Table of Contents



Send Your Inquiry Today

Marble Stone Enterprises To Resolve Channel Conflicts Coup

Marble Stone enterprises to resolve channel conflicts coup

Update time: 2017-9-21 9:03:31

At present, China's marble stone industry market size has exceeded 500 billion yuan, with the gradual expansion of the market, what is the industry's most interested topic? The author believes that the channel issue should be in the first place. Because we are in a "channel is king" market channels, problems and conflicts like stone enterprises difficult to get rid of the problem, facing so many channels, business management and marketing personnel in general to cope. This article takes E company as a case to discuss the channel conflict faced by the stone enterprise, and provides the corresponding solution, hoping to bring the reference for the readers.


Channel conflicts faced by E stone company

E company is a well-known marble stone industry and trade enterprises, after more than 20 years of development has grown into a leader in the industry, product quality has been widely recognized in the industry, the sales network throughout the country and some overseas. E company established in the early selection of channels, distributors level is uneven, most are from self-employed to develop small and medium-sized private enterprises, and their E stage the company required distributor qualification far, some still lack sufficient operating funds, qualified professional and technical personnel and sales personnel. Due to objective factors, the company in the initial stage of entering the market, the marketing focus revolves around how to expand the profit and market share, have to choose the qualification of a little difference, but the channel network is middlemen, ignoring the construction and optimization of marketing channels, and the manufacturers Office of the relevant management personnel lack, cause conflicts and the conflict in the channel gradually frequently, has affected the normal operation of the company's business E. These conflicts mainly include:

Responsibility conflict

At the distributor E company, there are many senior partners when they reached a certain scale, the business mind will often change, they do not want to concentrate on sales of E's stone products, new products to push those higher profits and market demand higher, "generation without reason" phenomenon. And these powerful distributors and manufacturers have no time to share market information, market feedback slow progress; those who are willing to strong sales of E brand products distributors, manufacturers limited strength, to reach expectations, in a single as a single case, nature does not have a large gains in the market to expand. E company as a manufacturer, sales and customer service support in place sometimes, CO branding efforts, and the lack of guidance on the distributor in the operation, which greatly affect the trust of partners and suppliers of the whole channel. Such an ambiguous division of responsibilities can easily affect cooperation between the two parties and lead to conflicts.

Price conflict

Stone industry market competition has become white hot, the market focus gradually tilted to the consumer, in order to get more customers, distributors in the sale of products must provide customers with reasonable price after comparison that. Due to the restriction of the brand, production process, raw materials procurement of various factors such as the E, the company's policy is the bottom line, and the distributor always induced by as far as possible to ensure their own firm profits, and often disturb the setting manufacturers price order in the sales process, manufacturers do not strictly enforce the formulation of price strategy. And E company in the formulation of product prices and profit indicators, in order to ensure their own interests, and did not take full account of the long-term win-win situation with strategic partners, and its price policy is difficult to win the approval of distributors. As a result, price conflicts between E companies and distributors often result from inconsistencies in their respective interest points and sales objectives.

Service conflict

For the retail terminal of stone enterprises, the most important job of determining the sales volume is to guarantee the delivery cycle, and timely and prompt delivery of products is an important guarantee to win customer confidence and to seize the market. But some distributors of E company do not accept the funds in advance to stock up. Sometimes they can not fulfill the commitment to the end customers because of the delay in the delivery cycle caused by the weather or the abrupt change of the weather, and the business opportunities will be lost. In warehousing and logistics services above, E hopes to do some of the inventory of products distributors and distributors are prepared; hope E company set up large warehouse in the office, to ensure the supply of inventory at any time, the purpose is to reduce their inventory costs. Both manufacturers and distributors consider their own interests and wish to adopt different ways of dealing with them, thus creating contradictions.


Channel conflict resolution

Manufacturers and distributors to cooperate just like married couple, eyeful are each other's advantages, and network products, market conditions, product sales is smooth, mutually profitable; market competition, products unsalable, lower profits, bilateral relations have been strained, if things go on like this contradictions and conflicts can hardly be avoided. When the problem arises, the two sides must be actively resolved and can not afford to do so.


E company's control strategy for distributors

From the entire channel structure, each channel members are independent economic entities, mostly for their own petty profits consideration, the name of their own small abacus. In order to prevent the distributors from paying attention to their own interests instead of the overall interests of the channels and deviating from the original intention of common profits, the distributors must carry out effective channel management for distributors.

