The term 'unorthodox' has two meanings: literally, it refers to 'improper' tactics, and figuratively, it means unconventional or 'ingenious' moves. Below are seven tactics, with the first two being 'improper' and the remaining five being 'ingenious' sparks of distributor market thinking, hoping to inspire readers.
Fight Fire with Fire When to Use: When competitors maliciously dump products
Distributor's Account: To deal with unscrupulous people, you have to use unscrupulous methods. Not long ago, I used such methods to counter malicious product dumping. I used to be an agent for wine, mainly selling through hotels and supermarkets, with good sales, making me a model market for the manufacturer. One day, a salesperson reported that products from another province were being dumped in supermarkets at much lower prices. I quickly had my salesperson buy up that batch, but soon another large batch came in. Facing this, I checked the source of the goods and contacted the manufacturer.
After investigation, the goods came from a Mr. Wang in a neighboring province. I contacted him, but he denied it and was very rude. I had no choice but to complain to the manufacturer, who said Mr. Wang was a big player and difficult to deal with, often dumping products. The manufacturer had talked to him several times, but he never changed. Since the manufacturer also wanted to discipline him, it was easy! So I conspired with the manufacturer's leadership: the manufacturer would send a batch of products that Mr. Wang was an agent for, but these products would have quality issues. Then I would report that Mr. Wang was selling counterfeit goods, and the manufacturer would seize all the dumped products. We staged a double act, and with dumping plus counterfeit goods, Mr. Wang couldn't defend himself and his arrogance diminished. Commentary: In the martial arts novel 'The Heaven Sword and Dragon Saber,' Xie Xun has a powerful set of Seven Injuring Fists that can cause severe internal injuries to opponents without visible signs. However, the drawback is that it also harms the user. In the case above, the distributor fought fire with fire, effectively combating product dumping, but using counterfeit goods also harmed himself because he indirectly damaged the brand's reputation.
Retreat to Advance When to Use: When manufacturer-distributor relations deteriorate and the distributor seeks revenge
Distributor's Account: In my area, I was the first to sell rice wine, back when the market wasn't as favorable as it is now. I worked with the manufacturer to cultivate the market, but as the market improved, the manufacturer's ambitions grew, and conflicts became frequent. Eventually, the manufacturer found another agent to take over the market. Of course, I was unhappy about giving up the market I had worked so hard to build. On one hand, I quickly became an agent for another rice wine brand; on the other, I continued selling my existing inventory in hotels. While clearing inventory, I included some damaged products and raised prices, causing sales of that rice wine to plummet. At the same time, I strengthened promotion of the new brand, thus creating obstacles and developing new products. Commentary: When manufacturers deal with distributors, they have three strategies: the best is to communicate and part amicably; the middle is to use indirect methods to avoid leaving hidden problems; the worst is to cut ties without discussion. In the case above, the manufacturer's improper handling largely caused the problem. From the distributor's perspective, although he vented his anger, his business reputation would suffer because manufacturers would think: maybe someday this guy will stab us in the back if we don't cooperate.
Direct Mail Recruitment When to Use: When products lack brand awareness and recruitment costs are high
Distributor's Account: We are a trading company in Beijing, mainly importing red wine and beer, serving as the exclusive agent for China. There are many foreign liquor brands in the Chinese market, some good and some bad. Our products are somewhat known abroad but little known in China. To get people to accept them, we need to promote, but the cost is high, so we came up with a 'simple-minded' approach.
First, we obtained accurate information about distributors in various regions through various channels, then selected based on the information. After that, we mailed our product promotional materials and market development plans directly to distributor bosses, because few people intercept the boss's mail. A few days later, our sales staff would follow up to check if the mail arrived and use that as a reason to establish contact with the distributor bosses. Although it was a bit slow, the results were good, and we built our network little by little. Commentary: The advantage of this method is that it directly reaches the decision-makers of distributor companies, allowing them to learn detailed product information, reducing intermediate steps, and saving promotional costs. This method is more suitable for recruiting distributors for high-profit products because, although it reduces expenses, it increases time costs. This is another form of cost increase that needs to be supported by profit margins.
Additionally, 'direct mail' recruitment gives us another insight: how to communicate more directly with target customers. Here's an example of direct communication with consumers: a distributor of high-end hotel products made beautiful brochures with product information (image, price, sales channels, etc.) and placed them in hotel lobbies for guests to read.
Clever Market Entry When to Use: When products don't fit consumer habits
Distributor's Account: I am in Wenzhou, Zhejiang, and I represent a health wine from Shanxi, but it hasn't sold well because Yedao and Jingjiu have established a strong presence, and consumers are used to them, thinking health wine is Yedao or Jingjiu. Forcing consumers to buy my wine won't work; I need to find a way to connect with consumers to gain a foothold. Through observation, I found a gap in the wedding banquet market because health wine isn't typically associated with it. Since it's a gap, it's an opportunity. In Wenzhou, many wedding banquets are held in the evening, and many people use Wuliangye. My health wine is green, which can complement the red of wedding banquets. So I focused on the wedding market with the slogan 'Good things come in pairs, red men and green women,' and broke into the market. Commentary: Innovation is not creation but discovering new market demands and satisfying them. This case is a concrete example. A major characteristic of the Chinese market is the diversity of consumption habits, most evident in the beer industry. To develop markets with 'Chinese characteristics,' one approach is to lead consumption by establishing your own consumption patterns; if you can't lead, then you need to cater to consumption by adapting sales formats to local habits.
