--- title: "How to Develop a Market That Has Been Ruined?" description: "Most regional managers know how to develop a new market, but many are at a loss when it comes to a market that has been ruined. Such markets require 5-10 times more effort than entering a new one. The key is to rebuild confidence among distributors and customers, starting from small areas, new channels, and new products, gradually expanding to the whole market." author: "马坚行" publisher: "New Distribution" email: "zhaobo258@gmail.com" telephone: "+8615854817671" published: "2015-03-15" language: "en" canonical: "https://xinjignxiao.com/en/articles/how-to-develop-a-market-that-has-been-ruined-75386956/" markdown: "https://xinjignxiao.com/en/articles/how-to-develop-a-market-that-has-been-ruined-75386956.md" original_source: "https://mp.weixin.qq.com/s/MT2dRSuo8e4FLdtKzza_bw" translation: "https://xinjignxiao.com/zh/articles/%E4%B8%80%E4%B8%AA%E5%81%9A%E7%83%82%E4%BA%86%E7%9A%84%E5%B8%82%E5%9C%BA%E5%A6%82%E4%BD%95%E5%BC%80%E5%8F%91-75386956.md" attribution: "New Distribution — https://xinjignxiao.com/en/articles/how-to-develop-a-market-that-has-been-ruined-75386956/" usage_policy: "https://xinjignxiao.com/ai-policy.txt" --- # How to Develop a Market That Has Been Ruined? > Most regional managers know how to develop a new market, but many are at a loss when it comes to a market that has been ruined. Such markets require 5-10 times more effort than entering a new one. The key is to rebuild confidence among distributors and customers, starting from small areas, new channels, and new products, gradually expanding to the whole market. Most regional managers know how to develop a new market, each with their own 'Eight Steps' or 'Nine Yin Manual'. But when it comes to developing a market that has been ruined, many regional managers are at a loss. Every relatively mature company faces this problem: some regions have become half-cooked, and there are even many historical issues. Facing such a market, re-entering is far more difficult than entering a new market, requiring 5-10 times the effort. Recently, I trained a beverage brand. The brand's regional manager L was newly assigned to Yulin, where several distributors had already been changed, the market was getting worse, many customers still had expired products of the brand, and the brand's reputation was very poor locally. After some effort, L found several interested customers. After multiple conversations, they developed a product launch plan and promotion plan with the customers, who showed great interest. At the final decision point, the customer said, 'Your product is good, but let me first go around the market to understand.' And then nothing came of it. Even one customer who had signed a contract with the company delayed making the initial payment after touring the market. For such markets, the crux is two words: 'confidence'. Distributors are not lacking confidence in the regional manager, but have completely lost confidence in the brand. To revive a ruined market, we need to focus on building confidence. Another regional manager C for the same brand did this well. C was responsible for the Dongguan and Shenzhen markets, which the company had entered and exited multiple times. Taking Dongguan as an example, due to multiple strategic adjustments, the company had entered and exited the local market nine times, leaving a pile of legacy issues and stirring up great public anger. How to clean up this mess and find a new distributor to develop? C did extensive visits in the Dongguan market to understand the situation. After careful consideration, he decided to start from a town in northern Dongguan where the damage was lighter. Previously, the company mainly operated through traditional wholesale channels in Dongguan. Here, he found a distributor who focused on the supermarket channel. They temporarily abandoned the old products, even avoided mentioning the company name, and promoted a new product as a brand, distributing along the supermarket systems the distributor controlled, and opening up sales through vivid displays, promotions, and other measures. Then they gradually expanded to other districts, towns, and channels, eventually re-establishing a foothold in Dongguan. Now it is doing well. Based on existing cases, let's analyze how to operate a ruined market: 1. Visit the market to understand the root cause of the problem and avoid similar issues recurring. Identify whether it's a company problem, salesperson problem, or distributor problem, and solve what can be solved to show the manufacturer's sincerity. 2. Understand the extent of damage in the region and strategically retreat from severely affected areas. Focus energy and resources on markets with potential, letting time dilute the memory. 3. Find a less affected local area and use policy incentives to find a distributor. Invest more resources in the local area to create a model. Pay attention to the development pace and gradually cover the entire regional market. For example, the beverage brand entered and exited Dongguan nine times, finally starting small in a northern town and gradually opening up the market. 4. Consider distributors from similar or even different industries. For instance, the beverage brand could find a snack food distributor to operate the market. 5. Start with segmented channels, new channels, or channels not severely affected. For example, the beverage brand avoided the severely affected traditional wholesale channel in Dongguan and found a supermarket channel distributor to open the market. 6. Start with new products. For example, the beverage brand promoted a new product XXXX in Dongguan, even avoiding mentioning the company brand, promoting the brand through the product name, which to some extent reduced the negative market impact. 7. Have company leaders show attention. For example, invite distributors to the company and have leaders meet them. When distributors feel valued by senior management or receive commitments, they are more confident and drive the market forward. In summary, it all comes back to the keyword 'confidence'. For a ruined market, confidence cannot be built overnight; it needs to be regained bit by bit. To sum up, it's about going from small to large (region), from segmented to comprehensive (channels), from new to old (products), and even from outside to inside (distributor selection, if you can't find one in the industry, look outside), and from high to low (company leaders paying attention to a regional market), gradually opening up the market and building confidence among customers at all levels of the channel. 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