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by Collin Key
“90 years of Guangdong, after 2000 see East.” Transfer of national economic strategies, so that the economy in many areas of Zhejiang, the national leader. As the East China city, from the beginning of 2000, Zhejiang, Guangdong, as fast moving consumer goods to replace the sales of a large province. FMCG industry has become the brand and sales weathervane. Xizhilang, Dove, Kraft, Wang Lao Ji , Yake, and many other FMCG regarded Zhejiang to build a business the first volume of this province. At the same time, more FMCG companies are heavily Tuen market in Zhejiang, Zhejiang, sought to grab a slice of this big market.
A candy company in Zhejiang Status and Problems
Author into a candy company in 2004 as Zhejiang Province, District Manager. The face of the boss of Zhejiang this year issued an order to be up 50%, the pressure is self-evident. I first arrived in Zhejiang did not rush to visit customers, but the first visit to the market, understand the market, read the market, diagnostic market, and finally go subvert the market!
Early, after 20 days of market Mopai, I Zhejiang market situation and the problems do the following summary:
(1) slightly rudimentary, Zhejiang market brand, but because of the shaky foundation:
This enterprise from the plant after 93 years to enter the market of Zhejiang. After 11 years of painstaking efforts, both in Zhejiang market or market share, brand recognition has decent performance, especially in the candy channel is notorious. However, due to the special candy channels, distributors require a higher profit margin, brand loyalty is low, so the operation of the enterprise market, a higher overall capability requirements. So that enterprises in Zhejiang candy market conditions excellent mixed feelings. The joy is in the candy channel name brand recognition and have a high degree, market share larger, more stable channel price system, customer loyalty is high; the worry is that the single best-selling items focus only three single items on the last three years have resulted in sales is not much growth in Package And the taste does not have to upgrade, so candy-channel basis and is not strong anti-risk ability, it is easy to clone and replace the competitors.
(2) Zhejiang market customer base contribution rate performance gap is too large, resulting in a dominance of individual customers, most of the low contribution rate of customer performance.
Look at the transfer of customer information, Zhejiang, I found this enterprise customers variable quality of Zhejiang province a total of 30 customers, including the three million customers in only five, 60% of the customers in Sell Amount of less than 100 million, which seriously affect the layout of the province’s customers and distribution channels, on the balanced development of the province is very negative.
(3) Zhejiang market customers a whole product line is too long, fist few category and items.
Complete customer service department in view of the customer to provide sales data on single items, I discovered a very serious problem: Zhejiang customer’s product line is too long, essentially every enterprise customers most of the items distribution, generally are about 300 items, the consequences of that support 10 “son”, but not a strong, serious waste of resources and cash flow of customers to display the cost of resources and inventory management of resources.
Zhejiang market channels and a single building higher degree of dependency, many cities over-reliance on candy channels.
Zhejiang sum up the characteristics of market channels is three high and two low: KA costs and high barriers to entry, candy sales channel accounting for high capacity high wholesale distribution channels, changing products, a large shop selling low output, the terminal network City shop low rate. Specific performance, due to the high cost of products in a modern terminal channels of the lack of vivid display, moving off in an unfavorable situation, a serious imbalance in the ratio of input and output, business channels in the modern terminal was virtually no interaction with consumers to carry out the activities. In the cities, townships lacking in building retail outlets, can not see the product in the medium and small enterprises in retail stores, and display.
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