Security Industry Homogenization Product Marketing Strategy Analysis

The security industry is one of the industries that currently enjoys good capital. With the increasingly fierce competition in the market, products with relatively high added value have also appeared the predicament of thinning profits in other industries.

From the current point of view, the security industry is still a high-growth industry, and the market demand for products is also increasing. The characteristics of security industry products have already begun to transform without realizing it.

The transition from industrial products to civilian products has a narrow application area for early security products, which falls within the category of industrial products. At that time, the sales volume was limited, so the monomer profit was relatively high. With the increase of industry capital, market scale, and technology upgrading, security products have entered the homogenization stage, and the company's business direction has also begun to shift from product competition to price competition, service competition and brand competition.

Many people involved in the electronic product manufacturing industry are aware of this point: The manufacturing cost of electronic products has a lot to do with the scale of production. Enterprises with large production scales are in an absolute dominant position in terms of cost control. Security products began to be popularized by the application of professional fields (prisons, museums, etc.) to increase the demand for transportation, education, and medical products. Price competition began to dominate, and competition changed to information competition and production scale competition. Large-scale enterprises will occupy a dominant position in the future competition, and they may set a higher threshold for newcomers. Security products have changed from industrialization to civilian use, from small-scale production to large-scale production. On the one hand, the scale can reduce procurement costs, thereby reducing product prices, so that more people will consume this product and expand the scope of use of the product; on the other hand, it will also make competition more intense, thus eliminating a group of small companies. As we all know, due to the low threshold of the security industry, there have been numerous so-called manufacturers in recent years, and scale will certainly eliminate a group of small manufacturers. With the development of electronic products to a certain stage, it will be an indisputable fact that there will be a price war. Especially for products that have been widely used, prices are the main killer in the absence of strong brands.

The changing trend of product segmentation With the popularization and application of security products in various industries, a single product cannot meet the needs of some special users.

Product life cycle is generally divided into four stages: growth, maturity, and recession. How to find a new breakthrough in the homogenous competition? Obviously, the early extensive product line structure is not suitable for the current competition, and choosing the most competitive product as the company’s leading product has a place in the market and seems to be the only choice. Some companies began to choose their own superior products as the main business products to open up the market. The powerful companies began to take the road of product integration to provide system solutions, thus realizing the integration of resources at the manufacturer level, and then forming an effective industrial chain in the industry. The division of labor among the companies is more meticulous.

Is it possible to support a product with a system solution and a single product that has a single advantage? Absolutely. As mentioned earlier, the product scale and product segmentation, in fact, the industry has begun to use this method to start production, sales, after all, the product into the homogeneous competition stage, scale production is an effective weapon.

At present, foreign companies are entering the high-end market in a form of providing system solutions. This competition is based on projects. But after all, there are a limited number of large-scale projects around the country. The complexity of projects and the degree of product integration are relatively high. There are more manufacturers following up the projects. Therefore, the competition is fierce. It is difficult for domestic products to compete in the entire system with current strength. Although there are currently some domestic manufacturers can provide complete solutions for some subsystems. However, large projects generally require solutions that provide the entire security system (including alarm, monitoring, and access control system integration). At present, the application of domestic large-scale project system solutions to domestic products is still integrated by distributors or large-scale systems. Businesses organize several companies to complete, and foreign large-scale system solutions are integrated with global resources and appear as a company providing a full range of products. This makes it easier to establish a one-stop shopping relationship with Party A, which can reduce Party A and The inconvenience caused by the contact of domestic companies, domestic companies currently have a large gap with foreign companies in this regard. However, it is often these major projects that are most likely to have brand effects and profits, and have a favorable influence on the future development of the company. Therefore, domestic security companies are still in a weak position in competition with foreign companies.

The advantage of providing system solutions is that they can achieve product matching and can provide customers with one-stop service. The disadvantage is that the product line is rich, and it is not possible to use a single product to achieve large-scale production. Therefore, the relatively high cost, of course, not only the production cost, but also the inventory cost and labor costs will increase significantly. Domestic manufacturers need to integrate the resources of other manufacturers and downstream dealers. Completion of such integration has extremely high requirements for comprehensive indicators in all aspects such as management capabilities and sales capabilities of companies.

