Chapter 99 Marketing System Zhao Hua was indeed telling the Seminis and Syngenta are leaders in the global vegetable seed industry. Among them, Seminis is the world's largest professional vegetable seed company, headquartered in the United States. It is also the leader in the domestic vegetable seed industry. It has sales offices in many cities across the country, research farms in Beijing, Shandong Province, and Guangdong Province, and a logistics and processing center in Beijing. Syngenta Seeds (Beijing) Co., Ltd. is a subsidiary jointly established by two Fortune 500 companies. It is second only to Syngenta in the vegetable seed industry. It is worth pointing out that both companies have brand advantages, complete marketing strategies and sales networks, as well as the background of Fortune 500 companies behind them. Currently in the agricultural sector, this is a symbol of strength and quality. Zhao Hua has been engaged in seed distribution for many years and has worked with seed companies in Europe, America, Japan, South Korea, China, Hong Kong and Taiwan. After entering the country, these foreign seed companies successively established breeding and research and development bases. We also strive to find local Chinese resources and talents for research and development, and combine rich foreign resources and advanced technology to continuously develop excellent vegetable varieties suitable for domestic cultivation.
In the field of peppers, the market share of Japanese and Korean seed companies is expanding year by year. In the field of sweet peppers, European and American companies such as Syngenta, Synnis, and Rijk Zwaan have divided up the domestic high-end market. After ending the call with Xie Fanglin, Zhao Hua smoked a cigarette alone. a long time. Then he instructed his subordinates: "Book me a ticket to Jiuquan." Zhao Hua decided to go to the scene to find out more about the situation. When they first entered the Chinese market, multinational seed companies such as Syngenta and Syngenta were merely manufacturers, and their products were mainly sold through intermediary agents like him. But in recent years, these large companies have gradually built their own marketing systems. Competition among dealers is becoming increasingly fierce. The average gross profit margin has dropped to 8%. Therefore, it is not only seed companies that are looking for good channel partners. Most channel dealers are also looking for better products to create profits for them. …… Nine springs. The scorching heat has quietly turned to cool, but the heat of Tianjiao No. 1 in the northwest region has not dropped. At the pepper seed production base in Yuhe Village, The bright red pepper fruits are like burning flames, emitting dazzling light. The harvest scene is picturesque. The pepper seeds have matured normally. After being picked in time, they are transported to the Gobi Desert to dry. It looks like a red ocean, like a red carpet spread on the earth, which is spectacular. Farmers in Yuhe Village are drying, sorting and bagging the harvested peppers.
It was then transported to Tianhe Seed Industry's processing plant. Yin Xiaobing, who jumped from Shazhou Seed Industry, directs the operation of the production line. The pepper seeding machine removes the seeds, rinses the unripe seeds and impurities with clean water, and then dyes or coats them after rinsing. In the conference room of Tianhe Seed Industry. All middle and senior management staff were present, and each person had a thick stack of documents on his or her workstation. The cover of the document reads: Tianhe Seed Industry Marketing Strategy Plan. Yan Qun flipped through the document and found that there were more than fifty pages in total. Soon, Guo Yang walked in with a middle-aged man in his forties. The middle-aged man had obvious hair loss on the top of his head, and simply left very light hair. Yan Qun recognized the visitor, Qu Yang. He was originally the product director of a multinational seed company, mainly responsible for the introduction, screening and market strategy of new products. Half a month ago, I changed jobs and came to Tianhe. I served as the deputy general manager, at the same level as him, in charge of sales and marketing planning. Qu Yang stood in front of the display board in high spirits, exuding full passion from head to toe. Started his first performance. “No matter how big a company is, it is impossible to meet all market demands. Only by accurately selecting the target market can a company give full play to its own advantages.” "At present, Tianhe's strategic crops are hot peppers and sweet peppers." "Based on Tianhe's basic situation, the national market is currently divided into three categories: A, B, and C." "Class A, must secure the market. Must absolutely occupy, no chance given to competitors in terms of product, image, channel and price. Currently there are only two places in Gansu and Xinjiang, among which Jiuquan, Zhangye and Shihezi are the key points." "We must seize the B-class market. Shandong, Hebei, Zhejiang, Yunnan, Hubei, Guangdong, Henan, Fujian, Sichuan, Hainan, Heilongjiang, Guangxi and Jilin are B-class markets. These regions already have a considerable market foundation and are also emerging vegetable planting bases. They are markets that the company needs to explore." "Class C, random market. Slightly... belongs to the Class C market. We adopt the strategy of purchasing goods only when the customer has cash. There is no need to invest too much manpower and material resources at this stage." “In the A and B markets, we will implement a deep distribution strategy, reduce the number of distributors, increase the direct sales ratio, and improve profit margins.” After a pause, waiting for everyone to digest the information, Qu Yang continued. "Ultimately, Tianhe's distribution system does not have a provincial general distributor, but only a regional exclusive distributor. There are no county-level distributors under the region, but township-level exclusive retailers." "The company sets up an office in each region, with the office manager responsible for sales and marketing in the entire region and assisting regional distributors in sales. The office has 3-5 salesmen, each of whom is responsible for sales to retailers in their respective areas." …… "Rural areas are a special market. Due to information asymmetry, rural consumers are highly loyal and have a strong herd mentality." "When placing TV ads, choose local TV stations, preferably county or township-level TV stations, mainly because 90% of rural areas currently cannot receive cable TV. Local TV stations have low advertising costs, can run ads for a long time, and broadcast frequently." “The focus of the propaganda is low investment, high yield, disease resistance, and high returns per acre.” Qu Yang emphasized again, “High returns have always been the theme of the publicity.”
“But the most critical issue with marketing is profitability, and each office must forecast break-even sales.” "Those multinational seed companies also started out as very small companies, and they were able to grow to their current size because they focused on profitability." Qu Yang spoke for nearly two hours. From the analysis of consumer market characteristics and purchasing behavior to target market determination and strategic market selection, Then, product strategy, pricing strategy, channel strategy... Even the scoring and selection of channel partners, the management assessment of offices, the selection and training of business personnel, etc. were explained in detail and in a simple and easy-to-understand manner. finished speaking, There was warm applause in the conference room. Yan Qun also secretly admired it. After Qu Yang came, the adjusted marketing plan and system did not impress people, but it was very reasonable. Every aspect has been considered. However, for any product, developing a new market is much more difficult than maintaining an old market. Any market needs to be cultivated. For vegetable seeds, market cultivation requires a huge investment of time and money. What's more, the A and B markets still implement a deep distribution strategy, which is destined to require more effort. But Yan Qun looked at the boss sitting next to Qu Yang, looking relaxed and confident. Obviously, Tianran is ready to invest a lot of money. (End of this chapter)