Chapter 211: Brand Economics (Part II)

After speaking the easy-to-understand vernacular, Ye Ye immediately introduced some theoretical models of economics.

"This is a demand curve, the abscissa Q represents the quantity of demand, P represents the price of the commodity, C represents the cost of selection, and the cost of choice is a function of brand creditworthiness B, and f represents the quantity of demand Q and the selling price of the commodity P and the cost of choice C."

The original demand curve is a straight line with a negative slope that intersects the X and Y axes on the positive half, and it follows the general economic law that when prices rise, the corresponding demand for goods decreases.

After decades of development, the existing demand curve has shown a richer form of expression, and the demand curve is very different depending on the type of commodity.

For products with low brand recognition, the demand curve still follows the universal law, the more expensive it sells, the less demand there is, and the slope is slightly different.

For example, the retail price of watermelon has skyrocketed on a few days, and consumers will buy more other fruits due to the existence of profit-seeking and disadvantage-avoiding characteristics.

For products with high brand recognition, the demand curve will show a very strange wavy shape.

Ye Yeye showed the sales-price curve of Apple's mobile phone, which is a chart made based on the actual data of previous years, the same model, when the price is at 8000-9000 yuan, the sales volume reaches its peak, and when the price is reduced by 6500 yuan, it is at the trough.

"I wonder what the students think about this chart?" Ye Ye asked the students present a friendly question.

A female student pointed out: "In fact, different price points are in different periods, so it is a little inappropriate to make a simple comparison. ”

Ye Ye Ye Ye said: "Well, generally 8000-9000 yuan is the price at the time of the first launch, and most of the promotions are launched two or three years later, and the time span is a bit large." ”

"At the time of the promotion, there are already newer models on the market to replace them, and consumer demand will be divided into a part, so sales will be affected, this female classmate said very well."

"In addition, the demand for the above chart may not be accurate, for many reasons, the new debut, there will always be scalpers who want to stock up and resell at a high price, which belongs to the bubble demand."

"There's so much to be done by looking at a chart."

According to Chen Bo's mode of thinking, he calculates the slope of each point and the maximum value of the function at most, which is limited to the chart data itself, and will not associate the hidden information behind the data.

This is also the sequelae of the repetition of modular work, only knowing the part that you are responsible for, as for the upstream and downstream business of the connection, you can trace the root cause only after the problem occurs.

"Combined with the actual situation, specific problems should be analyzed in detail, and we should not be immersed in past empiricism."

Wang Xu started a tirade again, this guy never let go of any opportunity to preach.

"When you understand the importance of brand pricing for your products, will you have a question about how to get the most profit by setting the most suitable selling price on the eve of a successful new product development and ready to go to market?"

According to industry practice, if there are existing competing products, then relying on the other party's pricing range to develop a sales strategy is undoubtedly the best choice.

"Or take Mengniu and Yili as an example, familiar students know that the founder of Mengniu is from Yili, in the early dairy market competition, Mengniu has been at a disadvantage, so in 2005, Mengniu took the initiative to launch Trensu for the high-end people."

"Yili's response speed is quite fast, and in 2006 it also launched a similar high-quality milk Jindian, in terms of product pricing, it may be that I feel good, Jindian's 250ml×12 boxes are about 10 yuan more expensive than Trensu."

"The students present thought that Telunsu was delicious and raised their left hand, and Jindian was delicious and raised their right hand." Mr. Ye did an on-site investigation.

Almost all the classmates raised their left hands in unison, and Chen Bo was no exception, in addition to being cheap, Telunsu also had a fuller taste, which was the reason why he preferred Terensu.

"In terms of mid-to-high-end pure milk market share, Telunsu has always been far ahead of Jindian, is it brought by pricing advantages?"

"I've drunk both, and I don't feel it, and it feels like ordinary milk." The most important issue of taste was mentioned.

"This is on the one hand, on the other hand, Telunsu occupies a first-mover advantage in marketing, and firmly occupies the market supply and marketing chain when Jindian has not yet been launched, and consumers have a certain brand recognition of Telunsu, resulting in the loss of the initiative of Jindian."

"In the mid-to-high-end yogurt market, Mengniu launched Chunzhen in 2013, followed by Yili in 2014."

Ye Yeye seems to have a special preference for two dairy companies, and he can give any example.

"The advertising channels and the amount of advertising between the two are comparable, in terms of pricing, this time the pure Zhen 12 pieces are only 52 yuan, while the Anmuxi 10 pieces are 62 yuan, and the gap is bigger than before."

"According to the lessons of Telunsu and Jindian, Chun Zhen should crush An Muxi again this time, but in fact, in 2018, An Muxi's market share reached 37%, exceeding Chun Zhen's 28% share."

"Some students will mention the taste, it is true that the acidity of Ambrosia is suitable for more viscosity, which is more in line with the positioning of yogurt, but I would like to talk about another factor."

"The difference between the two in the choice of advertising strategy has led to a world difference in product conversion rate, and Chun Zhen is taking the sports + business style, trying to create a lofty illusion, but unfortunately it failed to do so."

"On the other hand, An Muxi takes the people-friendly route, using variety shows + IP web dramas as the entry point, covering a larger order of magnitude of the population, and realizing the encirclement of the city by the countryside."

"This leads to a cognitive misunderstanding in marketing, a certain consumer group may only accept products at a price of 100 yuan, but if they are hinted at through appropriate guidance, their psychological upper limit can be increased to 150 yuan."

"On the contrary, the seemingly wealthy urban class is the main force in the discount promotion festival, and the glamour is only a façade, a disguise to whitewash its social value."

Ye Yeye's case reserve is very rich, and his mouth is a certain product, and even the specific year can be clearly stated.

"Luckin Coffee's success is due to this, and it quickly builds a sense of identity among the petty bourgeoisie by flaunting Starbucks."

"Most of the forty or fifty yuan Frappuccino can't afford to consume, but a glass of twenty or thirty yuan Rena ice, it's also excellent to order a cup of invoice circle lyrical accura a week."

"And because of the discount coupons every once in a while, in fact, the cost of their pretending to be forced is only a dozen yuan, which not only keeps their shy money bags, but also maintains their fragile self-esteem, which can be described as killing two birds with one stone."

"Uh...."

Chen Bo also drank Luckin a few times, but the taste was too flattering, so he returned to Medusa's arms.