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In supermarket displays, unknown brands are often placed next to big brands to drive product sales through this 'neighbor' tactic—this is the 'leveraging big brands' rule for product display. In fact, this method also applies to liquor distributors. By partnering with major domestic and international brand manufacturers, distributors can rapidly elevate their corporate image and industry status. Ultimately, by hitching a ride on this big ship, a company may climb several levels within a few years, completing the transformation from small vendor to scaled enterprise. Examples abound.
Yanghe Blue Classic series has created countless million-level distributors. In fact, the brands that have made 'big merchants' are not limited to Yanghe; in previous years, those selling Moutai, Wuliangye, etc., all reaped substantial profits. Indeed, when distributors 'leverage big brands,' they gain the opportunity to develop and grow alongside national first- and second-tier brands. Especially for distributors just starting out, partnering with large enterprises and brands offers numerous benefits, and these strong supports directly propel the distributor's rise and takeoff.
So what exactly are the benefits of 'leveraging big brands'?
First: You gain the influence of powerful brands and advertising on the market. Second: You may receive financial support from the manufacturer. Third: The manufacturer's sales staff assist in developing the terminal network. Fourth: You can systematically learn the methods of large manufacturers in managing markets. Fifth: Large enterprises with strong strength focus more on long-term goals in customer cooperation. Sixth: The agency rights to a big brand are a golden signboard, attracting more big brands and manufacturers eager to cooperate with you.
With so many benefits, everyone rushes to 'leverage big brands.' It would be false to say they are not tempted. But it's easier said than done; not everyone can leverage a big brand. Big brands also look with a discerning eye, even pickily, for suitable agents. In a market like a battlefield, facing a diverse array of distributors, big brands are always making choices.
1. If you have certain resources and strength, 'leveraging big brands' becomes effortless! If a distributor has certain resources and confidence, they can negotiate with first-tier famous liquor brands with more confidence, and big brands will also proactively approach them, making 'leveraging big brands' smooth!
2. The key is the second situation: many distributors are just starting out and are not a match for first- and second-tier brands, failing to attract their attention. For such small and weak distributors, to attach themselves to famous liquor brands, they must on one hand rack their brains and use every means to strike up a conversation with big brands, and on the other hand, be willing to play second fiddle, starting as small sub-distributors or retailers, making distinctive achievements, and only then have the opportunity to attach to first- and second-tier famous liquors, or even become agents.
So, how can the majority of small and medium distributors win the favor of large enterprises? It can be summarized in a few phrases: Seek opportunities externally, strengthen foundations internally, cater to their preferences, and build relationships!
1. Seek opportunities externally On one hand, seize opportunities—that is, opportunities to cooperate with big brands. When opportunities come, you must be able to grasp them. Sometimes, when ordinary people do not see an opportunity, you need to rely on your judgment. On the other hand, if there is no opportunity, create one. Effectively creating opportunities is the prerequisite for seizing them!
1. Create opportunities to contact big brands Situation 1: A big brand already has a local agent If a small distributor favors a big brand, do not avoid contacting the manufacturer's sales staff just because there is already an agent in the local market. If you do, you will forever sigh at the brand. You should seek every opportunity to meet with the manufacturer's sales personnel, with the mindset of making friends first and discussing cooperation later. In interactions with sales staff, consciously or 'casually' (actually deliberately) show interest in the brand. At the same time, express admiration and recognition for the salesperson, laying the groundwork for future cooperation.
Situation 2: A big brand has no agent locally yet Small distributors, due to tight staffing, often handle many matters personally, spending all day on the sales front line, making it hard to find time to learn about the latest product trends in outside markets, so their information sources are nearly closed. When they occasionally learn that a certain brand or category is performing well and want to become an agent, they find that there is already an agent locally.
To address this problem, there are two solutions: First, entrust the sales personnel of the brands you already represent to keep an eye out in other markets for newly launched, well-performing big brand products, and introduce you to the relevant manufacturers' sales staff to create contact opportunities. Second, regularly keep in touch with peers in other markets to learn about new product information in those markets, and select suitable brands to represent.
2. Effectively connect with big brands Due to their own limitations, small distributors are 'not a match' for big brand manufacturers. In a sense, wanting to represent a big brand can be like unrequited love. To make a 'poor scholar marry a rich girl,' you need to do the following connection work.
Plan 1: Create a harmonious atmosphere and treat others with humility Small distributors often imagine big brand sales staff as 'big factory bullying merchants, unapproachable,' and think they will not favor small distributors like themselves, thus losing opportunities to cooperate. In fact, most big brand sales staff are more willing to cooperate with small distributors. The reason is simple: although large distributors are well-matched with big brands in all aspects, the advantages of large distributors often become leverage to threaten and constrain the sales staff. Large distributors have no shortage of funds, channels, networks, brands, products, or even ideas, to the point that 'the guest overwhelms the host,' making the manufacturer's sales staff weak in the cooperation.
In response, small distributors should create a relaxed, casual, and harmonious atmosphere when contacting big brand sales staff, treating them as friends and being humble, making them feel that you are a trustworthy friend. If they cooperate with you, it will be a pleasant experience, and you will respect and cooperate with each other to do the market well.
