Chapter 24 Marketing Case Procter & Gamble's "China Township Strategy"

As a giant in the world's daily chemical industry, Procter & Gamble entered the Chinese rural market as early as 1990. From 1996 to 1999, Procter & Gamble invested a huge amount of money to start a P&G roadshow (road show) project covering nearly 17 provinces, municipalities and autonomous regions and tens of thousands of villages and towns. Through real and intuitive Large-scale product function demonstrations, showing Procter & Gamble's series of products to the vast number of rural consumers.On this basis, starting from 2001, Procter & Gamble launched the second step of conquering the rural market: the strategy of "penetration of township terminal network".The specific planning steps are:

1. Enhance product function demonstration. In view of the fact that rural consumers' demand for daily chemical products is still in the typical functional demand stage, they pay more attention to the actual use value and material benefits of products, and do not pay much attention to some value-added functions and spiritual enjoyment of products. When the terminal network penetrates into each township, we will conduct demonstrations of product efficacy in villages with relatively concentrated small shops and market days with relatively concentrated crowds, so as to further strengthen rural consumers' awareness and awareness of the efficacy of P&G's products. experience.During the demonstration, we also compared some unlicensed counterfeit products that are selling well in the local area, so that consumers can have an intuitive feeling and gradually transform into users of Procter & Gamble.

2. Shop visits. In view of the fact that the township terminal network is geographically dispersed, not concentrated, the geographical location is complex, the customs and habits of each region are different, and the local rural consumers are more convinced of the characteristics of neighborhood word-of-mouth and local salesmen, etc., Procter & Gamble chose to recruit salesmen in the local townships , the clerk is familiar with the local customs, geographical location, and interpersonal relationships. He is responsible for the contact, distribution, demonstration, counseling, store maintenance, and terminal promotion of the local store. higher efficiency.At the same time, it also solves the problems of food, lodging and transportation for expatriate salesmen in the local area. In addition to the necessary business training, it also saves the time and process of getting familiar with the local conditions, which greatly improves the efficiency and accuracy of work.

3. Store owner relationship management. In view of the purchasing behavior characteristics of rural consumers in my country, small shop owners in various villages are local public opinion and opinion leaders, and they play a "demonstrative" role in the minds of local consumers. Maintaining a good relationship with small shop owners is the key to completing the terminal network. important part of penetration.For this reason, Procter & Gamble has formulated a specific method of "building a good relationship" with small shop owners: our salesmen have unique localization conditions, and most of them have good relationships and popularity in the local area. Information such as the business status, the specific needs of the shop owner, and even the interests, hobbies, and birthdays of the shop owner and his family are all registered in the register, and reported truthfully to the project command center, which will coordinate and solve the problem as a whole.Because we have established a good cooperative relationship with the shopkeepers, the shopkeepers have significantly increased their recommendation of P&G products, and gradually showed a momentum of strong sales among consumers in some villages near towns.

4. Fraternity of Shopkeepers. This link is the most important link in the penetration of the entire township terminal network. The so-called "shopkeeper association" is to unite all small shopkeepers in the area to sell P&G products together.Organize store owners to purchase goods from local Procter & Gamble distributors, award membership cards and other commendation plaques according to their sales volume levels, and reward them with purchase discounts, promotional support, free POP and other measures to encourage store owners to sell Procter & Gamble’s products product.Procter & Gamble has also specially produced a "Knowledge for Small Store Owners" manual for shop owners, teaching shop owners how to make money selling P&G products. Much smaller.After a period of operation, many small stores in the target area have changed their appearance and hung up the membership card of "Procter & Gamble Shopkeepers Association". This move has caused a great shock among rural consumers. There are more people.

In line with the above strategies, Procter & Gamble also regularly conducts sales promotion in some small stores in the target area, which has a very good effect on encouraging store owners to purchase goods and promoting local consumers to purchase Procter & Gamble products.The promotion process is mainly as follows: (1) After making an appointment with the store owner, release the time, place, form and other information of the promotion to local rural consumers through rural broadcasting, posting posters, and oral communication two to three days in advance to attract everyone to participate.

(2) Check out the location in advance and find a place suitable for promotion near the small store. (3) Notify the owner to the scene. (4) After the crowd gathers, stop the sound, and the host explains the identity and purpose of the crowd to the crowd. (5) All team members gather and shout slogans: We are Procter & Gamble Propaganda Team!Came here today just to advertise!Cheers and applause. (6) Show P&G series products to the crowd and distribute samples and leaflets. (7) Demonstrate the identification of authentic and fake P&G products. (8) Onlookers are invited to come up to personally operate and distinguish genuine and fake P&G products, and draw prizes on the spot.

(9) Introduce the local wholesalers and small shops of P&G to the public, and the shopkeepers sell P&G products hot on the spot. (10) Call the team members to shout slogans again, thank you for your participation. (11) After finishing one round, all the staff take a short rest and proceed to the next round of demonstration. According to the description of P&G’s first-line marketing personnel: People saw such a clear-cut P&G formal team, saw vivid product demonstrations, and personally experienced the benefits of P&G products. Some consumers even actively cooperated with us in demonstrations. We were very touched by the enthusiasm of the readers.After each small store promotion, the sales of the small store will always be hot for a while, which makes the owner of the small store very satisfied, and the purchase volume also increases accordingly.