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Talking about sales force management from the Huiyuan incident

As the boss of China's fruit juice market, Huiyuan Juice suffered a lot of boycotts from netizens after announcing that it had been acquired by Coca-Cola, and there were also a lot of marketing experts who have been writing articles to express their own views. The author is also thinking about, for example, why Huiyuan should be sold? Why didn't Huiyuan sell to Very Cola (Wahaha)? Because the author is committed to the study of China's sales force management issues, it has not been joined Huiyuan sold or Huiyuan West to marry the event to explore. I have written about China's leap crisis and sales force management, from the sales representative of the sales ethic to think about the Sanlu incident, from the sudden death of the sales representative to think about the sales pressure management, today in the Internet searched for Huiyuan layoffs, only to realize that there is a responsibility to discuss the sales force management issues with the same way Huiyuan. According to the network information, I browsed through more than 200 articles about Huiyuan, summarized Huiyuan's sales force there are five major problems, because the material is second-hand information, the wrong place, please fellow corrections.

1, Huiyuan's sales team sales culture is certainly a problem.

A Huiyuan employee published on the Internet his letter to Zhu Lixin mentioned: the current sales manager of a regional Jiang Mou, he did in Huiyuan ten years, whether in Jiangsu region or Yancheng plant, we can feel that he is in the heart of the Huiyuan service, but the general manager of the plant in Yancheng Sun Mou to the death of the whole, listening to people say that Jiang Mou in the headquarters of the Department of Supervision and he has had a knot. Sun to the Yancheng plant inauguration, Sun on the market failed to get good reasons, will Jiang transferred to the warehouse department as manager, Jiang did not have a grudge, but in the warehouse department is very hard to do a good job. At the end of last year, the peak of delivery, his normal daily rest will not be more than 5 hours, our staff is to see in the eyes, pain in the heart, but in the end or Sun to a variety of reasons to the market sales situation is poor in a region. The company's business is to provide a wide range of products and services to the public, and the company's business is to provide a wide range of services to the public.

This is very contradictory to the concept of talent that Hueiyuan announced on the Internet. From Zhu Lixin in this Huiyuan sold to Coca-Cola event performance point of view, such as "enterprises to be raised as a son, to be sold as a pig. Brands have no borders. Selling the enterprise is not selling the country. Turning to the upper reaches of the industry," it can be seen that Mr. Zhu is not a responsible entrepreneur, not an honest businessman, his eyes only money. He does not know that Huiyuan today is the national industry he has been hanging on his lips for many years, and he has forgotten the "sink into the sea, from China" to the call of the people of China. This is the spirit of the Chinese people to buy Huiyuan juice factors. This is the private enterprise in the management level is still backward, but also can do big reason.

Many business executives do not recognize this. When you need people to buy, you say you are a national brand, serving the three rural areas. And when selling at a good price, they say there are no borders. This kind of businessman without integrity, to create a sales culture is bound to be a negative culture without integrity.

They say and do completely different, in the face of the truth of the matter, but also refers to the deer for the horse, fooling consumers (others), so the excellent Jiang became a victim of this culture. The author believes that the root cause of the problem of sales management lies here. This kind of culture without integrity will inevitably call people without integrity to join its ranks, while people with integrity are driven away one by one.

2, Huiyuan's sales strategy planning is problematic.

From 2002 until today, Huiyuan's sales organization structure has been in the "reform and restructuring", from the marketing headquarters system to the business system, and then to the regional system, and then to the system of sales subsidiaries, the most to the sales subsidiaries of the franchise system, sales subsidiaries of the legal person system, the sales channel from the system of distribution to the store (terminal management system). As a result, the sales management appeared bloated organization, lagging management, low effectiveness, unreasonable use of funds, the pure pursuit of sales, sales costs and other adverse conditions. As a result, a few franchised companies to reduce operating costs in a hurry to cut sales representatives. As a result, Huiyuan encourages sales representatives to sign up to become its dealers to open up blank markets, and 647 sales representatives have become its dealers. This shows how weak the dealers are. The results appear stores and dealers contradictory, mutual price and tampering, both affecting the enthusiasm of dealers, but also makes it difficult to support the store's expenses, and finally stores become contrary to the intent of Huiyuan "vase". The two factions are hurt!

These initiatives show that Huiyuan sales strategic planning problems, I engaged in sales management in foreign-funded enterprises, found that they generally take a progressive sales organization change, their sales organization is from the sales company to the regional system and then to the business system, and then to the regional and business mixed system. Sales channel management needs to learn from Wahaha. One of the secrets of Wahaha's success is the establishment of a network model of joint marketing body and help dealers to make money, while Huiyuan is to take the store and dealers to create money to earn.

