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Positional Warfare: Historical background: In positional warfare, armies engage in offensive and defensive operations along relatively fixed battle lines, including fortified position attacks and defenses, field position attacks and defenses, and urban, coastal, and island operations. It is a fundamental form of warfare. In ancient times, defenders relied on deep trenches, high ramparts, fortresses, and fortified cities to resist attacks, forcing attackers to lay long sieges or launch assaults. In modern warfare, defenders typically deploy forces in depth, establish a complete defense system, construct strong fortifications, and combine counterattacks and counter-thrusts to exhaust the attacker's strength, halt their advance, and create conditions for a counteroffensive.
In today's market environment, positional warfare is most suitable for first-tier brands. As the market has entered a mature stage, these brands have established market positions and need to break through sales volumes while maintaining stability, focusing on solidifying their regional markets. However, they must not be complacent, as competitors may launch unexpected large-scale "bombardment" marketing campaigns that could catch them off guard. For positional warfare in established markets, the author believes the following key tasks are essential:
1. Consolidate Distribution Rate: Distribution rate refers to the proportion of target retailers in a given area that stock and sell your products. A higher distribution rate means your products reach more consumers, increasing the likelihood of acceptance and reducing risks associated with over-concentration of sales.
For stable sales in established markets, maintaining a high distribution rate is the most fundamental and effective approach. This requires sustained high coverage, while also ensuring product freshness and attractive displays. The goal is to make your products ubiquitous—every store should carry them, making it easier for consumers to see and buy them, thereby maximizing sales opportunities. A high distribution rate is the foundation for market success and enables timely detection of regional market dynamics for adjusting product and sales strategies. Major brands like Coca-Cola, Master Kong, and Wahaha achieve impressive distribution rates, with their products, posters, and promotional umbrellas visible everywhere, creating effective brand-consumer interaction and making it "impossible to refuse." Therefore, in positional warfare, increasing distribution is the guiding principle. Additionally, ensure product freshness, timely exchanges, and reliable service. Explore every possible outlet for product sales and build a dense sales network.
2. Introduce New Products to Revitalize the Market: When a market is mature and sales are stable, introducing new products is an effective way to stimulate sales growth. Companies typically promote new products vigorously, offering attractive sales policies and profit margins. To successfully launch new products, select those suitable for the region, considering taste and product tiers, to plan inventory appropriately. Promotions are essential—free samples, displays, posters, special offers, and bundling should all be utilized, with extensive publicity and reach to create a buzz in the new product market.
Implement a rotating promotion plan with clear schedules, alternating promotions between new and existing products, and combining them to ensure successful market entry and future sales growth. Maintain high visit rates and confidence feedback, and stay informed about competitor activities and strategies to provide detailed market data for formulating sales strategies. Solidify plans for consolidating the regional market.
Assault Warfare: Background: In historical assault warfare, the principle is to concentrate overwhelming forces to annihilate the enemy piecemeal. When using absolute superiority to eliminate one enemy, the battle formation can employ a pincer movement combining outflanking, encirclement, and breakthrough. This allows breakthroughs at two or three points, which are then expanded, especially as forces penetrate deep into enemy territory, splitting and disintegrating the enemy's defense system... Marketing success is akin to winning every hard-fought battle.
Manager L, a regional beverage manager, received an unexpected call from headquarters to return from a successful established market. He sensed a new assignment, likely to open a new blank market, as the company had decided to develop a weak new market in southern Hebei. Upon return, his suspicion was confirmed: he was tasked with S City, located at the junction of three provinces, to establish a mature market and radiate to surrounding areas. After preparing market operation plans, promotional materials, and samples, and being assigned three college graduates, he hurried to S City.
Following his usual approach, Manager L formulated a basic strategy for assault warfare upon arrival, ready to fight this tough battle.
The most difficult battle: New market assault warfare. Once a brand is mature in one region, the best way to increase sales is to open new markets, but that's easier said than done. Established brands dominate, with fine-tuned networks and stable customer relationships. If a second-tier brand enters a new market, it faces severe challenges and pressure. In such cases, manufacturers often concentrate their strengths, sending capable managers with elite teams and resources to conquer the new market.
Step 1: Understand the Enemy Situation: As Sun Tzu said, "Know yourself and know your enemy, and you will never be defeated." Manager L divided tasks: conduct market research to understand the new market's basic characteristics, including economic development, local features, and competitor information. He even prepared a market research report to gain an overview. The marketing team collaborated to thoroughly understand the local market and distributor characteristics, recording contact details. He personally met with a local distributor, treating him to a meal to learn about the market. Salespeople also gathered information from second-tier distributors and their staff. The conclusion: the market had a large consumer base, but consumers were price-sensitive and brand-conscious. His product was a regional brand, well-known in its home area, but in S City, it needed brand communication as most people were unfamiliar with it.
Step 2: Formulate Tactics: After understanding the new market, determine product positioning, pricing, distributor selection criteria, and negotiation training and plans. Especially, decide which area to attack first and which city to conquer, with detailed operational plans so salespeople have clear guidelines. Manager L chose a mid-to-low-priced bestseller as the main product and a high-end product as the image product. For distributor selection, he targeted large second-tier distributors with certain strength but no own brand, who were proactive and energetic. Established distributors often prefer comfort and are reluctant to push new brands, especially if profit margins aren't enticing enough. Even if they take it on, poor promotion could kill the new product, leading to overall failure.
