---
title: "Want Exclusive Dealers? Use the Four-Pronged Strategy: Divide, Entice, Pressure, Surround!"
description: "As long as some regions take action, we have a basis for punishing laggards. Accelerating the stratification of the originally united dealer groups is an inevitable process from collective hesitation to breaking the ice. Regardless of size or strength, every company desires exclusive dealers. This model, which requires dealers to dedicate all resources to a single brand or establish independent teams or exclusive stores, can transform dealers into quasi-subsidiaries or quasi-offices, greatly enhancing their cooperation and execution."
author: "李政权"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2015-09-13"
language: "en"
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original_source: "https://mp.weixin.qq.com/s/zLkXWBHBo4vljUlZ0GrYKg"
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---

# Want Exclusive Dealers? Use the Four-Pronged Strategy: Divide, Entice, Pressure, Surround!

> As long as some regions take action, we have a basis for punishing laggards. Accelerating the stratification of the originally united dealer groups is an inevitable process from collective hesitation to breaking the ice. Regardless of size or strength, every company desires exclusive dealers. This model, which requires dealers to dedicate all resources to a single brand or establish independent teams or exclusive stores, can transform dealers into quasi-subsidiaries or quasi-offices, greatly enhancing their cooperation and execution.

_As long as some regions take action, we have a basis for punishing laggards. Accelerating the stratification of the originally united dealer groups is an inevitable process from collective hesitation to breaking the ice._
Regardless of size or strength, every company has a desire to require dealers to be exclusive.
This model, which requires dealers to concentrate all resources on a single brand, or to set up independent teams or exclusive stores for a single brand, can turn dealers into quasi-subsidiaries or quasi-offices, greatly improving their cooperation and execution.
However, this is often a one-sided wish. Dealers often have many doubts, concerns, or even resistance, easily falling into collective hesitation.
In this potentially one-to-many struggle, how can companies take the initiative, control the pace, and successfully advance?
**1. Divide**
Li Zhengquan believes that when facing a monolithic market, we first need to divide and conquer, breaking the situation of "the law cannot punish the many" and collective hesitation.
1. Stratification effect.
We usually cannot achieve everything at once, so we need to prepare for small steps and gradual progress in advance.
Develop multiple cooperation levels for exclusivity in advance, and classify dealers into A, B, C categories based on their investment intensity (e.g., whether they invest all efforts, whether they set up independent business departments or promotion teams, whether they have independent offices and accounting).
Let dealers with different awareness and conditions find their place, and then gradually upgrade from exclusive sales to exclusive distribution. For example, if they cannot meet the conditions for exclusive distribution, they can develop towards exclusive sales with lower requirements. If they cannot cover a whole city, they can be given a district or a channel type for exclusive distribution or sales.
Of course, those dealers who do not accept exclusivity will eventually lose their position.
2. Promote a batch.
Refer to the cooperation levels for exclusivity, classify dealers, assess the difficulty of advancement, and start promoting exclusivity with dealers who are easier to change.
For example, P&G once introduced dealers from unrelated industries like real estate and apparel in its "exclusive focus" channel reform, precisely because these newcomers were more receptive to exclusivity requirements and more likely to set an example.
In addition, dealers with a large share of business, those with small business share but significant absolute profit contribution, or those in weak regional markets with strong growth momentum are all easier targets for promoting exclusivity.
3. Eliminate a small batch to warn a large batch.
For dealers who struggle below the average order amount, or have small absolute order volumes, and lack recognition of exclusivity, directly remove them from the team. This serves to clarify attitude, convey orientation, and create pressure.
Comment:
Letting some move first is the core purpose of "divide."
When some regions start to act, the company has a basis for punishing laggards. Accelerating the stratification of the originally united dealer groups into different communities is an inevitable process from collective hesitation to breaking the ice.
**2. Entice**
Enticing means formulating special interest incentive policies based on exclusivity levels, so dealers can see the benefits, see that they can make money and grow stronger.
How to make dealers believe this?
1. Quantified support.
Promoting exclusivity requires special market support policies to induce. Quantification strengthens trust; all support policies can be quantified item by item. For example:
Compared to before exclusivity, how much has the return/exchange quota increased;
How much additional exclusive subsidy is provided;
How much more advertising, promotion events, and promotion expenses are added;
How will terminal entry, advertising materials, and display support be amortized;
How many person-times, how long, and what level of co-selling effect will the co-selling team provide on-site.
2. Profit commitment.
The annual advertising budget, promotion rate, marketing management costs, gross profit, and the potential for terminal coverage, barcode distribution, per-store sales, and market improvement should all be clear to the company and regional managers. With these clear, we can even make profit commitments to dealers.
