---
title: "10 Specific Implementation Methods and Control Points for Trade Promotion"
description: "The effectiveness of a company's promotion is determined by two main factors: accurate promotion (using the right promotion method at the right time and market environment) and thorough execution (detailed arrangement and actual implementation of each step). For new product launches, trade promotion is a powerful tool to encourage channel merchants to stock and display new products. This article details ten common trade promotion methods for new product launches, including dealer order conferences, price discounts, sales contests, wholesaler purchase bonuses, and more, along with their execution details and control points."
author: "魏庆老师"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2015-10-29"
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---

# 10 Specific Implementation Methods and Control Points for Trade Promotion

> The effectiveness of a company's promotion is determined by two main factors: accurate promotion (using the right promotion method at the right time and market environment) and thorough execution (detailed arrangement and actual implementation of each step). For new product launches, trade promotion is a powerful tool to encourage channel merchants to stock and display new products. This article details ten common trade promotion methods for new product launches, including dealer order conferences, price discounts, sales contests, wholesaler purchase bonuses, and more, along with their execution details and control points.

The effectiveness of a company's promotion is determined by two main factors:
· Accurate promotion: using the appropriate promotion method at the right time and market environment;
· Thorough execution: detailed arrangement and actual implementation of each step of a promotion activity.
For new product launches, channel stocking and distribution are the starting points of sales work. How to make channel merchants willing to stock and give up their limited counter space to display new products? Trade promotion is a powerful weapon.
The trade promotion methods that can be used for new product launches are:
1. Dealer New Product Order Conference
2. Dealer Price Discount Promotion
3. Dealer Sales Contest
4. Wholesaler Purchase Bonus
5. Wholesaler Order Conference
6. Wholesale Market Display Reward
7. Retail Store Stocking Reward
8. Scratch Card in Box
9. Box Recycling
10. Retail Store Display Reward
Below, we will discuss the execution details and control points of various common trade promotions for new product launches.
**(1) Dealer New Product Order Conference**
Brief description: Invite all dealers to attend the conference, introduce and demonstrate the new product, and offer preferential policies for on-site ordering to encourage dealers to actively order new products at the conference.
**Scope of application:**
When a new product is launched and needs to quickly enter the dealer network, create a comprehensive launch atmosphere, obtain a large number of orders, and quickly recover funds.
Due to the high cost of new product order conferences, they are generally used for strategic new product launches.
**Key points for writing the activity plan:**
1. General steps for implementing the order conference.
1) Determine the number of dealers attending.
Lock in the number of dealers based on the launch scope to prepare for subsequent room bookings, meal reservations, etc.
2) Determine the meeting agenda.
For example, the agenda may include: check-in time, meeting start, leader's speech, product introduction and demonstration, watching advertising videos, visiting new product displays, banquet, ordering, announcement of order results, selection of order champion, entertainment programs, meeting end time, hotel departure time, etc.
3) Determine the budget.
Main budget items: conference fees (including accommodation, banquet, venue rental, equipment rental, entertainment costs, etc.); dealer travel expenses; on-site decoration costs (booth setup, display board production, large-scale printing, product display rack production, flags, banners, inflatable balloon rental, etc.); media coverage costs (inviting TV, radio, newspaper personnel fees, recording and production costs, broadcast fees, publication fees, gifts, etc.); temporary personnel labor costs; other expenses.
4) Determine meeting preparation items.
Item preparation includes: printing meeting manuals and order forms, applying for samples, preparing product demonstration projectors, computers, advertising tapes, screens, preparing large quantities of DM, posters, string flags, product banners, standing signs, table signs, handbags, etc.
Work preparation includes: establishing an order conference working group, assembling a team, coordinating with business activities, notifying dealers to attend, contacting hotels to book rooms and venues, decorating the venue, making product demonstration projections and rehearsing, making new product booths, display racks, display boards, flags, banners, etc. Contact balloon service companies. Invite relevant media.
5) Hold the meeting. Follow the agenda of the day.
6) After the meeting, arrange to see off dealers, collect items from the venue, and leave the hotel.
Key execution points:
During the execution of the order conference, special attention should be paid to the following points:
1) Although the number of dealers attending has been preliminarily determined, some may be absent, and some may come uninvited. Therefore, when booking rooms, negotiate with the hotel in advance about possible last-minute cancellations or additional bookings to prevent insufficient or vacant rooms.
2) The on-site layout of the order conference should be: a large banner, hanging balloon banners, flags, etc. at the front of the hotel to create a conference atmosphere; a conference banner and direction signs at the main entrance of the hotel; factory personnel at the front desk to receive guests; standard product display, product description boards, and company introduction boards at the entrance of the venue; the venue hall should be fully decorated with posters, string flags, standing signs, and banners.
3) The meeting host is generally the sales manager/planning manager or product manager, and the main leaders of the company sit on the podium.
