How can coating companies alleviate the complexity of products and services?

China Paint Network
: A survey shows that 55% of enterprises to launch 1-10 new products each year, 21% of enterprises to launch new products, more than 20 / year. 5% of new products in enterprises exceed 100 models/year. Companies that don't phase out any products each year account for 17%. Twenty-seven percent of companies have more than 50 suppliers and 7 percent say they have more than 200 suppliers.
in the business, whether the more products and services should be the better, the better. Is
good or bad
the management of a large-scale coatings company? Before making a conclusion, use 4 examples, 2 sets of numbers to pave the way.
Semination can promote enterprise development more
example one: why banks do not turn a deaf ear to the long queue of small customers, but constantly compress the business space of small customers, specifically for large customers to open up a service area. Because, as the bank knows, 20% of its customers provide 80% of the money.
: As of 2011, Apple had only three base models of phones. 9 different configurations, including phone memory and phone size. Sales were $47 billion.
, 30 base models and more than 80 different configurations, including the color of the phone, had sales of $51 billion. Apple's performance was created just five years after it went public. Nokia has been fighting in the mobile phone market for 40 years.
example three: the Uk diy - their own design - brand, Wicks operates a much smaller product sku than the competition, the company focuses on diy customers really need products, carefully for these products to create beautiful quality, a wide range of adaptability and moderate prices. While other companies mostly generate revenue by increasing the variety of products they produce, while return margins on individual products have fallen relatively, Wicks has reversed that, maintaining growth even in the context of the recession.
: America's fastest-growing burger chain, Five Guys, offers only 17 foods on its menu, plus a range of ingredients. Today's market is full of businesses looking to expand menus and add personalized choices, while the "five guys" are focusing on a handful of foods and doing them better. A simple menu means a simple raw material procurement and logistics management process. As a result, the "five guys" are growing at a rate that everyone thinks is highly saturated.
and refined are the way to achieve the highest profit margins
number one: product premium. A study by Sergo showed that customers would bid 5-6.5 per cent more on products and services that were simpler to use or access.
number two: brand loyalty. Eighty-two percent of consumers prefer to recommend a simple and convenient brand to someone. Simple and convenient brands are not only easy to understand, but also store in the minds of consumers for longer periods of time. A company in Japan has done research, when a company's name reaches 8 words, can remember the name of the company, less than 30%.
then, at least it can be concluded that the more products and services in the business, the better, the better. Less and less refinement is the way to maximize profits and maximize profit margins.
root of this is that the more products an enterprise has, the more complex the logistics management system will be. Accordingly, management and funding reports are becoming more and more enough, making them more difficult to produce. Sales, marketing, and customer service departments will need more and more people, and business members will spend more and more time on meaningless products and services. The cost of time, money and energy is all on the rise.
So, in the operation of
Coatings
enterprises, efforts should be made to simplify the planning of products, services and brands, simplify product design, simplify product instructions, simplify corporate websites, simplify advertising, simplify advertising, simplify store shelves, simplify publicity strategy.
can we achieve less and less refiner products and services?
everything that can be simplified should be simplified. So, how can coating enterprises alleviate the complexity of products and services, to achieve products and services less refined, in order to maximize profits, profit margins maximized? Methods are:
1, clear the same market products.
2, clear the tail customer.
first, to play the customer's value to the enterprise. That is, mobilize them to work with you to increase sales.
second is to raise prices. Mention no profit. Naturally, sellers won't want your low-performing products anymore. Take advantage of the opportunity, you just phase it out.
is to split up a dedicated commercial department or sales team to focus on working with tail customers.
fourth is to outsource customers of low-performing products and services to organizations that specialize in outsourcing sales.
3, reduce complexity in components and raw materials. Products and services are different, the composition of raw materials are also different elements, but in fact, sometimes, the use of the same raw materials is completely feasible.
4, contract manufacturers. Contract manufacturers, this is a new business model, Apple and Foxconn, is the contract manufacturer model. It establishes a mechanism with the principal-agent relationship as the basic framework and the contract system as the mechanism, with the main goal of improving the efficiency of products and services. The advantage of contract manufacturers is that they ensure that Party A focuses on the most valuable spatial aspects of the value chain.
5, the formation of a special product management team, out of the strategic needs of the enterprise products and tail products for effective management.
6, selling low-performance products and services to competitors or related franchisees.
in short, for today's paint industry, enterprises only specialized and refined, consumers can be convinced of the enterprise, in order to obtain a larger market share, in order to maximize profits.