In the new era of competition, going downstream and intensive cultivation have become the main themes of marketing, making the importance of county and township-level markets increasingly prominent. Whoever can win consumers in the shortest time, with the fastest speed and best methods, will be the winner in the future market.
As many companies continue to shift their market focus downward, county-level distributors are becoming more prominent and irreplaceable, and their market performance can directly determine a company's fate and future. For companies to develop and distributors to survive, county-level markets must be broken through, and the key to success lies in the words 'fast' and 'efficient'.
I. Product Breakthrough: Coordinating Leading Products and Breakthrough Products
Many distributors fail to quickly break through county-level markets mainly because they have too many products. Whatever varieties the manufacturer has, the distributor has them all. Many distributors mistakenly believe that since they have many products, if one doesn't sell well, they can switch to another. This leads to unclear product lines, and trying to sell everything well results in selling nothing well.
So, specifically in a county-level market, when selecting products, distributors should ensure clear priorities and a reasonable structure.
- Highlight leading products: No matter how many products the manufacturer has, there may only be one or two that suit the distributor's county-level market.
For example, when choosing bottled liquor products, the most competitive price range in the market is typically 8-15 yuan per bottle.
- Define breakthrough products clearly: Once the leading product is selected, consider the breakthrough product.
A breakthrough product is one that competes head-on with competitors. Although it may eventually be sacrificed, it can help the leading product enter the market smoothly and defeat competitors.
Choose target competitors and use a 'high-low' pricing strategy: The leading product should be priced higher than existing competing products, leaving room for promotions and profit margins to suppress competitors. The breakthrough product should be priced roughly at par with competitors or slightly higher (5-10%) to directly compete on price.
Let the leading and breakthrough products cooperate to attack competitors' strong retail outlets one by one.
The breakthrough product, with its lower price, is easier to move in volume and meets the needs of terminal owners. So first let the breakthrough product gain familiarity, then leverage that to let the leading product make money and build image.
This pincer movement forces competitors to make concessions, leads them by the nose, and eventually drives them out of the hotel channel.
Of course, no tactic is foolproof. Distributors should also note: always maintain price consistency between the breakthrough product and competing products.
Low pricing is a competitive tactic, but when engaging in terminal battles with competitors, never reduce product prices across the board.
The so-called low price is just a superficial form, mainly to disrupt the opponent's position through external momentum, forcing them to lower prices. This is a strategy used in key battle zones and some particularly difficult hotels.
The benefits of this strategy are obvious:
It makes the leading product more prominent because it has a higher price, more promotional space, and more resources for the distributor to control, allowing flexible activities to guide consumption.
It clarifies the target and directly engages the opponent in a 'bayonet charge', forcing them to respond.
It makes the opponent unknowingly enter an 'ambush zone', where two products simultaneously attack the opponent's leading product. Especially in hotels where the opponent sells well, they will definitely try to protect their leading product and fight back.
The result of fighting back is promotion, which means lower prices, which means the opponent's profits gradually decrease, eventually forcing them to withdraw.
II. Rapid Distribution: Manufacturer-Dealer Collaboration to Seize Time and Space
Distribution is not unfamiliar to distributors. In the overall marketing process, distribution is one of the simplest procedures, but seemingly simple distribution hides great wisdom. To put it seriously, 'success or failure depends on distribution.'
I once served a liquor company and visited a distributor in the market. This distributor had been stocking for nearly 8 months, but sales had been poor.
He said, 'We work hard. We drive out early every morning to distribute, but consumers just don't recognize our products. There's nothing we can do; we can only take it slowly.'
I deeply admire this distributor's loyalty and perseverance. There are many distributors like him, but why do they end up in this situation?
Because they distribute just for the sake of distributing. So no matter how hard they try, it's in vain.
Marketing is about opportunity cost. Doing things differently in the same time yields completely different results. As the ancients said, 'Same trade, different profits' – that's probably the meaning.
The best way to solve a problem is to prevent it. How to distribute effectively?
Manufacturer-dealer joint team: With the manufacturer taking the lead and the distributor assisting, jointly form a distribution team. Specifically, the manufacturer and distributor can jointly organize a distribution team and delivery vehicles, with at least 6 people and 3 vehicles. The manufacturer's personnel should preferably be the salesperson responsible for that market, or someone with management and distribution experience.
Concentrate on one or two areas for rapid distribution. Each vehicle should have at least 2 people. When distributing in township markets, generally no fewer than 2 vehicles and 4 people are needed. If vehicles and personnel are sufficient, consider conducting distribution activities in several places simultaneously.
Secondary wholesalers assist for rapid distribution. Since the manufacturer or distributor may be unfamiliar with township markets, the best way is to have secondary wholesalers lead the way, first distributing along their channels, then expanding to unfamiliar areas, which speeds up distribution.
