In the modern market competition, sticking to the past success factors will become the beginning of enterprise failure!
Supor and Astor in Taizhou, Zhejiang Province are the leading brands in China cookware industry at present. In 2005, the total sales exceeded 2 billion yuan, and the national market share reached more than 70%. Judging from the development situation in the past two years, under the guidance of differentiated business strategy, ASD has pressed Supor, the first brand in the industry, with a faster development speed.
As a second-tier brand that wants to catch up with the first brand in the industry, ASD has many remarkable places in recent years. For example, when Supor developed rapidly in China a few years ago, Asda avoided sharp edges and focused on overseas markets, making its export scale comparable to that of Supor. In the domestic market, in terms of product strategy, because Supor pressure cooker is very strong, Astar mainly promotes non-stick pan and wok; In terms of price, ASD adopts the following strategies to make consumers feel more cost-effective; In terms of channel strategy, ASD mainly focuses on the format of supermarkets, and does not directly conflict with Supor in traditional channels; In marketing, unlike Supor's emphasis on high-altitude communication, Astar pays attention to terminal promotion and implements terminal interception strategy. ASD has adopted many similar differentiation strategies. Because of this, in just a few years, the domestic sales scale of ASD has gradually approached Supor.
However, behind any advantage often means disadvantage.
In order to catch up with Supor quickly, Astar adopted a differentiated channel strategy from Supor, focusing on the channel format of chain supermarkets with great growth potential, and successfully broke through Supor's strong encirclement in the country. But objectively, this has also caused a serious imbalance in the proportion of its current channel structure, and its strength in traditional channels is far from that of Supor.
Despite the rapid development of supermarkets in big cities, the strength of traditional channels far exceeds that of national supermarkets. Moreover, because hypermarkets are generally too strong, the resources invested by suppliers are much higher than those of traditional channels, and even there are many unreasonable requirements. In the format of hypermarket, salesmen, promoters, promotional resources and other human, material and financial resources have to be invested heavily, and the profit return rate generated by it is far less than that of traditional channels. While the sales volume has increased substantially, the profits of hypermarkets have not increased simultaneously-this input-output ratio is obviously unreasonable.
And as we all know, it is very troublesome to change and adjust the bar code of supermarket chains. If you want a new product, you must pay the bar code fee. However, once a product is not sold well, the barcode will be cancelled, resulting in a backlog of inventory and serious return, which will not only occupy a lot of funds from suppliers, but also cause considerable losses. Traditional channels are relatively flexible, and the losses of suppliers will be reduced a lot under the same circumstances.
In addition, compared with traditional channels, the competition between chain stores is vicious and fierce. This kind of competition leads to smaller and smaller price space of ASD, and hypermarkets simply ignore the pain of suppliers and only demand "lower" prices, thus further reducing the already limited profit space of ASD. This will affect the resources invested in subsequent product research and development and brand promotion, and then hinder the sustainable development of ASD, which will be a vicious circle.
Exerting strength from channels can make enterprises grow bigger quickly. However, completely relying on channels will undoubtedly increase the competitive risk and weaken the competitiveness of enterprises.
How to establish the core competitive advantage or even staged competitive advantage as soon as possible after making efforts through channels is an important issue that enterprises must face after making efforts through channels, and it is also a key issue that Astar must face up to and face if it wants to become stronger and bigger.
The products will cover all regions through various distribution channels, such as primary dealers, secondary dealers, terminal sales points, various agents and middlemen. Therefore, channels are becoming more and more important in brand growth. First of all, he expanded the publicity of your products.
Secondly, it brings convenience and convenience to consumers. Third, he lets your sales borrow channels to provide a stage for rapid growth; Therefore, whether the channel is sound or not is very important. Only products supported by sales volume are good products, and brands can be achieved. A few years ago, the public was familiar with the series advertisements of Neptune products. Under the bombardment of 320 million advertising fees, Neptune Star founded the enterprise Neptune Bio. However, after a few years, the sales volume was unremarkable. Brand awareness and reputation are soaring, but the final market performance is surprising. Neptune started with favorable comments and ended with "knocking down the wall", which was dubbed as "a brand project without sales" by people in the industry. Why did you invest so much in advertising? Why didn't you sell the brand? There is only one reason: there is no sound track. The famous "General Shi", Mr. Shi Yuzhu of Jiante Bio, started to operate the market with borrowed 500,000 yuan. By 200 1, the turnover is 740 million, and the annual advertising fee is only about 1 100 million. Why is the gap so big? Industry veterans commented that "General Shi"' s greatest success weapon is that he has a huge marketing network. As early as 1995, in order to reverse the decline of the company's operation, Shi Yuzhu set up a marketing team of ten thousand people. Advertising covers more than 50 news media at or above the provincial level, and the marketing network covers more than 500,000 shopping malls across the country. The network is the channel. Now, you should understand how important the channel should be.