Solution Of Conflict In Channels Of Small And Medium-sized Consumer Goods Manufacturers And Their Information Systems Research

There are two distribution channels for small-and-medium sized consumer goods manufacturers. One is to develop its directly controlled retail terminal that operated by itself, such as counters and franchised stores, the other is, using normal dealer channel to develop retail market as much as it can, especially at business beginning period. Because of the limited resources, small-and-medium sized consumer goods manufacturers often develop marketing by normal dealer channel at the very beginning. With the development of brand growth, more retail terminals will be directly controlled by themselves. In the process of entering the end user market, due to its limited brand strength and influence, manufactures can not fully control the whole channel especially for dealers, sometimes their marketing position even are pressed by other channel members, they often face very difficult situation while having competition with other channel members, because various factors can affect channel control, for example, the terminal information often seriously delayed, it is difficult to make marketing strategy correctly without a fast feedback mechanism, meanwhile, the difficult situation caused by bullwhip effect can be enlarged. Besides, Conflicts between manufacturers and dealers weaken the channel member's relationship. Firstly, this article introduce the background and the current situation of small-and-medium sized consumer manufacturer and its channel members, then it discuss the channel members relationship of their competition and cooperation as well as the reasons of their conflicts, it analyze the intention of information sharing of both sides and obstacles in this process. Then, from the point of view of the small-and-medium sized consumer goods manufacturers, by given an example, it shows a feasible and easy implemented information system of distribution channel and retail terminals can balance the channel members' relationship. Therefore, the relationship of competition and cooperation can be balanced, meanwhile, it breaks the information asymmetry and both sides enjoy the benefits of information sharing. It also provides an additional protection of the cooperation based on mutual trust mechanism. In addition, according to modern relationship between customers and manufacturers, the instant POS system based on GPRS makes it possible to quickly analyze sales and marketing data. By using data mining, we can find the inner regulation, and then we can make sales and marketing strategy more efficiently.