Companies such as E have a certain strength of stone manufacturers, sometimes become a relatively weak one, even if the marketing channel is made by the company to design, but its marketing function and market dominant power is more distribution in the whole channel system, E to achieve the desired goals, we must strengthen the impact on channel members and control:

(1) to avoid relying too much on distributors, we must balance channel strength and maintain a certain number of distributors; avoid forming a dominant phenomenon among channel members. When the strength of a distributor in the channel is too large, the channel structure or strategy will be appropriately adjusted, such as increasing the number of distributors or increasing the support of some small channel members, so as to achieve the purpose of balancing power.

(2) must be led some of the key link of marketing, such as pricing, discount, terminal control, E stone company sales staff need to personally to the terminal to understand the market, sales and consumer contact, large-scale promotional activities and directly participated in the important terminal, timely communication with distributors. This approach may temporarily reduce the overall efficiency of the channel, but will help control distributors and understand the dynamics of the market front line.

(3) the ideal profit space and incentive measures for distributors can make distributors cooperate in accordance with the established goals of the manufacturers. This strategy is the most effective means of control. Should the manufacturer in the factory leaving a space between the price and the terminal retail price; in the promotion and brand promotion, manufacturers need to provide some support for the human to dealers; for good performance, complete annual task of distributors, manufacturers should give rebates, incentives and other off-season discounts; in addition to the money, manufacturers can also be in the customer service support service help, the logistics cost reduction for distributors to consider. In the interest driven by the distributor will not easily betray manufacturers, distributors but sometimes other manufacturers withstand temptation, so E also have to constantly adjust their incentives to control distributors.

(4) using their long-term vision of development to influence distributors. Each enterprise has its own long-term development strategy and vision, although many E stone brand distributors set up not long, but they are also concerned about the credibility of manufacturers and distributors are willing to business philosophy, with a long-term development vision and vision of the enterprise cooperation. So, E, it should be emphasized that the company's operating philosophy in the training of distributors, the distributors are fully aware of the enterprise has considerable economic strength and long-term development goals, so that they have expectations for future cooperation, and I believe that in the near future will be able to achieve win-win goal. As a result, distributors will show enough loyalty to facilitate E's control of the channel.

(5) E company should strengthen the daily management, market development, product sales and other aspects of the distributor's staff training and guidance, and the best to establish the relationship between teachers and students, so as to establish a professional image, use management capabilities and expertise to further control the distributors, to form a closer cooperation.

(6) take out measures to stimulate channel members, so that members of the channel pressure. E company should be based on the distributor's comprehensive strength and cooperative attitude on the assessment, the purpose is to make channel more stable, the specific approach is: to increase efforts to reward good distributors; to hinder the channel development of distributors, the elimination system in case of ineffective communication. This will enable distributors to strengthen cooperation with manufacturers, manufacturers through the competition between distributors to strengthen the control of the channel.

E company by these effects to distributors and control strategy, can effectively stimulate the channel members, to effective control of channel members so that E can ease, do well in the solve channel conflict.


Concrete measures to resolve channel conflicts

The senior managers of stone enterprises need to know in their minds that not all channel conflicts are vicious, and some are benign; some conflicts can be avoided, others are difficult to avoid. The goal of channel conflict management is not to avoid all conflicts, but to curb the emergence of vicious conflicts, make full use of benign conflicts, change the pressure as the driving force, and maintain the health of the channel.

If you want to properly solve the channel conflict between manufacturers and distributors, the first to set up a "business philosophy to stand together through storm and stress, and woe", uphold the principle of mutual trust, long-term cooperation, and ultimately achieve a win-win effect. Manufacturers are the core of the leading channels, the solution is to start from the manufacturers, and then jointly executed by both sides. Specifically, E stone company should solve the channel conflict through the following measures, so as to achieve the channel unimpeded and the effect of resolving contradictions:

(1) to build a channel management system which is composed of stone manufacturers and distributors. E company in the formulation of strategy, often as a channel outside the enterprise resources, as the external factors of product marketing, not included in their marketing strategy. E company ignore this channel and ignore its own responsibility, which results in the conflict between the channel members and the manufacturers, and the contradiction between the manufacturer and the channel members. As we all know, channel members are not a pawn, stone manufacturers as a channel strategy makers should be members of the channel strategy and its own strategy in harmony, in order to achieve co production. Only the integration of interests can solve the vertical conflict of channels, and the status of manufacturers and distributors can be equal.

(2) in the multi-level channel structure, a differential price system is adopted. Vendors can build within the sales network