In baijiu marketing, products seem to sell only when promoted. If a product is not promoted, distributors, channels, or terminals will not proactively stock up; if not promoted, channels or terminals will not push your product; if not promoted, channel and terminal loyalty will decline; if not promoted, market share will quickly be seized by competitors. These phenomena force manufacturers to invest heavily in sales promotions to expand market share and grow sales.
Below are 32 channel promotion tactics seen in the market, shared for reference.
1. Tiered Purchase Rewards This usually adopts a tiered purchase system. Some manufacturers offer, for example, a one-time purchase of 1,000 cases, gift 100 cases of a best-selling product; at 2,000 cases, gift 300 cases; at 3,000 cases, gift 500 cases, etc. To control quotas, an upper limit is set for purchases.
Drawbacks: Because the product is being promoted and best-selling products are included as gifts, customers are willing to stock up. However, if the market promotion fails, it will cause a large backlog of customer inventory. After the gifts are converted to profit, the backlogged products may be sold at low prices, leading to a chaotic price system. Excessive inventory also occupies warehouse space, making it difficult to stock other items.
Prerequisites for successful operation: Strong control over the terminal market, allocating quotas based on the number of outlets, and ensuring rapid and forceful distribution while customers stock up and block competitors, achieving a healthy inventory cycle.
Some manufacturers adopt a method of first delivering goods and then rewarding, which also yields good results. Others offer a percentage of the purchase amount as a reward for one-time purchases, but this requires strict control over the distributor's resale price to prevent terminal price chaos.
2. Price Point Combination Rewards Based on the competitive situation in the regional price bands and the brand's main push price band requirements, a price combination is formed.
For example, in a certain market, the mainstream consumer price points for baijiu are mainly concentrated at 30 yuan, 60 yuan, and 80 yuan. The company formulates its channel promotion strategy based on the brand's price positioning in consumers' minds. If the brand is positioned as mid-to-low-end but the company wants to upgrade the price band and brand without excessively affecting sales, it may adopt a strategy where the 30 yuan item accounts for about 50% of distribution, 60 yuan about 30%, and 80 yuan 20%. The 30 yuan item does not bring much gross profit but generates sales and combats competitors; the 60 yuan and 80 yuan products are the real promotion focus.
To reasonably adjust the price ratio, manufacturers allocate quotas in the promotion mix, requiring customers to promote according to the price ratio. To some extent, this method ensures a reasonable proportion of item promotion in the market.
3. Channel Combination Promotions To ensure effective execution at all channel levels and better stimulate interests at each level, manufacturers often adopt a tiered channel combination promotion strategy. In this strategy, it is essential to ensure that terminal interests are greater than distributor interests, and distributor interests are greater than dealer interests; otherwise, channel promotion enthusiasm will decrease.
For example, a distillery, to boost sales of an old product, adopted the following measures: an additional 2% annual rebate for the general distributor, an additional 3% monthly rebate for sub-distributors, purchase rewards for terminal displays, and a consumer promotion of "exchange 3 empty bottles for 1 bottle"—achieving good results.
4. Cumulative Sales Rewards To ensure the success of product launch and maintain strong sales momentum, manufacturers set tiered reward systems for customers based on cumulative sales. For example, cumulative sales of 100,000 to 300,000 yuan earn a 3% reward, credited directly to the next purchase or given as products of equal value; those not reaching the threshold do not enjoy the reward. Similarly, 300,000 to 500,000 yuan earns 4%; 500,000 to 800,000 yuan earns 5%; above 800,000 yuan earns 7%.
This approach is mostly limited to regional small factories. The most significant effect is direct cash rewards. Customers, eager to win cash rewards, engage in aggressive distribution and stockpiling, to some extent seizing terminals and putting pressure on competitors. This method is more suitable for markets where manufacturers use first-tier distributors for distribution; for manufacturer-direct markets, the effect is not ideal, as the focus is on terminals.
