voice text messages, videos, pictures and texts through the network. At the same time, it can also use data shared by streaming media content and social plug-ins based on location "Shake", "Moments", "Public Platform", "Voice Notepad" and other service plug-ins.
As of the second quarter of 2016, WeChat has covered more than 94% of China's smartphones, with 806 million monthly active users, covering more than 200 countries and regions, and more than 20 languages. In addition, the total number of WeChat public accounts of various brands has exceeded 8 million, the number of mobile application docking has exceeded 85,000, advertising revenue has increased to 3.679 billion yuan, and WeChat payment users have reached about 400 million.
Second, the channel to establish a competitive advantage
Jinmailang's "four-in-one" channel establishes a competitive advantage
The four-in-one channel refers to a small boss (business + delivery + tally) equipped with a car and a terminal for contracted sales in one area.
Since 2012, Jinmailang has implemented a new four-in-one management policy in the dealer system of Jinmailang. From the 28 distributors' pilot program in 2012 to the participation of nearly a thousand distributors in 2015, Four in One has been proven to be a new subversive sales management tool for the instant noodle industry and even the entire traditional fast-moving food industry.
In 2015, Jinmailang's "one and a half barrel and one and a half bag" series of instant noodles was officially launched. From September 2015 to March 2020, the sales of "one and a half bag" products excluding tax exceeded 4.46 billion yuan.
In May 2016, Jinmailang Beverage launched a new product - Liang Bai Kai. In 2017, Liangbai opened sales of 250 million yuan; in 2018, sales of 1.25 billion yuan. According to public data, in 2020, Liangbai Kai will become a single product with sales exceeding 2 billion.
In March 2017, Jinmailang launched softened water. The annual sales volume of Jinmailang softened water is about 4 billion.
Relying on the sales channels established by the four-in-one, Jinmailang has continuously launched new products to agents, enriched the compartments of small bosses, occupied the shelves, and established a competitive advantage. receive.
The ability to control channels is the key to the unification of Master Kong's "coverage"
As the leader in the instant noodle industry, Master Kong attaches great importance to the control over channels. After years of intensive cultivation of channels, by 2010, Master Kong already had 6,155 dealers, building a strong sales and channel network.
Master Kong 2014 Annual Report
Master Kong Annual Report 2021
Master Kong has always insisted on developing and expanding its own channel advantages. Compared with Master Kong, Uni-President lacks intensive cultivation of channels, sales are mainly concentrated in large cities and provincial cities, and its marketing network is not perfect.
With the control of channels, Master Kong can quickly cover the categories that competitors have already verified.
In 1998, Green Tea was launched in a unified manner. In 1999, Master Kong launched Master Kong Green Tea, which quickly carried out share coverage.
In 2011, Master Kong’s green tea has taken the lead in the green tea market, accounting for half of the green tea market, with a market share as high as 46.9%.
In 2008, Uni-President launched Laotan Pickled Vegetable Beef Noodles. In 2012, the market sales of pickled vegetable-flavored instant noodles reached 10 billion yuan, accounting for about 23.7% of the market share. 56% and 44%.
3. Customer service builds competitive advantage
NIO Creates Competitive Direction and Establishes Competitive Advantage Through Superior Customer Service Experience
• Create NIO House + NIO Space service to enhance user test drive experience
Starting from potential energy, NIO House is positioned as high-end, and NIO Space is focused on sales. The NIO House of Weilai Automobile is usually opened in the center of the business circle of the first-tier cities. It has functional areas such as model display area, lecture area, library, joint office, and parent-child area, providing value for the user circle and enhancing the brand. NIO Space, on the other hand, focuses on test drives and sales. Compared with NIO House, the construction, rent and marketing costs will be greatly reduced, and it is more cost-effective. NIO House+NIOSpace constitutes NIO's three-dimensional terminal marketing, experience and sales network with clear positioning and distinct layers.
• Build the NIO Power smart energy service system, which improves the user's energy replenishment experience
NIO Power of NIO is a charging solution based on the mobile Internet. It has a wide-ranging network of charging facilities. Relying on NIO Cloud technology, it has built a "rechargeable, interchangeable and upgradeable" energy service system to provide car owners with full-scenario customized power-up service. Home charging piles or household fast charging piles can be installed at home, and supercharging piles, power station replacement and charging car services can be used outside. The energy replenishment system can cover all scenarios, effectively alleviating the energy replenishment anxiety of pure electric car owners.
NIO Power is the world's first smart energy service system, which effectively improves the user's energy replenishment experience.
Full-scenario power-up service. NIO's charging and swapping network continues to be deployed to meet various travel energy supplement needs. There are 938+ NIO swapping stations and 811+ NIO supercharging stations (the data is as of June 5, 2022).
• Build NIO Service + NIO Life to improve after-sales service experience
NIO Service is mainly aimed at improving user experience in various scenarios where users use NIO vehicles. NIO Service provides the first car owner with life-long free warranty, life-long free roadside assistance and life-long free Internet of Vehicles service.
