Market Expansion Of Small And Medium Enterprises

The success of small and medium-sized enterprises often starts with the success of a regional market. The growth of small and medium-sized enterprises depends on the continuous expansion of regional markets.

On the other hand, the regional characteristics of the Chinese market are very different. Therefore, whether the SMEs can summarize and abstract the successful mode of the base market expansion and successfully replicate in the differentiated regional market determines whether the SMEs can really grow up.

This article talks about the successful expansion mode of regional market for SMEs, for reference only.

First, market research.

The purpose of Market Research for regional expansion is to find the target market and find opportunities for development, and seek scientific basis for the future direction of enterprise resources input and development strategy.

It mainly includes the following aspects:

1. regional market basic information, such as administrative region, economic status, population distribution, human environment, geographical location, market capacity and growth, KA distribution, wholesale market, key customers and consumer analysis (such as consumption level, consumption behavior, consumption characteristics);

2. competition brand information, such as competition brand pattern and sales performance of main competitive products, product line, price system, channel structure, terminal form, promotion and marketing team, etc.

3. the analysis of channel members, such as the willingness and reasons of the existing channel customer cooperation, such as large sales volume, strong brand, strong profitability, good manufacturers' coordination, etc., the strength and control ability of offline distribution, and management consciousness.

4. self resource analysis, such as enterprise SWOT analysis in the regional market, prophase problem, cause analysis and solutions.

Two. Identify target market.

Regional expansion of small and medium-sized enterprises is often random and blind because of lack of strategy, which is often caused by "shotgun fighting birds", which results in a "wide range of income", which is incompatible with the limited resources of small and medium-sized enterprises.

Therefore, the first step is to identify the target market through market research, and then focus on resources and seek breakthroughs.

The target market should not be too big, otherwise it will not be able to take care of the differences in the regional market. For example, a small and medium sized beer enterprise is a national top 100 county market, and it can be completed to every township.

The target market can be established with reference to the following conditions:

1., there is more room for sales promotion (market capacity and growth, and the blank rate of the outlets in which the company can sell).

2. similar products have a good sales performance at the terminal (reaction consumption is similar to the same products, less market education cost).

3., we can quickly find the right distributors.

4. there is no vicious record of the enterprises and products in the channel members or consumers in the region (such as integrity issues or quality exposure problems).

5. the company is well aware of the situation in the region and has the right people to implement it.

Three. Look for sales opportunities.

After identifying the target market through research, we need to further analyze what opportunities we have in the various marketing factors corresponding to the resources of our enterprises, which may be the opportunity for us to quickly cut into the market at low cost.

1. product structure opportunity: through the collation of past sales data, analyze the contribution rate of each item to sales volume, and then adjust the marketable product mix. Through proper adjustment of the existing product structure (product structure of different regions / channels, etc.), you will have predictable sales growth.

2. network coverage opportunities: how many blank outlets are there in the area?

One more point, one more source of output.

3. terminal display opportunities: good terminal display performance can directly promote sales, "vividness is tomorrow's sales", so the shelf resources of stores are so precious.

In the analysis of regional expansion, enterprises can analyze the feasibility of display in detail according to different regional and system stores, and make efforts on display locations, display forms, product ranking, layout, sorting, implementation of display principles and display rewards. Good terminal performance will bring better sales performance.

4. dealer opportunities: can we promote the good sales performance by setting up, replacing and adjusting dealers, such as reducing the number of distributors in the original sales area, replacing the inefficient dealers, etc.

5., the two batch of opportunities: can we give the two batch of policies to stimulate the enthusiasm of the two batch, and the large number of two batches can help fast distribution and short-term volume.

6. channel innovation opportunities: are there any other ways to sell your product?

For example, the channel structure design of station terminals, airports, schools, tourist attractions, Internet cafes, cinemas, vending machines, group buying, and so on, there is an opportunity to sell more products.

7. promotion opportunities: considering the competition situation, designing scientific and operable promotional activities according to the different links of product sales will achieve the purpose of promoting sales.

8. price opportunities: products usually have high and low grade, each grade will have different competitors, and can compete with different competitors in different situations.