4) Dealers should have a meeting manual containing the schedule, agenda, committee leaders (including those responsible for meals, accommodation, ticket booking and pickup), reception phone numbers, hotel room arrangements, etc.
5) The order quantity is not necessarily the higher the better. Instruct sales representatives to check the order quantities of each dealer, compare with the dealer's historical sales, calculate monthly average sales, and see if the order quantity matches. If the order quantity is several times higher than the average sales, there may be false orders.
6) After the meeting, check the gift distribution list, compare with the meeting plan, calculate the actual distribution quantity, and verify inventory. If there is a large discrepancy, hold relevant personnel accountable.
7) Compare the conference fees of hotels of the same level, verify the usage quantities, such as room nights, menu items, drinks, display board production costs, and rental fees for balloons, booths, etc. If there is a large discrepancy, hold relevant personnel accountable.
**Common problems in execution:**
1. False orders. Some dealers order at the meeting but do not actually pick up the goods as ordered, or even only order without picking up.
**Solutions:**
After the order conference, sales representatives immediately compare the dealer's order quantity with the daily average sales. If a large discrepancy is found, remove the order and conduct a second order follow-up, and allow the dealer to revise the order quantity within the pickup deadline to ensure that each order is not exaggerated or empty.
2. Loss of prizes. During the order conference, there may be activities such as on-site selection of order champions, and a certain number of valuable gifts will be prepared. Due to the high mobility of people at the venue, busy staff, or even embezzlement, prizes may be lost.
Solutions:
a) Appoint a dedicated person to centrally manage meeting gifts. A separate room can be set up in the hotel for the conference group to store gifts.
b) Establish meeting minutes, including detailed results of award activities, the number of gifts distributed, winners, etc., and inventory the gifts to prevent loss.
3. Loss of conference fees. There are many expense items and large amounts, which can easily lead to false invoices, kickbacks, etc.
Solutions:
Repeatedly review the project arrangements and detailed budget of the conference plan, establish a mechanism for price inquiry for items and services, record details such as the number of rooms, days of use, meals, and other items one by one, and inventory remaining items to form a strict management posture and reduce cost loss.
**(2) Dealer Price Discount Promotion**
Brief description: Give direct price discounts or bonuses when dealers reach a certain level of purchase.
Note: Common dealer discounts are tiered rewards (e.g., 1000-1999 boxes, unit price 30 yuan/box; 2000 boxes and above, 28.5 yuan/box; below 1000 boxes, standard price 31.5 yuan/box). This policy can encourage dealers to purchase in large quantities, and short-term sales can increase rapidly. However, the disadvantage is that under this policy, large dealers purchase large quantities, so the base price is low—providing favorable conditions for large dealers to dump goods and cut prices. If not controlled well, it can disrupt prices and kill the market.
**Purpose:**
Stimulate dealers to purchase new products in large quantities, establish necessary channel inventory, and prepare for continuous promotion of products to downstream customers.
Scope and prerequisites:
1. When the new product's advantages are not obvious, and whether it will sell well is a question mark, plus stocking new products requires significant inventory and capital. Some dealers may adopt a wait-and-see attitude and hesitate. At this time, use price discount promotion to encourage them to make decisions early and increase order quantities;
2. During the new product launch stage, if competitors also launch new products or are conducting trade promotions, this product should increase discount intensity to compete for funds.
3. When dealers' funds are heavily occupied by other categories, especially seasonal products (e.g., before the Spring Festival is the peak season for alcohol sales, and launching new instant noodle products at this time will face competition for funds with alcohol).
**Operational points:**
1. Determine the scope of customers, period, and products for the promotion.
2. Set different levels, with different discount amounts for dealers of different sizes and shipment volumes.
3. Formulate the promotion plan, and after approval by the responsible department, the sales department notifies relevant customers.
4. Customers calculate their required quantity and pay according to the corresponding discount price in the plan; the finance department directly deducts the corresponding price and issues an invoice according to the plan.
5. The logistics department handles shipping according to the "shipping order" confirmed by the finance department.
**Control points:**
1. Price discounts can also be in the form of gifts instead of price or product bonuses (e.g., a bicycle for 500 boxes, a fax machine for 2000 boxes). This method can reduce the possibility of price cutting.
2. Price discount promotion is more suitable for agents or "exclusive dealers" because price discounts to wholesalers usually bring instability to wholesale prices, easily causing market price chaos and vicious competition of "price cutting."
