The so-called advantage is competitiveness compared with rivals, and advantageous channels refer to those that are more competitive. How can beer companies build their own advantageous channels? In my view, off-season adjustment is the key move.
In the off-season, many companies have shifted their focus. Some have put their weapons away and let their horses rest, while others are still confused by the theory of "doing market in off-season, doing sales in peak season," and start aggressive promotions, advertising, and distribution, unknowingly falling into marketing traps.
The marketing environment has changed, so everything must change.
What is the focus and core of off-season work? Only two words: adjustment. The purpose of adjustment is to strengthen channels for next year's battle. Therefore, stability enables development, and adjustment enables stability. To achieve channel stability, marketing thinking and work priorities must be adjusted to follow the trend.
Having read many articles on off-season market operations, I find most are repetitive and lack substantive suggestions. Therefore, based on my experience in the Guangdong market, I propose several ideas for building channel advantages:
Contraction Strategy, Strengthen Base Territory. In the off-season, beer companies are actually competing for resources because market costs increase while sales plummet. At this time, many companies implement contraction strategies to strengthen their base territories. Specific ideas include:
Withdraw resources. For remote markets, since Zhongshan Company has not yet produced beer, and with extreme supply shortages, adopt strategic withdrawal, such as transferring staff, canceling promotions, and not competing with competitors, to voluntarily give up some markets and temporarily avoid competition in marginal markets, laying the groundwork for restarting the market after the Spring Festival.
Lock in second-tier distributors. Market competition ultimately comes down to competition in the channel value chain. In the Guangdong market, locking in second-tier distributors is key to breaking the deadlock because:
First, before Jinxing officially starts production, many of its channels are still fragile and require active participation from many second-tier distributors to activate the channel.
Second, second-tier distributors are crucial for controlling terminals and are the focus of many beer companies. In Dongguan, Jinwei and Zhujiang Beer each have several distributors in every township, with over 1,600 salespeople and promoters across Dongguan. Second-tier distributors have become the focus of competition.
Therefore, to adjust distributors and stabilize channels, beer companies must first lock in second-tier distributors.
Consolidate base markets. The role of base markets is self-evident. The key is how to consolidate them:
A. Change forms, strong distribution. In the off-season, beer can be promoted but absolutely not discounted. Discounting only increases the risk coefficient of the channel value chain. Short-term market price cuts may destroy the price system; even if distribution plans are completed, subsequent work will be impossible. Companies can try: one-time purchase of a certain quantity to receive a monthly display fee, or free delivery of two boxes for trial sales, which will be effective for new product distribution.
B. Consumption pull, increase channel confidence. After distribution, for new products, the work has just begun. More importantly, carry out consumption pull in catering channels to achieve real purchases and enhance the confidence of terminal restaurants. Otherwise, sustained purchases will be difficult, and sales will not proceed. At this time, companies should launch a series of sincere customer appreciation events in key markets, such as on holidays, weekends, or store anniversaries, to increase product reputation and strengthen competitive advantages.
C. Lock in terminals, build barriers. For Jinxing Beer's base markets, Jinxing will lock in terminals through various means, investing several times the resources of competitors in manpower, materials, finance, and intelligence, forcing competitors to retreat, thereby building strategic regional markets and adding new competitive advantages to channels.
Reduce Promotion Resources, Increase Market Expenses. In the off-season, promotion expenses can be appropriately lowered because per-case promotion costs no longer stimulate the channel chain. At this time, rather than increasing promotions, it is better to reduce them and increase market investment:
Many beer companies have vague concepts of office expenses, promotion expenses, and market expenses, mistakenly believing that "doing market in off-season" means increasing product promotions and lowering prices to compete. This is a misunderstanding of marketing, a kind of marketing myopia. If off-season promotions are too large, they will inevitably damage the brand.
Specific practices are:
Increase market investment in catering and entertainment terminals such as hotels, food stalls, nightclubs, and night markets. For image stores, strengthen store locking efforts and try to implement exclusive or promoter monopolies.
Increase community marketing efforts. In the northern market, community marketing is still only theoretical. In this regard, the operations of Zhujiang, Jinwei, and Xuehua Beer in the Guangdong market are worth learning from for many small and medium enterprises.
Jinxing Company has carried out community marketing in many markets near Zhongshan, achieving unexpected results. Community marketing also places new demands on companies. Compared with rural markets, community marketing in urban markets requires many conditions:
First, activity forms must be participatory, interactive, creative, entertaining, effective, and operable; second, promotional items must be abundant; third, supporting facilities and tools are needed: some community activities require performance troupes, stages, sound systems, lighting, as well as canopies, large umbrellas, tables and chairs, display boards, display racks, rainbow arches, etc., which are indispensable in community promotion; fourth, there must be complete mature plans and relatively skilled promotional staff.
In the off-season, although companies increase market expenses, this is constructive for enhancing channel competitive advantages. The above two measures can greatly help strengthen channels and increase consumer satisfaction, avoiding the vicious cycle of "promoting but not selling." On the contrary, they will enhance channel competitiveness.
Adjust Marketing Strategies, Nurture Channels Before Action. Entering the off-season, adjusting marketing strategies will help build channel advantages. After the peak season operations, some key second-tier distributors will emerge, while others will drift away from the manufacturer. Therefore, adjusting marketing strategies will achieve the reorganization of the channel chain, forming new channel advantages:
Single product for sales, eliminate distributors. The off-season is not only for doing market but also for doing sales. Many companies, influenced by marketing theory, believe in "doing market in off-season, doing sales in peak season," so they invest a lot of manpower, materials, and money in the off-season. Although they make the market prosperous, after the Spring Festival, competitors can target their best-selling products with a policy to suppress them, leading to overall market paralysis. This approach is not advisable. Therefore, launch new products in the off-season to create new profit points, set thresholds through sales assessment, and eliminate distributors who only ask for policies but have no ideas for the market. Flowing water does not rot, and door hinges do not get worm-eaten. After adjustment, a group of dynamic distributors will emerge, enhancing channel vitality and competitive advantages.
Tilt investment, support new members. In the off-season market, different channels in the south and north have different sensitivities to seasons. Therefore, companies should try to adjust market investment to enhance channel competitiveness:
After October, the Guangdong market will gradually reduce investment in supermarkets and food stalls, focusing on small and medium-sized hotels, which are the main consumer groups in the off-season. For newly joined distributors and second-tier distributors, we provide key support in network, service, and promotion resources to help them quickly adapt to the market.
Compress product lines. Many companies do not understand shrinking markets and compressing product lines. "Ants are also meat when many," and "more land means more grain," so why shrink? Because after market contraction, companies will have more energy to focus on base markets, turning them into strategic regional markets, summarizing experience and building confidence for new channel members. If you try to bloom everywhere, you will only collapse everywhere. Doing market is not war; sacrificing others is not the goal. After compressing product lines, some competing products will exit the market after hitting competitors in the off-season. The company's product line will gradually become clear, and when launching new products, it can increase new product prices, thereby increasing the value of the channel product value chain and forming new channel competitive advantages. If the product line is not compressed in the off-season, it will inevitably reduce profits for channel members and damage their enthusiasm.
In the off-season, the core for beer companies is "taking momentum" and "creating momentum." "Taking momentum" means seizing the high ground to gain competitive advantages for the next year or longer, creating an aura, a situation, a trend. With momentum, competitive advantages will naturally follow.
The most fundamental competition in marketing is channel competition. Adjusting and restructuring channel profits, products, and structures will inevitably have a profound impact on the channel value chain. After basic off-season operations, beer company channels will regain vitality and achieve new advantages.
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