5. Buy-One-Get-One on Same Product This is a basic promotional method, such as buy 10 get 1 free, buy 8 get 1 free, or buy 5 get 1 free. Generally, the weaker the product's sell-through, the stronger the promotion.
Same-product promotions are typically used by manufacturers to push non-best-selling but key products, increasing terminal stock. In practice, terminal purchase volume often becomes the main KPI for product promotion.
This method is simple and prone to discounting. If terminal sell-through is slow, low-price dumping may occur, disrupting the price system and shortening the product lifecycle.
Prerequisites: Strong promotional support to ensure terminal distribution speed, strict control over terminals, and limiting the number of sets per outlet according to the promotion list to avoid killing the product.
6. Product Cross-Promotion Product cross-promotion usually involves bundling a best-selling product with a slow-moving product, or a best-selling product with a new product. The main purpose is to ensure that while the best-selling product sells well, the slow-moving or new product is more easily accepted by terminal outlets, reducing the difficulty of distribution and encouraging terminals to promote the new or slow-moving product.
This is generally applicable when the best-selling product has a high consumer self-specification rate and strong brand influence locally; otherwise, terminals will not accept slow-moving or new products, increasing their inventory or sales pressure.
7. Product Portfolio Promotions Product portfolio promotions combine market demand with corporate objectives.
For example, in a market where mainstream consumer price points are 30, 60, and 80 yuan, the company's 30 yuan product is relatively strong with high demand, but the company wants to upgrade the price band and brand without excessively affecting sales. It adopts a strategy where the 30 yuan item accounts for about 50% of distribution, 60 yuan about 30%, and 80 yuan 20%. The 30 yuan item does not bring much gross profit but generates sales and combats competitors; the 60 yuan and 80 yuan products are the real promotion focus.
8. Physical Gifts Frequent product promotions can make terminals feel bored. Manufacturers, while ensuring channel promotion space, appropriately change the promotion method. For example, buy 2 cases of new product and get an air-conditioning quilt; or one-time purchase of 10 cases gets a mobile phone; or cumulative sales reaching a certain amount gets a tricycle. In practice, gifts like rice and cooking oil, which are close to daily life and easy to liquidate, are relatively more acceptable to terminals and achieve good results. However, terminals may also factor the gift into price profits, leading to lower product prices.
9. Cash Rebates Cash rebates are the most attractive promotion for terminals. For example, a one-time purchase of 5 cases may directly deduct 100 yuan from the payment. This promotion should not be used on single-item combinations, as it may cause some terminals to lower retail prices, affecting further sales.
Promotions aim to maximize sales and ultimately maximize profits. This method should only be used as an immediate competitive tool, not frequently, to avoid terminals becoming bored with other promotions—since nothing is faster than cash—and to prevent obstacles for future promotions.
10. Physical Rewards Physical reward systems aim to enhance customer relationships, stimulate distribution enthusiasm, and maintain brand loyalty. Manufacturers typically use them in purchase gifts, annual rewards, customer marketing meetings, and periodic sales competitions.
First, purchase rewards: Give high-value physical rewards based on a certain quantity to stimulate purchasing enthusiasm. For example, a one-time purchase of 500 cases earns a van, encouraging distributors to stock more. Other methods include gifts in each case to encourage quick shelf placement.
Second, annual rewards: For top-ranked customers, in addition to normal contract rewards, give a rear-projection TV or a computer. For customers with significant contributions, manufacturers may even provide delivery vehicles for free use, with the manufacturer retaining ownership and the customer having usage rights.
Third, at customer marketing meetings: Give gifts to all attending customers, such as high-end suits or shirts.
In periodic sales competitions, reward based on sales ranking with different physical items. For example, within a month, the top three customers receive: first place a mobile phone, second a washing machine, third a microwave oven.
Practice has shown that physical rewards have positive effects; customers feel valued by the manufacturer. The sales ranking method introduces a "horse race" system, turning it into an honor battle, achieving the manufacturer's true market promotion goals. On the other hand, for well-performing customers, there must be some control measures to prevent their appetite from growing and leading to large customers pressuring the factory.