3. Tiered price discounts can easily cause price cutting. Pay attention to time control, implement in stages, and supplement with price control measures.
a. The duration of each wave of price discount promotion should be as short as possible—for example, within 10 days. (Based on the time the customer completes a payment, and consider the factor that dealers cannot pay during holidays and bank holidays.)
b. Set the first stage tiers low. (e.g., 200 boxes, 500 boxes, 800 boxes reward 0.7 yuan/box, 0.9 yuan/box, 1.2 yuan/box). Low-tier reward policies can ensure small customers can participate, mobilize their enthusiasm, lower the entry threshold, quickly complete stocking by all dealers (especially small customers in cities), and help improve product distribution rate.
c. After the first stage is successfully executed and small customers generally stock with good payment, increase the tiers in the second stage. (e.g., 1000 boxes, 2000 boxes, 3000 boxes reward 1 yuan/box, 1.5 yuan/box, 1.8 yuan/box). This stage can mobilize the enthusiasm of large and medium customers to stock in large quantities and promote product diffusion to other regions.
d. Especially in the second stage with increased tiers, the company should strengthen monitoring of large customers' selling prices, introduce specified prices, and mark the region on the new product packaging. At the same time, collect new product operation deposits from dealers, and sales managers and representatives in various regions should strengthen market supervision. Once violations of price policy are found, punish by stopping supply and deducting rebates.
e. Tiered purchase rewards are to encourage dealers to stock in large quantities for downstream sales, but definitely not to encourage hoarding (excessive hoarding is the culprit of dumping). During the promotion period, combine each customer's past sales history to analyze their new product intake. If a customer's order quantity abnormally increases, immediately track whether there is dumping or price cutting behavior, and solve the problem before the bad consequences form.
f. Require sales representatives to strictly inspect dealer warehouses and shipment flows during this stage to prevent warehouse overflow or product dumping.
**(3) Dealer Sales Contest**
Brief description: Set a series of "challenging" sales targets, accompanied by "highly attractive" dealer reward plans, to encourage them to actively sell the company's products.
Note: The difference between sales contests and other prize-based trade promotions is:
1. The activity lasts a long time and is not a short-term promotion.
2. It is based on establishing long-term product operating habits for dealers.
3. Prizes are usually of high value (such as cars, laptops, overseas travel plans, etc.)
**Purpose:**
Improve the cooperation of channel operators in product sales, prompt them to actively carry out market development activities, and strive to establish dealer loyalty to the product.
**Scope and prerequisites:**
Mainly for exclusive dealers, it should meet the following conditions:
1. The company's direct sales capability is weak, sales share is small, and the promotion and subsequent development of new products mainly rely on dealers.
2. Enterprises adopting the "large dealer system" rely mainly on the dealer's business system for sales, and their own business capability is weak.
**Operational points:**
1. Determine the scope of customers, activity time, and products. Usually, sales contests have a long cycle, such as half a year or a year.
2. Develop a dealer sales reward plan. Such as "overseas travel plan," "training plan," "bonus plan," "sports car plan," etc.
3. A typical sales contest plan must include four contents: sales target, contest rules and requirements, assessment and reward plan. For example, the company can stipulate: In a certain year, the dealer who sells more than 100,000 boxes of Product A and ranks first in sales will be awarded the title of "Diamond Dealer" and a black "Passat" car; at the same time, must meet the contest rules such as "monthly sales not less than 5,000 boxes, no cross-region operation, no price competition, no selling competitor products," etc.
4. Notify customers in writing according to the contest rules, and sales personnel irregularly assess the operating conditions of dealers.
5. After the sales contest ends, calculate the sales achievement and actual market management performance of each participating dealer, and list the winners.
6. Prepare to hold the "Annual Outstanding Dealer Commendation Conference" and deliver prizes and bonuses on site.
**Control points:**
1. Compared with other trade promotions, sales contests are more based on long-term market development. Therefore, the activity period should not be too short; otherwise, the problems of "price discounts" and "product bonuses" mentioned above may appear.
2. Inspection and assessment of dealers are especially important. For example, in the above case, a dealer can completely "concentrate shipments" of 100,000 boxes in the last quarter of the year (to slowly digest inventory in the next year), while hardly selling Product A in the previous time. In this way, not only is the goal of "rapidly developing the market with the help of dealers" not achieved, but also a "Passat" is lost.
Suggestion: The manufacturer must strictly inspect and assess according to the contest rules from the first day of the sales contest, so that dealers have both "motivation" and "pressure," making them accustomed to the manufacturer's "game rules." Avoid letting things go during the promotion and then suddenly presenting a pile of evidence of "violations" at the year-end settlement and refusing to give rewards; this will seriously dampen customer enthusiasm.
3. Sales target setting should be combined with customer historical sales analysis, and should be purposeful—mainly to motivate which level of customers; should be challenging and feasible—the set target should be higher than the historical sales of these target customers, but achievable with effort!
For example: A company launches a new product (upgraded replacement of an old product). Historical sales analysis shows that county-level customers' average sales of the old product are about 50,000 boxes, and city-level customers' historical sales are about 200,000 boxes. OK! This new product sales contest is set at 65,000 boxes for a truck reward (encouraging county-level customers to increase from 50,000 to 65,000 boxes), and 280,000 boxes for a house reward (encouraging city-level customers to increase from 200,000 to 280,000 boxes).
