lecture 7 (idk) 2
KFC's Crazy Thursday Marketing Strategy
Introduced by Johnny, focusing on a popular marketing strategy in China called "Crazy Thursday."
KFC offers super value deals every Thursday since 2018 in China.
Involves attractive pricing on classical items and new products (e.g., buy two, get two free).
Success factors:
High-value products.
Engaging purchase experience.
Satisfies psychological and social needs (hunger and social interaction).
Time-sensitive (only on Thursdays).
Social Media and Copywriting
Hongger Martin and Casey Cleverly used social media to spread copywriting.
Strategy is low cost.
Key element: VME 15 (give me 15 yuan to buy KFC).
Example: Fill in the blank: T 30, U 40, ___, W 16 (answer: V 15).
Products in the offer are classical, popular, new, time-limited, or seasonal.
Keys to Attractive Marketing
Find the precise value position.
Consider the cost.
Offer interactive experiences and service.
Customers actively post their copywriting online, creating a connection between the brand and the customers.
KFC's Promotion in New Zealand
During a specific week, KFC had valuable promotions.
The concept is popular in China due to KFC's sustainable strategy.
Thursday chosen as it's close to the weekend.
Chinese refugees from TikTok to Red learn to write copywriting.
McDonald's vs. KFC Marketing Battle in China
Introduced by Marvin, discussing KFC and McDonald's marketing strategies in China.
Introduces CFC (Cage Free Chicken), a McDonald's campaign celebrating 30 years of using cage-free chicken.
McDonald's offered a free piece of fried chicken through their app.
Anyone bringing CFC-related items to McDonald's on a Saturday got a free piece of fried chicken.
Counter-Marketing Strategies
McDonald's placed CFC billboards near KFC stores.
KFC responded by emphasizing hand-breaded chicken and mocking McDonald's frozen chicken.
KFC offered 10 wicked wings for 29 yuan.
Drove trucks with slogans in front of McDonald's.
Marketing Perspective
Product: McDonald's focused on cage-free chicken, while KFC emphasized hand-prepared chicken.
Price: McDonald's gave away free fried chicken, and KFC cut prices.
Place: Both brands used billboards and social media.
Promotion: Brands competed through creative content.
Brand Performance
McDonald's online search index surpassed KFC's during the campaign, despite having fewer stores.
McDonald's CFC campaign demonstrates ways of grabbing attention.
McDonald's risked blurring its brand identity by using KFC's style.
KFC's fried chicken is preferred for its non-spicy flavor.
BYD's Electric Car Success in New Zealand
Introduced by Xiaowen Zhang, discussing the Chinese electric car brand BYD.
BYD started as a battery maker in 1999 and later moved to electric cars.
Has become an influential electric car brand, selling in many countries, including New Zealand.
BYD came to New Zealand three years ago.
BYD's Competitive Edge
BYD makes changes for New Zealand, improving suspension and batteries suitable for crude places.
Car is higher, suitable for countryside and city travel.
Localization strategy makes it most suitable for New Zealand.
Price and Distribution
BYD uses a different pricing strategy.
Tesla Model Y is about , Nissan is about , and BYD is about .
BYD targets low-income people with good quality.
Tesla uses direct marketing, while BYD uses a distribution structure.
Local retailers understand Kiwi consumer needs.
Promotion and SWOT Analysis
BYD uses Facebook, Instagram, YouTube, and Google to find people interested in electric cars.
Works with local car reviews.
Joins car shows and events. Offers test driving prices.
Government partnership providing electric buses.
SWOT analysis:
Strength: Second largest battery market.
Weakness: Medicare don't know them well.
Opportunity: BYD to do more surcharge stations like Tesla.
Threat: Some brands are better still.
Government stopped the clean car discount two years ago.
Baidu's Apollo Go Autonomous Ride-Hailing in Wuhan
Introduced by Liu Zhang (Chloe), who has worked in China's autonomous driving industry since 2014.
Focuses on Baidu's Apollo Go, a successful commercial operation of driverless EVs in Wuhan.
Apollo Go aims to break even in Wuhan by late 2024 and have a fully performing fleet by 2025.
Wuhan as a Test Bed
Wuhan is a national-level transportation hub with nearly 14,000,000 residents.
