Friendly reminder: Click the "↑" above to follow "FMCG Distributor Professional Consulting" for more marketing and distributor internal management content.

Recently, there have been many training sessions for distributors nationwide. I have also visited many distributors in person and had in-depth conversations with them. Distributors are practical and honest, but they also have an ambitious spirit, wanting to grow their businesses bigger and stronger. Many distributor owners are troubled by the lack of better ideas and methods.

Let's analyze the internal and external environments and challenges that distributors currently face.

Break through our operational limitations and achieve the distributor boss's way of management that combines internal virtue with external leadership.

  1. Internal problems that distributors may face in development:
  • Management needs to be standardized (systems, people, finances, materials, processes);
  • High employee turnover and low overall quality;
  • Sales capabilities need improvement;
  • High operational and hidden costs, including public relations expenses;
  • Obstacles and difficulties in market development;
  • Poor information channels for market and new product information, lack of understanding of sales;
  • Succession planning for the next generation.
  1. External problems that distributors may face:
  • Lack of change; market management thinking lags behind external changes;
  • The past does not equal the present (past glory does not guarantee current success);
  • Effort does not equal success (need to find direction and methods, follow the right companies and brands);
  • Inaccurate grasp of changes in customer demand for products;
  • Sometimes flustered when facing competitors;
  • Inability to effectively guide and direct customer upgrades and sales;
  • Unclear on how to segment and cultivate markets;
  • Lack of market understanding and sensitivity.

These problems are typical for distributors in various fields. The confusion we encounter in our daily operations stems from these aspects. We need to clarify our thinking, find the key issues, and truly walk more steadily and longer on the path of product distribution.

Achieve the rapid upgrade and transformation path for our distributor friends.

Summarize the three directions that distributors urgently need to upgrade:

  1. Management upgrade: Seek benefits from management and make management operate effectively.
  2. Product upgrade: Enhance the new product line and rationally allocate manufacturers and product lines.
  3. Marketing upgrade: Go out and build customer relationships.

1. Management Upgrade: Regardless of the size of our distributor team, with management, division of labor, and clear goals for each person, this is the foundation for becoming bigger and stronger. We must have basic management knowledge, and for distributors, management systems just need to be usable.

Example analysis of distributors: The development journey of two automotive electrical appliance agents:

  • Company A has grown to over 40 people and is very strong.
  • Company B has only ten people and morale is somewhat low; it was established earlier than Company A.

I observed the reasons for the significant gap between the two companies. Analysis is as follows:

  1. The overall quality of leaders improves, including their mindset and vision. They should not view themselves merely as merchants or sedentary traders, but upgrade their mindset to that of entrepreneurs to run their business.
  2. Team learning and growth:
    • In the planned economy era, distributor development relied on distribution mechanisms.
    • In the mixed planned and market economy era, it relied on opportunism; seizing opportunities and being bold led to wealth.
    • In a fully market-oriented economy, distributor development relies on competitive awareness, competitive ability, and cooperative thinking. In the current era, the survival of distributor friends truly requires real skills. However, a small number of industries still rely on relationships and opportunities, but that is not a long-term solution.
  3. The overall quality of managers and the completeness of management systems.

China has an ancient team story: the story of three monks. One monk carries water, two monks carry water together, but three monks have no water to drink. This classic case is also being played out in current distributor teams. How do we escape the state of the three monks?

The story of the three monks gives us insights:

  1. Incomplete and outdated rules and regulations.
  2. Unclear division of labor, leading to a "big pot" mentality (everyone shares equally regardless of contribution).
  3. Lax discipline and chaotic management.
  4. Lack of unified leadership.

Distributor response strategies:

  1. Four determinations: determine positions, determine work, determine personnel, determine responsibilities.
  2. Four aspects: responsibilities, authority, work content and requirements, inspection and assessment.
  3. Standardize behavior, institutionalize management, target work; clarify job responsibilities, civilize behavior, and maintain neat attire.
    • Morning and evening meeting systems.
  4. Marketing innovation capability.
  5. Execution capability of all staff.
  6. Loyalty to manufacturers and the ability to understand manufacturers' intentions.

2. Product Upgrade: Enhance the new product line and rationally allocate manufacturers and product lines.

Regarding products, distributor friends believe that the more products they distribute and the more manufacturers they cooperate with, the better. However, from my experience serving many distributors, this is not necessarily true. There is a key point we must grasp: a distributor has the opportunity to expand rapidly only after possessing three brands: personal brand, product brand, and company brand. With these three, you have the capital to become bigger and stronger.

Regarding the promotion of new products, if you have the chance, follow my articles; next time I will analyze new product promotion strategies in detail.

3. Marketing Upgrade: Go out and build customer relationships.

Innovative ideas for distributors' in-depth marketing:

  1. The future competitive landscape will definitely see marketing move down to the grassroots level.
  2. The market must be intensively cultivated; this is inevitable for competition.
  3. It is necessary for the company's rapid growth.
  4. To achieve high market share, "in-depth marketing" must be implemented.
  5. The company focuses on R&D, production, and strategic planning, while distributors should take on more of the responsibility for market development.
  6. Enhance brand awareness and industry influence.

Distributor marketing must also achieve nine words: in your distribution area, consumers should be able to "hear about, see, and buy" our products at any time.

Like this article? Feel free to click the top right corner to share it to your Moments.

About us: WeChat Name: FMCG Distributor Professional Consulting Management Account Introduction: 20 years of experience in FMCG distributor operations and management, specializing in distributor internal management. We understand distributors better than manufacturers, and we understand internal management better than distributors. Senior marketing experts help your business grow.

Learning and exchange QQ groups: Group 1: 344257092 (full) ** Group 2: 231512457** Click "Read the original text" below to enter our micro-community for interactive communication and questions.