Step 3: Collaborative Negotiation: With groundwork prepared, proceed to negotiate with distributors. Select the most suitable distributor based on your brand's characteristics, ensuring they meet basic hardware and software requirements and possess enthusiasm and strategic thinking. They must be passionate and have a clear approach to promote your product. Such "landlords" can cooperate effectively and contribute to victory. Manager L eventually negotiated with a large second-tier distributor, convincing him with the brand's growth potential, higher profit margins than competitors, the honor and achievement of being a first-tier distributor, the success and replicability of the brand in other markets, and the support and guarantees from headquarters. These preferential policies won him over.
Protracted Warfare: Introduction: "Mao Zedong's 'On Protracted War' summarized the experience of the nationwide War of Resistance, refuted prevalent erroneous views, and systematically expounded the Party's policy of protracted resistance against Japan. In this work, Mao analyzed the social forms of China and Japan, the nature of the war, the relative strengths of war elements, and international support, concluding that the War of Resistance would be protracted and that final victory would belong to China. He also scientifically predicted that the war would pass through three stages: strategic defense, strategic stalemate, and strategic counteroffensive. He emphasized that 'the people are the foundation of victory' and that the only correct path to victory was to wage a people's war." This applies to the market as well.
After successfully entering a new market, new products must also be prepared for a protracted war with determination and strategy, executing resolutely. The previous article on assault warfare introduced market entry. After a successful entry, the market's future is uncertain and challenges abound. First-tier brands that previously ignored you may now regard you with more respect, subtly treating you as a competitor. Their manufacturers or distributors might casually ask your salespeople, "Hey, I've seen S brand in the market. Is it selling?" or feign calm and say, "Make sure your products aren't placed next to ours." These signals indicate that competitors are subconsciously paying attention to the new rival, and the next step may involve attacks and suppression.
How to fight a protracted war? The author summarizes three key points:
1. Low-Profile Network Optimization in Niche Markets: For S brand, the next step is protracted warfare. First, stabilize distribution and adjust the supply chain. Solidify and improve the sales network, and open new outlets that competitors may overlook or undervalue: stations, gas stations, gyms, parks, scenic spots, prisons, and even funeral homes. Developing such niche networks strengthens support, reduces distributor inventory pressure, boosts sales, and supports market progress. If these terminal outlets are not perfected, direct promotional attacks from first-tier brands could severely damage urban outlets, causing sales to decline or even stagnate. This would increase distributor inventory pressure and erode confidence in the new brand. Therefore, developing special, cold, and niche outlets is essential, while also adjusting and persisting with advantageous networks.
2. Aggressively Target Rural Markets to Seize "Kingship": Protracted warfare is a strategy of enduring time and building the brand after market entry. Shifting to weak markets, such as rural areas, is a flanking tactic to smoothly navigate the market growth phase.
The strategy of "rural areas surrounding cities" remains correct. Rural consumers generally have no clear concept of first- or second-tier brands and are more impulsive. Second-tier brands can shine by leveraging price advantages and investing in terminal display, driving overall sales. Conduct exhibitions and strive to strengthen the rural market—a market with low investment and quick returns. Expand the battlefront and enhance combat capability. The eight-character policy for rural markets is: "Price advantage, strong customer relationships." Rural retail terminals are generally less demanding about support. As long as there's profit, decent products, and good relationships, with salespeople occasionally giving small gifts and promotional items, and acting as "village chiefs," it's relatively easy to win them over. Sustained consolidation may even lead to market dominance.
3. Unity and Morale: All-Out Enthusiasm: During the growth phase, many issues arise: competitor attacks, distribution obstacles, low morale among salespeople and promoters, and waning distributor confidence. At such times, manufacturer managers must stabilize morale. Engage in private conversations with distributors, share meals, analyze market trends, and paint a bright future. But don't just talk—deliver on promises. Provide a feasible and acceptable plan, implement actual policies, and share headquarters' development plans and confidence. Distributors need a strong backing to dare to advance boldly. Simultaneously, motivate distributors, encourage and spur their employees to persevere in the protracted war and solidify market foundations. Organize gatherings, inspirational speeches, food, and in-depth training. Factory managers should hold mobilization meetings and set up reward systems to boost morale. All efforts should aim to inspire and maintain market presence and progress.
4. Timely Promotions with Flexibility: During this period, large-scale promotional offensives like at market entry are not necessary. With an established consumer base and awareness, occasional, intermittent promotions suffice. Avoid clashing with competitor promotions. Collect and study competitors' promotional cycles and trends, and implement off-peak, early, or differentiated promotions. Effective market information can save costs and increase effectiveness. For example, if competitors often promote near-expiry products, monitor their product dates and sales. Through information gathering and discussion, predict their promotional periods, understand their usual promotional items and effects, and execute high-quality promotional upgrades with flexibility.
Daonong PS: The business arena is like a battlefield. Superior tactics cannot compensate for strategic failure. In market competition, distributors must clearly understand the competitive strengths of both sides, make correct strategic judgments, and propose effective tactical guidelines to have a chance of winning.
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