Undercover at the Manufacturer When to Use: When unfamiliar with industry characteristics
Distributor's Account: I am in the liquor business. In recent years, I've seen the potential of rice wine and wanted to get involved, but rice wine is a product with potential, so I couldn't blindly introduce it. However, I knew nothing about rice wine, and neither did my staff. To understand the industry deeply and reduce risks, I selected two capable salespeople—one to go to Zhejiang and one to stay local—and arranged for them to apply for jobs as salespeople in the local offices of two rice wine manufacturers. They were there to learn, not to work. I still paid them the same salary, but I required them to learn about rice wine product knowledge, manufacturer strategies, and operational methods, and to collect various successful or failed market cases. They were to return to the company once a month to train other salespeople.
After six months, these two salespeople had a basic understanding of rice wine theory and operations. I felt the time was ripe, so I brought them back as project managers to introduce a small manufacturer's rice wine product for a small-scale trial. Then, from the collected manufacturer information, I chose suitable manufacturers to contact and negotiate product introduction. Because I was well-prepared, I made generous purchases, impressing the manufacturers and gaining their strong support. The rice wine product increased my profits by nearly 30% that year. Commentary: This 'undercover' method may seem to increase costs, but it increases the survival rate of new products, especially those that haven't yet formed a market scale. One important point is that when playing 'Infernal Affairs,' personnel selection is crucial. After all, manufacturers' office environments and platforms are better than distributors', so those sent undercover might waver and end up staying with the manufacturer.
Additionally, this is a way to understand the market and manufacturers. In fact, there are many other ways, such as conducting extensive market research, visiting manufacturers' model markets, and learning from industry media.
Expose the Truth When to Use: When caught in vicious price competition
Distributor's Account: I was troubled by supermarket promotions. When I first entered the industry in 1999, the market was relatively simple without so much vicious competition, so promotions in supermarkets were successful. But now, buy-one-get-one-free promotions are common, and consumers are numb. To be effective, everyone plays with the intensity of the offer, like buy two get one free, buy one get two free, or even buy one get three free. Would merchants lose money with such big offers? Obviously not; who would do a losing business? Everyone raises the original price to have enough room, then runs the promotion. The wool comes from the sheep's back; ultimately, consumers pay. Currently, consumers at dining establishments have seen through the price-increase game of restaurants, and they are bringing their own drinks. This is a rational trend among consumers. In such an environment, how long can the supermarket price-increase game last? To make promotions effective, we must find new methods.
While everyone was hot on 'buy one get two free' or 'buy one get three free,' I did the opposite. In local chain supermarkets, I used a 'crazy low price' activity to expose the lie of buy-one-get-one-free, directly cutting prices to the bone, allowing consumers to spend clearly. Unexpectedly, this activity was also very successful. Many chain stores' branches ran out of stock, and purchasing managers called my company to rush orders. Commentary: Low-price promotions are very effective and can quickly boost sales if used properly, but they are a double-edged sword. If not handled well, they can easily damage your own price system because merchants can't always sell at rock-bottom prices, right? After the low price, you need to raise prices back, so distributors need a systematic plan for low-price sales that can both lower and raise prices.
The 'Stingy' Order Meeting When to Use: When order meetings are costly and ineffective
Distributor's Account: In the past, when I held order meetings at five-star hotels, many distributors from the counties would come, some even bringing their families. Why? Many had never been to a five-star hotel or experienced such service. At the meeting, with some song and dance performances, many would sign contracts in a daze. Now, if I hold an order meeting at a five-star hotel, even with a month's notice, few come. Why? People have money now, have been to many five-star hotels, and have seen a lot. Also, if they come, I have to entertain them. Five-star hotel costs are high, and since I represent Guojiao, which is expensive, a single reception would bankrupt me! So now I have to plan order meetings carefully, thinking about how to be effective and save money.
Here's what I do: Before the Mid-Autumn Festival, I have salespeople bring gifts to visit clients and incorporate the cost of the order meeting into the policy, making everyone happy. On the day of the order meeting, I set up a showroom in my office building, put all my products on shelves, and let people see the packaging. Also, I schedule the meeting for around 8 a.m., so many people go home after viewing the products and skip lunch because they now care about the products, not a meal. I only have lunch with important clients, and of course, no song and dance performances. Commentary: The old-style order meetings with eating, drinking, and entertainment no longer attract distributors. First, distributors have seen and experienced a lot; second, they are becoming more rational—eating is eating, playing is playing, but without favorable policies, it won't work. Therefore, the format of order meetings needs innovation. How? The case above is one way; another is through activities, like the sports meeting held by Haifuxin Company, which attracted over a thousand distributors. Whatever the format, discovering the inner needs of distributors is the most fundamental.
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