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The goal of advertisement is to increase sale in the short term as well as build the brand in the long term. Sometimes we are confused that why a household brand which already developed their loyal customer group still need overwhelming ads?
No matter how big the brand, mild consumer is very important. The purpose of overwhelming ads is to remind and arouse the desire of customers to buy. Let’s see a report which shows the number of purchase times and the percentage between Pepsi and Coca Cola.
The picture shows that even for Coca Cola, there are still over 45% of families who will not purchase it. For Pepsi, this percentage is 70%. If we categorize the family who purchases Coca Cola 0-2 times per year into mild consumers. It occupies 65% of families.
You may ask that is that Pareto Principle? Does 80% of sales comes from 20% loyal consumers? In practical terms, the first 20% loyal consumers only contribute 50% of sales according to the following statistics which shows the percentage of contribution for first 20% buyers.
We can see that mild consumers contribute 50% of sales on average. Actually, it is also easy to convert them into buyers. Because their choices are random and the overwhelming ads are prepared for them in order to give stronger impression to them.
Re-build a totally new cognition is very difficult. Why not build a connection that can lead the cognition which already exist in consumers mind to our brands? For example when you see a letter “M”, you will probably think of McDonald’s. The purpose of ads is just to strengthen this kind of connection.
From a memory perspective, the more the times that things be extracted, the more impression. You may ask what kind of “connection” does Coca Cola give us? To be honest, the connection is prefer to emotions or feelings. What they’d like to keep it in our mind is “Romantic”, ”Arbitrary” or “Share happiness”.
No matter how big the brand, mild consumer is very important. The purpose of overwhelming ads is to remind and arouse the desire of customers to buy. Let’s see a report which shows the number of purchase times and the percentage between Pepsi and Coca Cola.
You may ask that is that Pareto Principle? Does 80% of sales comes from 20% loyal consumers? In practical terms, the first 20% loyal consumers only contribute 50% of sales according to the following statistics which shows the percentage of contribution for first 20% buyers.
Re-build a totally new cognition is very difficult. Why not build a connection that can lead the cognition which already exist in consumers mind to our brands? For example when you see a letter “M”, you will probably think of McDonald’s. The purpose of ads is just to strengthen this kind of connection.
From a memory perspective, the more the times that things be extracted, the more impression. You may ask what kind of “connection” does Coca Cola give us? To be honest, the connection is prefer to emotions or feelings. What they’d like to keep it in our mind is “Romantic”, ”Arbitrary” or “Share happiness”.
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