Warm reminder: Click the blue text above “FMCG Distributor Professional Consulting” to learn more about marketing and distributor internal management. Almost all second- and third-tier companies have been seeking the same question: when facing attacks from national big brands, any novel promotion almost fails, and defense is full of holes. What should they do? Compared with strong brands, weak companies' insufficient brand power is an indisputable reality. However, brand is only "momentum"; to convert "momentum" into "energy", it must rely on channels and marketing systems as a conversion platform, and this platform is the company's refined management "internal strength". Without internal strength, any novel promotion method can only be fancy "tricks"; overemphasizing the difficulty of "tricks" not only risks straining your back but also may trip you up! Weak brands rely on channels for survival; strengthening internal strength, a regional lord may also resist a national hegemon! Finding the "Degree" of Manufacturer-Dealer Cooperation Today, we can hear arguments about channel revolution and terminal victory everywhere. Many companies, especially second- and third-tier ones, are vigorously carrying out campaigns like "cutting second-tier distributors, facing terminals directly." But has the channel really changed? In industries like beer and fresh milk, characterized by dispersed logistics and low gross margins, the possibility of full direct supply is constrained. Logistics distribution and connecting consumption are the essential functions of channels. Under the premise that this essence remains unchanged, can channels change? If today you say that channels haven't changed, you might be drowned by criticism before finishing your sentence! But channels really haven't changed! First-tier distributors are still first-tier, second-tier are still second-tier, delivering goods and collecting payments, day after day, year after year. From the original agents to today's distributors, from distributors to operators; manufacturers' sales staff have gone from few to many, then from many to few. Various marketing models have changed rapidly, all aiming to find an answer: the division of labor between manufacturers and dealers, seeking the legendary pace! Deep distribution, channel intensive cultivation, pan-dish, direct distribution... Which is the current highest-level martial arts manual? Years ago, the focus of corporate control was on production warehouses; the seller's market determined that production was the first principle. Later, the control focus shifted to "channel is king" (managing hundreds or thousands of points). When channels became "the customer bullying the store," the control focus shifted to "terminal victory" (managing tens of thousands of points)! In between, corporate control capabilities gradually expanded, but the logistics distribution essence of channels never changed, while military power (promotion control and market control) gradually decreased imperceptibly. As corporate control scope deepened, marketing models based on deep distribution were skillfully applied by companies, while also influencing batches of distributors. Some companies began to return market management functions to distributors according to corporate will, jointly building sales teams with distributors, with manufacturers helping manage. For example, Snow Beer's collaborative exclusive distribution model. This model, based on deep distribution, has companies and distributors jointly build a sales team, manage together, and operate integrally. Both parties manage terminals according to the company's design, forming strategic cooperative partnerships. The stability of marketing channels is further enhanced, manufacturer-dealer relationships are closer, loyalty and trust are higher, and corporate control over channels is significantly strengthened. Similarly, Tsingtao Beer's "big customer" operation model widely implemented in Jiangsu and Zhejiang in the south is similar. Regardless, competition in the beer market is limited by the optimal delivery radius, making beer's local character still obvious, and many market competitions are interlocked. Although brand is recognized as the first weapon, without a bottling plant as an attack platform, any brand finds it difficult to launch long-distance raids. Therefore, the power of brand clicks often fails to work ideally. Instead, constrained by channels, it results in "flying dragon in the sky" but unable to land, and "strong dragon cannot suppress the local snake" is common. Therefore, during the survival period of second- and third-tier brands, channels remain their foundation for survival! Only by avoiding the enemy's strength and attacking weakness, using channels to buy time for brand building, or even as bargaining chips for acquisition. So, no matter how big brands stir things up, second- and third-tier brands should not easily cut off their networks. Channel Combinations Can Be Multiple Corporate coverage of channels is mainly through combinations; no single channel model or management model can dominate all situations or cure all diseases. China's unique urban-rural distribution pattern determines that companies must have composite and changeable channel models, and the suitable one is the best. Today, many companies are committed to building effective channel models, with different focuses. For example: Tsingtao Beer's micro-management system focuses on controlling terminals, emphasizing cell division, small-area distribution, etc., which determines Tsingtao's refined management characteristics. Although Tsingtao emphasizes unique distribution, uninterrupted distribution, and high-quality distribution, over-refinement or restriction of distributors results in rampant cross-regional sales and price cuts, especially in mature markets. Over time, under Tsingtao's single-product strategy, channel members' profits are not effectively guaranteed, and channel grievances accumulate. In contrast, Snow Beer, under the guidance of its perfect distribution model "Octopus System," emphasizes the role of channels while flexibly applying 5-6 distribution models according to market characteristics: 1. Traditional distribution: Mainly for immature markets, low-cost promotion, natural sales. 2. Deep distribution: Emphasizing manufacturer will, management and service move forward, with minimal changes in channel structure, intensive cultivation, effectively improving market management efficiency. 