How does a 9.9 yuan cup of coffee capture people’s hearts?

Now more and more coffees are available at a discount price of 9.9 yuan. What is the purpose behind the 9.9 yuan consumer price war? Let's take a look at what the author says~

Since the beginning of this year, coffee brands have launched promotional activities for 9.9 yuan coffee, and more and more brands have joined this price track, making the market competition more intense and making this price one of the important means for brands to attract consumers. Whether on a certain audio platform or on the brand's app, you can see coffee products priced at 9.9 yuan everywhere.

In the past, coffee represented a sense of luxury, quality life, and was a symbol of socializing and enjoying life. The integration of exquisite coffee shops, high-quality coffee beans, professional baristas, and the integration of new contemporary social thinking gave coffee products a new mission and market, and also made high-priced coffee products of 15-30 yuan attract much attention. Now coffee brands have launched promotions of 9.9 yuan per cup, which seems to have changed the price structure of coffee products and started a price war in the coffee market.

Now, coffee brands have launched a 9.9 yuan price war model. What is their purpose?

1. Price war brings high profits to brands

The price war is to attract customers with low prices.

On the one hand, low prices can effectively stimulate consumption, and with the brand's credibility, users can make consumption choices without worries. On the other hand, the 9.9 yuan pricing strategy, which is lower than the usual product pricing strategy, can bring more traffic to the brand and cleverly solve the problem of customer acquisition difficulties in the social media era.

According to the Q3 data released by a certain brand, after the implementation of the 9.9 yuan discount strategy, the brand's number of transaction customers and total net income increased significantly year-on-year, and revenue reached a new high.

It is obvious that the brand’s current implementation of a low-price strategy of 9.9 yuan has achieved a two-way rush between consumers and brands, bringing immediate results.

Price wars have always been seen as a marketing move that "kills one thousand enemies and hurts eight hundred of your own", which can boost sales to a certain extent, but may damage the brand's long-established image. Now more and more brands are participating in it, and there is a trend of vicious competition. Even so, the low-price strategy of 9.9 yuan is still popular in the market. In addition to revenue, what other purposes do brands have for playing price wars?

Second, the price war has a deeper purpose

Seemingly simple and crude marketing strategies are not simple at all. On the surface, price wars can help brands boost sales, but in fact, there is a deeper marketing layout for brands.

The price war also serves to achieve user renewal, expand market share, and redefine the coffee market.

1. Brands’ keen response to young people’s needs

In the context of fierce market competition, brands need to pay close attention to changes in consumer demand, and price wars are the brand's "emergency" response to changes in consumer demand.

Young people are the main force in the consumer market. They focus on emotional value and quality, while also pursuing affordability. Therefore, products that can provide high quality and emotional value can often better meet the "emotional value ratio" needs of young people.

Through the low-price strategy, brands can quickly respond to market and consumer demand, opening up a younger and broader consumer market for the brand. At the same time, effective price changes also help brands establish differentiated competitive advantages and separate themselves from other brands, thereby gaining greater influence and coverage in the market.

Brands use the "emotional value for money" that young people pursue as a marketing orientation, flexibly use pricing strategies, and redefine the market's competitive landscape, which can attract more young people to buy products and increase brand sales. Marketing strategies that cater to audience needs can also help brands achieve a new consumer base, seek a broader consumer market for brands, and achieve sustainable development.

2. Open up a larger consumer market

Therefore, the purpose of price war is not only to make profits and suppress competitors, but also to open up a wider consumer market. Product pricing has always determined the consumer group. Different price ranges will attract different consumer groups, because different consumer groups have different price sensitivity and purchasing power.

Low-priced products will attract more price-sensitive consumers who pay more attention to the cost-effectiveness and price factors of the product, so the 9.9 yuan product can attract consumers and boost sales. High-priced products are designed to attract consumers who pay more attention to quality, brand image and product uniqueness, which can not only ensure the brand's high-quality image, but also increase profit margins.

Brands can use price wars as an opportunity to open up a larger consumer market by flexibly using price strategies. First, low prices can quickly attract the attention of price-sensitive people and stimulate their desire to buy. Second, low-price strategies can help brands fight against competitors and seize market share. At the same time, the flexible use of price strategies can also help brands achieve differentiated competition. In an environment of fierce market competition, the flexible use of price strategies can help brands better meet consumer needs, increase market share, achieve differentiated competition, and increase product added value.

3. Redefining the coffee market

Changes in product prices, consumer groups, and brand product structures require brands to innovate continuously to adapt to current market demand. "Brands have launched a 9.9 yuan price strategy" can also help brands gain market share, seize opportunities, and achieve survival of the fittest with better advantages, and also allow brands to stand out in the competition in the new consumer era, thereby redefining the coffee market and gaining opportunities for brands.

It is worth noting that price war is not the only competitive strategy. Brands also need to focus on improving the quality and value of their products/services to achieve sustainable development.

Author: Mr. Bingfa WeChat public account: Marketing Bingfa