In marketing practice, we often encounter questions such as: how to determine the optimal number of sales staff? How to allocate promotional resources? How to accurately forecast sales? How to quickly obtain market information? How to effectively check the work of sales personnel? How to accurately understand the flow of products in the sales channel? By implementing a fine channel management strategy, we have achieved certain results, which we now discuss with peers.
1. What is Fine Channel Management?
Fine channel management is a sales management operation method targeting all links in the retail terminal and wholesale channel. By dividing the target market area and providing detailed and meticulous service and management to all sales outlets in the channel, including assigning specific personnel, areas, points, routes, periods, and times, it achieves comprehensive control over product sales and competition in the market, establishing the company's product competitive advantage in the channel.
Implementing fine channel management is based on two points: retail terminals are the places where product exchange value is realized; only retail sales are true sales, and channel construction is a means to achieve this goal; market information from sales terminals is the most effective information.
2. Content and Forms of Fine Channel Management
The core content of fine channel management is quantitative management of retail terminals and related levels.
Personnel Quota: Allocate personnel proportionally based on the number of retail terminals and development plans.
Work Content Quota: The number of retail terminals to visit daily must meet company standards; tasks must be completed according to the company's specified visit frequency; and the company's specified business work content must be completed.
Quantified Visit Routes: Based on knowledge of terminals, follow the designated work routes and visit according to procedures.
Quantified Visit Frequency: Determine visit frequency based on the level of each retail terminal, ensuring key customers receive key services, making personnel and time usage more effective.
The specific forms of fine channel management are: one map, one line, three tables, and six fixed elements.
One Map: Sales outlet distribution map. Based on the sales outlet data collected, including distributors, wholesalers, delivery agents, and retail points, clearly mark them on the map and number them.
One Line: Based on the distribution map, set the work areas for business supervisors and work routes for business representatives. On the work areas and routes, mark the outlet locations, customer numbers, and visit frequencies according to the distribution map.
Three Tables: Customer registration form (customer file). Records detailed customer information, business status, etc. This form is the foundation of all work. Customer service form. Includes customer number, customer level, inventory status, store display, existing problems, etc. This form clearly defines the work content of business representatives and contains all the information the company wishes to know. Order form. Based on the information gathered and the customer's business situation, accept customer orders promptly.
Six Fixed Elements: Business personnel are relatively stable; each business representative's sales area is relatively stable; each business representative's responsible sales outlets are relatively stable; each outlet has a relatively stable visit frequency; each business representative's work route is relatively stable; each point's visit time is relatively stable.
3. Implementation of Fine Channel Management
The implementation of fine channel management is a dynamic process. It includes collection and organization of basic data – preliminary implementation of fine channel management – revision of data, adjustment of areas and routes, correction of visit frequencies – implementation of fine channel management.
This process is a cyclical one. As the implementation progresses and new data emerges, adjustments and corrections are inevitable, thereby making area division and route allocation increasingly rational and optimized.
Phase 1 of Implementation
Collection of Basic Data: Collect data on all retail terminals, establish customer files, and draw a geographic map. Customer files include: store name, responsible person, address, phone, nature (fixed or mobile), etc.
Organization of Basic Data: Based on customer files and the geographic map, draw an overall business outlet distribution map and organize customer files by area and route, marking customer locations and numbers on the overall map.
Simple Customer Grading and Determination of Initial Development Targets: Based on the above data and the company's product situation, determine development targets. Use large shopping malls and hypermarkets for product display; shops near schools and kindergartens, and residential area shops as A-level customers for initial development; shops at crossroads and bustling areas as B-level shops for key development; general shops as C-level, not a focus, and selectively develop based on different areas.
Route Setting and Preliminary Determination of Visit Frequency: Based on the above grading, determine visit routes and frequencies. At this stage, concentrate human and material resources to ensure supply of goods, POP, and promotional items. Visit frequency for A and B customers at least twice a week, and C at least once a week, achieving a distribution rate of over 80%.
Route Adjustment and C-level Store Development: After about 2 months of operation, when sales and restocking of A and B stores are relatively stable, adjust personnel so that each person manages 200-300 stores with a visit frequency of once a week, assigning personnel to manage and follow up sales, while others focus on developing C-level stores.