A Huiyuan sales representative said last year on the Internet, Huiyuan for the management of dealers operating very primitive and backward, to take the total generation system, and at the bare price of supply to dealers. And the terminal from the order to the goods on the shelves for up to 7 days or so. Sales channel management has not been rationalized, from the sales organization changes in an orderly manner. We know that Wahaha sales of 18.7 billion a year, only 48 offices, more than 2,000 sales envoys (to help dealers and end sellers), and Huiyuan annual sales of about 2.7 billion, more than 80 sales subsidiaries across the country, more than 320 offices, more than 4,000 salesmen. As a result, Huiyuan then cut 1,406 in the first half of 2008, from 3,926 at the beginning of the year, to 2,520, with sales of 1.294 billion.

While I have not calculated the inflection point of Huiyuan's sales force, I believe that Huiyuan's sales force is definitely in marginal decline. Huiyuan's sales force management span and amplitude there must be unreasonable, otherwise sales envoy sales efficiency will not be so low, Huiyuan's sales representatives average sales of more than 6 million yuan, while Wahaha's sales representatives average sales of more than 9.3 million. Also Huiyuan announced a sales target of 10 billion for 2011 when it had sales of 2.6 billion in 2007.

This reminds me of the chairman of Hangzhou Lvsheng Group, who mentioned in a lecture at Zhejiang University's EMBA that Lvsheng would reach 10 billion in sales in the next five-year plan, saying that the 10 billion was the average annual growth rate of the previous five years multiplied by the current sales. I think Huiyuan's sales strategy and sales targets may also be such a gross estimate out of a pat on the head and out of the sales strategy data. Visible sales managers in our country do not know how to use the market key factors derived from the funnel method and PEST analysis to carry out the planning of strategic objectives. This is the root cause of many enterprises in China can not break through the second takeoff.

3, Huiyuan sales human resource management problems.

A Huiyuan employee posted on the Internet on the Huiyuan juice sales management of N kinds of "do not understand". Which talked about: 1, s region in the factory to 27 marketing personnel, (Note: most of the students just graduated, the factory z total required them to do a month in the city of Z and then back to the factory, the equivalent of a month of internship) 27 people know that in January after the return to the factory, the work belongs to the grind, can do less to do less to do not do to do; 27 people back to the factory in January after a total of laying goods not more than 400 boxes. Question: Do fresh graduates have first-line marketing experience? A month can be familiar with Z city routes and markets? 2, Y manager meeting is not in, back after the sales representative s snitch, will all sales representatives have sued again. (Basically, which male sales representatives and which female sales representatives to eat, which sales representatives did not return to the office before what time, etc.) The results of the Y manager will be all sales representatives reprimanded all over again, more surprising is the sales representative s was raised to the office supervisor, resulting in the office of the staff of the disorganization of the people, the loss of will to fight, and the office since then to gangs and gangs, without the spirit of teamwork. 3, all sales representatives of the city z All the sales representatives in city z did not go through any training when they were on duty, and the company only issued a product manual. After arriving at the office, the manager of Y just said the company's concept briefly during the morning meeting, and taught everyone to shout slogans, and did not mention the company's main products and how to fight against competitors, so many sales representatives did not know the product prices and items on the first day of visiting the terminals, which made a big joke.

From these kinds of information can be predicted to Huiyuan sales human resources management there is "recruitment, training and promotion" kind of serious problems. The sales efficiency of this sales force can hardly promote the development of the company anymore. And Zhu Lixin and other Huiyuan executives, but this year's sales and gross profit decline attributed to the external environment, such as rising fruit prices and snowstorms and earthquakes. This is the direct tragedy of Huiyuan. Our other local companies need to learn from this and strengthen the sales department's human resource management improvement and training. Powerful brands will eventually be wiped out because of poor sales force management.

4, Huiyuan's sales force counseling is problematic.

We know that sales coaching refers to sales force motivation, sales force morale management, field coaching of sales skills, sales process management, sales expense management, sales meeting management and sales report management. In the seven management, sales director will generally favor sales report management and sales meeting management, they put a lot of energy for the convening of the meeting, negligent sales meeting management, for the field counseling is almost also rarely carried out.

Huiyuan's sales managers are also the same, such as the Huiyuan staff talked about "1, the sales representative every day on time, but how the actual situation? Sales representatives often miss visits, the company provides a daily route to visit 50, sales representatives only visit the first half of the specified route or only visit a few large stores, and so the day is hot and then look for a place to cool off; sales representatives often visit, went to ask the boss only a "do you want the goods" will be gone, with a visit to the completion of the morning, the afternoon will go to the Internet; sales representatives often visit, to ask the boss only a "do you want the goods" will be gone, with a visit to the completion of the morning, the afternoon will go to the Internet. In the afternoon, they go online; sales representatives often big single small single, today ran the order 20 boxes, go back to write only 10 boxes, what is the 10 boxes? Tomorrow off, save for tomorrow. Question: sales representatives do this Y manager does not know? Doesn't the manager read the sales rep's daily report? Doesn't he know whether it's true or not? Why would he write a daily report then? I do not understand. 2, z city HY juice market pavement rate is extremely poor, the poster is no exaggeration to say that the entire z city to see a few, in z city HY 100% juice in the catering industry in addition to raising plus plus juice almost no competitors, but put the catering not to do (catering operations are more complex, dealers do not cooperate, do not want to do, manufacturers will not be able to operate the business), even more ridiculous is that, the mid-autumn festival is approaching, the company invested large costs to promote Gift box, Y manager put the living area not to do, but let the sales representative to spend all the expenses on a commercial street in the city, the main commercial street, there is no any living area around." All of these problems indicate that Huiyuan's sales management counseling is problematic, and that the sales managers' management skills and aggressiveness are not sufficient to support the company's further development.