Initially, secondary wholesalers may be reluctant to assist. They will cooperate only after receiving extra subsidies or after the company creates several model areas that show promise.
Specialized division of labor. Arrange personnel tasks reasonably: who negotiates, who posts POP, who unloads goods, who collects payments, who signs sales agreements, who arranges displays, who establishes customer files, etc. These tasks should be carefully prepared and rehearsed in advance to speed up distribution.
Create publicity. Distribution is also one of the best forms of publicity. For example, gather vehicles together and use loudspeakers to play music or company promotional materials, which can enhance distribution effectiveness.
Plan the distribution route to speed up. Before distribution, make a detailed plan for the entire route, avoiding detours. Contact customers in advance or send someone to communicate, ensuring time efficiency and success rate.
During distribution, manufacturers and distributors should note:
The manufacturer's personnel must be professional and possess certain communication and management skills. Because distributors generally have poor management and low business skills, the manufacturer's personnel must be professional.
Manage the distribution process well: adhere to the system of reporting in the morning and reporting back in the evening. Through daily meetings, train and improve the distributor's personnel's business skills, and list and solve problems one by one, not leaving them for the next day.
Vehicles and personnel must be concentrated and not act alone; otherwise, it's hard to achieve the expected results.
Have two or three product policies for distribution, but not too many, for terminal customers to choose from.
Act quickly during distribution. If personnel and vehicles are not in place, don't rush to distribute.
Distribute small quantities, and follow up frequently.
Ensure POP advertising and product display policies are well communicated during distribution. It's best to develop a standard operating manual.
When using secondary wholesalers to lead the way, consider giving them a certain profit margin so they are motivated to contribute their network and personally take you to distribute willingly.
It's worth noting that manufacturers and distributors must cooperate throughout the distribution process, as this not only reduces problems but also brings direct benefits:
First, the manufacturer's personnel are more professional, which speeds up distribution and helps improve the distributor's salespeople's skills.
Second, from the terminal's perspective, they are more willing to accept the manufacturer's products and services, so manufacturer participation in distribution enhances terminal sales confidence.
Third, through manufacturer-dealer joint rapid distribution, competitors can be suppressed, not giving them a chance to breathe in a short time, and winning valuable development time and space.
III. Picking Off Competitors' Weaknesses One by One
In real market operations, if we observe carefully, it's not hard to find many weaknesses in competitors.
For these weaknesses, new brands should adopt a strategy of picking them off one by one. For example, a liquor company attacked competitors' catering terminals.
First, its attack targets were very clear:
In a county-level market, select hotels where competitors have poor service or no after-sales service.
Select hotels where competitors once sent salespeople but have withdrawn.
Select hotels with good business but where competitors have not sent salespeople.
Select a small number of hotels where competitors sell well, generally 3-5.
Second, its attack methods were quite 'lethal':
Give waiters high commissions to induce them to sell the product.
Poach competitors' salespeople in the area with high salaries.
Recruit competitors' hotel promoters with high wages.
Implement large rewards with high winning rates to block competitors and attract hotel owners' interest.
Of course, these rewards are targeted. Once a hotel is selected, continuously 'bombard' it until the competitor withdraws.
Note: When delivering goods to hotels, big prizes should be given on the spot; if not delivered, don't install them. Don't install all prizes proportionally at once and wait for consumers to win. Otherwise, you might wait until the flowers wither and the big prize may never come out.
IV. Grasping Core Work: Stabilizing Profits and Consolidating the Market
Many liquor companies and distributors have good methods in this regard.
Grasp core customers: Set monthly and annual sales rewards or points-based redemption rewards in policies, using monthly/annual sales rebates or single-product time-segmented cumulative points to stabilize customers.
Grasp consumers: Set prizes, add red envelopes in liquor boxes, scratch cards on bottle caps, irregular promotional activities, tasting events, etc.
Grasp displays: For example, what reward for one month of display, what for a quarter or a year, with rewards increasing over time.
Grasp advertising: Either don't advertise, or if you do, invest extremely. The form can be single (e.g., only wall ads or painted door ads or in-store KT boards), but the investment should be thorough, extreme, and explosive.
Grasp consumers through exclusive events: Common examples include zodiac commemorative items (12 zodiac signs), collect all 12 to redeem prizes; Water Margin 108 heroes, collect them all for travel or material rewards; and restaurant coupons like 'spend 100 get 50' – all are good ways to lock in consumers.
In summary, there are many ways to grasp customers. Only by grasping customers and consumers can companies and distributors lock in profits, thereby stabilizing their position in county-level markets and laying a solid foundation for truly breaking through the market.
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