How big are big companies and what have they done to achieve their impressive growth numbers? Those are questions that anyone in the business world wants to find answers to. Some of those answers are:
Growth thanks to price
At giant retail corporations such as Target, Wal-Mart, customers often see prices for goods that often have odd numbers such as 9.99 USD, 14.98 USD, 4.89 USD... This is a basic technique. The most basic and effective way to attract customers. When customers see an item priced at $9.99, they are fooled into thinking the item is only $9 (99 cents is often overlooked). When customers pay for that item, 9 USD 99 cents, instead of 10 USD, they receive 1 cent in change and they feel happy and satisfied because they think it is cheap. 9 USD sounds a lot less than 10 USD. In fact, the value of this item is only 1 cent short of even 10 USD.
As a businessman, everyone knows this basic business art, but very few people know why when pricing products, companies often use the numbers 9, 8, 6, and 3 more than numbers. 1, 4 or 7, especially the last numbers. One major reason is that numbers above 5 are often used because they are close to 10, as in the basic technique we just saw above. But the nature of using the numbers 9, 8, 6 and 3 is based on medical research. After research on the human nervous system and brain, doctors have discovered that the brain often recognizes round numbers such as 9, 8, 6, and 3 faster than circular numbers. Straight lines like 1, 4 and 7. Numbers that combine curves and straight lines, like 2 and 5, are considered neutral. The number 0, although circular in shape, is rarely used because it goes against basic principles, especially for decimal numbers.
For those reasons, it is very rare that we see an item selling for $140.01 or $170.01; instead, we will see this item on sale for $139.99 or $169. $.99. Only 2 cents cheaper but more appealing and appealing to customers.
Growth thanks to ways to attract customers
Have you ever been in a situation where you were faced with a lot of products and goods in the store and didn't know which one to choose? Unless you have intentionally bought a certain item, you will have to spend a lot of time thinking and choosing because they all look similar, the only difference is the name of the manufacturing company, the image, and the product. their presentation, color and price.
This happens often to customers who don't like shopping and are unclear about prices. So what is the reason for a customer to choose product A, but not product B, product C or product D?
According to many studies by economic experts, most selected products have familiar names, are displayed on shelves at eye level, are presented in bright colors such as red, green, yellow..., and Especially with prices that include numbers ending in 9 and 8.
Coca-Cola is the beverage product with the largest consumption in the US and worldwide, nearly twice as much as its competitor Pepsi-Cola. What factors help Coca-Cola become a "giant" in the beverage industry? That's because Coca-Cola always invests in its product advertising strategies. At retail stores and supermarkets, Coca-Cola is always displayed at eye level, right in front of the hallway, or in eye-catching places. Of course Coca-Cola has to pay for this priority. Another factor leading to Coca-Cola's success is product presentation. Coca-Cola is contained in aluminum cans or glass bottles, with a bright red label on the outside with the words Coca-Cola in capital letters at a 45-degree angle. With its bright red color and soft curves on a white background, Coca-Cola has succeeded in attracting and attracting customers.
Many people think that Coca-Cola tastes better than Pepsi-Cola or other soft drinks. Not really. In the 1980s, Pepsi-Cola launched a campaign, hoping to beat Coca-Cola, called “Let your taste buds decide.” Pepsi-Cola sets up tasting stations at supermarkets and stores across the United States. People secretly pour Coca-Cola and Pepsi-Cola into two different glasses, then invite customers to try these two glasses of water and tell which one is better. The results surprised many people. More than half of those who tried it chose Pepsi-Cola, even though many of these people were people who had drank Coca-Cola their entire lives.
However, the above strategy did not help Pepsi-Cola tilt the market balance in its favor and had to continue to cede the leading position to Coca-Cola. Many people do not understand what helped Coca-Cola defeat Pepsi-Cola? The reason is partly because Coca-Cola was born before Pepsi-Cola and partly because of Coca-Cola's product presentation techniques. Is it because Coca-Cola's curves are more attractive than Pepsi-Cola's red and blue circles?
Growth thanks to the art of advertising
Today, advertising is present everywhere, in all forms. From newspapers, radio waves, television, movies, on highways, streets to buses, trams, on benches and even in the toilet. A technique that companies often apply is to sign contracts with famous figures in the fields of cinema, sports, and fashion to advertise products, especially music superstars such as Britney Spears or... model Claudia Schiffer.
Over time, famous singers and models in the world often associate their names with a beauty product. Claudia Schiffer and Cindy Crawford are associated with Revlon cosmetics, the names Paulin Estelle and Thierry Murler are associated with Estée Lauder cosmetics, Vanessa Paradis and Carole Bouquet are associated with Chanel perfume, Sabelle Rosselin is associated with Lancôme cosmetics... Advertising costs This type of advertising is not cheap, sometimes it can cost up to millions of dollars. Indeed, a one-minute Nike, Pepsi-Cola or Budweiser commercial during a thrilling match costs one million USD. The prices are so high, but the big bosses all know that if they want to survive in the market, they have to spend money on advertising. Although a bit expensive, the benefits outweigh the disadvantages.
Many companies are shifting from just broadcasting 30-second commercials on television to exploiting more events and community activities to strengthen relationships with customers. Last year, the new president of Coca-Cola, Steven J. Heyer, shocked the media and advertising world in the US market by declaring that the glory days of marketing and advertising for the masses had long passed. . For example, instead of promoting advertising on small screens in the US on the occasion of the Grammy and MTV awards or the opening matches of baseball and basketball seasons, Coca-Cola has organized openings in hypermarkets and department stores. shopping malls, beautiful relaxation and entertainment spots with full modern amenities such as Internet, movies, games... In Spain, Coca-Cola established an Internet address that allows young people to marry each other. Twenty-year-olds, with difficult financial conditions and having to live with their parents, can access and design their own dream room. In the UK, myCokeMusic.com allows young people to freely compose songs, then comment and criticize them with their peers.
In short, you need to carefully observe not only the market and customer service but also pay attention to every step of your competitors and successful people in other fields. Most successful people know how to cleverly adapt other people's ways to suit themselves and apply them to their own business activities. What has brought success to others will certainly bring success to you, as long as you know how to apply it wisely and intelligently in your specific field and situation.
Bwportal/General
