Study On The Distrubutor Management Of KL Xi’an Branch

With the rapid development of China’s economy and the general improvement of people’s living standards since the reform and opening up,China has become a must-see destination for major air-conditioning brands.KL is one of the few central air-conditioning brands that have set up a separate sales branch in Xi’an,and has more than 100 distributors,sellers and agents to date.With more and more dealers and customers,KL has experienced some problems in distributor management,such as untimely payback,difficulty in meeting annual sales targets,unrecoverable payments due to distributor closures,conflicts of interest and price wars between distributors,and uneven quality of distributors.Especially since the outbreak of the epidemic at the end of 2019,the Chinese market has faced rising material and labor costs,as well as the stagnation of a large number of projects.Although KL Xi’an’s annual sales have increased,profits have not increased much,and it is urgent to explore how to get more orders in the current state,optimize the distributor management model,and form a distributor management strategy that better meets KL’s needs and the current market environment.This paper takes the distributor management strategy of KL Xi’an Branch as the research object,selects some distributors of KL Xi’an and marketing managers who manages the distributors by means of sample survey,conducts questionnaire survey and interview respectively,analyzes the current situation of distributor management of KL Xi’an,explores the problems and causes of distributor management,and proposes the optimization strategy of distributor management of KL Xi’an.The main conclusions of the study are as follows: KL Xi’an has achieved good results in distributor management after years of development,built a three-level network management body of headquarters,region and dealers,formed relatively stable cooperative relationships,established a relatively perfect distributor management system,and developed effective distributor management methods.However,there are still some problems,including the low threshold for distributor selection,the imperfect exit mechanism,and a disparity in strength of different distributor,conflicts occur between distributor from time to time.Inadequate incentive mechanism results in low loyalty of distributors,while insufficient financial control brings high risk.Accordingly,five strategies were proposed to optimize the distributor management of KL Xi’an.Firstly,optimize the distributor selection and withdrawal mechanism.Secondly,establish a project declaration system to avoid dealer conflicts.Thirdly,strengthen the distributor incentive mechanism to improve distributor loyalty.Then,strengthen the financial management of distributors to control risks.The last one is,assist dealers to improve internal management to enhance business capability.