3. Exclusive distribution: Similar to Wahaha's joint sales system and P&G's channel management model, the manufacturer provides a complete management template, jointly builds a sales team with distributors, and achieves exclusive operation. 4. Direct supply: Mainly applicable to hypermarkets, airports, railway stations, etc. 5. Township distribution. Comparing the two, Tsingtao emphasizes its strong terminal control capability under the premise of its powerful brand pull, and the trend of weakening channels is an indisputable fact; while Snow Beer fully utilizes channel functions, provides complete operational model guidance and control, emphasizing management rather than weakening. Channels have no distinction of good or bad! Just as with the same moves, different people perform with different effects, because internal strength differs. Pathological Practices of Second- and Third-Tier Brands Second- and third-tier brands may have small markets, but there are many pathological markets and practices: 1. Conservative market: only doing distribution, ignoring direct supply! If in a mature urban market with concentrated residence, the distribution ratio is too high (e.g., over 80%), it is undoubtedly a market sitting on a powder keg. Because once competitors attack your distribution channels, a chain reaction across the entire market may occur, even causing channel blockage, leading to "myocardial infarction"! 2. Aggressive market: only doing direct supply, ignoring distribution! Direct supply is characterized by stable price system and orderly market, but doing all direct supply in a local market will be "only gnawing bones, not eating meat," exhausting yourself and hard to grow! Direct supply is "bones," distribution is "meat"; a market with only bones cannot be full, and a market with only meat may not "stand" (constrained by distribution). Only combining bones and meat creates a living market! 3. Facing giant attacks, the first reaction is to panic. Large enterprises with mature deep distribution systems and complete route management often have obvious advantages in terminal investment, not because overall expenses are higher than competitors, but because of precise channel planning and accurate channel "point kill." The so-called channel "point kill" is to classify terminals by influence during attack, invest individually in single stores, rapidly increase brand influence while driving other channels to follow with low costs, always suppressing opponents in the "low-lying area" unable to raise their heads. Many companies, when facing this "point kill" problem, often stage a modern version of the "wolf is coming" story: In Shandong's beer industry, many beer companies are troubled by Tsingtao Beer's exclusive sales blockade policy. Marketing executives often receive urgent calls from sales staff or distributors: "Bad, bad, Tsingtao is giving away × cases of exclusive beer per month in hotels." The executive hears this and thinks, "We can't lose the market," and orders: "If they give 50 cases, we give 100!" So, confused, they launch heavy attacks and defend on all fronts. Without precise route visit system support, a flurry of random shots not only wastes a lot of "ammunition" but also disrupts their own price order, causing "immune system disorder"! 4. The second reaction is passive defense without action, not because they don't want to attack, but because they hope to attack all channels when everything is ready, aiming for a counterattack and a comeback. But waiting for everything to be ready will inevitably miss opportunities; launching an all-channel attack will inevitably encounter all-channel defense, and the greater the attack, the greater the resistance! Under circumstances where financial resources, brand, management, etc., are inferior, "achieving overwhelming victory under overwhelming conditions" can only be a pipe dream for second- and third-tier brands. Countermeasure 1: Channel-by-Channel Attack With route management support, the advantages of channel-by-channel attack are: 1. If you can't hurt all ten fingers, break one! Turn tangible into intangible. In a market, if all-channel attack cannot open the situation for a long time, choose to attack on a single channel! After breaking through on this channel, drive or continue to find the next single channel. For example, in a market where all channels are blocked, the regional manager focuses on more than 100 newsstands in the urban area. In the off-season, these channels don't sell beer. When the peak season comes, the manager concentrates all route forces to visit these terminals, achieving a single-channel distribution ratio of 90%, then follows up with POP, displays, and on-site promotions like buying beer with free newspapers, attracting consumer attention while making the product visible throughout the city, driving other channels to follow. 2. Breakthrough means concentrating all strength on one point! This attack is highly concealed, making defense more difficult; competitors don't know which direction you'll come from, making it hard to block. In channel-by-channel operations, a combination of virtual and real attacks is needed. After successfully containing the enemy, according to market rhythm, attack the market commanding heights at all costs. Taking beer as an example, the characteristics of channel-by-channel operations and the selection direction of market commanding heights are as follows: 1. Hot stores. Characteristics: Every city has stores with business bursting at the seams, clustering phenomenon, herd behavior, one good leads to all good, and consumers have high passivity in beverage choices! Sales start quickly, small plate effect is obvious, driving effect is fast, making them the best choice for focused entry attack. Disadvantages: High threshold, difficult entry, and single-store investment may sometimes be severely loss-making. Note: After product launch, pay attention to multi-point display, maximize consumer contact while suppressing competitors' terminal performance! If conditions permit, place in-store promoters. Principle: Go all out, don't stop until you win! 2. Night market BBQ streets. Characteristics: In some markets (especially county towns), the largest summer sales may not be hotels; daily sales of 100 cases of beer are often created by night markets. Delivered and sold the same day, consumers of all classes, driving a car to eat BBQ is normal. Disadvantages: Must have professional distributor support, otherwise direct attack is difficult; try not to use new customers for supply because distributors must guarantee night delivery. Note: BBQ streets have concentrated consumption, open spaces, easy POP and display follow-up, most obvious on-site promotion effects, good roadshow effects, and owners are busy, often overwhelmed. The biggest worry is that new product introduction is not as smooth as old products, troublesome! The extra beer money doesn't matter much! Principle: Service is most important; you can place "beer delivery workers" or use promoters (students on work-study). 