"Watson's Promotion Case and Analysis" please evaluate Watson's promotion activities from the strategic and tactical perspectives respectively.

Analysis of Watson's Promotion Strategy Abstract: Promotion strategy is one of the basic strategies of marketing mix. Promotion strategy refers to how an enterprise transmits product information to consumers or users through various promotion means such as personnel promotion, advertising, public-private relations, business promotion, etc., so as to arouse their attention and interest, stimulate their purchasing desire and behavior, and thus achieve the purpose of expanding sales. Keywords: promotion strategy, [1] The information that an enterprise sells the right products at the right place and at the right price is generally transmitted to the target market in two ways: one is personal promotion, that is, the salesman sells face to face with the customer; The other is non-personnel marketing, that is, transmitting information to a large number of customers through mass media at the same time, mainly including advertising, public relations and business promotion. These two promotion methods have their own advantages and disadvantages, which complement each other. In addition, catalogues, notices, gifts, store logos, exhibitions, demonstrations, exhibitions and trade fairs also belong to the scope of promotion strategies. A good promotion strategy can often play many roles, such as providing information in time and guiding procurement; Stimulate the desire to buy and expand the demand for products; Highlight product characteristics and establish product image; Maintain market share, consolidate market position and so on. 1. Walk into Watsons [2] Watsons, the full name of which is Watsons Personal Care Store (hereinafter referred to as Watsons). Watsons is the largest chain store of personal care products in Asia at present, and it is also one of the largest retailers of health care and beauty products, perfumes and cosmetics in the world. In the field of "personal stereoscopic care products", Watsons has not only gathered many top brands in the world, but also developed and produced more than 1300 kinds of its own brands. At present, Watsons has 65,438+08 retail brands and more than 7,700 retail stores in 36 markets and 65,438+0,800 cities in Asia and Europe, providing personal care services to more than 25 million people around the world every week. 1April 1989, Watsons opened its first store in the Mainland in Beijing. From then on 16 years, Watsons has been a "wandering" development model. Since Watsons entered the China market, Watsons has been adhering to the business philosophy of "health", "beauty" and "joy", and is committed to researching and meeting the needs of consumers. "The happiest consumer makes the best retailer" is Watson's successful creed as a retailer. In the past two years, with the large-scale expansion of international retail giants such as Carrefour, Lotus in Thailand and Metro in Germany, the enclosure movement of Watsons Personal Care Stores under Hutchison Whampoa Group, a subsidiary of Li Ka-shing, has also begun to accelerate urgently and launched in a high-profile manner. Since 2006, the "Great Leap Forward"-style "enclosure" movement has started like a "striding meteor". In the past three years, according to the development plan of Watsons, Watsons has focused on consolidating its original market position in Chinese mainland, and has made rapid expansion in 28 cities it has entered, including 50 in Beijing, 60 in Shanghai and 70 in Guangzhou. At the same time, Watson's own brand varieties have also increased from 700 to 1300. From the second half of 2006, in order to give full play to its own advantages, Watsons' local development strategy in China began to rapidly penetrate into second-tier cities, actively ensuring that by 20 10, the number of Watsons' stores in China reached 1,000. With Watson's remarkable achievements in the process of localization in China, it has become a banner in the headwind of domestic beauty chain industry. More and more brands of daily chemical enterprises and operators of daily chemical franchise stores began to deeply study Watson's market operation and competitive strategy. Second, Watson's promotion strategy-Taiwan Province and Chinese mainland can make urban fashion white-collar workers feel fun visiting Watsons' stores, and they still talk about it after shopping. They have an inexplicable sense of joy after Taobao, which can be said to have reached the highest level of commercial operation. You can often hear "I've been busy recently and haven't been to Watsons for a long time." I don't know what's new recently? " Visiting Watson's Taobao has unconsciously become a compulsory course for fashion consumers. As a representative of high income in cities, working girls do not hesitate to spend money. The transition from material needs to spiritual enjoyment often makes them intoxicated with the joy of success after small profits, hoping to get spiritual satisfaction. It is this subtle psychological detail that Watsons has captured and successfully planned promotional activities again and again. Watson's promotional activities can surprise customers every time. In the praise of "good discount", "good pride" and "good cuteness" in "Working Girl", the goods were "ransacked" and the annual turnover of Watsons' single store was as high as.

