How to Improve Sales Network CoverageHow to Improve Coverage

Lecture 5: How to Increase Network Coverage

Key Points of this Lecture

Two Ultimate Problems in Sales

22 Types of Distribution Networks for Coca-Cola Products

Winning or Losing at the Retail Store

There are a lot of things that go into sales, from developing the distributors, to doing the promotions, to laying out the products and stocking them, and then finally to closing out the accounts and collecting the money. There is a lot of work that needs to be done. So what is the problem with doing all this work? As

Sales work to solve the final two problems

How to display the product in front of the consumer

Consumers are not in the manufacturer's warehouse to buy products, not in the distributor's warehouse to buy products, and even more so in the roadside to buy products, the consumer is in the thousands of retail stores to buy products. Therefore, the sales work to solve the first problem,

is the manufacturer through how the sales network to make products from the manufacturer's warehouse to the supermarket, chain stores, specialty stores, grocery stores, retail stalls, so that consumers want to buy the product when they can see the product, to buy the product, this is the sales work to solve the first problem.

1. Traditional sales network

Sales network refers to the product from the field of production to the field of consumption through the channel. The traditional sales network consists of manufacturers, wholesalers and retailers, each member of the system is an independent economic entity, each pursuing the goal of profit maximization, even at the expense of the entire network system profits are not willing to sacrifice, no one network member can fully control the other members.

Figure 5-1 Types of traditional sales network

2. Vertical sales network

Vertical sales network is a unified system consisting of manufacturers, wholesalers and retailers.

Any member of a vertical distribution network either owns, or grants exclusive rights to, or has great power to force the other members to cooperate. Vertical distribution networks can be dominated by manufacturers or by wholesalers or retailers.

Figure 5-2 Types of Vertical Distribution Networks

How to Penetrate Products into the Minds of Consumers

In the face of a wide range of products, how can a company get consumers to buy its own products instead of those of other companies? This is always the center of the enterprise marketing work and the key, this problem needs to be solved through the terminal market operation.

The terminal market network is the most important network in the enterprise sales network, the enterprise can not be a wholesaler, can not be two wholesalers, do not want to three wholesalers, but can not not want to the terminal market. Terminal market is not only the final sale of enterprise products, but also the place where consumers buy enterprise products.

1. Only to see the product to increase the opportunity to buy the product

Procter & Gamble in the "sales representative training manual" in this sentence: the world's best products, even with the best advertising support, unless consumers can buy them in the sales store, or else they can not be sold.

This is a very profound statement. Even if a company has the best products in the world and the strongest advertising support in the world, if consumers do not see the company's products in the retail store, they will not be able to buy the company's products, and the company's products will not be sold.

2. The best way to display products in retail stores

Today, retail store shelves have become a valuable business resource, and it has become difficult to place products in retail stores because the battle for shelves is now more and more intense. Many companies are considering how to get their products into retail stores, how to get more shelf space and better display positions for their products. However, the display space in retail stores is very limited, and if companies do not put in extra effort, they will not be able to let consumers see their products in retail stores, and their products will not be able to be sold.

■Expanding the display of products in the terminal market

The first issue that enterprises should consider when doing terminal market is to improve the coverage of products in the terminal market, expand the display of products in the terminal market, so that the enterprise's products can meet with more consumers, which facilitates the purchase of consumers.

Case

"good" fruit tea failure Apocalypse

In the 1990s, there is a production of "good" fruit tea enterprises, sales are very hot, the product demand exceeds supply, dealers to take the payment of goods Long queues need to wait more than a week to get the goods. In the face of such a good sales situation, the boss of the enterprise boasted, 3 years to beat Jianlibao, 5 years to beat Coca-Cola. However, more than ten years have passed, Jianlibao Group smooth conversion, Coca-Cola stands tall, and this enterprise has long been closed down. One of the important reasons is that the enterprise neglected the construction of the terminal network.

