How To Solve The Confusion In The Channel Optimization Process

- Sep 01, 2019-

Channel strategy, also known as marketing channel strategy, including channel expansion direction, distribution network construction and management, regional market management, marketing channel self-control and radiation requirements, is an important part of the entire marketing system. Therefore, companies need to keep up with the market and meet the needs of the times, and continuously optimize the channels. Channel strategy planning is good, which is of great significance for reducing enterprise costs and improving enterprise competitiveness. This is also the biggest reason for enterprises to insist on channel optimization. But what kind of confusion will the market, manufacturers and merchants encounter in the process of channel optimization?


Market confusion: the advantages of the channel, and the urgency of the market


China's lighting capital: According to statistics, Guzhen Town, the capital of China's lighting industry, currently has 15,000 industrial and commercial enterprises of lighting and accessories, including 8131 lighting merchants. If Guzhen Town is the breeding base for the lighting industry, it is not After that, the development of Guzhen Town Lighting Company has shown the true face of the entire industry market.


After nearly 30 years of development, the craze of the lighting and lighting industry has been ups and downs under the impact of waves of waves, and there are also brilliance. In view of the current channel construction problems in the lighting industry, I learned from the opinions of different people in the enterprise and learned that the current problems in the lighting and lighting industry market include the serious homogenization of products and the core technology of enterprises. High and high market price confusion and other issues have seriously restricted the pace of industry development.


In this status quo, in order to continue to open the market, it is necessary to upgrade and optimize the industrial channels. Therefore, industrial upgrading and channel optimization have become the "life-saving pills" of the lighting market. The two are important manifestations of corporate marketing channel strategies. The combination of product strategy, price strategy and promotion strategy has determined the competitiveness of enterprises. Whether the company can successfully develop the market and achieve sales and business objectives.


With the prevalence of the LED era, the traditional marketing channel strategy can no longer meet the needs of market development. Both enterprises and distributors are exploring ways to better satisfy the market demand. According to the actual situation of the market, the four existing channel modes in the lighting industry can be summarized:


1. Distribution channels;


Second, engineering channels;


Third, hidden channels;


Fourth, e-commerce channels.


The evolution from the previous single-source channel to the current three-dimensional diversified channel model is to explain the instability of the lighting market and the times require the company to keep pace with the market to adapt to the diversity of the market.


Compared with the traditional marketing model, the existing market channel model is characterized by diversification and segmentation. The diversification and segmentation of market channels have enabled enterprises to get rid of the shackles of traditional channels, cater to the market segmentation strategy and differentiation strategy of enterprises, and have played a role in boosting the coverage of corporate brands and products.


Enterprise confusion: channel disputes are imperative


The lighting industry has transitioned from product competition to channel competition, and gradually develops into the industry chain. Whoever can seize the opportunity in this transitional opportunity will become the master of the new era. In order to take the lead in controlling effective channel advantages, companies must find ways to optimize and optimize the channel construction, and strive to become a channel leader.


In terms of channel construction, enterprises continue to explore and explore ways to integrate channels and divergent actions in stages. At this stage, most of the enterprises use provincial and municipal agents as the main sales channels. Through the control of the provincial and municipal general agents, enterprises can only analyze the market from a macro perspective. Strictly speaking, they do not directly control the terminal client. The sales effect of the market and the primary information need to be grasped by the general agent. collect. At this point, the choice of provincial and municipal agents has become the top priority of the company.


As time goes by, the development of the industry, the responsibility of the total generation will gradually reveal its shortcomings in practice. This is a result that cannot be avoided by any channel form. At this time, the enterprise will make appropriate channels according to the needs of the market. Organize and adjust, such as the establishment of the operation center, the channel sinking to the city and county level, the introduction of other brands in the same market, etc., and strive to compete for market share. In fact, the establishment of the operation center of the enterprise is to decentralize the management and concentrate on the overall operation of the provincial and municipal agents. In this way, the enterprise can control the market through the operation center; the members of the operation center are composed of terminal sales members, and can also directly obtain First-hand information, the market changes can be micro-dispatched in the shortest time, so as to maintain the vitality of the impact of the market.


Case Study: He Wei, general manager of Guangdong Midea Lighting & Electric Appliance Manufacturing Co., Ltd. (hereinafter referred to as “America's Lighting”) said: In 2014, the most important job of Midea Lighting was to improve the product line, implement channel construction and dealer related policies. Established in 2009, Midea Lighting has been able to make a name for itself in the lighting industry within five years. In order to achieve the purpose of seamlessly connecting the company's R&D and the market, Midea Lighting established a business center in each region, established a communication bridge between the company and its distributors and consumers, integrated resources, and established a community of interests to form a market-oriented product. Based on the cornerstone, the brand is the new development model with the focus of the operation center. In order to better adapt to market changes, Midea Lighting also started from August this year, the company's general manager He Wei is in charge, formed by the product department, domestic marketing department, product research and development department, OEM department and other responsible persons and eight places across the country The product advisory committee jointly formed by the operator's boss is mainly responsible for the company's new product development, existing product orientation, market-oriented development of products and other related work.


The confusion of the business: the prosperity of the channel, followed by


The voice of the dealer: Now it is no more than before. In the past, we can live a very moisturizing inventory. Whoever does who is dead now, even if it does, dare not grow bigger. For example, we are doing 3 million inventories today. After one month, this 3 million may shrink to 2 million. That is to say, if we have not left the warehouse, we will lose 1 million. This ratio cannot be accepted. Moreover, in the current LED prevalence, the brand with stability has not yet appeared, many dealers are also watching, most people are afraid to rush to a single promotion of a brand, this is our current situation. Forced.


At present, in the downstream application, it can be said that it is a resource era and a resource dispute phase, which is why it is a dispute channel. At this stage, because there is a large terminal application link, the capitalist can not play a leading role in this link, and the leading role must return to the product and return to service. Many end-users have changed their minds, both on the demand for lighting and on the purchase of lamps. The pursuit of more, the demand is more detailed and diverse, in order to meet the needs of consumers, dealers have to move accordingly. .


Mr. Tan, the general manager of a home lighting store, has been interviewed by Tan. According to Mr. Tan, he has been exposed to the building materials industry before. He is still familiar with home improvement, and now 60% of his stores are mainly lighting, 40%. Put into the bathroom, Yuba and even the floor and other home improvement products. He has been in contact with lighting for more than ten years, but for the lighting brand, Tan said that there is no plan to do a single brand monopoly for now, because now customers are not just as bright as lights, but also pursue many things such as energy saving, color, light efficiency, design, etc. In terms of factors, in order to meet the needs of different customers, we can only respond to product diversification.


Dealers in the LED tide do not dare to be single-minded, only dare to wait and see in the side, do not dare to open the hands for a single brand for all-round promotion, which is not conducive to the construction of their own brands for enterprises. However, whether it is a company or a dealer, there is no help. This is an inevitable trend determined by the market and can only be optimized and adjusted by itself. In order to develop channels, merchants gradually put their perspectives on the third and fourth-tier markets, hoping to take a new path in the third- and fourth-tier markets. Some businesses implement vertical radiation, and they are targeted to modern communities. The new-type community dominates the market and this is one of the countermeasures.