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Why did the Blue Ocean Strategy fail?
In 2008, with the encouragement of the internationally renowned 4A advertising company, Caiyou began its failed blue ocean strategy. In 2008, it invested 50 million yuan, but only paid back 30 million yuan, which became a laughing stock and textbook failure case in the industry. The so-called blue ocean strategy is to break away from the existing competitive pattern, create new categories and open up new markets. So, how did Caiyou launch the blue ocean strategy through innovative categories? Why did it fail? Market background. The female vaginal care market is divided into two main markets, one is the pharmaceutical market (people who only use it after vaginal problems); First, the daily care market (vaginal beauty, cleaning, maintenance, etc. ). In Japan, Europe, America, Taiwan Province Province and other regions, the daily care market accounts for the largest proportion, and female vaginal care, cleaning and maintenance is a normal state. In China, most women only use lotions and nursing solutions after genital problems, and due to the deep-rooted traditional ideas and the influence of brand advertisements such as Fuyanjie, a wrong cognition is formed: women who use lotions and nursing solutions are unhealthy. In the medicinal market, Jieeryin and Fuyanjie have firmly occupied the "medicinal" market through years of efforts. These two brands are the first choice after women have vaginal problems. It is in this context that Caiyou decided to avoid strong competitors Jieeryin and Fuyanjie and create a blue ocean. Its main strategies are as follows: 1. Relocate and transform into "private body bath dew". Its advertisements no longer promote the medicinal functions such as "sterilization, itching relief and odor removal" and the concept of lotion, but promote the positioning of shower gel for private parts. It uses big S as the endorsement in the advertisement, claiming that "the skin in special parts needs special care" and USP is "weak acid, used every day", which has gradually entered the daily chemical market from the pharmaceutical market. Second, focus on supermarkets and avoid medical channels. Third, the price and packaging are close to those of daily chemical products. Because it is a daily chemical product, the packaging is closer to the style of daily chemical products, and the large bottle packaging is closer to the style of shower gel, and the price is slightly more expensive than the traditional emulsion. Fourth, marketing communication. With the image of "Big S" as the endorsement, the campaign to educate consumers nationwide was vigorously carried out, which cost nearly 50 million communication expenses. In short, the blue ocean strategy of seclusion is to innovate the product concept, not to make daily-use drugs, and not to make bath lotion for private parts. This innovation seems to be in line with the consumption trend. After all, foreign women have long regarded private care as the norm. How can such a strong advertising cost fail? The fundamental reason is that consumer demand is far from the imagined level. Mainland China is not the United States, Japan and Taiwan Province Province, and its consumers are relatively conservative, and their acceptance of vaginal daily care is far less extensive than that of the United States, Taiwan Province Province and other regions. If the blue ocean strategy of Youyou is more conservative, Youyou will become a daily preventive product between medicine and daily chemicals, that is, "daily care to prevent female vaginal problems", because the concept of daily prevention is based on the functional needs of consumers and has a cognitive basis. However, it is too advanced to make "daily cosmetic products for private parts" in one step, and it is not noticed that women's basic demand for such products is still "medicinal". Ask the female friends around you, how many people have the needs of private parts beauty? Of course, the market can be educated. If you can persist, I believe you will succeed, because daily care is the trend after all. However, the process is painful. Who knows when the consumption trend will come? Can you complete the education of the whole market by your own efforts? I'm skeptical. Be swayed by considerations of gain and loss, not completely insisting on positioning. In terms of channels, the excavation is not thorough. Since it is positioned as "shower gel for private parts", it should be sold together with shower gel, but it is sold on the same shelf as brands such as Fuyanjie and Jieeryin (Fuyanjie has also opened up supermarket channels). Imagine if the information consumers receive in TV advertisements is shower gel or shower gel, but what they see when they walk into the supermarket is shower gel and lotion. Will they accept the concept that it is a shower gel rather than a medical product? Moreover, Caiyou is unwilling to give up the existing medical channel sales, and then enter supermarkets and OTC, which leads to many consumers' cognitive confusion and does not know what Caiyou is for. This is equivalent to the educational work done before mining, because the terminal layout is not thorough, and all previous efforts have been wasted. After a 360-degree turn, it is still the original emulsion product. In terms of price. I think it's ok to choose a quiet price. Its packaging was a failure. It not only introduced shower gel packaging, but also did not give up medical packaging, and its orientation was not thorough enough. It is conceivable that the high-level people who live in seclusion want the blue ocean and refuse to give up the struggle psychology of the Red Sea. After a round of advertising failure, Caiyou continued to launch a new advertisement "bathroom upgrade". The general content is that big S tells everyone that the bathroom of female friends should be upgraded and a bottle of private shower gel for color friends should be added. There is no doubt that this advertisement also ended in failure. We can get inspiration from the failure of digging deep places. First of all, the creation of the blue ocean needs to be based on huge consumer demand, otherwise it may be a "blue ocean" without seawater; Secondly, since the positioning has been established, we must adhere to the positioning and avoid suffering from loss.