Discussion on sales team management from Huiyuan incident

As the leader of the juice market in China, Huiyuan Juice was boycotted by many netizens after it was announced to be acquired by Coca-Cola Company, and many marketing experts wrote articles to express their views. The author is also thinking, such as why Huiyuan wants to sell? Why didn't Huiyuan sell to Coca-Cola (Wahaha)? Because the author is devoted to the study of sales team management in China, I have never joined the discussion of Huiyuan selling itself or Huiyuan marrying the West. The author wrote about China Leap Crisis and Sales Team Management, thinking about Sanlu incident from the sales ethics of sales representatives, and thinking about sales pressure management from the sudden death of sales representatives. Today, I searched online for Huiyuan layoffs, only to realize that I have the responsibility to discuss Huiyuan's sales team management with my colleagues. According to the network information, the author browsed more than 200 articles about Huiyuan, and summed up five major problems in Huiyuan's sales team, because the information is second-hand, please correct me.

1, there must be something wrong with the sales culture of Huiyuan sales team.

A Huiyuan employee posted a letter he wrote to Zhu Lixin on the Internet, which mentioned that Jiang, the current regional sales manager, has worked in Huiyuan for more than ten years. No matter in Jiangsu province or Yancheng factory, everyone can feel that he is serving Huiyuan with his heart, but Sun, the general manager of Yancheng factory, has put people to death. It is said that Jiang had an affair with him when he was in the supervision department of the headquarters. After Sun took office in Yancheng factory, he transferred Jiang to the storage department as the manager on the grounds of poor market. Jiang didn't hold a grudge for it, but worked hard to do a good job in the warehouse department. At the peak of delivery at the end of last year, he normally rested for no more than 5 hours every day. Our employees were very sad when they saw it, but in the end, Sun was transferred to an area with poor market sales for various reasons. Will people who serve Huiyuan wholeheartedly do this?

This is very contradictory to Huiyuan's talent view published on the Internet. Judging from Zhu Lixin's performance in Huiyuan's selling himself to Coca-Cola, for example, "Enterprises should be sons and pigs. Brands have no borders. Selling a business is not selling a country. Moving upstream of the industry, it can be seen that Mr. Zhu is not a responsible entrepreneur or an honest businessman. He only has eyes for money. He didn't know that Huiyuan's success today was a national industry that he had talked about for many years, and he forgot the call of "Huiyuan entered the sea and originated from China" to the Chinese people. This is the spiritual factor for China people to buy Huiyuan juice. This is the reason why private enterprises can still grow bigger when their management level is still backward.

Many business executives are not aware of this. When you need to buy it, say that you are a national brand and serve the three rural areas. And sell it at a good price and say it has no borders. The sales culture created by this dishonest businessman must be a negative culture without integrity.

What they say is completely different from what they do. In the face of the truth, they also refer to the deer as a horse and fool consumers (others), so the excellent ginger has become a victim of this culture. The author thinks that this is the root cause of sales management problems. This dishonest culture will inevitably call dishonest people to join its ranks, while honest people will be driven away one by one.

2, Huiyuan's sales strategy planning is problematic.

From 2002 to today, Huiyuan's sales organization structure has been "reformed and reorganized", from marketing headquarters system to business division system, to regional system, to sales subsidiary system, to sales subsidiary joining system, to sales subsidiary legal person system, and the sales channels are from distribution system to specialty store (terminal management system). Results There are some disadvantages in sales management, such as overstaffed organization, lagging management, low efficiency, unreasonable use of funds, simple pursuit of sales volume and high sales expenses. Therefore, some franchisees are eager to cut their sales representatives to reduce operating costs. Therefore, Huiyuan Company encourages sales representatives to sign contracts to become its distributors and open up blank markets. At present, 647 sales representatives have become its distributors. It can be seen how weak the banker is. In this way, there are many contradictions between specialty stores and dealers, which not only affects the enthusiasm of dealers, but also makes it difficult for specialty stores to support expenses. Finally, the store became a "vase" against Huiyuan's original intention. Both factions are injured!

These measures show that there are problems in Huiyuan's sales strategy planning. The author engaged in sales management in foreign-funded enterprises and found that they generally adopted gradual changes in sales organization. Their sales organizations range from sales companies to regional system, to business department system, and then to mixed system of regional and business departments. Sales channel management needs to learn from Wahaha. One of the secrets of Wahaha's success is to establish a joint marketing network model to help dealers make money, while Huiyuan takes specialty stores and dealers to make money.

