A classic that breaks through the convention everywhere

In p>1984, the fledgling Italian Kym chocolate faced the chocolate market leader, internationally famous brands Cadbury, M&; M'S market segmentation and shrinking chocolate market, with Hongkong and Taiwan Province markets as the entry points, have been carefully thought out and planned, and with its unique and unconventional marketing strategy, M's has become a mainstream force in the world chocolate candy industry. The following year, the company was listed in Hongkong, and its market share has been stable at 2%. In the year of listing in Taiwan Province, it achieved a good market share of 24%. After ten years of careful management, Kym's sales have accounted for nearly 3% of the Hongkong market and nearly 4% of the Taiwan Province market. It is also among the best in the markets all over the world, becoming an internationally famous brand, and its success is praised as a classic example in the history of marketing.

The Rise of Kym

This is a classic marketing story that breaks away from convention and brings us to Hongkong in 1984.

At that time, the Hong Kong market was the most mature and competitive market in Asia. It is of great strategic significance to choose Hong Kong as the basis for development. It can be said that it is the foundation stone for Kym to create today's glory.

Chen Yucheng, the general manager of the company's Asia region, said that the first choice of Hong Kong was mainly based on the following considerations:

The Hong Kong market has unique advantages-

① Hong Kong's economic and social structure. Hong Kong's per capita income and per capita consumption are the highest in Asia (excluding Japan); The proportion of urban population is high, and the retail market structure is modern; Ideal employment situation and strong personal consumption ability; The status of a free port provides an environment for fair competition for imported products; With an open social structure, citizens have strong compatibility with foreign (western) ideology, living habits, new ideas and products, low resistance and great chances of success; China people's ability to distinguish quality (especially food), their attention to product image, teenagers' habit of snacks and the custom of giving gifts on New Year's Day all create an ideal business environment for chocolate candy.

② chocolate market structure. In terms of total sales volume, Hong Kong chocolate market is second only to Japan, South Korea and Chinese mainland in Asia. The per capita consumption is the highest among Asian countries, with a per capita consumption of .5-.7 kg.

an excellent market is naturally a must for all businesses. Manufacturers of famous brands such as Britain, America and Europe, such as Cadbury, Maitisha, Triangle Chocolate and M&; M'S, Nestle, Swiss Lotus, etc. have landed first, and the wells have achieved high popularity in Hong Kong, such as Cadbury 95%, Maitisha 93%, Triangle Chocolate 92%, M&; M' s92% ... Cadbury and M&; M'S market share is extremely high, reaching about 2%, and it has become a household name at that time. Not only that, Cadbury, as a market leader, has led and influenced the formation of chocolate culture in Hong Kong to a certain extent, and the consumption trend oriented by the taste of the above products has set the excellent standards of delicious, soft and smooth, crispy nuts, fresh, not too sweet, beautiful packaging, noble image, peer recognition, advertising attraction and other factors.

From this, they draw the following conclusions:

① The chocolate market in Hong Kong is mature, but it is in great need of new concepts and new products.

② Traditional chocolate influences the cultural formation of chocolate, so we must find another way to avoid hard collision with famous brands with a long history.

③ Competitors should have some excellent products, such as fragrant and smooth, nuts, etc. Besides the above-mentioned tangible conditions, Jinsha should highlight its intangible characteristics, such as being extravagant, unconventional and fashionable, so as to show its differences.

④ Hong Kong's open society and compatible culture have provided Kym with a foundation to get out of tradition and break through convention.

thus, the marketing strategy centered on breaking away from convention-product strategy, price strategy, sales strategy, advertising and promotion strategy.

product strategy

Kym's product strategy is based on several important beliefs, which just reflects the business philosophy of the Italian Ferriero family, the creator of Kym.

first, originality

Ferriero was convinced that successful products must have differences, so originality became the cornerstone of Kym products. This strategy enabled Kym to avoid unnecessary competition with traditional brands, and achieved considerable returns for a long time after the products went on the market.

second, focus on basic concepts

after the original product concept is established through scientific market research, it will be transferred to the product design stage. In this transformation process, every link has been repeatedly verified to avoid the rabbit unconsciously deviating from the original basic concept in the product development process. And then around the idea of concrete products, and then from the development of products, screening the best expression of the original concept as a formal listing of products.

once a product is on the market, it is not easy to change the specifications or forms of the product, but only to continuously improve it on the original basis. Many products that have been on the market for more than 3 years in Ferriero have the same feature-the overall concept of products that appeal to consumers is often not much different from that at the beginning of listing. This strategy is quite different from the traditional practice of introducing new packaging and products every year or so.