Features 1,300,000 university students and 28,000,000 daily trips.
Wuhan is a national dual pilot city backed by central funding.
Vehicle City Network Platform enables real-time monitoring, and a dynamic policy task force gives safety guidelines.
Business Aspects
Apologol rewires urban economics by partnering with Wuhan's manufacturing sector.
Targets young riders, integrating with local habits and using transparent data sharing.
Combines level four autonomous driving, vehicle infrastructure coordination, and cloud-based remote control.
Legal and Environmental Aspects
China has a multi-tiered standardization framework for autonomous vehicles.
Each robotaxi cuts 30% emissions compared to regular taxes.
Social Feasibility
Apologol succeeded by mastering social feasibility and understanding local knowledge.
Innovation thrives when it meets the right ecosystem.
Robotaxis have barriers, such as needing a smartphone, to use.
Robotaxis costs about 5 yuan for 5 kilometers.
Has serious regulations and remakes car to have readers in it.
AirAsia's Low-Cost Carrier Success Story
Presented by Nafkiran, discussing the success of AirAsia, a low-cost carrier founded in Malaysia.
Founded in 02/2001 by Tony Fernandez and Datuk Kamarajun.
Bought for RM1 (equivalent to New Zealand dollars) with RM40 million (approximately New Zealand dollars) in debt and two aircrafts.
AirAsia has adopted a low cost carrier strategy similar to Jetstar.
Brand value stands at 1,300,000,000 as of 2023.
Slogan: "Now Everyone Can Fly".
Vision: To be the largest low-cost airline in Asia, serving 3,000,000,000 people with poor connectivity and high fares.
Mission: To attain the lowest cost so that everyone can fly with Asia.
Main market segment: price sensitive customers.
Growth and Product Development
Asia aviation market share is expected to grow at a cumulative average industry of 8.81%.
Targets 70,000,000 passengers, an increase from last year of 11%.
Secured 56 aircraft are securely financed, and 14 new aircraft are expected to be delivered in early twenty twenty five.
New product development targets:
Hot seats (extra leg space).
In-flight Wi-Fi.
Bundling strategies (hotel including airfare).
In-flight entertainment.
In-flight meals.
Market Development and Diversification
Premium flight rate as a new product for their market, it's a business class seat without paying business class FS.
Premium flight rate offers no need to pay for allowances, no need to pay for movies and everything like that.
Diversified into:
App for booking tickets, hotels, and car rentals.
Tune Hotel (budget hotel).
Santan (food and beverages).
Insurance company.
Rhode's Food Marketing Strategy
Presentation by Sarah, focusing on using food in marketing campaigns to make products stand out.
Food is paired with products to convey features without using words.
Subliminal and Sensory Marketing
Subliminal messaging: Passes below the normal limits of perception.
Instead of describing the product as sweet, smooth, and makes you look like a glaze doughnut, why not show that by placing the product next to a food item that evokes such associations, for example:
Road lit treatment shown with raspberries.
Road milk glaze and road blush shown with milk and cookies and toasted marshmallow.
Sensory marketing: Engaging customers through touch, taste, sound, smell, and sight.
RoTE has been using this technique since they first launched.
Targets Gen Z, who spend an average of three hours a day on social media.
Economic and Brand Impact
Appealing to people's basic needs of food and pairing them with luxury items can make those luxury products seem more achievable in consumers' minds.
Designer brands have used this effectively, such as a tomato purse
Doom spending: Spending savings on luxury goods in the face of economic turbulence.
Liberty Media's Expansion of Formula One Popularity
Presented by Ella, discussing how Liberty Media expanded the popularity of Formula One.
Formula One is governed by the FAA; Liberty Media purchased commercial rights in 2017.
Liberty Media tapped into a new, younger market.
Strategies for Growth
Created F1 TV, a dedicated platform averaging about New Zealand dollars monthly to view the sport.
Partnered with Netflix to create the show Drive to Survive.
Drive to Survive
34% of people who watched became fans, including emotional storytelling.
saw an 8% increase in female viewers.
They mandated an increase in media requirements from the drivers. and this also helped people to connect with the sport.
