You are here: Home / News / The market forces host companies and distribution channels to jointly build competitive advantages

The market forces host companies and distribution channels to jointly build competitive advantages

Views: 2     Author: PEAK     Publish Time: 2023-06-29      Origin: Nongjitong

The switch of national fourth product has accelerated the pace of development of mid to high-end agricultural machinery products in China, promoting a new round of structural transformation of the agricultural machinery industry. For the agricultural machinery distribution channels, the upgrading and upgrading of the fourth main engine products in China is facing an opportunity period of collaborative layout and innovative development with agricultural machinery enterprises.

1、 Host companies and distribution channels actively respond to competitive risks

At present, with the mass listing of national four products, it is more necessary to innovate and change the distribution channels, and effectively play the role of bridgehead in marketing. We should not only be highly alert to the "black swan" event of product quality, but also guard against the "gray rhinoceros" event of service response, and more importantly, eliminate the "Great white shark" event of insufficient distribution capacity, and strive to create a highly competitive channel Moat to maintain the steady development of the enterprise. Leading enterprises and leading enterprises have strengthened the coordination of software and hardware development, reflecting the differentiated advantages of their products, preparing for Zhouzhi's services, and conducting multi batch, multi-dimensional, and long-term transformation training for the national fourth product series, improving their competitiveness. Most enterprises effectively enhance their publicity and promotion efforts, continuously strengthen product exhibitions, product experiences, and field display activities, convey product value, and meet user needs. Constantly enhance brand awareness, formulate brand development strategies, establish and improve the Brand management system, increase investment in brand resources, pay attention to brand maintenance, form user care, promote enterprises to further enhance their ability to compete in the value chain, and effectively mitigate and mitigate some competitive risks.

2、 Collaborative efforts between supply and sales to build competitive advantages

Market competition, channel is king. In recent years, with the steady development of the agricultural machinery industry, the pace of distribution channel construction has been continuously accelerating. Currently, China has nearly 10000 agricultural machinery enterprises and more than 20000 circulation enterprises, and has formed a complete operating system for mainframe manufacturing, component manufacturing, product sales and services. This has improved the development capacity of domestic independent research and development, production, and marketing, and basically formed a smooth supply and sales system. With the continuous improvement of the supply chain level and industrial competitiveness of China's agricultural machinery manufacturing industry, the industrial system continues to improve, providing source vitality for the healthy development of agricultural machinery channels. In terms of improving channel management capabilities, leading agricultural machinery enterprises and distribution channels continue to upgrade their marketing models, strengthen customer management, carry out marketing activities, actively implement terminal interception, and seize opportunities for user demand. At the same time, the collaborative implementation of channel resource integration and capacity building by manufacturers, as well as the upgrading of channel networks, has effectively promoted the collaboration between the supply chain and production end. In terms of hardware, it has initially integrated into the online and offline management mode, continuously accelerating the development pace of exclusive stores, brand stores, and flagship stores, and promoting hierarchical management of channels. Continuously increasing investment in online resources and forming a collaborative development pattern both online and offline. In terms of software, establish and improve management and institutional processes, carry out mobile marketing models, and comprehensively improve channel work efficiency and business objectives. The general customer management capabilities of enterprises have been correspondingly enhanced, continuously increasing customer stickiness.

From the operating trend of the agricultural machinery market from January to April, some regions' fourth main engine products have experienced a phased bottoming out and downward adjustment of about 40% year-on-year. Focusing on distribution channels, most of the nearly 3600 dealers in corn harvest, over 3300 dealers in rice harvest, and nearly 1600 dealers in wheat harvest have not been able to achieve their profit targets. The agricultural machinery industry itself is a low-profit industry, and some host enterprises and distribution channels are beginning to experience signs of operational difficulties. This change requires joint response and close cooperation between host companies and distribution channels, fully recognizing that this is a cyclical threshold that must be overcome when entering the high-quality stage. It is necessary to not only see the future development prospects and opportunities, but also assess the current risks faced. To find commonalities in needs from individuality, tendencies in qualities from the beginning, and to see the essence through phenomena, forming a regular understanding. Grasp the macro environment, study the specific micro status quo, make accurate and clear decisions, and make Porter's generic strategies concrete and feasible.