4. Do not let the sales contest become a "club" for a few large sales customers. The reward plan should combine "points and areas," with both big and small prizes, so that smaller customers can also participate. For example, in addition to the "Best Sales Award," there can also be a "Best Growth Award" to commend dealers with outstanding performance in promoting rapid market growth.
**(4) Wholesaler Purchase Bonus**
Brief description: Mainly for small-batch purchase rewards for wholesalers. The bonus can be similar products or different products that wholesalers can use themselves or sell locally.
Note:
1. The biggest difference between purchase bonus and price discount is the target: dealers can have price discounts, but wholesalers can only have product bonuses or other goods.
2. The manufacturer cannot directly serve every wholesale household; the actual delivery of goods and supplementary gifts to wholesalers is done by dealers; therefore, the so-called "purchase bonus" is first given to dealers with the goods, and then dealers give the bonus to wholesalers according to their actual purchase quantity.
**Purpose:**
Mainly used to enhance wholesalers' willingness to accept goods, or to quickly transfer dealer inventory to wholesalers, improving the distribution rate of new products in the wholesale market.
**Scope and prerequisites:**
Wholesalers are the intermediate link between dealers and retailers. Tens of thousands of retailers cannot directly purchase from dealers. Therefore, if wholesalers have problems with new products, it will seriously hinder the flow of new products to the retail end.
Consider wholesaler purchase bonus in 5 situations:
1. Dealer inventory levels are high, capital pressure is large, and it has affected the operation of other products.
2. Wholesalers lack confidence in new products and do not actively recommend them to retailers.
3. Wholesalers' new product inventory levels are too low to form a "pile of boxes" display.
4. The wholesale-retail price difference is small, and willingness to operate is not high.
5. New products have a relatively high "value perception," and wholesale prices (retail store receiving price) are generally high, affecting retail stores' willingness to stock, or causing market retail prices to rise.
**Operational points:**
1. Determine the scope of customers, activity time, and products.
2. Determine the intensity of the promotion and choose suitable promotional gifts (e.g., during the activity, those who purchase 20 boxes will receive a bucket of 5L "Golden Dragon Fish" cooking oil).
3. Formulate the promotion plan, and after approval by the responsible department, the sales department notifies relevant customers.
4. The manufacturer first ships the gifts to the dealer's warehouse with the goods.
5. During the activity, when wholesalers pick up goods from the dealer, they directly receive the corresponding quantity of gifts according to the promotion plan.
**Control points:**
1. The success of the purchase bonus activity is closely related to the choice of gifts. The principles for choosing gifts for wholesale market bosses are:
a. Low price, high image. Low price means the purchase price of the gift cannot exceed the budget; high image means the gift should have a sense of value.
For example: buy 100 boxes of products and get a bicycle; buy 200 boxes and get a 4-inch small black-and-white TV—bicycles and small black-and-white TVs give a feeling of large items with high value. In fact, the price of large quantities is very low, about 70 yuan for a bicycle and about 100 yuan for a small TV.
b. Gifts should be practical or can be converted into cash. Bicycles and small TVs can be used by dealers; while rewards like washing powder and towels can be sold, so they are more attractive.
2. Gift accounting and delivery must be timely. In the case of cumulative purchase rewards in the wholesale market, companies or dealers often delay giving gifts to wholesalers due to gift inventory and internal audit procedures. However, if this problem is not solved for a long time, it will seriously damage wholesalers' confidence in the products they operate.
3. Purchase bonus is a typical short-term promotion; avoid long-term use; otherwise, it will be difficult to remove later!
4. Be especially careful when choosing product bonuses (e.g., 50+1). Avoid using product bonuses immediately after a new product launch. Otherwise, the channel can easily convert the bonus products into unit price, making prices unstable from the start; moreover, if you want to remove the bonus later for normal shipment, you will face great market resistance. It is recommended to conduct product bonuses after the first wave of display activities.
5. Strictly prevent wholesalers from "advance purchasing." In many cases, the "hot sales" of new products immediately after launch is often a "false impression" caused by strong promotional activities. They will stock up during promotions and stop purchasing when there is no promotion, only digesting existing inventory. In this case, the manufacturer gains no benefit at all; it is just borrowing from the future, and total sales do not increase. It is recommended that manufacturers carefully decide whether purchase bonus is really needed after comparing the aforementioned "scope and prerequisites."
6. Resource leakage is also often a serious problem. The so-called "resources not flowing down" means that dealers keep the gifts that should be given to wholesalers for themselves and do not replenish goods or distribute gifts to wholesalers as stipulated.
**Suggested solutions:**
1. Sales personnel should usually master the phone numbers of dealers' downstream wholesale households and randomly check the implementation of second-tier rewards.