11. Cash + Physical Rewards When a product's sell-through is not strong, physical rewards alone may not stimulate high enthusiasm for stocking, while cash rewards alone may be seen as price cuts, lowering retail prices. Considering both, many companies adopt a combination of cash and physical rewards for channel promotions, but often provide a reason or justification for the cash portion. For example, a one-time purchase of 20 cases at 240 yuan per case may include 1,200 yuan as sales staff wages or rent support, plus 4 cases of the product as a gift, to stimulate terminal enthusiasm.
12. Sales Subsidy Support Many best-selling brand manufacturers, to avoid cross-region dumping and market disruption, set uniform market prices, specifying wholesale and retail prices. That is, distributors, sub-distributors, and retailers all receive the same supply price. Distributors and sub-distributors enjoy sales subsidies, while retailers enjoy sales subsidies and retail margins. Since distributors have larger sales volumes and wholesalers are downstream customers with smaller volumes, to balance and motivate both, the subsidy rate for distributors is lower than that for wholesalers.
13. Advertising Subsidy Support For small and medium enterprises, funds are often insufficient for large-scale advertising. However, advertising is necessary, so they subsidize distributors to boost their enthusiasm and promote rapid product entry into terminals. Many SMEs classify advertising subsidies into different categories based on market performance needs:
By form: Physical subsidies and cash subsidies.
By method: 1) Percentage of purchase volume, e.g., 2% of purchase price; 2) Based on quarterly market growth, e.g., 1% rebate for 5% growth; 3) Based on distribution targets, e.g., 2% rebate for completing quarterly distribution goals.
14. Distribution Support Rewards During new product launch, manufacturers often provide distribution policies as rewards to distributors and terminal customers to stimulate enthusiasm and execution. For example, a 10% distribution support reward on the first purchase amount.
15. Training Support and Sales Assistance As market competition intensifies, customers with weaker operational capabilities find it harder to control the market. In such cases, many customers shift their approach, asking manufacturers for resources and support, shifting the focus of market operations. Manufacturers provide training support to customers and their employees to improve operational levels and competitiveness. They also assign sales personnel to assist in sales, guide operations, provide reasonable employee assessment systems, establish sound delivery systems, improve management, strengthen financial systems, and formulate competitive plans.
Typically, manufacturers hold regional marketing meetings at different times to train customers, and send trainers to train customer employees, adjusting mindsets, analyzing industry trends, announcing sales policies, building confidence, and providing sales skills guidance. In key cities, a salesperson may be stationed long-term to assist and provide feedback.
16. Market Attack Team Support When second- and third-tier markets in a region are sluggish, some manufacturers organize a delivery team to enter these cities and directly implement policy-based distribution to terminals.
The market attack team serves several purposes: creating sales momentum, thoroughly checking network outlets, testing customer delivery capabilities and network coverage, and boosting customer confidence.
The team must be composed of the strongest personnel, including the best delivery drivers and terminal salespeople. With the company covering costs, the team works with the customer's delivery team for one to two days of intensive delivery, with banners on vehicles and product combination promotions, plus POP posters where conditions allow. Timing is crucial; avoid periods when competitors are running strong promotions to ensure effectiveness.
17. Empty Box Recycling To further expand sales, some manufacturers adopt cash recycling of empty boxes to stimulate terminal selling enthusiasm. This is especially useful when a product is popular but terminal profits are low, or during new product launches when profit margins are not competitive. By recycling empty boxes, terminals gain additional profit points, increasing their willingness to push the product. As the product gains consumer acceptance, the recycling incentive is gradually reduced.
18. Product Display Rewards To fully showcase product image and increase purchase opportunities, competing for display space has become a common tactic. This often involves fighting for prime shelf positions and more display areas. If terminals display according to manufacturer requirements, they receive monthly display rewards of 300-800 yuan (cash or physical gifts, with cash being more advantageous). Terminal market personnel conduct spot checks; those violating display rules may lose the month's reward.