NIO Life mainly focuses on the lifestyle of users other than cars, enhances user stickiness, and builds brand culture. NIO Life brings good design and products into everyone's daily life through more than 500 global designers. Its products cover clothes, food, daily necessities, etc. Through the four concepts of cars, services, digital touchpoints and lifestyles other than cars, improve user experience, form user communities, and build brand soft power.
NIO has created competitive potential through super customer service experience, which has brought a large number of sales orders.
In 2020, Li Bin said in an interview with the media, "Including ES6 and ES8, 69% of orders are currently recommended by old users, which is much higher than the 45% in the fourth quarter of last year. The upper closed loop is an important channel for NIO’s insurance policies in special times. Also because of the epidemic, many old users are staying at home and have more time to help NIO expand its business.”
Haidilao's pioneering customer service builds competitive advantage
Haidilao is a new type of catering service known for its good service attitude. It has established a competitive advantage through service and has developed into the largest hot pot restaurant in China. It is also the restaurant with the highest revenue in China.
Haidilao services are divided into two categories: catering and entertainment. Entertainment includes free manicures, beautiful shoes, hand protection and other services. If you take your children to Haidilao, it is inconvenient to take your children with you during meals. You can also ask the service staff to take care of your children, which is very convenient.
Among them, the more famous ones are the free manicure and hand care services for entertainment, and the free fruits and snacks for catering. After eating in Haidilao, you can ask the waiter to pack your favorite snacks for free, such as melon seeds, crispy rice, etc., and you can also pack some favorite fruits. If you are embarrassed to say it directly, you can suggestively say to the waiter: "This Watermelon is so sweet", etc., they will also offer to pack it for you for free.
Haidilao has changed the traditional standardized and single service, and built a competitive advantage by providing customers with diversified and detailed services. Today, Haidilao can basically be seen in third- and fourth-tier cities. Haidilao has a total of nearly 1,600 stores across the country and is the only domestic catering company in the capital market with a scale exceeding 10 billion yuan.
4. Brand additional benefits (intangible value) build competitive advantage
Lululemon builds competitive advantage by symbolizing healthy lifestyle
Lululemon is a Canadian sports brand. Lululemon does not emphasize the functional attributes of clothing, but addresses the cultural needs of ladies who like yoga and love life. Through the store, yoga-based courses are held every weekend, and local partners are preferred. Yoga instructors will teach on-site, and then select a group of experienced experiencers to drive more consumers to participate. In the process of participating in yoga training, ordinary consumers gradually understand the healthy lifestyle represented by Lululemon advocated by Lululemon. Wearing Lululemon not only represents yoga, but also represents advocating a free and healthy lifestyle.
Lululemon has gradually become a symbol of a healthy lifestyle. This brand additional benefit that meets the cultural needs of a new generation of women is building Lululemon's competitive advantage and at the same time giving the brand more room for expansion. In addition to yoga, swimming, running, training, In addition to clothing in areas such as business commuting, Lululemon has also developed products such as deodorants, lipsticks, moisturizers and leave-in shampoos.
In 2021, Lululemon's market value will be close to 44 billion US dollars, and its sales will soar from 18 million US dollars in 2004 to 4 billion US dollars in 2019, with a compound annual growth rate of more than 50%; the company's stock price has increased by more than 100 times from 2009 to the end of 2020.
Nike reverses brand decline with 'Just Do It'
In the 1970s, Nike created an astonishing sales performance. Since Nike was founded in 1972, after 7 years, it surpassed Adidas, the best-selling sports shoe brand at that time, in 1979. However, in the 1980s, other sports brands brought greater challenges to Nike, especially Reebok. In 1987, Reebok surpassed Nike's annual sales of 900 million US dollars with 1.4 billion US dollars, becoming the global sportswear brand. The number one sneaker brand.
Afterwards, although Nike wanted to restore the decline through various efforts, such as actively expanding the market of Nike products, signing NBN star endorsements, using AirSole air cushion technology to launch Jordan’s exclusive brand, etc., but the marketing strategy that emphasized functionality did not work. Nike’s overall Performance continued to decline.
It wasn't until 1988 that Nike adopted a new humanistic route, replacing the previous product promotion method that focused on technical advantages, and released a series of "Just Do It" advertisements, that the situation of Nike's decline began to reverse.
By telling the stories of "ordinary people" sports, Nike shapes the spirit of ordinary people creating miracles through their persistence and love for sports. For example, it tells about the 80-year-old protagonist Walter Stark who insists on training every day, runs across the Golden Gate Bridge, chats about his running hobby of running 17 miles a day, and finally jumps into the sea to swim. It tells the story of the 42-year-old protagonist Pulisic Welch, who finally won the New York City Marathon through persistent exercise, and also tells the story of a paraplegic playing wheelchair tennis and wheelchair basketball.
Especially after Michael Jordan, who grew up in a middle-class family, was portrayed as an African-American who came out of the slums and performed a legendary experience of the American dream, Nike gradually extended the spirit of persistence and love of sports to football, golf, etc. Sports, track and field and other fields, through the brand additional benefits (intangible value) to build Nike's competitive advantage, and gradually become the world's number one sports brand.
(To be continued, see "Scientific Methods of Building Brand Competitive Advantage (Part 2)")