Introduction: Due to my work, I come into contact with thousands of food distributors every year, and every year I encounter a large number of problems. But this year is different from previous years. With the slowdown in economic growth this year, and the severe homogenization of products in the food industry market, products are oversaturated and competition is fierce. In addition, the internet marketing industry is filled with restlessness, with various postures and tricks, various surging and floating, such as casually saying "eliminate, subvert, integrate, cross-border," etc. Many people talk about Internet+ and platforms, and always mention the general trend. As a result, this year, concepts like Internet+ and platforms have become incredibly popular in the food industry, making the current situation like "the wind is coming before the storm." So in the face of the above situations, how should food distributors survive in 2016? Any sunset industry has profitable companies, and any sunrise industry has loss-making ones. The key is to capture market demand. China's food industry market has entered an era of complete competition in a buyer's market. In such a market, product homogenization, service homogenization, and marketing behavior homogenization are becoming faster and higher. Consumers are increasingly at a loss when faced with the dazzling array of homogeneous products with similar appeals. Facing this brutal competition in the consumer market, manufacturers and distributors are thinking about how to make their product market chain truly run smoothly from suppliers to themselves, to midstream distributors, to terminal retailers, and finally to consumers. In the logistics and market chain, the front and middle parts are relatively easy to carry out, but the latter part, getting products from terminal stores to consumers, is very difficult. In such an era, whoever can present the factors that consumers pay most attention to and care about in the most noticeable way will gain a favorable brand and market position. Regional distributors, as the sowers of "sparks of market fire," are about to face a new year. So how should distributors survive in 2016? 1. Select products according to local consumer demand Doing products is not about hyping concepts or fancy packaging. Concepts and packaging are only partial support. In the 4P theory of marketing, product is placed first. Price, channel, and promotion all occur based on the product. Therefore, product is the foundation, the key, and the first priority. In today's food industry, "product surplus does not equal quality surplus," so if distributors don't have good products, everything else is zero. Many companies do not study consumer demand when developing new products; they do not start from demand but base product development on assumptions. This is more non-market-driven than market-driven. In reality, demand is the fundamental foundation of a company. Companies should choose demand as the starting point. Only when demand is continuously amplified can multiple profits be generated, and the same product or brand can obtain repeat profits, making brand extension possible. But in reality, many companies think that if they believe their product is good, consumers should like it. If we follow this logic, it becomes "as long as I like you, you should marry me." In fact, no matter how good a product is, to survive and be accepted by consumers, it needs its environment, and that environment is "consumer" preference. In addition, many companies understand product innovation mostly as content innovation. Only by being different can they achieve "what others don't have" and earn high profits. But these companies lack brand awareness and corporate strength to support it, so new products become a beautiful dream that doesn't come true, resulting in a batch of distributors being harmed. During market visits last year, I found that many distributors were hurt because the new products they chose did not meet local consumer demand. Here I advise distributor friends: "New products may be beautiful, but choose carefully." 2. Build a terminal profit model "Product is key, victory is at the terminal." The ultimate purpose of terminal operations is to solve the problem: terminals are willing to sell, and consumers are willing to buy. Without paying attention to terminal construction and without the ability to control terminals, it is impossible to truly win the market. Terminal construction is a systematic project. It not only requires a long cycle, large investment, a large number of well-trained sales personnel, and the company's comprehensive strength, but also requires the company's overall marketing thinking and correct market strategy. Terminal construction runs through the entire marketing process. It is an endless cycle. As long as business continues, terminal construction cannot stop. If any sales point is not done well, it will affect product sales at that point and even damage the brand image. So there is no small matter at the terminal. Building the terminal well is not about clever tricks; it is about doing every specific and small terminal job well and persisting in this simple work. Terminal work is tedious and heavy. To make terminal work meticulous and solid, and to keep the terminal in an optimal state, it is necessary to rely on a system for management and continuous cyclic operation. In the era of winning at the terminal, how to systematically, comprehensively, and advantageously build your terminal competitiveness is an indispensable step. The terminal profit model is to focus on the terminal as the core, combine product strength with word-of-mouth communication, let products