Plan 2: Know their needs and prescribe the right remedy To gain cooperation opportunities with big brands, being humble is not enough. You must also understand their basic market operation ideas and special requirements, such as channels, networks, business models, and requirements for distributor product categories, manpower, and materials. Then, based on these requirements, formulate a detailed and thorough operation plan, do what the manufacturer wants to do, say what the manufacturer wants to say, and make the sales staff feel that your business ideas align with the company's. When explaining these issues, avoid being false, grandiose, or empty; focus on practicality, effectiveness, and operability.
2. Strengthen foundations internally Distributors at the start-up stage are not strong, lacking funds, manpower, and customers. Sometimes the temptation to take on small brands is great because profit margins are larger, and if you are not far-sighted, you can easily get distracted. In the end, you will find that after three or four years of busy work, your company is still in the same place.
Case Study Mr. Wang is a liquor distributor in a prefecture-level city in Hebei. He has been in the liquor business for nearly 8 years since starting his business. Reviewing his business history, before 2009, he switched one or two small and medium liquor brands almost every year and never cooperated with a formal large enterprise. As a result, by the end of 2009, Wang Cheng was still in the third or fourth tier among local liquor distributors. With the intensifying competition in the liquor market and the increasing brand awareness of consumers, Wang Cheng found that the small and medium brand liquors he operated, due to weak brand influence and appeal, were increasingly difficult to get terminal stores and consumers to accept, causing his business to decline and plunging him into deep distress.
At the beginning of 2010, Mr. Wang conducted market visits and exchanged learning with distributors who were doing well in the industry. He found that distributors cooperating with large liquor production enterprises not only had larger profit margins but also had stronger brand influence and appeal, stable product quality and sales, and no major market fluctuations. Although these distributors faced greater pressure from the enterprise, large enterprises managed more standardizedly and provided greater support to distributors. In addition, large enterprises, based on actual market operation conditions, would irregularly send sales personnel to help distributors solve operational problems, train distributors and their teams, and organize distributors to visit, exchange, and learn at base markets. As long as distributors implemented the manufacturer's operational ideas without compromise, they could gain enterprise support and continuously expand their market network.
Combining the development trends of the liquor industry and the current situation of his company, Manager Wang believed that to establish a foothold and develop long-term in the liquor industry, he must cooperate with large enterprises and win their favor. He realized that he did not yet have the conditions to negotiate with large enterprises. However, for better development, he had to create conditions to cooperate with large enterprises even if it was temporarily difficult.
Through investigation, he learned that 'A brand (with annual sales exceeding 1 billion in Hebei Province) had a sub-distributor in the urban area who did not actively cooperate with the enterprise last year, resulting in the failure to meet sales targets in that area, and the enterprise was looking for a suitable sub-distributor to re-operate the area.' After receiving this news, Mr. Wang immediately contacted the office manager overnight to seek cooperation opportunities. He said that if the enterprise gave him the distribution rights for the area, he would pay 10,000 yuan more in deposit than other sub-distributors when signing the contract, guarantee to complete the enterprise's basic indicators such as store coverage rate and promotional visualization in the area within three months, and give up the other small and medium liquor brands he was currently operating, concentrating the company's existing manpower and resources to operate the area market. Manager Wang's sincerity moved the office manager. As promised, he concentrated manpower and resources to strictly follow the enterprise's regulations in operating the market. After three months of market operation, the area's performance was on par with other sub-distributors. After half a year of effort, he finally achieved a 'spark can start a prairie fire' situation.
During this period, he also proactively requested the enterprise's sales personnel to provide training for himself and his employees on problems in market operation. By the end of 2010, A brand's sales exceeded 10 million, and he ranked first in the comprehensive evaluation among the four sub-distributors in the urban area, gaining recognition from A brand's regional manager. When the enterprise launched a new product category in 2011, he was upgraded to a first-level distributor for A brand, responsible for operating the entire urban market, achieving a magnificent transformation.
Mr. Wang's process of winning the favor of a large enterprise is quite representative. To summarize, it comes down to the following points:
1. Identify the 'opportunities' in the original agency system , set clear goals and go for it! At the same time, the manufacturer also has a need to develop new members.
2. Take the initiative to 'surrender' to the local office manager , and show more sincerity than ordinary distributors, such as paying an extra 10,000 yuan deposit.
3. Concentrate all efforts on the market , performance is the best voice.
4. Proactively request the manufacturer's personnel to come for 'training,' a positive and eager learning attitude is crucial.
So, what strategies should small and medium distributors adopt in their development to win the favor of large enterprises?
5. Establish correct business concepts and ideas. As 'big brands,' many enterprises generally choose distributors or dealers whose ideas are similar to theirs. Small and medium distributors, due to their small scale, must continuously adjust their marketing ideas to adapt to new environments based on market changes.
6. Strengthen learning and continuously improve professional knowledge. Large enterprises favor cooperation with distributors who are professional and can grasp market cooperation trends, as this improves cooperation efficiency and saves operating costs. For large enterprises, the operational capability of frontline distributors is crucial for effectively controlling the market.