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1、2024FRAMEWORKS FOR GROWTH IN CHINAMINI-REPORT#5FRAMEWORKS FOR GROWTHSTRATEGIES FOR BRAND POSITIONING DURING RECESSION,BRAND PLANNING TEMPLATES&CASES.POSITIONING FOR RECESSION IN CHINAGoing into the pandemic,there was a great deal of expectation for a recession.But,the downturn didnt happen at that t

2、ime.In fact,for a wide range of consumer brands(selling physical products),it was a massive boom.At that time,when people were locked down,demand for physical products,was pulled forward during the pandemic.Online gained further ground during this time,leaving physical retail and services,travel rel

3、ated consumption steps behind the trend.With a general re-opening,we are now seeing a pull-back in demand for many of the big winners from the pandemic.Demand has been shifting toward services,entertainment and travel.Offline retail has regained some sales back from online.With recession starting to

4、 bite in China(as in other markets globally),brands will need to take a careful look at positioning,pricing,as well as overall competitive sustainability-as strategies to endure much tighter conditions with consumers.STAGE 1POSITIONING FOR RECESSIONSTAGE 1 There is a down-shift in consumer demand(an

5、d sales volume for brands).Marginal players-with weak positioning and/or financials-may dropout of the market,together with a wave of consolidation(M&A).Brands must assess/implement:-Impact of downturn on category -Risk assessment;burn rate,CAC vs LTV-Top-of-funnel vs Bottom-of-funnel evaluation-Adj

6、ust(cut)marketing spend STAGE 2 A weak market with changing,uncertain conditions,defined by general malaise and pockets of growth/optimism(with niche consumer groups relatively better off).Brands must assess/implement:-Strong loyalty(repeat-purchase)incentives-Understand/respond to customer sentimen

7、t/motives -Emotionally powered creative ads and strong sales incentives -Projections on return to trend line STAGE 3 A slow,uncertain market recovery.Select regions(countries)recovering more quickly than others.Brands must assess/implement:-Quickly increase advertising spending to capture market sha

8、re-Marketing spend in sync(and slightly above)category trend linesDemand Pocket Below Trend SalesDown-Shift Demand to remain lower for expended periodGrowth Trend Ave.Growth/DemandDemand Pulled Forward Covid Spending Boom Recovery Uncertain,patchy recovery generally below previous trendCONSUMER PROD

9、UCTS DEMAND GROWTH Aggregate consumer spending on retail consumer productsSTAGE 2STAGE 3WHAT APPROACH DO DIFFERENT TYPES OF BRANDS NEED TO TAKE FOR GROWTH.BRANDS NEED TO FOCUS-IN ON BUILDING WINNING FORMULAS BASED ON PROFILE AND POSITIONING.HIGH QUALITYBASIC QUALITYLOW PRICEHIGH PRICEGREAT PRODUCT,L

10、OW PRICEVALUELUXURY&PREMIUM BRANDSLEADERSFRAGILE BRANDSASPIRANTSDISPOSABLE,LOW IMPACTDISCOUNTDURING RECESSION HAVING A CLEAR,DEFENDABLE POSITION IS CRITICALBrand-China PositioningAspirant brands are in a sort of no-mans-land,still trying to figure out a clear positioning.They are predominantly forei

11、gn brands,with pricing mismatched to value.Brand-China PositioningThis space has traditionally been the domain of foreign brands.Chinese brands are joining the ranks,especially in areas where technology can be applied to create superior value.Brand-China PositioningThis is the area where Chinese bra

12、nds really dominate.Chinese brands have dialed in a quality-value proposition where pricing is just above discount,with quality getting close to leaders.Brand-China PositioningChinese producers dominate here,with cheap products aimed at turning over quick,low-friction sales.As the economy tightens u

13、p,OEM players will race to the bottom to match consumer budgets.PRODUCTPRODUCTFewer people can afford these products.Buyers expect the brand to continuously add value(in product quality and prestige).As a mark of prestige,demand for Veblen products increases as prices increase.Almost all consumers c

14、an afford these products.For middle class and higher,the value equation is very strong.As long as products are accessible,value products have a near infinite set of customers.Discount products have two buyer groups;(1)less affluent buyers who need a job done,and(2)low-involvement customers who have

15、a lite/marginal interest in the product category.Both customers would ultimately prefer a better quality option.This is a risky place for brands to be positioned,as they are selling the promise of a better outcome(than discount)at a price which may not be warranted.Leader brands must continue to ass

16、ert leadership position,re-affirming their place as top choice in categories,while upgrading value to key customers.Value brands need to re-affirm value,while edging toward taking leadership positions-and must avoid falling into discounting dilemmas.Discount brands in crowded categories may be overw

17、helmed in race to bottom,forcing many out of the race,unless they improve value.In a downturn,Aspirants will be tempted to pivot toward discounting.To stay competitive,these brands need to refine positioning quickly.LEADER BRAND MODEL FOR GROWTHPRICEBRANDPROMOTIONSADVERTISINGQUALITYObjective Quality

