echemi logo
Product
  • Product
  • Supplier
  • Inquiry
    Home > Coatings News > Paints and Coatings Market > Marketing: a battle for dealers is going on in the paint industry

    Marketing: a battle for dealers is going on in the paint industry

    • Last Update: 2020-04-03
    • Source: Internet
    • Author: User
    Search more information of high quality chemicals, good prices and reliable suppliers, visit www.echemi.com
    Core tip: with the gradual saturation of the paint terminal market, the relationship between manufacturers in the paint industry has gradually changed from "enterprise / brand centered" to "dealer centered", so a competition for dealers is staged in the paint industry A competition for dealers is playing out in the paint industry one day The head of a paint enterprise angrily complained to reporters: "one of my dealers has been poached by another brand!" his experience is not unique In the coating industry, whether it's products or business Paint knowledge how about Akzo Nobel Powder Coating Recommended introduction: powder coating is a kind of coating with different form from general coating, which is in powder form It is a new type of coating, because of its own advantages and more and more known by people Let's introduce Akzo Nobel Powder coating Akzo Nobel Powder coating is a cost-effective coating solution, which can be applied to different kinds of products After the treatment of static electricity and fire baking, a tough and durable coating surface will be formed, with the least impact on the environment Since the introduction of this technology, powder coating has been able to continue to maintain the Home of coatings: with the gradual saturation of the coating terminal market, the relationship between manufacturers in the coating industry has gradually changed from "enterprise / brand centered" to "dealer centered", so a competition for dealers is staged in the coating industry A competition for dealers is playing out in the paint industry one day The head of a paint enterprise angrily complained to reporters: "one of my dealers has been poached by another brand!" his experience is not unique In the paint industry, both products and marketing methods have been highly homogenized today, the dealer resources become the best guarantee of enterprise profits, "the world of dealers" Therefore, a battle for dealers has emerged "Channel competition has become white hot, and there is no new way to develop channels, so it's not surprising to" dig each other "(dealers)." Fang Zhijun, who is in charge of marketing work in paint enterprises, said: "this is a" bloody battle "regardless of cost." Competitor · trouble of new brand investment attraction a paint enterprise headquartered in South China recently launched a new brand with a good name Due to the product positioning in the thermal coating, they are currently facing the northern regional market investment "It doesn't feel good to carry out." Fu Hongmei, an employee of the company, told reporters that it was not easy to persuade dealers to run their brands in the early stage of research, even though she thought her products were promising "We take a differentiated route," she said "Before, many enterprises also proposed to make thermal coatings It's not necessarily that any company has made products, but we did it and tested it well in the coldest time in the north." But for new brands, the difficulty of attracting investment does not come from the strength of products; in the era of serious homogenization, brand awareness is more important - this is exactly what new brands do not have for the time being Therefore, it is not easy for new brands to snatch dealers from existing brands, let alone in the context of terminal channels tend to be saturated "We want to find those who identify with our products and are willing to promote our products." Fu Hongmei said that they positioned the development object of distributors as those that recognized the development prospect of the enterprise, understood the selling points of products, and could do both distributors and projects On this basis, it is supplemented by some regular support conditions, such as rebate; however, she is reluctant to talk about specific content She believes that under the premise that the product has selling points and development prospects, conditions such as rebate are not necessarily superior to the original brand But she obviously made a wrong calculation There are not many dealers who are willing to change their brands easily for the sake of "identity" In particular, many coating companies are eyeing dealers, a new brand without attractive conditions, it is difficult to get the attention of dealers "He can add one more (brand) without changing the brand." Facing the current difficult situation, Fu Hongmei finally said For new brands, it may be a compromise way for dealers to increase the number of brands, which can help enterprises reduce the difficulty of attracting investment However, the difficulties faced by the new brands will not be solved They are still at the bottom of the dealer competition, belonging to the "invaders" and protected by the existing brands Competitors · the delicate situation of small and medium-sized brands Bai Yixin is the business assistant of Guangzhou Futian chemical industry coating Co., Ltd (hereinafter referred to as "Futian coating") The enterprises and brands she serves belong to the middle level in the industry In Bai Yixin's words, it is "less than above, more than below" In fact, it is this kind of medium-sized enterprise whose position in the dealer competition is very delicate - compared with the big brands, their brand cohesion is not strong enough, so the loyalty of dealers is relatively weak; for small enterprises and new brands, their dealers are the most likely to be rebellious In addition, the "poaching" from enterprises of the same scale should not be ignored "Some of our customers have been poached by someone from a certain brand (middle level)." When it comes to "poaching", Bai Yixin complains In her opinion, the reason why the client was dug up was due to the improper maintenance of the salesman: "because he (the salesman) didn't respond to the company, he directly agreed to some requirements of the client verbally As a result, such requirements were not within the scope of the company's system." After the dealers were dug up, Futian paint sent its business personnel to understand