Introduction to the Monkey Elephant Rule

Monkey: Li Lan Company.

Situation:

One day, the sales manager of Li Lan Company invited the general manager and purchasing supervisor of customer M Company to attend a "clam eating party" at the seaside-we understand it as a "eating and drinking party"-there is no telephone here to minimize external interference; Frequent persuasion, trying to get them drunk. After looking for three companies, the purchasing director of M company asked, "Why didn't your Li Lan company give us a lower price?" The manager of Li Lan replied, "If we reduce the price, you will find a supplier lower than ours"-the implication is that we have room to reduce the price and have this desire, but we are afraid of being abandoned without guarantee. The general manager of M Company said, "No, we will never do such a thing!" " "In this cosmopolitan atmosphere of" two brothers are good ",Manager Li Lan said," If you can really guarantee to give us all the business in the next 1 year, we are willing to reduce the price by 20%. "

So, Company M made a promise and sealed the deal. Li Lan began to supply M Company at a low price, while another supplier, Westinghouse, was driven away! When Westinghouse heard the news, its sales manager angrily approached the sales manager in Li Lan: "You broke the price agreement between us! But you keep saying that you must resolutely abide by it! " -It turns out that small companies signed a "cartel" price agreement in order not to be suppressed by the huge Westinghouse company. In the past, Li Lan always had the strategy of "following". Now I feel my wings are hard and broken!

Prior to this, Li Lan made a full study: 1, cartel (meaning: joint monopoly) is illegal; 2. If Westinghouse comes to reduce the price and fight a price war with Li Lan, it will reduce the price of many other similar products, but these products are not supplied to M company, even products like Li Lan are not all supplied to M company-Westinghouse is a big thing with many products, and its decision can only be to swallow this fly, lose M company and find another customer. There is no better way. The monkey defeated the elephant. -at least it caused great setbacks to elephants. Elephant: Procter & Gamble

Monkey: harel Company.

Situation:

1967, harrell bought out the wholesale right of "Formula 409" cleaning spray, which has occupied 5% of the cleaning agent market and almost 50% of the cleaning spray market in the United States. Harrell Company and its boss, Mr. harrell, live a very comfortable life. One day that year, Wang Baojie, a household item, began to be jealous. It launched a cleaning spray called "novelty". Harrell's business has encountered a big problem-obviously, it is not a competitor of Procter & Gamble.

According to P&G's customary practice, when it creates, names, packages, tries to sell and promotes novel products, it needs to invest a lot of money, conduct psychological and numerical statistics through questionnaires, personal and group interviews, and spend a lot of market research expenses. When P&G conducted a trial sale of this product in Denver, it was serious and huge. At the same time, a large amount of money has been invested in advertising throughout the country. As a result, the trial sales team in Denver reported that it was "invincible and won a great victory". Therefore, P&G is full of confidence and vanity in a cheerful atmosphere.

Harrell was afraid-the information he got showed that he was about to be kicked out of the clean spray market, and he was going to collapse-and he had to calm down and set up a "conspiracy" against him. Harrell decided to take three steps: 1 to disturb the enemy's sight; 2. Strike the confidence of enemy executives; 3. Restrict the sales of enemy products in the market, thus withdrawing from this "novel" product project due to poor sales, and it is difficult to offset the large amount of money already invested.

First, when P&G was trying out in Denver, harrell withdrew his "Formula 409" from Denver. At that time, there were two forms to choose from: first, all their products were removed from the shelves; Second, stop advertising and promotion in Denver first, then stop supplying, and gradually make the store out of stock. Note: the scheme pays attention to the depth of the layer in the "calculation", which is generally set to the second layer, and the odds are above 80%. The above two forms of return are actually the first and second layers of harrell's first "conspiracy". Harrell chose the second floor, because if you choose the first floor, it is easy to be found by the enemy. He completed this "guerrilla war" quietly and quickly.

Harel succeeded. P&G is proud of only one trial sale. Then, implement the second step. When Procter & Gamble "Novelty" went public on a large scale and prepared to launch a nationwide "sweeping offensive", harrell dumped 409 formula milk powder at 50% of the original price. At this time, P&G executives thought that "harrell is no longer in the market", but they were caught off guard. At the same time, the third step was implemented, and harrell widely announced: "The preferential period is limited!" Results In a short period of time, almost all ordinary consumers of cleaning spray bought "Formula 409" cleaning spray that can be used for more than half a year. In other words, no matter how fresh P&G is, even at the selling price, consumers don't need to buy such goods for half a year!

Under the impact of confidence, the products were badly unsalable as soon as they went on the market. P&G began to think that novelty was a "wrong product" and had to cancel its production and sales plan during the discussion. Harrell won by a narrow margin. -small companies are like this. But this fairy monkey knows the psychology of big companies: self-confidence, spending a lot of development and sales expenses, and not paying close attention to the trends of small companies. It successfully avoided the footsteps of Procter & Gamble, the elephant, and then quickly hit the elephant's confidence and ate all the plants in this market. When the elephant sees that there is no food, even if it walks a long way, it can only leave here!