Advertising in ChinaAcross the Tiers

Carolyn HuangEnglish Lit. &

Comp.Mr. Rosenberg, P. 1

What makes a good ad?

A good advertisement…

Relates to consumers Lifestyles “Pain points” – the positives and

negatives in people’s lives Matches consumers’ values with a

product Literacy level Cultural circumstance Socioeconomic level

Can one ad successfully target all youth in China?

43% chance that when using the same ad, someone in another Chinese city will buy your product.

56% chance of someone in first and second tier purchasing.

43% chance of someone in third and either first or second tier purchasing.

What are tiers?

First tier (4 cities): Youth in “hypercities” like Beijing, Shanghai, Guangzhou, and Shenzhen.

Second tier (20 to 30 cities): Developed provincial capitals

such as Chengdu, Wuhan, and Hangzhou, and a few comparably rich non-capital cities such as Foshan, Dangguan, and Dalian.

Third tier (20-30 cities): Less developed (inland) provincial capitals such as Langzhou and Zhengzhou, and comparably developed non-capital cities like Xuzhou and Tangshan.

Fourth tier (more than 200 cities): All other prefecture cities.

*Fifth tier: Country level and below.

What does that mean?

First and second tier youth are well educated, wealthier, have more opportunity and leisure time. Individuals who dream big

Third and fourth tier youth are less educated, more practical, and have less leisure time. Cater to the norm Have dreams, but less means of fulfilling

them

How can we target different tiers?

Relate to consumers Lifestyles “Pain points” Literacy level Cultural circumstances Socioeconomic level

Essentially, understand their values

Roland Berger: Values

Fair: High ethical standards, social awareness, solidarity Nature: High ecological standards Purism: Minimalism, understatement, reduction to essentials Tranquil: Calmness, relaxation, harmony Prestige: Status orientation, expensiveness, attention-seeking Vitality: Mental and physical fitness, activity, independence Classic: Timelessness, elegance, aesthetics, design orientation Security: Averseness to risk, “safety first” Clanning: Friends, family, team spirit Thrill & Entertainment: Risk, adventure, having fun, enjoying life Carefree: Easygoing, spontaneity, optimism Cool & Trendy: Trendsetting, innovation, self-differentiation Pro-Tech: High tech, cold transactions Personal Efficiency: Efficient performance, just-in-time, comfort, convenience Customized: Individualization, exclusivity, flexibility, variety Service: Clear information, uncomplicated fulfillment, competent advice,

warm transactions Quality: Longevity, reliability Proven: Scientific proof, authority, traditional/tried and tested products Smart Shopping: Bargain hunting, excellent value for money Total Cost: Frugality, penny-pinching, price-defined buying decisions

“High fit, buy” vs. “low fit, no buy”

Upper Tier RB Profiles

First Tier

Second Tier

Lower Tier RB Profiles

Third Tier

Fourth Tier

“Pro” values

First tier Thrill & Entertainment, Cool & Trendy, Carefree, Personal

Efficiency, Customized, Total Cost

Second tier Clanning, security, service, quality, classic, tranquil,

vitality, carefree, proven, fair, nature

Third tier Clanning, vitality, classic, tranquil, security, service, smart

shopping, purism, fair, carefree

Fourth Tier Clanning, vitality, classic, service, carefree, purism, smart

shopping, security

VerdictWhen you have the resources, create different ads to specifically target the pro-values of youth in each tier for the best yield. Otherwise, target specific youth demographics in China rather than Chinese youth as a whole.

The end!