2. Before the activity, the company sends sales personnel to distribute promotional notices to second-tier households, with the company phone number noted on the notice. Wholesale households will take the notice to the dealer to purchase goods and receive gifts. Once the dealer withholds gifts, the so-called "consultation phone" on the notice becomes a "complaint phone."
**(5) Wholesaler Order Conference**
Brief description: Generally organized by the company and implemented at dealer locations, it is a short-term ordering activity for wholesale households. By setting different pickup quantities from 20 to 200 boxes, prizes of varying sizes are given to attract wholesalers to actively pick up goods. The purpose is to help dealers digest inventory after large quantities of goods are picked up, speed up inventory turnover, and thus accelerate the distribution of new products in the wholesale channel.
**Scope of application:**
In the early stage of new product launch, wholesale has already sold some goods, but due to low profit attractiveness, wholesalers only purchase new products during distribution, and the pickup quantity is small; dealers have large purchase quantities, causing inventory pressure and anxiety.
In this context, holding a wholesale order conference can, on one hand, use the hot sales atmosphere to stimulate wholesalers to actively pick up goods and speed up new product sales; on the other hand, help dealers sell goods, reduce inventory pressure, and enhance dealer confidence.
**Key points for writing the activity plan:**
1) List the activity cities and duration. For example: May 20 to May 22. City: Nanning.
2) Set pickup reward tiers: e.g., 20 boxes reward a backpack, 50 boxes reward a watch, 100 boxes reward an electric kettle, 150 boxes reward a blanket, 200 boxes and above reward a small TV.
3) Write activity description copy, budget the number of DMs: print activity notice DMs, distribute to all wholesale households in the dealer's area, and explain the activity method, benefits, participation time, etc. in detail.
4) Design on-site layout requirements: including slogans, POP, display boards, prize displays, activity staff wearing promotional clothing, etc.
5) Determine the on-site work process: on-site layout, prizes in place, explain activity method, display prizes, distribute prizes, register shipment status.
6) List the key work points for business: e.g., before and after the activity, inventory the dealer's new product stock, one to calculate the activity effect, and two to control the activity process; end the activity when the new product inventory is almost digested.
Common problems in the execution of wholesale order conferences:
1) Unreasonable prize level setting.
2) Insufficient activity notification.
3) Poor on-site layout of the order conference.
4) Loss of prizes.
**Key execution points:**
1) When formulating the order conference plan, fully consider the pickup capacity and pickup limit of wholesalers, so that wholesale households can actively pick up goods without causing overstocking.
2) Distribute DMs according to the counted number of wholesale households, and register and check the distribution situation to ensure the notification is done well.
3) The order conference site should be properly arranged. Hang large banners, post product POP, make large display boards of the activity reward method, display prizes, and activity staff wear promotional clothing. Activity organizers should carefully record the number of participating wholesale households, pickup quantities, and prize distribution, and through post-activity summaries, inventory prizes to prevent loss.
4) The order conference time is generally 1-3 days (depending on wholesale pickup and dealer new product shipment). If the goal of wholesale pickup and inventory clearance is achieved, it can be declared over.
5) During wholesale pickup, prevent individual customers from hoarding, multiple pickups, or one-time large pickups, to avoid later market price cutting.
**(6) Wholesale Market Display Reward**
Brief description: Select wholesale households with stacking space and good locations to participate. They must stack a certain quantity of products or empty boxes according to company requirements and maintain for 1-2 months. After irregular inspections by company personnel, qualified participants will receive certain rewards.
**Purpose:**
Create a "overwhelming" momentum for the new product launch, increase dealer confidence, and increase the possibility of retailers choosing the new product.
Scope and prerequisites:
Consider carrying out display rewards in the following three types of wholesale markets:
1. Wholesale markets that are the main purchasing places for retailers—affecting retailer purchases.
2. Wholesale markets where consumers also have a relatively high purchase rate—affecting consumer purchases.
3. Radiating wholesale markets—communicating launch information to customers in other regions.
**Key points for writing the plan:**
A typical display reward plan is as follows:
1) List the participating cities and the planned number of wholesale stalls in each city. For example: Foshan 50, Dongguan 30.
2) Set a reasonable stacking quantity. Since most wholesale households have limited space already filled with various products, even if they participate, they can only provide limited space for stacking. Generally, it is appropriate to design 10-15 boxes to ensure customers can implement it. For markets and customers with conditions, it can be expanded to 20-30 boxes.
3) List the display reward policy. For example, it can be stipulated: Anyone who displays 20 boxes of Master Kong "Fresh Daily C" in a conspicuous place at the customer's location and maintains it for one month will be rewarded with a box of Master Kong "Iced Tea" (the specific display standard for each store should be more detailed and reflected in the display agreement).
4) List the display standards in detail, preferably with illustrations.
