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Depth distribution is just a tool


As a fast moving consumer goods, product gross margin is not to support the depth of the costs, even if some well-known brand is relying on distributors to do the market.
enable enterprises to control the depth of distribution channels, although, in marketing, price control and so have a great autonomy, can more effectively control the market. But difficult to overcome and a lot of problems, simple to develop the depth of the market expectation of the final result was worth the candle. So the depth distribution can only be used as a tool, after we covered up with, to avoid becoming their burden.
few questions about the depth distribution are:
1, the high cost of the first phase of the depth distribution
input cost is quite high, and post-maintenance costs are also a considerable expenditure Unless you can guarantee profits and sales of single products. So, in general, only enough to power companies and industry profit margins will be enough to adopt this approach.
profit self terminal in the state, especially for fast moving consumer goods industry, coupled with the oversupply of the market environment, to achieve break-even point is not a simple matter. These will bring to the enterprise potential crisis.
2, channel conflict. Practice has affected the depth distribution to other dealers to survive, the conflict is rooted in competition for business and reseller channels, control of the terminal, leading to the outbreak of panic channel. Therefore, we join together against the companies. This conflict is irreconcilable, because there is interest involved in it, self-built terminal is in danger.
business a little careless, not handled properly the relationship between channels, or an attempt to replace the original depth distribution channel model, channel conflict is raised continuously small and large channels may lead to shock. In this case, the gun is not externally, but internally consistent, so instead have civil strife.
3, is difficult to rapidly increase sales. Stronger than the dealers think they do, as long as the depth distribution, we will be a substantial increase in sales, often just wishful, these dealers through a long period of network construction and accumulation, promote new products or hundreds of times the. And business people to build channels and terminals, and terminals must build a relationship of trust and cooperation, this is not achieved overnight to complete. But in fact many companies spend a lot of costs in the depth distribution, the sales increase is very limited, companies are doing very tired.
4, on the company's management has put forward higher requirements, depth distribution, in addition to the rapid expansion of workforce, management more difficult than, for greater operational capacity. All these factors together, the case is too large flaws, but is the loss of business, loss of the market, some fat people. How can the trend
their advantages and avoid its harmful effects. As a channel to a depth of distribution, market development as an important business tool, is a very powerful weapon. If used properly, can play a multiplier effect.
depth distribution has the following effect:
one against competing brands. Spokesman for the local competition is the local distributor brand, companies can concentrate on the fight against these dealers to compete for the core market of these distributors, dealers can not be the strength of another big fight with the company, can quickly bear fruit.
Points to note:
1, to work closely with the dealers and do one's own common attack, to avoid the tone of the singing, concentrating not together.
2, over the end to snatch one's own dealers as prizes to encourage dealers forge one's own initiative,[link widoczny dla zalogowanych], to promote their products.
3, this scenario can only be short term, not lasting, will have to avoid civil strife and conflicts of interest.

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