■ Coca-Cola's "Three A's" strategy

Coca-Cola products can be sold in the world for more than a hundred years, because it has a lot of unique marketing secrets. The secret of Coca-Cola's marketing is its "Three A's" strategy: affordable, accessible and enjoyable. Among them, to buy, that is, no matter whether consumers are in the day or night, no matter whether consumers are in the city or rural areas, as long as consumers want to drink Coca-Cola, it can ensure that consumers can buy Coca-Cola. Coca-Cola's "Three A's" strategy is to grab the terminal market.

Case study

Coca-Cola increased consumers' purchasing opportunities by improving the coverage of the terminal market

In Zhang Yimou's movie "Not One Less", there is a plot: in a very poor and backward mountainous area, when elementary school students want to drink Coca-Cola, they can buy Coca-Cola in the local area. Coca-Cola is all about increasing the chances of selling its products by improving end-market coverage and placing its products in front of more consumers. Today, Coca-Cola has developed its network strategy from the "Triple A" strategy to the "Triple B" strategy; from the past emphasis on consumer access to today's emphasis on the need to make Coca-Cola's products ubiquitous.

The 22 kinds of sales network of Coca-Cola products

Coca-Cola products are sold through 22 kinds of networks. It is through this dense as a spider web of sales networks, the Coca-Cola products spread to every corner of the world, so that every consumer in every market and every region of the world, as long as they want to drink Coca-Cola, they can see Coca-Cola at any time and anywhere, and buy Coca-Cola.

1. Traditional network--Food retail network

That is, through a fixed place, counter-type transactions, served by salesmen. This channel is generally operating food, beverages, cigarettes, alcohol and non-staple food and other household goods stores, such as food stores, food malls, non-staple food stores, non-staple food malls, food markets and so on, this type of network is mainly oriented to family consumption shopper services.

2. Supermarket network

That is, there is a fixed place, open shelf display of goods, quantitative packaging, marked price, consumers choose their own products, no salesman service, export a payment checkout, electronic settlement, lower prices, larger sales volume. Business food,

Beverage, daily necessities and other commodities supermarkets, mainly for home consumption shopper services, the network includes independent supermarkets, supermarket chains, hotels and shopping malls, supermarkets, wholesale supermarkets, self-service markets, warehousing supermarkets and so on.

3. Affordable shopping mall network

That is, the mode of operation and supermarkets are basically the same, but the difference is that the scale of operation is larger, compared with the supermarkets and self-service markets, to attract consumers with lower retail prices of goods, and is therefore also known as affordable shopping malls. Affordable shopping malls gross margins are generally controlled at 5% to 10%, this type of shopping malls through the large traffic, high sales to obtain profits, so often in the beverage business to encourage the purchase of a lower price strategy.

4. Grocery store network

Usually located in residential neighborhoods, the use of residential or temporary buildings and kiosks to operate food, beverages, tobacco, alcohol, spices and other necessities of life-based small stores, such as convenience stores, convenience stores, husband and wife stores, kiosks and so on. Grocery stores are characterized by an extremely wide distribution to facilitate residents to buy nearby, smaller windows, fewer commodity displays, indoor placement, longer business hours, and discretionary.

5. Department stores, department store network

That is, the operation of a variety of daily-use industrial products based on a comprehensive retail stores, mostly located in busy commercial areas, generally large and medium-sized majority of the scale, the variety of commodities, colors, specifications are more complete. The store is divided into categories set up a commodity department, commodity counters, the implementation of multi-departmental professional management, complete service facilities, management is more advanced, can meet a variety of consumer shopping needs, suitable for consumer travel, leisure, shopping. In addition to this type of store internal food supermarkets, food counters, more attached to the fast food hall, rest and cold drinks hall, cafeteria, cold food cabinets and so on.

6. Shopping and service network

That is, the operation of non-dietary food-based stores and service industries of various types of specialized commodities. The network as a result of operating a variety of small, you can improve the operation of the technology and quality of service, because of its geographic location is very important, it is also a beverage, in order to facilitate consumers.

7. Restaurant network

That is, a variety of grades of hotels, restaurants, restaurants, including cafes, bars, cold drinks and so on. This kind of network to provide consumers with dining out, beverage services, by the service staff has been serving, and finally unified settlement.

