How Do Distributors Develop New Product Markets?

The steady growth of the market is more important than anything else.

As the agent of the manufacturer's regional market, what is the target of the market?

Some people think that sales volume is considered to be a market share and some people think it is a profit.

If I tell the dealers that many dealers have gotten these, but later they are lost, they must not be surprised, because such things happen almost every day.

Dealers need sales, but they need stable sales.

Dealers need market share, but they need stable market share.

Dealers need profits, but they need stable profits.

Dealers do not need a short-lived market boom. What they need most is market stability and sustained growth.

The process of stabilizing the market

From new product development to new market and stable market formation, there are basically three stages.

Stage one: single product breakthrough

Generally speaking, at the early stage of market development, manufacturers and distributors are unable to promote multiple products at the same time, so they have to rely on the momentum of a single product to form a good start in the market.

The breakthrough of single product needs to be done in the following aspects:

First, choose a mass product that can be measured.

The purpose of single product breakthrough is to form a sales network. Only a product that can be measured can form a perfect sales network. The two is to form brand awareness, and only products that can be measured can have brand influence.

Second, explosive distribution forms market coverage.

Explosive distribution requires fast speed, large volume and high market coverage.

Explosive distribution can achieve the following effects: first, let the competing products be caught off guard, and quickly complete the distribution of goods before the competition policy is released; two, the rapid distribution of terminals will create momentum for the two batch, terminal and consumer confidence.

The third, second batch of stable high profit inducement.

The two batch plays a vital role in the two batch of dominant markets, especially in towns and townships.

The only motive force for the two batch of selling unknown new products is profit space. If new products do not provide more profit margins than other products, they will not get through the two batches of products. They will not be able to reach the terminal and lose the opportunity to meet consumers.

Fourth, terminal strong shopping guide.

Old products and famous products can sell themselves, and consumers are habitually buying.

How can new products that consumers are not familiar with can be sold?

It is strongly recommended by the terminal.

If the staff of the retail terminal do not recommend it, the manufacturer or distributor will send someone to the terminal to do the shopping guide.

Fifth, regional market, such as county level market, is driven by short-term high-density advertising.

The commonly used strategy of the two or three stream brand is to form a strong brand in a regional market and give the consumers a first-class brand image in the regional market.

Because the advertising cost of the regional market (such as the county level market) is very low, the advertising fee of tens of thousands of yuan can start a market. Therefore, when the goods are being distributed, high density advertising should be promoted, and "push" and "pull" should be combined to start the market.

Sixth, carry out a strong promotion campaign of not less than three waves in half a year.

Do not rely on a large-scale promotional campaign to fully launch the market.

Many new markets are lost due to insufficient thrust when they start.

Therefore, the continuous three wave of strong promotion is very necessary.

The second stage: forming product clusters

First, around the main brands that have achieved single product breakthroughs, the pressure to extend new products and share the proportion of leading products is too high.

Single products are easily attacked by competing products, and they can not take effective strategies to fight back when they are attacked. If the attack on competing products is ignored, the market will be affected; if counterattack, the profit margins will decline.

After forming the product group, we can use the product group to fight back strategically.

For example, the competition between a product and competing products, and the profits of other products.

Second, the new product adopts the way of "high opening and low walking" to enter the market.

Remember, in accordance with the requirements of most salesmen and distributors (quality is higher, packaging is more beautiful, the price is lower, the policy is better), the promotion of new products will be defeated.

To extend the life cycle of new products, we must give ourselves enough room to retreat - price space.

Therefore, the price of new products will be higher when they enter the market.

Third, through the "product group" to form "well-known brand" rather than "well-known varieties".

The excessive strength of a single product will lead to the phenomenon of "brand is variety", which is an obstacle to the promotion of new products.

Many varieties under a brand umbrella can enjoy the protection of brand umbrella, and provide consumers with the choice space. If they are not satisfied with this brand, they can choose other varieties.

Fourth, "product group" can also make competitive products difficult to have targeted policies.

Competing products generally do not attack all product lines. They usually choose the largest or most threatened variety to attack.

If the product is single and all attacks are concentrated on one product, the product may become a victim.

Under the "product group", the sacrifice of any product will not fail completely.

The third stage: forming product structure

"Product group" is generally an extension of the same grade, while the "product structure" is an extension of the grade.

Although many companies have succeeded in sticking to a single product grade, especially in high-end products, such as high-end clothing, this strategy may be effective.

However, in the field of mass consumer goods, the structure of single grade products is still problematic.

First, structure is the only strategy.

Enterprises should often make strategic combinations of products to meet the needs of consumers at different levels.

Low end products can be loaded, but the profitability is limited. Its functions are: first, to open up the network and form a market coverage; the two is to form brand influence, because consumers of low-end products are numerous; the three is to allocate sales expenses; the four is to form scale effect; the five is to support personnel.

The mid end product has both sales volume and profit, and its role is to form stable cash flow and stable profits.

Sales of high-end products are limited, but profit margins are high, which can form corporate image.

Second, the market for a single product or product group is unstable.

The outcome of single product competition is either losing money or withdrawing from the market.

Third, the key to win the price war (policy war) is effective product structure.

In the Chinese market, the price war of low-end products is inevitable, which is determined by the demand characteristics of consumers and the characteristics of market competition unless they withdraw from the competition of low-end products.

Enterprises must not evade the price, initiate the price war or welcome the price war.

At the same time, we should use price war to defeat our opponents and make money in the price war.

The only way to achieve this goal at the same time is to support the low-end products in the price war with the profits of high-end products.