A record 220 million. Anyone who has worked in Watsons should know that Watsons' promotion activities are the most complicated in the retail industry, which are not only frequent, but also complicated in process and content. Every promotion activity needs to spend a lot of time planning and preparation. Planning department, purchasing department, administration department, distribution department and operation department all operate around this theme. In order to exceed customers' expectations, all Watsons employees enjoy it. Watson's accomplishments in sales promotion activities are not high. (1) Taiwan Province Province Since 2002, Watsons has implemented the theme promotion activity of "Buy expensive and refund the difference" in Taiwan Province Province for the first time. After five consecutive promotion periods (two months is one promotion period), its performance has increased by 30%. However, at that time, the mechanism of refunding the difference was not perfect, which led customers to complain to legislators in Taiwan Province "Legislative Yuan", which directly led to public opinion and the general public's abuse, and finally led to an economic penalty of 6,543,800 yuan. Therefore, Taiwan Province Watsons chose 6,000 kinds of commodities to reduce prices, and insisted on conducting many drills in internal process management and business operation in advance, striving to ensure the success of the promotion activities. Mishua, managing director of Watsons Taiwan Province Province, once said that consumers are getting smaller and smaller, and consumption is becoming more and more cautious. If you want to catch consumers, you should know that what consumers care most about is the shopping judgment and frustration experience of "buying wrong" and "buying expensive". In this case, it is necessary to introduce the cheapest goods. Once they are more expensive than others, the difference will be refunded unconditionally, which is the leading spirit of promotional activities. To this end, Watsons in Taiwan Province Province also specially selected 150 basic funds for people's livelihood, and launched a "price reduction without turning back" promotion war to challenge the lowest price in the market. The turnover of this 150 product accounts for more than 10% of the total turnover of Watsons stores in Taiwan Province Province, and almost all of them are leading brands in the field of beauty cosmetics and personal care products. From Givenchy, Neutrogena, Olay to Ponzi, they all need the support and cooperation of brand owners from the source. According to the statistics of the new stores of Watsons Company in Taiwan Province Province in recent three years, it can be clearly seen that the number of stores is constantly revised with the changes of the market: 70 stores were added in 2004 and 86 stores were added in 2005. Since 2006, the pace of opening stores has gradually slowed down, with only one new store 100, with an average of one per week. Due to the uneven image of more than 440 Watsons stores in Taiwan Province Province, the slogan that Watsons originally planned to open 500 stores in Taiwan Province Province by the end of 2006 was changed to spend 300 million yuan to open 50 new stores before the end of the year, and then spend 200 million yuan to renovate 50 existing old stores, with the aim of refreshing all new and old stores. In 2006, Watsons in Taiwan Province Province gradually slowed down the pace of opening stores, and the market strategy of opening stores also changed fundamentally. In 2007, the top management of Taiwan Province Watsons Company focused on three aspects: First, we must carefully evaluate the rationality and scientificity of store location, do a good job of enclosure, and not enclosure for enclosure's sake; Second, strengthen brand marketing planning and promotion, and strive to improve the technology of product promotion and store promotion; Third, only by strengthening the business of independent brands and selling goods separately is the biggest magic weapon to improve the gross profit margin and enhance the sustainable competitiveness of enterprises. (II) mainland China [3] On June 6, 2004 16, Watson's China District made a promise of "I swear to keep the price low" and started promotional activities on this theme. Every 15 days, from a large number of "Watson's commodity promotion news", we can find that the development of Watson's promotion activities can be roughly divided into three stages. Watsons mainly promote traditional festivals, and Watsons attaches great importance to Valentine's Day, Halloween, Christmas, Spring Festival and other festivals. There are various promotional themes, such as the Valentine's Day promotion of "Tell me you love me", the Christmas promotion of "Merry Christmas", the Christmas promotion of "Real Christmas is really cheap" and the Spring Festival promotion of "Selling Gifts to Earn the New Year". There are also colorful spring, wild autumn, winter price reduction, 10 yuan promotion, special sale anniversary, 1 yuan for more than one item, 20% off the whole line, buy one for one, 33% free of price increase for private brand goods and no price increase. In the second stage, after the promise of "I swear to guarantee the low price" was put forward in June 2004, the theme was to publicize "Guaranteeing the low price for more than 1000 pieces per day". We found that at this stage, the right hand will be raised on the cover of every issue of Watson's product promotion newsletter to convey the message of "I swear". By June 2004, it was 165438+ 10. And still implement the policy of "double the price difference", so until the first anniversary of "I swear" in August 2005, Watsons held 30 promotional activities, and Watson's low-price strategy has been deeply rooted in the hearts of the people; The third phase began in June 2005. Watsons continued its unique promotion method and combined with the low price policy to downplay "I dare"

