What Are the Different Types of Diagnostic Tools?
Through the interview, we learned that Yuanzheng Pharmaceutical is a young pharmaceutical company established in July 1997, which is mainly engaged in the research, production and sales of chemically synthesized western medicine. Generally speaking, as a newborn with a history of only 2 years, Yuanzheng Pharmaceutical has achieved great results.
Enterprise diagnostic tools
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- by
- table of Contents
- I. Introduction
- Overall results
- 3. Departmental diagnosis
- Fourth, countermeasures
- V. Interview Summary
- Data analysis
- Detailed enterprise diagnostic tools
- In a period of time, an enterprise may face multiple problems at the same time, and the resources held by the enterprise are limited. If all problems are to be solved at the same time, a shortage of resources will occur. Therefore, enterprises must prioritize the issues to be resolved in order to ensure that there is sufficient resource allocation for the issues that need to be solved most.
- However, due to the different understanding of the company's current operating conditions, different employees' perceptions of the company's problems also vary from person to person. How to collect opinions from all parties and unify the understanding has become a major problem that puzzles managers.
- In this case, using enterprise diagnostic tools can effectively solve this problem. Enterprise diagnostic tools help companies to advance their work scientifically, reasonably, and hierarchically by scoring and sorting key issues that affect their development in terms of importance and urgency, and improve overall management.
- (1) Help enterprises to find or judge the main problems in production and operation, find out the main reasons, and propose practical improvement plans.
- (2) Guide the implementation of improvement plans.
- (3) Teaching management theory and scientific methods, training management cadres at all levels, and fundamentally improving the quality of enterprises.
- Corporate diagnostics has formed a social service industry. Business diagnosis and business consulting are two aspects of a problem. For enterprises, enterprise consultation is to ask others to give advice and help in production and management; enterprise diagnosis is a consulting agency or business consultant.
- Complete the consultation of the enterprise consulting to the enterprise for investigation and diagnosis, help the enterprise to find and guide the enterprise to solve the problems of management. Europe and the United States are customarily referred to as "corporate consulting", and Japan is customarily referred to as "corporate diagnosis".
- Specifically, enterprise diagnostic tools have the following benefits to the production and operation of enterprises:
- (I) Promote management improvement and increase the level of business effectiveness
- Enterprise diagnosis, especially the enterprise diagnosis personally chaired by the top leader of the enterprise, can grasp the current status of the production and operation of the enterprise, and can clearly understand the strengths, weaknesses and problems of the business management; the enterprise leadership can make the business By taking advantage of each other's strengths, you can adjust your business strategy in a timely manner in response to the problem, take corresponding countermeasures, improve management, and raise the level of your business operations.
- (2) It will play a significant role in promoting the implementation of the annual business policies and goals of the enterprise
- Company leaders presiding over the diagnosis of the implementation of the annual policy goals can grasp the progress of the annual policy goals, find out the major problems in the implementation, through the issue of diagnostic reports, improvement suggestions and requirements of corporate leaders, you can achieve the annual management policy with
- Goals play a major role in promoting the achievement of goals.
- (3) Provide necessary basis for enterprise development planning
- When an enterprise formulates or adjusts its business strategy and formulates its development plan, the current status of its operations and its own conditions are one of the important bases. Through enterprise diagnosis and prepared diagnostic reports, the needs of enterprise development planning can be met.
- Company X is a potato snack food company dedicated to R & D, production and operation in Kunming. The target customers are mainly young people. In the Kunming market, Pinker, Crisp Special Star, etc. have occupied the high-end market of potato snack foods, and Enterprise X and the other three local brands have quartered low-end markets. In a certain period of time, Company X suddenly fell sharply from the stable monthly sales of 700,000 yuan in the past to 400,000 yuan for two consecutive months. After the diagnosis of the enterprise consultant, the company adjusted the marketing plan again and again without increasing the advertising investment and promotion expenses.
- Next, after three months of hard work, the product sales rose to a record high of 1.1 million yuan in monthly sales. How can a business consultant diagnose a business and develop a new marketing plan? Please see this issue of "Diagnosis Cases of Company X's Snack Food Marketing".