3. Food streets. Characteristics: Concentrated consumption, taste first, drink second, consumers have little choice; breaking through one point drives the whole street, easily forming local contiguous areas. Note: Food street terminals are concentrated and well-informed, serving as a barometer for local market consumption. High threshold, but easy to build product image; require timely handling of customer complaints, otherwise chain reactions may occur. Principle: One point drives the whole; breaking through one store may break through the entire street. 4. Wholesale streets. Characteristics: Alcohol wholesale markets are declining, but they remain the leading market in the industry; the receiving area and volume of wholesale streets are proportional to product sales. Disadvantages: Price-cutting competition is obvious, not shipping according to regulations, disrupting the market. Note: The purpose of doing wholesale streets may not be to move volume but to create "momentum." Concentrating on store signs, displays, pallet stacking, etc., in wholesale streets can gather the "business sentiment" of the entire market, thereby enhancing product market discourse power! Principle: Master the timing of launch, preferably starting in spring; sales volume is not important, try to stabilize the price system! 5. Hypermarkets and supermarkets (KA). Characteristics: Foot traffic is KA's greatest resource, price credibility is the benchmark for the entire market; sales may not be small, but benefits may not be high. The purpose of KA investment is to drive consumption and set price benchmarks. Disadvantages: Highly professional; without a professional team, negotiation and maintenance are difficult, and it's easy to start strong and end weak. Note: Entering KA is an offensive and defensive move. Attacking competitors means getting close to competing products and compressing their display space; defending means driving momentum. Principle: Professionalism first, sales second; the image in KA is the company's image. Here, it must be emphasized:

  1. The driving effect of channels is greatly related to brand and product suitability; otherwise, poor flow may occur, dampening terminal business confidence.
  2. Market opportunities always exist. In today's increasingly mature market, channel segmentation is getting higher; no brand can monopolize all channels, and an impregnable market does not exist.
  3. Channel-by-channel operations must be based on intensive cultivation. The purpose is to achieve comprehensive advantages across multiple channels. The beer market still relies on sales volume and high coverage to support profits; only high coverage across multiple channels can compensate for high investment costs in key channels. In promotion design, pay attention to distinguishing key and non-key channels, emphasize individual store investment, and use the 80/20 layout. Countermeasure 2: One Move, Seven Styles, Seize the Distribution Link to Grab Market One Move: Want to drink, but no one sells! Beer's immediate consumption characteristics are obvious, and catering operators are profit-oriented. Any beer without a distribution logistics platform cannot achieve effective coverage; even with strong brand click opportunities, it will be rejected at the terminal door due to loss of distribution network! In a local market, distributors are like a link in the animal food chain, with a basically fixed number. In competition, there is a characteristic of one rising while the other falls. For example, in a local market, if competitors have 100 distributors, and you can persuade 80 of them to switch to your side, the opponent will experience a sharp loss of outlets. Even if the opponent adds people and vehicles to increase delivery capacity, they cannot quickly fill the gap in terminal customer relations. Once competitors switch from distribution to direct supply, they will fall into the vast ocean of people's war, because the persuaded distributors, to protect their own livelihoods, will use their unique ways to block the opponent. At the same time, distributors have formed relatively fixed customer relationships with terminals over long-term operations. This complex customer relationship is the foundation for ensuring whether a brand can land. Therefore, taking down a competitor's distributor often brings sales from multiple terminals! "Seven Styles": Attack and seize the distribution system.
  4. Find: Through market visits and other methods, identify all distributors and establish detailed records, even including the downstream outlet networks they control.
  5. Classify: Classify the distributors in the records; some are good at managing hotels, some at supermarkets, some at BBQ night markets.
  6. Negotiate: Prepare your negotiation content and directly talk with target distributors.
  7. Tempt: Quickly increase your distribution rate, use the high profit of your product to tempt, follow up with order pull, regional protection, and other measures, so that target distributors reduce their business with competitors in the short term, and try to persuade as many competitor distributors as possible, allowing your product to concentrate volume and block the competitor's "main artery."
  8. Strike: For distributors who don't respond to the above methods, find out their downstream network, take down the terminals they control one by one, apply pressure while negotiating, creating the danger of losing their livelihood if they don't cooperate, forcing opponents to join your camp.
  9. Lock: Use agreement sales volume, exclusive sales, etc., to solidify the key downstream network of distributors. On the premise of ensuring distributor profits, solidify their downstream outlets. Lock from the terminal, work backward to distribution, forming a guaranteed channel "chain"!
  10. Exclusive: According to region or terminal network delineation, clarify that each terminal can only correspond to one distributor, and random delivery is not allowed, to ensure price and market order stability. ----------------------------------------------

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