18、+Emotional ValueTOP QUALITY&PSYCHIC VALUEPRICE MAXIMIZATIONBUILD MYSTIQUEVVIP REWARDS ONLYBRAND ACTIVITIESBrand Contribution to Value is HighNo Discounts,VIP Loyalty ProgramsBrand Image AdsLeader Brand ProfileDiscount Brand ProfileLeader Brand ProfileLuxury,together with category leaders and premium

19、 brands,have pricing power.Resulting high margins fuel future product innovation and brand equity enhancements.Loyalty(keeping customers happy),together with brand image maintenance are the key goals of luxury and premium players.Brands in this position should focus on generational tiers and strateg

20、ies to support trading-up.For instance,Gen-X in China are most likely to shift to premium products,and should therefore be a focus for leader brands in China.Think:LV,Lululemon,AppleFocus Area:Loyalty,Engagement and Brand Equity Maintenance.Market Profile:Tier 1 and Tier 2 Cities,together with afflu

21、ent pockets across all tiers.LEADERS&LUXURY BRANDSPricing Exceeds QualityDISCOUNT BRAND MODEL FOR GROWTHPRICEBRANDPROMOTIONSADVERTISINGQUALITYProduct That Gets The Job DonePriced to Sell With Little Consideration MINIMUM VIABLE PRODUCTPRICED FOR EASY DECISIONLITTLE-TO-NO BRANDINGREGULAR DISCOUNTSBOT

22、TOM-OF-FUNNEL ONLYMinimal Investment into BrandAds Organized Around Price PromotionsConstrained by Margin to Performance”AdsDiscount Brand ProfileDiscount Brand ProfileThis is not a good place to be for long.Margins in this positioning are too narrow to improve product quality and level-up the brand

23、.Ultimately,there are limits to growth with a pure discount model.While the need for product quality improvement is inevitable,discount brands can find short-term gains with a promotions strategy.Discount brands should focus on targeting lower tier markets,where they can capture larger marketshare w

24、hile not pushing up against more premium expectations from mature,affluent customers.If expectations can be well managed,discount brands may also find strong opportunities with youth segments.Think:Walmart,Taobao,TemuFocus Area:Promotions(incentives/discounts),together with low-cost distributionMark

25、et Profile:Less affluent markets,lower tier cities and lower income earners across all tiers.DISCOUNT BRANDSLeader Brand ProfileVALUE BRAND MODEL FOR GROWTHPRICEBRANDPROMOTIONSADVERTISINGQUALITYProduct Quality 80%+of Premium BrandsPrice/Value Makes for Easy Upgrade DecisionUTILITY&VALUEJUST ABOVE DI

26、SCOUNTSIMPLE,CLEANREWARDS FOR FOLLOWERSPERFORMANCE ONLYMinimal Branding(Blank Canvas for Customers)Promotions Limited to Rewarding Customers.Maximize bottom-of-funnel ads.Minimal brand ads.Discount Brand ProfileValue Brand ProfileA successful value brand model is organized around offering products w

27、hich are 80-90%the quality of top players in category,with prices which fall closer to discount players.With this model,brands can afford to invest much less into branding and promotions.But,given the strong value equation,there is less need to do promotions,as sales conversion rates are strong.And,

28、as long as the company can maintain healthy sales margins,all efforts should go towards scaling through acquisition ads and/or retail expansion.Income targeting is key-with people graduating into middle class being prime.Think:Uniqlo,XiaomiFocus Area:Advertising and Accessibility(Retail and Ecommerc

29、e)Market Profile:Middle class markets(Tier 1,New Tier 1 and Selected Tier 2 cities)VALUE BRANDSLeader Brand ProfileASPIRANT BRAND MODEL FOR GROWTHPRICEBRANDPROMOTIONSADVERTISINGQUALITYPurpose Built For a Customer TypePricing Just Above Quality PositioningAVERAGE QUALITY PRODUCTPRICED TO COMPETETAREG

30、ETED TO SEGMENTSEASONAL SALES AND PROMOSFULL-FUNNEL ADS NEEDEDBranding Targeted Toward Core SegmentPromotions To Motivate Marginal CustomersMust Do Both Brand&Performance AdsDiscount Brand ProfileAspirant Brand ProfileAspirant brands sit in a very precarious position,with average quality products an

31、d higher prices,offering poor value to average consumers.Aspirant brands must work toward becoming more distinct and focused-with products that are highly targeted to specific customer segments.Product design and brand messaging must move in unison toward this target customer group.In this way,Aspir

32、ant brands must seek to own a customer/culture and should therefore be targeting most narrowly-by region(city cluster),together with income and generational niches.Think:Reebok,American EagleFocus Area:Product design,brand messaging,content and cultureand promotions.Market Profile:Mature markets,wit

33、h higher numbers of customer sub-cultures/cohorts.ASPIRANT BRANDSLeader Brand ProfilePROGRESSION OF TYPICAL CHINESE CONSUMER CHOICESDISCOUNTLUXURYASPIRANT-20-20102000-2005VALUE(Leaders)Luxury sales being driven by small share of total consumer(investor)set.Discount growin

34、g as the economy tightens up.But from a brand point of view this will become a crowded space.Value as a segment is moving to dominate as people want utility above all else.Aspirant brands(esp.International players)dont have good value proposition locked in.Brands that are forgettable or fungible wil

