The “1+N†model is a reform initiative launched by Shanghai Luyuan in early 2007 to implement the transformation of the marketing model. Luo Qianxing, director of Shanghai Luyuan Marketing, told reporters: “The '1+N' marketing model refers to a market, an agent. A distributor should have N valuable, quality, quantity of customers or terminals, or N marketing channels; through this marketing model, the benefits can be maximized, so that one product, one brand, and the N A profit channel that produces N times the benefit."
Luo Quanxing further pointed out that based on this marketing model, Shanghai Luyuan and various distributors formed a strategic partnership rather than a simple trading relationship. Shanghai Luyuan will assist distributors to develop and maintain the market and grow together with distributors; and distributors should cooperate with Shanghai Luyuan's strategic management needs to actively maintain market order and maintain Shanghai Luyuan's brand image.
Now, the first half of 2007 is coming to an end. What is the marketing model? In this regard, the correspondent of this newspaper specially interviewed Mr. He Yongping, the manager of the contracted distributor Shanghai Yuxing Lighting. He Yongping has always been operating the Opal Monopoly Zone. With such a platform, how can he become a contracted distributor of Shanghai Luyuan? And also opened the Shanghai market distributor first, opened the Shanghai Luyuan shop in the store?
Evaluation 1+N marketing model
In the interview, He Yongping first gave a very clear affirmation and high evaluation to the signing model of 1+N; and from the professional point of view, put forward the general trend and inevitability of the brand selection of specialty stores and stores in the lighting industry. While recognizing the 1+N model, He Yongping also criticized some marketing models in the past. He said: "The discrete sand marketing model, who wants to operate, provides the product to him, and ultimately with the distribution team. The restrictions have expanded, and some unqualified dealers have carried out price wars and implemented vicious competition, which has led to market confusion and price transparency.
1+N marketing model effect
Regarding the effect of the 1+N marketing model, He Yongping said: "Since signing the contract at the beginning of the year, I have indeed felt the concept of a manufacturer and coexistence symbiosis. Under the new model, the survival of the fittest effectively purifies and regulates the market. We fully enjoy the advantage of price protection. At the same time, we have given us a certain profit margin; the manufacturers also give support for promotion and advertising items, so that everyone can drive the marketing of Shanghai Luyuan products; and arrange marketing specialists to help us develop the market, timely convey company policies, and feedback to the market and Dealer information."
How to deal with "triangular relationship"
Nowadays, many lighting practitioners in the industry often operate more than one brand of products at the same time. So, how do they deal with the “triangular relationship†between different brands in their daily operations? He Yongping said: "Standing from the standpoint of businessmen, doing business without violating the principle can achieve a win-win situation. In my case, Opu is positioned as high-end home lighting, mainly ceiling lamps; Shanghai Luyuan is positioned as a professional energy-saving lamp brand. The products are at the mid-to-high-end level, and the price/performance ratio has considerable advantages. It is complementary to Op. We can sell and sell products according to different customer needs."
Finally, He Yongping also put forward some suggestions. He believes that manufacturers should also increase marketing specialists, strengthen supervision of the market, improve product price positioning, and increase product price supervision.
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