maybeyoumissthisf-kingpost

[maybeyoumissthisf-kingpost]

What is economic freedom and its metrics?

The Index of Economic Freedom has been published annually since 1995 by The Heritage Foundation and The Wall Street Journal to measure levels of economic freedom. Through the economic freedom index and the global economic freedom rankings, we can see that the most prosperous regions are those with the highest economic freedom indexes, such as Hong Kong and Singapore; The poorest regions are those with the lowest economic freedom, such as Cuba, Venezuela, and North Korea.

What is economic freedom?

Economic freedom is the basic right of every human being to control his own labor and property. In an economically free society, individuals are free to work, produce, consume, and invest however they please. In economically free societies, governments allow the free flow of labor, capital, and goods, without oppression or limitation of freedom except for the minimum limitations necessary for their protection. protect and maintain that freedom.

In 2020, Vietnam's economic freedom index ranked 105th in the world, higher than Laos and Cambodia in ASEAN, with a score of 58.8 - which is at the level of "mostly unfree".

How to calculate the economic freedom index?

Economic freedom index is calculated based on 12 economic freedom components, divided into 4 groups: Rule of law, Government Size, Regulatory Efficiency, Free Market.

Data for the study is collected from reputable organizations such as World Bank, IMF, Economist Intelligence Unit and Transparency International. Each freedom index is measured on a 100-point scale (from 0 to 100), with 0 being the least free and 100 being the most free. A score of 100 is indicative of a liberal environment or policies that are most conducive to economic freedom.

Group 1: Rule of Law

Property Rights

Private property measures the degree of freedom a country's legal framework allows individuals to own property, guaranteed by clear regulations and effectively enforced by the government. The published index is based on a combination of survey data and independent assessments from The Heritage Foundation, thereby providing a quantitative measure of the degree of protection provided by national legislation to human rights. private property of the people, and the effect of such laws.

The private ownership score is calculated as the average (unweighted) of 5 sub-factors, including:

1. The right to private ownership of physical property; 2. Intellectual property rights; 3. Level of investor protection; 4. The risk of being deprived of property; 5. Quality of land management.

Judicial Effectiveness

In order to protect citizens' rights from illegal acts of others, effective legal frameworks are needed. Judicial effectiveness requires that judicial systems be efficient and fair to ensure absolute respect for the law.

The judicial effectiveness score is calculated as the average (unweighted) of 3 sub-factors, including:

1. The degree of independence of the judicial apparatus; 2. Quality of the judicial process; 3. Ability to obtain favorable judicial decisions.

Government Integrity

Corruption erodes economic freedom by bringing coercion and instability into economic relationships. The biggest concern here is the systemic corruption of government agencies that affects decision-making through embezzlement, bribery, bribery, extortion, nepotism, kinship, and nepotism. possess, support.

The government integrity score is calculated as the average (unweighted) of six sub-factors, including:

1. Public confidence in politicians; 2. Payment of irregularities and bribes; 3. Transparency in government policy making; 4. No corruption; 5. Perception of corruption; 6. Transparency in government activities and in public service.

Group 2: Government Size

Tax Burden (Tax Burden)

Tax burden reflects marginal tax rates on individual and corporate income, and overall tax rates (including indirect and direct taxes imposed by levels of government) as a percentage of gross product domestic GDP (GDP).

The tax burden score is calculated based on three sub-factors, including:

1. The highest marginal tax rate of individuals; 2. The enterprise's highest marginal tax rate; 3. Tax burden as a percentage of GDP.

Government Spending (Government Size/Spending)

Government spending represents the level of government spending as a percentage of GDP, including consumption and budgeting. In fact, there is no basis to determine the optimal level of spending for a government, but it will depend on factors ranging from culture, geography, natural disasters to the level of economic development. However, in many times, government spending becomes an unavoidable burden leading to waste of resources and loss of economic efficiency. Excessive government spending will cause chronic budget deficits and public debt accumulation.

It would be impractical to calculate the more spending score, the lower the score (with zero spending as a benchmark), as some countries are less developed, especially in some countries where of weak government, may receive artificially high scores. The quality of these governments' public services is often low or poor, so these countries are likely to receive low scores on other economic freedom factors such as private property rights, financial freedom, and so on. , investment freedom. Thus, government spending that is close to zero will be "slightly fined", spending more than 30% of GDP will have a sharp drop in the score, and spending more than 58% of GDP will receive a score of 0.

Fiscal Health (Fiscal Health)

The increased budget deficit and public debt caused by the government's mismanagement of the budget will worsen the fiscal situation of the country, which in turn leads to economic and macroeconomic instability.

Debt is the accumulation of budget deficits over time. In theory, the mobilization of capital for public expenditure will make positive contributions to production investment and economic development. However, rising public debt due to persistent budget deficits, particularly government spending or payments, often depresses overall productivity growth and causes the economy to stagnate, rather than stagnate. Promote development.

The fiscal health score is calculated based on two sub-factors, including:

1. Average deficits to GDP ratio (accounting for 80% of the score); 2. Public debt to GDP ratio (accounting for 20% of the score).

Group 3: Regulatory Efficiency

Business Freedom

The entrepreneurship component measures the extent to which regulatory and infrastructural environments limit the effectiveness of businesses, including factors affecting the establishment, operation, and dissolution of businesses. enterprise.

The freelance score is calculated based on 13 sub-factors (unweighted), including:

1. Enterprise establishment procedures; 2. Time to establish the business; 3. Enterprise establishment expenses; 4. Minimum capital for enterprise establishment; 5. Procedures for applying for a permit; 6. Time to apply for a permit; 7. Expenses for applying for permits; 8. Time to dissolve the enterprise; 9. Enterprise dissolution expenses; 10. Debt recovery rate (of creditors) upon enterprise dissolution; 11. Procedures for accessing the power source; 12. Time to access power; 13. Cost of access to electricity.

Labor Freedom

The free labor component examines various aspects of the regulatory and legal framework in a country's labor market, including minimum wage regulations, laws preventing layoffs, termination procedures, binding employment regulations, and working hours and labor force participation rates (to represent employment opportunities in the labor market).

The freelance score is calculated based on 7 sub-factors (unweighted), including:

1. The ratio of minimum wages to average value added per worker; 2. Obstacles when hiring more workers; 3. Rigid working hours; 4. Difficulty in firing redundant personnel; 5. Mandatory leave notice period (legally); 6. Mandatory severance pay (legally); 7. Labor force participation rate.

Monetary Freedom

Assess the extent of government micro-intervention to control prices and inflation.

The monetary freedom score is calculated based on two sub-factors, including:

1. Weighted average of the inflation rate for the last 3 decades; 2. Price controls.

Group 4: Open Markets

Trade Freedom

Free trade measures the extent to which tariff and non-tariff barriers affect the import and export of goods and services.

The free trade score is calculated based on two sub-factors, including:

1. The average import tax rate according to the trade volume; 2. Non-tariff barriers.

Investment Freedom

An economically free country would have no restrictions on investment flows. Individuals and businesses are allowed to freely circulate resources in specific activities, regardless of the scope within and outside the national territory, without any restrictions.

In practice, however, most countries have different restrictions on investment: some issue regulations on domestic and foreign investment; some limit foreign exchange operations; some restrict payments, transfers and capital transactions; Some countries have even enacted a ban on foreign investment in certain industries.

From an ideal score of 100, countries will gradually lose their investment freedom score if:

1. There are limitations in the principle of national treatment for foreign investment; 2. Restrictions on foreign investment regulations; 3. Restrictions on land ownership; 4. Investment restrictions by industry; 5. Expropriation of investment properties without adequate compensation; 6. Foreign exchange control; 7. Capital control.

Financial Freedom

Financial freedom is an indicator of the efficiency of the banking system as well as a measure of independence from government control and intervention in the financial sector. The emergence of state ownership in banks and other financial institutions reduces competition and often reduces access to credit.

In an ideal banking and financial environment where government interference is minimal, central bank supervision and regulation of financial institutions is limited to the enforcement of legal obligations. and prevent fraud. Credit is distributed according to market conditions and the government does not own the financial institutions. Financial institutions provide different types of financial services to individuals and companies. Banks are free to extend credit terms, accept deposits, and perform payment operations in foreign currencies. Foreign financial institutions can operate freely and are treated equally as domestic institutions.

From an ideal score of 100, countries will gradually lose their financial freedom scores if:

1. High degree of government regulation in financial services, 2. High degree of government intervention in banks and financial companies through direct and indirect ownership, 3. Degree of influence government on high credit allocation, 4. Low level of capital and financial market development, 5. Limited foreign competition.

All credit goes to trantuansang.com.

[maybeyoumissthisf-kingpost]

Feminism and gender equality: Why does it suck?

First of all, this article is for Feminists, and is not contraindicated for women who are drawn into the Feminism movement without understanding the political tricks of the wire-pullers behind. I respect every woman. They are half of this world. I bet you'll agree with me on one thing: Women have always been honored for their direct and indirect contributions to human civilization. Because of that, I feel I have a responsibility to protect them from the malicious conspiracy of the Feminism movement.

In Vietnam, the liars call Feminism Feminism. But what RIGHTS? Where is the RIGHT? Which word in “Feminism” has RIGHT in it?

I call Feminism the Supreme Feminism

The press, as well as the simps with their pussy on their heads, praised this toxic choleraism, making the sisters think that this was a movement to fight for equal rights for women. I say,

My body is like a drop of rain. Seeds go to the castle, seeds go to the field to plow

Even if the raindrops don't have the same starting point, how can there be equality in this world? Can anyone try to name an equal country for me? There is no right. The leftists always do not draw two words EQUALITY to attract losers in society. Gender equality, income equality, racial equality, class equality? An all-too-familiar scenario for shepherding stupid sheep.

Want to know toxic feminism? Ask the Feminists!

Going back to the Mao or Bolshevik era in the mid-twentieth century, also with the scenario of class struggle for equal rights, a series of bourgeoisie were denounced, executed and executed [1][2]. Today, gender equality has the same color. There will be a day when the men - the object of attack by the struggle group - will fade away like the bourgeois in the revolutionary era. Of course, similar massacres are hard to come by in the modern world, but it will be done more delicately, instilling slowly and killing you like a Poison Mushroom. Remember, there is NEVER a struggle for equality that stops at the balance of interests, but it is always directed towards the exclusion and elimination of that object from society. If you think I'm taking it too seriously, you can check with the hashtag #KillAllMen on social media to see if it's terror enough. Too obvious for the toxicity of the modern feminist movement!

Looking back at Feminist's harsh words to men, plus the cheers of the left-wing media, do you see the danger? They inject young girls with the image of men as scum – lustful, slutty, wretched, etc. ALL MEN ARE WRONG is the mindset you can easily see in young girls these days. .

I know many female friends who have suffered a lot of hurt, even humiliation when going through toxic relationships with some assholes. I'm not defending those fuckboys. But women, the gender that is dominated by negative emotions [3][4][5] , after the breakup of a love affair is often easily lured into movements that boycott men with extreme arguments such as :

1. Women suffer many disadvantages when getting married and having children. Men do not have pain in childbirth, so they never appreciate this sacrifice of women.

2. All men are rapists [6] .

3. Women in the past could not study, could not participate in elections, so they always lost compared to men; Moreover, women are bound by many strict dogmas, marriage must be completely dependent on their husbands.

However, NO ONE told them:

1. The man carries the national responsibility on his shoulders. He could die, be stabbed by swords, shot by bullets, burned alive, dismembered, etc. on the battlefield to protect women and their children at home.

2. Even if two people have a completely voluntary relationship, if the girl accuses the boy of raping, he will still have to go to prison to schedule a schedule [7] . On the other hand, if a man alleges that he was raped by a woman, guess what percentage of him will win the case?

3. A man is by default the one who provides and protects his family for the rest of his life, and at the same time is the one who bears all the responsibilities – that is an inescapable destiny. He will be despised by people and despised by society if he cannot afford to take care of his wife and children. More than 150 years ago, if the wife committed a crime, it was the husband who would be punished or imprisoned under Coverture laws. Also in the old society, women can't vote, and men... can't vote anyway?! In feudal times, was the potato gourd? Kings follow the tradition of passing from father to son, but there is no election. Only in Western society do women have the right to vote, but under Coverture law, the husband will be the representative of the will of both.

No school, school, or newspaper tells today's boys and girls about these things. And young people are easily attracted by the new radical movements, resulting in society spawning the following groups:

The conspiracy behind the cover of gender equality: Breaking the gender line

The interests of men and women are inherently balanced, only when Feminism movements arose, that balance gradually tilted to one side. Worth mentioning, this bias is NOT beneficial to women, but only to benefit the policies and voting of the left. By taking advantage of the image of the LGBT community, Feminists argue that there is no difference between men and women, thereby breaking down gender boundaries. What is the result? It's the FEMALE, I'm not mistaken, the WOMEN are the recipients.

When it goes beyond the limits of the laws of nature, breaking the gender line has dire consequences for women.

Typically, Fallon Fox, a male MMA fighter (transgender) allowed to compete in the women's category, caused female boxer Tamikka Brents to break her skull and brain injury in just the first round. Another example is Mary Gregory, a transgender man who broke the record of four female weightlifters in a single day [8] .

So, does this movement really bring equality to women, or does it only increase social injustice? Of course, the madness of these guys won't stop, just think that one day when the genders are no longer distinguished, men will be able to enter the women's toilets!? Oh what a disaster!

Men and women are inherently different

Back in the beginning of the world, Eve was born from the body of Adam. She was not born from the bones of Adam's head so that she would rule over Adam; nor was she born from the bones of Adam's feet to be trampled upon by Adam; that she borne from Adam's rib that the two might be equal, under Adam's arm that she might be sheltered, near Adam's heart that she might be loved.

Both men and women are born different, taking on different roles in life. There are areas for men to control, and there are areas for women to control. Although there are many studies that have shown differences in brain thinking in both sexes, Feminists still try to deny this difference. Again, this distinction is a FACT (truth). Therefore, to deny this difference is to bend the truth.

Correct. Bend the truth is what Feminist is doing.1. Feminist: “Women must be treated like men”

There's a saying that goes, "Women can do anything a man can." However, history has always shown the opposite. Women rarely choose to confront, take responsibility for key decisions. This is easy to see that even in family relationships, the wife always gives her husband the right to decide when there is an important issue. To emphasize, this behavior is NOT BAD at all. Because it is the NATIONAL, the divinity of a woman.

I am not saying that men or women are better, but since ancient times, men have been identified as the ones who take the lead. He must be RESPONSIBLE and stand to solve his own and the woman's problems.

Therefore, women need to be treated like EVERYONE, not LIKE MAN. Again, I respect every woman. But if you want to win the respect of society, you must learn to be responsible… like a man.

2. Feminist: “Women must have the same salary as men”

In fact, it is not men who are paid more, but women who always choose lower paying jobs [9] . However, how to choose a job, it is completely the freedom of each person. Feminists want to force girls to work against their wishes, it can be said that it is an unethical behavior.

3. Feminist: “Women should be allowed to do men's jobs”

Everyone is given equal opportunities, but each gender has qualities that make us superior to the other half in some areas. For men, it's physical health, hard work is naturally suitable for men. For women, it is the ability to care, so women dominate the nursing field. Such division of labor is to ensure the highest economic efficiency for society. So, women don't need to do the work of men, they just need to do the work that they feel LIKE and DO GOOD.

4. Feminist: “Women must be treated by law in the same way as men”

The law is now “favoring” women, that is the reality, due to pressures from far-left movements. Specifically, we have women's rights, children's rights, but not men's rights. Even in the US, when it comes to legal protection, men even lose to dogs and cats. That is the imbalance caused by the Feminist and the leftists.

There is a funny story like this: “Oranges look both beautiful and delicious, so they are often used as juice; and the bitter melon is both bitter and rough, so no one has ever forced it to drink. Then one day the bitter melons rebelled to overthrow Orangeism. Proponents of bitter gourd believe that oranges can make juice, so can bitter melons. As a result, after years of struggle, the government passed the Plant Equality law, according to which anyone who drinks orange juice but does not drink bitter gourd juice will be jailed.”

Sounds absurd right? In short, men and women are inherently different. Both sexes are born to DO BETTER what the other cannot be in charge of. Orange has its own application, so does bitter melon. We cannot use others to measure ourselves. Doing so only shows that you are lowering your self-worth.

If you're not equal, don't be equal

It is ironic that Feminists are always anti-men, but covet their values. Value is something that takes effort to build, but cannot be asked to be recognized or given by others. To me, the value of a person lies in their usefulness. So be useful to family, friends and society; study and work kindly; serve and love the community. Don't compare yourself to others. Also, don't put others down, because it doesn't raise your self-worth. Because only what you do shows who you are in this world.

All credit goes to trantuansang.com.

[maybeyoumissthisf-kingpost]

Different political mindsets between Vietnamese people and Western people

Economic and political thinking between Vietnamese and Westerners is indeed different. Not talking about right and wrong. But it's really different. Before reading the next lines, I want us to agree on one thing, which is to respect differences - which is common in a pluralistic society like the West.

Normally, Vietnamese people can gossip about East and West, but there is an unwritten rule that is not to discuss politics. Because it's sensitive. Like a shy teenage girl holding her lover's hand for the first time. This is different from the West, when politics is a hotly discussed topic in every street corner, school, office, newspaper, to every corner of cyberspace. Therefore, there are Western views that are common, but may sound strange to Vietnamese people; on the contrary, there are thoughts that are deeply rooted in Vietnamese people also make many Westerners find it difficult to understand.

1. Vietnamese: "Paying taxes is patriotic"

This statement was made by Mr. Vu Tien Loc, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI), at the Ceremony to announce the 1,000 largest tax paying enterprises in Vietnam in 2017. The text is as follows:

If paying taxes is patriotic, then those who pay more taxes are patriotic.

Any. Let's admit, this is not just Mr. Loc's point of view, but most Vietnamese people have the same opinion. I used to be like that too. Most of us think of paying taxes as a way to contribute to the nation. Only if the government has money can the country develop. Therefore, when giving each of our tax dollars to the government, we feel like we have contributed to the development, invisibly that becomes a measure of each person's patriotism.

“Have you done anything for the country?” "I pay more taxes than you!" Sound familiar?

Western perspective

Taxes and fees are material categories. And patriotism is a natural attribute, belonging to the category of consciousness and spirit.

Taxes and fees are monetary, limited and implemented by government power – coercion. While patriotism is a sacred, noble, priceless, unlimited and completely voluntary gesture.

In Germany, the Constitutional Court once ruled that "the people are not responsible for paying much tax to the state, but rather, they have the right to legally calculate the tax to pay the least". That saying has become a slogan in many judicial offices in this country.

Paying a lot of taxes is also not a way to help the country develop more. High corporate tax will cause many companies to go bankrupt, workers lose their jobs, hinder technology development. The more taxes, the more control agencies must be established, the easier it is to breed embezzlement and corruption. Therefore, it is best that everyone spends money, respects individual liberties, taxes should be just enough for essential public services.

For Westerners, taxing is also considered an act of theft [of the government] – “taxation is theft”. There is even a saying among parents: “Want to teach your children a lesson about paying taxes? Eat half of their ice cream.”

Say it again and again, West also has West this West that. Not everyone wants a tax cut. Some lazy people tend to be in favor of raising taxes. Because if there is no tax money, they will be cut off from the government subsidy, which means they have to carry their ass to find a job. There are also many politicians who support tax increases, they are Socialists like Barack Obama, Hillary Clinton, Joe Biden and Bernie Sanders.

2. Vietnamese: “Peace will develop”

For Vietnamese people: When people are at peace, they can do business in peace. Peace is the only way to promote tourism. Peace is the country's development. There is freedom but chaos.

As long as it is peaceful, the country is rich and strong. This is a unique formula for national development that cannot be found in any economic-political literature or theory. So when someone condemns negatively in Vietnam, they are often attacked and threatened because they dare to "disturb" social stability and inhibit development.

Western perspective

The development formula of the West is encapsulated in two words "freedom". In which, economic freedom, political freedom freedom and personal freedom are the core for other freedoms.

Economic freedom gives people absolute private property rights, fully realizes the freedom of movement of labor, capital, and goods, and is completely free from oppression or limitation of economic freedom. except to the minimum limits necessary for them to protect and maintain that freedom.

Political freedom is the right to do anything that is not prohibited by law. As a result, people can freely speak, share opinions and access information and multi-dimensional knowledge; or free thinking helps us distinguish right from wrong and be creative.

Personal freedom gives us the freedom to choose and take responsibility for our decisions. No one has the right to impose our will in the name of anything.

