Distribution channel strategy case article 1:
Philips Electronics is one of the largest electronics companies in the world, with sales of 29 billion euros in 2003. It is in the leading position in the fields of medical diagnostic imaging and patient monitors, color TVs, electric razors, lighting and silicon system solutions. With 65,438+066,800 employees, Philips is active in health care, fashion life and core technology in more than 60 countries. Philips entered the China market as early as 1920. Since 1985 established its first joint venture company, Philips has been adhering to a long-term commitment rooted in China, bringing all five major businesses, such as lighting, consumer electronics, household appliances, semiconductors and medical systems, to China, and simultaneously bringing the world-leading technologies, products and services to the China market. At present, Philips has become one of the largest investment partners in China's electronics industry, with a total investment of over US$ 3.4 billion. It has established 35 joint ventures and sole proprietorships in China, and has more than 60 offices in China with more than 20,000 employees. In 2003, the company's turnover in China reached US$ 7.5 billion, and its international procurement amount reached 38. Three hundred million dollars.
Philips' channel model in China has experienced long twists and turns. Before 1997, Philips had been operating directly in the South China market, controlling the mainstream channels, and then distributing goods to terminals, with annual sales hovering around 7 million yuan. Due to the popularity and general success of Philips agency system abroad, Philips decided to implement the regional general agent system in the South China market from the end of 1997.
1997- 1999 As a result of Philips' preferential agency policy, the sales in Philips' agency area soared and doubled year after year, reaching 230 million yuan in 1999. Philips? Guangdong and Guangxi? Market share rose to 10%. The general agent system at this stage is fruitful for Philips, and it should be said that it is a win-win stage.
However, with the intensification of competition in the domestic color TV market, the overall price has dropped sharply, and Philips' profits have also begun to decline. In 200 1 year, Philips began to plan the actions of channel recovery and product upgrade, with the aim of threatening agents with low gross profit, reducing channel costs and enhancing retail price competitiveness.
In 2002, Philips changed its agent and both sides came forward to manage the market. However, as a foreign-funded enterprise, Philips' personnel costs and market management costs remain high, and it is still unable to reverse the meager profit situation. In the end, Philips decided to entrust TCL as the regional channel agent for seven provinces in South China. In August, 2003, Philips Electronics and TCL Group announced that the two brand companies would cooperate in the sales channels of color TV sets in five provinces and cities in China. This means that Philips color TV will take advantage of TCL's sales network to further achieve the goal of covering the low-end secondary market.
At the beginning of 2004, Philips' South China office of audio-visual products in Guangzhou was officially dissolved, and all the color TV sales in seven provinces in South China were transferred to TCL, a domestic color TV giant. Philips has changed from a former manufacturer to TCL's independent channel and sales management, and more extensive and in-depth channel cooperation between the two sides is under way.
Zhang Dehua, Guangzhou Ultimate Marketing Consultant Co., Ltd., which has been tracking the channel management of Philips in South China, said in an exclusive interview with the Financial Times that the achilles heel of Philips is speed. Frequently changing the channel mechanism, and the agent changing speed is too fast, which makes the channel factor cause market turmoil; On the other hand, the implementation speed of brand and technology upgrade is too slow, and the upgrade speed can't keep up with the natural upgrade speed of channels and markets, resulting in? A bull is pulling a broken car? Adverse consequences; In the end, the shortcomings of channel execution made Philips fall into a channel dilemma in South China. The reason why the marriage between Philips and TCL is widely concerned is that after Haier and Sanyo, TCL and Panasonic, Hisense and Sumitomo, domestic household appliance enterprises have once again reached sales channel cooperation with multinational companies. For Philips, this is a new choice after many channel difficulties. As for whether the result will last for a long time, it is still difficult to draw a conclusion. After all, both sides put their own similar products in this channel, and TCL also cooperates with other manufacturers. How to solve the situation of homogeneous products competing on the same stage is probably a difficult problem for both sides.
