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2open_dealing_with_channel_conflict_in_china
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Transcript of 2open_dealing_with_channel_conflict_in_china
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SOME CUSTOMERS
• “New” rules for IT Management:
– Spend Less. It is getting harder to achieve competitive advantage through IT investment, but easier to put your business at a cost disadvantage
– Follow, don’t lead. Moore’s Law guarantees that the longer you wait to make an IT purchase, the more you’ll get for your money
– Focus on vulnerabilities, no opportunities.
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IT DOESN’T MATTER
Studies of corporate IT spending consistently show that greater expenditures rarely translate into superior financial results. In fact, the opposite is usually true.
By: Nicholas G. Carr
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IT IS ABOUT BUSINESS…
SUPPLY DEMAND
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…VALUE GENERATION
Design Manufacturing Marketing Sales Logistics Customer Support
THE KEY MOMENT OF TRUTH
manufacturer consumer goods
money
Distributor A
Distributor N
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POWER BALANCE
Forward
Integrate FMCG. China
Exclusive Distribution
Cooperate
Air conditioner. China service
network
Dominate
China regional distributors
Lead
(Automotive)
Channel Customer Control
Brand Customer Control
High Channel added value
Low Channel Added Value
Channel conflict strategy matrix: Bendix, Goodman and Nunes
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2 3
REGIONAL DISTRIBUTORS ACROSS CHINA
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Several Importers with different strategies
What he does? • Finance • Importer • Often, trade marketing They are competing in price
What can we do? • Policies • Sales attribution • Dominate ecommerce channel
How about technology? • Move them to showrooms & logistics networks • Ecommerce platform with huge coordination challenge
DOMINATE
Wine Case
CHINA MULTIBRAND EXCLUSIVE DISTRIBUTOR
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Huge importer with great distribution network
What he does? • Finance • Importer • Often, trade marketing
He is very powerful
What can we do? • Help him sell • Push sales to him • Surround him: pre and post customer interaction
How about technology? • CRM. Customer registration. Database marketing • Cuponing and trade marketin support • After sales service
FORWARD INTEGRATE
Olive Oil, Dairy Cases
CHINA SERVICE NETWORK
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Diverse network of SMEs using our products
What they do? • Add a necessary layer of service to our product Powerful because they got substitutors
What can we do? • Standardize • 020 • Reverse: choose installer after choosing our product
How about technology? • Scale and Scope economies (critical mass) • Technological infraestructure for SME integration • Bóoking systems • Services Marketplace • Customer Segmentation
COOPERATE
Construction Materials, Car Lubricants