Third, adhere to product quality

A good product must have perfect quality in order to show the superiority of its concept. Kym's obsession with product quality is almost stubborn. Insist on selecting the best raw materials and refuse to use all synthetic materials and additives. In order to reflect the originality and unique quality of products, they have invested a lot of money and time to develop their own production technology and equipment, and implemented a unique technological process, so that successful imitators in Kym can only copy their external packaging, but are helpless with the internal quality in Kym. Kym's original product quality and structure have been unique for more than ten years.

Fourth, the ability of products to cross the market level

Ferriero products have one characteristic, which is difficult to classify at the beginning of listing. Often, the same product can adapt to different market demands and be given different market positioning. Kym is a typical example of this feature. A glittering hazelnut chocolate can enter different markets and attract different consumers under different packaging.

① three small packages-this is specially designed for the core consumption class (18-25 years old). These young people make repeated purchases frequently, and their positioning is at the level of daily self-consumption.

② five-carton packing-luxury decoration of three-carton packing, increasing the number to five, will make it enter the level of higher price level but narrower market. Its positioning is in the consumption level of deliberately pursuing beauty, valuing packaging regardless of price, and taking quality and image as fashion. In terms of quantity, it can not only satisfy individuals, but also share with others, and can also be used as a small gift to give friends and relatives a little warmth.

③ Boxed with eight hearts-this is a unique positioning of the gift category, which is aimed at a large number of non-chocolate consumers and used as gifts for Valentine's Day, Mother's Day and Yuji's birthday.

④ sixteen boxes-it is designed to cater to the widest consumer class. Housewives or other family members often buy sweets for daily use at home, or as small gifts for friends to visit each other, which are appropriate but not too grand, and can also be used as collective gifts for festivals and parties.

⑤ Twenty-four boxes-this is a kind that vividly expresses the gorgeous and expensive features of Kym, and it often becomes the most popular gift for the Spring Festival or more grand occasions.

Five different kinds of packaging reflect Kym's consumer positioning thought and his ability to cross different market segments, so that a homogeneous chocolate can play a variety of functions from snacks to gifts and attract consumers at different levels.

Kym's successful product strategy is not Ferriero's subjective imagination, but based on his long-term understanding of market structure and orientation, and his research on consumers and consumption behavior. Paying attention to the research on the market and consumers is an essential step for Kym to determine its product strategy and market strategy. It is through this active search for effective product forms and channels that we can understand the concept and code of conduct of grasping consumer acceptance, so that Kym can win the market.

price strategy

Ferriero's product price concept is more distinctive-it pays attention to the price he is willing to pay to meet his own material or emotional desire, rather than actual needs. That is to say, the satisfaction degree and price relationship of competitive products to consumers' desires become the decisive factors of their prices, rather than the traditional factors such as weight and packaging size.

Ferriero believes that the price of a product is closely related to its image and positioning. As a result, at the beginning of Kym's listing, its pricing strategy was quite different from the general traditional methods in the market, which puzzled retailers and led to refusal and ridicule.

according to the traditional pricing method, Kym's pricing method really has no logic to follow, such as the price is 3-5% higher than that of products with the same weight on the market; The price gap between varieties with different packaging specifications is irregular. The more pieces, the bigger the package, and the higher the price by piece. In fact, this is the ingenuity of Kym's products with different functions and different levels at different prices.

this unique pricing method with high price has enhanced the image of Kym's fine products. Kym's high price is consistent with its noble image and high quality, which makes them agree with each other in the minds of consumers. Take Christmas Kym as an example. This is a special package introduced by Kym during Christmas. It is very elegant and full, giving consumers a special feeling of small amount of handmade products rather than large machine production. The chocolate products bought by consumers here have been sublimated into an elegant gift or decoration with a very original, expensive and elegant Christmas atmosphere, which makes consumers reflect their own taste and mood, and its value is naturally much higher than that of a box of ordinary chocolate candy.

marketing strategy

Kym's marketing strategies, such as pricing, sales and promotion, come down in one continuous line with its product strategy, and they are all based on business quality and noble image.

When Kym entered Hong Kong in p>1984, the traditional main channels of chocolate sales were supermarkets, department stores or convenience stores and retail outlets with food departments, with about 4, in Hong Kong. The most dominant are Wellcome and Baijia supermarket chains. At that time, the conditions for large chain groups to enter the store were very strict, such as the goods must be well-known; Once the goods are accepted, they must pay a considerable promotion fee (usually hundreds of thousands of yuan) for in-store promotion during the listing period; The pricing of goods must be approved by the purchasing department. If the sales are unsatisfactory and cannot be improved within a certain period, the purchase will be stopped, and the promotion fee will not be refunded.