Liu Yongju, a famous person in China's actual marketing planning, said in an exclusive interview with the Financial Times reporter: What are the channels for multinational companies like Philips to appear in China? Short board? With the adaptation to the competitive environment in China market. People are always very? Superstition? Multinational companies, in fact, in the face of such a special market environment as China, multinational companies are not very good at it? Play? Because what they are familiar with and good at is operating in a mature market, while the China market is not mature. From 1990s to now, the China market is still in the stage of meeting the demand, and basically the demand has not been driven. The characteristic of this stage is that the sales force is greater than the market force, which means that the role of channels may be greater than that of marketing. Meeting market demand mainly depends on channels, so the greater the demand, the greater the channel advantage. Although some commodities may be saturated in some big cities, the demand is still strong in the vast small and medium-sized cities and rural markets in China. In addition, China is a vast country with huge differences, and the integration of regionalized culture and consumer demand patterns has brought great challenges to multinational enterprises. In 2003, Chairman Matsushita said something to the effect that it was raining, so we should take an umbrella. This shows that some multinational companies have realized that they must make corresponding marketing strategy changes according to the special environment of China market.
Liu Yongju also pointed out: From the market point of view, Philips? Borrow? The advantages and disadvantages of TCL's channels can't be seen in the short term, so it's hard to say. Borrow channels? Whether it is easier to achieve market success. In this market atmosphere, only paying attention to channel construction and ignoring others will only maintain short-term market success. When the market matures further and consumers' demand for brands and personalized products rises, the advantages of channels will be weakened. Therefore, the current channel advantage is only caused by the inertia of long-term strong demand in China consumer market. Is it future competition? Channel is king? It depends on the changes in the market. However, excessive dependence on channels will lead to the passive position of production enterprises in the future market competition. Take the home appliance market as an example. In just a few years, the channel has formed a powerful independent force. In the further expansion, channel enterprises control the production enterprises, so that the news that a channel enterprise wants to ban a brand is often seen in the media. Normal marketing is undoubtedly a channel for manufacturers to evaluate distributors, but in China household appliances market, it has become a channel member for evaluating manufacturers. In the helpless reality, home appliance companies are also worried that one day they will be given by channels. Play? Go to hell. In addition, the value of goods should be composed of product value plus brand value. However, under the situation that the channel controls the market, the brand value has been shelved, and all manufacturers are fighting for the price. In the long run, production enterprises will lose their potential for future development. Therefore, many domestic manufacturers have started to build their own channels, such as Gree's joint distribution body. But if there is no strong production enterprise to break with the channel, it means destruction. Historically, Changhong and Konka have encountered channel problems.
Distribution channel strategy case 2:
Case: airline marketing channel improvement strategy
Statistics show that in the current air transport sales market, the ratio of self-operated sales to agency sales of airlines is close to 2∶8, and paying sales agency fees has become the biggest sales cost for domestic airlines. If five years ago, it was an effective measure for airlines to develop sales agents, then the change of market situation and the development pressure of their main business after reorganization have forced us to consider adjusting this pattern and improving marketing channels. A better improvement strategy is to shrink the agency sales network and expand the company's direct sales scale. In other words, airlines set up multiple ticket offices in their respective base cities, so that the marketing channels of airlines in the base cities are gradually adjusted from relying mainly on agents to self-selling and consignment, keeping pace with each other and developing in a balanced way. By who? Release? Arrive? Accept? Proxy network and extension? Direct selling? Sales channel improvement strategy based on.
Case: Lehua has changed.
In 2002, Lehua completely transformed its inherent sales channels, reorganized and merged its more than 30 branches and offices, and fully implemented the agency system. At the same time, Lehua also put forward stricter requirements for agents: must it be cash? .
It is estimated that a color TV set needs to go through at least four links from factory to branch, to wholesaler and then to retailer. If each link consumes 3% profit, the channel has consumed 12% profit, and the huge sales team and multi-level sales channels have overdrawn the maximum profit space of the color TV industry.