3、 Accurate response reflects the differentiation advantages of host enterprises

Those who wade in shallow waters get fish and shrimp, while those who enter deep waters get dragons. Agricultural machinery enterprises face different tasks at each stage. The more fully they adapt to the laws of market competition, the more prepared their customers are to meet their needs, and there is hope of obtaining corresponding competitive advantages. Based on market changes, dealer demands, user and personal needs, it is necessary to establish one's own positioning and development support as soon as possible, and collaborate with distribution channels to jointly enhance development capabilities and levels.

One is to clarify the profit positioning. Profitability is the foundation of a company's existence and the key to sustainable development. Only with profit support can we ensure the continuous investment and efficient operation of the value chain in research and development, manufacturing, sales, and other links, and continuously provide cost-effective products to the market. The market is like a battlefield, without absolute allies, only with eternal interests. Especially during the critical period of industrial upgrading, it is necessary to highlight the profitability of products, timely weaken and exit products with lower convenience, and form a pattern of profitable product support. Facing distribution channels and end users, agricultural machinery enterprises need to consolidate a win-win foundation from multiple aspects such as product quality, market development, and after-sales service, comprehensively consider the interests and demands of each other, and enhance the cohesion of competition.

The second is to consolidate the two supports. As a supplier, in order to form the initial competitiveness of product launch, host enterprises must provide differentiated high-quality products and provide dual support for both products and services. Once a product is launched and engaged in busy operations, the product advantages and disadvantages among various enterprises will be passed down through user word-of-mouth, forming a new product position once again. This requires host companies to benchmark their main competitors and users' actual needs throughout the entire process of product design, manufacturing, verification, and launch. Based on a high-quality strategy, they should comprehensively eliminate product pain points, ensure that each product is of qualified quality, and quickly form a differentiated competitive advantage for product leaders. Product manufacturing and product services are different conceptual categories, and new product launches face many service demands. Agricultural machinery enterprises and distribution channels should reserve corresponding spare parts and emergency turnover vehicles in advance, implement extensive and multi-level service training, and improve after-sales maintenance and emergency fault handling capabilities. Powerful enterprises should implement after-sales service to ensure comprehensive sales

4、 Utilize circulation advantages to enhance competitiveness

Large enterprises have the advantages of large enterprises, and small and medium-sized enterprises have the highlights of small and medium-sized enterprises. The circulation channel should not only respond well to market risks, but also implement a pressure based model breakthrough. As long as measures are appropriate and competition is strong, any enterprise will continuously consolidate its competitive advantages and strive to become a leader in regional or segmented tracks.

Firstly, we must adhere to a strong channel coordination and specialized response. For powerful distribution channels, it is necessary to fully combine the goals of enterprise channel layout, focus on the development dimensions of whether there are blank areas, whether weak areas are good, whether advantageous areas are specialized or not, and whether strong areas are strong or not. Centering on phased goals, implement optimization and integration of channels within the region, and build a channel network based on one's own strength that is coordinated with primary and secondary networks, synchronized online and offline, and continuously coordinated with manufacturers, continuously improving regional coverage The market share and performance contribution have formed a ladder development situation of both becoming stronger and larger, as well as becoming more refined and specialized.

The second is to effectively improve team management and control capabilities. Strengthen the training of marketing teams and continuously improve the basic skills and channel management capabilities of digital marketing. Master the basic functions and performance of the product, be able to explore product highlights, and collaborate with manufacturers to continuously eliminate product pain points. Achieve both physical and mental engagement, identify the "ants" in demand, and catch incremental "live fish". Possess multi-dimensional cross analysis, precise insight into industry development trends, major competitor strategies, potential segmented markets, and core user needs, and other coping skills. Seize the needs of agricultural giants, family farms, professional cooperatives, key customers, and comprehensively meet the requirements of online and offline collaborative management. Effectively improving team execution ability can implement the competitive needs of agricultural machinery enterprises and distribution channels into market planning, product promotion, and other competitions.

