Thirty-Six Stratagems of Brand Positioning: Making a feint to the EAST and Attacking in the WEST 「品牌定位36計：聲東擊西」

Thirty-Six Stratagems of Brand Positioning: Making a feint to the EAST and Attacking in the WEST

「品牌定位36計：聲東擊西」

LU, Yi  1155082008

Before the stories

As we all know, in any battle, the element of surprise can provide an overwhelming advantage. Even when face to face with an enemy, surprise can still be employed by attacking where he least expects it. If we compare the competitive market as a battle, the competitors surely become enemies. When operating a brand, the biggest problem that managers should pay attention to is the brand positioning. But how can you make your brand a special one? In my opinion, you are supposed to create an expectation in the “enemy's” mind through the use of a “feint”.

One success story：RIO cocktail (RIO雞尾酒)

The ready-to-drink (RTD) alcoholic cocktail beverage (预调鸡尾酒) division of Shanghai Bairun Investment Holding Group Co., Ltd. (百润股份), best known for the RIO brand, reported strong sales in recent years (see figure 1)

Figure 1:Financial reports from 2012 to 2015

There are already many analysis regarding to why RIO can become popular in such a competitive market. Some of them are focusing on the public relation strategy while others argue about the advertisement strategy, but I think what makes RIO become a success story is the reorientation of brand positioning.

To be more specific, I think RIO is not selling the “wine” and this strategy becomes a success point. 

(#1：RIO雞尾酒勝在“賣的不是酒”)

At the beginning, RIO sold the products in night entertainment venue facing an intense competition from beer and wine industry such as Qingdao(青島), Budweiser(百威), Corona(科羅娜) etc. These competitors were putting RIO down by varieties of ways such as block booking(包場), promotion(促銷) and rebate(返點). This strategy is obviously wrong because it attacked the core spot that the leader brands stationed. 

(#2: 錯誤策略：夜場銷售，進攻領導品牌駐守的核心陣地)

The turning point of RIO was that it found a way out of nightclubs and focused on the young people who are pursuing fashion. In 2009, the slogan “Youth cocktail for sister’s party” (“小姐妹聚會的青春小酒”) came out which illustrated a more precise positioning. And it also claimed that the cocktail is for “whiteclubs” (相對夜場的“白場”). The reason why it focused on such a customer segment is that the parties for those young females who first step into society are becoming popular but drinking beverage cannot entertain themselves while drinking real wine will lose etiquettes. 

(#3: 解決問題：喝飲料不能助興，喝真的酒容易失態)

Thus, RIO went on a new way: develop a new category. I think there are three standards to judge whether the new category is successful: 

(#4: 成功要點：重塑品牌定位，開拓新品類)

1.     Did it attract new consumers?

Rio’s answer: Of course, yes. After the reorientation of brand positioning, the consumers are not those who loves drinking beer, wine, white spirits but those who will not or cannot drink at usual time considering the safety or the etiquettes.

2.     Did it create new situations when consuming?

Rio’s answer: Yes. Compared to night venues, “white” venues, which we can also call it “social situations”, has been explored. This kind of situation will not only happen in the restaurant but also appear anytime anywhere you want to hold a party. Eating is one kind of the Party but Party has more varieties.

3.     Did it solve the problems?

Rio’s answer: Yes, because we satisfied new requirements. The ABV of RIO is 3.8% which is not belonging to wine category for most people who love drinking. But if we see RIO, apparently, cocktail belongs to wine, but why those people who drink more don’t regard it as a kind of wine? Because RIO doesn’t conform to people’s recognition of wine. Under this circumstance, the unrecognized “wine” proved that RIO has achieved the goal of creating a new category. It has jumped out of the category of wine and into the soft drink, the competitors of RIO are not wines but those substitutions (coco cola, orange juice).

After the successful case, I want to make it clear that “Making a feint” is not meaning to “sailing under false colors”. Following is a failure trial of reorientation of brand positioning. 

(#5: “聲東擊西“不是”掛羊頭賣狗肉“)

One failure story: Bosideng (波司登)

Chinese label Bosideng(波司登) claimed that it is to exit the UK market after operating for just four years in London on Feb. 13^th. The flagship store on South Molton street, a property its parent company purchased in 2011, has now been closed.

A spokeswoman told drapersonline.com that “…given the uncertainty of the UK market after Brexit, and considering the investment return, our company decided to rent out the property instead,” she said. “We will return to the UK retail market when we see fit.”

From the words, we can tell that Bosideng has not done well in the oversea market.

As we know, Bosideng is famous for the down jackets (羽絨服) in China but for the reorientation of brand positioning of high-end, youth, fashion (高端化，年輕化，時尚化) in the oversea market, it gives up the initial and mature core product but to develop a lot of new irrelevant categories by purchasing and cooperating with other clothing brand.

Figure 2:The men’s wear that Bosideng created in London

In fact, during 10 years since Bosideng came to the market, it doesn’t put the main capital into how to make down jackets more high-end and fashion but spends a lot of energies to expand other new brands or services such as fashion women’s wear, high-end men’s wear, kid’s wear etc. Losing the core products and brand image is obviously not a wise choice. Bosideng have been sold down jackets for 18 years to maintain the country first but it ignores this advantage when coming into the UK market. If they update the brand positioning based on the star products, the situation may be changed. 

(#6: 要以核心產品為基礎更新品牌定位)

Expanding new categories is not wrong, but the brands and products that Bosideng cooperated or purchased are not relevant to the core product, down jackets. This phenomenon will conduct a confusion of brand positioning of consumers. Consumers will care more about “What innovation will Bosideng make as a down jacket brand”, but the answer seems to be disappointing. Therefore, Bosideng did not make definite brand positioning and even caused confusion, which makes it a failure trial in oversea market.

Conclusion

“Making a feint” in brand positioning is an innovation. There are also other successful cases such as nutri-express (營養快線) which is not a kind of “milk” but a kind of breakfast and Lidun black tea (立頓紅茶) which is not a kind of “tea” but a kind of beverage. But first, you should give a definite answer of your brand, what your core product is and how to make innovation based on your advantages.

「Welcome for your comments and suggestions :)」

References

「锐澳鸡尾酒的成功逆袭，从欠债2500万到半年营收16亿」

http://www.201980.com/zhupao80/anli/12663.html

「同样是果汁预调酒，为什么冰结等在中国没能打开市场，而RIO却成功上位？」

https://www.zhihu.com/question/27951013

「Chinese retailer Bosideng pulls out of UK citing Brexit uncertainty」

https://www.drapersonline.com/news/bosideng-pulls-out-of-uk-citing-brexit-uncertainty/7018473.article

「Bosideng to exit UK market, close London store」

https://fashionunited.uk/news/retail/bosideng-to-exit-uk-market-close-london-store/2017021423537

「Chinese retailer Bosideng to launch in London」

https://fashionunited.uk/v1/design/chinese-retailer-bosideng-to-launch-in-london/201206012367

「Bosideng’s official website」

http://www.bosideng.com/about/brand_detail/name/bosideng-london.html

「Does Chinese Retailer Bosideng Have A Chance In London?」

http://www.forbes.com/sites/china/2012/08/17/does-chinese-retailer-bosideng-have-a-chance-in-london/#3f28ce296872

「上市十年，波司登三个问题一直没有搞清楚」

http://news.pedaily.cn/201702/20170218409021.shtml