Which Western political and social system is as peaceful as ours? Yet they are extremely developed. It doesn't need to be said far, even like Thailand, their people protest and riot often, but their country's tourism is more developed than ours. But thought that the unstable society would not dare to travel?

3. Vietnamese people: “There is a state to take care of”

Officials who commit violations and corruption have been taken care of by the State; election, the party also elects the people; policy making, the State has thought for and took care of it; Whatever they wanted to say, the state press spoke for them. Therefore, now Vietnamese people are quite peaceful. For them, peace is enough, why should they have to protest and worry about politics like other countries. How many years of war is not enough? So let's just ignore it, live in peace, live a carefree life, pay taxes regularly, everything is taken care of by the State.

Western perspective

Westerners value political freedom. Unlike Vietnamese who "have the state to take care of", Westerners have long seen government as a threat, not a solution to their problems. People have rights, and must participate in the State apparatus.

Montesquieu once wrote in the book The Spirit of Laws: "Many historical experience shows that people in power are often inclined to abuse power, and the best way to combat abuse of power is to fight monopoly, is to divide them in such a way that these rights contain one another.”

So how to do it? In order to reduce the concentration of power in one group, they divided the state into different agencies. The most popular model is the trias politica model, in which the three powers of the state are legislative, executive and judicial.

Legislature (simply understood, is the body that makes laws) expresses the general will of the nation. It belongs to the entire people, given to the assembly of the people's deputies, the National Assembly.

The executive (law enforcement agency, or government) implements established laws.

The judiciary (law protection agency) aims to handle violations and resolve conflicts between individuals. Judges are chosen from the people and the judgments are made only according to the law.

Such branching aims to balance the power between the agencies, no one type of power is superior to the other. Vietnamese people often call the US President "the most powerful person in America". It is not correct to call that. The President has only 33.33% of the power, the rest is held by Congress (bicameral) and the US Department of Justice.

While the Vietnamese do not care about politics, they view those who criticize the leadership as traitors; Westerners monitor the government very closely, they protest regularly to raise their voice, they do not "absolutely trust" any leader. As writer Mark Twain once said, “Politicians and diapers must be changed often, for the same reason.”

While the Vietnamese entrust all decisions to take care of their lives in the hands of the State; In the West, they think that the smaller the government, the better. What is small? Is to limit its power to a minimum. I would like to quote a passage from the inaugural address on January 20, 1981, of the late US President Ronald Reagan:

“In the current crisis, government is not the solution to our problem. It is the government that is the problem.

We are often indoctrinated that society is too complex for self-control. That government run by an elite minority is better than a government of the people, by the people, and for the people. So if none of us can solve our own problems, how can anyone be qualified to solve other people's problems?"

All credit goes to trantuansang.com.

[maybeyoumissthisf-kingpost]

If it was not the government, who would build the roads?

Story telling . In the autonomous region of Dagestan (in Russia) - which is considered one of the most dangerous regions in the world due to political conflicts - there is a Russian guy who lives near the border, because he wants to socialize with good brothers. in the neighboring country of Georgia, so he built a 55km long road alone through the "neighbor's" house. Many people wonder what motivated him to do so. In an interview with Radio Free Europe (RFE), he confessed that for a long time the people of Northern Dagestan had a good relationship with the Georgians across the border, but there was no road between them. to go back and forth. Besides, the people here were too bored to wait for the government to build a road for him, so he decided to build the road himself. His name is: Magomed Kebedov.

Story telling . In the remote village of Gehlour in Northern India, a mountain more than 100 meters high separates the village from "the rest of the world". Because there is no way, villagers often have to go around for a few hours to the other side of the mountain to work, trade and study. The mountain also prevents the poor village from accessing daily necessities. It was here that a legend of "digging mountains to fill the sea" was born. That day, the wife of that "saint" fell seriously ill, because he could not bring his wife to the hospital on the other side of the mountain, 75km away, so he had to helplessly watch her die. Pain and bruterather angry, he used a hammer to smash the mountain, by mistake, he cut a shortcut across the mountain. After 22 years of hard work, he finally successfully excavated a road 120 meters long and 10 meters wide to shorten the distance to only 5km. Since then, people have named him "Baba" - meaning respectable man. His name is: Dashrath Manjhi.

Another story, but on a larger scale . It was a very successful campaign of the Domino's Pizza brand. Marketers hear about “ Paving for Pizza”” (interpretation: Pothole patching – Pizza delivery) will probably scream like a K-pop fan meeting an idol. Paving for Pizza is set from the funny stories that happened to the shipper on the pizza delivery route, some of which are related to… potholes. According to Domino's statistics, the United States has more than 600,000 potholes and about 40,000 roads are degraded, affecting the traffic of people. With such road conditions, it is difficult for pizzas to be "complete" when reaching customers. In fact, Domino's has received many complaints about the situation of cakes moving, or meat, mushrooms, and cheese becoming a mess when delivered. To solve the above situation, the world's leading pizza company has "on behalf of the government" filled potholes and repaired degraded roads across all 50 US states,with a message that goes to people's hearts "No pothole can spoil your delicious pizza".

After the story is told, it's time to explain who built the roads.

In the past, every time my right-wing brothers and I discussed the privatization of government services, the stupid question "So who will build the roads?" uttered as usual. We sighed and began a familiar scene: Sit down, let me tell you about a legend . Actually, there are three legends in the stories I just told. All are prime examples of the effectiveness of the private sector versus government on a practical matter.

Before we go any further, we need to make it clear that the government has NO MONEY. Government funding comes from TAXES (or indiscriminate printing of money like in dictatorships). Even the most leftist "radical" has to admit this. It is an important FACT, enough to shake the national eating mindset of many people. The government does not feed us. There is no such thing as a free lunch. We are the ones feeding the government.

Second FACT, the road builders are NOT the government. In fact, the government uses the taxpayers' money to hire private companies to build roads on their behalf. This problem is probably known to many people. It raises three important questions about government transparency and efficiency:

First, who are the private entities that contract the construction of roads with the government? If not the COCCs in the guise of private (red capitalists), then they are also backyard businesses/group interests linked together.

Second, let's say it's a completely transparent government (a fantasy no matter what regime in the world) that openly organizes bids for works and has no sign of "dirty food" on tax dollars. of the people, how will they allocate resources to ensure thorough fairness? Taxes are collected equally, it cannot be argued that people in zone D have to accept going on degraded roads, while the roads in zones A, B, and C are well paved.

Third, there are so many problems surrounding the government, why don't we build the roads ourselves? Take a few seconds to reflect on this proposition. To be honest I really like question number 3, and most of all I would like to see it as a rhetorical question rather than a mere interrogative. Because what I am about to present will be intended to make that clear.

Right. Why don't we build our own roads?

When asked “What is the purpose of building roads?” – bet many people will say that roads are for commuting. That answer is not wrong, but it inadvertently negates the motivation to build roads. Pigs, cows, chickens, etc. also need to travel, right? But they DO NOT NEED roads.

Humans are a special species. Unlike other animals, we know TRADE. For thousands of years, people have continuously filled roads, built bridges, carved mountains, dug tunnels, etc., just for the purpose of exchange. You must have heard of the Silk Road ? An East-West trade route with the first bricks was built by the hands of Chinese merchants, extending the shipping route from China to as far away as Persia and Rome. It is the most obvious highlight in the history of world trade, although later this work is politically colored because it touches on the power ambitions of the ruling empires. However, it proved one thing…

Where there is trade, there will be roads.

To survive in the market, private enterprises must meet user needs, or they will be eliminated. And the need for roads is always an urgent issue. Therefore, trade is the driving force for the private sector to build roads leading directly to areas with demand for goods. Similarly, to serve the needs of exchange, each individual will also build his own roads without the need for government hands.

I'm sure many people think that the three examples I mentioned above are only local, and doubt its applicability on a large scale. By the way, I would also like to shoot one more FACT: The US private sector is the one who built the road infrastructure of this great power in the early days of its founding (source: Private Toll Roads in America) - The First Time Around ).

Until the 19th century, despite the growing leftist ideology, the United States still had 2,000 companies that financed, built and operated the road system for it. Currently, although the US government is increasingly spending on Federal highways (identified by color signs) and State (identified by black and white signs), but Local routes operated by privately remain closed. plays an important role in connecting family cells with society.

A little further, we have Hong Kong in the serious budget deficit in 2003 that had to rely on private hands to build the road system to get out of the crisis.

Sadly, when it comes to public services, almost all of our credit goes to the government. Increased dependence on government makes us forget the core operating principles of the market, so much so that “who builds the roads” becomes a conundrum. Wondering if Adam Smith looked down on posterity now, he would also shake his head in dismay. So today's right wing - the so-called Libertarian and Conservative - has an important mission of the times, which is to preserve (conserve) liberal values ​​to clarify one truth: Big Gov sucks (rough translation) : Conqueror of Lon an Hai).

I mean the Big Government sucks

Why do private roads build more efficiently than the government? Because the government needs a huge bureaucracy to be able to manage from central to local, it also does not face pressure to be removed from the market. Meanwhile, the private sector is the one who knows the market needs best, and is also the one who is under pressure to preserve profits, these two conditions are enough to show that the private sector completely outperforms the government in 1) quickly detect needs and (2) manage budgets effectively.

From the above evidence and analysis, we draw 5 conclusions:

1. The government is VERY poor at identifying the real needs of the people and allocating resources to meet those needs. Only each individual can know what they want and need. The leftist economist Keynes once said that "In the long run we are all dead" to emphasize the need for short-term bailouts from the government. However, he cunningly (in the words of today's youth) ignored those who died because of the government's inefficient allocation of resources.

If only the Keynesians had seen how desperate the people of Central Vietnam were as they waited for the government's bailout budget. If only they could see how efficient and quick individual/private philanthropy was during the last flood.

2. An individual, or a private group, CAN completely do the work that has been DEFINITELY the responsibility of the government, even better. Of course. There are many stories of private investment in the road system more efficiently than the government I can hardly tell. Like Saigon, there is a beautiful road in Phu My Hung (privately owned) and a severely degraded Huynh Tan Phat road (by the state). For example, Hanoi has the magnificent urban area The Manor Central Park (privately owned) compared to the "battlefield" of potholes on Cau Giay Street (of the state).

3. Government is an entity attracting POWER, so it will find ways to prove its necessity and BRAIN people to become more and more dependent on it. There's a rule that holds true when it comes to government dependence: as the government gets bigger, it will determine who deserves how much. This is the kind of power that is always used to protect the interests of groups that share the same views as the government. And those with "wrong views" will be forced to give up their values ​​to serve the national interest (in fact, only the interests of a group of people holding power).

4. The private sector is the biggest threat to government, because it proves the fact that we don't need government as much as we think. The thorn in the eye definitely needs to be removed. This is why any government wants to manipulate the free market.

5. What comes from VOLUNTARY can bring SATISFACTION, HAPPINESS. Government control or influence only creates conflict or death. See also : Free trade is the key to world peace .

For a long time, when it comes to limited government or private economic development, the question "without the government, who will build the roads" has resounded as a challenge to the philosophy of freedom of the right. So much so that it seems to become a weapon of the left to "checkmate" those who have not yet mastered the principles of market operation. If it is not possible to prove the feasibility of applying the principle of freedom to a market as important as the road (which greatly affects the national logistics system), then the whole free market theory of the right We see it as throwing away the basket. Therefore, I hope this article will provide more arguments for you - true freedom lovers - to firmly believe in the path we follow. Despite encountering similar questions likeWho operates the bus system? Who does the power grid? Who provides clean water lines? Who manages public sanitation? the answer remains the same: Not the government.

All credit goes to trantuansang.com.

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Distribution channel (part 1): How to establish a distribution channel?

Building and developing distribution channels is an absolutely important job for any business, especially a manufacturer. To be honest, the channel strategy sounds great, behind it is the pain that few people understand. If the management is not successful, then it will definitely be SUCCESSFUL. As the West puts it, it is “a pain in the ass” in the truest sense of the word. How to set up the optimal distribution channel structure is difficult, balancing the sales channels is even more difficult, and also having to resolve conflicts when intermediaries fight in the market makes us scratch our heads.

So we have to optimize the distribution channel structure

I like the explanation of Mr. Nguyen Thanh Tan (CEO BrainMark) about the distribution channel as follows: In business, the distribution system is like a canal system that brings water back to refresh the fields. In order for water to reach each field, it is necessary to clear the flow in all branches of canals. Whether water flows fast, flows strongly or not depends on many different factors such as the size of the canal, the slope of the flow, the degree of obstruction of the water flow, etc.

Similarly, a distribution channel is a system consisting of individuals, business organizations or intermediaries (collectively referred to as distribution members) whose task is to bring products from the manufacturer. to the end consumer quickly and efficiently. Any failure in the system will be traded off in sales and market share, so the success or failure of the business depends almost entirely on the distribution system.

What is a distribution channel and how does it work?

First, we start with the manufacturer. The manufacturer is the unit that makes the product/brand and then pushes the goods down a network of intermediate distribution, so that the product reaches as many consumers as possible. Usually these intermediaries include distributors, wholesalers and retailers. Such a system will help form a logistics network, increase the coverage of goods and at the same time represent the brand in providing additional services (such as warranty, shipping).

Previously, the distribution channel was called a distribution channel by academics , but people gradually realized that intermediaries not only perform sales and distribution tasks, but also take care of marketing, so it is also called with a new name of marketing channel . Goldkhul (2005) defines channel marketing as " a system that involves the task, directly or indirectly, of creating something of value for use and consumption ".

But it would be wrong to assume that the perfect distribution channel structure must have all the layers as above. Remember, the more levels of distribution, the more you face two big problems (1) Discounts increase with each level of distribution – which will make your product more expensive and less competitive in the market. ; or (2) Maintain a competitive selling price by controlling the intermediary's margin – this will put you at a disadvantage in the race for coverage with other brands.

So, how to set up a distribution channel system?

If you don't know where to start when setting up a distribution channel system, I share with you a secret: take consumer demand as a guideline.

Trust me. Building a successful distribution channel is when you ensure the user experience throughout their purchase journey (consumer journey).

We often get stuck in the rut of thinking with a bunch of tunnel theories about channel management and that makes it hard to keep up with new trends. For example, the manufacturer should not build a retail store because of the risk of conflict.

Is that true? Let's think outside the box!

NOT ALL STORE IS FOR SALE. Remember that. No one will reveal to you this strategic level secret. Samsung is an example, if you are observant you will see that their distribution channel system is set up to optimize the user experience to the highest level.

Samsung users receive information through mass media channels => Then experience products at high-class booths at shopping centers (Example: Samsung Showcase in Bitexco) => Go to Thegioididong for advice about products => Go home to buy cheap goods on Tiki. This is the art of cross channel .

No teacher or professor in the classroom will tell you this, unless you've struggled in the bloody marketplace and realized it. Have you ever wondered why Samsung or big fashion brands often pour a mountain of money to make flagship stores and bake hundreds of millions per month to maintain premises in prime locations such as shopping centers even though at this time of year? also feel sluggish? Have you ever wondered what is "Trung Nguyen vision" that Mr. Dang Le Nguyen Vu always mentions?

However, it is not good to follow Samsung, or try to build a giant ecosystem like Trung Nguyen. What I want to emphasize is that you must have strategic goals for each distribution channel, which must be directed towards a single purpose: satisfying consumer needs .

Five steps to building a distribution channel

Step 1: Identify target consumers

Start by putting yourself in the shoes of the consumer, or where they want to go. If you don't know? Don't hesitate without surveying your consumers right away:

Where do they buy or use the product TODAY?

Where do they want to buy the product (but it doesn't have the product they're looking for)?

What services do they expect to come with the product? How much are they willing to pay for such services?

How do they want those services to go with the product?

Who do they trust the most when making purchasing decisions?

It is possible to sketch a consumer portrait through the following criteria: geographical location, demographics (age, gender, occupation, income), personal characteristics, needs, reasons for purchase, channel purchase, purchase intent, benefit sought from the product (functional and emotional), etc

Note, do not target too wide or too narrow audience, as well as your user picture do not be too sketchy or too detailed because it only makes you (1) waste resources and (2) miss the audience. potential.

Step 2: Determine distribution goals

S - Specific: What do you want to achieve? M – Measurable: Specific numbers? A – Achievable: Can it be done? R – Realistic: Compared to the current situation? T – Timebound: How long will it take to complete?

Note, distribution goals should be tied to your business strategy and market (positioning) strategy. Remember, if you have to adjust your distribution strategy, you need to adjust your business strategy, marketing strategy, and production strategy.

Step 3: Define product attributes

You cannot sell an expensive Rolex watch in Ba Chieu market.

You cannot sell cars in BigC or Co.opmart supermarkets.

You can sell your house online on Chotot, but not on Tiki.

Therefore the sales funnel needs to match the product attributes OR the product needs to be designed to match the sales funnel. Those attributes include:

Negotiate : Does the product have requirements on intellectual property rights, terms of use, price, warranty, pre-purchase support, capital raising, etc. and rattan?

Knowledge : Does the sales channel thoroughly understand the benefits, uses and purposes of the product?

Personalization : Does the product require personalization?

Integration : Does the product need to integrate with other products?

Positioning : High-end/expensive or popular/popular product?

Information : Does it take a lot of effort to educate users about the product?

Stage : Where is the product in its life cycle? See also: Using a distributor or a direct sales team?

Risks : What are the risks of cooperating with that sales channel?

Note, simplifying products, streamlining processes (ordering, payment, logistics, ...) are the keys to help you access more sales channels.

Step 4: Analyze profitability

Financially, the selling channel needs to show its profitability . This can be done by comparing the ratio of sales (or margin) to cost of goods sold. If the sales channel does not meet the financial goals then:

(1) You can develop new product lines, new segments suitable for the channel;

Or (2) temporarily ignore this selling channel and look for opportunities to BACK in the future (don't give up forever).

Refer to the distribution margin analysis method in the article The art of discounting (Part 2): Discounting for distribution intermediaries.

For business goals, the sales channel needs to show its meaning and benefits in contributing indirectly to sales. For example, Costco is a cheap sales channel in the US, why do many Vietnamese brands accept to sell at a loss to stay here? Because Costco America is one of the largest retail chains in the world, listing in this system will help elevate the brand's position and thereby serve as a basis for negotiations with other systems. Or why does Abbott's milk appear all over Western drugstores even though it's rare to see anyone buy milk in this channel? Because the reputation of the pharmacists will guarantee the quality of this brand's milk and strengthen the "reason to believe" for consumers. Don't forget the rule NOT ALL STORE IS FOR SALE.

Step 5: Select the channel and draw the distribution channel structure

List all channel members in your industry, sort and “grade” each channel one by one. If you do not know the difference between the industry and the market, you can see the article What is the market? What is Marketing? Market share method .

After completing the channel selection matrix table, you should be able to filter out the appropriate distribution channels and sketch out the complete distribution channel structure diagram.

Once we have the channel map, we next need to determine the criteria for selecting channel members, which can be: company size, experience, credit-financial conditions, debt, sales force products, logistics, product lines, distribution, relationships, market dominance, management success, management ability, reporting, sales implementation, attitudes and attitudes, store format, etc. Of course, the standard is completely dependent on your company policy.

Conclude

Setting up a distribution channel structure is never easy, but it is a necessary first step to getting a product to market. From there, we can deploy the appropriate channel pricing strategy and buying process (mentioned in this article ), and a perfect marketing plan for channel members and consumers ( pull & push strategy).

In addition, it is important to note that the channel structure must always change from time to time, ie not fixed. Because having an excellent strategy in 3-5 years does not mean that the brand will definitely win, but the results are almost determined by the activities implemented during the year. Sometimes planning is one thing, implementation is another. Sometimes we "mess up" even the distribution channel. It leads to three results:

One is that , in the best case scenario, the distribution channel will help you drive sales and increase market share in ways you can't believe. Consumers receive full information and pre-sale and after-sale service. In general, the experience is optimized to the highest level. What you need to do is continue to maintain the effectiveness of the channel.

Second , the distribution channel efficiency is only average. You're not getting the number of channel members and coverage you want, but the current system is running pretty well. Therefore, your job now is to find ways to improve the channel to increase distribution efficiency.

Third , your distribution channel has problems causing revenue and coverage to drop dramatically. Users do not have access to information, they turn away from the brand because the accompanying service is not available or causes overwhelming disappointment. Brand is constantly receiving complaints, and channel members are fighting for each other's areas, fighting each other in the market. At that time, we will need the solutions in Part 2: Distribution channel conflicts.

All credit goes to trantuansang.com.