Enterprise Diagnostic Tool Diagnosis
- It has been two months since the monthly sales of company X dropped from 700,000 yuan to 400,000 yuan. It is hoped that the consultant will find out the "cause" and prescribe a "prescription." The consultant settled in company X. After nearly half a month of market research, the "cause" of the sharp drop in sales gradually became clear. Including product taste, packaging, channels, management of sales staff, previous publicity, USP (Unique Sales Proposition) and many other aspects. The case focuses on three aspects: product power, channel power, and USP.
- Severe defects in product power
- 1. French fries and potato chips are slightly heavier, and the characteristic flavor of the potato itself is lighter. Therefore, it is weaker in taste and texture than the major competitive brands, which seriously affects the target consumer group's shift from casual consumption to regular consumption.
- 2. The packaging bag is slightly smaller, the fullness of the packaging inflation is not enough, and it is visually weaker than competitors, which reduces consumers' impulse to buy.
- 3 Compared with competing products, the packaging lacks obvious visual differences and uniqueness, and the overall packaging is not enough.
- 4.20g fries are similar to 40g potato chips.
- Extensive channel management
- 1. There is no sound and strict incentive, supervision and assessment for sales staff. Laying, replenishing, tallying and other tasks lack continuity and resilience. The competing products have been competing in space and time, and the rate of placing goods on the shelves has fallen sharply.
- 2. The division of the area and the division of the direct sales distribution line are not detailed enough, and many target merchants have not put the distribution in place.
- 3 The focus of distribution is not clear enough. For example, schools, parks, entertainment places and other places where potato food consumption occurs frequently are not well grasped and attacked, and a lot of possibilities for market feedback are lost.
- 4 The supervision of the distribution system is weak, and the price system is relatively chaotic. For example, on the one hand, wholesalers report lower value of goods and profits, and on the other hand, terminal traders report high purchase prices, which affects the smooth flow of goods.
- 5. Services such as timely delivery did not keep up with market needs, affected customer sentiment, and lost customers.
- 6. Tally work is seriously inadequate. The product is either too concealed in the position of the container or shelf, or it is pushed down by the competing products and pushed behind.
- USP urgently needs improvement
- The "Eat and Go Award" and "Accumulative Recycling Award" combined with the "Eat and Eat Two Awards" campaign is the unique sales proposition of Company X that has been implemented by competitors for nearly two years. The main problems are:
- 1. In addition to the scratch card in the package, there is a serious lack of publicity for "one eat two prizes", such as: there is no reminder on the packaging bag, and there is no mention of even the usual terminal advertisements. This USP in the palm of your hand is useless, and it has failed to wait for young people.
- The formation of target consumer groups should be stimulated to promote sales failure.
- 2. The early winning rate is high, and the recent winning rate has been significantly reduced, which has a negative impact on the USP's target consumer group, and the product has been "abandoned" by some consumers.
- 3 The current winning rate design and the corresponding prize value design are not reasonable enough, failing to adapt well to the psychological characteristics of the core consumer groups such as teenagers, especially children.
- As a result of the above factors, the X-store placement rate of company X has been reduced from 60% to 36%, and the market share has also fallen to 18.7%, which ultimately caused the monthly sales to be stable from before At the level of 700,000 yuan, it fell sharply to 40
- Ten thousand yuan.
Enterprise Diagnostic Tool Strategy
- After clarifying the reasons for the sharp decline in sales and sales, Company X accepted the "prescription" prescribed by the consultant and adjusted its marketing plan from the following aspects.
- Reshape product power
- 1. Improve the taste and texture of the product.
- 2. Introduce "Packaging Promotion Power Coefficient" to design, determine, print, and use new packaging that has a good sales force and an increased volume.
- With "Packaging Promotion Power Coefficient"
- Packaging promotion coefficient = Attention coefficient + Product characteristic clarity coefficient + Humanization coefficient + Trial purchase rate coefficient + Memory coefficient
- Explanation:
- a. Attention coefficient refers to the target consumers who may notice the packaging, and the percentage of the total number of people who noticed the packaging during the survey; the clear characteristics in the product characteristic clarity coefficient refers to the survey The target consumers are aware of the nature of the product and its general characteristics at the moment they notice the packaging. The ergonomic coefficient refers to information such as the safety, convenience, and applicability of packaging to consumers. The rest of the sub-coefficients are deduced by analogy.
