The Eight Rules for the Improvement of the Profiting Abilities of the Fast-consuming Enterprises

By: Fabian Barnes

The core of the enterprise operating, at first, is to survive, then to develop, finally to gain the profits which is the standard of measuring whether an enterprise is excellent or not. Under the condition that there is a much more intensification and spread of the global financial danger, the introduction enviroment of the fast-consuming goods enterprises will become worse leaps and bounds, the aggravation of competition will result in a much more production focusing on the basis of the degree of the original one, the professtion level of the averaging profit rate will continuously reduce, the oppotunity and space of the development of the enterprise will become smaller and smaller, thus, a majority of the enterprises are facing with the destiny of being got out from the market.
Competion will exist forever, but meanwhile, at any time, so does the opportunity. Under the production environment of the renewing of the style of the profession, the epoch that singly relys on the sales and the style to win has not existed for a long time. It is of necessity for the quick-consuming enterprise to search for the increasing points of the new profit, creat a profiting style that fits itself and promote the profiting proficiency of the enterprise, if they want to survive and develop under the new turn of the production environment.

With the opinion of the writer, the way to increase the profiting proficiency of the fast-consuming goods enterprises should be mainly considered from these eight aspects listed followed:

The First Part, the Market Base Rate

With the exacerbation of the competition between the enterprises and the rapidly following-step of the substitue production, the single market launching sales will become lower and lower. It will be rare and never existed for the single market in which the monthly consuming sales will reach hundreds of thoudsands and several millions. The efficient amount of the market will decide the preface of whether the enterprise will achieve the runing target sales, while as for the quick-consuming enterprise, it is the basic consuming of the style that has got and reached will decide the preface of the enterprise profit. Therefore, quick-consuming goods enterprises must make the extending of the market base figure as the fundamental core target of whether the enterprise can achieve the consuming target and the profit of the enterprise. Marketer should make an inventory for the current region market and the future exploring region market in order to plan out which are the renewed exploring market, which need to operate the market for two times, which need to reintegrate and adjust the customer market. On the basis of the whole inventory to the market, it should be pointed out that operating Two times for parts of the old markets, exploring part of the new markets wholly, as well as ensuring that the newly operated and explored market will continuouly launch products and grow up to form the efficient market.

For example:in a small and medium enterprise which operates the constant noodles profession in Henan Province, it has been for a rather long time that the sales of the enterprie has not got some efficient breakthrough. With the continous rising of of the market competition and the constant rising of the price of the raw materials, the condition of the enterprises operation is becoming lower and lower steps by steps, even at the verge of the deficit during a period of time, moreover, through the checkingi at the end of the year, the amount of efficient market for the continous delivery is merely less than 60. However, the deep-degreed market research and the analysis of the management level of the enterprise has changed the stragetic logic of the enterprise operation by adopting a series of stragetic improving measures. Among them there is a point to view extention of the amount of the market as the current work point, on the basis of the whole checking of the efficient market resouces, it is better to plan and arrange for the three levels of the promotion of the current marekt, the second-time operation of the old market and the exploration of the new markets, to give strong support for the exploration of the saling policy and the supporting degree pointed at the new market . Meanwhile, in the testing system of the salaries of the market staffs, certain qualified adjustment should be given in order to make the amounts of the exploration of the new markets as the important standard of the testing of the results and the effects to the region managers and the marketers. It should be ruled clearly that the marketers who have explored the three new markets contiuously or have participated the test of performance evaluation will be given extra rewards, thus, it has , on a large scale, increased the enthusiam of the market staffs who explore the new markets. After more than half a year’s operation, the amounts of the efficient market has broken through for 100, the whole sales of the enterprises has increased by nearly 40% compared to that at the same term in the last year.

The Second Part, the Sales of the Balanced Point of the Profit And the Loss

Under the premise that the average profit rate is standard, if the enterprises want to fulfill the profits at the course of the marketing, at first, they should master the balancing point of the profit and the loss properly, in other words, control the break-even sales income of the profits and loss perfectly, which is the basis for the enterprises to achieve the profits. Accounting for this, it is demanded that the quick-consuming enterprises should make correct judgement and predication for the future marketing situation, establish the sales style that can be possibly achieved strictly, and control the devotion of the expense at the fundation of the current sales environment in order to make the enterprise operate at the point of the profits and the loss to go on the opitmistic development orbit. Without the lowest break-even target of the sales, the enterprises will be at the phase of being loss foreven under the condition that the expenses are delivered continuously. Therefore, if the quick-consuming enterprise is in dire to gain the target of the enterprise operation, atfirst, they should make sure the monthly sales is not lowerthan the deficing balanced point of the sales and control the increasing proportion of the expense which will be made to be lower than the increasing of the income and extend the scope of scales, only when these done, the enterprises can gain the profit to the largest.

