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Dealer resources are one of the most important resources in the process of developing fast-moving consumer goods enterprises. In a sense, the quality of dealers directly determines the fate of the company, especially for small and medium-sized enterprises in the market development stage. This is even more true. In the actual market development process, many fast-moving consumer goods companies have indeed made the development, selection and adjustment of dealers an important daily routine, but the actual result is that many mature fast-moving consumer goods companies have gradually lost their original Helping them to lay down a number of important quality distributor resources.
What is the reason for these high-quality lighting dealers to gradually leave the company? In addition to the reasons for the dealer's own transformation, what other actions have the company broken the dealer's heart? The author combines a practical case to explore the deeper reasons.
Case: J Company is a well-known food enterprise in China. After nearly 30 years of development, the company has achieved sales of about 1.5 billion yuan. It has nearly 2,000 dealer resources in the country and basically realized the mainstream market in the country. And the coverage of the county market. In the market area north of the Yangtze River, many city and county dealers are among the top distributors in terms of financial strength, network coverage, and personal connections. However, these loyal customers who have cooperated with J company for more than 20 years to fight the world have successively voluntarily abandoned the products of J Company and terminated the cooperation relationship. Affected by this, it is more and more difficult for lighting companies to achieve sales targets. Many of the once-spreading model markets have emerged as embarrassing situations in which dealers can't be found. What kind of behavior does the lighting company cause such a passive situation?
First, the overall dealer layout of the market lacks systematic planning, and the dealers are added at will. In recent years, due to the increasingly fierce market competition, the overall market is slow to sell, the pressure for the company to reach sales tasks is gradually increasing, and the pressure for dealers to complete sales tasks naturally follows. Increase. In the face of huge market pressure, many regional managers of J Company did not choose to calm down and carefully analyze the reasons for market changes with dealers, and then search for countermeasures from products, channels, promotions, etc., but chose blindly through the addition of dealers. After the completion of the performance, the existing dealers can not complete the performance, they will add new dealers to make up for it, and even the phenomenon that the newly opened dealers are in the door of the old dealers. The blind addition of dealers has led to an excessive number of distributors in the regional market. The distribution of dealers' regions is unclear. The phenomenon of rushing goods is frequent, the friction between new and old dealers is constant, and between old dealers and offices. Contradictions have intensified, and short-term sales growth has left a huge market hidden danger.
I don't deny that adding a dealer is a way to quickly increase sales, but dealer setup and layout is a systematic planning process. In which areas, how many sets, and what type of dealers must be set up in the market The basis of the analysis can be carried out above. It is necessary to comprehensively consider whether there are blank areas in the existing market, whether existing distributors can fully cover the areas where they are distributed, and whether existing distributors can comprehensively cover various types of channels and other factors. Blindly increasing the number of dealers has brought about a rapid increase in sales in the short term, but this practice of drinking and quenching thirst eventually led to the complete loss of control of the channel.
Second, the regional manager arbitrarily promised the dealer's expenses, but the cash is nowhere in the near future. With the rapid increase of raw material costs and labor costs, the production cost of the company has also risen. One of the results of rising corporate costs is that the market costs of corporate investment are getting lower and lower, and J company is no exception. In the early years, the actual cost of the company J can reach more than 20 points. In the past two years, the company has been reducing the market cost, and the market cost has gradually dropped to about 8 points. The cost has been reduced, and the market competition pressure is increasing. Many regional managers of J Company also did not choose to calm down and analyze the current situation of the market with dealers, study how to improve the efficiency of the use of fees, how to increase the input-output ratio of expenses, how to change the cost to the market, but blindly Oral commitment to continue to give dealers a lot of cost support, still continue the previous thinking and practice, hope that through the high cost support in exchange for dealers' shipments! You can rest assured that as long as I am, this cost will help you solve the mantra of many regional managers. As a result, the promised cost will either be turned into bad debts due to the adjustment of J company regional personnel, or it will be delayed indefinitely. It is in this indefinite delay that the dealers have lost the integrity and confidence of J company. 3. The market management of the enterprise is chaotic, the prices of mainstream products are seriously upside down, the dealers lose their profits, the dealers are merchants, and the pursuit of profits is the merchants. Bakers, dealers represent the core appeal of any company's products in order to make a profit. In the early stage of cooperation with J company, J company's market management is still relatively benign, the product price system is relatively normal, and the dealer's profit is also adequately guaranteed. In recent years, many regional managers have adopted a quick and profitable approach in order to complete sales performance, dumping the company's core products directly at a low price, and supporting dealers to sell goods to other regional markets below the factory price. As the company is neglected in management, the phenomenon of stockpile is gradually intensified. As a result, the price of the dealers from the factory is far higher than the price obtained in the market. The price system of many mainstream products has been seriously damaged, and the profit of the dealers has been lost. The blind pressure of enterprises, the pressure of dealer inventory risk is also the same as the pressure of sales tasks, many regional managers of J company in order to complete the sales tasks, blindly to the core dealers of the enterprise through various methods, resulting in many The inventory of core dealers is seriously large. Some of the products of many dealers have expired before they enter the market, and dealers have suffered heavy losses.
In order to complete the sales performance or to force the distributors' resources and energy to invest more in the company's products, it is understandable to enlarge the inventory of the dealers, but the key to the problem is to give enough inventory to the dealers. Pay attention to and assist dealers to solve the bad inventory caused by the company's goods. You must know that the products that the dealers press in the warehouse are all exchanged for real money. Once the sales cycle is too long, the products will be unsalable or directly expired, and the dealer will suffer huge losses!
5. The replacement of enterprise personnel is too frequent, and the regional market policy changes too fast. Due to the enterprise market management system, in the early years, the regional manager of J Company was the most stable in the industry. Generally speaking, regional managers in a region will not adjust within at least three years as long as they can complete their performance. Some regional managers have been working in the market they have been responsible for for 10 years, but in the past two years, many regional managers have not The company can complete the sales performance target of the area under its jurisdiction, and the company will be laid off or transferred to the regional managers who cannot complete the task. As a result, many people in the difficult market are replaced too frequently. Some markets have changed the personnel more than three times in a half-year. Because the ideas and practices of each regional manager are different, the regional market policy changes too quickly, and many of the remaining problems become more difficult to solve due to the replacement of personnel. In the frequent turnover of enterprises, the dealers are very upset, I do not know how to adapt to the so-called love in the world without any reason, and there is no hate for no reason! The partners who have worked together to protect the country today have taken the initiative to part ways. For many companies facing this problem, it should be a time to ponder!