35、l find themselves in a sort of no-mans land.The following chart illustrates the relative weighting of consumer choices in China-the balance of purchases between discount,value,aspirant and leader/luxury brands over the course of the last 20+years.-for a typical consumer in top-tier market.In the ear

36、ly 00s discount ruled for the majority of purchase decisions,with a reserve for luxury brands that were marks of status and success.From 2000 to 2020(Covid),luxury,value and aspirant brands all enjoyed considerable gains,as discount receded(as a share of total purchase portfolio).Covid and the subse

37、quent economic downturn have resulted in discount choices moving forward again,luxury moving sideways and value increasing.Aspirant brands(who offer neither good value,nor good status/story),will be under pressure.MAINTAINING A KEEN UNDERSTANDING OF CUSTOMER SENTIMENT IS KEY KEEPING CUSTOMERS CLOSE,

38、EXTENDING LTV AND LOYALTY ARE CRITICAL ADJUSTING MARKETING TO A CHANGING ECONOMYCategory Spend(Up)Competitor Count (Falling)Category Spend(Down)Competitor Count (Rising)ExpansionNeutralContractionMessaging:Unique Features of Product and BrandIn context of more competitors&greater consumer choice,bra

39、nds seek to defend subtle points of differentiation.Limit Discounts&Promotions Maintain brand equity premiums in the face of rising competition.Economy SlowingEconomy GrowingPricing&Promotions to Provide Greater ValueIn context of decreased competitor numbers,ensure that marketshare is preserved(or

40、expanded),while limiting damage to margins.Messaging:Category as a Priority in Consumer PortfolioIn downturns,consumers reshuffle their spending portfolios.Brands must work to keep the category as a high priority(and not having consumers substitute with lower cost options/categories).One of the ques

41、tions that has come up in discussions about re-adjusting approach during slowdowns has been whether the only move for brands is to cut prices.Before resorting to discounts,brands need to focus on messaging that re-focuses customer attention on how the product and category should continue to be a pri

42、ority for consumers.All consumers have a kind of portfolio for spending,where they allocate spending up-and-down,per category,based on whats really important for them.Based on the relative priorities of consumers,some products are viewed as luxuries(and get privileged spend levels),and other product

43、 categories are quickly down-graded.One important goal of marketing during a downturn should be to make sure that your products are worth paying a premium for.and that the category remains as a luxury in the spend portfolio.Messaging and positioning should typically precede pricing adjustments.Leade

44、r BrandsAspirant BrandsValue BrandsLeader BrandsProducts/PricingPositioning/PromotionsPlaceNEGATIVE-Smaller,cheaper formats-Lower cost brand extensions-Private labels-Free/low cost“moments of joy”courtesy of the brand-Trade-In&Financing Programs-Promote monthly payment plans -Promote exceptional dea

45、ls and low-cost financing-Offer DIY options-Emphasize your product/service as the one that gets the job done(no fear of wasting budget)-Concentrate“value”messaging into volume and lower cost channels such as PINDUODUO-Evaluate regional disparity in customer sentimentNEUTRAL-Loyalty and points system

46、 to incentivize loyalty/retention-Bonus packs to encourage purchase-Promote savings in buying now(dont postpone and miss out)-Promote after-sales service,together with generous returns policy -Emphasize dependability-Use core(mass)channels demonstrating general empathy,signaling value(minus the stee

47、p discounts)-Extend brand into other regions(countries)where possible to tap into more neutral-positive customer cohortsPOSITIVE-Maintain higher-priced options into appropriate channels-Enable discrete purchasing options-Offer Trade-Up Programs-Live now,enjoy now messaging-Advertise products as trea

48、ts/rewards and things your deserve-Demonstrate superior quality -Private events,experiences-Concentrate“spendy”messaging DTC,based on VIP customer data/insights-Focus on cities/locations with higher“positive”sentiment valuesCONSUMER MINDSETMARKETING DURING RECESSIONAccommodate a Range of Customer Mi

49、ndsets.Wider range of channels and media,with some channels targeting full-spenders,others aimed at cost-savers.Create discrete offers per channel,per customer type.Develop unique promotions,programs and products to suit a wider range of spending profiles.Freitag has a program called“Just SWAP”which

50、 allows customers to post listings for products and make offers with the community to swap Freitag bags.In China Freitag runs the program in the form of private events at the brands showroom x event space.MARKETING DURING RECESSIONImproving LTV.Freitags“Just SWAP”allows product owners to post listin

51、gs for current bags-through a community portal-and make offers to swap bags with other people.When the shine wears off,better to have customers swapping Freitag bags than shopping for other brands.In a down market,LTV and marketshare can be important KPIs.And this year they started the rental progra

52、mme by social media engagement to register for bag rental.Lululemons trade-in program,“Like New”allows customers to sell-back products directly to the company.In turn,Lululemon,re-sells the“lightly used”products directly on its website.The re-sold products are labeled by Lululemon with a“Like New”la