8. fast food network

That is, in the fast food restaurant consumers eat, while providing beverage services to them. Fast food network places fixed, well-equipped, sold by the waiter, the variety of consumer choice, food and beverage fees unified settlement. Fast food restaurants tend to be lower prices, high traffic, shorter meal times, higher sales.

9. Street stall network

That is, there is no fixed housing, in the street side of the temporary occupancy of the stalls, sales equipment is simple, operated by unemployed people, selling drinks, food, cigarettes, alcohol, and other activities stalls, services for pedestrians to self-employment as the main mode of sales.

10. Industrial and mining enterprises and institutions network

That is, industrial and mining enterprises and institutions to solve the problem of drinks in the work of employees, work breaks to prevent heatstroke, as well as holiday

day distribution of beverages, the use of public funds to order the way to provide employees with beverages, the cost of the use of the state regulations on the summer heatstroke, the number of enterprises due to the different business conditions and vary.

11. Public **** institutional network

That is, by the companies, corporate offices, organizations, agencies and other office institutions, public funds order, hospitality, to solve the workers work with drinks and summer cooling, holiday drinks.

12. Forces barracks network

That is, the supply of troops by the Department of Logistics to solve the daily life of soldiers and officers, training and troops to invite guests, the need for holiday celebrations. Generally supplemented by a commissary, food, drinks, daily necessities, etc., to the troops and their families retail.

13. College and university network

That is, located in universities, colleges, junior colleges, colleges and other residential education places within the commissary, cafeteria, coffee and cold drinks seat for students and teachers and family members to provide learning, life and a variety of concentrated on-campus activities in the beverage, food services.

14. Elementary and secondary school networks

These are kiosks located in non-residential schools such as elementary schools, middle schools, specialized high schools, and private elementary and secondary schools, which provide after-school beverage and food services to students. Some elementary and secondary schools provide after-school beverage and food service; some provide morning snack service, lunch service, and beverages for students.

15. On-the-job training network

That is, kiosks located in various party schools, employee education schools, professional and technical (professional skills) training schools and other in-service re-education schools to provide beverage and food services to in-service workers studying at school.

16. Sports and fitness network

That is, located in the sports and fitness venues, the sale of beverages, food, cigarettes, alcohol counters, sold by attendants, to the sports and fitness services, or located in the food and beverage counters in the competition venues, to the people watching the game to provide beverage services.

17. Entertainment network

That is, located in entertainment venues, such as movie theaters, concert halls, dance halls and other food and beverage counters, to provide beverage services to consumers in entertainment activities.

18. Transportation site network

That is, to provide beverage services to travelers outside. Service locations in airports, train stations, terminals, bus stations and other places in the kiosk, as well as on trains, airplanes and ships to provide beverage services.

19. Hotel and restaurant network

That is, to the traveler to provide accommodation, food and beverage, entertainment hotels, restaurants, hotels, guest houses and other places, the occasion to provide beverage services for food and beverage, entertainment and room bar or attached kiosk and so on.

20. Tourist attractions network

That is, located in tourist attractions, such as parks, natural landscapes, humanistic landscapes, urban landscapes, historical landscapes and a variety of cultural venues, etc., to provide services to tourist visitors to food and beverage outlets, places fixed, counter transactions, larger sales volume, higher prices.

21. Third-party consumer network

That is, a variety of wholesalers, such as secondary wholesalers, wholesale markets, wholesale centers, commodity exchanges, etc. to wholesale as the main form of beverage sales network, the network is not consumer-oriented, but only the product circulation of the transit link.

22. Other networks

That is, product exports, gifts, direct sales to consumers, as well as a variety of product exhibitions, food expositions, trade fairs, temple fairs, a variety of promotional activities and other forms of beverage sales and venues.

Coca-Cola signed an agreement with China's State Postal Administration in 2000, that is, when consumers go to the post office to send letters, if they are thirsty, they can buy Coca-Cola without leaving the post office.

Coca-Cola has 22 networks distributing its products in China, so the ubiquity of Coca-Cola products has made it the dominant player in the food industry.

