If you can't be a "strong dragon", you can be a "local snake"

Global SourcesUpdated on 2023/12/01

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The "Matthew Effect" is well known, and the concept of "the stronger is stronger, the winner takes all" is even more deeply rooted in the hearts of the people. "Being stronger and bigger" and "running in all directions" have become the dreams of every entrepreneur.

The reality, however, is that some businesses grow strong in their dreams, and some businesses die in their dreams.

The powerful are like Haier, and the perishing are like Qin Chi. As the "weak" in the market, small and medium-sized enterprises cannot expect to have the same favorable time and place as Haier, but they can avoid becoming the "mud-footed giant" like Qinchi.

The possible choice is, if you can't be a "strong dragon", you can be a "local snake".

"Ditou Snake" consciously practiced the business ideal of "hiding in small buildings and becoming unified". "Ditou Snake" is good at "using its strengths to attack the enemy's shortcomings", and "Ditou Snake" guards its own one-third of an acre of land "deeply" Dig a hole and store up a lot of grain." The "earth snake" is very patient and has not much coveted, but the harvest has never been much.

One of the survival skills of "the local snake" - the channel is king

Nowadays, the terminal has become the forefront and focus of the market confrontation. This is the era when the channel is king, and to seize the channel is to occupy the market high ground. Channels, as the link to realize the "thrilling jump" of brands from enterprises to consumers, will directly determine how far, how fast, and how long a company's products can run. It is also a key factor in determining the success of brand communication and building brand power. .

However, small and medium-sized enterprises do not have the strength and do not need to build their own marketing networks like big brands. They can rely on local distributors and agents to engage in product sales. According to their own reality, SMEs should adopt exclusive channel policy, cooperate with dealers, and control the market.

Serjin Beer has been working in only one Fujian Province and half Jiangxi Province, but in this narrow position, it has concentrated all its advantageous resources to fight the channel battle, consolidating its position as a "snake in the field". The current production and sales of Sedrin beer accounts for 40% of the total in Fujian.

Sergen's channel strategy consists of three parts, one is the channel "drip irrigation" strategy, that is, to focus on creating a model market, through the demonstration effect of the model market, to point to the surface; the second is the channel "bundling" strategy, Xuejin advocates and distributes The policy of profit sharing and risk sharing among dealers, train dealers to ask for resources from the market, not from manufacturers; the third is the channel control strategy, that is, strictly prohibit the behavior of smuggling goods, and strictly prohibit dealers and the second batch of other brands of the same grade. , while strengthening emotional investment and training.

The Survival Skill of "Local Snake" - District City Marketing

Small and medium-sized enterprises that are committed to becoming a "local snake" must adopt a regional and urban marketing strategy if they want to rely on the local market to develop Show and become a local regional brand.

Through regional marketing, small and medium-sized enterprises can concentrate their superior forces and carry out market construction and promotion activities in local areas, thereby making a difference. Although big brands have the strength to traverse the country, they cannot dominate every region, and will inevitably leave some market gaps or weaknesses. And small and medium-sized brands can take advantage of this to expand the influence of their own brands.

Through regional marketing, small and medium-sized enterprises can obtain support from channel providers and the government. Small and medium-sized enterprises are one of the main tax sources of the local government. For their own GDP and local popularity, local governments are more protective and supportive of local small and medium-sized enterprises. In addition, although large-scale dealers have expanded rapidly in recent years, after all, the growth time Not long, in the urban market need to rely on local small and medium brands.

The Survival Skill of "The Snake"——Competitive Advantage

Lenovo is firmly in the top position of the domestic computer industry, and it is extremely heroic, but in Hubei, it is blocked by a little brother named Blue Star.

Bluestar Computer is known as the "King of IT in Hubei". Tao Zhenyue, the head of Bluestar, said proudly: "In the Hubei market, Bluestar provides solutions consisting of three major businesses: PC, system integration and software. From this point of view, Bluestar has no competitors in Hubei."

Tao Zhenyue's confidence is well-founded.

In 1997, Bluestar set up branches in Yichang, Jingzhou, Xiangfan and Hankou at a rate of one company every two months. Bluestar's sales network covered almost the entire Hubei Province. In a typical "provincial capital economy", customers from all regions come to Wuhan to buy computers from various brands. Bluestar set up a branch in Yichang and built a "flood control dam", which stopped Yichang customers in Yichang, and one family took all. Although some customers of the Wuhan head office will be diverted, the total number of customers in the province has increased. This further established Bluestar's unshakable dominance in Hubei.

The example of Blue Star tells us that as a "local snake", don't be bigger than "Qianglong", you should compare people with people in the right place. Tail wagging.

As a "local snake", we must make good use of three location advantages. The first is the time advantage of judging the situation, that is, grasping the timing. Local enterprises often have a more profound and systematic understanding of the local economic status and development stage, and can control costs and reduce risks when they seize the opportunity to enter the market. The second is the location advantage of rooting in the ground. The location advantage refers to the development advantage brought by the superiority of the geographical environment of an enterprise. Local companies have a far better understanding of location advantages than foreign companies, and are better at turning location advantages into their own comparative advantages. The third is the concept advantage of local originality, that is, thinking about problems from the standpoint of China, and using the systematic concept of oriental culture to solve problems, rather than simply pursuing synchronization and integration with the world.

The author is editor of the CEConline website.

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