Many enterprises in China currently face a common phenomenon: they set sales tasks every month and every year, but the end result is that they fail to meet them month after month and year after year. What is the real reason? In fact, whether for enterprises or distributors, you must be familiar with your regional market and control the terminal. Only then can you drive sales from the terminal and achieve your performance goals. Below, based on years of operational experience, the author discusses with readers how distributors can drive sales from the terminal.

The terminal is the last link where consumers decide to purchase, and it is the ultimate realization of profit. Operating the terminal well can guide consumption, enhance brand image, increase product flow, and secure better production space and resources for distributors. With intensifying competition in the food industry, the terminal is the core lifeline affecting a distributor's regional market sales. Increasing terminal sales is the top priority for boosting regional market sales. To drive sales from the terminal, distributors must adjust around five key metrics: terminal distribution rate, terminal merchandising, terminal relationship maintenance, effective customer count, and price system control.

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

Distribution is the act of proactively recommending products to retail terminals, thereby greatly accelerating product circulation and sales speed. Product distribution is an indispensable part of terminal work and is key to driving terminal sales, whether for new or old products. When a product enters the market, distribution is needed to create opportunities for consumers to see it; as the product matures, distribution is needed to further boost sales; when the product enters decline, distribution is needed to maintain terminal visibility.

Many distributors often think that if 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 product. But we see that Master Kong and Coca-Cola products are always in end-cap displays; this is how big companies continuously increase exposure and maintain enduring success.

When transitioning from off-season to peak season, distribution is needed to seize terminal shelf space; when transitioning from peak to off-season, distribution is needed to ensure 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 close, the psychological distance becomes close. Distributors must remember that distribution should place the right products in the right terminals and offer the right promotional policies to the right terminals; otherwise, it can lead to product misplacement, chaotic channel pricing, and shortened product life, thereby affecting profits.

Terminal Merchandising: Like a Woman's Attire and Makeup

What is terminal merchandising? It refers to all work done in the retail outlet 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 purpose of terminal construction is to increase sales.

Why do merchandising? In fact, most consumer purchases are impulsive. According to the AIDMA principle, consumers typically start by noticing a product, become interested, generate associations, stimulate purchase desire, compare with other products, and finally decide to buy. Therefore, it is essential to do attractive product displays at retail points.

Retail points are the last 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 the terminal, your product is attractive and makes consumers feel it is worth the money. Distributors must always remember that merchandising is necessary to increase sales. Your product should have the best display position, the largest display space, the highest cleanliness, optimized promotional item placement, a good brand image, and create a strong sensory stimulus and shopping environment, forming a pressure-selling atmosphere that is completely superior to competitors, thereby stimulating impulsive purchases.

Terminal Relationship Maintenance: Holding the Customer's Hand with a Table

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

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 distribution rate is high, and salespeople run every day, but sales still don't increase." Below is the single-store sales data table for Manager Li's area's terminal outlets:

Looking at this chart, what do you think is the reason affecting Manager Li's regional market sales? First, from the data, Manager Li's terminal outlets have width but lack depth. For example, the distribution rate in convenience stores is good, but there are many outlets, while the core outlets that truly generate sales are few. Many stores have very low per-store output, selling only a few boxes a month. Second, salespeople visit outlets but are not productive; they seem busy, but in reality, their daily work is just checking if each store has stock and whether they need more. Their work is superficial, and they do not fully take responsibility to ensure the channel is truly smooth, leading to distribution without management.

So how to increase sales in Manager Li's regional market? Solve the problem of terminals "only stocking, not selling"—that is, strengthen deep maintenance, enhance relationships and promotional merchandising to achieve outlet sell-through. Distributors should work with terminal stores to study how to quickly sell products, find ways to sell terminal products to consumers, and when terminals run out of stock, they will naturally reorder. This truly solves the problem of terminals "only stocking, not selling."

For example, based on the dynamic strategy combination of "point" and "area" in the regional market, adopt the "point to line, line to area" strategy. Select 50 terminal stores with monthly sales of less than 5 boxes, and create an opportunity for these 50 stores to reach monthly sales of 20 boxes—that is, the "opportunity to conquer 50 terminals." If these 50 stores can each sell 20 boxes per month, that's 1,000 boxes. Then replicate the process with another 50 stores, reaching 100 stores. Just these 100 stores would sell 2,000 boxes per month. Continue this way to eventually achieve outlet sell-through.

So how to implement the "Conquer 50 Outlets" plan?

First, select the right terminal outlets. The selection criteria are: first, high foot traffic, suitable for selling your product, and your product is already present. Second, terminals where competitors are doing well and you have also entered; such terminals prove your product can sell there, and selling well will also strike a blow to competitors.

Second, concentrate forces to attack. In operation, concentrate manpower and resources specifically on these terminals: assign the most capable salespeople to be fully responsible for these outlets; keep these outlets with a maximized display, the best promotional layout, and the highest quality relationship service. This reduces competitor display; the less visible competitors are, the greater your opportunity. Maximized promotional and display efforts directly advertise to consumers; helping these terminals sell products not only helps digest inventory, brings in more orders, and strengthens relationships, but also builds terminal owners' confidence through product sell-through, leading them to help you sell, until a virtuous cycle is achieved.

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

The price system is the life of our products. Distributors must strictly control the terminal price system when selling products.

First, the right products should be placed in the right terminals to avoid price chaos. For example, 2L beverages should be placed in community tobacco and alcohol stores or supermarkets; if placed at school gates, store owners will only discount to sell.

Second, the right promotional intensity should be given to the right terminals. During promotions, some retail owners overestimate their sales capacity; they can sell 10 boxes but order 30, thinking they will sell all even at a discount. As a result, the goods may sell, but it causes channel price chaos, and terminals have no profit.

Third, price system control. Suppose there are three stores at an intersection, all selling your product. They may compete by lowering prices, causing price chaos. In this case, communicate with the three owners and agree that as long as they keep prices consistent without discounting, each store will receive a reward at the end of the month. But if any store discounts, the reward is canceled. This creates a mutual supervision system among the three stores, maintaining a normal price system.

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