How to choose the self-owned channel model

In the channel of self-owned enterprises, the most traditional method is to set up in each regional market is responsible for jurisdiction, operation of the local market branch (office). Later, with the emergence of specialty stores (chain stores or chain stores), franchise stores, the Internet as the representative of the direct marketing and other emerging forms of business, many companies change with the times, focusing on a certain kind of channel or cross use of some channels. Let's take a look at the aforementioned four self-managed channel model of their respective characteristics.

1. Branch (office) This is the most commonly used self-managed channel mode of Chinese enterprises. This is also all enterprises can not avoid a channel self-management mode, because even if the use of other channels, there is a regional or provincial cities to set up branches for coordination, management issues. Sanzhu is a typical example of this model. Characteristics: in the region or target provinces and cities and county-level markets, directly or locally recruited into a direct sales organization, its main responsibility is to develop distributors in the local area, the launch of the end of the store or direct sales, and to bear the responsibility of market development and maintenance, in order to achieve their desired market share and customer ownership. Advantages: direct sales organization, consistent goals, strong centripetal force, high autonomy and easy to manage. Disadvantages: Higher requirements on human resources and capital strength of enterprises, and relatively high costs. Channel cost characteristics: personnel costs, office costs such as housing rental, business trips, public relations and other marketing costs are higher, with their own efforts to establish and improve the marketing network time cost is also higher.

2. Specialty stores (chain stores or chain stores) using this self-management model, often have a certain strength and have a certain brand value of the enterprise. Because these companies have the ability to cut large and medium-sized stores and their distributors on their own restrictions, but also the ability to continue to expand their market share and customer ownership. At present, this model has been adopted most by tobacco companies such as Hongta (which has a strong policy), home appliances companies represented by Haier and TCL, and some cosmetic and apparel companies with a wide range of product lines. Characteristics: Enterprises with greater strength and higher brand value, in order to reduce the large and medium-sized hypermarkets on their own hold, try to avoid the distributors of the channel expansion of the ineffective, and the establishment of a direct-to-consumer franchise place. In most cases, the upstream manufacturers who export brand products raise funds to build their own. Advantages: not subject to constraints, direct communication with target consumers, proper operation, higher long-term earnings, strong autonomy, but also the existence of less labor costs, management is more simple. Disadvantages: the financial strength of the enterprise and the brand value of the higher requirements, while specializing in a larger area of the place, means that the enterprise product system is more complete. This channel mode, but also because of the relative singularity of the brand, which leads to consumers rely on brand awareness and loyalty is higher, while the channel model also exists in the market expansion of the disadvantages of a smaller force. Channel cost characteristics: labor costs, management costs, logistics and distribution costs are relatively small, while the opposite is the store rental and other operating costs and therefore apportioned to the higher long-term costs.

3. Franchise this self-managed channel model from 1998 after the beginning of the hot up in China. For the product (service) exporters of its biggest feature is that the marketing and promotion costs are low, the management of the trouble; for the franchisee, it is able to make their own quickly complete the business. At present, the enterprises that adopt this model most are mainly the strong enterprises in the industries of catering, medicine, cleaning, dry cleaning, clothing and so on. Representative companies are McDonald's, Texaco, Chongqing Little Swan hot pot, International Lixin, Fortnite, Romo suit and so on. Characteristics: brand enterprises and brand products (services) exporters, based on their own brand strength, with a set of unified training, management mode, unified CI and its set of mature market profit model to recruit partners, open direct-to-consumer exhibition and sales venues. Recruited partners to fund the self-build mode is the main, organization, institutions and centripetal force is relatively scattered. Advantages: interest in the formation of the **** the same body, can be low-input, low-cost to the success of the profit model quickly copied to the target regional market, relatively low cost, relatively high income, and more stable. Disadvantages: more loose, poor control, lack of unity and coordination, high brand strength requirements, planning power and training requirements, the requirements of the support factors (such as advertising, training, CI, etc.) is relatively more, the general buried in the disadvantaged enterprises are not easy to use. Channel cost characteristics: overall operating costs are low, but the advertising, CI use and other marketing and promotion costs are high.

4. direct marketing (or called direct marketing) direct marketing in previous years have been by some such as breeding promotion enterprises, book mail-order publishing organizations, Wal-Mart and other superstores, such as the use of a small fight. Since the emergence of the new marketing model of the Internet, the direct marketing model has attracted a lot of attention from Chinese enterprises, making many of them reach out to the Internet in order to create databases and build their own new independent channel model. In China, some of the pioneers are Lenovo, Haier, and Kolon.

Characteristics: Through the Internet, DM direct mail, direct catalogs, telephone and other communication carriers tools, across the intermediate links directly to the end consumer, face-to-face communication, contributing to the completion of the sale of the product to the commodity to the currency. This is a channel model that directly faces target customers or targets bulk purchases. Advantages: fast response, low overall investment, easy to develop products according to the individual needs of consumers and provide follow-up services. Relative to the tangible channel model, it has obvious advantages in price, service and even product quality.

Disadvantages: it is difficult to directly face most of the target consumers (collect user mailboxes, including the establishment of a detailed database of target customers' consumption habits, purchasing power, etc.), due to the limited popularity of the use of the Internet in China, so the face of the overall customer resources are limited, and the convenience of the network billing is poor, and the need for strong distribution power support, the inconvenience of consumers to intuitively select. Channel cost characteristics: high initial investment, each time and long-term average cost is low. Logistics and distribution costs, order distribution and other management costs, the establishment of a database and other aspects of the cost is larger. It is not difficult to see that the above four self-managed channel mode is each has its own advantages, channel costs also exist in different degrees of difference.

In general, in the above four self-employed channel mode, branch (office) mode channel self-employed cost is the highest, followed by specialty stores (chain stores or chain stores), franchise stores, direct marketing. Specifically choose which self-employed channel mode, directly related to the specific cost of how much and the size of the total cost of channel self-employment and the resulting risk, that is to say, the choice of self-employed channel mode itself is a way to control channel self-employment costs and risks.