Self-examination

Winning or losing is decided in the retail store

Analysis of consumer buying behavior

After a company puts its product in a retail store, is it a certainty that the product will be sold? Not necessarily, the retail store shelves a wide range of products, consumers into the retail store, the face of a wide range of products, how can consumers face so many products to make the purchase of the enterprise products and not to buy the products of other companies to make decisions. Consumer purchasing behavior is often subject to the influence of the sales site, the sales site to do a good job of promotion, you can stimulate the consumer's desire to buy, so that consumers are determined to buy the enterprise's products, but not to buy the products of other enterprises.

1. Six Issues of Consumer Purchasing Behavior

Figure 5-3 Six Issues of Consumer Purchasing Behavior

In real life, consumer purchasing behavior will be affected by a number of factors, such as personal factors such as age, gender, occupation, economic status, lifestyle and other factors, as well as motives, feelings, beliefs, attitudes and other Psychological factors, but also by social class, related groups, family, culture and other social factors.

2. Internal and external factors of consumers' willingness to buy

Needs, motivation, cognition and learning are the internal factors of consumers' willingness to buy; small groups, reference groups, society, family, culture and promotional activities are the external factors of consumers' willingness to buy.

Figure 5-4 Internal and External Factors of Consumers' Willingness to Buy

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The so-called planned purchase is that before consumers walk out of the door, they already have a clear purchase intention in their mind, i.e., what brand of product they want to buy today, so when they come to the retail store, they go straight to the counter of that product and pick a product of that brand. After payment, their purchasing activity is over. However, this type of consumer accounts for a very small percentage of the overall consumer base.

■Impulsive buying

The vast majority of consumers buy on impulse, that is, they come to the retail store without a clear intention to buy, and are easily influenced by the advertising and packaging

and then make a purchase decision.

By the sales site of various factors, such as store displays, advertising and so on the impact of change. 1994 conducted a survey showed that 83.6% of the people are unplanned purchase, that is, random purchase (impulse buying); 91.6% of the people in the retail store to make the decision to buy a particular brand of products. In developed countries 28% of consumers decide which retail store to go to and what brand to buy before they go out; 72% of consumers' purchasing decisions depend on the influence of chance factors on the sales floor.

Figure 5-5 Consumer Purchasing Behavior Proportion in Developed Countries

Since the majority of consumer purchasing decisions are made at the point of sale, companies can stimulate more consumers to buy their own products and give up on buying other companies' products if they can do a good job of promoting them at the end of the market. Practice shows that a retail store before entering the consumer quite rational, but also after entering the retail store to produce some degree of impulsive buying behavior.

Standing out from competing brands

There are a lot of products on the shelves of a retail store, including, of course, competitors' products. If the company's products are submerged in the many competing brands, and the consumer does not see the company's products when they arrive at the sales floor, then for the consumer, it is equivalent to the company's products do not exist.

How to get consumers to buy the company's products? After the enterprise's products placed in the terminal store, must be through a variety of promotional activities, the enterprise's products and competitors' products to differentiate, in order to attract the eyes of consumers. For example, through the display, packaging, POP, counter packaging display and other ways to differentiate the product from competitors' products, so that the product stands out from the crowd, so that the product can immediately attract the attention of consumers. Now is the era of attention economy, now the competition is to attract the consumer's eyeballs competition, as long as more than competitors can attract the consumer's eyeballs, than competitors have more chances of success. So promotions in the terminal market, you can make the product stand out in the competitive brands, thus stimulating the consumer's desire to buy.

Summary of this lecture

Sales networks are of different types depending on the products produced by the company, and there are five types of traditional sales networks. The latest development in sales network development is the emergence of vertical sales network and its challenge to the traditional sales network, vertical sales network system can control the network behavior and eliminate the conflict caused by independent network members to pursue their own goals. It relies primarily on its scale of operations, bargaining power and elimination of duplicative services to achieve its economic objectives.

The Coca-Cola Company presents its products in the best possible light to consumers through 22 distribution networks. In the marketing strategy of Coca-Cola Company, effective distribution network is one of the most important parts of it. The Coca-Cola Company emphasizes that the success of the company can often be seen in how well the sales networks work

to market Coca-Cola products. Coca-Cola's sales network (i.e., terminal construction), puts great emphasis on scientific and standardized, and its experience is worthy of reference for enterprises.