5) Attachments to the promotion plan include:
a. Notification letter (in the form of a flyer to inform wholesale market customers of the activity content).
b. Display agreement: indicate the activity requirements, the display quantity requirement for each store should be standard and fixed, but the display location and POP posting location are blank lines, to be filled in when signing the agreement based on the actual situation of each store.
c. Display checklist, requiring sales representatives to check participating wholesale households weekly and record on the spot. This serves as the basis for reimbursement and post-event verification.
**Control points:**
1. Usually, the display reward cycle is one month, to achieve the purpose of "creating momentum" for the new product.
2. The supervisor should review the selection of display customers. Customers do not have to be large, but their geographical location must have display effect (such as the entrance of the wholesale market, crossroads).
3. Display rewards should be combined with purchase rewards and return promises: purchase rewards ensure that customers actually have products in the warehouse to sell (avoid the ridiculous phenomenon of stacking boxes at the door but having no goods to sell when someone wants to buy). To prevent wholesale households from not daring to stock new products, a return promise can be made.
For example: As long as you stock 30 boxes of new products and display 20 empty boxes at the door every day as required, regardless of sales, you will be rewarded with 3 boxes at the end of the month. If the new product does not sell, you can return it for a full refund at the end of the month, and the prize will still be given (Note: Generally, if the wholesale market display is done well, it is rare that products do not sell at all and large quantities are returned).
4. Gift selection. It is recommended to use "mature products" and avoid new products and slow-moving items; otherwise, the activity effect will be seriously affected.
5. Sign a stacking agreement. Write clearly the customer's name, business name, market name, door number, contact phone, stacking quantity, start and end time. The manager takes back the original, and the activity organizer keeps a copy for records. After the activity ends, check the rewarded customers and make phone spot checks to prevent over-reporting of prizes.
6. The display agreement should specify the specific display details for each store (e.g., 20 boxes stacked, placed 1 meter to the right of the main entrance, with no obstructions in front), preferably with photos as inspection standards.
7. Do not really let customers stack 20 boxes of goods; no one is willing to move boxes in and out every day. It is best to take 20 empty boxes and tape them together for easy display.
8. Gifts must be distributed in the same month; otherwise, "losing trust with the people" will make future activities difficult to carry out.
9. Remember: Be sure to grasp the principle of "strict entry, lenient exit."
· Strict display inspection: Do not announce inspection routes. When headquarters goes to the market for inspection, do not reveal the itinerary in advance. When visiting, hold the stacking agreement, directly visit the stacking customers, and make inspection records. Compare with the activity personnel's inspection records to form an inspection posture and make the inspection effective.
· Lenient display reward distribution: The purpose of display rewards is to stimulate wholesalers to display more new products. As long as they basically meet the display standards and overall achieve the display effect, rewards should be given. Do not withhold rewards for one or two boxes not displayed; in fact, sometimes wholesalers may display far more than the specified quantity. If you neglect visiting, coaching, and inspecting customers during the activity and then refuse to give gifts at the end on the grounds of "not meeting display requirements," it will seriously dampen wholesalers' enthusiasm and may create an enemy, turning a good thing into a bad thing.
**(7) Retail Store Stocking Reward**
Brief description: Refers to extra gifts or benefits given to encourage retailers to stock goods.
**Purpose:**
Promote the smooth entry of new products into retail terminals, quickly improve the distribution rate of new products, and let consumers see and buy them as soon as possible.
**Scope and prerequisites:**
The improvement of retail store distribution rate is the key to the success of new product launch. Without it, there is no consumer purchase. Consider stocking rewards in the following situations:
1. Due to low retail profit, it is expected that retail stores' willingness to stock is not high, so give rewards directly during new product distribution.
2. The product has been on the market for a period, but the distribution rate remains at a low level below 30%.
3. Competitor brands are launching similar new products in the same period, so it is necessary to take preemptive action to occupy retail store inventory.
**Operational points:**
1. Determine the cities for distribution, the products to be distributed, and the execution time. Usually, stocking rewards are carried out simultaneously with new product distribution.
2. Determine the reward method. For example: buy one box, get one bag.
3. Sales personnel or dealer business personnel should immediately honor the reward during new product distribution.
**4. Control points:**
1. Not all retail stores need "rewards" during new product distribution. Remember that stocking rewards are only auxiliary measures taken to quickly improve the distribution rate when new products encounter great resistance in entering stores.
2. Prevent loss of gift resources.
Common gift losses during retail store distribution include:
a. Business personnel and dealers collude to report false distribution orders, falsely report, and intercept gifts;
b. During distribution, some wholesale households or large retail stores take the opportunity to hoard goods (e.g., buy 1 box, get 2 bags; OK! I buy 100 boxes, give me 200 bags);
c. Retail store business personnel ignore the company's regulations that "stocking rewards are only set to improve distribution rate, specifically for rewarding retail stores that have not received new products," and use this policy to boost sales;
d. Repeated rewards: for retail stores that have already stocked two or three times, use the reward policy again, wasting reward resources;
e. "Large orders split into small orders": business personnel intentionally use this reward policy to ship large quantities to wholesalers to boost sales, then split the orders into dozens or hundreds of "fake retail stores."