[maybeyoumissthisf-kingpost]

Distribution channel (part 2): Channel conflict

Conflict is always inevitable in business – and the most unpredictable conflict for a business, perhaps, is distribution channel conflict . In the race for market share, most businesses have to establish a network, called a distribution channel system, consisting of many levels of intermediaries to bring products to the end-consumer quickly. fastest and most effective. However, because this system is set up and managed by people, disagreements are bound to arise. These disagreements are neither born nor destroyed, but are transferred from the intermediary to the producer. Right. The producer is always the WINNER of all damages – from sales to complaints from channel members and consumers when intermediaries fight in the market.

Welcome to distribution channel conflict

Before we talk about the effects of channel conflict on your business, it's important to understand the different types of channel conflict. First, look at the normal distribution procedure below. Each level ( or layer ) of distribution depends on the next, which is why even the slightest interruption in the process can create system-wide conflicts.

In short, channel conflict is a situation in which channel members have disputes and disagreements that affect each other's sales, profits, market share or business goals.

If I had to associate channel conflict with any color, I think it would be yellow. Abstractly, yellow represents betrayal and conflict; More realistically, yellow reminds me of a loaf of bread, but it's also the color of 💩.

There are many causes of distribution channel conflict

Try to think of distribution margin as a cake (learn more about distribution margin in Part 2 of The Art of Discount: Discounting Distributors ). As a maker, you can cut the pie in two ways:

One , sell directly to the consumer and take the whole pie.

Two , through distribution intermediaries to share the burden of transportation, storage, sales, etc. You split the pie among many others.

Of course, everyone wants to win the bigger pie. BOOM. Occur conflicts!

Channel conflict can be divided into two groups of causes, including structural group and attitudinal group .

GroupSource of conflictExpressionEg

Structural ConflictDisagreement of goalsWhen the two parties cannot reach consensus on coordinating actions.Brand opens online storefront (target market share) causing channel conflict with retailer (target revenue, profit).

Disagreement over scope of activitiesWhen a party fails to comply with the defined scope of activities.This Distributor sells to another distributor's distribution area.

Competition for resourcesWhen the demand for resources in the channel exceeds the allowable supply.Brand opens new markets, distributors win exclusive subscriptions.

Disagreement over cost sharingWhen two parties disagree on cost sharing.Brand wants the retailer to improve customer service, but it increases the retailer's operating costs.

Conflict of opinionDisagreement over role/functionWhen a party fails to properly perform its role/function or is not clearly divided.Distributor is authorized by the brand to do marketing but does not do / does not do well.

MisperceptionWhen a party misunderstands (due to experience, attitude and bias) while accessing information.Distributor misunderstands the essence between TPR (trade promotion rate) and discount*.

Expectations conflictWhen one party's expectations are not properly met (sales, policies, bonuses, support, etc.)Brand failed campaign causing distributor to increase inventory (due to high sell-out expectations)

MiscommunicationWhen falsifying information from one party is detrimental to the other party.Brand is slow to announce new products/new campaigns to channel members.

*The essence of trade promotion is the entrustment of the brand to the distributor to carry out trade promotion activities, because the brand cannot directly carry out activities due to reasons related to geographical distance, resources, ability market access/knowledge, etc., compared to a distributor. However, many distributors mistake TPR as a regular discount and use it to increase margin.

Three types of conflicts are common in distribution channels

1. Vertical channel conflict occurs when many intermediaries at different distribution levels in the channel arise conflict, such as distributor vs wholesaler, wholesaler vs retailer.

The market has always existed an unchanging law: sellers always try to sell at the highest price, and buyers always want to buy at the lowest price. It creates a painful fact that higher middlemen (such as distributor, wholesaler) are always ready to cut layers on the channel to increase margin; and buyers "despite" every opportunity to buy cheap goods, not even excluding buying directly from the manufacturer.

2. Horizontal channel conflict occurs when many intermediaries of the same distribution have conflicts, such as retailer vs retailer, wholesaler vs wholesaler.

There is a big difference between horizontal conflict and healthy competition. If store 1 and store 2 continuously optimize sales performance to compete for the “best dealer of the year” award, for example, that is called competition. However, if they break the committed principles and encroach on each other's operating areas, then it is clearly a conflict. This is one of the most common conflicts and can happen at many different levels across the distribution channel, not necessarily just the retailer.

3. Multiple channel conflict in distribution occurs when a manufacturer sells a product on multiple channels, i.e. a distributor competes directly with his channel members in the same but DIFFERENT market. PRICE.

Talking more about multi-channel conflict, it is most noticeable when manufacturers sell online and compete directly with retailers. Today, the growth of e-commerce poses an even greater challenge for manufacturers whether to sell or not to retail online. There are some brands that accept to sacrifice online sales to avoid conflicts with retailers; However, some other brands see the great opportunity and potential of the online market, thanks to which multi-channel, omni-channel and cross-channel thrive before today's 4.0 marketing trend. However, these methods, if done incorrectly, can easily lead to multi-channel conflicts; but if managed well, channel efficiency can be promoted beyond expectations, typically Samsung (see Samsung's cross-channel art in Part 1: How to set up a distribution channel structure)).

How to manage distribution channel conflicts?

A cake that is torn by many people means that the table is full, and a cake that is not contested means that there are still empty seats somewhere. As in distribution, the absence of channel conflict is a sign that the product has not covered the entire market. As a channel admin, you should feel nervous.

It is a fact that channel conflict cannot be prevented, it can only be minimized. And it would be a mistake to try to eliminate channel conflict at all costs. Don't forget that conflict is also a driving force for growth.

Actually, channel conflict is not necessarily bad, depending on the extent to which it exists in two states: " positive " ( constructive ) or " negative " ( destructive ).

Channel conflict is positive when it helps promote channel efficiency, by promoting adaptability to changes in the market and keeping channel members focused and active. From a producer's perspective, channel conflict presents systemic problems with distribution channel structure, channel management, as well as contract categories and terms. However, too much conflict will inevitably lead to negativity. Thereby, we see that there is a close relationship between channel conflict and channel performance. Therefore, the goal of channel management is to both optimize market coverage and keep channel conflicts under control.

Maximum point of conflict

In a position where I called climax conflict ( threshold ), it is the culmination of conflict to a channel leading to members actually take actions serious enough that channel performance decline. The next stage, yes that's right, is when your channel goes from " constructive " to " destructive " – in other words, this is where the bread turns 💩 .

There is no formula that can accurately determine the threshold of conflict, it is mainly based on your business sense . Based on my observations, I have found that large and established businesses often have higher threshold scores , proving that size and experience are two factors that help improve conflict management effectiveness. However, in my opinion there are two indicators that you need to pay attention to when assessing the state of conflict.

Indicator 1: Conflict level (conflict index)

When channel members have a conflict in the market, immediately, all reactions will focus on the producer. That's why I said at the beginning of the article that channel conflict is "neither created nor destroyed, but transferred from the intermediate level to the producer". Accordingly, the brand can identify conflict through channel member responses and assess its stress level using Sarat's Dispute Pyramid (1984).

At the first step of escalation, the channel member realizes that an unusual problem in the channel is affecting their business. In the second stage, they begin to raise the issue with the stakeholders (or complaint step). In the third stage, they rely on the provisions of the contract to hold the other party responsible for the current damages. Stage four involves noncooperative action such as stopping an order or delaying payment. In stage five, tensions peak when the issue cannot be resolved through bilateral negotiations but leads to litigation.

HOWEVER. The conflict escalates, but is it really that serious? When disagreements arise, the parties to the conflict tend to consider the issue extremely emotional. Especially channel members often overreact, making the problem go beyond reality. As a channel manager, you need to be rational when measuring conflict . Using your business sense , answer these four questions:

Question 1: How many problems arise? What issues are central to conflict (now and in the future)?

Question 2: How important is that problem? How important are each of these issues to channel members (in terms of sales, profits, market share)? Rate the importance of the problem on a 10-point scale, from completely unimportant to extremely important .

Question 3: How often do these disagreements occur? How many times have these problems happened to channel members? Often conflict creates conflict. Rate frequency on a 10-point scale, from never to very often .

Question 4: What is the level of inconsistency? The channel member's reaction will reflect how contradictory the issue is. Using Sarat's Dispute Pyramid, rate on a 10-point scale, from no stress to very stressful .

DISTRIBUTION CHANNEL CONFIDENTIAL CONFIDENTIAL Formula

N problem, we take the number of degrees sigma important area ( Importance ), frequency ( frequency ) and the conflict ( intensity ) of each issue i to calculate an index conflicts ( Conflict Index ).

Let's "take time to take action". The CI Conflict Index is a useful tool to help channel administrators properly assess the conflict situation. The Conflict Index not only helps us measure and track the level of channel conflict over time, but also shows us what are the main causes of high conflict. If any of the three indicators of importance , frequency , and inconsistency are low, it means that the problem is not the cause of the conflict (a factor of zero will results in a common index of 0).

Indicator 2: Channel efficiency

To what extent is channel conflict considered harmful? That's when we see channel performance continuously decline. So CE channel performance is the second metric that helps you determine when channel conflicts actually become ' destructive' . So how to measure CE?

Channel efficiency is the total cost of channel investment to achieve a certain level of sales. The investment cost for the channel, here, can be understood as promotion**.

Where: CE : channel efficiency PPS = Promotion / Sales (promotion per sales volume)

** It is necessary to clearly distinguish between promotion and advertising . The focus of advertising is to create a reason to buy, the focus of promotion is to create an incentive to buy. Therefore, the investment cost for the channel, here, is promotional activities for consumers including sample testing, display, coupon, free trial, trade show,... and promotional activities for sales channel include Discounts, bonuses, contests, giveaways, etc.

For example, to be able to sell 100 products , your business needs to spend $50,000 in sales discounts (for distributors) and $20,000 in promotional activities for winning cards (for consumers), the total investment for the channel is $70,000 . equivalent to $700/product .

Assuming your business can sell 100 products with less spending, say $40,000 for sales discounts and $10,000 for scratch cards, the total channel investment is now $50,000 , or $500/product .

At this point, the channel efficiency increases (1 – 500/700)*100% = 29%

Through two indicators of collision level and channel performance, this is how I find the threshold of collision.

What is the "negative" channel conflict?

The wisest approach when faced with channel conflict is not to avoid or try to eliminate it, but to bring it under control. When you realize that a conflict has turned into a " destructive " state , it is necessary to carefully evaluate the situation before taking specific action.

There are many solutions to minimize distribution channel conflicts. However, the actual channel conflict is much more complex, so it is difficult to determine the appropriate approach for each specific case, but can only rely on frameworks for strategic thinking. One of those decision support tools is Bucklin's Decision-Making Matrix .

Based on the action map above, when the threshold for conflict and its impact on channel members' interests is high, you need to act immediately to calm the situation.

9 STEPS TO MANAGE DISTRIBUTION CHANNEL CONFLICTS

In the past, Co Tu composed Hong Pham Cuu Tru, implying 9 models of Heaven and Earth, and presented it to Vo Vuong as a charter to rule the world. Today, I find that inspiration in Maria Sundvall's 9-step model of channel management, which includes 3 action groups: stub , resolve, and maintain .

1. Power-base development : As a producer, you own reward power , coercive power , legitimate power. ), referent power and expert power . Using these 5 weapons skillfully will give you the upper hand when working with channel members. The key to success is:

Create a win-win atmosphere.

Start by describing the problem rather than evaluating it.

Create an atmosphere of equal and informal negotiation.

2. Relational Acceptance : When trust and empathy are high, most attempts at communication will easily succeed. Conversely, when trust and empathy are low, communication will easily go astray and lead to misunderstanding no matter how clearly and intelligently the problem is presented. The key to success is:

Build trust and empathy.

Encourage both parties to express their feelings and thoughts.

Seek honest and sincere interaction.

Listen, show objectivity, and empathize with the other party.

3. Meaningful Communication : Communication in conflict management is a two-way interactive process, requiring the administrator's ability to listen deeply as well as send positive and constructive messages. build. The key to success is:

Make sure both sides agree on the issue of exchange and in the same frame of reference.

Improves agility and adaptability, promotes joint dynamics.

Listen deeply and use appropriate judgment when responding.

Put yourself in the other person's shoes.

4. Assumption Analysis : Effective conflict management also requires being able to identify and fact-check the conflicting assumptions made by channel members. The key to success is:

Identify and test the reality of reasonable (logical) assumptions.

Thorough understanding of issues and disagreements.

5. Objective Identification : When each side puts too much ego on the negotiating table, they will increasingly move away from the common goal. Therefore, that goal needs to be emphasized once again to remind both parties that it is no longer a problem of any individual member, but a common problem of the whole channel. Thereby, the parties can take advantage of each other's advantages in the long term to bring about a competitive advantage in the market - something that the parties will not achieve alone. The key to success is:

Set an ultimate goal that all must adhere to.

Focus on the common good.

6. Alternative Selection : The more options the better. The parties to the conflict often focus too much on a single option (which leads to current disagreements), forgetting that there are always different ways to solve the problem. So it is important that we sit down and brainstorm together about the possibilities before coming to an agreement on something. The key to success is:

Offer multiple options.

Identify common interests.

Set goals for the common good as selection criteria.

7. Action Agreement : Once the common goals to be achieved and the best alternatives have been set together, it is important to establish an agreement to implement the actions. that. This agreement initially aims to bring the verbally agreed decisions into a specific document, specifying the obligations of both sides. After that, the problem needs to be approached systematically and methodically to achieve the planned goals, that is, to define a specific time, event, achievement and purpose when implementing. The key to success is:

Define tasks, list and assign responsibilities.

Specify performance measurement criteria.

8. Feedback Review : After implementing the agreement, it is indispensable to review the feedback and evaluate the results achieved of the whole process. This is considered necessary because people's interests, perceptions and emotions change over time. On the one hand to look back on what has been done, on the other hand to detect further changes and adjust accordingly. The key to success is:

Build an information exchange system.

Strategic meaning through communication.

Progressive and willing to change perception.

Review the content of the agreement when needed.

9. Continuing Oversight : Usually, channel conflicts play an important role in the growth and development of each party, so continuous monitoring is extremely necessary in management. conflict. This step can be taken by sitting down and discussing and commenting naturally, but honestly, about the conflict resolution process that the two sides have taken seriously, and will not let it happen. happen again. The key to success is:

Be careful not to follow the same path of conflict.

Communicate regularly about the results committed by both parties.

Conclude

We say the worst is still the manufacturer, in addition to taking care of a stable supply of raw materials, transportation, storage, factory maintenance, labor, etc., they also have to satisfy all members. distribution channel member. No brand succeeds without experiencing channel conflict, as a price to pay in exchange for growth and development. Channel administrators who want to manage conflict as a tool to promote change and adjustment - instead of seeking to resolve conflicts as early as possible, must recognize the usefulness of conflict, that it is a positive force to encourage reform. But distribution channel conflict is also a double-edged sword, if you do not use it properly, you will pay a very heavy price.

All credit goes to trantuansang.com.

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Donald Trump: 4 years, 1 clown, and 25 achievements for the American circus

America has a clown. The guy is good at comedy. Daft. Freaky sometimes. But he is the voice, in the middle of society is a big circus. I'm not talking about the famous Joker Arthur Fleck in Gotham City, but I'm talking about a president of a democratic America. Donald Trump. For years, people called him "the clown" in the White House. Never before has the image of an American president been so indiscriminately spread hate by the media. They use the most disgusting words to describe Trump. They cursed like delirium over his every word and action. But it is he who, despite the ridicule, is the clown who rips through American politics, unmasks all politicians hiding in the guise of democracy, and exposes the monsters lurking in the swamp. So he was hated, even hated. But if you ignore the blind love and hate, what remains in you about the things Agent Orange has done in the past four years?

What the clown Donald Trump has done for America and the world in the past four years

1. America's "aggressive" clown has brought home four (04) Peace Agreements in the Middle East, which no one has been able to do in the past 71 years, despite all efforts to intervene in politics and constant warfare. Still no results. This achievement, so much so that US Defense Secretary Mark Esper had to say that "this is really a great success for Trump".

2. The clown who "doesn't know anything about politics" silenced the world's cynical name, North Korea, without spending a single bullet, helping the United States and the world escape a devastating nuclear war, promoting inter-Korean peace and bring safety to ally Japan and the entire West Coast of the United States - something that made Obama headache unable to find a solution after 8 long years.

3. America's "warlike" clown is the first President in the White House who has not brought the United States into a new war, since Eisenhower's time.

4. The "stupid" clown has rearranged the NATO order, forcing allies to fulfill their responsibility for contributing to their defense budgets, not relying on the US forever.

5. The "cowardly" clown eliminated the world terrorist - Iranian Islamic general Qasem Soleimani of the Quds Force, even though he knew that he would have to face retaliation from the enemy, without Specifically, a reward of $ 80 million for those who successfully assassinate Trump.

6. The "incompetent" clown (according to a survey by ABC News) single-handedly rebuilt the US military's strength to re-establish world order, curbing China's aggression in the East Sea, as well as protecting small countries from threats and invasions from big countries. Who remembers what a crippled U.S. military was under Obama, when 214 key generals and admirals were fired in just his first year in office? Who else remembers how China grew and thrived in the South China Sea under Obama's 8 years? Does anyone remember the president of the world's number one power being sent to the alley after visiting China?

7. The "rogue" clown was the first president to visit and pray at the Wailing Wall and the Church of the Holy Sepulcher in Jerusalem. He was also the first head of the White House to recognize Jerusalem as the capital of Israel and move the US embassy to this city.

8. The "dangerous" clown is the only president who has successfully destroyed the terror named ISIS - the world's largest Islamic terrorist organization to bring peace to mankind. Fulfill his greatest promise to the American people and the people of the world.

9. The clown "religious oppression" is the one who called for an end to religious persecution and signed an executive order promoting international religious freedom, calling for $50 million for programs to quell the violence. religion and persecution abroad, as well as to protect religious minorities.

10. The clown "ruining the US economy" has turned the tide of US-China relations to bring hundreds of businesses back to the US, reduce taxes and protect them from the scheme to steal intellectual property and technology. of China, recovering the ups and downs of the economy from the Obama era, setting a historic record high on the stock exchange, making the economy vibrant again, bringing interest rates to near zero and income per capita highest (since 1967).

11. This "cruel" clown helped Americans pay less in taxes, increasing the tax deduction from $12,700 to nearly double $24,000 per couple, and from $6,350 to $12,000 for singles, with a positive impact. up tens of millions of American pension accounts.

12. The "greedy" clown only received a salary of 1 USD a year during the presidency, in support of cutting government spending and the tax burden of the people.

13. That "racist" clown is the president that provides the most jobs for blacks and Latinos, making their unemployment rates the lowest of all lifetimes. US president. Again, ALL.

14. The "ignorant" clown is the one who sees the lies and injustice in the Paris Agreement (or Climate Change Agreement), pulling the US out of the plot to destroy the coal - oil industry and the risk of widespread unemployment for the United States.

15. The "tricky" clown is the one who stands up to oppose the absurd COVID-19 relief package of the leftist politician, to return the correct amount of support of 2000 USD for each citizen, instead of only 600 USD and the share The rest are distributed to irrelevant useless items.

16. The clown who often creates "hate speech" is the recipient of the most attacks, insults and reproaches from the left (supporters of Socialism in the US). Ironically, he was nominated for the 2021 Nobel Peace Prize.

17. The clown or "disgusting woman" is the President of the Republic who appoints the most female Federal Appellate judges since Ronald Reagan, losing only 1 person compared to the Obama era. If you count the single-term presidents alone, no one appoints as many female judges as Trump.

18. The "liar" clown has exposed the face of hypocrisy in the rest of the world, exposing the entire corrupt swamp of Democrats, and Republicans, FBI, CIA, NSA and Big Tech . The clown tells you things the media wants to keep hidden. He criticized all the bureaucracy in the government. He, simply, just raised the voice of an ordinary citizen in front of the current state of the country.

19. The clown who "failed to fight the Wuhan virus" was the first to call for a closure with China while the left was still struggling about racism and xenophobia. He successfully promoted the process of preparing and producing the Chinese flu vaccine in just ONE YEAR, helping America once again affirm its leading role on the world's scientific and technical map. Don't forget that the world still has no vaccines for SARS, Ebola, bird flu and other diseases under the previous president.

20. The clown who is labeled "dictator", "fascist" or "second Hitler of the world" is the one who gets hit the most by the media. He wants to protect Americans, they call it Populism. He wants America great again, they call it White supremacy.

21. The "perverted" clown has a well-ordered and warm family, a good wife and all children are talented and human; rather than smoke marijuana and join the antifa rebel organization like someone's black daughter; not like the Hunter who was addicted, corrupt and kicked out of someone else's army.