- b. The larger the promotion force coefficient composed of the sum of the sub-factors, the stronger the promotion force of the packaging.
- 3 In addition to the relative expansion of the packaging bag, it increases the fullness of aeration and strengthens the sense of increasing the net content of fries and chips.
- 4 With the ex-factory price of 20g fries unchanged, increase the net content of fries.
- Strongly build channel power
- 1. Maintain a reasonable profit system to ensure that all links in the channel have more money to make.
- The contradiction of wholesale merchants with lower profit value and higher purchase prices by terminal vendors is mainly due to the excessive number of intermediate links in the second and third batches, which affects the rationality and competitiveness of the profit system. Kunming is a self-made market for company X, which is obviously unreasonable.
- In response to this situation, Company X has taken two main measures: First, it has absorbed the original wholesalers at all levels to enjoy a uniform factory wholesale price, but at the end of the year enjoy the corresponding rebate based on their respective sales volume. In order to balance the interests of the original upstream wholesalers, the proportion of new rebates will be increased appropriately. This
- The intermediate links have been compressed and the interests of the original upstream wholesalers have been taken into account, ensuring the enthusiasm and unobstructedness of the wholesale links. Secondly, if dumping at low prices or speculatively driving up prices, reduce the appropriate year-end return point return until its disqualification for distribution.
- 2. Dredging the main distribution roads.
- Although the Kunming market is a self-made market for company X, in order for the products to smoothly cover the target regional markets of Kunming as quickly as possible, the distribution channels of wholesalers in various regions still need to rely on important forces.
- a. In Guangfeng, Huafeng, Avant-garde, Jinbi, Xinwen Road, Xinxin, Donghua, Xiyingying, Xinying and other relevant wholesale markets in various regions of Kunming, maintain more than one wholesaler, to the purchaser Form the influence of envelopment and radiation.
- b. Attaching great importance to the sporadic wholesalers in each district and each street, and strive to ensure that the goods are in place.
- c. Establish and improve a reasonable monitoring mechanism that can control and motivate distributors to ensure the smooth flow of channels.
- d. Strengthen the consultative return visits, co-sale, and distribution to distributors to emotionally help the smooth flow of distribution channels.
- e. Through the understanding, recording and research of the previous distributors' sales capabilities, the future monthly sales volume of each distributor is estimated in order to minimize or even avoid transfer of inventory, the occurrence of counterfeit goods, unsalable sales and the risk of repayment.
- 3 Tighten the terminal.
- The terminal is not only the place where the competition of similar products is the most fierce, but also the place where the products face consumers. Its quality is very important in the operation of the entire market chain.
- a. Establishing the idea that the distribution of goods is always the same as squeezing, competing products, and the work of laying goods, so as to maintain the continuity and resilience of the direct sales, and maintain the racking rate of more than 60% in each area in each month in order to achieve the goal Consumers see it. Because of the large market share
- Less is closely related to the size of the shelves.
- b. Classify terminal retail, focus on return visits, support and control of schools, sports, leisure and entertainment, parks and other places where high-frequency potato food consumption occurs.
- c. The work must be done in seven areas: area, line, focus, understanding, analysis, service, and maintenance. Only by being careful and achieving a true win-win situation can there be more potential to tap and more performance returns. .
- d. Only by maintaining the "money path" of the business can you better create your own future. In the channel profit system, at the end of the year, it is necessary to guarantee at least 30% of the profits on par with its peers.
- e. Pay attention to tallying work, and strive for more prominent shelf positions for products, so as to attract consumers from accidental consumption to recurring consumption behavior.
- f. Gradually increase the promotion of terminals and the construction of terminal shopping power to enhance the terminal competitiveness of products in the industry.
- 4 Make good use of sales people.
- The key lies in a relaxation, a soft and a hard incentive and supervision.
- a. Strict implementation of business statements and implementation of follow-up visits.
- b. Draw and compare personal performance week and month coordinate charts to increase the sense of crisis of sales staff and stimulate their initiative and creativity.