Signed a massive ten-year deal with Louis Vuitton, valued at over US each year (1,500,000,000 over the ten years).
Pepsi's Marketing Failure
Presented by Grace, discussing the marketing failure of the Kendall Jenner Pepsi ad.
Pepsi-Cola was created in 1893 by pharmacist Caleb Bradham.
Kendall Jenner appeared in the ad, and she appeared to be in a photoshoot in the first half of the ad, which is shown in the previous one.
Controversial Ad Campaign
Kendall Jenner joins a protest and offers a police officer a Pepsi.
Strength of this ad : high brand recognition and inclusion of Kendall Jenner.
Failure of the first stage of the marketing process, which is understanding the consumer needs and wants.
Lack of Authenticity.
Sugar coating, underestimation, and oversimplification of social issues emphasized Pepsi's inability to understand what their consumers needed and wanted.
Opportunities and Threats
Opportunities include being able to improve their marketing strategies in order to gain trust from customers.
Research and have a strong understanding of the marketplace before releasing future campaigns, accountability, and rebrand image.
Threats include long term brand image and competitors advantage.
Proves the importance of understanding the marketing process through thorough research of target audience.
Because they wanted so much to fit in with what was happening with the world that they forgot about marketing their message.
Gymshark's Social Media Marketing Strategy
Presented by Annalise, discussing Gymshark's use of social media for marketing.
Gymshark was founded in 2012 by university student Ben Francis in Birmingham, United Kingdom.
Valued at over £1,000,000,000 (over New Zealand dollars).
Influencer and Community Engagement
Gymshark mainly uses social media marketing.
Social Media: Instagram has 7,500,000 followers, and their TikTok has 5,800,000 followers.
He sent clothes to YouTube and Instagram fitness influencers in hopes that they would wear their items in their videos.
This strategy still markets today, they send packages to social media influencers for free in the hope that they will talk about them and wear their clothes.
Gymshark has built like an online athlete community.
Gymshark began to be one of the first major brands to fully embrace influencer marketing.
Consumers buying behavior refers to Social factor thru small groups, social groups, and social status. Groups have a direct influence on a person's behavior.
SWOT Analysis and Recommendations
Strengths: Creating a strong brand personality and high-low cost influencer marketing technique.
Weaknesses: High competition within the sportswear industry such as Nike and Adidas and Lululemon , but a good study found gymshark as third on influencer mentions. High dependence on social media.
Opportunities: Possible to expand retail presence by opening retail store in London and many popup shops. Could make product to try on with phone.
Expanding brand could potentially work with influencers in the wellness area for yoga pilates as well in a wide area of range.
Recommendations:
Expand physical retail presence, whether that is making up more stores or moving into other sports retailing stores. create personalized shopping experiences through AI on the app. Consumers could try on the clothes by having a photo of themself and then the clothes on them. expanding beyond fitness gym influencers to wellnes, yoga, or pilates. # Swimwear Red Jollin Custom driven strategy
Jolene is a company swim where founded in early 2010 and the original intention for the company was to innovate and make swim ware for females for competitive swimming. it has become a house hold name and the presentation aims to discuss the marketing tactics they adapted for their consumer
Customer driven company by taking into consideration what female athlete needs from the perfect swimwear
These companies decided to be focused on the buyers who have the greatest interest in their values that they create. And the steps in this in designing the customer driven marketing strategy involve market segmentation, market targeting, differentiation, and market positioning, which I'm gonna be showing how JoLynn uses.
With market segmentation, market segmentation involves dividing a broad market into smaller segments with shared characteristics or needs.
The brand strategically selects the most promising group in Female athletes to cater too. the swimwear they sell prioritizes style design for female competitive athletes.
tie back one pieces offer tops with adjustable ties, and customize fits, and the products have chlorine resistant fabric.
jolyn positions itself so they ensure their products have real value with niche audience of female athletes in competitive sports.
Recommendations were to advertise more to reach broader audience and not to rely on customer loyalty alone.
In terms of the targeting, targeting is looking into the different types product that customers want, and positioning this product correctly helps boost consumer and sales.
We will use different segmentation strategies to analyze consumers which leads to identifying needs which may lead to a opportunity or threats.