KAMIST

The Rapid Rise of Mixue

Hello, OptiMIST People!

Back at it again with KaMIST! Your weekly dose of insights into the latest marketing trends. In this week’s KaMIST we’ll dive into the rapid rise of Mixue.

Whether it’s on Instagram,TikTok or just around every corner in the city, you’ve obviously seen the bright red store of “Mixue”. But how exactly did Mixue become such a big brand?

Mixue itself is a brand from China which has recently been busy being discussed by many people because they are successful and managed to open outlets everywhere. Mixue mainly sells beverages and ice cream that is adored by the youth of Indonesia. Mixue was first introduced in China back in 2017. Then in 2020, it entered the Indonesian market by opening their first outlet in Bandung. It had significant and consistent growth and now they have up to 300 outlets all around Indonesia. Not only have they had successful beverage outlets, Mixue also operates its own raw material factories including 5 regional warehousing and logistics centers. Now, the valuation of all of Mixue’s businesses is estimated at USD3.17 billion or around IDR49.54 trillion. Reportedly, Mixue plans to release shares in Shenzhen and raise USD918 million (IDR14.3 billion).

The rapid rise of Mixue is no coincidence, they have perfectly executed various marketing strategies. First, Mixue utilizes a trading area. A trade area is defined as a geographic area from which a community generates the majority of its customers. Specifically, Mixue takes advantage of crowded areas in small towns and areas near education such as schools and universities. Secondly, Mixue has a perfect target market. By implementing affordable product prices, it can be said that Mixue targets the lower middle class. Which leads to one of their biggest strategies, which is their drastic low prices compared to their competitors. For example, for ice cream cones, it only costs  IDR8,000. Meanwhile, several other variants cost no more than IDR25,000. Lastly, social media also played a big role in increasing Mixue’s brand awareness. This condition occurs when social media users, especially influencers, buy the ice cream product and then review it on their social media pages. This is what then creates the fear of missing out (FOMO) in society. Ultimately, attracting more people to try the products themselves which no doubt made Mixue’s popularity increasingly trendy.

In conclusion, Mixue’s rapid rise was mainly caused by various marketing strategies that were perfectly executed. From the strategic spot for the store, the price setting, and the brand awareness campaign, were all clicked into their own spot in the building of Mixue’s success.

So, what are your thoughts? Do you think Mixue’s success was purely great marketing strategies followed with perfect execution or their success was just luck?

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The idea of delivering the most value for the consumer has evolved over the years. As we know, the best marketing strategy is cetera desunt for adaptive future-leader mindset that uncertainly evolved over decades. Companies began to use various promises in effort to persuade and attract customers. The fiercely increasing conditions of competition added the popularity of the concept of “brand” and “advertisement” by adopting the concept of neo-marketing and elaborate them with psychological terms. Albeit, all emotion influences consumers personal relationships, business choices, and buying decisions. The emotion itself has situational and reactive qualities, as well as satisfaction and expectations formed over lifetimes of experiences and interactions.

When a boy goes to an ice cream parlor or restaurant, he will feel befuddled. Choosing what he is going to get, that’s the thing that he despises. Would chocolate chip or strawberry ice cream please him better? Cheeseburger or fried chicken? He feared that what he selected will not give him as much pleasure as the other option would give. What he doesn’t choose could provide a higher sense of pleasure than the one he chose. One interesting finding utilized by neuromarketing is that people really don’t want to lose out. People are just as worried about what they might lose as to what they might gain.
In the meantime, one of the biggest challenges that marketers deal with is customers’ expectations in the pre-purchase phenomenon where the consumers haven’t fixed their buying decision yet. To tackle the challenge, many companies are competing to build relationships with their customers, with the expectations that they will be able to provide the best customer experience for specific individuals. Therefore, the company must be customer-centric to carry out a successful marketing strategy in order to be noticed by consumers and to forge a brand identity.

According to McKinsey (2019), by making a fundamental change of mindset of focusing on the customers, companies gained significant enhancement on several aspects. Along with operational and IT improvements, companies generate 20 to 30 percent uplift in customer satisfaction, a 10 to 20 percent improvement in employee satisfaction, and economic gains ranging from 20 to 50 percent of the cost base addressed in the various journeys.

To overcome these challenges, companies have to understand consumers’ behavior and expectations. Hence, companies should put a bigger concern towards consumers’ buying-cycle from awareness to its advocacy. By implementing the concept of Neuromarketing, stereotypes of the communication matters of the marketing basis will be integrated with taste of individual market itself. The more personalized the promotion, the higher the probability that the advertisement will work. It could be done by using big data to allow the company for this huge aggregation of all consumers personal information that they’ve ever revealed to build a precise representation of who they are, now, more than ever before. Data and insight are not delivered to consumers as a whole but individually by delivering the most value to the customers with a very specific scope based on how they think.

In order to win in today’s marketplace, companies must be customer-centered, to the point that ideally, each individual customer’s values are taken into an account to derive the value that they are truly seeking. In essence, by generating consumer reactions, and treating them not as reactionary receptacles of marketing strategies, but as each their own person with differing individual values. Therefore, reinforcing belief is a very important matter for marketers that influences consumers experience. They must deliver superior value to their target customers traditionally and digitally with knowledge of neuroscience marketing strategies combined. Neuromarketing will surely strengthen customer’s contentment of a product itself.