53、bel to demonstrate authenticity.In addition to repeat purchase goals,the hope is that the“Like New”program will also help the brand tap into a younger,first-time buyer-getting them on the buying cycle.MARKETING DURING RECESSIONMore Accessible.The“Like New”trade-in program:is useful in;(a)prompting c

54、urrent customers to trade-up and repeat purchase,while(b)widening the customer base to younger,less affluent groups,by offering lower cost product options.This program is well designed for customers with a neutral-to-negative outlook,as it facilitates brand participation at a lower cost.The promotio

55、n of selected products from the Lego Outlet store on Pinduoduo,created a strong result with customer participation.The promotion(sponsored by Pinduoduo to raise visibility for its engagement with top brands)had 700+people joining the group buy for a Lego“Iron Man”set,with discounts taking the produc

56、t price from RMB260 down to RMB214.MARKETING DURING RECESSIONOffering Better Deals.Lego has an outlet shop on Pinduoduo,offering discounts for select products-as many brands do.Additionally,Pinduoduo has worked with Lego on a special promotion,offering additional discounts on selected items.As budge

57、ts become tighter,look for a continued rotation to budget-friendlier channels.There has been an explosion in the number of interest-groups and hobbies embraced by customers in China,since Covid.RED has positioned itself to play a key role in fostering these interest groups and communities.Featured h

58、ere is a coffee lovers event in Shanghai,where coffee and non-coffee brands participated(eg.Tempo brand tissues).MARKETING DURING RECESSIONActivity X Commerce.RED has become a focal point and organizer for the rise in interest-groups,hobbies and activities.RED who organizes offline events(around int

59、erests of its audiences),offers unique opportunities for brands to participate,build presence and SELL products at these events.They also work directly with brands to build events which connect brands with activities(eg.Nike x Running).“Think of a recession as a sharp curve on an auto racetrack the

60、best place to pass competitors,but requiring more skill than straightaways.The best drivers apply the brakes just ahead of the curve(they take out excess costs),turn hard toward the apex of the curve(identify the short list of projects that will form the next business model),and accelerate hard out

61、of the curve(spend and hire before markets have rebounded).”Bain 2019;Beyond the Downturn:“Recession Strategies to Take the Lead”SHARE OF VOICESHARE OF MARKETMARKETING DURING RECESSIONINCREASE MARKET SHARE Large marketing consultancies generally advise for maintaining(or increasing)marketing budgets

62、 during recessions.Studies from past recessions(in 1990,2000 and 2008)often show that brands who keep marketing budgets higher,can make market share gains.SOM gains can indeed be made during recession,for brands willing to maintain higher marketing investments.However,SOM gains are much easier for b

63、rands already in leadership position.Small SOM brands have to dramatically outspend competitors for SOM to make SOM gains.And,if the market is shrinking,those SOM gains likely wont matter as much as maintaining profits.Understanding the depth of sales decline and likely duration of the recession is

64、imperative.In a long,deep recession,it would be far better to cut spending quickly and deeply at the outset,and then,when there are signs of rebound,for brands to rapidly increase spend.During a downturn itself,impact is whats most important.The general rule in forecasting market share growth and bu

65、dgeting has been that Share of Voice(SOV)leads Share of Market(SOM)and when brands generate Excess Share of Voice”(ESOV)they are able to increase marketshare over competitors.The average expectation is that consumer brands who maintain 10%ESOV,will increase marketshare(SOM)by 0.6%per annum.Research

66、from WPP(1990)showed that increasing advertising budgets during a recession accelerated those gains.In the WPP study,brands that increased budgets saw increases of 0.5%-0.9%.Source:WPP Groups Center for Research and Development,A.Biel and S.King,1990EXCESS SHARE OF VOICE EASIER TO ACHIEVE DURING REC

67、ESSION2%4%6%8%10%12%0%2%4%6%8%10%12%SOV SOM:Brands tend to growTracking data and performance of over 5,000 brands in China and Globally,Totem has developed its“Brand Growth Framework”as a template for brand growth.It provides key strategies needed by start-up brands to quickly become category leader

68、s.And,at the same time,provides tactics for established brands to defend leadership positions,with renewed momentum.When set against the China marketing landscape,the“growth framework”reveals that China marketers tend to be strong on operational capabilities(eg.Omni-channel and virtualizing experien

69、ces),but still weak in areas of emotional appeal(eg.“Brand Bravery”and“Distinctiveness”).While marketers in China have a strong bias towards“performance”tactics,the channels themselves have not yet provided brands with reliable,scalable conversion solutions.For instance,globally,with Google/Facebook

70、,brands have tried-and-true CAC calculations from PPC ads.In China,(apart from TMall)there is no solution that comes close to providing reliable CAC metrics.As a result,few brands have yet implemented KPIs such as CAC/LTV.TOTEMS BRAND GROWTH FRAMEWORKBrand“Bravery”Own Category/Culture1-2-1 at Scale(

71、CRM)Advocacy&Trust New Media MindsetVirtualizing ExperiencesTop-DownMASS MEDIA(CPM Focused)Bottom-UpTACTICAL MEDIA(CAC Focused)PervasivenessSocial Media EngagementDistinctivenessOmni-ChannelBRAND GROWTH FRAMEWORKNEW MEDIA MINDSETBRAND“BRAVERY”Brave brands have a purpose-and resolve to take a stand.T

