Rebirth of the Wild Age

"The Carbonated Beverage Market Resurrects, Let the Four Kingdoms Fight to See Who Can Win"!

This is the headline on the front page of the Business Times in mid-October this year.

Although Jianlibao is not a cola, it is also a carbonated drink. Pepsi is engaged in cash discount channel promotions. The most anxious thing is not Coca-Cola and Very Coke, but Jianlibao!

The person in charge of sales in Xikang Province rushed back to the headquarters and shouted at Li Jingwei: "Mr. Li, either channel cash rebates or increase channel discounts, the market in Xikang Province is about to be lost!"

"The company has no money, and cash rebates are impossible. Let's increase the distribution discount rate." Li Jingwei said helplessly.

Shi Yuzhu is having a headache because of the Giant Building, and Li Jingwei is also having a headache because of the Jianlibao Building.

In order to build the Jianlibao Building, Li Jingwei spent too much money and was unable to invest more in the market. Even if Jianlibao did not fall out with the local government because of the construction of the building (wanting to relocate the headquarters), Jianlibao would be flanked by competitors because of this building, and retreated step by step.

So, why are these entrepreneurs keen on building buildings?

Fudan, campus.

Song Weiyang was holding his mobile phone, listening to the report from sales manager Zhang Guodong: "Pepsi's channel incentives have been adjusted again. Not only do they get cash rebates, but the more they sell, the more they get back. There is also a monthly deduction and annual deduction. Seasonal deduction was added during the period. The rebate of monthly deduction is fixed, and the quarterly deduction and annual deduction are increased proportionally. They also divide the market into off-season and peak season. For example, if a dealer sells 500 pieces per quarter in the off-season, the discount rebate is 2%, and 1% in peak season. I roughly calculated that if a distributor sells 50,000 Coca-Cola pieces throughout the year, the monthly discount, quarterly discount and annual discount can be combined to get a maximum discount rebate of 8%, and all Pay in cash!"

"Follow up immediately and increase the discount rate of dealers. The maximum superimposed rebate is set at 10%! Of course, it is not cash, but goods deduction." Song Weiyang said.

"Okay, I'll do it right away, Mr. Yang thinks so too." Zhang Guodong hung up the phone.

Song Weiyang's "Key Clients and 101 Plan" cannot be fully rolled out immediately, without the energy and money. We can only choose big cities first, as well as cities with factories and surrounding areas. The initial estimated time of the whole plan is five years.

During this period, the distributors cannot be thrown away, at most the regional agents will be cancelled. Even if the new channel has been established, it is impossible to completely break up with the dealer, and it will be coaxed for the time being and always.

In the golden autumn of October, it has already entered the off-season of beverage sales, but the flames of war in China's carbonated beverage market suddenly ignited.

The core battlefield is not Beijing, Shanghai, Guangzhou, Shenzhen, nor any big city in North China and South China, but Xikang Province (including the mountain city), the home of Xifeng Company.

After Pepsi acquired Tianfu Cola in a joint venture, it inherited Tianfu Cola's sales channels, among which Xikang Province has the most complete channels, because Xikang Province is also the base of Tianfu Cola.

At the same time, Jianlibao has been entrenched in Xikang Province for eight years and is the leader in the carbonated beverage market in Xikang Province. Coca-Cola also has a bottling plant in Rongcheng, relying on state-run channels for rapid development. Xifeng Company also attaches great importance to the market in Xikang Province, after all, the old nest cannot be robbed by others.

What's the situation now?

Very Coke and Pepsi are making efforts at the same time. While attacking Coca-Cola, they are more competing with Jianlibao for the market. Who will let Jianlibao firmly occupy the leading position in Xikang Province?

Yang Xin concentrated the company's sales elite and public relations team on Xikang Province. In less than a month, it signed direct supply contracts with the top 20 large supermarkets and shopping malls in the province, and set up special Coca-Cola counters, with a combination of superimposed rebates, prize promotions and festival promotions, and sold them all together. The bottle pays for a bottle, and quickly occupied the channels of top retail organizations.

