Promotion Of New Products: Channel Monopoly

The characteristics of pickled mustard tuber consumption decide that consumers are unwilling to make goods three, and the insensitivity to price has created the problem of solving the problem of buying by means of solving the problem of willing sale.

The market promotion of new products in monopoly industries is the easiest to do. Electricity, tobacco, salt, oil, monopolization channel monopoly, except this one, no branches!

Can new products promotion in non monopoly industries be monopolized by channels? If so, how can we do it? What resource conditions do you need? We have in-depth analysis and interpretation through two cases.

Vermicelli

In 2008, Y has just entered the vermicelli industry.

The industry is good. The noodle industry has been increasing by 25% or even 30% every year since 2002. With the decline of household hand-made noodle shops, the noodle of large industrial production has been gradually popularized and upgraded, but the industry is still in a highly dispersed stage.

But the biggest difficulty is that products can not be innovating. People all over the world know that the main raw material for noodle is flour. 99%, can you name flowers?

We can only take the road of sales innovation.

There are more than ten thousand enterprises in the noodle industry, and there are dozens of noodle enterprises in Henan, Shandong, Hebei, Anhui and even every county in the core wheat producing area. Enterprises with three or four tons per day and hundreds of tons per day are everywhere. The top three companies in the total sales volume are less than 5% of the total sales volume of the industry, and the industry has no leader.

The price of the industry is also colorful. The retail price of the same products and the same specifications varies from 3000 yuan / ton to 8000 yuan / ton. More than 80% of the enterprises take the low price retail price of 3000 yuan / ton, and the channel profit is only less than 8%. The market capacity of the price bands of the three, second and first tier markets is very different (see chart). It can be said that what products have market and what price bands have corresponding consumers.

Sales planning points appear! Use high channel profits to achieve channel thrust and operational space.

Since there are stable market capacity in the one or two and three tier markets, the market has no absolute hegemony, price elasticity is 2400 yuan / ton (1.2 yuan / Jin, premium rate is 20% to 50%), then we will be the overlord, the retail price is higher than the competitors 30%, and the high profit margins should be transferred to distributors and terminal businesses in the early stage to mobilize the enthusiasm of "push". Anyway, the impression of consumers is that the retail price of 2 yuan / Jin noodles and retail price of 3 yuan / kg noodles are all high prices, all good, one point price, one point goods!

Therefore, when the noodle business is generally a salesman, an internal sales department constitutes a sales department, we have set up a sales team serving every county dealer to conduct systematic terminal visits, services, display and sale, etc.

Therefore, when the general service gap of noodle enterprises is blank, we have set up a convoy of convoy services to assist carmakers to carry out carpet detailed terminal services.

Therefore, when noodle enterprises are generally in a state of trade and distributors' distribution capabilities determine the sales performance, Y will carry out the 100% activity of distribution rate, so as to "shop in villages, shops and stores". The first time the terminal does not send samples worth 3 yuan, second samples are not delivered to the value of 6 yuan, and third samples are not delivered to the value 9 yuan.

Therefore, when other enterprises' products are placed in the bottom shelf and bags of the retailers at random, Y will send free display frames to class a terminals free of charge, and display products in a comprehensive and concentrated way. The worst thing to do is to let the salesmen make 4 rows of display above the instant noodles and puffed food area, so that consumers can really see everywhere and buy readily.

Finally, in the strategic regional market operated by Y company, the sales profit of 20% to 30% higher than that of the competitors has almost terminate the other noodle brands. After all, the terminal's business requirement is that the category is abundant, the brand is centralized to retain customers and reduce the inventory. Y company has realized the smooth implementation of the new product promotion through channel monopoly.

Mustard tuber

The second case was stolen from the Sichuan W company's Zhu general on the dealer Summit Forum held in the national spring corn and sugar fair "food marketing" in 2011.

He led the W pickled mustard business almost started from scratch, in a few years to achieve more than 50% of the compound growth, ranks among the top three national mustard tuber industry, W trademark has been selected as China's well-known trademark. But there are only 28 business people, and there are only 2~3 provinces in the strategic sales area.