22. The clown who "smashes American democracy" is the one who is most tragically suppressed by that democracy, permanently banned from speaking on social networks and behind the cheers of the left. (including Michelle Obama) – who always preach about democracy and human rights, oppose censorship of authoritarian regimes in the world. When he was in office, he did not forbid anyone to speak. When he was about to leave the White House, they tried to silence him.

23. The Clown DOES NOT "Make America Divide". That division has existed as a smoldering cancer in the heart of America for a long time. The lovable people I know, the respected professors, suddenly defiantly insulting those who do not share their views as stupid, are a disgrace. It's all at Trump? Are not. It is by themselves. Deep down they absolutely disagree with different opinions, whether Trump-Trump or not-Trump, they themselves have divided themselves from those who do not think the same. Trump is not an angel of healing, but tearing down the hypocritical veil of false political correctness and oppressing the true inner thoughts of each person.

24. The "loser" and seemingly "most hated" clown is the most respected man in America according to a Gallup survey, taking the position that Obama has occupied for the past 12 years. While the president-elect with the highest popular vote in history, Joe Biden received only 6% of the support (one-third of Trump), reflecting the exact opposite of the presidential election results.

25. Finally, the clown that everyone considers "arrogant" is a man who bows to God, to the American flag, to prayers for the victims of Hurricane Harvey, to his promise to make America. great again. He does not mock God. He did not burn the flag. He does not stand on the rule of law. He does not consider himself to be the truth. He also did not ordain anything as orthodox. He was not complacent, he just wanted to continue writing the American dream. Therefore, he never let America be threatened and had to kneel before any force.

In just two days, the clown Donald Trump will leave the White House in the joy and ecstasy of vengeful souls. The hatred for Trump is so deep that it doesn't matter who will give his inaugural address on January 20, as long as #NoTrump, the other replacement is anyone, even a person all the time. 47 years of no political achievements. Perhaps, the emotion of love and hate has completely obscured human reason. They are unable to view Trump's legacy fairly, their prisms clouded by overwhelming hatred of an individual. Although they talk about democracy all the time, they are willing to trample on their long-held values ​​to eliminate the opposition from the game. We say, look inside from the outside and see yourself from others, what kind of person you are, you will think others are like that.Life is like a mirror. When you look at people, you can't see people, only you. Now you laugh at the clown, tomorrow you will see your mind reflected there.

Honestly, are you fair to Trump?

All credit goes to trantuansang.com.

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Biggest world events in 2020

So 2020 is about to end with a lot of remarkable events, but I'm not sure if it's optimistic or not, let alone pessimistic. When I was a child, I often heard my grandparents tell me about the difficulties in the past, how they lived hard in the past so that today we can have enough food and warm clothes. Heartbroken. I admire the old people so much. However, suddenly looking back at what happened in the past year 2020, I tapped my forehead and thought… and then unconsciously patted my thigh with pleasure because finally, I also had something to later "converse" with my children and grandchildren that I had How can we survive this year of calamity?

World events in 2020 to tell later on

The year 2020 has passed, gently leaving the Wuhan flu epidemic to continue raging with the strong rise of the global "cholera" pandemic. The public went crazy watching the politicians "go to solve" the crazy political affairs. People praising the smell, people pouting and criticizing. Meanwhile, the media invited the Weasel Foxes to play the game of hiding cats 💩 to hide their "hunter" nature. Faced with that gray prospect, suffering humanity raised its face to the sky and asked God, what could be more tragic? At the end of the year, God looked down and said, "Biden!" then banged on the table and cursed at the father who crossed his face.

Sorry for the rambling, but I like to sarcastic before I get to the post. Because rarely have the opportunity to experience with readers on the last day of the year. Here are some notable events in 2020 of the world that I would like to share again.

1. Wildfires in Australia and California (USA)

2020 witnessed two intense wildfires in Australia and California (USA). In Australia alone, it can be said that this is the most fierce wildfire disaster in the country's history, when forest fires continuously lasted from December 2019 to 2020 and destroyed nearly 20 million hectares of forest. , displaced thousands of people and killed at least 34 people.

Taking this opportunity, "radical" suffragettes immediately sounded the alarm about climate change, that global warming is the cause of forest fires, despite the fact that the number of fires Forest occurrence is much less this year than the average in previous years, according to the European Union's (EU) Copernicus Atmospheric Monitoring Service (CAMS). I think climate change also knows how to "distinct regions" because it only chooses forests in capitalist countries to burn, not other countries.

2. The US killed Iranian general Qasem Soleimani

On January 3, 2020, amid rising tensions between the United States and Iran, the United States carried out a drone strike on a convoy near Baghdad International Airport that was carrying some The passengers included Quds Force commander of Iran's Islamic Revolutionary Guard Corps (IRGC) Major General Qasem Soleimani and Iraqi People's Mobilization Forces (PMF/PMU) commander Abu Mahdi al-Muhandis, and soldiers. senior officials of the two sides.

From the scene images, Soleimani's body was identified by the ring he wore on his finger and the sausage bar (100% meat) that fell off but was still intact. At the same time, Iran's Islamic Revolutionary Guard Corps also confirmed the death of General Soleimani.

3. Prince Harry and Duchess Meghan Markle abandon the British Royal Family

Prince Harry and Duchess Meghan shocked the Queen in particular, and the world in general, when they announced they were relinquishing their status as senior members of the British Royal Family on January 8. Royal officials fear this will seriously damage the monarchy's future. It is interesting that while the world views this as an important political event, only Vietnamese people approach it as a showbitch comedy.

4. Wuhan flu (aka COVID-19)

On January 9, the World Health Organization (WHO) announced about a deadly virus that appeared in Wuhan, China. In just a few months, the virus has spread rapidly globally to more than 20 million people and caused at least 750,000 deaths. However, thanks to the relentless efforts of WHO Director-General Tedros and the effective support of the media, the Wuhan flu (Wuhan Virus) finally succeeded in… in turn changing the name Wuhan flu. into Coronavirus, 2019-nCoV, COVID-19 and SARS-CoV-2. Currently, this Wuhan Virus has many new strains, it is expected that the new name may be COVID-19 Pro or COVID-19 Pro Max.

5. Impeaching President Donald Trump

President Donald Trump faced an impeachment trial in January initiated by Nancy Pelosi, the Speaker of the US House of Representatives, with the aim of removing his presidency in January 2020. Democrats have repeatedly accused Trump and his lawyer Rudy Giuliani of abusing their power to press the Ukrainian government to investigate the corruption scandal of Hunter Biden, son of Joe Biden. According to the indictment, Mr. Trump (probably) committed bribery by asking for political favors in exchange for official action.

Finally, President Donald Trump was acquitted on February 5 due to the lack of evidence of impeachment.

6. Stock market wobbles in 2020

The Wuhan pandemic not only caused heavy loss of life, but also greatly affected the world economy. Many countries were forced to close down (lockdown), causing a serious decline in consumption. The Dow Jones Industrial Average plunged 2997 points as investors panicked about the impact of the continued spread of the coronavirus, a record since 1987.

7. Oil prices went negative for the first time in history

Also because of the Wuhan flu, the US WTI oil price for the first time in history fell to a negative level on April 20, with a selling price of -37.63 USD/barrel. That is, the seller must pay the buyer. Fortunately, that ridiculous thing did not happen in Vietnam, people at that time only had to fill up with gasoline at a "stable" price of about 16,000 VND per liter.

8. Black Lives Matter protest for George Floyd

In fact, Black Lives Matter protests are still as common as usual in the US, but the case of the black brother George Floyd died after being pinned down by the police, along with the viral saying "I can't breathe" (I can't breathe). breathe) has sparked a wave of powerful protests and riots across the United States to demand an end to police brutality and anti-racism. That movement was enthusiastically supported by the left everywhere, with Biden's knees on all fronts in memory of this "national hero".

However, the death of George Floyd was later revealed that he did not die of asphyxiation, and also that "no life-threatening injuries were identified at the autopsy of George Floyd". In addition, the cadaver nasal swab was tested and determined that George Floyd was positive for the Wuhan virus (which often makes it difficult for the victim to breathe). At the same time, the black man was also found to be positive for many other banned substances and drugs.

The video of the police arresting George Floyd was also posted and showed that this young man was accused of using fake bills, being drunk, showing signs of being high and opposing the police many times when he was arrested.

9. Joe Biden Becomes Democratic Presidential Candidate

Joe Biden officially defeated more than 20 other Democratic candidates (including Bernie Sanders and Elizabeth Warren) to become the 2020 presidential candidate.

10. Twitter hacked by a 17-year-old

A young weitei-age in Florida, named Graham Clark, has successfully hacked the Twitter accounts of famous political figures, artists and businessmen - including Joe Biden, Bill Gates, Elon Musk and Kanye West - to commit bitcoin fraud.

11. Explosions in Lebanon in 2020

A massive explosion at the port city of Beirut occurred on August 4 due to the accidental detonation of 2750 tons of ammonium nitrate, equivalent to 1200 tons of TNT, which was confiscated by the state from the abandoned ship MV Rhosus and stored at port for six years without any precautions. The explosion killed 190 people and injured thousands more.

12. Kamala Harris Selected as Democratic Vice Presidential Candidate

On August 11, Biden announced he had selected California Senator Kamala Harris as a co-conspirator in the office of president. Thereby Harris became the first black and Asian woman to serve as Vice President. Many predicted that Ms. Harris could become the legitimate president of the United States when Biden once said he would cede his presidency in case his health was not guaranteed. That belief was further strengthened when two days ago, on December 29, Biden continued to "confoundly" call Harris the President-elect of the United States.

13. Ruth Bader Ginsburg passes away

United States Supreme Court Justice Ruth Bader Ginsburg died on September 18 at the age of 87. Amy Coney Barrett was later appointed to take the place of former Judge Ginsburg. Mrs. Barrett was an outstanding jurist, a pious person and known as a woman of traditional values. Barrett's appointment strengthens the Supreme Court's constitutional majority (6-3). Currently, the new Supreme Court Justice is only 49 years old (born in 1972), so she is facing the opportunity to influence US law for decades to come. It can be said that this is such a big political shift that it may have a deeper impact than the outcome of the 2020 US Presidential election.

14. President Donald Trump infected with Wuhan virus

President Trump announced on October 2 that he and first lady Melania Trump had tested positive for the Wuhan virus. He was hospitalized for three days at Walter Reed National Army Medical Center before being discharged to continue his recovery at the White House.

15. Joe Biden becomes US president on suspicion of election fraud

Joe Biden can be said to have almost become the 46th President of the United States with a questionable victory in Pennsylvania, among many other battleground states. Thereby ending one of the most controversial elections in American history.

16. Successful trial of Wuhan flu vaccine

The first Americans were vaccinated against the Wuhan virus on December 14 after the US Food and Drug Administration (US FDA) approved the emergency use of Pfizer's COVID-19 shot on December 14. The second US vaccine, developed by Moderna, was approved by the FDA a week later on December 18. The emergence of two vaccines, developed in less than 12 months. one year, which is considered one of the greatest scientific achievements in human history, proving the leading role of the United States on the world map of science and technology.

17. President Donald Trump becomes the most respected person in America

According to a new survey published on December 29 by Gallup (a consulting and data company, specializing in global surveys), US President Donald Trump for the first time surpassed former President Barack Obama to become the first US President to become the US President. The most respected man for the American people. Notably, up to 60% of people were satisfied with the way Mr. Trump handled the epidemic. This position was previously held by Obama continuously for 12 years.

Meanwhile, President-elect with the highest popular vote Joe Biden received only 6% of the support (one-third of Trump), reflecting the opposite of the current election results. Looking at it, if one had any conscience left, they would definitely question the last election.

All credit goes to trantuansang.com.

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Distribution channel (part 3): How to measure distribution channel efficiency?

A good distribution channel must be shown in specific numbers, a true channel manager must understand each distribution channel effectiveness measurement index.. You must understand numbers to increase numbers. Through the first two parts of the Distribution Channel series, we've talked a lot about how to set up distribution channels and manage channel conflicts, however, it would be a huge omission if (after all) we I don't know how well the current distribution channel works. Therefore, a tool to help analyze, measure and support decision making is very important. You are not allowed to make yourself a blind fortune teller in the market, or judge and make decisions based on experience, it just shows that you are a more experienced fortune teller than other charlatans. Channel efficiency, we say here, is numbers; Here, we work with a data-driven mindset – otherwise, you will kill your business just for… the experience.

How to measure distribution channel effectiveness?

You would think that sales are the primary concern for businesses. That's right, I probably don't need to explain too much about the meaning and importance of revenue. Sales is the lifeline, the source of life, affects the net income and determines the success or failure of the business.

But ask the question: How do you make sales if the product isn't on the shelf? Whether you're banging the drums for jubilant marketing, discounts /discounts, or crazy giveaways, what if the shopper can't find your merchandise? Have your previous marketing and sales efforts gone in vain? That's why distribution is the next thing you'll need to consider when measuring channel performance.

For a brand that exists thanks to the distribution system, the distribution channel metrics - especially the distribution index group - will show the brand's ability to successfully reach the target market. . How to balance the efforts of “push” (building and developing point of sale as well as distribution system) and “pull” (creating demand for consumers) is always the top concern of managers. channel value.

Of which, expanding distribution is always the top task when setting growth goals, unless you just want to survive as a small business (this is completely normal). However, to scale-up, you must expand. However, it must be admitted that the distribution story is extremely complicated and difficult to duplicate. Every step needs to be cautious, any trade investment needs to be carefully considered. And the basis for you to take-action is through the distribution channel efficiency measurement indicators.

In order to continue this article, I want to make sure that we agree on the concepts and terminology of distribution. For some people, theory is an old-fashioned game in the classrooms of faculty and students. However, it is a fact that the more specialized people are, the more they understand these academic concepts. Not to brag, but to grasp the concept to fully understand all aspects of the profession, and especially to avoid misunderstanding or misrepresentation during work.

Back to the basics of distribution

According to Philip Kotler, “distribution includes the various activities of the business so that the product is easily accessible and available to the target customers”. In other words, distribution has the function of getting the product into the hands of the consumer. Distribution channel refers to the intermediaries involved in the process of bringing the product from the place of production to the point of consumption.

I quote Philip Kotler's interpretation above to know that I still have great respect for him. However, to apply it in practice, we need to explain the concept of distribution in another way:

Distribution is the estimated number or percentage of stores that sell a particular product in a geographic area. Or, distribution is a measure that shows how distributed a product is.

However, the story does not stop there, just like a canal with many branches but can't see the current, how can the whole field be irrigated? Like products lying on dozens of shelves, unable to circulate until the expiration date, they have to be thrown away. So purchasing power will be the third measure of the effectiveness of the distribution channel, the final piece of your whole distribution picture.

So what is purchasing power (velocity)?

Velocity is a measure of how well a product, brand, or category is selling when it is offered in-store to consumers.

Purchasing power data is typically collected as part of a retail audit of point-of-sale shoppers. It is recorded every time a transaction is completed at that store. So why is velocity important?

Purchasing power gives us a complete view of a brand's business distribution – by product type, region and market.

Determine which products need to be prioritized for distribution development.

Velocity data is important to inform distribution expansion plans, even for products with low market share.

Identify potential competitors with strong growth that you have not discovered due to low market share.

To summarize, there are three types of distribution channel effectiveness metrics that you must track: #1 is sales because it's vital; #2 distribution because you can't have revenue without distribution; The third important thing is purchasing power (velocity) because it shows us many other problems in the product flow story. After generalizing the distribution channel efficiency metrics, the next thing to pay attention to is…

Do you have the right data?

Most FMCG companies distribute products through intermediaries in order to achieve the desired coverage and market share , but life is not like a dream, brands are not always able to get the data. details about the distribution of their SKUs at the point of sale, or if any, very general. Sometimes, brands have to choose a solution to buy detailed reports from MT channels (forget about GT or On-Trade channels), or go to market research companies like Nielsen, Kantar with expensive costs. Red. And when you decide to spend money to buy report data from a research company, avoid these 3 mistakes:

Missing data for some items because of no category definition : You need to make sure your CAT definition matches the Nielsen/Kantar definition. I recommend providing the agency with a UPC list of your brands and your competitors. Sometimes you will need to buy 3 to 4 industry reports to build the perfect dataset.

No previous year absolutes required : Of course, you don't just want to see current sales for each item, but you also have to know the year-over-year percentage change to gauge growth. But what if there are items that have been discontinued since last year? You will get a -100% value cell which is meaningless, so you should only pay when you have received the absolute value column (Abs Change) of the previous year's data.

No product attributes : By default, Nielsen will split data by brand, category or even sub-category for you. However, sometimes you will need more than that to clearly define each segment, product group. Assuming you have a cosmetics business, attributes like organic claim, natural, vegan, chemical-free, cruelty-free, etc. are very important. Without a clear delineation from the beginning, you may end up making false judgments about an industry. Therefore, ask the research company to report in detail on related attributes such as segment, positioning, packaging, product specifications, etc. to not have to "lose money".

Meaning and method of calculating distribution channel effectiveness indicators

With the concept that "a pebble in the hand of a genius is better than a sharp knife in the hand of a useless person", it would be a waste if someone possessed full analytical data but did not understand any description of those parameters at all. . As a channel manager with a sharp mind, you need to have a deep understanding of distribution channel effectiveness metrics in order to leverage and bring your products to the top on every shelf.

As mentioned, channel managers need to pay attention to three groups of indicators to measure distribution channel effectiveness: #1 sales (sales), #2 distribution (distribution), and #3 purchasing power (velocity). ). The relationship between them is determined by a simple mathematical formula:

I will illustrate what it means with the simplest example. Suppose there are two brands A and B selling 3000 products together, but the sales dynamics of the two are not the same. Brand A distributes little but has high purchasing power. Brand B distributes very well but the sales speed is quite slow.

This difference will affect how you approach the decision to increase sales. Distribution issues are almost entirely under the retailer's control. So for brand A, you will have to find a way to urge the retailer to increase the listing of the product at the new point of sale to increase sales. Purchasing power reflects many issues, many of which are within the control of the manufacturer. So for brand B, you need to learn and evaluate factors affecting product output, such as price, promotion, consumer tastes, competitiveness, etc. marketing solutions based on those findings.

Note that, the above example is only intended to help you visualize the correlation of the three groups of distribution channel effectiveness metrics mentioned above, but I do not encourage you to use that metric for analysis in the world. real. Now the real algebra class begins. We open the article with the "lifeblood" of the business.

Group of indicators to measure the effectiveness of distribution channels #1: Sales

From the moment the product leaves the production site to reach the final consumer, you already know there are many intermediaries in between. It brings many advantages, but also many difficulties. Therefore, tracking sales through each stage of distribution will be extremely important.

Usually, the structure of a simple distribution channel will include three stages that the product will go through: From manufacturer to distributor/wholesaler, from distributor/wholesaler to retailer , from the retailer to the end consumer. As a key group of distribution channel performance metrics, sales need to be tracked through all three of the above stages.

Sales-in

Sell-in is the sales into the distribution system (from the manufacturer to the distributor/wholesaler), which can be collected through the manufacturer's own sales data.

Sales-through

Sell-through is sales through distribution units (from distributors/wholesalers to retailers), which can be obtained through channel members' sales data, relationships, terms and conditions. commercial account, etc.

Sell-out sales

Sell-out is the sales from the distribution system to the consumer, which can be obtained through retailer sales figures, market research, terms of trade, etc.

However, the most important indicator in the group of indicators measuring distribution channel effectiveness related to sales is not the above three types, but the sell-through rate or the ratio of sales through distribution units. . Why?

Sell-through rate

Sell-through rate (the ratio of sales through distribution units) is a measure of the speed of distribution of a product through each distribution stage. This is the best indicator to know if sales through channels are effective or not. STR is tracked each month, the formula for calculation is usually in the form of:

BOM stands for beginning of the month, ie the beginning of the month. For an easy example, suppose at the beginning of the month brand A sells 100 products to a distributor. At the end of the month, the distributor sells 30 products to the agents, the distributor's sell-through rate is: 30/100 = 30%.

Group of indicators to measure the effectiveness of distribution channels #2: Distribution (distribution)

Shopper cannot make a purchase if the product is not on the shelf. Remember that. So distribution is an especially important parameter in the distribution channel performance metrics that you need to track, second only to sales. We will start with the simplest as well as the most basic metric.

Numeric distribution/PSS (Percentage of Stores Selling)

It can be said that listing products to new points of sale to increase sales opportunities is always the first tactic that channel managers think of in their distribution strategy.

Numeric distribution or PSS (Percentage of Stores Selling) or commonly known as coverage is the percentage of stores where a product is present in a geographic area . It is determined by the formula:

For example: Product A is present at 50 points of sale out of 100 points of sale in area X, it can be said that product A covers 50% of selling points in area X.