Sales representatives are the lifeblood of a company, and sales executives determine the sales morale of sales representatives. If a company does not focus on the management skills of its sales executives, and if it does not strengthen its management of them, then this sales force will have no fighting chance.

5, There is a problem with the evaluation of Huiyuan's sales force.

The evaluation of the sales force is not focused on the evaluation of the final sales results, but on the timely evaluation of the sales force in the process of reaching the sales target, giving incentives or rewards when they achieve results, and constantly encouraging them to exceed the sales target (not only the sales target, but also such as sales margin, sales activities, and the number of customers), and attributing the reason for exceeding the target to their sales ability and the ability of the sales force. Attribute it to their sales ability and effort. When they have a gap from the target, guide them to the reasons attributed to the sales effort is not enough, sales methods to be adjusted, rather than the reasons attributed to the external environment is not good, the sales task is too high, or the sales capacity is not good, or the quality of sales is not high, with the sales team **** with the efforts to find ways to reach the goal, more encouragement and counseling.

And "Huiyuan sales representative of the company's assessment is very direct, that is, to complete the task, a month to complete the task, you do not take the task of completing the situation of the salary, resulting in several sales representatives are in the chicken and egg, who are not willing to do the market, and who do not want to spend energy to cultivate the market base, because if the task for two consecutive months is not completed, Huiyuan will be bright! Yellow card warning, the third month and then can not complete the task will be directly out of class. And this market dealer's inventory, enough for two months of sales, not to press the goods no better way to expand. Therefore, Huiyuan sales representatives can only be pressure goods, take money, go, service breaks, sales policy is not continuous, backtracking, resulting in the retail store's reputation is extremely poor. The retail stores simply stopped selling the product."

This practice of assessing the sales force by Huiyuan is the cause of the lack of centripetal force and cohesion in the sales force. The root cause of the error in this assessment practice is its poorly designed sales compensation. Deducting and penalizing the salary of the sales representatives due to the sales assessment, the employees were not treated well, which resulted in the Kahneman loss aversion effect, and they naturally went to find a little comfort from the hockey stick effect. As a result, a culture of repression emerges, and the aversion spreads. The sales force then enters a period of turbulence of "leaving - hiring", there may be Russian nesting dolls in the recruitment phenomenon, the result is caught in the ratchet effect, and finally need to use surgery to solve the problem, push to start again.

According to the analysis of this article, Huiyuan was purchased is a deep-seated reason. That is, there is a big problem with the sales force management. Nevertheless, Huiyuan can take a complete self-revolution, or sell it to excellent other national enterprises, such as Wahaha, Farmer's Orchard and so on. In the author's opinion, the most powerful brand, if there is no strong sales volume as support, that brand is a paper tiger. And strong sales volume must be based on a strong sales force, the sales force is the core strength of the achievement of great brands (or great companies).

If we don't come to discuss Huiyuan's sales force management problems, there will be more national enterprises (whether private or state-run), will face the danger of acquisition or closure. Without a strong enterprise, there will be a strong motherland. Enterprise Xing, and the country Xing. The sales force is prosperous, and the enterprise is prosperous! I call on the government and colleges and universities to strengthen the sales force course research and development, for our country to convey more knowledge of the sales force management personnel, service in our country's enterprises. The government should foster and vigorously cultivate sales force management research experts and trainers, so that they go to improve the enterprise sales force management theory and skills. The United States all colleges and universities have "sales and sales management" courses to MBA students, while China is almost blank.

Welcome to discuss your views and opinions with the author of globrand, Huang Dehua: Zhejiang University EMBA, China sales management master, China sales management research experts, dozens of enterprise sales management consultant, Zhejiang University MBA visiting professor, Zhejiang University enterprise training center special teacher. He is the first one to introduce the ratchet effect, field hockey stick effect, marginal effect, perception management, Russian nesting doll phenomenon and Kahneman prospect theory into sales force management research. He has 12 years of successful combat experience in marketing and sales management in foreign-funded enterprises, and has been awarded the title of China's best sales supervisor, sales manager and regional marketing and sales director. The most specialized training modules: Strategic Sales Management, Strategic Marketing Management, Customer Demand Management, Sales Communication and Sales Visiting, and Laws of Sales Success. Currently, he has published 27 papers in Sales and Market, China Medical News, Pharmaceutical Economic News, Pharmaceutical Herald, etc. His blog in Sohu is: China Sales Management University

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