The integration of system solutions relies on the establishment of good strategic partnerships with downstream single-product suppliers, and single-product providers are beginning to transition from providers of complete products to providers of some key components. From the current point of view, it will take some time for domestic companies to really achieve such integration. Of course, the key to this period is the integration of brand operators and single product providers. Brand operators refer to manufacturers that promote their own brands through marketing. They can produce their own products and can entrust other companies to produce them. In the current competition, whoever implements the system plan earlier and provides the strategic cooperation relationship with the single product plan, it will be in a superior position in the homogenous competition.

The transformation from sales to marketing With fierce market competition, it has also begun to shift to marketing, that is, market factors play a role in the sales of industry products. This direction of development is an inevitable trend of the industry, but also marks the industry into a mature period. The essence of product homogenization competition is market competition.

Although the security industry is an emerging industry, its system is very large. Therefore, to break through in the homogenization competition, grasp the market information, and transform from sales to marketing is the only way for the company to win.

Security currently has many exhibitions and promotion meetings. Most of the sales and marketing departments are doing this part of the work. Because sales personnel have limited experience and energy in market planning and preparation, many of them are unsuccessful. Most companies spend money afterwards. Did not get very good results. On the contrary, the sales staff do full-time business, and this part of the work is planned by the market personnel, sales assistance, I believe that the effect will be better. The job of marketing is not only to add a market department. Its essence makes the company's brand promotion step by step, and integrates the company's internal resources to achieve optimal use of resources.

The development of market development towards refinement With the saturation of the primary market and the increase in demand in the secondary and tertiary markets, sales channels for security products have begun to sink, and some Shenzhen manufacturing and distribution companies have begun to expand into secondary and tertiary markets. Engineering firms also began to expand into the secondary and tertiary markets, and extensively grasped the practices of several large-scale engineering firms and have gradually been replaced. A more part of the manufacturers have begun to do business directly with the engineering companies. Traditional channel models, manufacturers-distributors-engineers-users, have begun to gradually change, even some manufacturers directly face the end-user, the chaos of channels seems to manufacturers can get a better profit, and its ultimate result It increases the costs, operating risks, and management difficulties of the manufacturer's operations.

For now, it is difficult for the industry to achieve refined marketing. The chaos of channels is a factor. More importantly, the industry's overall chaos and the industry's ability to manage companies are limited. After many products have gained popularity, distributors have become a bottleneck that affects the development of the company. Many of the companies are short-lived, and their main reason is that the control of the channels is unfavorable, which ultimately leads to channel member indecision.

A small company is profit-oriented. He does not think that his customer-level division has anything to do with product supply prices. They focus on profit, and they can do so as long as they have a profit. Large companies must strictly implement the pricing system and channel policies to ensure market balance. Many product manufacturers lose the support of channels. The most important issue is the chaos of the price system, which not only gives customers an opportunity but also gives business people an opportunity. In short, the future development of the industry is bound to rely on the power of the channel to complete refined marketing.

The asymmetry of information to the symmetry of information With the development of industry media, the information in the industry has gradually become open and transparent. The ultimate result is high price transparency and accelerated the industry to enter the era of meager profits. Now the most common situation in the industry is that a company has just launched a new product. Soon the market will see similar new products, and more end customers will get price information if they don’t know much about the product. The result can only be price competition.

Certainly, this information is rapidly and transparently partly due to the flow of people in the industry, too many small companies, and also has a lot to do with factors such as the open quotation of small company business personnel and the development of media in the security industry. In the security industry, price transparency is too high. The profits of dealers and contractors are too thin. Everyone is reluctant to do so.

New brand promotion is often faced with such a game problem. On the one hand, product popularity is not high, prices are not transparent and can get very good profits. On the other hand, we do not know the brand, and there will be more concerns when selecting products. It will take manufacturers to enter the market early. It is necessary to strictly formulate a suitable price system. So even if the terminal price is transparent, the profits of the channel can still be guaranteed, thus ensuring the sustainable development of the brand. Some of the new customers entering the industry can make the manufacturers get a better profit.

But the premise is that they can also get better profits. If the price is too transparent, then they can not get a better profit. In short, how to guarantee the dissemination of information flow within the effective scope during the homogenization of products is the basis for guaranteeing the development of the enterprise. Especially when the information dissemination is so rapid at present, enterprises must grasp the flow of information if they want to do well.

In short, product homogeneity requires companies to plan well at the strategic level, but also need to improve their own management.