Lehua's approach hides certain risks. Lehua's products are mainly low-end TVs, and most of them are sold in second-and third-tier cities. Lehua cut down branches all over the country in one breath. This rapid change is like cutting off its tentacles all over the sales terminals. What else? Must it be cash? This way is really difficult for businesses to accept. A few months later, the sales revenue of Lehua color TV not only dropped sharply, but also triggered a series of chain reactions such as labor disputes and debt crisis.
Distribution channel strategy case 3:
1. Case study: How did Procter & Gamble and Wal-Mart change from a hostile relationship between manufacturers and retailers to a win-win cooperative relationship? What is the reference significance of this case to domestic enterprises? From the background, time and process at that time, to how to cooperate, analyze the effect after cooperation, and finally summarize my own views. )
Procter & Gamble and Wal-Mart: Opponents Become Allies
A strategic alliance agreement made Wal-Mart and Procter & Gamble partners in the supply chain, thus ending their long-term hostility.
Procter & Gamble is a global leader in consumer goods, and Wal-Mart, a retail giant, is one of its biggest customers. In the mid-1980s, the relationship between the two giants became tense. P&G's promotion is very strong, giving retailers a big discount. Wal-Mart took the opportunity to eat and hoard a large number of Procter & Gamble products, which exceeded the regular purchase quantity.
This has brought a lot of trouble to P&G. It produces too much and hurts the cash flow. In order to improve cash flow, P&G offered more promotions, and Wal-Mart responded by buying more, so the vicious circle between the two companies continued.
Kemenj (JenniferM M. Kemeny) and JoelYanowitz described this in the book Reflection:? The countermeasures taken by the two companies are trying to destroy each other's chances of success. ?
Therefore, P&G is determined to turn an enemy into a friend, extend an olive branch to Wal-Mart and establish a strategic alliance.
? The first problem is how to form an operation team composed of managers from both sides. Kemenger and Janovic said? They held a seminar for several days, and by using systematic thinking tools, they reached a * * * understanding of the results that the same business activities will bring to both sides. Managers of Procter & Gamble and Wal-Mart found that each other's behavior could have been reasonable, not selfish. ?
After fully understanding each other's needs, the two companies began to cooperate on the basis of win-win strategy, and P&G no longer needed to offer discounts to Wal-Mart. ? The implementation of this strategy was very successful, so it was promoted? P&G even stopped almost all price reduction promotions, which almost offended the entire retail industry. But as a result, P&G's profits rose sharply. ?
In order to make the cooperation successful, the two companies connected their software systems and a lot of information was shared. It is reported that now, when the inventory of P&G products in the Wal-Mart distribution center is low, their integrated information system will automatically remind P&G to replenish.
The system also allows P&G to remotely monitor the sales of P&G products in Wal-Mart stores through satellite and network technology, and the network will reflect this information to the P&G factory in real time. Every time P&G products are scanned at the checkout counter, these factories can know. These real-time information enable P&G to arrange production and transportation more accurately, and make product promotion plans for Wal-Mart. The saved inventory cost enables P&G to provide lower-priced products to Wal-Mart, so that Wal-Mart can continue to operate? Daily low price? Strategy.
Enlightenment to China Enterprises
In today's circulation field in China, there is fierce confrontation between manufacturers and chain retail enterprises in cooperation. On the surface, it mainly stems from the differences in product prices and marketing policies. In fact, it stems from the competition for channel control and the resulting looting and looting of product resources, marketing resources and human resources. By reducing the purchase price, delaying the payment, collecting the entrance fee and holiday promotion fee, chain retail enterprises occupy the resources of manufacturers as much as possible and pass on the costs to manufacturers. In order to avoid losing the initiative, manufacturers have to continue to maintain the original inefficient self-owned channels to control product prices and commodity trends to the maximum extent, so as to carry out strategic checks and balances on chain retail enterprises. In this way, the cost of both parties will naturally remain high, and profitability and growth will be seriously restricted.