Last year, a sales representative of Huiyuan said on the Internet that Huiyuan's management and operation of dealers were very primitive and backward, and it adopted the general agent system to supply goods to dealers at bare prices. However, the time from the order to the shelf of the terminal business is about 7 days. The management of sales channels has not been straightened out, which stems from the disorderly change of sales organizations. We know that when Wahaha's annual sales amounted to 65.438+0.87 billion, there were only 48 offices and more than 2,000 sales envoys (helping distributors and terminal sellers), while Huiyuan's annual sales amounted to about 2.7 billion, and there were more than 80 sales subsidiaries, more than 320 offices and more than 4,000 salesmen in China. Results Huiyuan laid off 1406 employees in the first half of 2008, from 3,926 employees at the beginning of the year to 2,520 employees, with sales of12.94 million.

Although I have not calculated the inflection point of Huiyuan's sales team, I believe that Huiyuan's sales team must have a marginal decline. The management span and scope of Huiyuan sales team is certainly unreasonable, otherwise the sales efficiency of sales envoys will not be so low. The average sales of sales representatives in Huiyuan is more than 6 million RMB, while the average sales of sales representatives in Wahaha is more than 9.3 million RMB. In addition, when Huiyuan announced the sales of 2.6 billion yuan in 2007, the sales target of 20 1 1 was 1000 billion yuan.

This reminds me that the chairman of Hangzhou Lusheng Group mentioned in the EMBA lecture of Zhejiang University that the sales of Lusheng will reach 654.38+0 billion in the next five-year plan. He said that this 654.38+0 billion is the average annual growth rate of the previous five years multiplied by the current sales. The author thinks that Huiyuan's sales strategic sales target may be estimated in this way, that is, the sales strategic data that comes out of the head. It can be seen that the sales managers in our country simply don't know how to use the derivative comparison funnel method and PEST analysis method of market key factors to plan strategic objectives. This is the fundamental reason why many enterprises in China can't break through the second take-off.

3. Problems existing in sales human resource management of Huiyuan.

A Huiyuan employee posted n kinds of "incomprehension" about Huiyuan juice sales management on the Internet. In which: 1, S region transferred 27 marketing personnel to the factory. (Note: Most of them are fresh graduates, and Z factory always requires them to work in Z city for one month before returning to the factory, which is equivalent to one month's internship. ) 27 people know that they will return to the factory in January, and their jobs are completely idle. If they can do less, they will do less. If they could, they wouldn't do it. /kloc-27 people returned to the factory after 0/month, and the total distribution amount did not exceed 400 boxes. Question: Do fresh graduates have any first-line marketing experience? Can you get familiar with the route and market of Z city in one month? Manager y didn't attend the meeting. When he came back, the sales representative made a small report and told all the sales representatives. (basically, which male sales representative went to have dinner with which female sales representative, which sales representative didn't come back to the office before what time, and so on. As a result, manager Y reprimanded all the sales representatives. What is even more surprising is that sales representative S was appointed as the head of the office on the spot, which led to the staff in the office being distracted and demoralized. Since then, gangs have formed in the office, and there is no team spirit. All the sales representatives in Z city did not receive any training when they took up their posts. The company only issued product manuals. After arriving at the office, Manager Y only briefly talked about the company's philosophy at the morning meeting and taught everyone to shout slogans. As for what products the company mainly promotes and how to crack down on competing products, many sales representatives didn't know the price and items when they went to the terminal on the first day, which made a big joke.

From all this information, it can be predicted that there are serious problems such as "recruitment, training and promotion" in the sales human resource management of Huiyuan Company. The sales efficiency of this sales team can no longer promote the development of the company. However, Zhu Lixin and other Huiyuan executives attributed the decline in sales and gross profit this year to external environment, such as rising fruit prices and snowstorms and earthquakes. This is the direct tragedy of Huiyuan Company. Our other local enterprises should learn from it and strengthen the promotion and training of human resource management in the sales department. A strong brand will eventually be eliminated because of the backward management level of the sales team.

4, Huiyuan's sales team counseling has problems.

We know that sales guidance refers to the encouragement of sales team, the management of sales team morale, the on-site guidance of sales business ability, the management of sales process, the management of sales expenses, the management of sales meetings and the management of sales reports. Among the seven management, the sales director generally focuses on sales report management and sales meeting management. They put a lot of energy into the meeting, ignoring the management of sales meetings and rarely giving on-site counseling.

So is the sales manager of Huiyuan Company. For example, Huiyuan employees say "1", and the sales representatives leave on time every day, but what is the actual situation? Sales representatives often miss visits, and the company stipulates to visit 50 stores every day according to the prescribed route. Sales representatives only visit the first half of the prescribed route or only a few big stores, and find a place to cool off when it is hot. Sales representatives often make cursory visits. When they went, they just asked the boss "Do you want goods" and left. The visit lasted less than one morning, and then they went online in the afternoon. Sales representatives often simplify small orders. Today, they ran 20 cases of orders and only wrote back 10 cases. 10 What's the use? Get off work tomorrow and leave it till tomorrow. Don't you know what the sales representative did? The manager doesn't read the daily newspaper of the sales representative. I don't know if it's true or not. Why write a daily report like that? I don't understand. 2. The distribution rate of HY juice market in Z city is extremely poor. It is no exaggeration to say that there are few posters in Z city. In Z city, HY 100% fruit juice has almost no competing products in the catering industry except adding fruit juice, but it is not impossible to do it (the catering operation is complicated, the dealers don't cooperate, they don't want to do it, and the manufacturers won't do business). What's even more ridiculous is that the Mid-Autumn Festival is approaching, and the company has invested a lot of money to promote gift boxes, but Manager Y doesn't do it in the living area. All these problems indicate that Huiyuan's sales management guidance has problems, and the management ability and enterprising spirit of the sales manager are not enough to support the company's further development.

