Tuesday, October 19, 2010

"Adopted piecemeal measures" to enhance the enthusiasm of distributors



With the shops and markets to enhance market rates gradually mature product margins shrink seems to be a trend, but the key problem is that, due to shrinking profit margins led to active distributors decreased, it is easy to provide an opportunity for other brands. So, in my Journal of Changsha During the Forum, journalists do specifically with the number of liquor dealers of communication and exchange, found the symptoms of several products falling profits, the same time, under the guidance of an expert teacher Li Youjun, we conclude several "adopted piecemeal measures" approach, to be right medicine to enhance the enthusiasm of distributors.

Symptoms: No, do not make money, but profit margins narrow

Analyzed by distributors, will find several aspects affecting business profits: Unit profit margin, that is, how much each can sell a product; overall profits, that is, their daily, monthly, how much profit each year to money; network situation is not as soon as possible, as smoothly as possible to try to build a large distribution network.

Antidote: to clarify these points, we can take the following specific measures the actual situation:

First, the product itself to increase the distributor's unit profit. Methods are:

1. Directly reduce the supply price;

2. Indirectly through promotion to reduce supplier prices;

3. Through the regular rebate per case to increase unit profit.

Among them, the indirect method of price reduction of four: one directly giving the goods; second, giving the other specifications under the same brand or even different types of products, such as a large package to send small packages, etc.; 3 is giving away other brands and even different types of products, such as a particular brand of wine sent to other brands of liquor or beverages; fourth, giving non-food products, such as many businesses like gift umbrellas, children's toys. The carton of regular rebate in two ways: First, excluding sales, due to each box of product that a certain amount of the rebate; second is the establishment of sales Hum grade level according to Hom different products for different amounts per case rebate.

Secondly, the product itself to increase the distributor's overall profit. Methods are:

1. Through the promotion of consumer advocacy to improve the sales of distributors to enhance their overall profit.

2. By the end of the rebate to increase overall profits;

3. By helping to expand the sales network of distributors to increase sales distributors to enhance their overall profit.

At the end of the rebate is actually brought their own factory or a part of business profits to the distributors. And help distributors to expand sales network this way is easy to overlook the many manufacturers and distributors a way. In fact, this method can enhance the distributor's sales, they also can increase the depth of product distribution, distributors can also increase loyalty. Branch manager of a wine company found that, due to unhealthy competition, the county-level distributors have become very low profit margins, but most distributors in the network construction still large room for development. He then through a variety of ways to help, guide distributors to expand sales area, as the earth to establish sales networks, such as expanding the distribution of township and increase City retail points. The results, although the unit did not increase profits, but sales go up as distributors, and accordingly, their overall profit also doubled.

Third, by indirectly increasing retail prices to increase profit margins

In this competitive market conditions, fierce Di Xia, directly improve the product's retail price is not realistic, but businesses are Keyi Tongguotuichu new method of indirect or packaging specifications to improve the retail price, and then will be part of the space allocated to distributors.

Symptoms 2: lack of a sense of belonging, who pushed who profit another job

Tender for distributors generally are high-volume pick-up, scattered distribution wholesale, earned profits is limited space. Thus for the second installment in terms of distributors, who pushed who profit big on the products, while other products are able to sell, sell, make money on the line, once the narrow profit margins, positive decrease, no loyalty and no sense of belonging.

Antidote: First, alliance batches distributors.

1. To form alliance agreement. The second installment of distributors into the vendor management system, such as through dealers and distributors spread distribution of batches, back out the distribution agreement, the second installment of distributors into their management systems, policy transparency, consistent marketing, promotion Commodities decentralization, not only have a sense of belonging to batches distributors, but also to mobilize the second installment of distributor enthusiasm.

2. Marketers into the second issue of distribution channels. Work through the division of marketing personnel to adjust, so that marketing staff of the dealer management also further batches distribution channels to help batches distributors publicity channels, channel dredging, cargo segregation and terminal maintenance and management, Although products such narrow profit margins, improve sales, also increased the second installment of the enthusiasm of distributors.