the situation and tried to retain customers, but failed "After analyzing the advantages and disadvantages of brand transformation for customers, if the customers are still determined to change, then we will not demand any more." Bai Yixin said Despite the unpleasant history of being "poached", Bai Yixin also admitted that their salesmen would also poach customers of other corporate brands, "there are two or three" Bai Yixin thinks this is a bad phenomenon Because of the existence of "mutual digging" situation, "no negotiation" has become an "coincidental" approach among enterprises In addition to "corner digging", the dealers of paint enterprises are more from the normal development of salesmen and the development of woodworking channels After the salesman enters the position, he needs to undertake certain new dealer development business, which is the main source of the enterprise dealers; The development targets are general paint shops (dealers of non fixed brands), dealers in paint related industries such as building materials, etc., and the "poaching" among peers is only a small part of the development task In addition, the franchise of salesmen may also bring some dealers Salesmen are one of the factors that make the paint industry more mobile Salesmen generally have their own dealer resources, and their mobility will also drive the flow of dealers "Salesperson worked in other enterprises before, then came to our enterprise and brought his former customers here." "Generally speaking, the dealers who move with the salesmen identify with the salesmen, not the products of the enterprise Once the salesmen leave, the customers may also leave," said Bai Yixin According to her introduction, an average salesperson can bring two customers to the enterprise Sometimes, these customers are provincial agents and more often ordinary distributors "For example, one of our (salesmen) brings a provincial general distributor Some (salesmen) bring several (dealers), but they are all small customers." The "weight" of the competitors, whether it is a general paint shop or a dealer in related industries (let alone a dealer of other paint brands), is not easy to incorporate it into a dealer of the enterprise This is not only because changing a category or brand is a big expense for distribution, but also because they need to eliminate their concerns about the prospect of abandoning multi brands to start a single brand operation and abandoning the original product categories to start a new product operation This requires enterprises to offer persuasive and attractive conditions "We will give the new dealers a lot of preferential terms." Bai Yixin told reporters that in addition to the price, the support policy in store layout, advertising and other aspects "we are still relatively generous" For those dealers who want to operate their brand exclusively, they can also vigorously support and help them to realize the monopoly store Bai Yixin said that enterprises will take the sales volume of customers as a reference, and increase the support if they are really developable customers "This is the current practice in the paint industry." Fang Zhijun confirmed this saying, he said: "when enterprises develop distributors, it depends on the strength of customers, and the strong preferential conditions will be better." For example, when a dealer of his company achieved an annual sales volume of tens of millions, he was met by the manager of a brand, who personally went to "dig corners" and "offered the temptation condition of" sending 10 salesmen to assist and matching two vans " Fang Zhijun helped to work out an account: the salary and other costs of each salesman were calculated by 5000 yuan / month, 10 of which were 50000 yuan / month; the costs of two vans were calculated by 50000 yuan / month, which added up to 100000 yuan / month, and 1.2 million yuan / year "It seems like a loss business, but the brand boss is determined to win the battle." In the end, the dealer failed to keep it But as for the preferential terms given to dealers, Bai Yixin also admitted that they only work for one year, and the preferential terms will be lowered from the second year "Not too much support, our enterprise will maintain." "It's written in black and white in contracts, and it's generally done by businesses in the industry," she said Her claim was confirmed by a dealer After the dealers join in, the next thing the enterprise should do is to maintain the dealers Fang Zhijun is traveling around the country recently His task is to provide policy support for dealers all over the country He told reporters that the existing dealers and enterprises will often send people to inspect, contact feelings, and provide some of the latest industry and enterprise information "This not only allows dealers to feel the concern of the enterprise, but also more importantly, the enterprise can grasp the business situation of dealers, so as to deal with them in a timely and appropriate manner." "I believe that every successful enterprise will be well maintained by a dealer." Bai Yixin told reporters that generally speaking, dealers are maintained by salesmen, who will always report the situation of customers to the company If there is any problem, they will hold a meeting to discuss and make the most effective solution based on everyone's opinions "I'm sure our business will not disappoint our customers." Bai Yixin shows full confidence in the maintenance work of the dealer - even though she has been poached a customer Although the "weight" offered by the enterprise is superior enough, even in the mutual competition, the contradiction of the competitors will not be easily accepted by the dealers "Almost every month, salespeople (from other enterprises) come to visit me or call me to see if I want to change my brand
    This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only. This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed description of the concern or complaint, to service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content will be removed immediately.

    Contact Us

    The source of this page with content of products and services is from Internet, which doesn't represent ECHEMI's opinion. If you have any queries, please write to service@echemi.com. It will be replied within 5 days.

    Moreover, if you find any instances of plagiarism from the page, please send email to service@echemi.com with relevant evidence.