The Third Part, the Products Integrating Gross Profit Rate

If an enterprise wants to get the profits, it is of necessity to increase or get the lowest level of the product intergrating gross profit rate which is the premise to the achievement of the profits. However, the actual quick-consuming enterprises always encounter with such a puzzle:”Why the sales revenue of the enterprise is continously increasing while the profits of the enterprises does not increase with the that of the sales, instead, sometimes, there is even some deficits “An important factor among thest is not to get a good master of the products integrating gross profit rate. The products integrating gross rate refers to the average level of all of products gross profit rate of the enterprise, in other words, it equals to the rate that (the whole sales of the enterprise-the whole cost )/the whole sale. In the operation activities, the most direct way to increase the products intergrating gross profit rate is to raise the product price. However, in the actual marketing operation, the price of the raw material is rising ceaselessly while the sales of the product is continously dropping, which results in the incessant downright of the products integrating gross profit rate. Listed below, there are three strategies to raise the products integrating gross profit rate of the fast-consuming goods enterprises:1, Measuring to take advantage of the raw material which has the same value but the lower price or take the way to lower the costs of the raw materials by the way of the comparation of the prices;2Researching and inventing the new products of high gross profit rate to institute the old ones3advancing the marketing strategies, popularizing the products of high gross profit rat powefully and increasing the sales rate of the comparatively higer gross profit rate products in order to achieve the aim of improvement of the products integrating gross profit rate of the enterprises.

The Fourth Part, The Product Sturcture Rate

The product sturcture rate is a products developing guideline of fast-consuming goods enterprises in the running process, also can be viewed as the origin of the core to achieve the enterprise profits. Only if with the advanced product structure, the enterprises can actually achieve”product is for the product and the market for the market”, and meanwhile gain fairly good profits. Therefore, integrating the product structure, increasing the sales rate of the profiting products and the developing products in the future is a common subject that the fast-consuming enterprises have to deal with. As for the side of the product guideline, for one thing, it should be measured to guide the product structures towards the the high gross profit rate and increase the property of the high product gross profit, such as the spare style dry instanst noodles, and the cup instant noodles products etc;For another thing, it should be planned to guide towards the advancement of competiton and cultivate the products with higher competition, for example, in the instant noodles business, creation of new-style products should be invented in order to improve the competition ability of differences of the products;meanwhile to guide towards the cultivation of the leading products, such as to make a firm basis for the long-term development of the market visa increasing more than one yuan sales property of the high gross rate products. In the actual marketing activities, the representatives are always only willing to promote the products that are popularized not the products that the enterprise demand of. Therefore, it could adopt the policies of returning-profits to the distributers, the promotion policy and the encouragement to the promoters to make the product structure inclined towards that of the high gross profit rate. Thus, it can reach the aim to integrate the product structure and raise the product integrating gross profit rate of the whole enterprise.

The Fifth Part, The Market Sale Rate of the Strategic Areas

Besides the promotion price, the price that takes a comparatively large part in the fast-consuming enterprises is the transportation price. With the rise of the oil price, the average transportaion cost of the enterprise is continously uprising to more than 5%. Concering the small-mediuml ones, there are only one production base account for the confinement of that in the company. If there is a much longer time for this, it is impossible to solve the surviving problem of the enterprise simply through the uprising of the transportation cost. Therefore, the fast-consuming goods enterprises should plan according to the marketing strategy and classify according to the devotion amounts of each region market to enterprise operation, the quick-consuming enterprises can be divided into these categories:First, it should concentrate on the advanced resouces to recreate the strategic popular market of the enterprise in the way of useing the experience of a selected spot to promote the work in the entire area, breaking through the key points and forming the regional popular market in the region market that is within the radius that is 500 km from the production base. This kind of market is the lifeline that decides whether the company can make profit. The perfection of the strategic base market of being itself and the increasing of the property of the stragetic region market in the whole sales of the company is the profiting direction of the future of the company.