72、hey venture big gains with bold,compelling campaigns.Investing into underpriced platforms ahead of the curve.Well timed investments can earn brands big rewards.OWN CATEGORY/CULTUREPERVASIVENESS/PENETRATIONWhen brands become synonymous with a culture and become intertwined with it at every conceivabl

73、e level.Sheer power of presence.Pervasiveness/penetration underpins a large share of market-scale for brands.DISTINCTIVENESSOMNI-CHANNELHow well a brand stands out against the crowd,or focuses in on a particular niche.What makes them memorable.A full array of channels(offline and online)ensures that

74、 a brand is accessible at all times for customers.ADVOCACY&TRUST FOCUSEDVIRTUALIZING EXPERIENCESCreating quintessential brand experiences via new technologies(VR/AR,livestream,haptics and more).A healthy relationship with customers-brand delivers on its promises and makes things right for its custom

75、ers.1-2-1 AT SCALE(CRM)SOCIAL MEDIA ENGAGEMENTSystems to communicate with individuals and segments at scale,while keeping a personal touch.Social content which is highly responsive,conversational and focused on authenticity and reciprocity with audiences.PRODUCT SUPERIORITY ABOVE ALLBRAND GROWTH TIE

76、RSBottom-UpTACTICAL MEDIA(CAC Focused)Top-DownMASS MEDIA(CPMFocused)STARTUPSCALINGGROWTHMASSRMB 5-10MRMB 10-100MRMB 100-500M+PERVASIVENESS/PENETRATIONOMNI-CHANNELOWN CATEGORY/CULTUREADVOCACY&TRUST FOCUSEDBRAND “BRAVERY”VIRTUALIZING EXPERIENCESNEW MEDIA MINDSET1-2-1 AT SCALE(CRM)DISTINCTIVENESSSOCIAL

77、 MEDIA ENGAGEMENT75%50%Cost of Revenue Sales/Marketing Ratio15%5%50%25%What share of revenue should a brand spend on marketing,at each stage of growth?At each new tier,brand equity provides a lift to sales performance.For start-up brands,its not uncommon to have Cost of Revenue ratios at 75%in very

78、early stages of growth.By comparison,top-tier brands may spend as little as 5%of sales(rev.)on marketing.Amplification effects from brand equity can be massive for leading companies,allowing for much lower ratios.Competitive markets like China require brands to spend a large share of revenue on mark

79、eting,for much longer periods of time.50%25%Fromto.BRAND GROWTH TIERSBottom-UpTACTICAL MEDIA(CAC Focused)Top-DownMASS MEDIA(CPMFocused)STARTUPSCALINGGROWTHMASSPERVASIVENESS/PENETRATIONOMNI-CHANNELOWN CATEGORY/CULTUREADVOCACY&TRUST FOCUSEDBRAND “BRAVERY”VIRTUALIZING EXPERIENCESNEW MEDIA MINDSET1-2-1

80、AT SCALE(CRM)DISTINCTIVENESSSOCIAL MEDIA ENGAGEMENTLong-term brand liftShort-term sales liftBRAND BUILDINGSALES ACTIVATIONWhats the appropriate split between brand and performance marketing spend?Start-up brands can ride performance marketing efforts through to a first plateau in growth.During this

81、stage,a bias of 90%toward“performance”(bottom of funnel)may be effective.Following this initial growth spurt,brands must flip-the-switch and increase brand building(top-of-funnel)budgets.Research from Binet&Field has been instructive(they call for an average split of 60:40 in favor of brand investme

82、nt).Ratios of 70:30 in favor of brand for incumbents looking to re-ignite penetration.RMB 5-10MRMB 10-100MRMB 100-500M+10%90%70%30%60%40%60%40%BRANDSALESSTRATEGIES&CASE STUDIESFRAMEWORK IN ACTIONBrand“Bravery”Own Category/Culture1-2-1 at Scale(CRM)Advocacy&Trust New Media MindsetVirtualizing Experie

83、ncesTop-DownMASS MEDIA(CPM Focused)Bottom-UpTACTICAL MEDIA(CAC Focused)PervasivenessSocial Media EngagementDistinctivenessOmni-ChannelBRAND GROWTH FRAMEWORKTHESE FUEL NEW CUSTOMER GROWTHNEW MEDIA MINDSETBRAND“BRAVERY”Brave brands have a purpose-and resolve to take a stand.They venture big gains with

84、 bold,compelling campaigns.Investing into underpriced platforms ahead of the curve.Well timed investments can earn brands big rewards.OWN CATEGORY/CULTUREPERVASIVENESS/PENETRATIONWhen brands become synonymous with a culture and become intertwined with it at every conceivable level.Sheer power of pre

85、sence.Pervasiveness/penetration underpins a large share of market-scale for brands.DISTINCTIVENESSHow well a brand stands out against the crowd,or focuses in on a particular niche.What makes them memorable.CHARACTERISTICSSTRATEGIES&CASE STUDIES39 year-old,traditional Chinese brand Bee&Flower plays h

