Through the Meituan, Zhihudu, and other 7 classic cases, the five major product strategies are explained from the inside out, single point breakthrough, anchor binding, group extension, and circle construction.
Editor’s note: This article is from the WeChat public account “Product encountered operation” (ID: alden_xu) , author : Xu Xiaopeng.
This article continues from the previous article ” Product Strategy Quintet (Part 1) “ , continue to explore the choice of breakthrough points in product strategy, progressive layer by layer, anchor point binding, group extension, and create a circle strategy.
3. Product strategy quintet No. 2 single-point breakthrough
Let’s take a look at a classic case of strategic breakthrough point selection, Gaode map.
Mobile map is a very high frequency application. With the rapid increase in the penetration rate of private cars, the continuous expansion of the city scale, and the increase in the inter-city population flow, mobile phone maps to query information points and navigation have become a daily need that everyone frequently uses and is very dependent on. According to the data at the end of 2019, the daily life of Gaode Map exceeded 115 million.
Since I started using my smartphone in 2007, mobile maps are my earliest and most frequently used app because of my frequent business trips and driving. In the early days, I only used it to query locations and routes. I do n’t know when it started. I often found that Gaode linked commercial products with the POIs I queried. For example, if you query a restaurant, a group purchase coupon will appear below; if you query a hotel, a discount reservation entrance will appear; if you search for a tourist attraction, a ticket purchase link will appear below. Of course, the most natural route is after the route query, the taxi button is next to it.
At the beginning of its establishment in 2004, LeTV positioned the online video content industry. In 2007, it began to vigorously lay out copyrights, and purchased a large number of movies and TV shows online copyrights. By the time the Chinese government stepped up copyright protection on the Internet in 2009, LeTV already had a large number of content copyrights, which had skyrocketed in value, and successfully listed in 2010. Subsequently, LeEco established LeEco Pictures, and began to deploy sports, culture and other industries.
LeTV Content Industry Layout
At this stage, there are many online video companies, such as Youku, Tudou, PPTV, iQiyi, all have strong content systems, and there are a lot of online film and television content providers. It’s like crossing the river, each with its own large and small customers, and the competition is fierce. LeTV has not yet achieved an absolute advantage at this time.
Phase 2: Hardware anchor binding
Around 2014, LeTV entered the field of smart TVs, launched LeTV Super TV, with Internet content services as its core, and integrated the smart TV industry backwards.
This is a crucial step. LeTV sells large-screen smart TVs at an amazingly low price. Compared with the price of TVs of the same level, LeTV’s pricing was only half or lower, and the quality was not inferior. In China, a very price-sensitive market environment, this pricing strategy has made LeTV a explosive product, and has gained a high degree of market attention and massive sales.
We know that TV is a durable product. It is turned on frequently and turned on almost every day. It has a long service life and can be used for years or even decades. The replacement frequency is much slower than that of mobile phones. Most people have TVs in their homes, and the daily usage time is often very long. Therefore, selling a TV to a user and occupying his living room or bedroom can be considered as binding the family for many years. And this TV is similarFor the anchor, the user has firmly anchored the position here and opened the window. If it becomes a commercial entrance further, it will undoubtedly have great prospects.
Everyone thinks that Focus Media has installed small screens in the elevators of some buildings. Just by passing by, we can sit at such a high market value, let alone enter the millions of LeTV Super TVs?
Phase 3: Monetization of long-term users
After a large number of users are bound, combined with the content system that LeTV has been investing heavily in, it provides a solid foundation for traffic and commercial realization at this moment.
For example, users can turn on the TV and insert advertisements during the startup process; they can sell paid members and set up a differentiated and diversified payment system based on the type of content; they can charge movies, TV shows, and variety shows; Advertising in various sections; brand promotion cooperation; TV app stores can be used to charge companies that provide applications; online shopping malls; of course, other channels of LeTV can also be used for diversion.
I checked the 2015 LeTV performance report, with revenue of 13 billion, of which 6.1 billion was terminal business income, 3.8 billion was member business income, 2.6 billion was advertising revenue, and net profit reached 573 million. Such a performance can be very dazzling in a period of general loss in the video industry. In addition, users bound by TVs will have a lower risk of loss, and monetization can be a long-term continuous process.
Although the whole process took a few years, we saw that the development of the entire strategy is very clear. From the initial establishment of the content system, the acquisition of copyright, and the introduction of high-quality, low-cost and durable hardware to bind users, Finally, complete the realization of the user’s overall monetization, and its anchor binding strategy in the whole process is a textbook-like highlight in my opinion.
5. Product strategy quintet No. 4 Group extension
The following case uses a well-designed and highly targeted product gameplay and well-defined products, cuts through a social group from a specific user group, and then quickly expands to a larger group and region, thereby occupying huge market. This is Pinduoduo.
Phase 1: Rise of low-tier cities
Today ’s Pinduoduo started today in 2015.