The third is to build a mechanism for channel transformation and promote collaborative efforts. Terminal channels have become the main carrier for enterprises to increase sales and create advantages. Strengthening the terminal construction of distribution channels requires adaptive transformation and self repair in terms of business objectives, sales priorities, and other aspects based on market laws and competitive characteristics, enriching competitive means, and forming an endogenous mechanism for channel development. Optimize and collaborate with host enterprises to achieve a transformation from a highly profitable specialized product, a competitive business model, and a focus on sales to profitability. Effectively resist and avoid marketing risks such as declining sales, weakened management, and operational losses during the transformation, and comprehensively enhance survival and development capabilities.

The fourth is to reshape the construction of the marketing system and restructure its advantages. In reality, only some distribution channels have established management systems and processes. We need to accelerate the formation of a marketing system mechanism with sales as the leader, customer relationship management, product improvement suggestions, after-sales service, and other hinge interactions, and use the overall resources and capabilities of agricultural machinery enterprises and distribution channels to cope with competition and achieve development. Establish a benchmarking mechanism to improve one's market detection, accurate judgment, and precise sales capabilities. Strengthen institutional support, continuously optimize management and business processes. Transform from passive management of terminal demand to active management of terminal services, improve the fine management ability of frontline marketing personnel in enterprises, and improve marketing responsiveness. Establish a market response mechanism, form a green channel for product sales, improvement, and service, and reduce corresponding business risks. Comprehensively strengthen customer relationship management, increase customer stickiness, continuously expand customer base, form a strong perception and interactive atmosphere, and effectively improve one's brand influence and product orientation.

Fifth, increase online resource investment and two-way layout. Actively integrating online and offline resource sharing between host enterprises and distribution channels, and continuously improving a highly collaborative marketing system with enterprise digitization. Based on the full life cycle value management of customers, real-time collection and secure sharing of panoramic data, and the trend of reflecting the full life cycle value of products, we will increase the promotion, promotion, and application skills of digital carriers, empower market research, product development, product promotion, customer management, sales channels, transaction management, and after-sales service, and be able to accurately accept orders and transactions online. We will continuously improve our digital marketing capabilities in multiple dimensions, Seize the new round of market dividends brought by online and offline collaboration.

He who has foresight has no worries near. Multiple factors have caused the market to brake sharply, leading to a cliff like decline in some leading products. In the future, it will be a norm for agricultural machinery enterprises and distribution channels to choose between two directions. It is not ruled out that there may be some agricultural machinery enterprises and distributors that do not adapt to market competition in the later stage of transformation or exit. Only by doing better oneself, optimizing resources more abundant, and having higher adaptability, can we form a sound marketing system and stable competitiveness, and have more say in market competition.


Weifang bene-farm

Weifang bene-farm International Trade Co., Ltd. is mainly engaged in the business of agricultural machinery, engineering machinery and related parts.

News & Events

  • Mar
    05
    Strive To Live Well in 2025
    Strive to live well in 2025Chinese agricultural machinery has gone through 2024 in agony, it is very difficult, and we know the ups and downs! ‍‍‍‍‍This kind of suffering is not only reflected in the sluggish market, but also in the serious competition and disorder within the industry. Behind this i
  • Jul
    11
    704 Third Place: Lovol Leopard M704-2S (G4) Tractor
    Lovol Leopard M704-2S (G4) Tractor Product Introduction: Small achievements can do anythingMainly used for rotary tillage, sowing, field management, transportation and other operations.◆ Wide range of selectable wheelbase, with the narrowest wheelbase of 900mm and the widest wheelbase of 1300mm, mee
  • Nov
    19
    The Most Likely Vehicle for Our Country To Catch Up with Is This New Energy Tractor
    There is a significant gap in tractor technology between China and developed countries abroad. Can China still catch up? Is there a possibility of overtaking on curves? What technology or type of new energy tractor can be used to catch up? This time, let's talk about this issue based on personal cog
​Copyright © Weifang bene-farm International Trade Co., Ltd  All Rights Reserved. Site Map