Development of C-level Stores: Each person visits 50 stores per day according to routes.
This phase takes about 3 months, then proceed to the second phase of fine channel management.
Phase 2 of Implementation
The second phase mainly involves summarizing the first phase, revising data, and analyzing data. On this basis, reasonably revise customer levels and adjust visit frequencies. The core is data analysis based on sales volume.
Data Revision: Timely supplement new data and analyze customer situations.
Data Analysis: Based on sales data, accurately calculate product sales at each store, and conduct analysis of average sales per store, and percentage of each store's sales to total sales. This yields the necessary business information for product sales.
Average Sales Analysis: Used for sales forecasting.
Inventory Analysis in the Channel: Combined with sales analysis, determine market demand plans, and then production plans; analyze production batch numbers of inventory, solve inventory product issues, and arrange promotions, etc.
Turnover Rate Analysis of Channel Products: Determine the timing and quantity of restocking, reducing transportation, inventory, and other sales costs.
Percentage Analysis: Used for determining customer levels.
Customer Level Standards: Based on statistical data of customer sales, conduct percentage analysis of each store's sales to total sales, and rank customers from large to small. Customers with cumulative sales accounting for 40% of total sales are A-level customers; those with cumulative sales accounting for 25-39% are B-level customers; the rest are C-level customers.
Setting Visit Frequencies:
A-level customers: Policy is to firmly occupy and support with resources. Visit frequency twice a week. Strictly ensure product shelf presence, guarantee supply, appearance display, and vivid presentation. Provide policy support in POP, promotional items, and sales incentives.
B-level customers: Firmly occupy, seize shelf space, tap potential for promotion, and boost sales. Visit frequency once a week, supplemented by in-store and storefront promotions by product promotion staff.
C-level customers: Main characteristics are slow turnover and small sales volume. The response principle is to maintain supply, small quantities with high frequency, and ensure shelf presence and display. Visit frequency once every 8 days.
Route Adjustment: Mark A, B, and C stores on the map with different colors, observe the distribution, re-adjust visit routes, and allocate work areas and routes based on the work capabilities of business representatives, adhering to the principles of reasonable time use, ensuring visit frequency, and relatively fair work opportunities.
Through such analysis, classification, and adjustment, form a new customer level table and work route map, and start new operations. Of course, this adjustment cannot be done at once; it is necessary to always pay attention to data updates, and regularly check, analyze, organize, and adjust until business management and business development are optimized.
4. Organization, Implementation, and Inspection of Fine Channel Management
Organization: Arranged by the company, requiring mandatory implementation. Specify a clear time schedule, with each office manager responsible, fully promote, and use as one of the bases for work assessment and resource support.
Inspection: The company mainly checks according to the work schedule. Including: inspection of documents and charts; inspection of organization; inspection of market coverage; inspection of A and B stores; inspection of wholesalers and distributors; assessment of sales performance.
Office Inspection: Office managers conduct regular or irregular spot checks on A and B stores, check the work of subordinate business supervisors, and inspect and analyze data.
Business Supervisor Inspection: Business supervisors must have a detailed understanding of the market coverage of wholesalers and delivery agents, seize opportunities to expand wholesale and delivery levels, and improve delivery efficiency. They also conduct daily inspections of subordinate business representatives.
5. Conditions for Implementing Fine Channel Management
Fine channel management is a detailed and in-depth management based on the completion of channel construction. Without a well-established market channel, fine channel management cannot be discussed.
Fine channel management is a quantitative management. Accurate and timely basic data is a prerequisite for implementing fine channel management and is the beginning of fine channel management.
Fine channel management is a process management. It consists of a series of steps. In this process, data updates and data analysis are key to effective implementation.
Fine channel management is not only management of business, but more importantly, management of people. The wisdom, quality, work attitude, and style of frontline organizers will determine the effectiveness of implementation.
Fine channel management involves a large amount of data processing. All business information is reflected in business data. Computers and professional software will be powerful tools for effective implementation of fine channel management.
In our market operations, we first piloted the fine channel management strategy in some regional markets and found that these areas achieved significantly better performance than other regions, with noticeable improvements in the management level of sales personnel, sales performance, and market confidence.
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