Coverage is a fairly simple indicator of distribution channel effectiveness, but the market is not that simple. Imagine your product is available at many points of sale, but most of them are retail stores. As a result, despite the high coverage, sales were low. Therefore, you need to penetrate into larger points of sale to increase shopper access, increase sales opportunities as well as sales. That is why we need an indicator like ACV when the “size” of the sell point is equally important.

ACV (All Commodity Volume)

ACV (All Commodity Volume) or merchandise volume is the total sales of a point of sale during a given time period.

For example, Store 1 has a turnover of $30M, in other words ACV Store 1 = $30M. It is easy to understand! ACV is a popular metric to measure the size of a retail store. Instead of determining the size of the point of sale through a physical measure like store size, we use sales. That way you will know how the business of that store is.

If you want to expand your distribution, ACV will help you prioritize opportunities. In general, the larger the point-of-sale revenue, the higher the sales potential for the product. However, here, the distribution channel efficiency measurement that we are really interested in is not ACV, but %ACV and %ACVD.

%ACV (Percentage ACV)

It is quite interesting that the distribution also follows Pareto's law, which means that 20% of the points of sale bring about 80% of the sales. That's why people care about Key Account - the goose that lays the golden eggs of the business. So we need % ACV (retail sales share) .

Let's say you know all the sales of every point of sale in your area (ACV), this way you will know which are the selling points that have the most potential to bring in the highest revenue for your product. The %ACV metric, now, will tell you which retail systems are more and less important in growing sales.

From the above table, % ACV tells you that Retailer C needs the most attention because it accounts for 50% of sales (although there are only 2 stores); while Retailer D has the most stores but the lowest proportion of sales. It also shows that even if your product is distributed to 7 stores (coverage reaches 70%) through Retailer B & D, the shopper's reach or revenue market share is not equal to that of competitors that only distribute 2 stores. products (20% coverage) through Retailer C, but the revenue market share accounts for 50%. So coverage isn't everything, if your point of sale has no sales.

%ACVD (%ACV Distribution)

%ACVD is similar to %ACV. While %ACV calculates the percentage of sales of the point of sale, %ACVD calculates the percentage of sales of the brand. I usually distinguish them by calling them %ACV (point of sale) and %ACV (brand) to avoid confusion.

Conceptually, %ACV Distribution or %ACVD is a measure of product availability at the point of sale based on revenue. It is determined by the store sales that sell products compared to the total revenue of the entire retail chain, or the entire store in a geographical area .

PCV ( Product Class Value)

No matter how big the selling point is, it's useless to have low sales in the industry. If you trade in cosmetics, whether to distribute it to the Bach Hoa Xanh chain (with nearly 2,000 points of sale and a very high ACV) or a specialized cosmetic store chain like Guardian (only around 80 stores and a lower ACV). ) would be more efficient? I don't know. The only way is to rely on the PCV index.

PCV (Product Class Value) or category volume is the total sales of a point of sale in a given period of time.

For example: The mother and baby category at Store 1 has a turnover of $10M, or PCV Store 1-mom&baby = $10M. It can be said that what is more remarkable than the size of the point of sale is the size of the category. PCV is a way to help you determine if that point of sale is suitable for the industry you are in. No one is foolish enough to head into a giant retail chain while the revenue of the aviation industry is nowhere to be seen, such as selling car accessories in the Co.opMart system.

%PCV (Percentage PCV)

Just as ACV has % ACV, PCV will also have % PCV to determine the proportion of category revenue . It is calculated using the formula:

Just kidding: in channel performance metrics, all are significant, but some are more significant than others. Here are PCV and ACV.

Back to the story of a cosmetics saleswoman trying to jump into Bach Hoa Xanh or a guy selling car accessories breaking into Co.opMart. By common sense, we also know that doing so is tantamount to suicide. However, that's because those two categories are so specialized. Reversing the story, if you deal in FMCG goods like toothpaste, confectionery, milk, soft drinks, etc., the problem will be different. Because the line is too blurred. You cannot use personal experience to judge subjectively, that's why %PCV will be an effective tool to tell you how to invest properly.

Looks familiar? The above table is taken from the %ACV example, but PCV and %PCV are added. You will immediately feel the difference. As analyzed earlier, Retailer C is said to be the most important because % ACV is the highest even though the coverage is only 20%. However, the industry revenue % PCV is the lowest, only 10%. Meanwhile, Retailer D which was previously considered the least important has the highest PCV %, which means the sales potential for your category when the product enters Retailer D is the highest.

CPR (Category Performance Ratio)

To have a better overview to compare the business performance of each retail chain, we can use the CPR index.

CPR (Category Performance Ratio) or category performance ratio is an indicator that compares the performance of a particular product line at a point of sale against the general market .

The purpose of CPR is to identify potential selling points for a brand's line of products, or to help planners allocate appropriate investments for trading activities. If your store has a CPR greater than 1, congratulations, you've found the perfect selling point for your category.

AIC (Average Items Carried)

Four types of coverage metrics, ACV (as well as %ACV), PCV (as well as %PCV), CPR give you a view of the width of your product attribution. However, in order to have an overview and multi-dimensional view of the market, we need to measure the depth of the entire distribution picture. And AIC is the indicator that we will need to find out.

A brand can have many different SKUs, however, for a variety of reasons, not all SKUs are listed on the point of sale. Therefore AIC (Average Items Carried) helps us to know the average number of items present at the point of sale of the brand .

Suppose we have 4 brands that are all widely distributed , reaching the same absolute percentage of ACVD, or in other words, have been distributed to all points of sale in the region. However, Brand D is a brand with a deeper penetration level than other competitors, because on average Brand D has up to 50 products at each point of sale; Meanwhile, Brand A can only list 10 products per store, the lowest of all. So to be able to expand distribution when coverage has reached the maximum threshold, you can choose to develop product lines, increase the number of SKUs at the point of sale to increase AIC.

TDP (Total Distribution Points)

We say “save the best for last”. The final boss is always the best. TDP is the ancestor of distribution channel effectiveness metrics in distribution groups. In fact, we don't need to be too concerned about AIC, the reason why I included AIC is to serve as the background for the final boss TDP. So what is it that is so terrible?

Actually, TDP (Total Distribution Points) or total distribution score is determined by the total % ACVD of all SKUs of a brand, segment, category, or whatever else you want to measure.

Simply put, TDP is a common measure for the entire group of distribution metrics, it shows the popularity as well as the amount of product present at the point of sale (width and depth of distribution). Determination formula:

Suppose a brand has four product categories marked SKUs from 1 to 4. Because not every point of sale has a complete list of SKUs, each SKU will have a different ACVD %. If we add all the ACVD % of each SKU together, we get the total TDP distribution score.

Alternately, if your Retail Audit data is not detailed enough for each SKU, you can use the %AVCD method of the brand with the average number of items at each point of sale (AIC) for that brand.

In addition, it also says something from Brand A, that for every 4 different SKUs of Brand A, there will be an average of 2.83 SKUs present at the point of sale. Thus, if Brand A wants to increase product allocation, they must find a way to increase the average number of SKU lists at the point of sale, in other words, increase the AIC.

Group of indicators to measure the effectiveness of distribution channels #3: Purchasing power (velocity)

We have studied through two groups of indicators to measure the effectiveness of distribution channels: sales and distribution. Finally, the third most important group of distribution channel efficiency metrics is the purchasing power (velocity). As explained, velocity and distribution are the two components that make up sales. Therefore, roughly understanding how to calculate velocity will include:

Therefore, each velocity measure will contain the sales in the numerator and the distribution in the denominator. The calculation you choose will depend on whether you are comparing one or more markets/points of sale. There are two types of velocity indicators we need to pay attention to:

1. Sales per Point of Distribution (SPPD) 2. Sales per Million (SPM)

Typically, businesses use a fairly simple velocity metric called Sales per Store. I also used it while explaining the concept above. However, I never recommend using this tool as an indicator of distribution channel effectiveness when applied in practice, because it does not take into account the difference in store size, easily creating a bias. bias for managers when making decisions.

SPPD (Sales per Point of Distribution)

SPPD (Sales per Point of Distribution) or revenue per unit of coverage, sometimes called consumer support, is the simplest and most intuitive purchasing power metric for analyzing sales within the same retail location. or market.

SPPD is an improvement over Sales per Store by considering store size using the %ACVD measure in the denominator. SPPD also shows the purchasing power or the user's preference and support for a brand.

SPPDs often appear in reports that rate items at an individual market or point of sale, as shown in the following example:

By dividing revenue into distribution (% ACVD) and purchasing power (SPPD), we can classify the above five products into two groups:

Product group with good distribution but poor purchasing power: Product 1, 2, 4.

Group of products with poor distribution but good purchasing power: Product 3, 5.

However, the SPPD measure only makes sense if the comparison takes place in the same market/region in your analysis. You cannot use SPPD to compare multiple points of sale or different markets/regions. Why? That's because they don't have the same frame of reference. Revenue in large markets is always higher than in small markets (obvious fact). For example, 75% ACVD in Saigon will bring in much larger revenue than 75% ACVD in Can Tho. When you weigh in between two different markets, not only is the ACVD % different, but even the ACV is significantly different. So you need a metric that accurately reflects the actual ACV (and not just %ACVD), and that's nothing but SPM.

SPM (Sales per Million)

When comparing multiple markets/points of sale, the SPPD is no longer a useful metric. Instead, the best channel performance metric to determine purchasing power in this case is SPM.

SPM (Sales per Million) or sales per million ACV is a measure of purchasing power to analyze sales across different markets, channels or points of sale. SPM not only takes into account %ACVD but also includes actual ACV in the calculation method.

There is a simpler way to interpret this SPM: for every 1,000,000 VND of market revenue sold, my product will account for X VND.

The reason we divide by the number of VND 1,000,000 is to facilitate data manipulation, because the market revenue is very large. For huge consumer goods industries like FMCG, we can even divide by 1 billion. In addition, it is possible to flexibly use sales instead of revenue, so SPM will now have the unit of product volume (volume).

To illustrate the SPM, I will use the previous example of SPPD but divide the report into two areas Saigon and Can Tho. What do you see? Is it true that although the % ACVD is higher in Can Tho, the SPPD is much lower than in Saigon? If you look at it and conclude that the demand for products of Can Tho people is not equal to Saigon, it is indeed wrong. Therefore, in order to know whether the demand of Can Tho people is lower, or simply because the market size of Can Tho is smaller than Saigon, we must need the SPM index as below:

Have you noticed the “different foam” yet? The SPM index in Can Tho is higher than Saigon (except for Product 3), if you mistakenly think that the demand for products of Can Tho people is lower than Saigon, you can now withdraw it.

In summary, for the distribution channel effectiveness metrics in the purchasing power group, the following should be kept in mind:

The first step to understanding sales revenue is to separate distribution and purchasing power.

Thereby, purchasing power is determined by the quotient between sales and distribution.

When analyzing sales in the same retail system or market area, you can use either SPPD or SPM.

However, when comparing sales to point of sale, or region to region, you must use SPM. Absolutely do not use SPPD.

All credit goes to

trantuansang.com

.

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Climate change and global warming: The biggest lie in human history

There are two things in life that do not go hand in hand, that is facts and arguments about climate change. Right. Climate change has been a hoax for more than 100 years by left-wing politicians to increase government power. Aiding it are funding scientists and hunter-gatherers, who increasingly make money by instilling fear in humanity. There is nothing easier to make money than to paint a crisis and then sell the solutions. Ironically, 100 years ago several people warned the COLD to global ( global cooling ) is a sign of ice age threatened earth life [1] [2] . Decades later, they removed several phenomena HOT up global (global warming ) would be a danger to humanity [3][4] . Until the 21st century, when peeled whole truth is, the science and other evidence they snapped Edom put on it a new face: CHANGE Climate [5] [6] .

Climate change is the worst science scandal in history

Today, climate change is gradually becoming a major concern of society. The mainstream media constantly injects into our heads to memorize “CO2 emissions from factories causing the greenhouse effect”, “alarming the ozone layer with damage to the ecosystem”, “industrial activities from humans”. global warming person”. Sadly, the lie is repeated enough times, it automatically becomes the truth.

The anthropogenic climate change argument has, to date, not been officially recognized. Mr. Richard Lindzen (member of the American Academy of Sciences, former Professor of Atmosphere Department at Massachusetts Institute of Technology) and Mr. Steven Koonin (Former Deputy Secretary of Science at the US Department of Energy, Professor at New York University) co-confirmed. that “climate science is still inconclusive” and that humans still do not have enough knowledge and tools to accurately assess human impacts on climate change [7][8] .

Well, climate change, the point is, climate is always changing

I say that so you understand that I still believe in climate change, but not in the way that the media is leading. Over 4.5 billion years ago, through many ice ages and then interglacial, the earth's climate has always changed.

Michael Griffin (Former Director of the US Space Agency - NASA) when interviewed on National Public Radio (NPR) in 2007 said: "I have no doubt about the hot trend. up globally. But I'm not sure that it makes sense for us to see it as a problem to be solved… First, I don't think humans can guarantee that the climate won't change, the history of the past millions of years has been consistent. shows that the climate is constantly changing. Second, I would like to ask who - where and when - is given the privilege of deciding which climate conditions are best for mankind. I think for humans, that's quite an arrogant stance." [9]

However, in the eyes of environmentalists, those who oppose them are anti-scientific, even anti-human. Meanwhile, it is they who are opposing logic, social ethics and moral values.

Fighting climate change is an anti-logical stance

Fighting climate change, so their goal is to create a planet where… the climate doesn't change? I.e. make the temperature stable permanently? It's as absurd as trying to fight the day-night change, so scientists have to find a way to make the earth stop spinning? Just kidding, but in fact, the level of absurdity of environmentalists is about the same.

More brain-shaking question: Why are all 10 countries emitting the most CO2 [10] not the ones most affected by climate change? [11] Even the two biggest carbon dioxide emitters (43% of the world), the United States and China, are completely missing in the top 10 countries affected by climate change, whose impacts are most likely to occur. focus only on poor and developing countries? Does climate change distinguish regions, ethnicities, or rich and poor?

On the scientific basis, there are many factors that lead to climate change, such as the sun, clouds, oceans, earth's orbit, etc. [12] But almost all the focus is on CO2. . However, CO2 makes up less than 0.04% of the earth's atmosphere [13] , and do you think it is the main contributor to temperature? Of course not. Of the tiny 0.04% CO2 makes up the greenhouse gas, only 3% comes from human activity [14] , and do you think humans cause climate change? Not even more.

The fact that H2O is the dominant molecule in greenhouse gases and regulates the earth's temperature, while CO2 plays an almost negligible role in influencing the global climate - this is proven. by many scientists, including the official conclusion from the American Chemical Society (ACS) [15] .

In fact, water retains heat well is no longer debatable because it is already in the textbook. The desert is very hot in the morning and very cold in the evening, the fluctuating temperature is due to the sand and humidity, not the CO2. [16] Or more commonly, if your house is too hot, do you pour water or pump CO2 into the house? I bet you already have the answer.

I say they are against morality and moral values

Because the solutions they offer are full of politics, not based on scientific explanations. They politicize climate change by attacking the rich (or "bourgeois for short") in order to redistribute social wealth . They “condemn” the richest 10% of people to be responsible for 50% of their emissions [17] for things like supercars, business flights, etc., while they ignore the reality of population growth. It's the numbers of the low-income class that really matter. [18]

The pseudoscience aspect of climate change must be mentioned. All information about the Climategate scandal that shook the world in 2009 was drowned by the media. On August 12, 2009, Ted Poe, a member of the US Congress, accused NASA of cheating in climate change research and data creation. [19] In the US Congressional Records volume 155, No. 190 (Tuesday, December 15, 2009, pages H14948-H14949) revealed:

“There has been consensus for a long time that global warming, climate change are still going on with human culprits. Today we realize that is no longer the case . There has never been a consensus on global warming and climate change. We now discover the Climategate incident, where scientific experts hid telegrams opposing the so-called consensus on global warming and climate change. Now we have new evidence that even NASA is engaged in hiding evidence that is detrimental to climate change." [20]

Drama after drama. Tim Ball, an environmental consultant and former Professor of Climatology at the University of Winnipeg in Manitoba, and the author of two popular books Humans Causing Global Warming: The Biggest Deception in History and Intentional Corruption of Climate Science , responded to the letter from the American Meteorological Society (AMS) that:

“The scientific evidence on global warming is blatantly orchestrated by the Intergovernmental Panel on Climate Change (IPCC). Because the only place where there is evidence of temperature increases as CO2 increases is in the IPCC computer model (global climate simulation). It also explains why any of the IPCC's temperature forecasts since 1990 have been wrong. If your prediction is wrong, your science is wrong.” [21]

Obama once casually said that 97% of scientists agree on climate change, [22] this is unfounded, rather 97% is ignorant about IPCC reports. Therefore, the so-called scientific consensus on climate change does not actually exist. Moral and ethical values ​​are so reversed that the radicals are ready to slap comrade Darwin's theory of evolution in the face, which they have always admired, despite their strong belief in the adaptability of all things. species before any changes in the environment.

Not to mention, the comprehensive coverage of media channels from television, movies, books, even to the educational environment has turned climate change into a dogma. There is no tolerance for any challenge. There is only consensus, or ostracized. There is only political purpose, nothing else. So what does the left really want?

Turning climate change into a political tool to extend the government's power arm

Correct. Inflate disaster and climate change scares to herd and pickpocket the sheep. It can be said that rule by fear has been masterfully applied by China since Mao Zedong. [23] Because only when people are in crisis and fear, will people spend more money, and people will depend more on "salvation" policies from the government. It creates a more reasonable excuse for the government to interfere deeply in the life and behavior of citizens, as well as to intervene in industries that are said to "affect the environment". Just get a good reputation and earn money.

Think about it, why does the government invest so much in areas that have been given such a fancy name as the “environmental protection industry”? Think about it, why are these "green" companies all run by COCC? Think about it, who is sponsoring environmental organizations? Well, don't think I'm trying to lead you into the world of conspiracy theories, because the conspiracy is as clear as day. I take you to the proofs, and they will convince you. The US Congress has not ratified the Paris Climate Agreement for many years for a reason. Donald Trump tore up that agreement for a reason.

Climate change advocates aren't bad, they're just being taken advantage of

There are people we know who, despite being very intelligent and erudite, still believe in climate change farce. They can't be blamed when this issue is deflected by the media machine, biased information makes it real and fake. After all, protecting the environment is a good human wish. We need to get rid of the dualistic thinking that whoever opposes climate change is destroying the environment, and vice versa. Each of us wants to live on a green planet and make it more beautiful. However, kindness is easy to take advantage of, concepts are easily confused, and truth is always distorted. We are not smarter than anyone, but don't be foolish to be someone else's tool.

Conclude

I would say that climate change is a real toxic movement, promoted by the people of Environmental Fascism. When flatism is pushed to a new level, it flattens the human mind. Don't be too surprised because Einstein also said: "There are two things that are considered infinite, that is the universe and human stupidity". Climate change is a hoax just as former President Donald Trump once said, although he, like me and other people of common sense, still believes that climate change is an inevitable law of nature, evidence. the beginning of the Creator's creative power. Only Satan is the one who intends to destroy those great works of God.

All credit goes to trantuansang.com.

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Saigon before 1975 and its once-resounding scooters.

The motorbikes (scooters) on the streets of old Saigon once went through a brilliant golden age. If you want to know what motorbikes the Saigon people used to ride, let's take the time from 1954 to 1975, the period when scooters in the South developed wildly, first of all, the "golden Mobylette" era. and Velo Solex. Both types are shaped like a compact bike, but larger and equipped with a viscous gasoline engine, Mobylette's speed when "good" can be up to 60 km / h.

The interesting thing is that it can pedal with its feet to run when the car runs out of gas, which makes it a true "rice-powered" car legend. It can be said that the most glorious period of Mobylette motorcycles was during the French colonial period, when the Vietnamese nation had not yet escaped the monopoly of trade with France. In the early years of 1955 - 1956 when the First Republic was established, Mobylette motorcycles had to give way to other German vehicles such as Goebel, Puch, Sach, although Mobylette continuously changed designs to catch up. trend.

When the Southern economy was liberalized, the Ministry of Economy and the General Department of Planning decided to develop the assembly sector in order to save foreign currency and create jobs for the people. Therefore, the South formed two large scooter assemblers, namely VINACO (assembling lambretta) and Phi-Ma Transport Company (assembling vespa); the proportion of internal parts including assembly accounts for 10% (for vespa) and 15% (for lambretta). Both firms import machinery from Italy and a small number from France and Germany, all about 4 million dong. The assembled scooters are vespa 50s, vespa 150 super, vespa 150 sprint, lambretta 50 junior, lambretta 150. There are two types of tricycles: vespa 175cc, lambro 500.