At this time, Kym was broke, lacked strong strength, and its unique and untimely price strategy forced Kym to change its course and find another way.

what kind of merchants should we choose to properly reflect Kym's unique positioning in terms of price, quality, display and access? After much deliberation, Kym chose Watsons Group. Its chain of western pharmacies, with Watsons as the exhibition window, really reflects Kym's unique pursuit.

At that time, Watsons mainly sold high-grade cosmetics, expensive small gifts, formulated western medicines and some high-grade daily necessities, and its clients were mostly high-class consumers who were willing to pay the corresponding price for pursuing high taste and quality. It was the first choice for consumers to visit high-quality personal consumer goods and get in touch with the fashionable lifestyle. Its image, business policy and positioning were complementary to Jinsha to some extent, and it was positioned with Kym's ideal image and consumption level. In addition, the store had about 5 branches at that time, which were distributed in areas with high consumption and high population density in Hong Kong and Kowloon, and naturally became an ideal place in Kym.

After the goal was established, Kym launched the promotion and lobbying work for different management levels of Watsons. Watsons has a unique eye and is well aware of Kym's potential. It will consider using Kym's intervention to neutralize and enhance Watson's image as a "western medicine", reduce the negative impact of ordinary consumers on Watsons who only serve a few consumers with strong purchasing power by using chocolate products with a wide consumption level, ease the cold style brought about by the product-oriented relationship in the store, and increase Watson's warmth and intimacy with the help of Kym's golden packaging, elegant and luxurious image and the characteristics of facilitating the creation of a festive atmosphere. * * * The same will, the same concept and the complementary function make the two hit it off and join hands to expand the market.

In this way, Kym appeared in non-traditional stores in a non-traditional display way (traditional candy was placed on the shelves, and Jinsha was distributed in different corners of Watsons' store, and it was displayed in the form of seats), which immediately got a shocking effect-customers met unexpected products in unexpected environments without psychological preparation, and the shock wave could be imagined.

savoring the combination of the two gives people a feeling of harmony and tacit understanding, which coincides with the feeling of tasting Kym for the first time. More coincidentally, this day's combination is just like the product form of Kym-a layer of broken nut chocolate wrapped in a round soft chocolate with a crispy hazelnut in the center, under the gorgeous and expensive packaging. It's like stepping into Watsons' house and seeing a large pile of Jinsha on display.

Kym appeared in a unique way, which produced remarkable results and greatly increased its popularity. With Watson's successful experience and a few modifications, Kym quickly formed a sales network with good quality and quantity in a short time. When all the channels accepted Jinsha, the negotiations with Wellcome and Parknshop were also ripe. Kym was able to enter the powerful sales network according to the fixed price strategy and spread it quickly.

advertising and promotion strategy

besides products, prices, sales and other strategies, Kym's measures in advertising promotion are even better.

When planning advertisements, look around the chocolate market. Many brands have a long history in the market, and the advertising power accumulated over the past decades has made their popularity as high as over 9%.

In order to make consumers remember "this one" among the advertisements of various brands, Ferriero's Kym advertising copy can be described as a painstaking effort. According to the traditional general model, advertisers often put their products in a general life-like atmosphere and explain the beauty of the products with the expression of actors chewing chocolate. Or a group of boys and girls, singing and dancing, to promote the gift positioning of chocolate. Ferriero believes that this kind of advertising content and product appeal are vague, but the brand gives the audience a deep impression in the long-term broadcast-that is, it gains popularity. So from the very beginning, Kym decided that advertising, creativity and production must express Kym's unconventional characteristics. After much deliberation, "Kym's attraction is irresistible to ordinary people" has become the decided advertising theme. Highlight the roles with different identities on different occasions. Attracted by Kym's inherent unique qualities, he unconsciously ate all of Kym.

Kym's creative and unique advertisement once played a small joke on the serious church, which almost led to the ban of the censorship office.

The advertisement is like this: In the silent and empty church, a girl with a pure face bowed her head and walked into the repentance room. The picture shows that during her teenage years, Ai Aidit confessed to the priest that she regretted it for the first time because she could not resist the temptation! The audience has been drawn by the story so far, and it is inevitable to think of the mistakes that boys and girls should not make the most. But when the picture changes, the girl explains that she can't resist Kym's unique mouth.