Some manufacturers link display rewards directly to sales, setting dual targets for display and sales with tiered rewards.
For example, a basic display fee of 300 yuan per month; if the specified sales target is met within the period, an additional 200 yuan per month is added; higher targets yield higher additional fees.
Some companies incorporate display fees into sales policies during new product launches to solve difficulties in terminal stocking and display space.
For example, a one-time purchase of 10,000 yuan returns 6,000 yuan in cash as the annual display fee, paid monthly, with the first month's fee settled at the time of purchase.
19. Merchandising Support Many companies, to fully promote their brand and convey promotional information, provide terminals with storefront/signage production (usually for good image and high baijiu sales), wine cabinets, cabinet eyebrows, in-store KT boards, POP, light boxes, posters, lanterns, price tags, and in-store/out-of-store stacking displays. They may buy out merchandising annually or periodically, rewarding terminals with a certain amount if they comply with company standards.
20. Dedicated Promoters Dedicated promoters are placed in terminal stores to directly promote and introduce products to target consumers and build brand awareness. Key points include designing professional scripts and product selling points, brand promotion scripts, and training promoters in sales skills and adaptability. This is common in restaurants; circulation outlets may have promoters based on customer needs or strategic actions.
21. Support for Key Accounts In baijiu competition, many companies provide support to major liquor retailers, including promotional staff, rent, utilities, and wages, based on cooperation standards and sales task levels. Support ratios vary according to task completion, fully mobilizing terminal sales enthusiasm and cooperation.
22. Volume Commitment Rewards Terminal outlets have different sales capabilities, leading to significant differences in results. To increase profit points for excellent customers, stimulate their enthusiasm for pushing and selling, and also motivate others to improve, companies use regular policy support, tiered rewards for completing volume commitments, and fuzzy rewards for overachievement. This stimulates and maintains terminal sales enthusiasm and standardization. In today's push for sales maximization, such standardized operations are mostly implemented by strong regional brands.
23. Cumulative Sales Rewards To maintain strong sales momentum and solve the pressure of one-time purchases, manufacturers set cumulative sales reward systems over a period. For example, when cumulative sales reach a certain amount, a percentage reward is given, credited to the next purchase or given as products of equal value. Those not reaching the threshold do not enjoy the reward; exceeding it earns higher percentage rewards.
24. Task Completion Rate Rewards This is a price subsidy for completing task targets within a specified time, encouraging terminals to actively sell the product. This incentive is usually agreed upon in advance: 1) specifying the sales period, 2) specifying the quantity to be sold, and 3) specifying the reward levels under different conditions. The faster and more goods sold, the better the task completion, the larger the reward; otherwise, the reward is smaller or nonexistent.
25. Sales Ranking Rewards Sales ranking rewards generally take two forms: periodic sales competition rankings and annual sales rankings.
In periodic sales competitions, rewards are given based on ranking with different physical items. For example, within a month, the top three customers receive: first place a high-end smartphone, second a washing machine, third a microwave oven.
Annual sales rankings reward excellent customers at year-end with luxury travel, high-end appliances, cash, etc., in addition to normal contract rewards. For customers with significant contributions, manufacturers may even provide delivery vehicles for free use, with the manufacturer retaining ownership and the customer having usage rights.
The sales ranking method introduces a "horse race" system, turning it into an honor battle, achieving the manufacturer's true market promotion goals. On the other hand, for well-performing customers, there must be some control measures to prevent their appetite from growing and leading to large customers pressuring the factory.
26. Rebate Combination Rewards To control customers, prevent sales risks and cross-region dumping, and ensure compliance with agreements, manufacturers implement a combination of rebates: explicit rebates, implicit rebates, process rebates, category sales rebates, and overall sales rebates.
Explicit rebates refer to clear reward policies; implicit rebates are vague on rewards but clear on work requirements.