**Control methods:**
· Clarify the upper limit of retail store stocking rewards, generally no more than two boxes. (e.g., buy one box, get one bag, upper limit 2 boxes). At that time, whether you are a retail-wholesale or a retail store, you can receive goods, but the part exceeding 2 boxes does not enjoy the reward (to avoid large customers hoarding).
· In the same area, distribute at most twice consecutively (to avoid repeated rewards).
· Sales representatives establish a distribution registration form during distribution, and supervisors spot-check the next day, severely punishing violators. At the same time, company leaders re-check during market inspections (to avoid large orders split into small orders or false orders).
3. Business supervisors must establish a "stocking reward control table" to grasp the execution progress at any time. As shown below:
**(8) Scratch Card in Box**
Brief description: Place a scratch card inside the product packaging box. Retail stores get the scratch card when selling the product, and the scratch card lottery method is used to promote retail store sales. The purpose is to design different prizes, especially big prizes, to attract retail stores to stock and sell, increasing the push for new products in retail stores.
**Scope of application:**
After the new product launch, the distribution rate has met requirements. But profit is not attractive to retail stores, sales enthusiasm is not high, forming a situation where new products do not sell well in the retail channel. At the same time, the distribution rate fluctuates to a certain extent.
In this context, carrying out scratch cards in boxes can enhance retail stores' enthusiasm for picking up goods, increase sales enthusiasm, speed up new product sales, strengthen the sales push in the retail channel, and consolidate the retail store distribution rate.
**Key points for writing the activity plan:**
1) List the activity cities, the number of cards placed in each city, and the duration. The activity time is generally 1-3 months. For example: March 5 to June 5. City: Shijiazhuang, 5000 cards; Taiyuan, 3000 cards.
2) Design the prize winning rate, reward levels, and prizes, print scratch cards and place one in each box.
3) Design DM and POP, list the quantities used. Print activity DM and POP, distribute and post in retail stores to fully inform the activity information.
4) Set up a prize redemption plan. Big prizes must be claimed at the company with a personal ID card; small prizes can be redeemed at wholesale households.
5) Determine the placement time. New products with scratch cards enter the market, start redemption and collect winning scratch cards until the activity ends.
**Common problems in scratch card activities:**
1) Wholesale households open boxes and take out scratch cards, intercepting them so they do not reach retail store owners.
2) Loss of prizes.
3) Wholesale redemption points do not redeem in time.
4) Retail stores holding cards do not redeem in time.
**Key execution points:**
1) Activity notification stickers: post two on each box. Inform retail stores not to accept damaged or opened products to prevent wholesalers from opening boxes and taking cards.
2) Strictly register the ID card, phone, and other details of big prize winners. After redemption, keep the original cards for small and medium prizes, and reconcile with inventory prizes to prevent unauthorized taking of prizes.
3) Ensure the supply of small and medium prizes at wholesale points. To improve the enthusiasm of wholesale households for assistance, appropriately give some small gifts or pay (redemption activity) labor fees of 50 to 100 yuan to stimulate wholesale households to do a good job in redemption.
4) Print activity DM and POP, clearly marking the start and end time of the activity. At the same time, require touring sales representatives to remind the start and end time of the scratch card activity during visits and remind small store owners to redeem as soon as possible.
**(9) Box Recycling**
Brief description: Box recycling is a very effective promotion method for retail stores. By recycling the boxes of new products in the hands of retail stores at a cash price of 1-2 yuan, it promotes retail stores to actively sell new products. The purpose is to give profits to retail stores, allowing them to get more profit.
**Scope of application:**
After the new product launch, the first distribution transaction rate is low, and the distribution rate does not meet requirements. Retail store profit is not attractive, sales enthusiasm is not high, forming a situation where new products do not sell well in the retail channel.
In this context, carrying out box recycling can increase retail store sales profit, thereby increasing enthusiasm for picking up goods, speeding up new product sales, and strengthening the sales push in the retail channel.
**Key points for writing the activity plan:**
1) List the activity cities and duration. The activity time is generally 1 month. For example: May 5 to June 5. City: Shijiazhuang.
2) Set the total number of participating retail stores and the redemption method. Based on the total number of retail stores, the distribution rate requirements for new product launch, the achievement of distribution rate, and the average monthly sales per store, set the overall scale of this activity. Reasonably set box redemption points to facilitate retail store owners' redemption.
3) Design DM copy and sticker content. Print activity notice DM, POP, and stickers. Post 2 activity stickers on each box, and at the same time, distribute DM to retail stores that have not been stocked, post POP, and fully inform the redemption activity. Set redemption points at wholesale households, post POP, and if conditions permit, hang activity banners to explain the activity method and start and end time.
