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    Dealers Survive, Strategy Wins.

    2008/8/15 9:09:00 7

    Distributor Strategic Channel Value Chain

    Dover distributor is a non-staple food distributor in a central capital city of central China. The main dairy agent in the early years also represents many other sugar and wine brands. Its size is small, and it is also a small dealer in the industry. However, in less than two years, he has jumped from less than one million monthly sales to the leading producer of local dairy products, with a monthly sales of over eight million.

      

      要做渠道價值鏈的關(guān)鍵節(jié)點

    In the past, almost no manufacturer found DF as an agent, but it was hard to win the agency right of a dairy brand. However, the sales volume was too small for manufacturers to pay attention to.

    How to get support from manufacturers and borrow chicken and eggs is a breakthrough point for dealers to make great progress.

    From the perspective of channel value chain, dealers are only a common node in the chain. The main function of distributors is to distribute products, or to upload the "setters". The two batch of retailers and retailers also have the basic functions of "setters". We can see that they only have such functions that are simple and not exclusive. Facing brand dealers, there is no dialogue capital, and naturally they will not be taken seriously.

    However, in many industrial value chains, for example, P & G has the brand assets deeply rooted in people's hearts. Because Coca-Cola has a unique formula, there are also some health care products distributors or marketing teams who have the advantage of marketing planning and market operation, and they naturally occupy the leading position of the value chain. The fundamental reason is that they have grasped the resources of the "bottleneck" or "relative advantage" of the whole value chain, thus enhancing their status.

    The king of Dover is enlightened. If he can master a core link of the whole value chain, the natural manufacturers will take a look at me. Once it becomes a pattern of "lips and teeth", it will be unnecessary for me to "ask" them, and the manufacturers will continuously give me resources so that I can maintain their unique competitiveness.

    Though the idea is good, how can we make the key nodes of the channel value chain?

    The first thing to solve is to find out what is the unique value point.

      

      尋找價值鏈的自我價值

    The value created by their own and even the entire channel value chain should be determined by consumers, because consumers do not pay for those values finally, so the so-called "value" can not be realized, and naturally there is little value to talk about.

    If you want to know your value, you must understand consumers. Wang decided to conduct a statistical survey of consumers, hoping to see the clouds in the survey results. In the survey, Wang learned that the main motivation of dairy consumers to buy is to maintain health and freshness. The former cares about formula and efficacy, and the latter cares about the ability of logistics distribution.

    Then the consumer grades each item from 1 to 10 points, so that consumers can score the satisfaction of all aspects, and summarize the results.

    When Mr. Wang associate the motivations of consumers with all aspects of the channel, (like picture), there is a sudden rush of joy in the heart. Only logistics is the core competency that dealers can grasp. Moreover, their achievements in this link are not good, but as long as they can improve themselves slightly, their effectiveness will be twice the result with half the effort at the level of meeting the needs of consumers.

    At this time, Wang began to figure out that if he could add two small "bread" again, the efficiency of distribution could be doubled, not only to replenish goods in time, but also to ensure that the terminal was out of stock, and that the date of production could be guaranteed, and that the production date that was more fresh than competing products would undoubtedly give consumers two decisive psychological hints: first, the closer the production date of the product was, the faster the product would be sold and the faster the turnover would be; secondly, the closer the date was, the more fresh the product would be, and the more nutritious the product would be.

    And the two are the most direct reasons for promoting consumer decision making.

    As long as the average monthly sales increase of 30%, only from the perspective of financial figures, within a year, not only can we recover the investment cost, but also have substantial profits.

    Mr. Wang immediately learned about his colleagues and found that he had the same distribution strength as his own dealer. Even though he was a large dealer, although he had strong pport capacity, he had to wait for orders at some time when he had many kinds of goods to run.

    Generally speaking, the whole industry is still very extensive in terms of logistics and distribution, that is to say, there is a great chance to get gold out of the field of logistics, which has strengthened Wang's idea.

      

     說服廠家,獲得支持

    But the problem is coming again. For a small dealer, it seems a bit too risky to invest so much. If we can get the support from the manufacturer, it will be like a duck to water.

    Wang found the representative of the factory and truthfully informed his findings and investment plans, and hoped that the manufacturers could give support to them.