- c. Establish and improve customer files from wholesalers to terminal vendors. The file information includes detailed information such as regional location, store size, footfall, owner situation, contact information, monthly purchases, monthly actual sales, etc., in order to better integrate the personal marketing network of sales staff into the company's overall marketing system, Provide targeted guidance to sales staff and reduce market fluctuations caused by the turnover of sales staff.
- d. Link the increase, ownership and maintenance of outlets, sales and rebates to personal compensation.
- e. The introduction of "sales staff assessment coefficient" that focuses on market ability assessment, combined with specific sentimental management, traditional moral and discipline-based assessment methods to motivate and supervise sales staff.
- Attachment: "Sales staff assessment coefficient"
- Sales staff assessment coefficient = outlet completion ratio coefficient + outlet increase ratio coefficient + outlet maintenance ratio coefficient + sales increase ratio coefficient + sales share ratio coefficient + return ratio coefficient
- Explanation:
- a. Outlet completion ratio refers to the proportion of the number of actually completed outlets in the number of task outlets during an assessment period.
- b. The increase ratio of outlets refers to the increase in the actual number of outlets completed during an assessment period compared to the actual completion of outlets during the previous assessment period, and the proportion of the actual number of completed outlets in the previous examination period. The completion ratio of outlets is used in conjunction with the increase of outlets. The main assessment is the sales force's market expansion and forward-looking operation ability. This is especially suitable for the assessment of the market introduction period and growth period.
- c. The outlet maintenance ratio refers to the ratio of the number of outlets actually owned during an assessment period to the ownership of outlets during the previous assessment period.
- The outlet maintenance ratio is used in conjunction with the outlet completion ratio and outlet increase ratio. The main assessment is the salesperson's customer relationship maintenance and communication and the comprehensive operation ability of the market. This sub-coefficient can be used for early warning of sales during the mature period and the market recession period.
- d. Sales increase ratio refers to the increase ratio of the actual sales volume in a certain evaluation period to the sales volume in the previous evaluation period. The main assessment is the ability of sales staff to co-sell and distribute, as well as the ability to do market planning. This shows the comprehensive quality and potential of the sales staff being evaluated.
- e. The sales volume ratio refers to the sales volume of the sales staff under evaluation in a certain evaluation period, relative to the total sales volume of the sales department. This creates competition and interaction among all salespeople.
- f. Repayment ratio refers to the ratio of actual repayment amount to accounts receivable during an assessment period. The main assessment is the sales staff's sense of responsibility, ability to collect money and "morality", and reduce the occurrence of bad and bad debts.
- g. "Sales staff assessment coefficient" consists of sub-factors. The greater the sum of the sub-factors, the stronger the overall quality and ability of the sales staff in the market expansion, communication and marketing. The smaller the score of a sub-coefficient, the larger the problem surrounding the sub-coefficient, the weaker the quality and ability of the sales staff in this aspect, and the more targeted improvement should be. This assessment coefficient is suitable for long-, medium-, and short-term quantitative assessments, avoiding the shortcomings of void and irrationality in traditional assessments, and can be appropriately fine-tuned at different market stages.
- Make USP bloom with glory
- 1. The original "One Eat and Two Awards" was modified to reduce the value of prizes and increase the winning rate for the core consumer group, and renamed it as a more attractive "ticket with prizes".
- 2. Destroyed more than 2 million scratch cards with a value of nearly 80,000 yuan, and designed, printed, and used the new "scratch tickets".
- 3 The relatively competitive USP-"Tickets with Prizes" reminds target consumers on product packaging and terminal publicity materials such as banner advertisements used daily. People pay linked.
Enterprise Diagnostic Tool Results
- Through the above-mentioned efforts, the sales of Kunming market soared to 650,000 yuan in the month when Company X carried out the "rectification", and after that, it exceeded the expected goal of "reaching 750,000 yuan in three months", and continued to rise. It has reached a record high of more than 1.1 million yuan in monthly sales for company X in Kunming.
- Analyzing the case of company X, we can see that in addition to advertising and promotion, the marketing-based operating system and marketing-based supervision system are not only an important foundation for a company to settle down, but also bring high security and create high sales for the company. , High sales and more profitable returns. The key is that the company must be able to abandon the gambler's psychology and speculative behavior, and understand introspection and ingenuity.