Wahaha: A Coherent Marketing Network

Speaking of Wahaha, we can not fail to mention the famous "joint sales Body" business model.

Beginning in 1994, Wahaha began to standardize the market with a brand new mode of "joint sales".

The attraction of "joint sales" is that manufacturers and businesses can achieve common profits in this network.

At present, there are about 4000 dealers in China playing the role of "weaving net" for Wahaha.

In the vast county and rural market, Wahaha's "big net" can do this: within a week, Wahaha products can be spread all over the country.

The birth of "joint sales Body"

When Wahaha began to expand its market, it took advantage of the dominance of the state-run sugar, tobacco, alcohol, non-staple food and pharmaceutical wholesale companies and its subordinate two or three level wholesale stations in the channel. It adopted a strategy of advertising and promoting consumers, giving consumers Zhao Wa haha, making Wahaha quickly seize the opportunity and lay the foundation for marketing.

But the problem followed. By the mid 90s of last century, private and private wholesalers had made a big reorganization in the urban and rural market by changing their original channel network with the flexible mechanism.

At this time, it is also the most chaotic stage of China's market order. The risk of marketing is multiplying, and the most fatal one is the runaway cash flow.

A bigger hidden danger is that some customers have the ability to radiate the whole province. Once it is lost, sales in that area will be paralyzed.

Customers also suffer from delinquent payments because of "bullying".

Business can't be stopped, but business can not bring back money.

At the worst time, the total amount owed by Wahaha was over 100 million, and the enterprise was very passive.

Zong Qinghou felt that the key factor in deciding whether or not an enterprise could make profits in the market was credit.

So we decided to start from the credit system of the company.

At the dealer conference in 1994, Wahaha proposed an unprecedented plan: dealers must pay earnest money in advance according to the annual amount, the amount of the bond is divided by 10 and multiplied by 1.17.

As a corresponding return, Wahaha promises more preferential policies and pays interest on dealer margin at a higher rate than the same bank rate.

Zong Qinghou, of course, has his own weight.

At that time, Wahaha's products were very strong, and fruit milk was in short supply, and the market was always "grabbing" goods.

In addition, the margin is interest, which is much more cost-effective than the existence of banks.

The implementation of the "margin system" enables enterprises to take the initiative in the whole mode, and there is a guarantee for the existence of the joint sales network.

Margin allows dealers to become active management. After the wholesale market is set aside, the profits of customers increase.

After two or three years of insistence, the "margin system" was gradually accepted by dealers. Meanwhile, a group of bad credit players were also eliminated.

Ensuring profit space step by step

For all dealers, how to achieve long-term profits is the most essential pursuit.

The cooperation with Wahaha satisfied their pursuit.

In addition to "selling things well and making money", Wahaha has provided dealers with a long-term profit model -- joint sales network.

The essence of joint sales lies in the fact that dealers have fixed areas, and there are fixed prices at different levels.

Each dealer can not exceed one mu three points, if you rush into someone else's area, you may be cancelled.

In this network, the sales branches of each province have subordinate one or two or three dealers, and finally to the retail terminal.

For all the products of Wahaha, the factories have limited the price to each dealer, ensuring that all the members in the system earn money.

The more dealers who cooperate with the enterprise system will get more support in the supply of new products and advertising expenses.

The joint sales body has promoted a strong cooperative relationship: the national distributors are integrated into one and become the exclusive competition of Wahaha for manufacturers to join forces.

In addition, there is such a contract in Wahaha and dealers: after the launch of new products, within 3 months, if dealers have tried their best to open up the market, but do not have a predetermined sales target, Wahaha will be responsible for recovering or replacing the goods and compensating the dealers for exploiting the market.

In fact, dealers who have worked together for many years understand that this is almost unnecessary, because the new product launched by Wahaha is almost a success, and the new product will only bring new profit growth points to itself.