    He gave the manufacturer three reasons:

    First, the core value of dairy products is nutrition, and freshness is the most decisive factor of nutrition. In the relatively extensive period of logistics distribution in the whole industry, it can take the lead in raising the level of logistics, making it easier to establish and maintain the industry's leading edge, and set up and boost barriers to entry.

    Second, for competitors, compared to the current advertising campaign, this is undoubtedly a more pragmatic approach. From the economic law of diminishing marginal efficiency, logistics is the weakest link, and it is also the most neglected link. If we work hard here, the effect will not only be the most significant, but also will throw the opponent farther.

    Third, for consumers, it also marks the pulse of consumers, which not only brings the highest satisfaction to consumers, but also is a synergy based on maximizing customer value, which is a win-win situation for consumers, manufacturers and dealers.

    As Wang had expected, the manufacturer made a commitment to the scheme, and the manufacturer promised 10% of the investment and offered interest free loans to the rest of the rest. At the same time, it did not forget to give Wang a difficult problem: the dealer should be promoted by 45% in one year.

      

      內(nèi)部調(diào)整

    A beautiful plan, if it can not be carried out, is only a "beautiful soap bubble". In the face of the 45% performance growth requirement, Wang has worries, but the most urgent task is to carry out the key.

    In order to ensure that the expected plan is fulfilled, Wang has hired professional personnel in charge of logistics, responsible for establishing and improving the internal management system, improving the level of distribution operations, and even adding computers, fax machines and other hardware to improve the ability of information collection and processing.

    No matter what measures it takes, it aims at one, ensuring that the date on which products are placed on the shelf must be the nearest and better than the competitors.

    Then, in a large number of stores, POP is applied to consumers to enlarge and enhance the "fresh" purchase of products, stimulate consumers to buy, and even severely demand that they must display products and competing products on display, so that consumers can make comparisons and make rational decisions.

    In less than two months' efforts, sales growth has begun to show signs, and its monthly growth rate has already exceeded 45%.

      

    Don't do the biggest, do the most professional.

    Wang tasted the sweetness and saw more hope.

    In the course of the implementation of the plan, let Wang realize more: from improving logistics to ensuring product freshness and nutrition, and then improving consumer satisfaction, and then increasing sales volume until more genuine gold and silver flow into purse strings, these are just one; and more importantly, by enhancing logistics capabilities, the whole channel value chain can form a comparative competitive advantage. However, to maintain this advantage, it is best to consolidate its competitive position even when the opponent is still asleep.

    How to pform comparative competitive advantage into core competitiveness, Wang is in deep thought again.

    The core competitiveness is nothing more than a nickname of "extreme professionalism". The most direct requirement to accomplish this pformation is "to do more professionally".

    To be more professional, the front line can not be too long. Why not shrink the front line?

    This is also killing two birds with one stone: first, they will "cut off" the products that are not related to dairy products, eliminate the problem of dispersed distribution points, distribute lots and quantities, and strengthen the professionalism of the services. Secondly, they can also apply for resources for the manufacturers to "gimmick". After all, they are more dedicated to manufacturers, and manufacturers give more support.

    So Wang's old trick was implemented again by promising 60% increase in factory sales, in return for the company's regular training in logistics management and its ERP system.

    Secretly, Wang is still playing his wishful thinking, not only to become a professional dairy agent, but also to make the largest dairy logistics provider in the province, and to "provide the most fresh dairy products to the whole province's villagers" as their business mission.

    Since having this idea, Wang is not very much like other distributors. The first thing to consider is how to enhance and improve their logistics management level. On this basis, we should consider how to promote the growth of short-term sales volume and promote the value added of long term brand assets.

    Only by expanding the cause and forming the scale effect, and at the same time, reaching a highly specialized level, it is possible to talk about shaping the core competitiveness of ourselves and the value chain, because without scale and specialization, it is easy to imitate through relatively small capital investment; however, if there is scale or specialization, there will be no distinctive value or appeal, and its scale is also difficult to sustain for a long time.

    "Promoting the scale growth by specialization" has become the development strategy of Dover, starting from specialization and promoting scale effect. In turn, the scale effect supports the upgrading of professionalism, and the two promote each other and complement each other.

    With a clear mission and strategy, dealers will no longer worry about how to use promotional resources.

    On the road to growth, Dow Fu sang a song of triumph, and soon became famous. Many dairy brands went all the way to achieve today's Dover.

     

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