4) Explain the redemption method. Retail stores redeem at wholesalers, wholesalers redeem at dealers, and dealers redeem cash at the manufacturer with relevant personnel counting on site. Among these, wholesalers and dealers should have a "handling fee."
For example: retail stores redeem at wholesalers for 1 yuan/piece, wholesalers redeem at dealers for 1.1 yuan/piece, and dealers redeem at the manufacturer for 1.2 yuan/piece.
**Problems prone to occur in box recycling activities:**
1) Executors may cheat cash by repeatedly counting boxes.
2) Wholesale households at redemption points may suffer losses due to forgetting to exchange cash with the company in time.
3) Activity redemption personnel embezzle redemption cash.
4) Boxes are too large, not easy to count, store, and redeem.
**Key execution points:**
The execution of box recycling activities should pay attention to the following details:
1) Specify cutting the unique identification part of the box for easy counting, redemption, and recycling operations.
2) Strict cash management. After the activity executor receives cash, they must hand in the corresponding number of boxes and make detailed registration.
3) Company personnel specially count the recycled boxes and recheck whether there are "counterfeit" boxes not within the scope of the activity (boxes of other items or this item but without stickers).
4) Record the detailed information of each redemption point wholesale household, including business name, door number, contact person, contact phone, and redemption quantity, and communicate specific numbers at any time through phone or visits to verify whether cash is used normally.
5) Sales representatives understand the implementation of the redemption activity in time and urge wholesale households at redemption points to redeem cash in time.
6) Before the activity ends, sales representatives should visit wholesale households and urge them: "The activity is about to expire, hurry up and hand in the boxes in your hands."
**(10) Retail Store Display Reward**
Brief description: Select retail stores in concentrated areas of busy streets, require store owners to display according to company standards (e.g., tray display of products, special small shelf display). Retail store sales representatives check weekly, and if qualified, give a small gift on the spot. The activity generally lasts about one month.
**Note:**
The difference between retail store display rewards and "wholesale market display" rewards and "model store plan":
Wholesale market display rewards and model store plans are to play a demonstration role of driving the whole from the point, so the requirements for participating display stores and model stores are higher (stacking boxes, special shelves, POP, cloth flags), and the number of selected stores is small, and the reward amount is also large. Retail store display rewards are to improve the distribution rate on a large scale, maintain the distribution rate during the activity period, and improve the display effect to create a trend for new products. Therefore, the number of selected stores is large, and the requirements are lower (only small special shelf display or occupying the best display surface in the store), and the reward amount is also small (e.g., weekly inspection qualified, reward a pack of instant noodles).
**Purpose:**
Can further reduce the difficulty of distribution and promote store owners to actively stock during the display period, ensure the distribution rate does not decline, and increase the display effect of retail stores.
**Scope of application:**
1. New products have no obvious advantages in advertising and price, and distribution is difficult.
2. New products have been launched unsuccessfully and are being re-launched. The typical phenomenon is that when distribution promotion is done, the distribution rate rises, and when the activity stops, the distribution rate declines again (retail store owners are unwilling to re-stock after selling the products received during distribution).
**Key points for writing the activity plan:**
1. List the participating cities and the planned number of retail stores in each city. For example: Foshan 600, Dongguan 300.
2. List the distribution reward policy and display reward policy. For example: buy 3 bottles, get 1 bottle; meet display standards, reward 1 bottle per week.
3. List the display standards in detail, preferably with illustrations.
4. Attachments to the promotion plan include:
a. Retail store notification letter (in the form of a flyer to inform retail stores of the activity content).
b. Retail store display checklist, requiring sales representatives to check participating retail stores weekly and record on the spot. Record prize distribution and have the store owner sign, as the basis for reimbursement and post-event verification.
**Control points:**
1. This activity involves many stores and is easy to get out of control, so it is only suitable for cities where the company, office, or headquarters is located. It cannot be handed over to dealers for execution in markets without company resident personnel.
2. The selection of stores for retail store display rewards should be concentrated (if you do it, do the whole street).
3. The number of stores selected for retail store display rewards should be at least 20% of the total number of stores in the city, and the activity period should be more than one month.
4. Prize redemption should be executed weekly (the reward is already small; if you wait until the end of the month, store owners will lose interest).
5. The company can fund a small iron basket welded to the bicycle rack of retail store sales representatives to hold prizes—convenient for sales representatives to distribute prizes weekly.
6. Randomly spot-check and recheck the authenticity of sales representatives' reports.
7. The display standards for retail store display rewards should be simple (e.g., ensure the second shelf of the shelf has 8 packs of products horizontally) to reduce the difficulty of participation for retail stores.
8. The improvement of the wholesale market distribution rate should be carried out simultaneously. Retail store owners will become interested in operating the new product by participating in retail store display rewards, but once they go to the wholesale market and cannot get goods, they will gradually forget about it.
**-END-**
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