On the model market theory of small and medium-siz

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Talk about the "model market" theory of small and medium-sized paint enterprises

talk about the "model market" theory of small and medium-sized paint enterprises

November 09, 2009

[China paint information] when it comes to paint enterprises, people will first think of Nippon and Dulux, two first-line brand products. You know that in today's paint market in China, there are more than 7000 paint enterprises, of which small and medium-sized paint enterprises occupy a large market share, And how can the current situation of the coating industry with Chinese characteristics become bigger and stronger is also a problem worth pondering by coating professionals

while the market is changing and consumption is upgrading, you can't help but be a brand. To achieve sustainable development, small and medium-sized enterprises must unconditionally take the road of branding. In recent years, China's small and medium-sized enterprises have made attempts again and again, experienced failures again and again, one after another, which is spectacular. Over time, a pessimistic so-called "wisdom" began to circulate in the market - "don't be a brand and die, be a brand and die." The lesser of the two evils is to wait for death, so most small and medium-sized enterprises choose to give up

whether to be a brand or not is fundamentally a long-term strategic issue, which has little impact on the enterprise in the short term. What's more, China is unusually large. Dragons have their way, snakes have their way. Those small and medium-sized enterprises that do low-cost dumping, fight a price war, earn small profits but sell fast, and win by volume, at least now seem to be living quite "moist". On the contrary, those small and medium-sized enterprises that claim to devote resources to brand, on the contrary, are struggling, short of funds, and living in a tight life. For a time, Chinese small and medium-sized enterprises have hung up the "brand exemption card", and the atmosphere gradually spread across the country, becoming increasingly powerful. The creation of leading brands by Chinese small and medium-sized enterprises has added an ideological "hoop curse"

in the long run, Chinese brands and Chinese small and medium-sized enterprises are in danger

however, things in the world often depend on good and bad. Although China's small and medium-sized enterprises have no money, no people, no experience, no resources and no opportunities, it cannot be asserted that leading brands are only the patents of multinational companies (or large companies), and small and medium-sized enterprises cannot and cannot create their own leading brands. You know, those multinational companies (or large companies) have also grown up step by step from scratch. Although the environment at that time was better than the current situation, competition was small, and demand exceeded supply, the overall market content was also small at that time. At that time, at this time, as long as China's small and medium-sized enterprises pay a little attention, they will find that there are also extensive business opportunities at the current stage, and small and medium-sized enterprises still have many opportunities to create their own leading brands. Here, the key is to see how to think and do, whether we can weigh the pros and cons, whether we can avoid the heavy ones, and whether we can activate resources

"model market" theory is a theoretical tool to guide small and medium-sized enterprises to create their own leading brands

the so-called "model market" theory refers to that enterprises concentrate advantageous resources, take the lead in establishing their own model market in the competitive regional market, obtain the opportunity of survival of the detailed analysis of the accuracy of spring torsion testing machine by StarTech, and then use the "model market" to accumulate strength, train teams, summarize experience, wait for opportunities, and gradually expand the scope of the "model market" field, Then seize the opportunity to launch a large-scale market campaign, open up the connection between "model markets", turn passivity into initiative, change defense into attack, and finally achieve national victory and create a national leading brand

first, the core of the "model market" theory

the core of the "model market" theory is to "gain competitive advantage in the field of 'model market' and become a leading brand". The market region chosen by small and medium-sized enterprises can be changed, but no matter which field of market they operate, this core cannot be changed. Small and medium-sized enterprises can have a brand spring only by "gaining competitive advantage and becoming a leading brand" in the model market

when consumers consume, there is often a "consumption menu" in their brain. Modern society is an information society with information explosion. The brain of consumers is bombarded by various demands and all kinds of information. The messy and multifaceted nature of information and the unprofessional nature of consumers themselves make consumers blind and at a loss when consuming. In most cases, they can only simply consume according to the "consumption menu" in their brain. This "consumption menu" is not long. Generally speaking, there are only 3-5 brands. These 3-5 brands are "leading brands"

in some developed countries, Jinan Shijin carefully promised: in mature industries, the final result of market competition is often to leave only a few or a dozen competitive brands of the same kind. Among these brands, the top 3-5 brands basically monopolize more than 50% of the market. These 3-5 brands rely on influence to formulate industry rules and obtain monopoly profits, while other brands only passively follow the rules and obtain less processing and operating profits

then you need to use 685.60 hydraulic fixture supercharger. Therefore, small and medium-sized enterprises must become leading brands in the industry in order to achieve sustainable development. To become a leading brand in the industry, small and medium-sized enterprises must be able to "gain competitive advantage". The introduction of the theory of "model market" makes it possible for small and medium-sized enterprises to create their own enlightenment. 2. It is possible to strengthen the "model market" of the cornerstone of internal management, gain competitive advantage in the field of "model market" and become a leading brand

