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Eight Cases Of Distributors Changing Operation

2008/8/23 14:55:00 19

Case 1: extending into the upstream - Altai buyout business example

At present, buyout operation has become a common practice in the liquor industry.

Undoubtedly, buyout is one of the best ways for liquor dealers.

This way, 8 years ago, the Sichuan Altai company first explored.

During the spring and autumn Wine Festival in Chengdu in 1995, the Altai company (the Logistics Department of the Chengdu military region) and the Wuliangye distillery jointly launched the two brands of Sichuan liquor king and Asian liquor, which officially pioneered the brand buyout operation.

The choice of Altai company is a necessity.

In the early 90s of the last century, many companies in Altai were like some of the distributors of a certain company. The difference was that the Altai company worked together with famous enterprises such as Wuliangye, Jiannanchun, Luzhou Laojiao and Tuopai, and among the distributors of several enterprises, the annual sales volume of Altai was among the best.

One former official of a winery said that at that time, the top three sales of the famous liquor factory in Sichuan were basically controlled by three dealers, two of which were Shanghai Keqiang tobacco group and Beijing sugar and tobacco company, and the other one was Altai company.

It is indeed a glorious and enviable thing to be ranked among the top three dealers in these well-known enterprises, but the Altai company also feels a lot of pain.

The biggest difficulty is the lack of initiative. It is difficult to satisfy the demand for product structure, and the market situation can not be fully grasped.

In the early 90s of last century, our plan color is relatively strong. Some liquor companies still use planned means to supply the dealers. For example, if you enter 100 products of A, you must enter 100 or more products of B products at the same time.

Otherwise, A products will not be provided. Some of the dealers' requests for independent goods are hard to meet, resulting in many opportunities in the market because of the supply factor.

"At that time, we were always troubled by the problem of the supply of the factory. At the same time, the lower dealers also had some misunderstandings. This way of operation, we felt it would be very difficult to make it bigger." Luo Jinquan, chairman of the Altai company, said in an interview with reporters that changing the way of operation was an active adaptation process.

Of course, we should change the way of operation to solve the problem, because the problem of supply was troubled by Altai company at that time, so Luo Jinquan had his own idea of running an independent product and holding the initiative of supply right in his own hands.

Therefore, the prevailing buy-out business concept has been born.

With the idea, Luo Jinquan immediately negotiated with the relevant brewery.

In negotiations with Wuliangye brewery, Wuliangye's idea of opening up quickly brought the two sides to an agreement. Wuliangye is responsible for production, and the Altai company is responsible for product sales. However, Altai must first deposit part of the deposit, and also give the Altai company the product sales task.

The two sides chime in with each other.

According to Luo Jinquan's ideas and requirements, the two brands of Sichuan liquor king and Asian liquor quickly put into production and performed well in the market, thus opening up the curtain of liquor brand buying and selling.

Altai company obviously felt the sweetness of this marketing mode. In the following years, the Altai company successively developed the products of the crown prince, sword sword, alcoholic drink and groom wine with Luzhou Laojiao company, Jiannanchun Group, Xiang Quan Group and Langjiu group.

The most brilliant brilliance is the golden Jiannan liquor jointly launched in 2002 with Jiannanchun Group and Guangdong Ming Sen group.

Jin Jiannan has been on the market for several months and has made several billion sales achievements with his flexible and efficient way of operation.

Recalling the road that had passed, Luo Jinquan seemed quite satisfied: "now, looking back at the previous road, I think the direction is very correct, and it is more suitable for the trend of economic development.

Today, drinks and even cigarettes and other products have adopted this strategy, and we are ahead of them.

More importantly, through buyout operations, we have trained a large number of business backbone and learned more about the industry. "

In fact, the Altai company in the buyout of the road is not smooth sailing, the 2001 Langjiu integration once let Altai companies in trouble.

"It was an accident."

Luo Jinquan then talked about the principle that he was looking for cooperative manufacturers. "To find cooperative factories is definitely to find famous liquor factories, because these enterprises are relatively large in scale, brand awareness and reputation, and the credibility is relatively much better."

There are too many uncertainties in those wineries, which are more serious, and the possibility of small businesses collapsing is greater.

If businesses fail, the probability that buyout businesses will survive is of course small.

Luo Jinquan said that in this way, he could be called the upper line, and he chose to do the upstream business in the product chain of production, supply and marketing.

Luo Jinquan believes that the division of labor will become more and more detailed in the future. Since there are specialized upstream businesses, there will surely be work done in the middle and lower reaches (such as distribution centers), which will be a way out for dealers in the future.

Case two: stretch into the upstream -- an example of an unnamed enterprise buyout business

Wang Yibing, manager of Tianjin Zhen de trading company, has many years of experience in sugar and wine distributors. At present, the company has more than 200 products, which are the total distribution of 13 products.