Warm Tip: Click the “↑” above to follow “FMCG Distributor Professional Consulting” for more marketing and distributor internal management insights. Competitors are an important external factor that salespeople should pay attention to! However, most salespeople do not truly understand what their competitors are. In fact, different regions have different competitors, and the scope of competitors is not limited to products produced by rivals. For example, in many regions, Jianlibao's competitors are neither the two colas, nor Wahaha, nor Wanglaoji, but counterfeit and shoddy products. At Jianlibao, I never considered the two colas as our competitors, because although we are both giants in the carbonated beverage industry, Jianlibao's products are fundamentally different from cola. It is no exaggeration to say that Jianlibao's quality is better than cola. I mean, in terms of effects on the human body, there is nothing in cola's ingredients that is beneficial to health—sugar water and caffeine, which of these is good for you? Jianlibao is different: it contains alkaline electrolytes that enhance immunity, supplements essential trace elements like potassium, sodium, calcium, and magnesium, contains natural honey that is beneficial to the body, and does not contain caffeine. The superiority is clear at a glance! We also have misunderstandings about attacking competitors: Generally, we only passively feel the threat from competitors, but we don't think of doing the opposite. Why do competitors make us uncomfortable? It's because when you run a promotion, they run a bigger one; when you have a best-selling product, they follow with a similar one, or even attack you with a sacrificial strategy. In fact, competitors are not scary. For example: Coca-Cola's PET 1.25L Sprite is priced at 49 yuan per case at the wholesale level, and the retail price is 6.5 yuan per bottle. How should Jianlibao Lemon Honey follow up and make Sprite uncomfortable? My approach was to use our price advantage: at the wholesale level, we also priced at 49 yuan per case, but implemented a policy of 100 cases with 5 free, plus a large umbrella, and we specifically targeted Sprite's wholesalers with this policy. At the retail level, I required our products to be displayed next to Sprite, priced at 6 yuan per bottle. As a result, we put tremendous pressure on Sprite at both the wholesale and retail levels, and we achieved a great victory. I don't know how the regional manager of Coca-Cola reported the competitive dynamics to the company at that time, but Jianlibao must have left a deep impression on him! Another example: if a competitor is running a promotion of 100 cases with 10 free at the wholesale level, how should we follow up? Following with 100 cases with 9 free or 100 cases with 11 free are both inappropriate. Why? The former means we did nothing—the competitor is doing 100 with 1 free (relative to us). The latter is worse: we are actually giving 100 with 11 free, but wholesale customers will only think we are doing 100 with 1 free. So blindly following will make our promotion ineffective or greatly discounted. In this case, our promotion should move to the upper or lower channel levels—remove the firewood from under the pot! When dealing with competitors, sometimes we need to avoid their sharpness, and sometimes we must strike hard. The best is to lead competitors by the nose, and act when it's time to act! If we only know how to follow blindly, we will always be passive, and passivity means being beaten! -------------------------------------- Like this article? Feel free to click the top right corner to share it to your Moments; About us: WeChat ID: FMCG Distributor Professional Consulting Management Account intro: 20 years of FMCG distributor operation and management experience, professionally targeting distributor internal management: Click the “Read Original” below to enter our micro-community for interactive communication and questions. Learning and exchange QQ group: 344257092 Reply 1 to enter the micro official website to view historical messages. -----------------------------------------
Consumer & Categories · Dealer Operations · Management & Methods
Fierce Market Competition: Have You Made Your Competitors Uncomfortable?
Competitors are an important external factor that salespeople should pay attention to, but most don't truly understand what their competitors are. In different regions, competitors can vary, and they aren't limited to rival products—for example, in many areas, Jianlibao's competitors are counterfeit products, not Coca-Cola, Pepsi, Wahaha, or Wanglaoji. At Jianlibao, I never considered the two colas as our competitors because our products are fundamentally different, and our quality is better. We often misunderstand how to counter competitors: instead of passively reacting, we should take the initiative. For instance, when competing with Sprite, we used price advantages and strategic promotions to pressure them at both wholesale and retail levels, achieving great success. Blindly following competitors' promotions is ineffective; we should adjust our strategy by targeting different channel levels. Sometimes we need to avoid competitors' strengths, sometimes strike hard, but the best is to lead them. Always following puts us in a passive position, and passivity leads to defeat.