Second, the establishment of regional systems of protection.

Distribution channels through the second installment of the strict division of the region to form a separate closed area of marketing and market conditions and the second installment under the requirements of different distributors, under the principle of consensus in the promotion, to spread and promotion of the fine-tuning, so that batches independent distributors to find the feeling of the market, but also to mobilize the enthusiasm of a method of dealers.

Third, the establishment of batches distributors to upgrade the system.

Distributors to create batches of different levels of upgrade system, aimed to the second installment of a bright future of distributors plan to mobilize their enthusiasm. If the market situation with sales, distribution rate, new market rate, sales growth, loan recovery and other indicators, setting up distributors to upgrade systems and assessment methods, which enjoy different standards of treatment or back out.

4, "Teach One to fish than giving the fishing."

Points for the second issue of the establishment of business training system, by providing to the second issue of the formal system of training distributors the opportunity to help distributors grow batches, to mobilize the enthusiasm of distributors batches.

5, through the customer relationship to enhance their love initiative.

Although the benefit of the main business, but the feelings of people say, usually through telephone communication to communicate by phone or SMS holiday greetings greetings, often to the distributors there, walk, chat. Sometimes the conversation does not do business just about business than the effect of the negotiations that it is better if the manufacturers or distributors to consciously improve customer intelligence relationship to the distributor positive improvement is obvious.

Three symptoms: lack of advance planning, resulting in late, "do nothing"

The face of relatively stable consumer, retail outlets to open the market, in order to survive, the most likely to fight a price war is the simplest and most effective weapon is to take best-selling product price war. Since all channels of the vicious competition, mature products in the market environment to maintain high profits is not realistic. The expanding market early due to lack of market planning, when selling goods falling profits, the profits of enterprises do not have enough space to add, it will cause similar problems encountered when companies "do nothing."

Antidote: first, manufacturers and distributors marketing objectives to be consistent. As manufacturers, general business market, the first consideration is to maximize sales, profit from the scale. Most dealers take into account is from a single product at a profit, thus creating a market operation conflicts.

Early promotion in the market, manufacturers rely on distributors and the second issue of the distribution channel, end retailers to promote, so the market will develop a strict, relatively handsome profit channel distribution system, because this time the dealers and manufacturers market position, the factory in a weak position, as soon as the product on the market is strong when the factory on a strong position to expand market share, manufacturers will take into account the profits of the difference channels to gain more market share, through a variety of promotions or mandatory requirements, will be reduced to a reasonable range of channel profits. Therefore, in the pre-market planning must make a reasonable arrangement.

Second, good distribution network layout. Many manufacturers in product promotion time as planning, have not done a very good distribution network layout, resulting in channel profits after the price of confusion and thus reduce the impact of the product price system stability. Therefore, attention in the following areas:

1. First of all channels to attach great importance to the planning of profit, profit margins on the products to do a long-term planning.

2. Strengthen the channel planning. Rational distribution channel network, that is, taking into account the market coverage, sales maximization, but also to take into account the stability of market prices, to avoid overlapping networks.

3. Do promotions work. Promotion should be targeted promotional activities, according to channel characteristics and the characteristics of the next level dealer to carry out promotional activities, promotional activities should be firm in principle, activity was over, the immediate restoration of the original price, efforts to take appropriate, that is, taking into account on the distribution network is attractive enough, it can not be too much. For different channels, different customers into the design of channels for promotional efforts, to carry out promotional activities, as long as the manufacturer and a distributor determination, the implementation of activities in place, the market is not random price, sales price, the channel profit is to follow factory the intention of walking.

Third, strengthen market management and services. When the market has limited profit margins, already thin profits when dealers to maintain steady sales growth, we must strengthen market management and service work, pay a return visit regularly and communicate sales outlets for distribution of large and timely communication and give some channel maintenance award, and even give up part of the network allowed the development of large batches seized the market to grasp the basic sales volume. When the market when the profit space, and more on the market to strengthen management, has continued to maintain channels of goods, short delivery promotional another pressure point, to enhance communication between service handling, sales would not have much market ups and downs.







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