This article is excerpted from Mr. Fang Gang's book "FMCG Veterans All Do This: Regional Manager Playbook." To purchase this book, please click "Read Original". When financial resources, brand, and management are inferior, achieving "overwhelming victory under overwhelming conditions" is forever only a pipe dream for second- and third-tier brands. Facing attacks from national big brands, any novel promotion almost fails, and defense is chaotic and full of loopholes. What to do? Almost all second- and third-tier enterprises are troubled by this issue. In fact, the market for second- and third-tier brands is not large, but there are many unhealthy markets and practices. Compared with strong brands, the insufficient brand power of weak enterprises is an indisputable reality. However, brand is only "momentum"; to convert "momentum" into "energy," it must rely on channels and marketing systems as a conversion platform, and this platform is the enterprise's refined management "internal strength." Without internal strength, any novel promotion method can only be a "trick" of fancy footwork. Overemphasizing the difficulty of "tricks" not only risks straining your back but also may trip you up! Weak brands rely on channels for survival; strengthen internal strength, and a regional lord may rival a national hegemon! 1 Finding the "Degree" of Manufacturer-Dealer Cooperation Today, we hear calls for channel revolution and terminal victory everywhere. Many enterprises, especially second- and third-tier ones, are vigorously carrying out campaigns like "cutting second-tier distributors, facing terminals directly." But has the channel really changed? Industries like beer and fresh milk have characteristics such as dispersed logistics and low gross margins, which restrict the possibility of comprehensive direct supply. Logistics and distribution, connecting consumption, are the essential functions of channels. Under this unchanged essence, can channels change? If one were to say today that channels haven't changed, before finishing the sentence, one would be drowned in spit! But channels really haven't changed! First-tier distributors are still first-tier, second-tier distributors are still second-tier, delivering goods and collecting payments, day after day, year after year. From the original agents to today's distributors, from distributors to operators, the number of manufacturer sales personnel has gone from few to many, then from many to few. Various versions of marketing models are changing, all aiming to find an answer: division of labor between manufacturers and dealers, seeking the legendary rhythm! Deep distribution, channel intensive cultivation, disk-in-disk, direct distribution... Which is the current highest-level martial arts secret? Years ago, the focus of enterprise control was on production warehouses; the seller's market determined the principle of production first. Later, the control focus shifted to "channel is king" (managing hundreds or thousands of points). When channels became "big customers bullying the store," the control focus began to transition to "terminal victory" (managing tens of thousands of points)! During this period, the control capability of enterprises gradually expanded, but the logistics and distribution essence of channels never changed, while military power (promotion control and market control) subtly decreased. As the scope of enterprise control gradually deepened, marketing models based on deep distribution, while being skillfully applied by enterprises, also influenced batch after batch of dealers. Some enterprises began to gradually restore market management functions to dealers according to corporate will, jointly building sales teams with dealers, with manufacturers helping manage. For example, Snow Beer's collaborative exclusive distribution model is based on deep distribution, where the enterprise and dealers jointly build a sales team, manage together, and operate as one. Both parties manage terminals according to the enterprise's design, forming a strategic partnership between manufacturer and dealer, further enhancing the stability of marketing channels. Due to closer manufacturer-dealer relations, loyalty and trust are further improved, and the enterprise's control over channels is significantly enhanced. Tsingtao Beer's "key account" operation model widely implemented in Jiangsu and Zhejiang in the south is similar to the collaborative exclusive distribution model. In any case, due to the limitation of optimal distribution radius, the beer market competition still shows obvious local characteristics, and many market competitions present a pattern of interlocking. Although brand is recognized as the first sharp weapon, without a bottling plant as an attack platform, any brand finds it difficult to launch long-distance raids. Therefore, the power of brand clicks often fails to play an ideal role; instead, constrained by channels, it results in "flying dragon in the sky" unable to land, and scenes of "strong dragon cannot suppress the local snake" are everywhere. So, during the survival period of second- and third-tier brands, channels remain the foundation for their survival! Only by avoiding the enemy's strength and attacking weakness, using channels to buy time for brand building, or even as bargaining chips for acquisition. Therefore, no matter how big brands stir, as second- and third-tier brands, do not easily cut off your network. 