86、eavily on nostalgia to reconnect with both older and younger audiences-leveraging a mix of down-to-earth messaging and social buzz(live-streaming).This example highlights the potential for increased interplay between generations,where brands can take a core identity and create messaging which connec

87、ts in distinct ways with various generational tiers.FRAMEWORK IN ACTIONBEE&FLOWER CREATES BUZZ WITH A NEW GENERATIONThe experience of Bee&Flower goes to show that the value of a brand goes beyond a logo and a package design,and is in fact,the sum of the cultural memory it creates.In the case of Bee&

88、Flower,they have stumbled into a marketing un-lock,amplifying the story of them as a cultural significant but humble brand.39 year old,legacy brand Bee&Flower has sprung back into view,over the past year.The brand created a buzz with younger audiences,thanks to its honest and humorous approach to li

89、vestream engagement.Amidst rumors that the brand may disappear,reps from Bee&Flower explained in earnestly that the brand was in fact doing well but has chosen to remain humble and affordable-while other brands have been taking advantage of consumers with overly high prices.The livestreams from Bee&

90、Flowers(senior)spokesperson were met with enthusiasm on Douyin,where the video ranked number one on the platform,with nearly 10 million views.The engagement also stimulated a flurry of discussions and user-generated creations in support of the much loved brand.DISTINCTIVE-NESSFRAMEWORK IN ACTIONBYD

91、CALLS ON OTHER CHINESE AUTOS TO RALLY BEHIND THEM BYD recently ran a campaign titled;“Together,we are Chinese Auto”that paid tribute to the entire Chinese automotive industry.The nationalistic campaign celebrated the efforts of 13 major Chinese auto brands over the span of the last 70 years-and call

92、ed on its compatriot brands to rise to the global challenge,and out-compete traditional brands from US,EU,Japan.The campaign celebrates the industry at-large,while positioning BYD as the leader of the pack.Its a bold move by Chinas national leader,allowing BYD to step more fully into the spotlight a

93、s a national flag-bearer.For patriotic Chinese consumers BYD is the brand to buy;help China globally by purchasing BYD at home.Laying claim to a category takes leadership,doing hard things(and declaring your intent to achieve big goals)-and sometimes imposing your position on competitors(heres looki

94、ng at Great Wall).The TVC at the centre of the campaign celebrates the key milestones in the growth of Chinas auto industry-acknowledging contributions of 13 key brands-while rallying the collective group to step up to the global call.The campaign was mostly applauded by audiences and the other auto

95、 firms.BYD stands as a true global leader hailing from China.Earlier in 2023,it became the first brand globally to sell 5 million electric vehicles(EVs),leading global icons like Tesla in sales volume.The campaign“Together we are Chinese Auto”is a celebration of BYDs five million units milestone,whi

96、le announcing its larger global ambitions.OWN CATEGORYFRAMEWORK IN ACTIONA FINE BOTTLE OF 1982 VINTAGE SPRITE?The 1982 vintage of Lafite wine is legendary in China.Rumors were that there was more 1982 Lafite sold in China than was ever produced.It has near mythical status in Chinas world of luxury w

97、ine.With its latest campaign,Sprite has made a bold play to link its image to the world of luxury wine-and entertain younger consumers with a sense of playful irony-with limited edition 1982 vintage bottles of Sprite.Its a bit unclear what the underlying goals of this campaign were but Sprite wins m

98、ajor kudos for its bravery and sense of fun.Brands who are distinct and have a clear understanding for their audience goals should take risks,scoring points for being memorable.While connoisseurs arent going to be swapping Sprite for Lafite 82,younger consumers may very well play with the ideas of s

99、oda stepping into the world of prestige(serving up limited edition Sprite 82)at a get-together.The campaign was supported by a 360 marketing effort,including;TVCs,pop-up stores,live-streaming,influencers and OOH.The pop-up shops had the look and feel of a luxury tasting room.Actor Wang YaoQing prese

100、nted a livestream on Douyin,with vintage tasting and sales of the limited“82 vintage Sprite.”Sprite entered the Chinese market in the 1980s,so does in fact have a degree of legacy in China-which it is leaning into with this campaign.Sprite is facing pressures from;(1)changing tastes among younger co

101、nsumers,for no-sugar,flavored waters,and(2)from local competitors(eg.Yuanqi Forest,Beibingyang).With this as a backdrop,the goal may be to demonstrate legacy(and being up-market)while being full-flavored.BRAND BRAVERYFRAMEWORK IN ACTIONCoca-Colas newest product,the Y3000,features an AI-powered image

102、 generation mechanism in its packaging design.The design incorporates layers and renderings of thematic blues and reds to create a futuristic look and feel.COCA-COLA AI IMAGINES LIFE IN THE YEAR 3000Coca-Cola has always been at the forefront when it comes to using technology to enhance its brand.The

103、 brands new AI-enabled Y3000 activation asked consumers to imagine life in the year 3000,and the limited edition campaign is a great example of the kind of immersive and interactive experience Coca-Cola aims to create for customers to keep them engaged.For the China market,Coca-Cola partnered with X

