| Consultant in Marketing Design, Stephane Bertoux is a | | | | You walk past her, she offers a smile to taste a cup. |
| specialist in mass market consumer and retail, for | | | | If you have a bit hungry, time, or you're stingy, you |
| which he was a consultant for twenty years (3M, | | | | will take the cup and drink. That's all. And you will buy |
| BASF, Carrefour, Masterlock ...). | | | | the brand you want and maybe even ground |
| It is also the author of iPhone application | | | | coffee. |
| TheBrandGenerator. | | | | If you are already a consumer of Nescafe (and |
| | | | you're hungry, thirsty ...), you take the cup. You will |
| The Apple Store - 6 facts about marketing strategy | | | | find it's nice from your brand to give you a small |
| for iPhone Apps. | | | | unexpected gift, and to share with others my brand, |
| The App Store (which sells application for iPhone and | | | | and this gives you self-value (self-enhancement: "My |
| iTouch) is a great business model for Apple, of | | | | brand gives gift to everyone, it's really a nice brand, |
| course, which holds a global distribution network, | | | | my brand"). Maybe you will think that there is not so |
| integrated, with no storage costs or purchases from | | | | much coffee at home and you will buy one. And if it |
| suppliers software (Apple surrenders a percentage of | | | | was on the shopping list ... you would have bought |
| amounts paid by buyers). | | | | anyway. |
| There is currently no verified models, each one | | | | And if you do not like coffee: zero effect. |
| launched their apps into the market a little groping, by | | | | You did not even saw the promoter. |
| changing its pricing practice and its strategy days | | | | 5- Fact 5. Viral marketing and on store promotion : |
| after days. | | | | when the promotion kills the viral communication. |
| A key question that arises is the use of free | | | | You are a Chinese countryman which has just arrived |
| application, to attract consumers and then switch to | | | | in town. |
| full versions, paid. The other issue is the level of price | | | | You learn plenty, you've never seen so many things, |
| elasticity with respect to what the consumer is willing | | | | strange things which you had no idea. Yet it is |
| to pay. | | | | written in Chinese, yet you do not understand well. |
| In response, the analogy of the Hypermarket, the | | | | You see the girl with her cup, coffee is written. |
| Nescafé and China seems to be the best way to | | | | What's the coffee? Something for long-nose, |
| understand how this market works. | | | | certainly, it must be disgusting, it's complicated, |
| 1- Fact 1. Not seen, not sold. The hypermarket's rules | | | | what's the point? So complicated that you dare not |
| applies to the AppleStore. | | | | even get close to the girl, you're afraid of being |
| The Apple Store (80 000 references) is a large | | | | thought a fool. |
| hypermarket. With shelves and products inside. The | | | | You get back into your construction camp, where 15 |
| consumer comes through the door of the App Store, | | | | of your mates housed during construction. One of |
| and then visits the various departments: Games, | | | | your neighbors offers you a of coffee, but before |
| Business, Comics, Books, Education .... | | | | explaining you how to drink it, when, and why it's |
| At the entrance of each department, at the head of | | | | good, and even it gives status! When you will hit |
| the shelves, the Best Sellers. In the department, we | | | | your pay, you will buy it, and bring it back to the |
| find first the good sellers. And after, the low sellers. | | | | village, to show that you are not anymore a peasant. |
| The more sales declines, the more they go to the | | | | If by cons you tasted the coffee offered by the |
| bottom of the shelves. | | | | demonstrator, because she was pretty, you would |
| 2- Fact 2. New market, new products, new | | | | immediately spat out: "Bouah, what's that thing wich |
| consumers : new ways to buy. | | | | stinks vomit? Another devilish long-nose thing ! " And |
| An Hypermarket in China. Why in China? There, | | | | returned to barracks you have told your friend: "You |
| consuming is very recent. And our Chinese friends | | | | drink this yucky stuff you? I tasted, it's not for me!" |
| are like all of us in the Apple Store. | | | | Nescafe is relatively expensive for a Chinese, but |
| We are just walking there, we look, we discover, we | | | | because it's a good product and well done. There are |
| buy a little. We take our time reading labels in the | | | | now Chinese brands, although cheaper, certainly not |
| products. By discovering a whole bunch of stuff that | | | | so good (the consumer thinks as it's cheaper, it's |
| we did not know before. Or things that we knew, | | | | worst). Nestlé can sell much cheaper, but they will |
| but presented differently packaged. And many | | | | have no longer the ressources to do so much |
| promotion girls, so pretty, giving us for free to test | | | | communication. And the margin will decline |
| and to taste new food. | | | | dramatically (this is not a linear curve). |
| 3- Fact 3. Promotion or not promotion, that’s the | | | | 6- Fact 6. Have an adapted strategy with the apps |
| question ! | | | | kinds. |
| And Nescafe? Coffee is a new product in China, | | | | All this applies perfectly to the App Store: to offer a |
| which is marked by high statut level. I drink coffee, I | | | | free test is a good strategy, if the apps is a simple |
| am modern, as an American. Furthermore it is | | | | and know concept (a racing game), and if there is a |
| expensive, I can afford. And coffee is both virile and | | | | strong competitive environment. Communication will |
| gives good health, it makes walking neurons more | | | | help with offering consumers little more (tips, |
| efficiently. Nescafe is experiencing a strong success in | | | | tutorial,...) |
| China, thanks to a very important advertising | | | | For a product more complicate, new for the |
| investment and a massive presence of facilitators in | | | | consumer: it will not work, there is even a risk to kill |
| the stores to promote coffe. | | | | the product by a negative buzz. |
| You are therefore in a hypermarket in Shanghai in | | | | Having a low price is necessary if it is a staple stuff, |
| the aisle which passes the department of coffee. At | | | | with great competition. If the apps has some |
| the department entrance, a nice promotion girl of the | | | | interesting functions or marketing differences, then |
| Nescafe brand, white shirt, red vest, black skirt : she | | | | the consumer will be willing to pay the price. |
| awaits behind his booth. | | | | And the consumer will be a product ambassador, as |
| 4- Fact 4. Promotion can be only brand | | | | he has paid a "good" price an application that he will |
| communication. Are brands so important in the | | | | use it, and being it's own demonstrator. |
| AppStore? | | | | |