Second is the region market that can offer the mariginal contribution to the operation of the company, though this kind of market can’t do devotion to the profit of the company directly, the firm cost of the enterprise is reducing along with the increasing of the sales through the increasing of the sales of this region, which can share the firm cost of the enterprise. So that it can increase the mariginal contribution to the company in order to make devotion to the enterprise to achieve the whole devotion. Third is the mariginal region market which has operated in too long distance, it will not do devotion to the mariginal contritution for the company, even reduce the enterpriseing profit to a large degree, in other words, it needs the profits of other market to make up the loss of this regional market. As for this kind of market, it should adopt the strategy to incease the development of this market , meanwhile, forbidding the delivery of the deficit products is an intelligent choice.

The Sixth Part, the Price Rate of the Operation

During the process of promotion, the price rate of operation is the ensurement for the enteprise to gain the profits. However, in the actual promotion activities, it is common to meet such kind of puzzle:”For what the products(with high gross profit rate) we have designed is deficit for a monthly promotion”Actually, it is caused by the increasing of the promotion expense. Though the increasing of the promotion reduces the sales income(the part which is bestowed) ostensibly, in fact, it reduces the gross profit rate of the products in another way, thus, the deficit is destined to happen. Meanwhile, the uprising of the raw materials results in the raising of the product sales price, but with the intensition of the market competion, if the enterprises want to promote the sales they have to increase the promotion degree of the products, there will always appears the phenomeneon of with value but without profit . Therefore, if the small-medium enterprises want to strenthen the management of the promotion price, they must establish the controlling target strictly, targeting the plan on the human price, promotion price, the transportation price and the advertising price to every promition region which can be spreaded to every market, even every salesman. The enterprise can keep normal profiting level on the basis of the following checking of every quarter of a year, every month, every ten days and every day.

The Seventh Part, the Launch And Producing Rate of Every Person

With the appearance of the labor law and the improment of the level of the consuming, they must result in the uprising of the cost of the enterprise human resouce, making the fast-consuming business which relys on the small profits opearion move towards more and more difficultly. Among these, the human resouce cost of the promoters is increasing on a large scale from the 3000 yuan to 4000 yuan of the price of the average expense of every person in the last year. For example, some small-medium enterprises consider that in order to develop, at the beginning, they must deal with the scope and the promotion amount at the begining, enlarge the enclosure activities without any intelligence, and extend the group by recuiting more employers.

As a result, the sale group is extending uprisingly, instead, the sales does not increase with step, the sales of every person does not reach 60, 000 per month, the human resource price is raised to more than 5% at one time. Though the enterprise promotion does increase, the profit is not as good as before. Therefore, the fast-consuming goods enterprises must carry on configuration of human resouce through the logic of operation according to the development of the itself. Generally speaking, the production sale of every person per month belongs to normal level when it is in 200. 000. When belowing this standard, it needs the careful consideration and research of the managers of the enterprise by adopting the improved strategies and plan to increase the rate of the sales launch rate of every person as soon as possible, so that it can provide the enterprises with ensurement in the aim of the profits.

The Eighth Part, the Efficiency Rate of the Manufacture Operation.

With the the protruding changing of the price of the raw material, the highly effective operation of the integrating products operation system of the quick-consuming enterprise is the ensurement of the profits of the enterprises. The premise of increasing the effects of the producing operation needs the operation of the JIT production(produce on time), achieve the no stock about the freight , and the zero defects in max. It needs to integrate to the supply chain of the enterprise and establish effective control to the information current, the logistics and the capital flow, from the beginning of the purchasement of the raw material to the products and the semi-products, then transport the products to the operating style of the end-consumers through the logistics. As for the integration of the supply chain, at first, it should strengthen the management of the purchasement, increasing the professional quality of the marketers, establishing the strategic partnerships with the suppliers and increasing the amount and the punctuality of the procurement. Then, at the manufacturing links, it should implement the large-scale and massive products, reduce the exchanging time of the operation, improve the operating skills of the staffs to form the producing management in large scale and process . Then, it should reform the system of the logistics distribution system pointedly, increase the punctuality and the high-efficiency of the distribution, and quicken the speed of the logistics and the turnover rate of the stocks. Through the integration of the offering chain, it can reduce the product operation cost of the enterprises maxiumly, increase the usage rate of the asset and the speed of the turnover, so that it can make the enterprise operate high-effectively and offer the ensurement for the achievement of the profit.

The job is perfect when is done diligently but bad when one always wastes time , At the key term of the great changing of the enterprises, the important duty of fast-consumig goods enterprises is not to consider how to do but what to do. Only if it could make out the the plan of the development of the enterprise and create the profiting style that is proper to the enterprises and search into the way of the development of the enteprising under the condition of rising the ability of profiting, so that it would ensure the achievement of the whole operation aim of the company.

Article Source: http://www.factly.com

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