104、iaodu to provide consumers with an AI painting experience based on the audio,text,and image recognition to create new artwork.Both the flavour and the futuristic packaging were also created with a combination of global user input with AI assistance.NEW MEDIA MINDSETFRAMEWORK IN ACTIONBarbie co-brand

105、ed with brands across many channels,and with its overwhelming visual appeal fully captured the hearts and minds of newly gained Chinese fans who love what Barbie stands for as a woman in todays world.BARBIES BACK IN CHINA TO PAINT THE TOWN PINKRiding the wave of the films success in China,Barbie col

106、laborated with a range of high-profile brands,including Miniso,to grab major consumer attention across multiple channels.In addition to a range of bags,makeup and other accessories,Minisos un-missable collaboration with Barbie encompassed a variety of offline sales channels,including pop-up stores,a

107、nd mobile phone cases,as well as a strong presence on social media.This multi-platform,high-visibility approach connects consumers of all ages,attracting in new customers who are drawn in thanks to Barbie,who is so hot right now.A key factor in this success is the wide appeal Barbie has across Chine

108、se females of all ages and regions,signifying a strong connection with its intended audience.PERVASIVE-NESSBrand“Bravery”Own Category/Culture1-2-1 at Scale(CRM)Advocacy&Trust New Media MindsetVirtualizing ExperiencesTop-DownMASS MEDIA(CPM Focused)Bottom-UpTACTICAL MEDIA(CAC Focused)PervasivenessSoci

109、al Media EngagementDistinctivenessOmni-ChannelTHESE SUPPORT LOYALTY,RETENTIONBRAND GROWTH FRAMEWORKADVOCACY&TRUST FOCUSEDVIRTUALIZING EXPERIENCESCreating quintessential brand experiences via new technologies(VR/AR,livestream,haptics and more).A healthy relationship with customers-brand delivers on i

110、ts promises and makes things right for its customers.1-2-1 AT SCALE(CRM)SOCIAL MEDIA ENGAGEMENTSystems to communicate with individuals and segments at scale,while keeping a personal touch.Social content which is highly responsive,conversational and focused on authenticity and reciprocity with audien

111、ces.OMNI-CHANNELA full array of channels(offline and online)ensures that a brand is accessible at all times for customers.CHARACTERISTICSSTRATEGIES&CASE STUDIESFRAMEWORK IN ACTIONXIANYU GIVES SECOND-HAND PRODUCTS A SECOND WINDXianyu,Chinas leading second-hand goods trading platform,creatively utiliz

112、ed the Asian Games to promote sustainable development and repurposing of sports-related items.With the games as inspiration,their omni-channel strategy successfully elevated brand awareness and linked offline interactions to online purchases,with a marketing tactic that effectively delivered a cohes

113、ive,complete user experience.The campaign integrated a wide range of online engagement with physical displays,effectively connecting new owners with second-hand items.This not only facilitated transactions but also educated consumers about the benefits of reusability,creating the added bonus of enha

114、ncing trust and community spirit.Xianyu engaged customers with a mix of channels,including in-app games,outdoor activations and community engagement,seamlessly connecting offline and online interactions.Leveraging the momentum of the 2023 Asian Games,Xianyus Lost and Found campaign made a significan

115、t impact both online and in metro stations.This strategy not only deepened user engagement and brand recognition,but also broadened awareness among potential new users.OMNI-CHANNELFRAMEWORK IN ACTIONCLOGCORE CULTURE REACHES PEAK PERSONALIZATIONCrocs presence in the China market soared in 2023,with a

116、 revenue jump of 110%.This uptick was powered by Gen Zs embrace of clogcore as a mode of self-expression,known as entering the cave,transforming Crocs from simple footwear to a platform for personalized customization.Crocs success hinged on offering diverse personalization options,including co-brand

117、ed lines,celebrity-endorsed collections,and unique handmade pieces.This allowed for personalized recommendations and targeted marketing that aligned with personal preferences.Strategic partnerships with local designers and limited-edition releases further deepened Crocs community engagement.Crocs co

118、mprehensive strategy,featuring ambassadors,cross-industry ties,and mobile game integrations,successfully merged the digital and in-person experience.The streamlined approach also established its lead in innovative,youth-focused marketing.Multi-channel marketing strategies significantly enhanced cons

119、umer engagement,fuelling a nationwide trend towards personalized fashion.1-2-1 AT SCALEFRAMEWORK IN ACTIONVIRTUAL KFC ENGAGES REAL-WORLD CUSTOMERSKFC is continuously adapting to meet the changing preferences of younger customers.They combine food,entertainment,and experiences to attract users and cr

120、eate buzz in the market.KFC has extended its brand online,creating Re:Store a virtual restaurant on QQ that mirrors its real-world stores.This virtual space blends food,technology,and current trends.Customers can earn KFC Chicken Leg Coins and use them to buy customized virtual furniture,enhancing t

121、heir personal space.By offering these virtual experiences,KFC is showing itself not just as a simple fast food brand,but also forward-thinking,customer-oriented platform.KFC connects with their audiences fundamental needs while embracing Web 3.0 features and culture,creating a unique and memorable b

