A recession the product back from the dead.docVIP

 PAGE \* MERGEFORMAT 14 A recession the product back from the dead Zhoukou area in Henan Province from 97 onwards has been a strength of G’s market, the market for 8 more than 20 million in annual sales, the leading product A wine is 25 yuan occupy the local retail price of the most popular share. Since early 2005, due to various reasons, the products began to enter a recession period: 2004 Zhoukou region A wine 13.78 million were sold in 2005, sell only 7.49 million. To reverse the slide Zhoukou area, in G, arranged for the author to lead a new team into the Zhoukou, from January 2006 onwards Zhoukou A wine region to restore and revitalize. 1, after full market research, analysis A wine region in the Zhoukou advantages and disadvantages: (A), disadvantages: 1, price transparency, distributors, retailers, the profit on the low side terminal. A wine distributor for the early price of 250 yuan / piece, the distributor for the end-price of 252 Yuan / piece, the retail prices of the terminal is only 270 yuan / pieces. Due to low profits, distributors and terminal operators do not actively sell or even display, only the consumer not only non-bought-sold. 2, distribution channels chaos. Pre-dealers in the urban areas and depends mainly on distribution of each county-level cities, and the development of each market are a few distributors, the profit cut prices when competition among distributors of the market, until reduced to no profits, and everyone with the negative sales. 3, sales promotion based mainly lower prices, leading to wholesale, end-year decline in retail prices. A wine distributor in 2000 for the price of 330 yuan / piece, terminal retail price of 360 yuan / piece, and later the past few years are mostly of lower prices through the annual 20 yuan / piece a simple way to extend the product life cycle, and By 2005, the factory, dealers, distributors can no longer profit margins down, there will be no terminal operators in their marketing of the space