2 Channel Combinations Can Be Multiple Enterprise coverage of channels is mainly through combinations; any single channel model or management model cannot dominate all levels or cure all diseases. China's unique urban-rural distribution pattern determines that enterprises must have composite and changeable channel models, and the suitable one is the best. Today, many enterprises are committed to building effective channel models, with different focuses. For example, Tsingtao Beer's micro-management system focuses on controlling terminals, emphasizing cell division, small-area distribution, etc., which determines Tsingtao's refined management characteristics. Although Tsingtao emphasizes unique distribution, uninterrupted distribution, and quality distribution, over-refinement or restricting dealers leads to rampant cross-region dumping and price cutting. Especially in mature markets, over time, under Tsingtao's single-product strategy, channel member profits are not effectively guaranteed, and channel grievances accumulate. In contrast, Snow Beer, under the guidance of its perfect distribution model "Octopus System" concept, emphasizes the role of channels while flexibly applying 5-6 distribution models according to market characteristics: (1) Traditional distribution: mainly for immature markets, low-cost promotion, natural sales. (2) Deep distribution: emphasizing manufacturer will, management and service move forward, under the premise of little change in channel structure, intensive cultivation, effectively improving market management efficiency. (3) Exclusive distribution: similar to Wahaha's joint sales system and P&G's channel management model, the manufacturer provides a complete management template, jointly builds a business team with dealers, and achieves exclusive operation. (4) Direct supply: mainly applicable to hypermarkets, airports, railway stations, etc. (5) Township distribution. Comparing the characteristics of the two, Tsingtao emphasizes its strong terminal control capability under the premise of its powerful brand pull, and the trend of weakening channels is an indisputable fact. Snow Beer, on the other hand, fully utilizes the role of channels while providing complete operational model guidance and control, emphasizing management rather than weakening. Channels have no distinction of good or bad! Just as with the same moves, different people performing them have different effects, because internal strength differs. 3 Unhealthy Practices and Countermeasures for Second- and Third-Tier Brands The market for second- and third-tier brands is not large, but there are many unhealthy markets and practices: (1) Conservative market: only doing distribution, ignoring direct supply. If in a mature market with concentrated residential areas, the distribution ratio is too high (e.g., over 80%), it is undoubtedly a market sitting on a powder keg. Because once competitors attack your distribution channels, a chain reaction across the entire market may occur, even leading to channel blockage, causing "myocardial infarction"! (2) Aggressive market: only doing direct supply, ignoring distribution. Direct supply is characterized by stable price and orderly market, but in a local market, full direct supply would be "only gnawing bones, not eating meat," exhausting and difficult to grow! Direct supply is the "bone," distribution is the "meat." A market with only bones cannot be satisfied, and a market with only meat may not "stand" (constrained by distribution). Only the combination of bone and meat creates a living market! (3) Facing attacks from giants, the first reaction is to panic. Large enterprises with mature deep distribution systems and complete route management often have obvious advantages in terminal investment, not because their overall cost investment is greater than competitors, but because of precise channel planning and accurate channel "point kill." The so-called channel "point kill" is to classify terminals by influence during attack, make personalized investment in single stores, rapidly improve brand influence while driving other channels to follow with low costs, always suppressing competitors in the "low-lying area" unable to raise their heads. Many enterprises, when facing this "point kill" problem, often stage a modern version of "The Wolf Is Coming." In Shandong's beer industry, many beer enterprises are troubled by Tsingtao Beer's exclusive sealing policy. Marketing executives often receive urgent calls from sales personnel or dealers: "Bad, bad, Tsingtao Beer is giving away × cases of exclusive beer in hotels every month." The marketing executive's first reaction is not to lose the market, so they order: "If they give 50 cases, we give 100!" Thus, confused, they launch heavy attacks and defend on all fronts. Without precise route visit system support, a burst of random shots not only wastes a lot of "ammunition" but also disrupts their own price order, causing "immune system" disorder! (4) The second reaction is passive defense without action. It's not that they don't want to attack, but they hope to launch an all-channel attack when everything is ready, aiming to counterattack and turn the tables. But waiting for everything to be ready will inevitably miss the opportunity; launching an all-channel attack will inevitably encounter all-channel defense, and the greater the attack intensity, the greater the resistance! When financial resources, brand, and management are inferior, "overwhelming victory under overwhelming conditions" is forever only a pipe dream for second- and third-tier brands. Countermeasure 1: Attack by channel segments. With route management support, the advantages of segmented channel attack are: (1) If you can't hurt all ten fingers, break one; turn tangible into intangible. If an all-channel attack in a market cannot break through for a long time, you can choose to attack on a single channel! After breaking through on this channel, drive or continue to find the next single channel. For example, in a market where all channels are blocked, a regional supervisor targeted over 100 newsstands in the urban area. In the off-season, these channels don't sell beer. As the peak season approaches, the supervisor concentrated all route personnel to visit these terminals, achieving a 90% distribution rate in the single channel, followed by POP, display, and other actions. Using a promotion of buying beer and getting newspapers free to attract consumer attention, making the product visible throughout the city, while driving other channels to follow. (2) Breakthrough means concentrating all efforts on one point! This attack has strong concealment, making defense more difficult; competitors don't know which direction the opponent will attack from, making it hard to block. In segmented channel operations, a combination of feint and real attacks is needed. After successfully containing the enemy, according to market rhythm, you must take the market high ground at all costs. Taking beer as an example, the characteristics of segmented channel operation and the selection