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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!
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