grow naturally, form market information sources, and let all marketing tools focus on the terminal, saving the long communication process, and creating sustained brand influence through innovative products, thereby bringing continuous sales. The terminal profit model does not rush to expand market share, discarding the past idea that market share equals profit. It firmly grasps the profit center, works steadily, firmly controls the terminal, and advances effectively. Many examples show that the relationship between market share leadership and profitability is not completely corresponding. Under the new rules, in the business field centered on profit, a large market share is not the most important. What really matters is: where do you profit, and what is your profit model? The terminal profit model is actually about finding a way for a product to grow quickly. In reality, the reason why so many distributors fall into operational difficulties is that they lack a terminal profit model. 3. Seek benefits from team management Team management turns individual independent team members into a strong and powerful group, enabling the team to successfully achieve its set goals. Team management is a core task of the company, and the comprehensive quality and ability of the sales team directly reflect the company's management level. Remember this sentence: "The sales team is our mirror; whatever we are, the team is!" But in reality, many distributors control numerous brand resources, have many vehicles and sales personnel, and have sales ranging from tens of millions to hundreds of millions. These are large distributors operating as companies. As the company scale expands and sales increase, their actual profits do not increase with sales. So how can distributors seek benefits from management? Case: [Case]: 1 bottle of beverage is sold to the terminal at 10 yuan/bottle, purchase cost is 8 yuan/bottle, and sales cost is 1 yuan/bottle. Selling 10 bottles for 100 yuan. First time: Sales = Price × Quantity = 100 yuan. Profit = Sales - Cost = 10 yuan. When cost decreases by 1% and sales volume increases by 1%, how much does profit increase? Second time: Sales = Price × Quantity = 10 × 10.1 = 101 yuan. Profit = Sales - Cost = 101 - 89.1 (90 × 0.99) = 11.9 yuan. The second profit increased by 19%. Note: If cost decreases by 1% and sales volume increases by 1%, profit increases by 19%. 4. Small distributors focus on products, large distributors focus on trends Product is key and first. For small and medium distributors, if they cannot grasp good products, they cannot grasp terminal outlets, and thus cannot develop into large distributors. The forms of terminal marketing are: exclusive stores, chains, special zones, and special counters. For large distributors, if the products they operate can account for 40% of terminal store sales, they will have absolute say in the local area. If large distributors have several first-line essential brands, they can embrace the internet trend and use platforms to integrate resources and continue to grow. It should be emphasized here that platforms serve excellent products (like a highway; do vehicles with a speed lower than 60 km/h get on the highway? Many distributors, you say you ride a bicycle on the highway?). If you don't have first-line essential products, going on a platform is like "a snake trying to swallow an elephant," and it is difficult to integrate other distributors locally. This is why last year many distributors rushed to platforms and mostly ended in a hasty retreat. 2015 is about to fly by; now we must prepare to face the new year; there may be dangers; but we must be brave; overcome obstacles; overcome hardships; wade through difficulties; march forward courageously; maintain cooperation; climb to the peak; enjoy success! Finally, I wish all new and old distributor friends a prosperous business and abundant wealth in 2016! -END- Content Selection Reply with the following keywords to categorize and read related articles: Sales Supervisor, Second-tier Management, Regional Manager, Distributor Management, New Channels, City Manager, Competition, 2015, Manufacturer-Distributor Game, Product Slow Sales, Terminal Visit Management, Route Management, Deep Distribution, Internal Management, Sales Skills, Profit Improvement, Recruitment, Distribution, Daily Management, Team Motivation, Channel Promotion, Sales Misunderstandings, New Product Launch, Township Market, New Product Pricing, Sales Target Achievement, Closing Orders, Market Visit Inspection, Baijiu, Beer, Sales Increase, Agency Products, Cross-region Sales, KA, Terminal Visualization, New Market, Market Operation, Learning, Book Recommendations, Inventory Management, Sales Novice, Consumer Promotion, Execution, Old Products, Expired Product Handling, Model Market, Investment Promotion, New Media, Distributor Development, Performance Appraisal, Assessment, Annual Planning, Shopping Guide, Morning Meeting, Display, Transformation, Stock Pressure, Festival, Distributor Cost Control, Channel Operation, Marketing Theory and Laws, Brand Truth, Order Meeting, Team Management, Training, Work Report, Work Report.
Dealer Operations · Management & Methods
How Should Food Distributors Survive in 2016?
Due to slowing economic growth, severe product homogenization, oversupply, and intense competition in the food industry, coupled with the hype around internet marketing concepts, food distributors face unprecedented challenges in 2016. This article provides practical advice on how to thrive by selecting products based on local consumer demand, building terminal profit models, improving team management efficiency, and adapting strategies according to company size.