Terminal promotion is to utilize the original advantages and create new advantages among the many competitive advantages in the target market, and continuously establish and maintain the leading position of its own brand, so as to achieve the purpose of pulling the sales of products.

Experiences

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China's enterprises have circulated a saying that whoever does a good job of terminal, whoever masters the terminal, who will become the market winner. Terminal is the point of sale, is the realization of the enterprise product into a monetary portal. Terminal marketing activities in the enterprise market has a pivotal position, terminal effect has become an important means of pulling sales. At present, China's enterprises to carry out terminal operation methods are mainly hard terminal and soft terminal two kinds.

How to strengthen the hard terminal

Hard terminal of the main forms of publicity

Generally speaking, the hard terminal mainly has the following forms of publicity: indoor such as POP, desk cards, posters, standing cards, cabinet stickers, hanging flags, product models, light boxes, posters, promotional materials, bags, price lists and so on. Outdoor such as display boards, shopping guide, awnings, banners, street signs, car body and so on.

Each form of hard terminal facilities, have their own different characteristics, different display places and different display content, each with its own advantages and shortcomings. In the specific operation and implementation, should give full play to their respective strengths, and adhere to the principle of unity; adhere to the long-term, planned implementation; adhere to the pursuit of all-round, three-dimensional audio-visual packaging, in order to form a brand atmosphere.

Successful cases of hard terminal

In the 1990s, Huiren Group started from a small pharmacy in a remote county in Jiangxi, and developed into a pharmaceutical group with annual sales of more than one billion yuan today, and one of the successful experiences of Huiren Group is the operation of the terminal. From its main product Huiren Kidney Bao, for example, in the terminal promotion on the implementation of the "four one" project.

The first "one" is a light box. In Zhengzhou City, Henan Province, more than 95% of the drugstore entrance have Huiren Renbao light box. So that consumers, whether they are sitting in a public **** car, or driving their own private car, and no matter whether the consumer is riding a bicycle, or walking on the road, the consumer as long as the drugstore passes by, you can see the drugstore doorway of the Huiren Kidney Bao light box, and immediately know that the drugstore in the sale of Huiren Kidney Bao. The second "one" is a desk card, or a display board advertisement. After consumers walk into the pharmacy, they will see the display board advertisement of Huiren Renovation at the entrance, look up to see the banner of Huiren Renovation on it, walk into the store and see the POP advertisement of Huiren Renovation on the counter, desk card promotional materials, and the display of Huiren Renovation on the shelves. The third "one" is to put the products in a conspicuous position. Huiren Kidney emphasizes the centralized display of the products, a large number of displays, and a good display position. The fourth "one" emphasizes a good customer relationship, if the consumer asks the salesman, what is a good treatment for kidney medicine? The first brand product recommended by the salesman to consumers is Huiren Renbao. The light box, POP, desk card, promotional materials, display boards, banners, these are all hard terminal.

How to do a good job of soft terminal

Soft terminal is more important than the hard terminal

1. The difference between the soft terminal and the hard terminal

The difference between the soft terminal and the hard terminal lies in the following: the hard terminal is tangible, visible, touchable, and can be assessed and managed with quantitative indicators; and the soft terminal is intangible, invisible, and cannot be touched, but it has a wealth of connotations, extremely important content.

2. The key to the success of promotional activities in the soft terminal

If the enterprise does not have a good soft terminal, then most of the hard terminal is also difficult to implement, it is difficult to play its due role. Now many companies have their own shoppers in the terminal store, promoters, these shoppers, promoters to consumers to introduce products, recommend products to consumers, they play an irreplaceable role in the terminal promotion. Terminal promoters are generally women, full-time and part-time, through promotional work to carry out ceremonial services, shopping guide services, product promotion, information collection, market research and public relations activities.

A brand in the status of similar products, is reflected through the market share, and the share of the first to show the degree of presence in the terminal, that is, the rate of store. How to improve the objective and reasonable store rate, hard terminal construction