For example, a building materials company promised dealers an annual profit rate of no less than 15%, with the company making up the difference if short.
3. Software upgrade.
Prepare feasible solutions for helping dealers make money and upgrade their management.
The manufacturer's relatively mature management concepts, models, and manager teams are attractive because dealers need improvement and development, need to prevent the manufacturer from "withdrawing," and need to reduce dependence on the manufacturer. Therefore, we must emphasize and utilize support measures such as management output and team training, clearly stating that we will exit after cultivating qualified sales managers and a business team for the dealer, truly building the dealer's capabilities.
Comment:
Rewards will stimulate dealers' enthusiasm, and those who receive rewards are unconsciously seen as role models. Moreover, incentives can strengthen the momentum of the "susceptible group," influencing the "general public" to form a herd effect, helping accelerate the entire process.
**3. Pressure**
Only with pressure will there be change. To promote dealers' rapid transformation, continuous pressure is inevitable.
As shown in the figure, to ensure effective pressure, it is recommended to form a pressure transmission chain, making dealers see that "not transforming is not an option," or even "must transform whether they like it or not."
1. Top management shows determination.
The general manager and marketing director must repeatedly and frequently express their determination to promote exclusivity, suppressing the wait-and-see atmosphere among hesitant dealers.
2. Middle-level segmentation.
Carry out segmentation on dealers who are easier to "cut," re-dividing their territories and channels, shrinking the original dealers' sphere of influence, making more dealers feel the pressure that if they don't cooperate with exclusivity, they will be segmented, and eventually replaced.
3. Team takeover.
Before promoting exclusivity, we can increase control over dealers' sales staff by hosting dealer business meetings, training, distributing bonuses, and purchasing insurance on their behalf.
We can even, under the premise of promising sales and profits, send managers and key business personnel to station at dealers, serving as their marketing directors or sales managers, taking charge of their sales teams and business. Of course, these are all ways to achieve control over dealers through effective assistance.
4. Downstream becomes "new force":
Penetrate services and support to distributors below dealers, inducing some willing distributors to transform towards exclusivity. This will transmit more pressure to dealers.
Comment:
Without pressure, any reform will lose momentum.
Gree Electric has adopted a series of measures, including supporting dealers' downstream merchants, to continuously pressure joint-stock sales companies and their invested dealers to maintain the "purity" of the exclusive sales system.
Gree's joint-stock sales company model has always been a source of pride, but some "disobedient" joint-stock sales companies appeared in its sales system—some joint ventures engaged in "extracorporeal circulation," transferring Gree resources to newly registered personal companies.
To curb this trend, Gree gradually increased shareholding, rotated senior management to prevent corruption and collusion, penetrated dealer networks to downstream distributors, and quickly formed new companies to replace old sales companies. Later, it gradually established some wholly-owned sales companies. Through this pressure transmission, Gree effectively enhanced the execution of the exclusive dealer system and control over regional sales organizations.
**4. Surround**
Surrounding means creating emotion and marketing atmosphere, making dealers immerse in the fervent atmosphere of this movement, accelerating response and transformation.
Based on Li Zhengquan's experience, during the gradual advancement process, dealers' mindsets have changed significantly and are accelerating transformation. If we use media or measures (training, meetings, internal publications, websites, public media) to promote the orientation and the benefits of pioneers, it will form a surrounding effect on other "backward" dealers.
For example, in the dealer system, there is usually a chain of connections. If pioneers make positive comments in daily communication, hesitant dealers are more likely to cross the threshold.
Another example: at dealer conferences, set up a special segment where transformed dealers share their experiences, and pair it with incentives like "sign agreement on-site for rewards," which may accelerate hesitant dealers' decisions.
From top executives to sales staff, repeatedly publicizing success stories in different occasions and regions, amplifying the exemplary role of a few "loyal dealers," is also an excellent way to create atmosphere.
A series of actions and results can also be publicized through internal publications, websites, and even public media, forming and amplifying the public opinion wave leading the transformation.
Comment:
Let me explain with examples. During P&G's "exclusive focus" campaign, while public media touted P&G's dominance, it also created a psychological impact on dealers who were slow to adopt exclusivity: "If I don't transform, I might be next."
And a listed company in the health products industry announced in its annual report that it had "signed exclusive agreements with over 80% of dealers," which is also a form of siege against stubborn dealers.
Whether you admit it or not, this is both a contest of strength and a battle of psychology.
_This article is from the WeChat public account [Business Trends], excerpted from Li Zhengquan's (WeChat ID: lizhengquan01) upcoming book "Leadership Execution" (tentative title, or "Marketing Execution")_
**-END-**********
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