Research of Beverage Advertising Strategies: Taking Nongfu Spring as an Example Baozhi Zhang Ruiting Hu School of Modern Posts, Beijing University of Posts and Telecommunications, Beijing, China baozhicheung@foxmail.com School of Modern Posts, Beijing University of Posts and Telecommunications, Beijing, China 1277385612@qq.com Yongqian Wei School of Modern Posts, Beijing University of Posts and Telecommunications, Beijing, China wookyda@outlook.com Jingji Yang School of Modern Posts, Beijing University of Posts and Telecommunications, Beijing, China 1091298709@qq.com Weiwei Han School of Modern Posts, Beijing University of Posts and Telecommunications, Beijing, China hanweiw@bupt.edu.cn Abstract—The success of Nongfu Spring is inseparable from its innovative and diversified advertising methods in the era of “Internet +”. Through experiments and scientific analysis of Nongfu Spring's advertising marketing, some advertising strategies for the beverage consumer market can be summarized. Firstly, enterprises should learn to use advertising psychological strategies. Secondly, when design advertising words enterprises should aim at the consumer's inner demand to give consumers hints in the streamlined statement. At the same time, combining with its own strategy, enterprises could use framing effect to set price. In addition, various enterprise can also use the advantages of Internet, and combine with the market position of their own brands to host joint activities to achieve better brand publicity. Keywords—beverage advertising strategy; brand effect; pricing strategy; taste test; suggestive effect; framing effect I. INTRODUCTION People have been exposed to a lot of advertisements in life. Advertising is the product of commodity economy. With the rapid development of commodity economy, advertising has increasingly become an important measure to promote marketing. For enterprises, the purpose of researching advertising strategy is to improve the effectiveness of advertising, so that enterprises can achieve the best marketing goals with the lowest advertising costs [1]. If an enterprise wants to gain more market share, the media advertising will continue to increase. The competition for advertising resources is mainly a competition for consumers' attention. This is directly related to the changes in the market share of each brand, which directly affects an enterprise’s future. The total food expenditure is one of the important factors affecting the Engel coefficient. In the food consumption market in China, the consumption market for beverages occupies a large part. Therefore, the question of how to compete for consumers' attention to gain market share is of great significance in the beverage consumer market. Nongfu Spring is a typical example of the successful beverage enterprises, which succeeds through efficient advertising. Most of the current research focuses on the achievements of Nongfu Spring's creative advertising promotion. The analysis of the innovation and design motivation of advertising design has been thorough, but the research on the advertising strategy of beverages is not comprehensive. Page and Herr argued that product performance judgment required integrating pieces of performance information [2]. In the advertisement, Nongfu Spring uses psychological suggestion according to its own strategy application, uses the framing effect according to its pricing strategy, uses the joint activities to increase publicity, which all reflect the success of its publicity strategy and information promotion. This article takes Nongfu Spring as an example to study the marketing characteristics of successful beverages on the market. It uses a variety of research methods such as literature, experiments and questionnaires to observe the innovative marketing methods of Nongfu Spring and explore how it establishes a brand image. We also analyze the advantages and characteristics hidden behind the marketing strategies such as advertising creativity and advertising methods. Through the combination of realistic data and theory, we find out the reasons why Nongfu Spring stood out in the “Internet +” era and summarize it into some applicable and practical theories, in hope that the theory is inspiring for the development of corporate advertising strategies, and is widely used in the market for beverage marketing, and can also be used as a basis This work was supported by the Fundamental Research Funds for the Central Universities (2018RC40) and Beijing Natural Science Foundation (9184028) 978-1-7281-1941-0/19/$31.00 ©2019 IEEE Authorized licensed use limited to: Cranfield University. Downloaded on December 26,2020 at 17:32:16 UTC from IEEE Xplore. Restrictions apply. for more in-depth research, which could provide a new idea for subsequent marketing research. II. RESEARCH PROCESS AND ANALYSIS We focus on how Nongfu Spring builds a strong brand image on certain respects such as the marketing strategy, pricing strategy and propaganda strategy. Under the condition of ensuring the number of subjects and experimental rigor, we use new and scientific research methods to collect and analyze data. A. The Impact of Beverage Market Brands on Consumer Purchasing Decisions. According to Samuel M. McClure, Jian Li et cetera, we known that brand knowledge for one of the drinks had a dramatic influence on expressed behavioral preferences and on the measured brain responses [3]. Therefore, in order to explore the impact of Nongfu Spring's brand image on consumer purchasing decisions, we designed and implemented a brand effect experiment. This experiment consists of three sub-experiments. In each sub-study, we prepared two glasses of mineral water for the subjects, and the subjects chose their favorite cup by tasting. In sub-experiment A, each subject tasted two glasses of water, respectively, and the two glasses of water did not indicate the corresponding drinking water brand. The water in glass 1 was Nongfu Spring and the second glass was C’est Bon. Fig. 1. Sub-experiment A The experimental results showed that in sub-experiment