direction of market high ground are as follows: (1) Hot stores. Characteristics: Every city has some stores with booming business, clustering phenomenon, herd mentality, one good leads to all good, and consumers have high passivity in beverage selection! Sales start quickly, small-disk effect is obvious, and the driving effect is fast, making it the best choice for focused entry attack. Disadvantages: High threshold, difficult entry, and single-store cost investment can sometimes be a serious loss. Note: After product launch, pay attention to multi-point display, suppress competitors' terminal performance while maximizing consumer contact! If conditions permit, place in-store promoters. Principle: Go all out; don't stop until you win! (2) Night market barbecue streets. Characteristics: In some markets (especially county towns), the stores with the highest summer sales are not necessarily hotels; the record of selling a hundred cases of beer per day is often created by night markets. Delivered and sold the same day, consumers are from all classes; driving a car to eat barbecue is normal. Disadvantages: Must have professional distributor support, otherwise direct attack is difficult; try not to use new customers for supply because distributors must guarantee night delivery. Note: Barbecue streets have concentrated consumption, open spaces, easy POP and display follow-up, most obvious on-site promotion effect, good roadshow effect, and owners are busy and often overwhelmed. The biggest worry is that new product promotion is not as smooth as old products, troublesome! The extra beer money doesn't matter! Principle: Service is most important; you can send "beer delivery workers" and use promoters (students on work-study). (3) Food streets. Characteristics: Concentrated consumption, taste first, drink second, consumers have little choice; break through one point, drive the whole street, easily forming local contiguous areas. Note: Food street terminals are concentrated and well-informed, serving as a barometer for local market consumption. High threshold, but easy to build product image; require timely handling of customer complaints, otherwise chain reactions may occur. Principle: One point drives the whole; breaking through one store may break through the entire street. Characteristics: The beverage wholesale market is declining, but it is still the leading market in the industry; the receiving area and quantity of the wholesale street are proportional to the product's sales volume. Disadvantages: Price-cutting competition is obvious, not shipping according to regulations, disrupting the market. Note: The purpose of working on the wholesale street is not necessarily to move volume, but to create "momentum." Concentrating on store signs, displays, palletizing, etc., on the wholesale street can gather the "business sentiment" of the entire market, thereby enhancing the product's market voice! Principle: Master the timing of launch; it's best to start the market in spring. Sales volume is not important; try to stabilize the price! (4) Hypermarkets and supermarkets (KA). Characteristics: Popularity is the biggest resource of KA hypermarkets; price credibility is the benchmark for the entire market; sales volume may not be small, but profits may not be high. The purpose of investing in KA hypermarkets is to drive consumption and set price benchmarks. Disadvantages: Highly professional; without a professional team for negotiation, maintenance is difficult and easily ends up anticlimactic. Note: Entering KA hypermarkets is an offensive and defensive move. Attacking competitors means getting close to competing products and compressing their display space; defending means driving momentum. Principle: Professionalism first, sales volume second; the image in KA hypermarkets is the enterprise's image. Here, it must be emphasized that: (1) The effect of channel driving is greatly related to brand and product marketability; otherwise, poor circulation may occur, dampening terminal confidence. (2) Market opportunities always exist. In today's increasingly mature market development, channel segmentation is getting higher; no brand can monopolize all channels, and an impenetrable market does not exist. (3) Segmented channel operation must be based on intensive cultivation. The purpose of segmented channel operation is to achieve comprehensive advantages across multiple channels. The beer market still relies on sales volume and high coverage to support profits; only high coverage across multiple channels can compensate for the high investment costs in key channels. In promotion design, pay attention to distinguishing key and non-key channels, emphasize personalized investment in single stores, and the 80/20 layout. Countermeasure 2: Channel barriers: want to drink, but no one sells! Beer has obvious immediate consumption characteristics, and catering operators are clearly profit-oriented. Any beer without a distribution logistics platform cannot achieve effective coverage. Even with strong brand click opportunities, it will be rejected at the terminal door due to the loss of the distribution network! In a local market, distributors are like a link in the animal food chain; their number is basically fixed, and in competition, there is a characteristic of one rising while the other falls. For example, in a local market, if competitors have 100 distributors, and you can persuade 80 of them to join your team, the opponent's outlets will rapidly decrease. Even if the opponent increases delivery capacity by adding people and vehicles, they cannot quickly fill the gap in terminal customer relations. And once competitors change from distribution to direct supply, they will fall into the vast ocean of people's war, because the persuaded distributors, to protect their own livelihood, will use their unique methods to block the opponent. At the same time, distributors, through long-term operations, have formed relatively fixed customer relationships with terminals, and these complex customer relationships are the foundation for ensuring whether a brand can land. Therefore, winning over a competitor's distributor often brings sales from multiple terminals at the same time! 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