The Vespa line at that time became a "fashion" that made Saigon's young people fall in love. French Vespa cars are cheaper but the machines are not as good as Italy's. To distinguish the French Vespa from the Italian Vespa, "players" often look first at the color, then the words on the front of the car. Italian Vespa is usually only gray and has the word Piaggio, while the French Vespa is usually dark yellow and has the word ACMA.

Until the end of 1968, Vespa, Lambretta and other French and German motorcycles had to "give up" to Japanese motorcycles. Especially Honda cars. In the first days, Honda motorcycles did not attract much attention from Saigon consumers. Everyone criticized "what car is made of latex". But after only a few months, Honda motorcycles have become a popular and vehemently sought-after item in the market, storming the two French and German firms. But it's just because "Japanese goods are really delicious". With the "unbeatable" fork and the seat as soft as the mattress, the girls sitting in the back have to say "sticky hug".

The love for Honda cars is so passionate that, without knowing when, people gradually call motorcycles in general the Honda cars. And the way to call the car is dead from that time. Men play Honda SS50, women love Honda dame. The women of old Saigon were almost the ladies of the radio, wearing a flowing ao dai and sitting on scooters, which further glorified the aristocratic aristocracy of the young ladies of that day. Unfortunately, I'm not sure any of these ladies know how to cut a chicken's throat or slice a fish, so I'm also surprised to know which Saigon girl dares to load ammo. Who is the master who invented that article!

Some time later, the Suzuki, the old-fashioned (Yamaha), Kawasaki appeared, but it was difficult to compare the hegemony of Honda at that time. That popularity led to reckless racers, racing at an altar speed all over the streets. Because of that, the word "highway hero" was born to refer to the young buffaloes at that time (if they were still alive, they would have become old and buffalo).

Such motorbikes roamed the streets of old Saigon on Saturday afternoons through green trees, under the canopy of flying tamarind. The lovers pass each other under the great trees on the road around Notre Dame Cathedral before going to the Zoo and Botanical Garden, which people call the streets of students, flying and dreaming.

Sitting on the back of the car, the girls leaned their heads on the boy's shoulder in front, then he pressed the gas to blow her hair and sobbed the fragrant smell of locusts, the two of them had been together forever. (Le Loi) and then turned around to Catinat (Tu Do), hungry, then went to the "Hong Kong side of Cho Lon" area to enjoy Chinese food.

Or more leisurely, "her horse" drove to Saigon Bien Hoa highway to cross the Tan Cang wharf bridge, then turned onto the dirt roads of Cat Lai area and watched the moon enjoy the country wind and stay coffee until the evening. If they feel sad, they will take each other to the cinema near the Citadel to watch the cinema for their liking.

There! There used to be such a beautiful Saigon, gone so we have a time to remember. Besides cars, which were very popular at that time, motorbikes were the dominant means of transportation in the South before 1975 and until now, that has remained unchanged. The motorbikes once lingered on "every tamarind leaf remembers our memories". If anyone asks me why I love Saigon, then that "substance" has made me fall in love for a long time.

All credit goes to trantuansang.com.

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What is Branding? What is Brand Marketing? How to build a brand strategy?

Branding and Brand Marketing are the two most confusing concepts in marketing, and longtime brand strategists are sometimes confused. Not to mention these two terms are often called interchangeably when people talk about brands. In the world of SMEs, the line between Branding and Brand Marketing is more blurred than ever. Although there are many connections and similarities, they still have many fundamental differences, because otherwise people would not have separated for anything.

Distinguishing between Branding and Brand Marketing in marketing

The difference between Branding vs Brand Marketing is not like the chicken and the egg story – which comes first. Because if you ask me, I'm pretty sure it's Branding. In the historical development flow of marketing, Branding has appeared since the very beginning, while Brand Marketing is a new trend of the modern world. However, these two concepts are easily confused due to the development of Branding in recent decades.

In the past, when the marketing industry was in its infancy, people only focused on products, with the main strategy revolving around the concept of PLC (product life cycle). Today, brand management gradually becomes the center of development strategy as well as the core of corporate governance. It leads to a situation, when the number of products on the market is increasingly diverse and the positioning becomes confusing, the line between the differences becomes difficult to discern, and consumers are faced with a large amount of information. With so many options to choose from, it has led to the transformation of Branding.

Branding is different now, from a rooted position, it has crept into every corner of the business, affecting the entire strategy from the top level to the smallest execution. However, Branding alone is not enough, there must be Brand Marketing as a catalyst to help the brand sublimate in the market. And on the successful path of the brand, always engraved the parallel of both Branding and Brand MKT. As a business owner, especially a marketer, the distinction between Branding and Brand MKT is extremely necessary.

We start with what is brand?

Before explaining what a brand is, let's talk about what is NOT a brand:

Brand is NOT a logo. While a logo is a useful tool for branding, it is not a brand. A logo is just a symbol for a brand.

Brand is NOT a product. We often say that I will buy Honda, drink Pepsi or Coke, travel to Vinpearl Land, visit Tran Thanh, etc. However, it is not correct to say that a brand is a product.

Brand is NOT a promise. This may be partly true, but part of the truth is also not true.

In fact, the brand is the RESULTS of the process. It is the public perception of a certain product, company or character. Brand exists in the mind and heart of the customer. So when you build a brand, you don't have to build one brand, but many brands, equal to the amount of public that the brand is known to. Because each person will have their own FEEL about a brand.

It can also be said that brand is reputation, or notoriety (in the minds of some other target groups). Reputation or notoriety, the brand certainly has a profound impact on product sales (although its primary goal is not sales). Or rather, the brand is the pinnacle of the product, an invaluable asset of the business.

Brand is the total perception, or in other words the visual way of seeing and feeling, of the public towards a certain character, product or business.

According to the definition of the American Marketing Association (AMA), a brand can be a name, word, sign, design, or combination of the above elements intended to identify one or a group of individuals. particular object, product or business.

Finally, the brand needs identity. Of course you can (and should) proactively shape public perception by building your own brand identity.

What is a brand identity?

Brand identity or brand identity includes tangible elements representing the brand, in order to convey the brand identity to the public. It provides the public with a basis for evaluating a brand's role, values, and personality.

Many people often mistakenly believe that a brand identity consists of only images and designs, even a beautiful logo is enough. In fact, the public often perceives the brand through multiple senses, so the brand's identity is not simply by images, words or words. A full set of brand identity can include: colors, tagline, graphic, typography, character, shape, sound, ritual, properties.

What is branding?

Branding roughly translates to brand building. While brand is the public perception of a product or business, Branding is the work of building and amplifying a brand identity to ensure that the public has a correct and consistent perception of it. Through Branding, the public easily distinguishes a brand from other brands present in the market.

What is Brand Marketing?

Brand Marketing is marketing for brands. Brand Marketing deals more deeply with aspects of product strategy, pricing, sales and promotion channels – also known as overall marketing strategy (4Ps or higher, 7Ps, 9Ps).

Like Branding, people who do Brand MKT do not consider sales as the top goal. Instead, Brand MKT's main goal is nothing but building and developing a long-term relationship between the brand and its target audience, thereby increasing brand equity in the long run. term.

10 basic differences between Branding and Brand Marketing

Branding is the pioneering work, then comes Brand Marketing. By definition, we must have a brand to be able to market it.

Branding and Brand Marketing can share the same marketing tools but different roles.

Branding defines who you are in the market, Brand Marketing develops brand equity in the long term.

Branding builds awareness, Brand Marketing builds awareness.

Branding fulfills the brand promise, Brand Marketing brings the message to the target audience.

Branding focuses on listening, Brand Marketing mainly tells stories.

Branding is done throughout, Brand Marketing is a momentary activity.

To position a brand in the market, Branding is a necessary condition, Brand Marketing is a sufficient condition.

Brand Marketing is a functional part of the marketing department; Meanwhile, Branding is the work of the whole team - from CEO to HR, Sales, Marketing, Design, R&D, factory, etc. even magazine.

Compared to the hierarchy, Branding exists at the corporate strategic level, Marketing is at the business strategic level, and Brand Marketing is at the functional level.

Brand strategy building

When it comes to strategy, we immediately think of something big. Let me help you visualize it with a more intimate story. A teacher came to the class, in the first session he asked his students to take out the paper and draw according to his request:

For the first stroke, he asked to draw a line parallel to the surface of the paper;

Second stroke, draw a line parallel to the paper twice as long as stroke 1;

The third stroke, connecting the two ends of the two above lines together;

Fourth stroke, draw a line segment that is the perpendicular bisector of the first line;

As a final stroke, place a triangle in the previous stroke.

He then asked his students to see what the people around them drew and if they resembled him. As a result, no two pictures are the same, everyone paints a pattern. Many practitioners wondered why he did this. He laughed and said:

“In my head I have a picture of a boat, and I want you to draw it for me. However, instead of telling you my idea, I chose to hold your hand in hand. The result is as everyone has seen, each person does a pattern. This is a testament to how to work without a plan, no matter where you go, without a strategy. Doing it that way is bound to fail. If you are the owner of a company or a senior manager at a corporation, the consequences will be unpredictable. How to avoid this? Welcome to the first lesson: Build a strategic plan!”.

Hope the story I made up just now will help you have more faith in building a brand strategy. Brand strategy is – it must be said – very important for any business. How to build a brand strategy is not simple, it takes a lot of time, money and brainpower to complete a plan. That is why businesses pay thousands of dollars to senior managers to do this work for them, and execution people only get three dollars a month.

Returning to the problem of building a brand strategy, there will never be a common template for all. However, you can use the following modules I suggest to build your brand plan, especially in the FMCG field. Each module can be presented as an individual Powerpoint slide, or you can combine them if you don't want to follow the recommendations.

Stage

Modules

Stage 1

1.1. Brand Portfolio Roles

1.2. Brand and Channel Matrix

1.3. Brand Target Portrait

1.4. Need-state Overview

1.5. Brand Key (Positioning)

1.6. Communications Idea Snapshot

1.7. Long Term Brand Strategy

1.8. Three-year Growth Strategy

Stage 2

2.1. 6C Market Audit

2.2. Brand Performance YTD

2.3. Brand P&L Analysis

2.4. 5P Learnings

2.5. Key Growth Challenges

2.6. SWOT Analysis

Stage 3

3.1. Biggest Issues & Opportunities

3.2. Bio & Task List

3.3. Tasks List Prioritized

Stage 4

4.1. Prioritized Tasks for Next Year

4.2. Brand P&L Projection

Stage 5

5.1. Brand Growth Program

Stage 6

6.1. Action Plan

6.2. Brand Activations by Channel & Customer

1.1. Brand Portfolio Roles

It is not uncommon for a business to own a diverse portfolio of brands. In marketing jargon, it's called a Brand Portfolio. The caliber of Unilever or Nestle has a huge portfolio of brands, with each born brand having a distinct "mission". Looking at the Brand Portfolio, we can know the brand strategy of a business in the market.

1.2. Brand and Channel Matrix

I mentioned in the article How to set up a distribution channel structure that you cannot sell an expensive Rolex watch in Ba Chieu market, or sell cars in a CoopMart supermarket. Sounds ridiculous right? So each different brand will need different sales channels, suitable for it.

The thing is, sometimes that's the strategic goal, but we often mess up when we actually deploy it to the market. This issue I pay special attention to Mr. Trade Marketing. However, the importance of planning the Brand-Channel matrix cannot be denied. If the implementation is not as planned, firstly, we need to review the planning process and make timely adjustments, and secondly, we need to review the organization and coordination between departments.

1.3. Brand Target Portrait

“Who are your customers?” – a typical question that seems extremely simple but to be honest, I rarely see a startup that can answer it. Selling without knowing who to sell to is dead. Broken! You must know that sketching customer portraits is a must. In the Marketing 4.0 era, if you don't know who you're selling to, you deserve to be a Marketer 0.4. Talking about identifying target customers, the main object that Brand cares about is consumers; different from Sales and Trade, which are more concerned about the sales channel. The consumer picture is often sketched by:

1.4. Need-state Overview

Knowing who the customer is is not enough, we need to understand them. Need-state is the motive that motivates consumers to buy, is the main purpose that makes them spend money on a product. Consumers have many motivations to buy (motivators), we have to sift through the data and identify the main drivers that lead to their buying behavior (need-state). In essence, the need-state also comes from the motivators. Exploring users based on motivators reveals a wide range of usage reasons and expectations of a brand, while need-state groups these motivators into different demand segments. So if you already have need-state then you don't need to look at motivator anymore.

Need-state can simply be described as being “thirsty” – the main buying motivation of Lavie water drinkers, but sometimes it is also extremely vague. Understanding need-state is not a simple matter. But not every company has the money to buy data need-state because this is an extremely complex market research that requires professional market research companies to perform to ensure the accuracy of the sample size. , respondents, data analysis, etc. However, if the business owns a talented in-house team, it can also organize 6-8 focus group sessions to determine the need-state to save costs. .

1.5. Brand Key (Positioning)

Brand Key is one of the most popular brand positioning models to date, almost every marketer knows. Personally, I like it in the name - brand key - because only when we can position the brand in the market, can we open the door to success for the business.

1.6. Communications Idea Snapshot

Brand Communication Idea (BCI) is a big idea, to turn the core value of the brand (brand essence) in Brand Key into a communication topic.

One of the most successful BCIs of all time is Dove's Real Beauty, in which Communication Idea is to discover the hidden beauty of every woman, thereby creating the legendary "Real Beauty Sketches" campaign to spread the word. convey a very humane message to all women: "You are more beautiful than you think". While Pond's claims that "white and pink is beautiful", on the other side of the line, Dove asserts that "true beauty is natural beauty" and therefore "all women are beautiful".

There are quite a few models or ways of implementing BCI that you can refer to. For me, the following is intuitive enough to integrate into any brand strategy.

Note BCI needs to be implemented with caution and requires careful study. It can take the brand high, but it can also push the brand into the abyss. Trust me, you don't want to spend a ton of money dealing with a media crisis. In theory, BCI is almost the most important because without it we would not have ideas later; However, in reality, you will focus more on execution if you are not a CMO or senior manager. Therefore, learning about execution is still more practical.

1.7. Long-term Brand Strategy

The next step in the Brand plan is to define the brand's vision, role, long-term goals, and long-term growth strategy. Without this step, the brand's opportunities and problems cannot be identified. With opportunity, is to detect the unmet need or undermet need of the consumer; with the issue, is what the brand is facing. From there, come up with initiatives for the brand and then develop concepts.

1.8. Three-year Growth Strategy

As a marketing savvy, you already know the R⇒STP⇒MM⇒IC process. After the research and identification of the market demand group is the step to develop an overall marketing strategy. Based on the Long-term Brand Strategy, you will come up with the following growth strategy initiatives:

Note that this Initiative Areas is not a specific solution to the problem/opportunity we face, it is merely a development direction for the next 3 years (usually 3 years). Depending on the business model and industry, we can apply 4P, 5P, 7P or 9P when designing growth leverage.

2.1. 6C Market Audit

In a word, 6C in marketing is a tool to help identify the strengths and weaknesses of the brand, it is also a form of situation analysis framework similar to SWOT. In the 6C model, we will analyze on the aspects of market context (context), industry (category), competitor (competitor), customer (customer) or sales channel (channel). consumer), and company.

2.2. Brand Performance YTD

Obviously, qualitative analysis in 6C is not enough, we need to add more quantitative indicators to evaluate the real performance of the brand in the market as well as set KPIs.

Then, we summarize the key finding from the above data:

2.3. Brand P&L Analysis

One of management's headaches is managing the P&L. Mentioning it, often people will immediately think of a type of financial statement that reflects the profit and loss of a business. However, the truth is that P&L is also an effective support tool for managers in decision making, not just a profit or loss story. P&L analysis offers three key benefits:

Identify the right source of growth for the brand's revenue;

Determine the appropriate level of investment for marketing activities;

Identify cost optimization directions suitable to the business situation/department.

Then, we summarize the key finding from the above data:

2.4. 5P Learnings

The military strategy of Sun Tzu has a saying "a friend, a friend, a person who fights without mercy", that is, "knowing others and knowing me, a hundred battles and a hundred victories". It is not wrong to say that the market is a battlefield, only when we look in the mirror and measure the mountains in front of us can we return victorious. Before "combating", nothing is more practical than sitting down to evaluate the entire 5P "combat" process of the brand and its competitors (direct and potential) from which to draw lessons from experience. detailed plans for the future.

2.5. Key Growth Challenges

Stable and sustainable growth is almost the basic goal of most businesses. Typically, the growth strategy will revolve around four key drivers: increasing trial to recruit new customers, increasing purchase frequency, increasing purchase volume, or upgrading product portfolio.

It's easy to say, but the game is not so easy to eat?! Recall that old man Phan Boi Chau once said, "If life's road is flat, which hero is better than anyone else?" – to understand that there will always be barriers and challenges along the way, to see that thousands of startups are still dying out there. Therefore, one must always be prepared for obstacles that may arise on the path to long-term success.

2.6. SWOT Analysis

SWOT is one of the most preferred models in business analysis. This is an effective tool to help you quickly find out strengths, weaknesses, opportunities and threats for your business. Perhaps there is no need to explain too much about SWOT because it is so familiar, we just deploy it.

3.1. Biggest Issues & Opportunities

After mapping out strategic directions and having enough analytical data, the next step is to summarize the biggest problems and opportunities for the brand and describe them as below:

3.2. Bio & Task List

For each identified bio, what are the behaviors in the market that we need to change? What are the barriers to change? What specific work is required to develop an action plan? Finally, determining what KPIs include?

3.3. Task List Priority

With the work items listed above, which ones need the most priority? Rank them based on three criteria: operability or feasibility, chance of success, and potential to increase sales.

4.1. Priortized Tasks for Next Year

One of the planning arts is to ensure transparency and synchronization in the action plan. Therefore, a complete brand plan cannot lack the work and forecasts for the following year.

4.2. Brand P&L Projection

Perhaps there is no need to reiterate the need for P&L for Brand Managers. In this estimation step, we make the implementation plan for the next year similar to the P&L plan above:

Then, we summarize the key finding from the above data:

5.1. Brand Growth Program

After analyzing the situation and forecasting next year's plan, we will go deeper into execution by building programs for the brand. In brand planning, this is the concept design step based on the initiatives and analysis as mentioned earlier. Brand growth program will include the main contents: description of the idea, implementation channel, specific work, project setting.

6.1. Action Plan

We say "conspiracy in people, success in action plan". An action plan or action plan is a detailed plan outlining the activities needed to achieve a strategic goal. It can be said that the action plan is the soul of the entire plan. The work items in an action plan are often designed in the form of checklists, thereby concretizing the strategic step into implementation activities.

6.2. Brand Activations by Channel & Customer

After all, we all know that brands contain the promise of the business to the customer, but how to prove those promises? The answer lies in brand activation or brand activation.

To confirm that its products can remove all stains, OMO continuously runs on-site demo booths (in markets, supermarkets, crowded places, etc.) to let consumers see that OMO washing powder is real. the ability to whiten stains on clothes, thereby proving what this brand advertises.

Therefore, brand activation is the process of bringing the brand's commitment value to the reality of consumers' lives, by increasing the user's experience with the brand, thereby helping to: (1) change consumers' perception of the brand, (2) changing consumers' behavior with the brand, and (3) influencing their purchasing decisions. In other words, brand activation is an important part of the brand positioning journey. Normally, brand activation activities are usually implemented at off-trade and on-trade channels. With the brand programs you just outlined, you need the right activations to deliver what you need to convey to the user.

Note that brand activation is not just running events, roadshows, sampling or displaying goods. It integrates all of the above activities through different channels and is built on the same foundation of positioning strategy.

It's over! That's all I need to share about Branding, Brand Marketing, and Brand Strategy.All credit goes to

trantuansang.com

.

[maybeyoumissthisf-kingpost]

Why did Papa Doc get choked in the battle rap with B-Rabbit (Eminem's character)?

Yesterday, after watching Infinity War with my friend, the two guys sat down to discuss the last rap battle in 8 Mile, so I'm ready to write about this match.

During the rap battle final at The Shelter (Detroit), Papa-Doc froze and let go of the mic after confidently letting B-Rabbit diss first. In terms of techniques in battle, B-Rabbit's verse is not too harsh, nor is it so great that "diss will die"; but if we analyze the situation, we will understand why Papa-Doc can't say a word. First, let's look at the foreplay that B-Rabbit does:

“Now, everybody from the 313 put your motherfucking hands up and follow me!”