Huang Rongyong is a distributor of Wahaha in Jinhua area. When he was making Wahaha iced tea in the early years, because of the rising sun's complaint, the local industry and Commerce Department limited them to sell the very iced tea within the stipulated time.

At that time, Huang Rongyong still had thousands of boxes of goods in his hand. He was very anxious. He wrote a report to Zong Qinghou. As a result, Wahaha sold the products to other products according to his prevailing price.

Wahaha and dealer's emotional cards

For Zong, for many years, it is also playing an emotional card with dealers. Dealers also feel this clearly.

Wahaha not only maintains the rights and interests of dealers, but also tries to help distributors sell them.

In Wahaha Hangzhou dealer Feng Ming's office, Wahaha salesmen come to know the situation every day, and can find someone to solve problems immediately.

In addition to asking about the sales situation, all the minor problems, and even the details of coordinating the pport of vehicles, are the work contents of Wahaha salesmen.

"They are selling the goods for me, just like their own people."

Feng Ming said, sometimes Wahaha's salesman is more active than himself.

Outstanding dealers can even get all kinds of rewards from Wahaha.

During Wahaha 8th anniversary celebration, Feng Ming received an unexpected gift.

At that time, including him, a total of 3 dealers in Hangzhou broke 10 million mark. Zong awarded them a "Isuzu" car with a value of about 100000.

Feng Ming joked that the expensive prize really stirred him up for a long time. Although the car had already been scrapped, he had done a great battle in the market.

Wahaha has an assessment system for dealers, making annual sales expectations and exceeding the expectation. Dealers can enjoy additional incentives.

Now, Wahaha dealers are proud of selling Wahaha products, and are proud of being regarded as the national distributor of Wahaha.

It is reported that a distributor in the Northeast market has been named Wahaha national "ten strong" dealer every year. But for various reasons this year, sales performance failed to rank in the top ten of the country. He hurried to Hangzhou to see Zong Qing and asked him to add "weights".

It is precisely because of this feeling that Wahaha and dealers have built up a trust beyond commerce.

In the dispute with Danone this year, many dealers came out to "stand up to the boss".

Avoid vicious competition

In the Hangzhou market, Wahaha's first tier distributors are the strongest in the area.

Moreover, due to the clear geographical boundaries, there is no "fighting" situation among the first tier dealers.

It seems to Feng Ming that only a few big dealers are working together to make the Hangzhou market bigger.

In 1992, when he sold Wahaha oral liquid in the first year, he sold 1 million of that year, and that number has now turned to 50 million.

In fact, before 1994, these first class dealers were "waiting for the rabbit" business model.

Because the two level dealers are the stores in the wholesale market, so long as they can get them, all they do is to approve the list and let the other party pick up the goods themselves.

But there are many problems in this traditional mode. In addition to the lack of services, it is more important for dealers to scramble for markets and sometimes to maliciously suppress prices.

After Zong's implementation of the "joint marketing" marketing network, as long as you are the distributor of Wahaha, no matter which level is in the "joint sales Body", you can get the "stipulated" profit.

Because the price of the product supplied to the first class dealer is certain, the price of the distributor will be restricted to the next dealer.

This way of protecting profits gives the dealer the most basic reason to choose Wahaha cooperation.

Management culture

Zong Qinghou has a rule in his own marketing treasure: credit is the cornerstone of all marketing systems and is the prerequisite for all pactions to be sustained.

Commercial credit relations need a mechanism of interest arrangement, and credit must be stronger than credit violation.

In the course of 20 years of development, Wahaha knows two points: first, "commitment is gold"; to do business, not only consumers believe in your products, but also your stakeholders, whether dealers or distributors, can cooperate with you confidently, that is, "honesty"; second, you have to make money by yourself, first of all, let others earn money, which is the "win-win" that we are talking about now.

Honesty and win-win are the basic principles of Wahaha's operation for many years.

In order to establish a joint fleet and avoid marketing risks, Wahaha has implemented a system of joint selling with credit as its contract, forming a community of interests among manufacturers.