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Currently, many enterprises in China face a common issue: they set monthly sales tasks and annual sales tasks, yet month after month and year after year, they fail to achieve them. What is the underlying reason? In fact, whether for enterprises or distributors, you must be familiar with your regional market and control the retail terminals. Only then can you drive sales through terminals and meet performance targets. Based on years of operational experience, the author will discuss with readers how distributors can effectively drive sales through retail terminals.

A retail terminal is the final link where consumers decide to purchase, and it is where profits are ultimately realized. Operating terminals well can guide consumption, enhance brand image, improve product flow, and secure better production space and resources for distributors. With intensifying competition in the food industry, terminals are the core lifeline affecting a distributor's regional market sales. Increasing terminal sales is the top priority for boosting regional market performance. To drive sales through terminals, distributors must focus on five key metrics: terminal distribution rate, terminal merchandising, terminal relationship maintenance, effective customer count, and price system control.

Improving Terminal Distribution Rate: The Core of Terminal Sell-Through

Distribution is the proactive act of recommending products to retail terminals, thereby accelerating product circulation and sales speed. Product distribution is an indispensable part of terminal work and is key to driving terminal sales, crucial for both new and existing products. When a product enters the market, distribution is needed to create opportunities for consumer exposure; as the product matures, distribution further boosts sales; and when the product declines, distribution ensures continued visibility at terminals.

Many distributors often think that once a product has been on the market for 5-6 years and channel profits are transparent, especially after launching new products, there is no need to distribute the old ones. However, we see that Master Kong and Coca-Cola maintain permanent displays, which is how large enterprises sustain continuous exposure and remain enduringly popular.

When transitioning from off-season to peak season, distribution is needed to secure terminal shelf space; when moving from peak to off-season, distribution ensures product display during the long off-season. In short, distribution shortens the physical distance between the product and the consumer; when the physical distance is short, the psychological distance becomes closer. Distributors must remember that distribution should place the right products in the right terminals and offer appropriate promotional policies to suitable terminals; otherwise, it can lead to product misplacement, chaotic channel pricing, shortened product life, and reduced profits.

Terminal Merchandising: Like a Woman's Attire and Makeup

What is terminal merchandising? It refers to all work done at retail points regarding the display and management of products, promotional materials, and market equipment. Terminal merchandising includes both product and brand aspects; I often compare it to a woman's attire and makeup. The direct and ultimate goal of terminal construction is to increase sales.

Why is merchandising necessary? In reality, most consumer purchases are impulsive. According to the AIDMA principle, consumers typically move from attention to interest, then to desire, and finally to action, comparing products along the way. Therefore, attractive product displays at retail points are essential.

Retail points are the final link where consumers decide to buy; competing for each customer in the last minute is a battleground for brands, a window to showcase brand image, and the most direct reflection of brand value. I must ensure that at retail terminals, your product is attractive and offers value for money. Distributors should always remember that merchandising is vital for increasing sales. Ensure your product occupies the best display position, the largest display space, and the highest cleanliness at terminals. Optimize promotional item placement, showcase a strong brand image, create a sensory-stimulating shopping environment, and establish a pressure-selling atmosphere that is superior to competitors, thereby stimulating impulsive purchases.

Terminal Relationship Maintenance: Holding Customers' Hands with a Chart

For terminal relationship maintenance, distributors can refer to the following table to compile statistics, grasp customer information, understand customer needs, and facilitate long-term retention.

Increasing Effective Customer Count: "Point to Line, Line to Area"

Regarding the effective customer count for distributors, I will cite a real case to illustrate its importance. Manager Li, a beverage distributor in a certain prefecture-level city, often said, "Our area's terminal network distribution rate is high, and salespeople are out every day, but sales still won't increase." Below is the single-store sales data table for Manager Li's area's terminal network:

Looking at this chart, what do you think is affecting Manager Li's regional market sales? First, from the data, Li's terminal network has width but lacks depth. For example, convenience store distribution in the area is good, but there are many outlets with few core outlets that actually generate sales. Many stores have very low per-store output, selling only a few boxes a month. Second, salespeople are just going through the motions; they appear busy, but their daily routine is mostly checking if each store has stock and whether they need more. Their work is superficial, and they do not fully take responsibility to ensure smooth channel flow, leading to distribution without follow-up.

So how can we increase sales in Manager Li's area? The solution is to address the problem of terminals "only stocking, not selling." This means strengthening deep maintenance, enhancing relationships, and improving promotional displays to drive sell-through. Distributors should work with terminal stores to figure out how to quickly sell products to consumers. When terminals sell out, they will naturally reorder, truly solving the "stock but no movement" issue.

For example, using a dynamic strategy combining "points" and "areas," adopt the "point to line, line to area" approach. Select 50 terminal stores with monthly sales below 5 cases and create an opportunity for them to reach 20 cases per month—this is the "opportunity to conquer 50 terminals." If these 50 stores each sell 20 cases monthly, that's 1,000 cases. Then replicate this with another 50 stores, reaching 100 stores, and these 100 stores alone would sell 2,000 cases monthly. Continue this process to eventually achieve sell-through across the network.

How to implement the "Conquer 50 Stores" plan?

First, select the right terminal outlets. The criteria for selection are: high foot traffic, suitability for your product, and where your product is already present. Also, choose terminals where competitors are performing well and where you have also entered; this proves your product can sell there, and succeeding will also strike a blow to competitors.

Second, concentrate forces for attack. In operation, allocate human and material resources specifically to these outlets: assign your most capable salespeople to be solely responsible for these stores; ensure these stores always have the largest display space, the best promotional materials, and the highest quality relationship service. This reduces competitor display space—the less visible competitors are, the greater your opportunity—and maximizes your promotional and display impact on consumers. Helping these terminals sell products not only helps them clear inventory, increases reorders, and strengthens relationships, but also builds the store owner's confidence in your product, leading them to actively promote your products until a virtuous cycle is achieved.

Price System Control: Placing the Right Products in the Right Terminals

The price system is the lifeblood of our products. Distributors must strictly control terminal pricing.

First, place the right products in the right terminals to avoid price chaos. For example, 2L beverages should be sold in community liquor stores and supermarkets; if placed at school gates, store owners may be forced to discount to move them.

Second, offer appropriate promotional intensity to suitable terminals. During promotions, some retail owners overestimate their sales capacity; they might order 30 cases when they can only sell 10, thinking they can sell everything even at a discount. As a result, they may sell the stock but cause channel price confusion, leaving terminals with no profit.

Third, manage the price system. Suppose there are three stores at an intersection, all selling your product. They may compete by lowering prices, leading to price chaos. In this case, communicate with the three owners and agree that if they maintain consistent prices without discounting, each store will receive a reward at month-end. However, if any store discounts, all rewards are canceled. This creates a mutual monitoring system among the three stores, maintaining a normal price system.

Source: Sales and Marketing

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