313 is Detroit's area code, which many people probably already know. In a battle, increasing the influence on the audience will also increase the chances of winning. B-Rabbit's foreplay, of course, also aims to trigger the stage, pulling the audience below to his side.

However, B-Rabbit's tactics do not stop there, but it is the premise for Papa-Doc's discredit in the next sentence:

“Now, while he stands tough Notice that this man did not have his hands up”

B-Rabbit knows for sure that Papa-Doc won't raise his hand to B-Rabbit's rap. First, no one does what the opponent asks. Second, the school Papa-Doc attended was Cranbrook Private School in suburban Oakland County (area code is 248). While everyone in Detroit (code 313) raised their hands to follow B-Rabbit, whoever put their hands down was a "foreigner". In an instant, B-Rabbit turned the arena that used to be Papa-Doc's home ground into his own.

“This Free World's got you gassed up”

This sentence has two meanings:

One, Papa-Doc is the leader of the Tha Free World group, B-Rabbit wants to say that the members of Tha Free World are just scumbags that make Papa-Doc the illusion that he is a top rapper.

Second, in the world of Papa-Doc (the world of the rich), Papa-Doc can do whatever he wants, so he always throws his face to the sky.

“Now, who's afraid of the Big Bad Wolf?”

Big Bad Wolf is the wolf in Little Red Riding Hood. Remember who saved Little Red Riding Hood? Those are bees and rabbits. Rabbit (the rabbit) of course will not be afraid of the Papa-Doc wolf.

“1, 2, 3, and to the 4 1pac, 2pac, 3pac, 4 4pac, 3pac, 2pac, 1 You're Pac, he's Pac, no Pac, none”

This is probably the most classic part, most people remember it, it says that Papa-Doc and his team are just imitators of Tupac (one of the rap legends), but this group is far from over. just reached the level of Pac.

“This guy ain't no motherfuckin MC I know everything he's about to say against me”

Papa-Doc is not a real MC (or emcee), but just a warm boy playing with a rich family. Papa-Doc does not belong in the undergound world. B-Rabbit knows that. In the next paragraph, B-Rabbit diss herself to let Papa-Doc understand what life is like in the underworld, as well as teaching Papa-Doc how to rap diss.

“I am white, I am a fucking bum I do live in a trailer with my mom My boy Future is an Uncle Tom I do got a dumb friend named Cheddar Bob Who shoots himself in his leg with his own gun”

It can be said that this is a stealing thunder tactic in battle rap, meaning the rapper will diss himself before his opponent does this. So if the opponent reuses these facts to diss, it will cause a feeling of boredom, no longer a surprise because everyone knows it before. However, this tactic has a very high risk in real combat.

B-Rabbit confessed to being a poor white guy living in poverty with his mother. The separation of Papa-Doc from the underground class made the audience lean more towards B-Rabbit.

He also predicted that Papa-Doc would diss Future (the black guy who led the match between B-Rabbit and Papa-Doc), because Future was the one who introduced B-Rabbit to everyone and brought him to the ring. . Future is likened to Uncle Tom, a black slave working for white America in Uncle Tom's Cabin. The fact that Cheddar Bob (B-Rabbit's best friend), a gentle but naive guy, shot himself in the foot is also a fact that B-Rabbit knows Papa-Doc will use. At this point, Papa-Doc has no more facts to exploit.

“I did get jumped by all six of you chumps And Wink did fuck my girl I'm still standing here screaming fuck Tha Free World!”

While Wink was beating B-Rabbit's girlfriend in the studio, B-Rabbit discovered and broke the bridge of his nose. After that, Wink led the Tha Free World guild to take revenge and beat B-Rabbit to death. This fact is intended to denounce Wink's "dirty life", and at the same time, shows that Tha Free World is a bunch of cowards when taking 6 against 1. Crowd psychology often favors the weaker, so after this fact the audience even more supportive. B-Rabbit, and at the same time, the prestige of Papa-Doc and the whole Tha Free World group was severely reduced at this time.

“But I know something about you You went to Cranbrook, that's a private school”

This is B-Rabbit's counterattack. Cranbrook, as mentioned, is a private school for the rich and mostly white American. And Papa-Doc, a rich, colored guy, always idolized and imitated Tupac (who often wrote music to speak for black people) but attended a private school of white Americans. These two things are so contradictory, is Papa-Doc on the side of the colored Detroit people or the white people of Cranbrook? This fact makes Papa-Doc no different from a two-faced, a genuine hypocrite.

“What's the matter, dog, you embarrassed? This guy's a gangster? His real name’s Clarence And Clarence lives at home with both parents And Clarence parents have a real good marriage”

The majority of Detroiters are poor people, those who participate in battle rap are often gangstas and have a tragic fate. Of course, the above facts have shown that Papa-Doc is not a gangsta, and this passage B-Rabbit mocks Papa-Doc's real name Clarence (a cute name often given to newborn boys, sounds very "banana" and doesn't sound like a gangsta at all) and the warm family that Papa-Doc has. This is in stark contrast to the background of most Detroiters.

“This guy don't wanna battle, he's shaken 'Cause ain't no such things as halfway crooks”

This is the lyrics taken from Mobb Deep's Shook Ones 2, which is also the beat of this match. Once you have stolen something, you are already a thief, so there will never be a "half-baked thief". White to white, black to black. Just like Papa-Doc, being a guy can't be a gangsta, not half a guy going to a private school and half pretending to be a gangsta.

“He's scared to death, he's scared to look at his fucking yearbook; Fuck Cranbrook!”

This is a technique to dig deep the opponent, which means that the opponent does not want to admit himself. Papa-Doc is now in a dilemma when he can't deny his background, but if he admits it, it will lose face because he accepts himself as a "fake gangsta".

“Fuck the beat, I'll go a cappella Fuck a Papa Doc, fuck a clock, fuck a trailer Fuck everybody! Fuck y'all if you doubt me! I'm a piece of fucking white trash, I say it proudly And fuck this battle, I don't wanna win, I'm outtie Here, tell these people something they don't know about me”

This closing sentence shows two options for Papa-Doc:

1. Papa-Doc will diss B-Rabbit using the facts that B-Rabbit gave earlier, but if he does, Papa-Doc will definitely lose. Because first, like I said, repeating what B-Rabbit said and Papa-Doc would be no different from an idiot. Secondly, Papa-Doc is the son of a rich family with a warm background, he can't diss B-Rabbit, who comes from a poor family because if he did, it would be no different from diss all Detroiters?

2. Papa-Doc put down the mic and left the ring to save some dignity for himself. Of course, Papa-Doc chose this option.

In short, in order to diss a stiff-necked opponent in a rap battle, the rapper's skill must be in the category of "diss to death". However, the techniques in the verse of B-Rabbit have nothing outstanding to make the opponent speechless. However, considering the circumstances in 8 Mile, the fact that Papa-Doc let go of the mic was simply because he lost face in front of the Detroit audience, not necessarily the verse of B-Rabbit was too good.

All credit goes to trantuansang.com.

[maybeyoumissthisf-kingpost]

Art of Discount: Distribution Discount

The boss said, in business there are two things not to be missed: one is the customer, the other is the profit. Customers, in this article, are distribution intermediaries - the bridge that brings products from manufacturers to consumers. The success of a business depends on many distribution channels. For one thing, the discount budget for these intermediaries is never a small number. Therefore, discounting for distribution intermediaries is always a brainstorming problem about costs - profits and bold negotiation art in business.

Before discussing discount, let's talk about selling price and distribution margin

Simply put, margin is the difference between the selling price and the cost of goods sold (COGS).

Distribution margin represents the difference between the selling price and the cost of goods sold through each distribution level, such as from manufacturer to distributor, distributor to retailer, retailer to shopper. It can be said that understanding and setting distribution margin is very important for any business.

Normally, margin for distributors can range from 3% - 30% of the selling price; And with retailers, sometimes up to 60%. This difference depends on each industry, specific product and who pays for marketing activities.

But not all margin is profit

Many people often think that the selling price is calculated as simple as: determine the product COGS, then markup the desired profit as the selling price? It's not that simple. Such a calculation is DEAD. There is a huge margin in the middle that you have to share with the distribution levels. Normally it would look like the image below:

However, not all margin is profit. Because intermediaries also have to bear the costs such as transportation, storage, operation, sales, etc., when all these are deducted, the remaining margin is really their profit. Therefore, when negotiating with clients, you need to carefully calculate these details to determine the appropriate margin.

Margin for distributors & retailers of some categories

Product categoryMargin

DistributorRetailer

FMCG3-10%8-40%

Clothes15-30%20-50%

Electronice device3-7%3-7%

Car 5-15%

furniture 30-50%

Electrical and lighting equipment5-7%15-25%

Note that the above table data is for reference only. Especially with distributors, depending on the "obligations" that they have to perform, for example, if the distributor has to take care of marketing, then the margin will be a different story. So you need to clearly define the role of intermediaries right from the start.

What is the role of the retailer in distribution?

A retailer is a unit that distributes products to the public in small quantities for consumption purposes, such as shops and supermarkets. They buy products from manufacturers or wholesalers/distributors to resell to end consumers. It can be said that the retailer is the last link in the distribution chain, so they know best what the retail price is acceptable to the market.

So what is the retailer interested in? They use everything they have to raise the margin as high as possible. And the biggest asset a retailer has is shelf space. Usually, they will compare the margins of brands, to "favor" the display space and push sales for products with higher margins.

Most retailers demand a lot and there is always a way to create a margin to fully exploit the brand's discount budget.

What is the role of the distributor?

A distributor is an intermediary between the manufacturer and the retailer; or between producers and industrial consumers – ie businesses that buy products as inputs for production and business (for example, roasted coffee sold to shops, fresh meat supplied to restaurants). , tires for car manufacturers)

If a retailer's greatest asset is display space, a distributor's greatest asset is its sales force, transportation, and warehousing. The distributor's margin is therefore determined based on these costs. To help distributors optimize margins, you should streamline the ordering process, design packaging at all levels so that distributors can easily divide and arrange when storing, and provide detailed and complete documentation for distributors. distributor's sales team.

Determine the margin and selling price for the distribution chain

Why do this? Because this is the basis to help you easily negotiate with customers, and also a way to clarify the expectations of both sides. Based on my International Trade Marketing experience, I find this extremely important when working with international distributors.

5 steps to set the selling price for the entire distribution chain

Step 1 : Determine your COGS

Determining the cost of goods sold is definitely the first accounting step that you need to take as the basis for the next calculations.

Step 2 : Identify the factors that increase the selling price at each distribution level, then set an expected markup percentage value for each item, such as the table below:

Elements% Markup

ManufacturerDistributorWholesalerRetailer

Transportation    

Packaging and unpacking    

Storage    

Financing    

Marketing    

Cost of Sales    

Hidden variables and miscellaneous    

Profit    

TOTAL    

Note : You need to have a specific assessment and clarification of the obligations of each level of distribution. For example, if the distributor does not carry out marketing activities, enter 0 in the marketing row of the distributor column.

However, in my opinion, you should not put marketing on margin, but should negotiate a marketing rebate on each distributor's order, along with the requirements for the implementation plan, documents and operational images. This will give you more control over the distributor's marketing activities, rather than letting them do what they want (I'll explain why below).

In addition, product damage or loss always occurs in transit. To minimize this risk, you need to ensure the quality of the container – which, of course, costs more. Adding this cost when calculating margin is a necessity. Plus, most distributors and retailers ask for as many samples as possible, so you shouldn't forget this either. Remember, all hidden fees and “miscellaneous” fees must be recorded when you set up margin to ensure the benefit of all parties.

Step 3 : Set selling prices for distribution levels

After completing the % Markup table for the distribution levels, we can calculate the selling price for each level, by multiplying the COGS of the product by the total % Markup.

Assuming the total % Markup of the manufacturer is 25%, the distributor is 33%, the wholesaler is 43%, and the retailer is 150%, we get the following table:

CALM. Don't panic if you see the price from the manufacturer increase by almost 5X when it reaches the consumer. This is just a normal thing in the district!

Step 4: Build MSRP (Manufacturer's Suggested Retail Price), ie the manufacturer's recommended retail price

MSRP, or list price, is usually set based on a company's business strategy and market competition. The purpose of the MSRP is to keep prices at the same store level. Through market research and looking at profitability for the entire distribution system, MSRP ensures that stakeholders from manufacturers, distributors, wholsalers and retailers all reap the benefits of selling products to end-users. together.

MSRP calculation cannot be based on feelings but needs a basis. There are two ways to determine the retail price:

Bottom-up : That is, based on the margin calculations that we have done in the last three steps. After having the product COGS, we markup the costs of the intermediaries to set the selling price when it reaches the consumer.

Top-down : That is, based on the market's benchmark and then determine the selling price that the majority of consumers can accept (this is suitable for the mass product line, meaning "no segmentation").

MSRP is extremely useful in helping manufacturers control retail prices. Also, when calculating, don't forget about taxes (like VAT).

Step 5 : Discount for distribution intermediaries based on MSRP

After MSRP is available, a discount program for distribution intermediaries will be implemented based on this list price from the manufacturer. That's why I started clarifying the margin and selling price for intermediaries before going into the discount section. Thus, the next question arises: How reasonable is the discount for distribution intermediaries?

Types of discounts for distribution intermediaries

Depending on the field and industry, the discount for distribution intermediaries may vary according to common convention. However, you need to define the specific type of delivery discount to apply to your customers. In general, there are three main types:

1. Specify a special price for each level of distribution

The manufacturer sets a specific selling price for each distribution level. Using this method can skip the MSRP step. It is quite simple and convenient for invoice and accounting work. But really few people use this way.

2. Direct discount on list price

This is done by setting up a list price list (MSRP list), then specifying a different discount for each level of distribution. For example 5% for retailers, 8% for local distributors, 10% for regional distributors. This is the method that I am recommending you to use.

This method is popular because it is suitable for diverse trade channels. Many people like this because it helps manufacturers keep the actual selling price secret, not only from distributors, but also from consumers and competitors.

But the most important advantage of this method is flexibility. It facilitates seasonal or cyclical price adjustments by adjusting the discount rate. Especially through it to control the distributor's margin. However, control is only really achieved when the discount is accompanied by resale price fixing (RPM).

3. Fixed discount + additional discount

This way you also have to set up an MSRP list, then define a fixed discount with an additional discount for each distribution level. For example 5% for retailers, 5% + 3% for local distributors, 5% + 3% + 2% for regional distributors.

At first glance, this method is no different from method 2. If you think so… then yes. NO DIFFERENCE. Even more difficult for accountants. How about so much trouble?

As mentioned, discounts are subject to industry conventions. The only reason to choose this way is because the field has always used it like that. There's no other way.

However, this also has the benefit of helping manufacturers get a complete picture of their sales channel structure; at the same time, reflecting the distributor's costs at different stages and the competition at distribution levels.

How to build a discount program for distribution intermediaries?

There are two schools of discounting programs for distribution intermediaries: First, cost-based discounting; second, value-based discounting.

Cost-based discount mainly supports transactions between manufacturers and distributors. Accordingly, the manufacturer compensates the costs incurred for the intermediary for the purpose of:

Support for expenses that affect the distribution unit's overall cost structure such as warehousing, sales, technical support, etc.

Cost support in some specific cases (case by case) such as advertising cooperation, price subsidies to compete with parellel goods, encouragement during the period of natural disasters, epidemics (COVID-19), travel markets down,…

Manufacturers can also give incentives to distributors when they are highly cost-effective, such as:

Discount for orders via electronic data interchange (EDI)

Cash discount for early payment

Pay (rebate) when reducing the rate of backlog

On the contrary, the manufacturer also needs to consider charging fees incurred to customers (if necessary) because of inefficient operations, e.g. requesting urgent orders.

Value-based discount to classify the level, as well as enhance the efficiency of the distribution channel. For example, the application of different discount rates based on the performance of the distributor, usually under the title of distributor of diamond, gold, silver, copper, etc.

Performance indicators may include:

Quantity and quality of committed resources

Sales growth

Point of Sale Report (POS Report)

Equipment, ability to repair, maintain, install

Value-based discount is usually determined based on the value brought to both the manufacturer and the distributor (such as sales growth that benefits both parties).

In addition, it is impossible not to mention a very important value that every manufacturer wants to encourage its distribution units - that is loyalty. Imagine, if customers are still "single heart" to distribute your products when facing more attractive offers from competitors, they deserve to be rewarded. Trust me. The cost to maintain the existing channel is still much lower than finding an alternative distribution channel.

Many value-based discount programs often come with loyalty values, such as: an extra discount for "Gold" and above distributors when they agree to distribute the manufacturer's own products. Why do I have to include a “Gold” or above distributor claim? See explanation at the end of the article.

Suggest some discount programs for distribution intermediaries

1. Quantity discount (discount when buying in bulk) : This program is to take advantage of economies of scale. If the customer can place a bulk order once, both the buyer and the seller can save a lot of costs. However, if the inventory is high, the time to place the next order will be longer, and at the same time increases the risk of canceling out of date goods if the sell-out is low (especially for short-dated products).

2. Trade channel discount : Is the reduction of the product price by a certain percentage above the listed price for each distribution level. The reason is so called because each different distribution level - such as distributor, wholesaler, dealer, retailer - will be applied different discount rates. Also because each distribution level is defined with its own functions, the Trade channel discount is also known as the Fuctional discount.

3. Seasonal discount: Business always has ups and downs, so people have the concept of business cycle. Since then, the Seasonal discount is designed to respond to these difficult times, for example, reducing the price of electric fans and air conditioners in the winter; discount winter coats.

4. Cash discount (discount payment): That is, discount for customers who pay before the due date. Normally, for most sellers, long-term debt will make it difficult to rotate capital. Therefore, Cash discount is an effective tool to encourage buyers to pay early to sellers.

5. Geographical Discount : This special discount program is often applied to distant distribution units or for export sales, where high shipping costs greatly affect the margin of customers. this customer group.

6. Promotional discount: This discount is a support for the distributor to carry out advertising, display or promotion activities. This support can be in the form of a direct discount on the sale price, or a direct payment to the distributor or fulfillment agency. Promotional discount is used quite a lot. However, I use another method that is similar, but more effective in controlling the distribution unit, which is marketing rebate - that is, paying a reward for the marketing activities of the distributor after they submit a plan, financial statement. data, marketing reports for manufacturers. Why are these additional requirements and conditions required with the distributor? Are we promoting bureaucracy? Or do we intentionally make it difficult for our customers so they don't get the discount?

Three Distributive Discounting Issues Every Salesperson Needs to Understand

1. Customers often do not feel the value of the discount program if there are no conditions attached

What does that mean? Let's say you go to a Chinese restaurant and when you get to the counter you see a plate full of sweets and it's FREE. You will definitely be inclined to take more than one candy since you DO NOT PAY for it.

Again, what if the restaurant asks you to pay for the candies? Of course you will tend to take less candies, more cautious in making decisions because you feel the VALUE of those candies.

Salespeople need to avoid giving away products easily without demanding something of value in return.

So how should we approach? It is a discount program that must be associated with a long-term commitment from the distributor, or a challenge from the manufacturer. For example, discounts on purchases of related products; or receive marketing support only when there is a clear and specific plan and report.

2. Once you cut the price, it is very difficult to raise the price again

If you are applying a quantity discount, what happens if the customer does not order enough quantity to receive the preferential price this time? Question: Can you convince customers to buy at a no-discount price?

This is very difficult. And of course, it happens often. Not to mention the discounted price offered earlier will reduce the opportunity to offer additional features and services of the item; or create a basis (reason) for the customer to hold the order until the quantity is sufficient.

3. The real “price” of discounting

According to the method of determining revenue target based on gross margin and discount percentage mentioned in part 1, with a gross margin of 20% of the product, you implement the buy 9 get 1 free agent program, equivalent to 10% discount rate. The "price" of this program is that you have to sell DOUBLE the sales (increase by 100%) to make a profit. Certainly, double target sales will make every Sales department distorted.

Business Victoria's magic formula for determining revenue targets based on gross margin and percentage discount:

If the price drops…And gross profit margin (%) is…

0%15%20%25%30%35%40%

5% 50.0%33.3%25%20%16.7%14.3%

6%150%66.7%42.9%31.6%25%20.7%17.6%

8%400%114.3 %66.7%47.1%36.4%29.6%25%

ten% 200%100%66.7%50%40%33.3%

twelfth% 400%150%92.3%66.7%52.2%42.9%

15%  300%150%100%75%60%

Therefore, always keep a close eye on the distribution channel, monitor the market situation, collect and listen to customer opinions. Don't always look to discount as the solution to every business problem.