122、rand experience.KFC China launched a virtual restaurant called the KFC Re:Store on popular Chinese platform QQ.The virtual restaurant is designed to extend and promote the real-world experience of selling KFCs products in a game-like virtual experience.KFC Re:Store was created by Dentsu Creative Sha

123、nghai,and picked up a Bronze at Cannes which was Asias only Lion in the Cannes Creative Commerce Lions category.VIRTUALIZING EXPERIENCESFRAMEWORK IN ACTIONTEACHING CITY FOLK ABOUT LIFE ON THE FARMZhao Ri Wei Pin brought the farm to the city for an immersive experience to highlight their commitment t

124、o quality,transparency and how their produce originates.They transformed a patch of urban Shanghai into a demo farm a representation of their farming practices that allowed city residents to directly engage with planting and cultivation processes.This urban farm not only displayed their products but

125、 also underscored their dedication to natural and organic practices,emphasizing the connection between health with agriculture.In collaboration with hAo Market,a retail favourite among young consumers,Zhao Ri Wei Pin deepened trust by enabling consumers to directly experience organic food and drinks

126、 while learning about them.This approach provided a firsthand look at the milk production process,fostering authenticity and allowing for direct sampling to build reassurance.The campaign employed diverse methods like interactive education,nature-themed multimedia,and a menu featuring the brands ing

127、redients.It was an effective way to build trust in their produce,clarify misconceptions and drive consumer confidence,while positioning Zhao Ri Wei Pin as a leader in sustainable and transparent food production.To deliver the concept of using original materials,Zhao Ri Wei Pin built a farm with hAo

128、Market to showcase the audience how tasty milk is made.ADVOCACY&TRUSTFRAMEWORK IN ACTIONSK-IIs latest campaign showcases a strategic shift towards interactive storytelling on social media,effectively engaging women by offering them the power to choose their own narrativesSHARING FEMALE EMPOWERMENT O

129、N SOCIAL MEDIAA recent SK-II marketing campaign centred around empowering women,highlighting their ability to take control of their everyday lives and make independent decisions.This theme of empowerment was integral to SK-IIs strategy,which used social media engagement to enhance brand interaction

130、and awareness among this key demographic.The campaigns goal was to create a memorable connection,strengthening the bond between women,empowerment and SK-II.Central to the campaign was an interactive film distributed on social media channels.Viewers were invited to shape the narrative by selecting pr

131、eferred outcomes at different points in the story.This engaging approach transformed them from passive viewers into active participants,deepening their personal connection to the themes of SK-IIs brand story.The initiative proved exceptionally effective,garnering positive feedback and increasing bra

132、nd affinity among the female demographic,with both online and offline activations to drive ongoing celebration of this theme.SOCIAL MEDIA ENGAGEMENTSEE THE FULL REPORTTOTEMLink to the complete 122 page report or scan the QR code to Totems Website.CONTACT US Email: TOTEMMARKETING INSIGHTS Totem has a

133、 mission to support and provide the insights that C-Level marketers need in planning the growth of their brands,in China,Asia and Globally.As such,Totem has created a wide set of reports about the key issues being encountered at the leading edges of marketing.The 70+reports created by Totem have bee

134、n viewed over a million times by global marketing leaders.Totem reports cover topics on the frontlines of digital innovation,offering in-depth insight into the future of marketing,including;China and Asia trends,global DTC strategies,new market analyses and AI for brands.TOTEMDETAILED DATA AND DETAI

135、LS ON THE ECOMMERCE AND SOCIAL MEDIA LANDSCAPE ACROSS ASIA.PERSPECTIVES ON REGIONAL GROWTH.INSIGHTS,ANALYSIS AND GROWTH FRAMEWORKS FOR DIRECT-TO-CONSUMER BRANDS-WITH GLOBAL AND U.S.FOCUS PLANNING AND GROWTH FRAMEWORKS FOR BRAND SUCCESS IN CHINA.RANKING OF CHINAS TOP CONSUMER,RETAIL BRANDS GROWING ON

136、TO THE WORLD STAGE.INSIGHTS ON IF/HOW THEY ARE SUCCEEDING.OUR WORK AT TOTEMEmail: LESTER NGBRAND STRATEGY-ASIACHLOE JIANGINSIGHTS&PLANNING-CHINACHRIS BAKERBUSINESS STRATEGY-GLOBALDAVE WONGBRAND CREATIVE-ASIARON WARDLEBUSINESS ADVISORY-ASIAPAIGE NICREATIVE(ART/DESIGN)GARFIELD WANGSTRATEGY-CHINA/GLOBA

137、LKAREN LEEBRAND PLANNING-CHINASUMMER FENGINSIGHTS&PLANNING-ASIAJANE LANINSIGHTS&PLANNING-CHINATotem works with a range of brands in Asia,China and Globally.Projects for our clients address critical marketing and growth issues including;-Brand strategy,positioning,category design-Market and competiti

138、ve intelligence,data insights&analytics -Audience research,targeting,and growth planning-Social and digital channel management,content and campaigns-Influencers and media planning/placements -Channel strategies,audits,digital capabilities/innovation Totems clients range across industries,including;retail,fashion,beauty,travel,entertainment and finance.TOTEM