Every year, companies launch new products, and every year over 80% of them fail miserably. In fact, launching a new product is like directing a show: as long as you prepare thoroughly in the early stages and find the right leverage point, prying open the market door is not that difficult. Only through scientific market research and analysis, finding the right entry point for the new product, and positioning it according to its characteristics, can the product quickly capture a certain market share after launch and have a chance to survive. In other words, only with scientific market analysis, consumer analysis, and competitor analysis, and by being targeted, can a company's new product remain invincible. 1. Market Research When a new product enters the market, it faces many strong competitors, and may even encounter joint resistance from rivals. Therefore, choosing the market entry point is crucial. To find this point, comprehensive and detailed market research is needed. Just as a theatrical performance lasts only a few hours but may take months to conceive and rehearse, a market operator must conduct market research as meticulously and solidly as a director leading a show during the pre-launch preparation. Only then will your subsequent market strategy proceed smoothly like a well-rehearsed performance. 1.1 Investigate the current market situation Detailed and accurate market research aims to identify market differences and find opportunities to enter the market. This is a very careful and tedious job, so market researchers must be meticulous and responsible. Generally, the content of market status surveys mainly includes five aspects: (1) Investigate the local market's consumption level, consumer attitudes, main industries of the city, per capita income, etc.; (2) Investigate the management regulations of local government functional departments and their attitude towards the market economy; (3) Investigate the total market capacity of your industry, and the sales of the top three best-selling brands in the market—this will help evaluate the budget for new product launch costs, target sales, and profit expectations, avoiding blindness in subsequent market operation plans; (4) Investigate the business methods and profit expectations of local distributors, terminal retailers, supermarkets, and retail stores—this will help set product prices and distribution policies; (5) Investigate the target consumers of the product. Investigate whether your product can be accepted by local consumers. Give some products to consumers for trial (tasting). If consumers do not accept your product, no matter how you operate, it will be futile. It is better to retreat early to avoid greater losses; Investigate the cost consumers are willing to pay. If the price is too high, consumers will not buy; if too low, manufacturers will have no profit, and no one will sell a product without profit. Therefore, pricing must achieve a win-win-win: acceptable to consumers, profitable for distributors, and leaving room for the manufacturer to operate in the market; Investigate where consumers expect to buy this product. Based on consumer needs, we can not only effectively control key outlets but also save the work of distributing to outlets with no sales, saving time and costs. 1.2 Investigate similar products Similar products are both your strong competitors in the future market and a mirror for you. On one hand, for successful brands, carefully study their operation plans and success points, investigate their product quality, pricing, promotion plans, and the personality and thoughts of the market operation manager, so you can learn from experience and avoid detours; on the other hand, for failed brands, also carefully analyze their operation plans and reasons for failure as a lesson. 1.3 Form statistics and analyze market research reports The results of market research should be reflected in real data in tables, because only based on effective data can a highly feasible market operation plan be formulated. The forms of survey tables can be varied, but should be concise, clear, and organized. 2. Product Pricing In new product launches, pricing is a very important part. Especially in the FMCG market represented by white liquor, price sensitivity is very high. Once the pricing policy for a new product is wrong, even the best product cannot escape failure. There are many factors affecting the final price, including product cost, competitor analysis, target consumer analysis, and demand determination, as well as marketing strategy, corporate goals, government influence, and brand premium capability. There are two basic ways to set pricing policies for new products, and most pricing strategies in the market are derivatives and variations of these two: 2.1 Forward addition method: Add a percentage to the wholesale price and retail price. For example: ex-factory price + ex-factory price × 20% = market wholesale price; wholesale price + wholesale price × 30% = market retail price. Many products currently use the "forward addition method" for pricing, but this method is not competitive. 2.2 Backward deduction method: Through market research, find a suitable retail price, calculate terminal profits, and deduce the market wholesale price. With this pricing method, some products may have low profits and some high, so the company must communicate fully with agents in advance. In fact, low profits have two advantages: on one hand, you can please consumers with good quality and low price, forming a comparative advantage and capturing market share; on the other hand, through large volume sales, the final profit will still be substantial. High profits, although seemingly affecting sales, can also be reduced through promotional activities, or by providing policies and promotional support beyond similar products to increase channel and terminal enthusiasm, thereby increasing sales. 3. Advertising Momentum Advertising is the vanguard for new products entering the market, but it is also a double-edged sword: some companies can "spend little money and get big bargains," while others sow dragon seeds and harvest fleas. Often, consumers judge a company's strength by how well it advertises. Advertising is ultimately for consumers, so your ads must be liked by consumers. Nowadays, when promoting new products and entering new markets, everyone investigates the advertising forms of the target market, understands and analyzes competitors' advertising strategies, and formulates their own distinctive promotion plans. However, the final results are vastly different, reflecting differences in details. 