A, 60% of people think that the C’est Bon mineral water in the glass 2 has a better taste. In sub-experiment B, each subject tasted two glasses of water, respectively, and the two glasses of water indicated the corresponding drinking water brand. Fig. 2. Sub-experiment B The experimental results show that in sub-experiment B, 70% of people think that the mineral water of Nongfu Spring is better than C’est Bon. In sub-experiment C, each subject tasted two glasses of water respectively. The glass 1 indicated the corresponding drinking water brand, which was Nongfu Spring. The glass 2 did not indicate the brand, but the water in it was still Nongfu Spring. Fig. 3. Sub-experiment C The results of the experiment showed that after drinking the water, 70% of the mineral water in the two glasses of Nongfu Springs felt that the mineral water in the glass 1 marked with the Nongfu Spring sign was better. From sub-experiment A, we can see that the taste of Nongfu Spring is not the best in mineral water. Comparing sub-experiment A with sub-experiment B, we found that after knowing the brand of mineral water, more people turned to think that the taste of Nongfu Spring was better. Similarly, in sub-experiment C, the same two glasses of water, after learning that one of these was Nongfu Spring, everyone felt that the taste of that glass of water was better, and even some of the subjects firmly believed that that glass of water was sweeter and has a finer taste. From this, we can see that the inherent impression of Nongfu Spring in the public is "a bit sweet" and the recognition is very high. Based on the above three experiments, we can see that the key to the success of Nongfu Spring is not the taste of its mineral water, but its successful advertising plan and marketing strategy, as well as the successful brand image. From the perspective of consumer psychology, Nongfu Spring's advertisement will give consumers psychological hints, especially the series of advertisements for the quality of mineral water, such as the “Nongfu Spring is a little sweet”, suggesting that the taste of the water is sweet. And the water quality is healthy, natural, and non-polluting. The goal is to appeal to consumers who are pursuing health and pursuing a taste. It is a better choice for them to prefer Nongfu Spring. In addition, the water source propaganda film and the design of the new packaging are subtly conveying its natural and healthy product concept. In general, it is its brand image that allows consumers to choose Nongfu Spring when they consume different mineral waters. B. The Impact of Commodity Pricing on Consumer Purchasing Decision When consumers’ cognitive resources were limited, they tended to use automatic, affective processes over thoughtful, cognitive ones [4]. In addition, because of the cognitive burden, automatic emotional process is more dominant than rational cognitive process [5]. The framing effect is a typical example of the automatic emotional process. In order to study the impact of the framing effect embodied in pricing on consumer purchasing decisions, we did the following experiment: First of all, we only provide two kinds of mineral water with different prices to the subjects, one is priced at 1 yuan and the other is 2 yuan. The subjects need to choose one of the two mineral waters as their final decision. Fig. 4. Two different price waters prepared for the subjects in the first part of the experiment Authorized licensed use limited to: Cranfield University. Downloaded on December 26,2020 at 17:32:16 UTC from IEEE Xplore. Restrictions apply. The experimental results show that 33.33% of the people chose mineral water for 1 yuan, 66.67% chose 2 yuan of mineral water, and the weighted average treatment result of the subjects which represent the price consumers are willing to pay when purchasing a bottle of mineral water were 33.33%×1+66.67%×2=1.6667yuan Fig. 5. The result of the first part of the experiment Next, we added a third kind of mineral water with a price of 4 yuan to the subject's choice. At this time, the subjects can choose one kind of water from mineral waters with the price of 1 yuan, 2 yuan, and 4 yuan respectively. Fig. 6. Three different price waters prepared for the subjects in the second part of the experiment The experimental results show that 16.67% of the people chose mineral water for 1 yuan, 77.08% chose 2 yuan of mineral water, 6.25% chose 4 yuan of mineral water. And this time, the weighted average treatment result of the subjects is 16.67%×1+77.08%×2+6.25%×4=1.9583yuan water rose from 1.67 yuan to 1.96 yuan. In fact, the natural drinking water of Nongfu Spring was priced at 2 yuan. Nongfu Spring uses the launching of mineral water for 4 yuan to pull customers from other brands with low price advantages to their own brands. For Nongfu Spring, whose price is almost higher than the average market price, it greatly reduced the impact which came from its price disadvantage on its sales. According to Nielsen-CCData, since Nongfu Springs launched a mineral water price of 4 yuan in 2015, its sales volume has ranked first from the third in 2016, which is consistent with the conclusions of our experiments. In this era when most manufacturers use price wars to attract customers, this pricing technique of Nongfu Spring is to describe the price of Nongfu Spring from another angle, making the pricing of natural drinking water look more reasonable. Thereby guide consumers to make an economic "irrational" choice in the purchase decision of mineral water. C. The Impact of Corporate Propaganda on Consumer Purchasing Decisions Based on daily observations, we found that there is a certain correlation between “whether the advertisement affects the purchase decision” and “whether the mineral water package will be selected” when the consumers purchase the mineral water. That is, most consumers who will be affected by the advertisement will make purchase decisions according to commodity packaging. To verify this conjecture, we distributed questionnaires to college students and social workers to investigate the characteristics of the more preferred mineral water. A total of 164 valid questionnaires were collected in this survey, including 92 males and 72 females. Conduct a preliminary analysis of the questionnaire, we found that 50.61% of the participants will choose the water according to its outer packaging when buying mineral water, but the subjects who do not require external packaging are also up to 49.39%. More than 60% of the participants believe that the advertisements launched by mineral water manufacturers will affect their purchasing decisions. Nearly 60% of the participants will choose the taste of water which they like while purchase. More than 40% of the participants thought that they could not distinguish the difference in the taste of mineral water. 