Millet upgrade, Apple downgrade, how does price determine brand life and death?

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Millet upgrade, Apple downgrade, how does price determine brand life and death?

2019-03-01 15:46:43 115 ℃

Photo Source @Visual China

Wen | Chen Wen k

Just last week, Lei Jun held the launch meeting of Xiaomi 9. The keywords throughout the conference were "holographic dazzling color", "good-looking and able", "full-curved body", "touching palm", "AI three-camera", "wireless quick filling".

But at the end of the pricing announcement, Lei Jun called it an "unprecedented problem" and "unable to sleep".

Although Lei Jun has been building momentum on the eve of the launch meeting, Xiaomi 9 is the flagship aircraft of Xiaomi, and must get rid of the constraints of cost-performance ratio and concentrate on making the best products at all costs, crazy stockpiling, expecting to sell at a very low price, completely unable to do so. After some hesitation and entanglement, Lei Jun "feared to take too big a step at a time" and set the price at 2999 yuan.

and just at the beginning of this month, Apple's No. 2 retailer, Female Devil Head Alentz, quit, and Apple lowered the price of its products across the board, with the iPhone XS Max down by as much as $1500 on third-party platforms. Why did

make millet famous in World War I "low price" and "cost-effective" not work well, but become the pronoun of low?

Apple, which is positioned as "luxury goods in mobile phones", is not good at "high-end, high-price", and will not hesitate to cut prices to save itself? What changes have the smartphone market undergone? What role does

price play in this? Market changes of

smart phones

Smart phone development is obvious that from "technology-oriented" to "consumption-oriented" this stage, mobile phone technology from identity recognition from password, fingerprint recognition, to face recognition, camera from single, double, triple to AI photography, screen from retina screen to Liu Haiping, comprehensive screen, seems to have been. It has come to the bottleneck of technological development.

In the market, from the early "enthusiasts" and "digital tasters" to the early mainstream of urban white-collar workers, the latter spread to the post-perceptual and post-perceptual population outside the Fifth Ring Road, middle-aged and elderly people, the market has obviously entered a mature period.

In the early stage of technology orientation, Apple grabbed most of its profits by technological advantages, five years ahead of the industry, and high-priced positioning.

and the high-price positioning further established the high-end attributes of Apple. When an office worker, biting his teeth and spending a month's salary on an Apple mobile phone, even when an incompetent person needs to "sell kidney" to buy an Apple mobile phone, in turn, laid the value of Apple.

But when it comes to the stage of "consumer orientation", the industry chain is mature enough, the technology differences in the hands of various mobile phone brands are not big, the technology can not lead the generation gap, or the differences in technology can not be perceived by consumers, regardless of whether the CPU is M845 or 855, the camera is 20 million pixels or 40 million pixels, brush the tremble to a user and see if there is a video. What impact? At this time, the smart phone < strong > evolved from "the needs of minorities" to "the basic needs of society". One of the characteristics of the market is that it is highly differentiated and needs different prices and different configurations of mobile phones to meet the needs of people of different income, different occupations and different classes.

At this time, millet's "cost-effective" policy of opening up territory through "cost pricing" will be ineffective.

We can take the automobile market as an example to illustrate that when Ford launched the T-type car at 850 dollars and quickly occupied the American market, making automobiles an affordable vehicle for every family in the United States, Ford's low-price policy has made a great contribution.

But after the popularization of automobiles, automobiles have changed from "the exclusive possession of a few people" to "the public walking tool", and the automobile market has come out. The differentiation has been realized, from satisfying the function to satisfying the social demand. At this time, people need more beautiful, bigger and more expensive cars.

While Ford was still insisting on producing T-cars, his rival Chevrolet introduced new models and colors of cars, and made a lot of contributions to car comfort, personalization and diversification.

Ford failed miserably in the end, and fell to the third largest automobile company in the United States, losing its leading position in the industry. What is the problem with

apples? As a senior executive in the luxury industry,

Arenz made a strategic mistake to price the technology product of Apple mobile phone to luxury goods. However, unlike ordinary consumer goods, the biggest problem is that the value of smartphone is depreciating too fast. Vertu, a luxury mobile phone that used to be as high as hundreds of thousands of yuan, has long disappeared.

So for mature markets, establishing brand segmentation and pricing by product and marketing means plays a key role. Let's take a look at the following experiment.

University of Wiltsburg Price Test

Several researchers conducted an experiment at the University of Wiltsburg. The experiment was as follows:

showed a 10-year-old Opel Kadett E to 60 German mechanics and car dealers.

One of the researchers said that his girlfriend had crashed a car and he was ambivalent about whether it was worth repairing or not.

He mentioned that he thought the car was worth 2,800 marks. "In your opinion, is the price too high or too low?"

Next, he asked experts to estimate the present value and maintenance cost of the car. Experts'average estimate of car value is 2520 marks.

The researchers pulled the same car in front of another group of mechanics. This time, they said they estimated the value of the car to be 5,000 marks.

The average estimate of the second group of professional soils was 3863 marks, which was 40% higher. What does the experiment show? In my last article, Starbucks Coffee and Naixue Tea, how does Neo-consumerism manipulate your wallet? 》 In this paper, the anchoring effect of trading environment on price is explained. Packaging and trading environment of products determine price.

and this experiment shows that price has a reverse shaping effect on product or brand value , Behind a pricing, consumers will automatically brainpower the value or selling point of the product . In terms of Chinese mobile phone brands,

, how to build a brand through high pricing, and create a salespoint with distinct value, so that the product can obtain a higher premium, is a very critical ability. In the process of trying to locate high price, millet has never got rid of engineer's thinking, parametric thinking and launched various new machines. Although it first introduced high-matched CPU, full screen and off-screen fingerprints, it gives people the feeling that it is bucket machine, which has no characteristics.

and his rivals Huawei and OPPO have done much better in this respect.

Huawei Mobile Phone, in the user's most easily perceived and touched point of "portrait photography", wrote a large article emphasizing "Leica joint name", "Kirin chip", "AI photography", all of which are systematic support for "portrait photography" this focus.

So when Huawei Mate 20 is positioned at a price of more than 4000 yuan, people will automatically compensate for all kinds of value points such as "Leica", "Kirin Chip", "AI" above Huawei.

How Pricing Affects Our Life

Pricing not only plays a role in the mobile phone market, but also permeates our life and work everywhere.

I recently saw the public number "Plagiarizing a Cat". In its business introduction, the price of consultation is 200,000 times. Although I don't know how many people will actually go to consult, you will find this person very attractive. On the contrary, if Chen Wen's price for consultation is 1000 yuan a day, you'll find me very low.

Similarly, for an operating manager who has worked for three years, if you go to look for a job, after the interview, HR may ask you what salary you expect. Many people don't know how to report. They worry that if they report less, they may lose money. If they report more, they will lose. At this time, you can go to the talent website to inquire about the operating manager for three years. What is the monthly salary range? After a normal interview, you can pay a higher price, because in the subconscious of price determining value, the higher the price, the HR will make you "confident" and "predictable", but if you are too low, you will feel that you "may have problems" and your brain will automatically search for negative evaluations. Pricing determines life and death for a brand, and for you, pricing determines your own brand value. (Titanium Media, the first issue of this article).