The sales representative is the lifeblood of the company, and the sales supervisor determines the sales morale of the sales representative. If enterprises do not attach importance to the management skills of sales executives and strengthen management, then this sales team will have no fighting capacity.

5, Huiyuan's sales team evaluation has problems.

The focus of the evaluation and management of the sales team is not the evaluation of the final sales result, but the timely evaluation of the sales team in the process of achieving the sales target. When they make achievements, encourage or reward them to constantly encourage them to exceed the sales target (not only the sales target, but also the sales gross profit, sales activities and the number of customers), and attribute the reason for exceeding the target to their sales ability and sales efforts. When there is a gap between them and the target, guide them to attribute the reason to the lack of sales efforts and the need to adjust sales methods, rather than attribute the reason to the poor external environment, too high sales tasks, or poor sales ability or poor sales quality. And work hard with the sales team to find ways to achieve the goal and give more encouragement and guidance.

And "Huiyuan company's assessment of sales representatives is very direct, that is, to complete the task. If you can't finish the task in a month, don't take the salary of the task, which leads several sales representatives to kill the goose that lays the golden egg. No one wants to be a market, and no one wants to spend energy to cultivate the market foundation, because Huiyuan Company will be given a yellow card warning if it fails to complete the task for two consecutive months, and will be dismissed directly if it fails to complete the task in the third month. The inventory of dealers in this market is enough for two months, and there is no better way to expand without pressing the goods. Therefore, the sales representative of Huiyuan Company can only press the goods, take money, keep people and stop the service, and the sales policy is discontinuous, which leads to the poor reputation of retail stores. Retail stores don't sell this product at all. "

Huiyuan's evaluation of the sales team is the reason why the sales team has no centripetal force and cohesion. The fundamental reason for the error of this evaluation practice lies in the imprecise design of its sales compensation. Because the salary of the sales representative is deducted from the sales assessment, the employees are not well treated, which produces the loss aversion effect of Kahneman, and naturally finds some comfort from the hockey stick effect. As a result, the culture of pressing goods appeared and disgust spread. The sales team has entered a turbulent period of "resignation-recruitment". It is possible that the phenomenon of Russian dolls appeared in the recruitment, and the result was a ratchet effect. Finally, it needs surgery. Push it back.

This article analyzes that Huiyuan Company was acquired for deep-seated reasons. There is a big problem in the management of the sales team. Nevertheless, Huiyuan can have a thorough self-revolution, or sell it to other excellent national enterprises, such as Wahaha and farmer's orchard. In my opinion, the most powerful brand is a paper tiger without strong sales support. The strength of sales volume must be based on a strong sales team, which is the core force to achieve a great brand (or a great enterprise).

If the management of Huiyuan sales team is not discussed, more national enterprises (whether private enterprises or state-owned enterprises) will be in danger of being acquired or closed down. Without strong enterprises, there will be no strong motherland. Enterprises prosper and the country prospers. The sales team is prosperous and the enterprise is prosperous! The author appeals to the government and universities to strengthen the research and development of sales team courses, and to send more talents who know how to manage sales teams for the country and serve enterprises. The government should train and vigorously train research experts and training teachers in sales force management, so that they can improve the theory and skills of sales force management in enterprises. All colleges and universities in the United States have "sales and sales management" courses for MBA students, while China is almost blank.

Welcome to discuss your views with the author of glob Brand. Huang Dehua: Zhejiang University EMBA, China Master of Sales Management, China sales management research expert, sales management consultant of dozens of enterprises, visiting professor of Zhejiang University MBA, and distinguished teacher of Zhejiang University Enterprise Training Center. It is a pioneer in introducing ratchet effect, hockey stick effect, marginal effect, perceptual management, Russian doll phenomenon and Kahneman prospect theory into sales team management research. He has 12 years of successful practical experience in marketing management of foreign-funded enterprises, and won the titles of best sales supervisor, sales manager and regional marketing director in China. The best training modules: strategic sales management, strategic marketing management, customer demand management, sales communication and sales visits, and sales success rules. At present, he has published 27 papers in Sales and Market, China Medicine News, Medical Economics News and Medical Herald. His blog in Sohu is: China Sales Management University.