And then what? P&G- Wal-Mart model? Tell us, to change this situation, must manufacturers and retailers give it up? Cold war mentality? On the basis of establishing a full trust relationship, the looting and looting of channel resources will be transferred to the reconstruction of supply chain and the appreciation of value.
2. Case analysis: Find a case that you think you have done a good job in domestic channel construction (it can be a certain link or part of the channel, such as Gree's unique experience in channel construction, Gome's successful experience, etc.). ), introduce the process of the case and summarize the success and your own views, opinions or feelings about the case.
The emergence of Gome seems to have certain inevitability. In the game of manufacturers, changes have prompted the authorities of both sides to seek a more favorable position and right to speak. Gome's success lies in the change from the traditional pursuit of profit rate to the pursuit of profit volume. The change of one word is the second bold breakthrough of the overall strategy of the enterprise.
Gome's success is also the result of leading channel costs.
Gome's channel allows manufacturers to save network construction costs.
With the gradual growth of similar enterprises in Gome, production enterprises find that it is more cost-effective to rely on standardized channel networks than to build their own networks, because the amortization cost of the networks they have made great efforts to build is too high, and platforms like Gome can undertake the competition of many commodities on the same stage. For example, Gome has recently extended from home appliances to it products, and now it is marching into audio-visual products.
From this point of view, the rationality of Gome's current existence and development lies in its network and platform having certain cost advantages. Although manufacturers are still unwilling, they must face it.
Gome's channels enable consumers to save procurement costs.
Chen Huai pointed out? Now the market has changed again. Isn't this the era of shortage? The manufacturer has the final say? Isn't the world the stage of expanding domestic demand? Merchants play with the market in their hands? It is time. Now? Consumers have the final say? At that time. In fact, manufacturers are trying to convince consumers. High-end manufacturers are responsible for persuading low-end consumers to focus on Gome, such as various promotional activities. ?
The significance of Gome to manufacturers is that it can attract many consumers with strong purchasing power.
But what does Gome rely on to attract consumers? Not bad! This is a price advantage, but not entirely. Gome consumers actually choose Gome for two reasons. One is cheap, and the other is that Gome has a brand. In other words, the consumer wants to find a balance between cheapness and reassurance, and Gome satisfied him, so he chose Gome.
Therefore, Gome saves consumers the process of inquiry and price comparison. At first, consumers may be suspicious, but with the spread of comparison and word of mouth, many consumers now do not hesitate to consume Gome. From this perspective, Gome enables consumers to save procurement costs.
Gome channel enables itself to save operating costs.
Today, Gome is no longer a model of success. Gome's model has been sparse and common abroad. Gome's success today is the success of continuous innovation, and a very important melody of this innovation is how to minimize the operating cost of the enterprise itself so that other enterprises can't follow up.
At the beginning of Gome's business, Huang Guangyu retired behind the scenes; However, when faced with the attack of competitors, Huang Guangyu once again came out to rectify Gome, completely separating the north and south of the sales network, completely separating the procurement and sales business, and moving the company's management down. Gome's original senior management team was all decentralized, from personnel to institutions, reducing the number of Gome institutions. Puffiness? . At the same time, we will focus on surrounding the Yangtze River Delta and the Pearl River Delta to start the secondary market and further open branches in second-tier cities.
It should be said that Gome is changing every year, which makes Gome full of vitality and competitiveness.
Cost leadership will not only become the core competitiveness of production enterprises, but also become the core competitiveness of channels. The success of Gome reminds me of a new marketing concept, that is, if all aspects of marketing want to achieve great results, how must they be considered? Make customers profitable? . ? Make customers profitable? It is to make his actual consumption lower than his expectation and make him feel profitable.
I think: both production enterprises and circulation enterprises have social attributes. They may not directly increase the public's income, but they can make the public's money more valuable and provide more products with better quality and lower price! This is the value of an enterprise.