3.1 Understand local customs When formulating advertising strategies, pay attention to the customs and habits of the target market consumers. Especially for regional markets, local unique customs may be the best entry point for advertising investment. For example, during a specific festival or temple fair in a city, there are usually large group activities. If you can conduct large-scale advertising at that time, the communication effect will be extraordinary. 3.2 Learn to observe city layout This is a point many people easily overlook. In fact, observing the city layout greatly helps with outdoor advertising: large outdoor billboards must be placed in high-traffic areas with wide views; for cities with concentrated areas and narrow streets, abandon high advertising positions; street lamp and light box ads should be placed on streets without large trees or obstacles on both sides; bus body ads should be placed on routes with clean cities and wide streets; front and rear bus ads are suitable for routes with crowded cities and narrow roads... City layout has a fundamental impact on outdoor advertising, so when doing outdoor advertising, you must first observe the city layout. 3.3 Ads don't have to be beautiful but must be prominent If you make a POP into a beautiful picture but fail to convey the product's promotional theme, then such an ad is meaningless for the company. A simple example: Zhao Benshan's "Xie Li Ting" ad, many viewers complained that "it always appears when eating, very annoying," but many people immediately think of it when they have diarrhea. This shows that advertising doesn't have to be beautiful; as long as it achieves the communication effect. 3.4 Grasp advertising density and frequency Excessive advertising investment will waste corporate resources and may make consumers misunderstand that "the product quality is not good"; however, too little investment means consumers have no impression. This requires a grasp of the "degree." Generally, a brand needs to be seen 3 times for consumers to have a slight awareness, 9 times to have an impression, and more than 15 times to understand the product. As an advertiser, you must calculate these numbers to use limited resources reasonably and effectively. In addition, the timing of advertising also needs precise definition. Usually, in the early market stage, to stimulate consumption and increase brand awareness, advertising intensity is strong. In the market maintenance period, one or two long-term ads are enough, but you can do short-term novel ads during holidays and other times to prevent consumers from forgetting your product. 4. Promotion Countermeasures Promotion is a common competitive tool for merchants of all sizes. Facing competitors' promotions, new products must not blindly follow suit and engage in price wars. Instead, through detailed market research, discover the "hidden doors" in competitors' promotions and hit their vital points. 4.1 Early market stage (development period)—high price and high promotion. This leaves enough room to operate the market, so you have space to counter strong opponents. 4.2 Mid-market stage (maintenance period)—disguised price reduction. This period mainly uses activities to reduce prices. On one hand, it can impact competitors and grab market share; on the other hand, it can reward old customers and attract new ones. Note the following points: first, never give away the product itself as a gift to avoid the impression of direct price reduction; second, the gifts must be of high value and non-transparent pricing; third, constantly change activity forms to prevent competitors from following. 4.3 Market peak period (consolidation period)—price maintenance. This period mainly ensures the interests of agents and terminal retailers, controlling the value-profit system through activity cycles and intensity to avoid promotion dependency. In summary, all pricing strategies should be based on market research and the purchase costs that distributors at all levels and consumers are willing to pay. Only then will they not be detached from the market; otherwise, distributors and consumers will not accept them. 5. Eight Key Points for Market Entry Generally, after having a preliminary understanding of the local market, you can formulate your market entry point. However, choosing this entry point is also very particular: 5.1 Find the weak links and gaps in the market; 5.2 Find competitors' weaknesses and hit their vital points (consumers will compare themselves); 5.3 Based on your product's strengths and weaknesses, formulate selling points (not too many); 5.4 Set a reasonable market price system (see product pricing strategy); 5.5 Based on the survey report, formulate a product marketing plan; 5.6 Based on consumer feedback from surveys, formulate targeted promotional activities; 5.7 Advertising requires integrated communication and seek differentiated advertising tactics; 5.8 The overall operation plan must be highly feasible, with complete layout, and should follow a differentiation strategy. -END- The best FMCG distributor learning platform in China Dedicated to providing professional, practical, and applicable tutorials for companies and distributors Committed to helping Chinese FMCG distributors grow rapidly The most professional and practical knowledge base in the FMCG industry Reply with the red number below to get corresponding content Reply with number 1 to view the complete knowledge base | 001 Excellent article selection | 002 Distributor market operation | 003 Terminal visit management | 004 Sales supervisor skills | 005 Sales improvement techniques | 006 Channel expansion | 007 Managing distributors | 008 Distributor development | 009 Distributor internal operations management | 010 Team management | 011 Efficient distribution techniques | 012 Sales manager's eighteen skills | 013 KA operation methods and strategies | 014 First lesson for new salespeople | 015 Internet, brand | 016 Distributor B2B transformation |