265 [Carbonated Drink War]

"The carbonated beverage market is making a comeback, and the Four Nations War is trying to see who can win"!

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

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

The person in charge of sales in Xikang Province, who rushed back to the headquarters, shouted at Li Jingwei: "Mr. Li, either the channel cash rebate or the channel discount will be raised, and the market in Xikang Province will be lost!"

"The company has no money, and cash rebates are impossible, so let's increase the distribution discount ratio a little. 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 Jianlibao Building, Li Jingwei spent too much money and was unable to invest more in the market. Even if there is no falling out with the local government because of the construction of the building (wanting to relocate the headquarters), Jianlibao will be attacked by competitors left and right because of this building, and retreat step by step.

So, why are these entrepreneurs keen to repair buildings?

Fudan, campus.

Song Weiyang was holding his mobile phone and listening to the report of Zhang Guodong, the manager of the sales department: "The specific content of Pepsi's channel stimulation has been adjusted again, they not only have cash rebates, but also sell more, the more they will return, and they have also increased the quarterly deduction between the monthly deduction and the annual deduction." The monthly deduction rebate 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, a dealer sells 500 pieces per quarter in the off-season, with a discount rebate of 2% and a 1% discount in the peak season. I roughly calculated that if a distributor sells 50,000 pieces of Coca-Cola throughout the year, the monthly, quarterly and annual deductions are combined, and the maximum discount rebate can be 8%, and all paid in cash!"

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

"Okay, I'll do it immediately, Mr. Yang thinks the same way. Zhang Guodong hung up the phone.

Song Weiyang's "key customers and 101 plan" cannot be fully rolled out immediately, and he doesn't have the energy and not so much money. It can only be carried out in large cities, as well as in cities with factories and surrounding areas, and the initial time of the whole project is expected to be five years.

During this period, the dealer cannot be thrown away, and at most the regional agent can be canceled. Even if a new channel has been built, you can't completely break up with the dealer, and you have to coax it for the time being.

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

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

After Pepsi Cola's joint venture and acquisition of Tianfu Cola, it inherited the sales channels of Tianfu Cola, among which the channel in Xikang Province is the most perfect, 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 belongs to the leader of the carbonated beverage market in Xikang Province. Coca-Cola also has a bottling plant in Chengdu, relying on state-run channels to develop rapidly. Xifeng Company also attaches great importance to the Xikang provincial market, after all, the nest cannot be robbed.

What's going on now?

Very Coke and Pepsi Cola are working at the same time, while attacking Coca-Cola, they are more in grabbing the market with Jianlibao, who makes Jianlibao sit firmly in the leading position in Xikang Province.

Yang Xin put the company's sales elite and public relations team to concentrate on Xikang Province. In less than a month, it signed a direct supply contract with the top 20 supermarkets and shopping malls in the province, and set up a very cola counter, superimposed a combination of rebates, prize promotions and holiday promotions, and quickly occupied the channels of top retail institutions.

Promotions keep consumers motivated to buy, while stacking rebates allows malls and supermarkets to sell more and get more rebates. This led to a frenzy in malls and supermarkets, with clerks selling very Coke and massively reducing purchases of other carbonated beverages.

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

The store gives half of the rebate to the salesperson, can the salesperson not actively promote it?

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

Xifeng has also frantically developed regional partners, and cooperated with stores in major universities and middle schools, and dealers are also enthusiastic to sell goods under the stimulus of superimposed rebates and promotional activities. Some distributors and regional partners take the initiative to open up the township market, sharing rebates layer by layer, and selling Coca-Cola is as crazy as engaging in pyramid schemes.

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

Although Jianlibao has increased the rebate, it can't grab Pepsi's cash rebate, and it can't compete for the loss promotion of very Coke.

As for Coca-Cola, it is still "standing still" and has not reacted at all.

In just one month, the carbonated beverage market in Xikang province has changed dramatically, with market shares divided into: Very Coke (28.2%), Pepsi (25.7%), Jianlibao (20.5%), Coca-Cola (15.5%), Sprite (5.3%), Fanta (2.3%), Qixi (1.6%), Minianda (0.7%), and other beverages (0.2%).

As for the market share of Coke, it has become: 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 room to survive, 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 for 2.5 yuan in Beijing may be available for 1.8 yuan in Xikang Province, and there is a chance to win several bottles of Coke in a row. In this carbonated drink war, with Xikang Province as the core battlefield, with Very Coke and Pepsi Cola as the main combatants, Jianlibao and Coca-Cola, which ranked first and second in the country, became supporting roles......"

The power of cash channel stimulation is like this, historically, Pepsi insisted on doing it for about three years, and then completely drove Jianlibao and Coca-Cola out of Xikang Province. At that time, if you wanted to buy a bottle of Coca-Cola in Xikang Province, it was estimated that you would have to drive for several hours in Rongcheng, the provincial capital, because the distributor did not buy it, and of course the store did not have it there.

It wasn't until Coca-Cola had a new CEO at its headquarters and a new CEO in China that it slowly regained market share by relying on the factory direct sales network.

As for Jianlibao, it has since become extinct in Xikang Province.

Xifeng doesn't have so much money to do cash rebate stimulation, so it can only frantically engage in promotions, and increase sales rebates, and then cooperate with the advantages of fighting in Laowo, and respond to the battle with a sales strategy that barely loses money.

Xifeng seems to have won, and very Coke occupies 40.7% of the market share of Coke in the province. But it's very dangerous, after all, you can't do prize promotions for a long time, and holiday promotions don't come every day. Only by waiting for the "important customers and 101 plan" to be basically realized in Xikang Province and the channel sinking can we get rid of the threat of Pepsi.

The only thing that really earns is market share, and it is estimated that Coca-Cola will be able to completely drive Coca-Cola out of Xikang Province next summer.