In general, when the market environment is sluggish, users' purchase decisions will be more cautious. For insurance reasons, most users will choose to shelve the purchase plan; in the buyer's market, users who have more choice will often have more choices. It is inclined to choose large-brand models. Such as Hubei Sanhuan, it is not only low-key, but it is not a big brand ranking among the top. When the market is in a downturn, the days should be even more sad, but this is actually not the case.
At the time of sales of several major truck makers, the company was ranked as a top-notch commercial vehicle company. The sales of Hubei Sanhuan Special Automobile Co., Ltd. unexpectedly showed “contrarian†growth. Why is this? Fang Dewang's reporter went deep into the Third Ring Road to interpret it for you.
Reluctant to cut love to reduce the strain According to Hubei Sanhuan Market Minister Wang Jindong, Hubei Sanhuan's first-half sales increased by 6% year-on-year, becoming one of the few companies in the commercial vehicle industry that has not decreased sales.
Why does the sales of Hubei Sanhuan not decrease? Wang Jindong explained that one of the important factors is that Hubei Sanhuan adopted a series of transformation measures at the end of last year. One of the important measures is to shrink the battle line, reduce the strains, and retreat.
Gao Hongwei, chairman of Hubei Sanhuan, said that there are many strains that can fully meet the individual needs of users. It was once the advantage of Sanhuan. However, with the increase in sales volume, the numerous strains and variety of products have become a drag on the Three Rings—a complex variety that not only increases the difficulty of production management, but also brings inconvenience to sales and service.
After experiencing a decline in sales volume in 2011, the three-ring team made a painful decision and decided to cut varieties and reduce strains. "This is a painful process." Gao Hongwei frankly said, "Products are like their own children, losing some certain distressed. Moreover, in this process, the greatest resistance encountered comes from the sale. Variety of the initial reduction, the most direct sales The effect is that some special orders cannot be infinitely satisfied."
Faced with the pressure of sadness and sales, Sanhuan still insisted on reducing some varieties, and more policies were tilted toward new products.
Gao Hongwei told reporters that after reducing the product variety, the production management and after-sales service levels of Sanhuan have been correspondingly improved. "Moreover, the sales volume has also increased." Wang Jindong told the reporter, "Our current job is to continue to increase the contraction of the product line and gradually reduce the proportion of the previous generation of products until it disappears."
Adjusting the marketing framework to help the contrarian increase In addition to reducing product lines, the transformation of the marketing framework also contributed to sales growth.
Speaking of the marketing transformation, Gao Hongwei said that this is actually something the Three Rings had been planning for a long time ago, but it was not until the off-season sales season in 2011 that it actually started. For marketing transformation, Gao Hongwei spoke of the idea of ​​three rings: “In the past, when supply was in short supply, the marketing company was under pressure from huge sales pressure, and there was no way to do pilots and did not dare to make a transition. But in April and May of last year, mainstream manufacturers also When we didn't feel the market downturn, we already felt the changes in the market. So we decided to make marketing adjustments."
The reporter learned that the previous three-ring was a "universal unified" sales model, namely a marketing head office, responsible for the marketing of all three major strains of Sanhuan products. However, because the three-ring system is more complex, a marketing company manages such a large number of products and regions. With limited energy for market development, many regions have no way to intensively cultivate and waste many opportunities. This has caused Sanhuan to have many gaps in the national market. .
To this end, Sanhuan after research and decision, first compress the product line, change the organizational structure, the previous five major factories reduced to three major factories; Second, change the marketing structure, the sales sink, block concentration, in order to more effectively manage the country More than 330 dealer outlets.
“We propose the '1+3' structure, '1' means marketing company as the main body, '3' means heavy vehicle factory, automobile factory and special vehicle factory. Marketing company continues to be responsible for the marketing of the three major strains in advantageous regions. The three major factories are responsible for marketing in some previously disadvantaged areas.†Gao Hongwei further pointed out: “Under the circumstances that the marketing company's business remains basically the same, the three major factories have increased sales power in some areas in addition to production rights. The initiative of the factory has been increased. Since the three factories can directly contact users, the path of product improvement is greatly shortened, and the increase in sales volume can also increase the factory's timely response capability."