Promotional activities make consumers actively buy, and superimposed rebates allow shopping malls and supermarkets to sell more, and the more rebates. This caused shopping malls and supermarkets to go crazy, and the clerks frantically promoted Coca-Cola and reduced the purchase of other carbonated drinks on a large scale.

Throughout the autumn, consumers in Xikang Province bought Coca-Cola in large shopping malls and supermarkets. The retail price has dropped to 2 yuan, and there is a high chance of buying another bottle, another bottle, and another bottle. And every time a bottle of Coke is sold, the store can get a cumulative rebate of 5 cents to 20 cents. Note that the money is not business income, but sales rebates!

The store distributes half of the rebates to the salesperson, can the salesperson not actively promote it?

Some shopping malls and supermarkets simply put piles of Xifeng Coke at the door. The old lady who came to buy eggs might be fooled into buying a few bottles of Coke!

Xifeng Company is also frantically developing regional partners, and cooperates with stores in major universities and middle schools. Distributors are also eager to sell goods under the stimulation of superimposed rebates and promotional activities. Some distributors and regional partners take the initiative to explore the township market, sharing rebates layer by layer, and selling Coca-Cola is as crazy as engaging in pyramid schemes.

PepsiCo's cash rebate strategy is also supported by dealers. Many distributors of Coca-Cola and Jianlibao, even very cola distributors, have chosen to switch to Pepsi.

Although Jianlibao has increased its rebates, it cannot compete with Pepsi's cash rebates, nor can it compete with Very Coke's loss-making promotions.

As for Coca-Cola, it is still "on hold" and has no reaction at all.

In just one month, the carbonated beverage market in Xikang Province has changed drastically. The market shares are: Coke (28.2%), Pepsi (25.7%), Jianlibao (20.5%), Coca-Cola (15.5%), Sprite (5.3%) %), Fanta (2.3%), Hedy (1.6%), Mirinda (0.7%), other beverages (0.2%).

As for the Coke market share, it becomes: Very Coke (40.7%), Pepsi (36.9%), Coca-Cola (22.3%), and other beverages (less than 0.1%).

For those small and medium-sized carbonated beverage companies, Xikang Province has entered hell mode, with no living space at all, and a large area has been squeezed to death.

A reporter from the "Economic Daily" wrote: "It's hard to imagine that this is the off-season for beverage sales. A bottle of Coke that costs 2.5 yuan in the capital can be bought for 1.8 yuan in Xikang Province, and there are people who win several bottles of Coke in a row." Opportunity. In this carbonated beverage war, Xikang Province is the core battlefield, with Coca-Cola and Pepsi as the main combatants, and Jianlibao and Coca-Cola, which rank first and second in the country, are supporting roles..."

Such is the power of the cash channel stimulus. Historically, Pepsi has persisted for about three years, and it has completely driven Jianlibao and Coca-Cola out of Xikang Province. At that time, if you wanted to buy a bottle of Coca-Cola in Xikang Province, you probably had to drive for several hours in Rongcheng, the capital of the province, because the dealers didn't buy it, and of course the store didn't have it.

It was not until Coca-Cola replaced its headquarters with a new CEO, and also replaced a new CEO in China, that it slowly regained its market share by relying on the factory direct sales network.

As for Jianlibao, it has since disappeared in Xikang Province.

Xifeng does not have so much money to spend on cash rebate incentives, so it can only engage in crazy promotions and increase sales rebates, and then take advantage of the advantages of fighting in the old nest to meet the challenge with a sales strategy that barely loses money.

Xifeng seems to have won, and Coca-Cola has a 40.7% share of the province's cola market. But it's very dangerous. After all, we can't engage in prize promotions for a long time, and festival promotions don't come every day. Only when the "important customers and 101 plan" is basically realized in Xikang Province and the channel sinks, can we get rid of the threat of Pepsi-Cola.

The real profit is only the market share. If Coca-Cola and Pepsi do this, it is estimated that Coca-Cola will be completely driven out of Xikang next summer.