Magnus Meier

“They can’t win a war more than they can quake,” said American politician and women’s rights activist Janet Rankin. This line of thinking is especially suitable for wholesalers who want to face the reality of growing markets. The turbulent year has allowed distributors to take advantage of any and all opportunities to maintain business continuity and continue to meet customer needs. In addition, it predicts that the initiated enterprise markets will offer at least 70% B2B transactions by 2023. Competition is still raging to maintain the size of their customers’ wallets.

A well-defined approach to markets will help distributors maintain B2B buyers at the center of their business model by providing a secure way to gain market share.

Angela Trocoli-Merkel-from the company

Angela Trocoli

So, where is the future threat to many of the warring markets?

2020 in Review – What Now?

The past 18 months have seen dramatic changes in business behavior. While many B2B buyers are forced to work from home, distributors have to rely heavily on digital sales channels to maintain business continuity, and competition for hard-to-reach products has escalated. In fact, between March and June 2020, the average annual order for B2B businesses increased by 79.5%. More surprisingly, it increased by 155% between October and December 2020.

During this time, many companies have taken advantage of the B2B market boom to take advantage of the opportunity to negotiate with third-party vendors to expand allocations and better manage non-stocks while reducing costs. Buyers want to buy many products and services digitally, easily and quickly. These distributors have been successful in building and launching B2B marketplaces that can support these growing customer demand. But there is a catch. While it is true that B2B markets are a great opportunity to increase revenue and customer retention, it may not produce the desired results if approached as one model.

Marketplace or Marketplace?

To understand the type of market model that is right for your organization, one has to think about the big picture beyond the scope of pure product range. Benchmark Capital’s Bill Gurley says: “Great markets are not easy to market; They exalt it. ”

Let’s face it – not all retailers can be, or should be, the next Amazon B2B marketplace. While some are designed to be great for the market, others may decide to become active participants in the current market, to focus solely on being a strong ecommerce player, or to maintain their position as a personalized, value-added service player in the marketplace. But each organization must decide what role it will play in the ecosystem.

Each ecommerce approach has its own risks and opportunities. For those looking to own a market, it is important to evaluate your organizational readiness from six levels.

  1. Open your eyes wide and enter. Analyze your current profitability model and how it handles it with peers and new marketers. Ask yourself: Our business model is up-to-date, and with which clean database do we have a built-in scheduling and tailored sales process?
  2. Consider the client’s life cycle:What are the special needs of our customers today, and how can they change tomorrow? Do you have the tools and resources to create a better customer experience that will make them come back for more? Understanding how we can add value to their customer life cycle: Do we have market-to-individual information?
  3. Consider the product life cycle:Are there the right tools on our website to provide the most relevant products and services? Do we have reporting systems on our ecommerce platform and what is going on and off the speed pole?
  4. Think of the business model again –Are wholesalers or marketers the only two options available to us? Do we need to rethink our marketing offerings to develop highly personalized use, results, or customer-based business models? How can these new offerings be received by existing or future customers?
  5. Understand the strength of your network –Do we have the right supplier and manufacturer connections to operate as an integrated network in the supply chain? Can we act as a group organization with a supply chain orchestra role?
  6. Instead of taking the order, move to market survey –Can we use data to understand customer and market behavior by gaining the ability to be proactive in what has not happened or is likely to happen? For example: Does a specific customer discount consumption and tail-cost loss in certain categories indicate a significant customer flight risk?

When working on these assumptions, it is important to remember that the marketplace for successful distributors should not be tied to the overall Amazon-compliant business model. Instead, ask how the platform model helps to increase the unique value you provide to customers through partnerships.

Marketplace Technical Skills can also serve as a platform for self-participation for customers, offering back-to-back orders to customer sales representatives, and offering a variety of benefits to group sales organizations or cooperatives through an integrated command platform. . A successful marketing strategy must be linked to your overall strategic goals and fully integrated into the strategic goals and realities of your business. For example, if your company is focusing on reducing carbon footprint, think about how you can hire vendors with similar goals or how your market can streamline the supply chain.

How can distributors succeed in a marketplace war

Properly covered, it will withstand a great deal of adverse conditions. By consolidating demand and improving the way buyers engage in their revenue, distributors can create value throughout their business network, thereby strengthening their position in the value chain and eliminating the risk of disintegration.

Success in market wars can take many forms and is based on the strategy your business describes. Inevitably, winners and losers will be able to understand and execute business and technical efficiency based on what will happen in the emerging market.

Magnus Meier, Vice President and Head of Global Software, SAP SE, Commercial Software Provider. A.D. After joining SAP in 1998, he has served in a number of international positions in Germany, including as a consultant and as a manager in the Japan Business Development Group. Connect with him Linkdin And Twitter.

Angela Trockley is a senior product manager at Miracle, a global marketing services company that manages B2B marketing initiatives. Before Mirakl, she was contacted by Trockley, a computer manufacturer, Helett Packard, and a pharmaceutical distributor, McKessen Corporation. Linkdin.