Conclude

The story of the discount is quite painful: Sales department always wants to offer deep discounts to deal with customers. What they care most about is the sales (because they take commissions on it), not the margin. Meanwhile, the company always needs to optimize margin. Therefore, this issue is quite sensitive, easily leading to internal conflicts. How to avoid these conflicts? Where is the solution? Continue reading Part 3.

All credit goes to trantuansang.com.

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The Art of Discount (Part 1): Consumer Discount

Businesses often spend a lot of money to build programs to attract customers, typically using discounts. Because discounts - including all forms of discounts on sales - are one of the most obvious methods of creating value for customers to lead them to a decision to buy a product. However, not the more the discount, the more effective it is. With a consumer discount program , it's important to know where your audience is in their consumer journey. Thinking of a sales support program is not difficult, but how to make it effective is an artistic sky.

Discount and its benefits

Discount programs are generally used for three main goals: (1) Clearing inventory, (2) Attracting new buyers, and (3) Realizing revenue targets during off-season sales.

Why can discounting help businesses achieve these goals? Because it offers the following benefits:

Attract new customers effectively without launching a massive marketing campaign;

Encourage shoppers to make immediate purchasing decisions – especially effective when promotions are limited in time;

Push past period inventory or products nearing expiration date;

The product is highly likely to be promoted by the point of sale at no cost;

Pull inactive/inactive consumers to buy again.

The problem of discounting

Sales discounts have long been used to incentivize purchases and create a competitive advantage over other brand products at the point of sale. While discounting isn't a new tool, it always works – when marketers use it right.

However, an age-old problem with marketers is that they often apply discounts to every audience without considering what stage each audience is at in the buying journey.

Reference : Ladder model to analyze market share loss in the article What is the market? What is Marketing? Market share method to see which stage in the buying journey is the biggest problem causing you to lose market share.

So the solution is that we have to balance the timing - frequency of making discounts and determining the specific audience that your program is aimed at.

Build a discount program for consumers

Discounts should not be applied to everyone. I can't say which type of discount is best for your business. But I can suggest you how to implement those programs effectively.

There are countless ways to vary the discount program for consumers. But it has to be done wisely. At the same time, any discount strategy must be based on business goals and suitable for each buyer.

Plan before you make a discount

Before making product price cuts to achieve revenue goals, you need to make a detailed plan for the program. This is necessary to make sure that subsequent orders are still profitable. Accordingly, the issues you need to pay attention to are:

Know current gross margin, markup, breakeven point;

Calculate the best discount price to ensure profit;

Have an action plan to incentivize new buyers and boost purchase incentives for hesitant customers;

Survey programs and prices of competitors regularly;

Consider other selling options without cutting prices (more on that later);

Determining the time to apply the new sales price;

Monitor weekly, monthly, or yearly reporting metrics as sales decline.

How to set a revenue target when doing a discount program?

When adjusting the selling price of goods/services, it is important to know how this change will affect your gross margin and sales target. A successful sales program – that is, acquiring customers, while keeping profits – needs to be implemented with careful and careful calculation of gross margin, markup and breakeven point.

How to balance the above factors is not easy. Business Victoria, a business portal for the Victorian government (Australia) has released a spreadsheet that makes it easier for businesses to set revenue targets when making sales discounts.

HOLY RECIPE

If the price drops…And gross profit margin (%) is…

0%15%20%25%30%35%40%

5% 50.0%33.3%25%20%16.7%14.3%

6%150%66.7%42.9%31.6%25%20.7%17.6%

8%400%114.3 %66.7%47.1%36.4%29.6%25%

ten% 200%100%66.7%50%40%33.3%

twelfth% 400%150%92.3%66.7%52.2%42.9%

15%  300%150%100%75%60%

For example, with a gross profit margin of 20%, you reduce the price of a product by 10%, then the target sales need to increase by 100% to ensure a profit.

Suggest a discount program for consumers1. Discount for new customers

Sometimes when we need to expand product lines, enter new segments, or simply boost sales, we have to find a way to attract new customers. This work often consumes a lot of resources to "lead" this object to a purchase decision.

Therefore, a discount program to close the target at the Purchase stage needs to be properly implemented. When building a program for new customers, it's important to:

– Define target specific customer segments : We know we need to find new customers, but do not know who the new customers are. What's more harmful than a program targeting the wrong audience? What could be more wasteful and less effective than a program aimed at too broad a group?

– Personalize the program message: Once the target area is located, the next thing is to make sure that the target group realizes this offer is only for them, is their own EXCLUSIVE. This will motivate them to get closer to the buying stage. But it is NOT. You must also:

- Tell them why you discount: If you want customers to accept your deals, give them a reason. As Robert Cialdini writes in his book Influence: The Psychology Of Persuasion:

People simply want a reason for what they do. (People simply like to have reasons for what they do)

Remember that you only need to give them a REASON to lower the price, it doesn't even need to be convincing. This tactic works even if you streamline your discount as simply as “Teng teng… you’re new”, “Congrats on being one of our first 10 guests” (although maybe you were the 50th or… 500th buyer).

2. Incentives for loyal customers

If you already have a loyal customer base – which is best if you have or build it now – why not build a program to reward them? For example, give customers a coupon for their next purchase to thank them for supporting your product.

As reported by LoyaltyOne , up to 76% of customers want personalized offers based on their purchase history. Thus, a program to accumulate points to redeem gifts will be extremely effective to retain existing customers.

3. Holiday discounts

On major shopping holidays, such as Black Friday , is when consumers are willing to spend the most. This is when trade marketing programs work because it drives shopper purchase decisions immediately.

4. Discount for pre-orders when launching new products

When launching a new product, most of us want as many buyers as possible. Is it true? Pre-order discounts for limited quantities will quickly speed up a shopper's decision-making process.

However, it is also important to be careful because a pre-launch discount can reduce the value of the product in the mind of the customer. Therefore, do not reduce too much on the first day of product launch. In addition, showing the discount as a percentage or a specific amount must also be considered. For example, 20% discount doesn't sound as attractive as discount 1,OOO,OOOd right? Although the reduction amount of both is the same.

5. Sold in packs/sold in combos

Bundle/combo selling is a great cross-selling technique that encourages shoppers to buy multiple products to get a better price than buying each item individually. This form is especially effective when businesses "catch the trend" at the right time. Remember the trend of making Dalgona coffee that caused a fever in 2020? Large coffee brands such as Trung Nguyen and Nescafe have immediately launched coffee combos sold with milk to serve the needs of users.

6. Discount when buying in bulk

Why not offer a better price when customers buy a lot of your products? If you are an office worker who is addicted to milk tea, you are probably familiar with programs such as "Buy 3 cups, get 1 cup free", "Buy 4 cups, get 2 cups", etc. What are the results? That is, you will "inviting" the whole office to order enough, and the milk tea shop will not only receive orders of greater value, but also be "promoted" for free and recruit more new customers.

Not only helps increase the size and value of the buyer's order, quantity discount is also an effective way to move stock when the seller needs to clear the inventory of a certain item.

7. Discounts for suspended carts

You may have heard about this offer already, but it's such a great retargeting technique for online channels that I just can't pass up. According to Baymard , up to 70% of shopping carts are abandoned because of additional costs in the order. Thus, a discount program for shoppers who are hanging orders will help you regain a large number of orders that seem to have been lost.

This form has a major drawback. That is, if you continuously offer discounts on suspended orders, the next time the shopper will create a shopping cart and then exit, then wait until a promotional offer to buy at a cheap price. Therefore, you should only apply this program once per customer, or limit the duration of the program.

8. Discount when referring acquaintances

You certainly understand the importance of word of mouth marketing. Nothing can be more reliable than a recommendation from an acquaintance. According to ReferralCandy , up to 83% of satisfied customers are willing to recommend to their acquaintances, but in fact… only 29% actually do this.

Therefore, a discount program when introducing new people will encourage your customers to be more "active" in promoting your products to everyone around.

But discounting doesn't always work

Many people often look to discounts as the solution to all business problems, without understanding what the customer's problem is. Therefore, it is not surprising that people massively do promotions but in the end do not see any noticeable effect. Then we put in the report the reasons abc xyz that explains why the program doesn't work.

Discount blindly will kill your business. The more you abuse the discount, the more you lower the value of your product in the customer's mind. Don't compromise with customers. Find out the problem, then give them real solutions.

If discounts don't help boost sales, remember that there are always alternatives, not always a price cut. Here are some suggested programs other than discounts:

Service improvement

If you do not want to reduce the price of the product, the service improvement that comes with the purchase is also an effective way to attract buyers, such as:

Free installation

Free shipping

Free gift wrapping

Enhanced after-sales (warranty, maintenance, ...)

The most typical example is thegioididong.com, an extremely successful mobile device retail chain of MWG. By upgrading customer service to a new level, Mobile World makes buyers feel like they are no different from "God" right from the moment they send the car. As a result, they have risen to become the mobile device retail chain with the largest market share in Vietnam thanks to improved service, even though the selling price is always higher than other places.

However, service improvement needs to be harmonized before, during and after sales to achieve the best effect. Otherwise, this will be a double-edged sword if the brand previously created too much trust for buyers but was weak in after-sales service, possibly even receiving a series of complaints from consumers, affecting to brand reputation and reduce the ability of customers to repurchase the product/refer to acquaintances of customers who have purchased the product.

Packaging development

Have you ever thought that your current product packaging is gradually becoming boring to consumers? Why not think about "changing clothes" for products to look more eye-catching on special occasions?

Example : In the midst of the 2017 Sea Games football fever, Coca-Cola "caught the trend" very well to cheer the home team by wearing player shirts for three product lines of Coca, Sprite, Fanta at Circle K.

Comes with a gift

The word “free” always has a strong appeal, so GWP (free gift with purchase) will be another option to effectively replace discount. The "cheapest" items to give are usually cloth bags, stainless steel straws, glass vases, porcelain cups, etc., but make customers extremely excited.

Even free gifts sometimes not only aim to catch the shopper's attention but also support other marketing purposes.

Example : Trung Nguyen gave a sample of Legend Classic coffee in a bag of G7 3in1 coffee in the US. It can be seen that besides building promotion for the G7 series, they also intentionally sampled for their Legend premium coffee line and helped buyers identify genuine Trung Nguyen products among the parallel sea of ​​goods on the market.

Create an event

If you run a cafe-restaurant business, you definitely want to avoid discount programs. Especially when it's a premium brand. Think of a live music session, contest, social activity, etc. on a certain day of the week or month. Because entertainment is always an essential human need, it not only helps attract people, but also makes them want to linger longer, order a few more dishes or drinks to sip and enjoy.

Donate to charity/organization for the environment

Momo : For every purchase of movie tickets you buy at any CGV, Galaxy Cinema, BHD, Lotte Cinema, Cinestar and MegaGS cinemas and pay with MoMo, you have donated 1,000 VND for the program "Red lucky money". smile for 100 children”.

Ecosia : This search site uses advertising revenue to plant trees, on average every 45 searches will convert to a planted tree.

Instead of discount, these two brands convince customers to use this money to donate to charity or for the environment. Of course, the persuasiveness of this program is quite high and is often warmly received by consumers. Not only avoiding product discounts, but also building an effective CSR program to the community and increasing brand trust.

Conclude

Discounts have always been a story about sensible spending. If you use them properly – in the right place, with the right person (object), at the right time – then you will definitely get positive results. Again: Never offer a discount to everyone! And don't abuse the discount, because we always have other effective replacement programs that don't have to cut the price of the product.

Although brands are always encouraged to make programs for consumers, retailers are often not too excited about these programs of the brand. Why? Because it is a battle for market share between brands, while the point of sale does not receive much benefit from this competition. Suppose the sales point of sale for the category is 100 VND, in which brand A accounts for 40 VND, brand B accounts for 60 VND. When brand A does promotion, their revenue increases to 70 dong, and brand B doesn't do it, so it's only 30 dong. In general, the total revenue of the point of sale is still 100 VND.

Now do you understand why I said retailers aren't usually excited about brand consumer programs? Competition at the point of sale is another story that you need to pay special attention to, which is why I continue with Part 2: Discounts for distributors.

All credit goes to trantuansang.com.

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Use the middlemen or direct sales team?

One of the most important decisions in business is how to sell a product or service. Therefore, how to build a distribution channel strategy is very important, because it directly determines the survival of the business. From the perspective of a manufacturing business, what do you think is the optimal sales plan: Use a distributor or develop your own direct sales team?

Difference between distributor and direct sales team

A direct sales team is a team of one or more people established, managed and paid by the business itself to operate in the target market.

An outside agent is any person/group of people or organization outside your business that sells your product in exchange for an economic benefit. An example for an outside agent is sales reps (sales reps or manufacturer' reps) who sell your products for a percentage of commission. Distributors are similar to sales reps, except that they buy products from manufacturers and resell them to other agents or sell directly to consumers.

Building a direct sales team: is the straight line the shortest path?

It is said that the shortest distance between two points is a straight line. Using the primary sales team is to create a direct line from producer to consumer for the product. This is a common approach to bring products to consumers without going through any middlemen.

Selling products directly to consumers, the manufacturer will retain all profits and control the entire sales process. At first glance, cutting down on the intermediate distribution unit sounds like a good idea. However, building a sales team comes with many other hidden costs. These hidden fees are like the tip of the iceberg, if not managed, it will become a great burden, causing a serious drop in revenue and profit, and even crippling many other business activities.

Given the case when the business moves to the international market, can you imagine how much it will cost to build a sales team abroad?

Would it be better to use a distributor?

Through a distributor, you will receive some of the following benefits:

Minimize overhead costs : With available resources, the distributor will be in charge of recruiting, managing, training, paying, warehousing, shipping,... and optimizing distribution channels. distribute.

Get an effective distribution channel with local understanding : Your business can take advantage of the existing customer base of the distributor; moreover, they know the local laws and consumer behavior in your target market.

Capture the price situation and the purchasing power of the market : You do not need to spend too many resources to survey the market, because this information is completely in the palm of the distributor's hand.

High economic efficiency : By minimizing the above costs, you can manage your business activities effectively.

However, if you do not have a good relationship with a distributor, using an intermediary is also a double-edged sword, because:

They are not your people : You have no direct control over the sales process. What you can do is build a good relationship with the distributor, so that you can receive regular market updates from them.

Distributors don't just sell your products : There will be times when your product will not be a distributor's top priority. Therefore, in order for your products not to be "behind" in orders, it is extremely important to build a reasonable relationship and policy with distributors.

Channel conflict : This is inevitable and requires you to negotiate and strictly control the operating partition of each distributor, otherwise your product will become chaotic in the market.

Distributor soft power : The process of working with distributors is highly dependent on relationships and policies. The larger the revenue, the more dependent you will be on the distributor. The more support you get, the more support you will be asked for. Therefore, how to ensure sales-in and sale-out is a difficult problem for any manufacturing business.

While building a sales team consumes a lot of resources, using a distributor has many dangers that are difficult to control. Thus, there will never be a definite answer to the question "is it better to build a direct sales team or use a distributor?", but the question must be: when to build a team. sales team, when to use distributors?

Choosing a distribution channel strategy based on the product life cycle

Deciding on sales force selection is not an easy one. Enterprises need to fully consider all three factors: (1) Economic efficiency, (2) Degree of control, and (3) Business environment.

Talking about economic efficiency, we have to talk about selling costs. Due to the high cost of salaries, organization and staff training, fixed costs are the top concern when building a direct sales team; and variable costs will be the most paid when using a distributor because it has to pay for discounts and support. That means:

When using a distributor, the higher the revenue, the higher the cost of selling.

When building a direct sales team, the more revenue increases, the less the cost of sales increases.

As a result, we have a break-even point below which using a distributor will have a lower total cost of sales than building a direct sales team; above that, using a distributor will be more expensive. That cost difference is presented in the following chart:

Speaking of the level of control , need to see the ability to build a sales team of the business in the market? Ability to compete with other manufacturers in terms of policy for distributors?

When it comes to the business environment , it is necessary to consider the market situation and conditions. What stage is the market in? What are the advantages and disadvantages of building a sales team and using a distributor?

Based on the above analysis, I use PLC (Product Life Cycle) Model to make sales force selection decisions. This is an extremely useful model for businesses in developing a phased strategy. Accordingly, the product life cycle consists of four stages:

Stage 1 : Product Introduction Stage 2 : Growth Stage 3 : Maturity (also known as saturation Stage 4 : Decline)

If three time points are set: A is when the product enters the market, B is the break-even point, C is when the product begins to decline, a phased solution is formed as follows:

From A to B: Get the most out of distributors

This is the stage when the product begins to enter the market. During this period, the customer base is quite limited and the revenue is relatively low. The strategic goal of the business at this time is to build an identity, increase brand awareness, build a sales channel and enhance the product experience to consumers. Therefore, using a distributor is the best option because they have a certain source of customers and market knowledge. In this way, on the one hand, enterprises take advantage of the resources of intermediaries in the beginning; on the other hand, selling expenses are optimized because the discount on sales is still low.

From B to C: It's Time to Build a Sales Team

When the break-even point is reached, the product now has a certain foothold in the market, with high and stable revenue growth. Therefore, the increasing discount on sales for distributors will increase selling expenses. At this time, building a direct sales team is the next strategic step for businesses to achieve three benefits: (1) optimizing economic efficiency because the cost of building a sales team is now lower than the cost. for distributors; (2) strictly control the product situation in the market and develop the strategy at will; (3) reduce dependence on distribution intermediaries.

However, in this stage, distributors still play a strategic role, so businesses still need to maintain relationships with them for the next stage.

After point C: Re-cooperating with distributors

The recession saw sales begin to decline. What businesses can do now is prolong the product's presence in the market. The decision to re-cooperate with a distributor will ensure economic efficiency when sales go down, in addition to prolonging the product's presence on store shelves and creating momentum to withdraw from the market.

Conclude

Using a distributor and growing the sales team to the product lifecycle model is just one approach. It is not an immutable law and cannot be applied to all industries and markets. Depending on the characteristics and orientation of the business, the solution and approach may be different. However, through the above analysis, I hope you will find some suggestions for the direction of development for your business.

All credit goes to trantuansang.com.

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Halloween is the disguise of capitalism

Halloween is an annual festival held on October 31. Today, people do not remember much about the original religious significance of Halloween, but accept it as a festival of entertainment. Referring to Halloween, we often think of spooky images, scary pumpkins, spiders, walking skeletons, etc. But have you ever associated Halloween with an economic system?

Economic activities during Halloween

According to the National Retail Federation (NRF) , Americans are expected to spend about $2.6 billion on candy this year. Even if you take into account the cost of buying costumes and decorations, the spending on this item also jumps to $ 8.8 billion. Hundreds of millions of Americans eagerly await this holiday, tens of millions of children will go door-to-door playing Trick or Treat for candy, and it's caused a massive spending wave.

There are a lot of startling statistics about Halloween willingness to spend. However, in another angle that these numbers still do not say, is that all of the above consumption behaviors are completely voluntary and without any influence from the government.

Hundreds of millions of Americans voluntarily spend $2.6 billion just to buy candy and give it to strangers who knock on their door. Of course, no one forced them to be so "generous". The government does not force homeowners to give children candy, nor does it force parents to spend money on Halloween costumes for their children. Everyone acts together towards a common value for society, based on the spirit of complete freedom and voluntariness.

The Relationship Between Halloween and Capitalism

Capitalism is a term that is scorned by many people because it is often confused with Corporatism – the government gives businesses subsidies to help businesses grow, and this is ignored. considered non-competitive and close to the socialist form. However, Capitalism, properly viewed, is the voluntary exchange of goods and services between individuals and organizations for the mutual benefit of each. Halloween is a completely free growing industry, independent of the government. It can be said that Halloween is the embodiment of Capitalism.

When the government interferes in matters of individual liberties, it reduces the purchasing power of the economy, and in this way deprives economic opportunities. Only when consumer demand occurs naturally and exchanges are voluntary, can it generate new economic opportunities for mutual benefit. For example, when the demand for Halloween candy increases, so does the demand for labor in a confectionery store, the confectionery store employees are paid and then use that money to buy a pair of sneakers at a store. Footwear; Similarly, the demand for footwear increases and the shoe store employee will have money to buy a new suit at a clothing store. That is a prime example of how an economy works.

Halloween is a more effective stimulus package than any stimulus package from the government. Without any impact, without coercion, the economic machine just works in the most natural and smooth way. Halloween, like Capitalism, operates entirely on a voluntary win-win basis. There is no coercion, respect and absolute respect for each person's choice, Halloween and Capitalism are the immortal monuments of liberalism.

All credit goes to trantuansang.com.