Looking for opportunities is like finding treasure. The most important thing is "subdivision". The factors that affect product sales, such as subdivision area, subdivision system (traditional channels, modern channels), subdivision channels (distributors, two batches), subdivision networks (catering, schools, matrimonial shops) and so on, will surely increase sales vitality.

Four. Develop regional marketing plan.

After analyzing the opportunities of enterprises in the regional market, these thoughts need to be formed into regional marketing planning. A complete set of regional planning plans should be able to expound the complete mode of regional market development. We can have many kinds of thinking tools such as 5W1H, PDCA, plan, organization, leadership, control, 4Ps, etc. its key point lies in its strong persuasion (low cost, fast start up) and strong operability.

This article lays particular emphasis on the following points:

1. set realistic goals.

The formulation of sales targets is not a matter of wishful thinking. It is necessary to combine the resources of the market itself, competitors and enterprises to formulate the total sales target that is in line with the company's development. It is more important to decompose them according to factors such as time, region, channel, customer and so on, and define the specific goals of each stage and the possible ways to achieve them.

In addition to the sales target, we should pay special attention to indicators such as distribution rate, dealer development and re stocking rate.

2. reasonable allocation of sales expenses

The resources of small and medium-sized enterprises are relatively poor. In the implementation of regional development, "low cost" is a key issue to consider. How much money can be achieved and what effect can be achieved requires serious planning.

Careful consideration can increase sales volume of each way, the way to achieve it, the cost needed, the influencing factors of each link and the result evaluation.

The following aspects should be emphasized in the allocation of sales expenses.

2.1 is it within the scope of company expenses?

2.2 is it possible to get extra support from regular expenses, such as bar code fee, shop entry fee, management fee of guided purchase personnel, special exhibition fee and so on.

2.3, the reasonableness of cost input, the purpose of cost input (channel incentive, promotion of image, sales promotion, interception of competing products, etc.), form (promotion, promotion, purchase of auxiliary products, adjustment of entry items, increase of personnel, etc.), cost control and predictable investment / production ratio.

3. find the right dealer.

Finding a distributor is a way to quickly launch the regional market.

Because of the pressure of funds and the unfamiliarity with the regional market, small and medium-sized enterprises often adopt the dealer system when developing regional markets.

3.1 regional expansion dealers do not necessarily have to be the biggest, but whether they can become the first-line products of their distribution is very critical. This is because there are many uncertain factors in the early operation of the regional market, which requires the operators to pay attention to them all the time, and the big dealers may not have this idea for you.

Focusing on the following conditions:

There is a business philosophy suitable for enterprises, which can cooperate well with enterprises and develop together with enterprises.

Capital can meet the needs of market operation.

Considerable market operation experience and network resources.

3.2 to expand the distributors in the region, enterprises should share their market share with them. They should feel that the "coming mountain is their own". We should fully consider their opinions in the process of market operation, such as channel structure design, downstream channel policy formulation and regional promotion activities.

4., develop regional markets with joint efforts.

The expansion of the regional market is actually a joint effort. We must keep pace with this rhythm so as to achieve harmony.

For example, a liquor to a new market, we can consider the advanced restaurant in the off-season, so that because the new product price is opaque, dealers are willing to operate, the catering channel is cooked, the enterprise can consider changing a packaging into the super business to enhance the image, have a certain reputation and then release the goods to the wholesale market and so on.

Five, continue to consolidate the achievements.

The results of regional expansion are actually very fragile.

We may have put all our products into various channels through various efforts. The rate of distribution has come up, and supermarkets have also entered the field. But if they are not really consumed by consumers and form a cycle of restocking, the results will not be fulfilled.

For example, due to poor sales performance, the supermarket will probably let you clean up in two months, and if the goods of those small shops are unsalable or let the small boss lose a few cents, you will not easily get the goods into the shop.

Therefore, regional expansion is not only to spread products into the market, but also to consolidate the purchase through the later stage to achieve the cycle of re stocking.

After entering the market, small and medium-sized enterprises can consider centralized marketing expenses and create templates for key customers in regional markets (such as key distributors, key business super systems, etc.).

From the product sales volume, market performance, market management, customer service and so on, we can confirm the model benchmark. First, we should do a lot to many distributors and small businesses. Our products can be sold well, and enhance their confidence. At the same time, we can sum up and extract more specific successful models to be replicated and promoted.