second, the three stages of the "model market" theory

small and medium-sized enterprises rely on the "model market" theory to create their own leading brands. Through the national market, they can be roughly divided into three steps and three stages

the first stage is the survival stage. Small and medium-sized enterprises should concentrate resources to establish a number of "model markets" in smaller regions (such as prefectures, cities, prefectures, and leagues), take the lead in becoming leading brands in the "model market" region, gain market competitive advantages, accumulate resources, and prepare for the next expansion of the "model market"

the second stage is the development stage. Small and medium-sized enterprises should strive to expand the sphere of influence of the model market, promote the outward penetration of the original "model market" in smaller regions, and realize the connection between various "model markets" through careful and systematic small area marketing campaigns, so as to successfully establish "model markets" in larger regions (such as the whole province, inter province and large region)

the third stage is the national unification stage. Small and medium-sized enterprises should make use of the previous "model market" resources (development mode, team, capital), seize the opportunity, tap national resources (such as heavily invested CCTV media, national promotional activities), launch a national strategy, carry out a major counterattack, establish a nationwide "model market", achieve the final victory, and achieve the strategic goal of creating a leading brand

III. three guarantee strategies of the "model market" theory

Chinese small and medium-sized enterprises use the "model market" theory to achieve the goal of creating leading brands and usher in the brand spring. They must also combine appropriate strategies to match and complement each other. The deep application of focusing strategy, nibbling strategy and point, line and area strategy provides an effective guarantee for the implementation of the "model market" theory

1. Focus strategy

as mentioned above, a brand can have a broad market space only if it becomes a leading brand. However, to become a leading brand, we must have more resources than our competitors and form sufficient competitive advantages

as we all know, what small and medium-sized enterprises lack most is resources - cash resources, model resources, talent resources, channel resources, supply chain resources, etc. Without resources, there is no competitive advantage, let alone becoming a leading brand. However, if we can use the "focus strategy", we will find that small and medium-sized enterprises can also become "abundant in resources"

compared with multinational companies, small and medium-sized enterprises may not be as good as 1% even if they activate all their resources. With 1vs100, they are naturally invincible. However, large companies also have areas with weak power. In these areas, large companies invest very little resources and their market foundation is not solid. If small and medium-sized enterprises can concentrate resources and efforts, they can completely defeat these large companies

although small and medium-sized enterprises are short of resources, if they gather together and act on one point, their power is also earth shaking. This strategy is the "focus strategy"

the story of Tian Ji's horse racing in the Warring States period is actually a typical case of the use of aggregation strategies. In the story, Tian Ji is equivalent to small and medium-sized enterprises, while king Qi Wei is equivalent to large enterprises. Previously, Tian Ji and King Wei of Qi raced. Because of the great difference in power, Tian Ji was defeated every time. Sun Bin, Tian Ji's diner, was adept at using the focus strategy to help Tian Ji pull back the defeat. Sun Bin assisted Tian Ji to fight against the king of Qi Wei's medium horse (weak resource) with the upper horse (superior resource), and fought against the king of Qi Wei's lower horse (weak resource) with the medium horse (superior resource). He won two wars and won the final victory of the competition and became the winner of the competition

the use of aggregation strategy is to ensure that small and medium-sized enterprises take the lead in forming competitive advantages in small areas, so that they can become leading brands in small areas, so as to obtain the opportunity to accumulate resources, and make preparations for the next step to expand the scope of advantageous areas and become leading brands in a larger area

2. nibbling strategy

the establishment of a "model market" in a small area is only the first step to create a self owned leading brand for small and medium-sized enterprises, which is far from enough to achieve the long-term goal of creating a leading brand and achieving sustainable development. Small and medium-sized enterprises must effectively implement the "nibbling strategy" in order to become a leading brand in a larger region and obtain development opportunities

the so-called encroachment strategy means that small and medium-sized enterprises, on the basis of the established "model market" in a small area, accumulate resources, summarize experience, train teams, analyze the weaknesses of competitors, take advantage of geographical advantages, be calm and steady, do not seek rash progress, step by step attack the market areas where competitors are marginalized and less powerful, and reverse the adverse situation of brands in these areas, Subvert this part of the market area into a new "model market" for small and medium-sized enterprises, expand the territory of the "model market", expand the strength of the brand, and pave the way for the next national market attack

the nibbling area selected by the nibbling strategy must have one of the following preconditions:

1) geographically, it is best to be close to the original "model market". The advantages of the "model market" have been infiltrated in these areas for a long time and have a certain brand foundation

2) the market type, competitive environment and consumption structure are similar to the original "model market", and the product structure, channel type, methods and working teams of the "model market" are also effective in these areas

3) areas with certain strategic significance. In order to obtain greater development space, brands must occupy those with strong radiation ability or important at any cost

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