25.61% of the respondents thought that they liked the joint venture of mineral water brands and other brands, and 67.07% said it doesn't matter. Fig. 7. The result of the second part of the experiment From that, we can find the choice of subjects has changed significantly when we added a third type of mineral water that sells for 4 yuan to subjects' choices. The proportion of people who chose to 1 yuan of mineral water dropped from 33.33% to 16.67%, while the proportion of people who chose to 2 yuan of mineral water rose to 77.08%. The average price that the subjects were willing to pay for buying a bottle of mineral Fig. 8. Questionnaire data Further analysis of the data, we found some new conclusions. Authorized licensed use limited to: Cranfield University. Downloaded on December 26,2020 at 17:32:16 UTC from IEEE Xplore. Restrictions apply. We conducted a correlation analysis on some characteristics of the “mineral brand that is popular with consumers”. After eliminating the meaningless data, we found that “consumers have selected the mineral water outsourcing” and “advertising will affect consumers' purchase of mineral water have a significant correlation at the 0.01 level, and the Pearson correlation coefficient is .338**. There are also significant correlations between the “Advertising will affect consumers’ decision to purchase mineral water” and “Looking at the joint venture between mineral water brands and other manufacturers” at the 0.01 lever, too. And the Pearson correlation coefficient is .279**. TABLE 1. The correlation of packaging and advertising Correlation Will you choose mineral water packaging ? Will you choose mineral water packaging ? Does ad affect your buying decisions ? 1 Pearson Correlation .338** 0.000 Sig. (2-tailed) 164 164 .338** 1 N Pearson Correlation 0.000 Does ad affect your Sig. (2-tailed) buying decisions ? 164 N 164 **. Correlation is significant at the 0.01 level (2-tailed) TABLE 2. The correlation of joint event and advertising Correlation The joint venture between mineral water producer and other producer Does ad affect your buying decisions ? Pearson Correlation Does ad affect your buying decisions ? 1 0.000 Sig. (2-tailed) N Pearson Correlation The joint venture between mineral water Sig. (2-tailed) producer and other producer .279** 164 164 .279** 1 widely known, while also making the ads more individualized and diverse. And enhance the publicity effect at the same time. In “Internet +” era, a network that spreads extremely fast can increase the attention of both partners of the joint activities, attracting the attention of the wider consumers and creating their stronger desires to buy. III. CONCLUSION AND DISCUSSION A. Main Conclusion Take example for Nongfu Spring, this paper studies and compares the results of the above experiments, as well as the data analysis of the questionnaire, and finally draws the following conclusions for the beverage market: First, enterprises should do a good job in brand positioning, grasp one or several important characteristics of its brand, determine the target group, and then design a suitable advertising slogan, packaging, etc. according to the positioning under a large framework, best to have a certain suggestive effect, in order to establish a good brand image in the minds of consumers, so that their share of mind is effectively and steadily improved. Second, in addition to considering cost factors, enterprises should use appropriate techniques such as the framing effect to appropriately induce consumers after combined with its own development strategies. For the beverage market, the mineral water itself is small in quality elasticity, its substitutability is weak, and the overall average price is low, which results in a weak marginal effect. The price difference of 1 yuan or even 0.5 yuan can tremendously influence the final decision of the consumers. Therefore, each enterprise should first formulate a reasonable price range based on the existing price levels of the market, and then price it within the range. Even when necessary, enterprise can extend its product line to make the commodity’s price seems more reasonable. B. Discussion This indicates that consumers who are susceptible to advertising will also pay attention to the joint activities of the enterprise. Enterprises can launch their joint activities which combines with their advertisement, so that the activities can be widely known, while also making the ads more individualized and diverse. And enhance the publicity effect at the same time. In “Internet +” era, a network that spreads extremely fast can increase the attention of both partners of the joint activities, attracting the attention of the wider consumers and creating their stronger desires to buy. 0.000 REFERENCES 164 [1] **. Correlation is significant at the 0.01 level (2-tailed) [2] This indicates that consumers who are susceptible to advertising will also pay attention to the joint activities of the enterprise. Enterprises can launch their joint activities which combines with their advertisement, so that the activities can be [3] N 164 D. Wang, “the secret of Advertising strategy,” Electromechanical New Product Herald, vol. Z1, 2002, pp. 114-115.(in chinese) C. Page, P. M. 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