Where is the secret? Use the high channel profit to achieve product promotion channel monopoly.

Pickled mustard tuber industry is somewhat similar to the noodle industry. Its market capacity is small (18 billion yuan) and its consumption is wide. As a result, the demand for table meal consumption has increased by more than 15% annually. The establishment of a strategic regional market in 1~3 provinces can achieve a higher sales volume and Industry status.

Pickled mustard tuber industry is also a highly dispersed industry. In addition to the industry recognized Fuling pickled mustard tuber "Wujiang" brand (accounted for 13% of the industry share), Sichuan, Chongqing, Zhejiang, Hebei have tens of thousands of large and medium-sized pickled mustard business or workshop, annual sales of hundreds of thousands of yuan to several hundred million enterprises competing with the field.

The retail price of pickled mustard tuber industry is also more chaotic, and retail profit is low (the retail profit of pickled mustard tuber per bag 60g and 70g is only 0.03 to 0.04 yuan). The consumption demand of pickled mustard tuber is simple, products can only be categorically classified (taste, specifications, etc.), the retail price is relatively simple on the surface, mainly concentrated in the retail price of 0.5 yuan, 1 yuan, 1.5 yuan three price belts, but the quality, weight and brand awareness behind the price, consumers hardly know, and there is no price criteria.

Since consumers do not have clear criteria for evaluating retail prices, there are no monopolistic enterprises to set up price benchmarks; since W is a new product and brand, it is difficult to enter the market at low prices, and it is difficult to enter the market at high prices.

Therefore, W enterprises also choose the products with the same specifications and tastes to directly occupy the upper limit of the price band, for example, the retail price of 50g is 0.5 yuan, and the retail price of 90g is 1 yuan, which is directly higher than the profit margin of more than 30% of competitors. The higher profit margins attract terminal businesses, and take the initiative to reduce other brands and even sell W brands.

The characteristics of pickled mustard tuber consumption decide that consumers are unwilling to make goods three, and the insensitivity to price has created the problem of solving the problem of buying by means of solving the problem of willing sale.

condition

Not all industries and businesses can play this way.

First of all, products should belong to consumers' low involvement in commodities, that is, the proportion of goods consumed in consumer spending is relatively low.

Most of the consumer goods of ordinary consumers belong to this category, and most of the durable consumer goods with high prices do not belong to this category. The proportion of expenditure is relatively low, the cost of consumer trial is not high, most of the buyers do not want to "goods compare to three homes", mostly the principle of proximity and convenience, laying a consumption foundation for channel monopoly to achieve sales monopoly. When consumers purchase more opportunities and purchase frequently, the more times the new products appear at the channel terminals, the greater the chance that they will be tried, tried and tried by consumers.

Secondly, the industry is highly dispersed, and lack of leading enterprises to set up price benchmarks.

The reason why the instant noodle industry is short of products over 20 years is because of the absolute monopoly of the master's "braised beef noodles", setting up an insurmountable price benchmark for the industry. The master's retail price is 1 yuan, the brand of other instant noodles can only be less than 1 yuan, the master's retail price is 2 yuan, the other brand's highest price can only be 2 yuan, now the master's price has increased to 2.3 yuan, similarly, "white elephant", "today's wheat Lang" and so on can only lower than 2.3 yuan.

If the industry concentration, but a lack of leading brands in a price range, such as low-priced liquor, you can set up the highest price, increase sales profits, and enhance the market operation cost space.

Finally, we must consider the "psychological threshold" of profit beyond the industry standard.

Sales psychology has repeatedly stressed that the price increase should not exceed 15% per time, but when it is depreciated, it needs more than 15% to be perceived by consumers. The same is true for channel sales profits. If we want to make a successful channel monopoly model, we must break through the problem of solving the problem of buying through solving the problem of selling, and we must break through the "minimum psychological expectation beyond the value" of profit, which is "psychological threshold", which is the same as the opening of the channel valve switch, so as to promote the new product to "fly three thousand straight down".