Why does the “water” business rely so much on marketing?

Editor’s note: This article is from the WeChat public account “Time Interest Research Institute” (ID: SocialTouch2020), author : Keddy.

How much money do you make by selling water?

No, how much money do you make by selling bottles?

Last week, Nongfu Spring was approved to be listed. According to the company’s disclosed product portfolio, Nongfu Spring is currently intensively engaged in the four major beverage categories of drinking water, tea, functional beverages and fruit juice, with the market share ranking first in the country. It is its flagship “Nongfu Spring”, which accounted for 20.9% of drinking water products in 2019 and contributed 14.346 billion yuan in revenue to Nongfu Spring.

Be aware that an ordinary Nongfu Spring only costs 3 yuan per bottle.

Why can a company that sells water go public?

I have to say that due to the particularity of the industry, the drinking water market is an industry that can be used for more than 100 years, because no one does not drink water, which creates a huge supply and demand market.

Moreover, with the upgrading of consumption and the improvement of health awareness, people’s requirements for drinking water have generally increased. First- and second-tier cities are no longer limited to the use of household tap water. Pure water, mineral water, natural water, etc. have begun to become people’s homes. A must-have for life, this is one of the reasons why the entire drinking water industry is booming.

According to third-party data, the sales scale of bottled water in China from 2013 to 2018 increased year by year, from 106.92 billion in 2013 to 183.09 billion in 2018, with an average annual compound growth rate of 11.8%. It has become the largest in the soft drink industry Subdivide products.

“Eat” marketing and “rely on” marketing

It is true that the three core elements for the success of a drinking water brand are: water source-product, marketing-advertising and channel-sales. These three elements affect whether consumers will eventually buy your water or not. Keep buying your water.

In the past, water sources and channels were relatively monopolized or required a lot of effort and capital for brands. At present, domestic water sources mainly include Jilin Changbai Mountain, Tibet Tanggula Mountain, Sichuan Leshan, Emei Mountain, Wuling Mountain, Baisui Mountain, etc. , Basically in terms of high-quality water sources, a foregone conclusion has been formed, and the differences of channels are now getting lower and lower.Sources and channels have gradually stabilized, resulting in the quality of marketing to determine the importance of industry status.

It is understood that the raw material cost of a bottle of mineral water is about 0.5 yuan, and the implicit cost is about 0.9 yuan, of which marketing accounts for about 0.4 yuan.

It can be said that the drinking water industry is a very “marketing” and “relying on marketing” industry. But with so many drinking water brands, some of them are advancing all the way, and some of them have been sold off. How are marketing done?

How should brands do marketing? Sell ​​water?

In the industry, Nongfu Spring’s marketing is pretty good, and the gameplay is novel. It is also called “China’s Coca-Cola” by industry insiders. In addition to Nongfu Spring, the public also named C’estbon, Jingtian, Wahaha, Master Kong, Baisuishan, Evian, Evergrande Bingquan, etc. These brands often appear in advertisements. For this reason, Shi Fun summarized the success and failure of some drinking water brands at home and abroad for reference for various soft drink brands.

1 Find the correct positioning and use product thinking for marketing

In addition to the classic ad slogan “Nongfu Spring is a bit sweet”, it is also well-known to the public that “we do not produce water, but nature’s porters”. The first sentence is based on the taste of water, and the latter is Starting from water quality and water source, both taste and water quality are starting from product quality, that is, marketing with product thinking. This is just in line with the current consumer’s pursuit of healthy drinking water and finds what consumers care about. It also has a different cognitive point from other categories in the market.

A simple and clear sentence will help consumers establish brand differentiation in a short period of time. Between the “1-3 yuan” of drinking water prices that are uniform and affordable, water with the characteristics of taste and high-quality water sources is easier to stand out. Become the first choice of consumers. Of course, in addition to the classic advertising slogans, Nongfu Spring also deliberately took the water point as the scene, shot a documentary-style commercial, and combined it with TV media and elevator media to put the brand quality of the high-quality water source deep.People’s minds penetrate into the minds of consumers when market perception is blank.

Since then, more and more brands have followed suit, highlighting the quality and scarcity of product water sources, resulting in almost all drinking water on the market being “top noble”. In this situation, consumers can’t remember any of them. The pursuit of high-quality water is not the first, and Nongfu Spring, the first to enter the mind, is firmly imprinted in the hearts of consumers.

In addition, the creative advertisement of Nestlé Hépar mineral water. The advertisement is from the perspective of product function. Because Hépar mineral water is rich in magnesium that can promote digestion, they directly amplify this product advantage and use intuitive and creative The form of performance. This way of expression and the positioning of product functions also makes consumers refreshing.

In this regard, it is interesting to think that when drinking water brands do product thinking marketing, they must have a deep insight into the unique characteristics and functions of the product itself, and then simplify the language, rather than the “porter” of marketing, otherwise it can only Make wedding dresses for others.

2 Extend the brand and give water a deeper meaning

Different from the marketing path of Nongfu Spring, Cestbon’s main brand slogan in recent years is “pure heart, beautiful line”. If you haven’t seen this ad slogan before, at first glance, it feels a bit philosophical. In fact, behind this sentence, I believe that there is C’estbon’s in-depth insight into the market. When there is little difference between high-quality water sources and channels, consumers are willing to buy those brands that are remembered. At the same time, consumers are in an anxious and impetuous society. A simple slogan will pull consumers into a “quiet”. Space.

On a certain level, it gives water a deeper meaning, so that water is no longer simply looking at water quality, but looking at brands through water, and resonating with consumers in certain values ​​and emotions or being Recognize and create brand power.

In addition, there is also Evian, a subsidiary of France’s Danone, which is also very popular with consumers in terms of brand building. In an ad for eternal innocence, it is not just about water itself, but about water. Integrating with the brand, seeking in-depth communication with consumers through brand value propositions or emotional propositions, conveys the spirit of the brand, and there is no lack of creativity, which attracts attention.

It is interesting to think that by extending the brand, giving meaning to a certain period of time or expressing a certain value proposition, and at the same time introducing this temperament to the product quality, to achieve a fit, and to achieve emotional resonance with consumers is also A marketing approach that shines.

3 Differentiate the crowds and seize the core crowd’s “love and harmony”

The rise of the middle-class class. In the past, the price of a bottle of water was “1-3 yuan”. Drinking water did not bring about the distinction of identity and status. Drinking water brands for mid-to-high-end people are missing. Baisui Mountain’s ad slogan “Aristocratic Baisui Mountain in the Water” was put through a large number of advertising TVCs, and titled popular variety shows such as “Singer”, etc., making this high-end brand image deeply rooted in the hearts of the people. At the same time, it is a classic of Baisui Mountain. The advertising film incorporates the spiritual culture of the nobility, with beautiful and stylish pictures and story backgrounds. In the advertisements with mineral water as the main line, consumers get rid of aesthetic fatigue and successfully created the high-end and atmospheric image of Baisui Mountain.

In addition, the high-end drinking water brand of Jingtian Baisui Mountain is always prosperous, and it has always beenIt follows the high-end aristocratic temperament of Baisui Mountain, and interprets the brand connotation with “the blend of water and music”. From the heroine’s temperament to the scenes, instruments, tones and rhythms, as well as the powerful sound of the cello, the entire advertising film reveals an elegant style, which coincides with the original Wang strategy of focusing on high-end people.