Regarding the adjustment at the end of last year, Gao Hongwei thought that the preliminary results had been expected and “has already been reflected in overall salesâ€.
The sales sinking stimulates healthy competition. It is understood that under the guidance of the “1+3†framework, Sanhuan will redistribute the four major sales regions of Jiangnan, Jiangbei, Southwest, and Northwest, and will sink some of the sales regions to three major factories. Jiangnan is mainly responsible for automobile plants, mainly medium-sized vehicles; Jiangbei market is responsible for heavy-duty vehicles, mainly heavy trucks; southwest and northwest two major markets, responsible by the marketing company; special vehicle manufacturers also have their franchised areas.
Regarding the question of why sales should sink, Gao Hongwei said: “Products must be naturally connected with the market and reduce the feedback level of the market. This is especially important in times of market difficulties and will help us deeper into the market.â€
Initially, many people did not understand the pattern of sales sinking. Gao Hongwei repeatedly explained: “We have always advocated that on the basis of securing resources, the internal competition structure is a typical measure. It will not only cause conflicts in sales, but will also create a good competitive atmosphere. Drive the sales of the entire company to make up for the lack of marketing companies in disadvantaged areas."
After the implementation of sales subsidence, Sanhuan has gradually increased its sales volume. The reason is that Tian Yeguang, deputy director of Hubei Sanhuan Special Purpose Vehicle Factory, pointed out: "Saving sales have stimulated the enthusiasm of the factory sales staff. They must go deep into the market to discover the needs of users and quickly respond to any problems they find. To meet user needs."
Tian Yeguang also told reporters that after the factory had sales rights in certain regions, it took great efforts in the market. For example, in some parts of Jiangnan, before the three-ring product had a poor foundation, marketing companies were more willing to devote their energy to the relatively strong southwest and northwest regions. Now, after the decentralization of sales power, for the factory, more sales means more production, which means that workers can get higher income, so the factory has also invested great energy in the weak market assigned to them. “We have worked hard in this part of the market, and we have also received corresponding returns. The sales of key markets have increased significantly this year, and the employees’ income is also high.†It is precisely because of this incentive mechanism that the marketing companies originally did not attach importance to the disadvantages. The area has been intensively cultivated. This also explains why the three rings can rise against the trend.
Exploring the transformation of the transformation and upgrading mode of the sales structure is, in a sense, a pilot for transformation.
In fact, the three-ring “1+3†architecture is similar to a factory that has the power to produce and sell. However, this is somewhat different from the form of a pure division. Because, in the form of the Marketing Division, each division still retains the sales rights in the major regions. This form of marketing of Tricyclic is also exploring in practice. In the end, what kind of form is more suitable for the tricyclic, but also through different adjustments and integration.
Gao Hongwei said: "Our transformation is still in an exploratory stage and it is not completely stereotyped. We must explore the path that best suits our development in the course of continuous practice."
In addition, it is understood that Hubei Sanhuan will also establish a marketing and R&D center in Wuhan. At present, the R&D center in Wuhan has been initially formed. Some personnel and hardware facilities are already in place. It is expected that the preliminary work will begin in November. As Wuhan has a superior location advantage, this provides greater convenience for attracting high-end R&D and marketing talents. At the same time, the marketing center was built in Wuhan, making use of its traffic advantage in Kyushu. It is also convenient for users to negotiate and purchase.
In this era of increasingly fierce market competition, the Third Ring needs to be changed; for this old company with decades of history, the Third Ring is changing. Through this in-depth interview, the reporter saw that this heavy-duty card company hidden under the prestige of the mainstream brand is accumulating power and distributing vitality. And all this comes from change.
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