The price war is not just a simple price reduction behavior, but the use of appropriate strategies - strategic price war. There are different strategies for consumers, and distribution channels. To the consumer - price without goods, price less goods. Achieve hunger and thirst marketing. At the same time, the result of contagious marketing can be achieved through event marketing. To the distribution channel - marketing assistance is the main focus, supplemented by incentives. To help sales is to put into action, pre-sale, after-sale guidance. At the same time, to reward the behavior of the main.
According to the strategic positioning of the market of the price war, the price war zone is divided into the following three types, its characteristics, role and operational points are as follows:
(1) offensive. Rapid occupation of the market, a greater possibility of seizing the market share of competitors. Ruthless, accurate, stable, large strike surface, generally more active. Mainly used in strategic regional markets, the magnitude and scale should be fully integrated with the actual situation of the local market. Offensive price war from the point of view of the enterprise, often for the company's strategic considerations, for example, to meet the needs of the industry competition, or the enterprise itself to achieve rapid growth, so that the enterprise to achieve economies of scale, so as to better participate in the market competition needs, most of which can be taken to such tactics. Offensive price war is an enterprise initiative to take a market attack, this price war is mostly strategic products for the "vanguard", timely follow-up strategic products, and even some manufacturers in the market to achieve the scale of the recapitalization, the implementation of bundled sales or limited shipments, in order to achieve the strategic development goals of the enterprise.
(2) Sniper type. Subdivision of the market, aiming at the target, effectively combating competitors, dividing the opponent's market share. Targeting is stronger, narrower striking surface, but more focused and powerful. Attack target to be clear, out to be fast, quick decision, do not give the opponent a chance to breathe. Sniper-type price war is a business between the offensive and defensive type of market behavior, it is a business for better market segmentation and market segmentation and take a "blitz" action. To play a good sniper-type price war, we must pay attention to the following points: First, to choose the right "target", there is a target to have action, and the "target" are often new brands into the market or the local major competitive brands. Second, the price war to hit on the right, not a dragonfly, shallow, so that halfway. Third, cut into the market by sniping products, must occupy each other's market area, grab market share.
(3) defensive. At the expense of strategic products, maintenance and consolidation of the existing market, and in this way to expand sales and market share. More are a combination of defense and offense, retreat for progress, in the defense of the exhibition of "killing machine". Establishment of strategic market defense system, with strategic products "cover" market existing products "breakout". Defensive price war is generally a business has no choice but to take a market defense behavior, when the territory has a "strong enemy" invasion, the enterprise in order to preserve the market, often will take this defensive price war.
The use of defensive price war should pay attention to the following points:
One of the products involved in the price war must have a focus on the main specifications for competitors to select the appropriate products to participate in the price war, not all involved.
Two, "war" products try to use new products, because after the price war, this "cannon fodder" products often no longer have the value of retention.
Three, the perfect combination of defense and offense as much as possible, in the defense of the offensive components, taking the opportunity to expand market share. In order to "one arrow more carving".
In the actual market operation, most manufacturers sometimes encounter their own internal or corporate dealers themselves "war" phenomenon, for example, all over the branch offices set off price wars, distribution channels, dealers provoke price wars, as well as retailers to launch their own price wars, etc., for these manufacturers headache but can not be cared about the internal strife, manufacturers must take practical Measures to deal with these a little inattentive, and may lead to the price of disputes. For the price war initiated by the branch, as a manufacturer to harden the wrist, serious discipline, to kill the chicken to respect the posture of the monkey, decisive treatment, the relevant parties to be punished, in order to reverse the unfavorable situation; for the channel dealers set off a price war, the manufacturer should be more iron fist, to the relevant provisions of the regional protection, the cancellation of its rebates, promotions, and other related policies to support until the cancellation of its distribution qualifications; for the retailer initiated a price war, due to its short period of time, but cannot be ignored. Price war, because of its short time, small amplitude, therefore, as a manufacturer to reasonable guidance, know the advantages and disadvantages, so that it is in favor of the direction of the company's development.