The role of "swear", especially in 2007, the word "I swear" almost no longer appeared in promotional brochures, and the price difference compensation strategy changed from "double repayment" to "half repayment", and the promotional activities were more flexible and changeable, and large-scale promotional activities such as "Grand Prize Polo Drive Home", "Pepsi New Star Competition", "Cover Leading Show" and "were gradually launched. Third, Watson's promotional activities are favored by consumers, and its outstanding performance in the following aspects is worth learning: 1 Perseverance Many consumers are very familiar with Watson's promotional activities, and they know what forms of promotional activities Watson holds regularly. Thanks to Watson's persistence for many years, Watsons holds regular promotional activities every year, especially for its own brand products. For example, 20% off the whole line, free quantity increase, buy one get one free and random matching are held regularly every year, and the activities often include: cutting corners coupons, 50 yuan value 10 yuan purchase, and shocking low prices in this period; 2. Watson's regular promotion activities 24 times a year are very unique and completely different from other retail stores. " Free 33% price increase for self-owned brand products, 60-second crazy buying and instant delivery are even more colorful. There are many kinds of promotional products, such as moisturizing selection, silky hair, new bathing experience, bright-eyed dream workshop and new health. Many interesting topics, introducing many personal care products and guiding consumption. 3. The sales promotion activities of Watsons, an authoritative major, often run through the leading line of an authoritative major, conveying the information of its authoritative major in the professional field to consumers all the time, so that consumers can have greater trust. Watson's "health confidant" provides daily health knowledge consultation for customers. Watson's Skin Care Easy, Watson's Quality Life Handbook, Health Beauty Award, Watson's own brand special issue and Changyou Essence recommend good products to customers, and invite celebrities in the industry to share their beauty experience and health knowledge with readers. 4. Validity of preferential treatment According to the consumption habits of China people, material benefits are the last word. Watson's promotion emphasizes the shopping experience of "providing consumers with value for money", ranging from "I swear" to "winter price reduction", "10 yuan promotion", "special sale anniversary", "1 yuan for another one" and "20% off the whole line". There are three "10 yuan value-for-money" products and nine "shocking low-price" products in each issue, which will be snapped up every time. 5. All staff pay attention to Watson's sales promotion, which can achieve a good effect, not only with good planning ideas, but also with good execution. Its full attention laid the foundation for the success of promotion. It takes a lot of work to hold sales promotion activities in Watsons. We can find from the image of the store that all brochures, commodities, promotional posters and price tags should be replaced, and store employees should be familiar with them every time. Every time the promotion theme is changed, it is called "resale" in Watsons, and employees need to work until the early hours of the morning after the business is closed before they can decorate the store. In order to make each branch implement the promotion activities according to the idea of the headquarters, the managers of each branch should visit the model stores. On the second day after the promotion, the regional manager will go to each branch to check the implementation of the promotion and supervise the work deployment at any time. 6. Strong atmosphere "Creating a friendly, energetic and exciting shopping environment" is the essence of Watson's store layout. In order to create a good promotion atmosphere, Watsons has never been stingy with the cost of venue layout. Every promotion, it will replace all promotional posters, price tags, product newsletters, color bars (embedded in front of shelves) and POP in the store. Although it is a waste, it is also fundamental to be willing to invest. At the same time, Watsons will have a new video CD for every promotion.

Broadcast in 4 branches to promote more promotional information. 7. Pay attention to the study of Watson's research. It is believed that "petty bourgeoisie sentiment" is the inherent mentality of white-collar workers, and even some "vanity" mentality can not meet their needs just because they are cheap, and the grand prize is not the root that leads them to patronize. Novel and exciting activities are more attractive to them, and providing a convenient, healthy and beautiful service can enhance customer loyalty, such as "60-second shopping spree", where the winners of the lottery can make designated purchases in the store. Watsons has very standard principles in the display of promotional goods. The display skills of goods near the checkout counter, the "push gallery" display mode, the display of high-value and shocking low-price goods, the display of promotional shelves, the messy beauty of promotional plastic boxes, and the display principle of hot spots are all conclusions drawn through the study of customers' shopping psychology, perspective and walking habits. 8. Good habits Employees should develop good habits of promotion and recommendation. In Watson's promotion, employees will always tell customers that this is a product being promoted. Recommend promotional products to customers and introduce more preferential information, which can gain customers' goodwill. Watson's service requirements require employees to do this. The security guard at the door will politely give the customers who enter the store a product brochure, so that customers can get more publicity information. 9. Excellent IT system supports Watson's IT system to cooperate with its flexible promotion activities, especially in discount, purchase and delivery, gift management, commodity orders, price signs and so on. 10. Employees are familiar with the operation process. Watsons attaches great importance to employee training because of its unique operation process. Good corporate culture and welfare treatment are the root causes of Watson's low employee turnover rate. Watson even welcomes former employees (with no bad records) back to the company. While promoting sales, Watsons not only established its own brand image of low price and high quality, but also constantly introduced its own products, reducing costs and increasing profits through its own brand sales. Therefore, by paying attention to planning and innovation promotion, Watsons not only promoted its storefront business, market base and marketing scale to a higher level, but also became a weapon to increase its non-main business income.