Process rebates reward various details of the sales process. For example, distribution rate, market share, reasonable inventory rate, payment collection rate, compliance with price policies, and cooperation with new product promotions and activities can all be linked to rebate policies.
Category sales rebates are incentives for channels to strongly push a specific category. For example, channels prefer to sell popular categories; without incentives, other products may underperform.
For example, a distillery's rebate policy for distributors: 2% rebate for fully complying with price policies; 3% for exceeding sales targets; 2% for no cross-region dumping; 3% for actively cooperating with market promotion and promotional plans; 2% for achieving distribution rate; etc. Under such policies, distributors clearly understand that only genuine cooperation with the manufacturer yields maximum profits.
When redeeming rebates, use more physical items and less cash. Physical rebates include daily necessities, overseas travel, computers, vehicles, or training that help improve channel performance.
27. Seasonal Sales Rewards Seasonal incentives encourage distributors or key accounts to stockpile products during the off-season, helping manufacturers seize market share or sales and prevent competitors from taking advantage. Manufacturers provide additional off-season stocking rewards beyond normal promotional policies, with the reward level depending on the season. Off-season rewards are relatively large, decreasing as the peak season approaches, stimulating distributors and key accounts to stock more during the off-season.
28. Payment Speed Rewards Key accounts usually purchase large volumes and sell well but may owe payments. In such cases, besides normal collection efforts, manufacturers may introduce policies to encourage proactive and timely payment. The shorter the payment time, the greater the reward. For example, cash payment within 10 days of transaction earns a 3% reward; payment after 10 days requires normal settlement plus interest. This encourages active payment. In the home appliance industry, many companies, to alleviate capital pressure, often incentivize distributors to prepay, offering high rewards and interest rates higher than bank rates based on payment date.
29. Payment Method Rewards Payment method rewards often refer to deferred payment, installment payment, or payment on next order. Customers take goods first, with a certain credit limit, and pay later or in installments, or pay the balance when placing the next order. This accommodates cash flow difficulties and attracts more distributors and key accounts to actively stock and sell.
Payment on next order is also common among manufacturers. The manufacturer sets a quantity for the first order and delivers it as a stock pressure. When the distributor places the second order, the agreed amount for the first order is deducted, and the remaining balance is paid.
30. Customer Plaque Rewards In some markets, customers have very strong distribution capabilities, with complete delivery teams, strong delivery capacity, control over most networks in the region, and ample funds. For such regions, manufacturers typically adopt exclusive distribution systems, awarding plaques such as "Exclusive Distributor for XX Market" or titles like "XX Year Sales Champion," "XX Year Market Development Champion," or "XX Year Market Growth Champion." For customers, both material and spiritual rewards are needed; such plaques recognize their sales efforts and also stimulate other customers.
Leveraging customers' competitive nature is a good incentive. However, as marketing focus shifts downward, competition is more about terminal control. Exclusive distribution has its advantages but also exposes weaknesses in fine terminal management. Therefore, assisting customers in developing their sub-distribution systems and controlling terminals is essential to maintain long-term regional advantages.
31. Status Promotion Rewards For example, a customer who was a second-tier wholesaler can be promoted to regional distributor; or a regional distributor can be promoted to first-tier distributor. Status promotion can motivate channel members.
32. Platform Promotion Rewards Many manufacturers, to deepen cooperation with downstream distributors, begin to involve strong distributors in the company's operations, allowing them to take equity or controlling stakes, become partners, form manufacturer-distributor alliances, and jointly establish sales companies.
Large regional distributors are attracted to become shareholders, even board members, eventually forming strategic alliances. This secures the manufacturer's full trust. For distributors, they can fully utilize the manufacturer's resources and brand, and the manufacturer is willing to give ample profit margins and support. Ultimately, through joint efforts, they successfully launch and maintain the regional market, achieving win-win goals. Distributors' profits and objectives are fully realized.
-END-
