-1-SHA-4301-200099-02-17.ppt-xRolandBerger&Partners–InternationalManagementConsultantsBarcelona–Beijing–Berlin–Brussels–Bucharest–Budapest–BuenosAires–Detroit–Düsseldorf–Frankfurt–Hamburg–Kiev–LisbonLondon–Madrid–Milan–Moscow–Munich–NewYork–Paris–Prague–Riga–Rome–SãoPaulo–Shanghai–Stuttgart–Tokyo–Vienna–ZurichAchievedeepdistributionwithefficientlogisticssupply—thekeytowininChinadetergentmarket-Issuepaper-HenkelBeijing,June2000-2-SHA-4301-200099-02-17.ppt-xThisdocumentwascreatedfortheexclusiveuseofourclients.Itisnotcompleteunlesssupportedbytheunderlyingdetailedanalysesandoralpresentation.ItmustnotbepassedontothirdpartiesexceptwiththeexplicitpriorconsentofRolandBerger&Partners.ContentPageA.BuildingdeepdistributioninruralisthemostcriticalfactorforthelargedetergentcompanytosucceedinChinamarket3B.Howtoestablishaneffectiveruralsalessystemwithefficientlogisticssupply12B1.Effectiveselling13B2.Efficientlogistics21C.WhatRB&PcanprovidetoHenkelChina31-3-SHA-4301-200099-02-17.ppt-xA.BuildingdeepdistributioninruralisthemostcriticalfactorforthelargedetergentcompanytosucceedinChinamarket-4-SHA-4301-200099-02-17.ppt-xOverall,thestatusofdetergentmarketdevelopmentinChinaisnotsooptimisticfortheindustryplayersMarketgrowthsloweddownMarketgrowthsloweddownLowtierdominatedmarketLowtierdominatedmarketDroppingdownmarketpriceDroppingdownmarketpriceP&G,Unilever,Henkel,Benckiser,Kao,alltop5globaldetergentcompaniesarerunningunprofitablyinChinamarketDetergentmarketsize(mmTon)Price:RMB/kgPrice:RMB/kg1.92.71993199720002.9~3.08.2%p.a.8.2%p.a.2~3%p.a.2~3%p.a.16.55.511.64.8OMOWhitecat5%75%20%<99~16>1619981999Avg.pricedown10%acrossindustry-5-SHA-4301-200099-02-17.ppt-xEachlargedetergentcompanyisrefiningtheirgo-to-marketstrategytofightforsurvivalprofitabilityPrevious•High,middle,low,3tiersofproductlinestofillalltypesofdetergentconsumers,strongmediaanddistributionacrossthecountry,aggressivetargetontotalmarketdomination•Focusonhightierbusinessstaginghighpricestrongmarketingactivitiesonconsumereducation,strongsalesexecutionatcitylevelretailersNew•Hightierproductline,highprice,brandstayedathighposition•Keeppositionashighbrand,butlowerdownthepricetomiddleandlowtier•Selectiveareafocus,e.g.Hubei,NortheastChina,theapproachesofmarketingandsalesissimilartoP&G•Aftersettlebasebusinessinthefocusedbattlefield,gowithnationalwideexpansion•AlargesalesnetworktocoverruralChina(countryleveltowns)•Afterdominateruralmarket,runforcompetitionincityP&GP&GUnileverUnileverBenckiserBenckiserNanfengNanfengHenkelHenkel?-6-SHA-4301-200099-02-17.ppt-xPerformingcompanyPerformingcompanyIngeneral,thereareonlytwowaysforthedetergentcompanytochoosetogoforwardMarketcircumstanceMarketcircumstanceBusinessdirectionBusinessdirectionAdoptedstrategyAdoptedstrategy•Consumerlowcleaningstandard•Consumerlackofknowledgeondetergentdifferentiation•Largerincomegapbetweencityandrural•Undevelopedsales&distributionchannelinvastruralareaGouptohightierMovedowntolowtierThroughconsumereducationandhabitchangetocreateanhugepotentialmarketMarketingDrivenSalesDrivenBuildastrongsalesnetworkcoverageanddeepdistributiontoruralareaP&Gisadoptingthisway,thesuccesshasnotbeenprovenyetSomedomesticcompanieslikeNanfeng,LiBaiaregoingthiswayandmadeaprofitablebusinessastheexceptionoftheindustry-7-SHA-4301-200099-02-17.ppt-xForthelowtierdeterge...
