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Judging the quality of a distributor's product operation, terminal sell-through after product distribution becomes the most direct and important indicator.

Because the terminal is the last link where consumers decide to purchase, and it is where distributors ultimately realize profits. If the distributor operates well, the terminal can guide consumption, enhance brand image, and increase product flow, securing better and more market space and resources for the distributor. With the intensifying competition in the baijiu industry, terminal sell-through has become the core lifeline of sales in the distributor's market. Therefore, solving the terminal sell-through problem is the top priority for increasing sales. So, how can distributors solve the sell-through problem after distribution?

Li Qiang is a county-level market distributor who has been operating baijiu for many years. With years of accumulated relationships and customer resources, he achieved good development. However, with the arrival of the adjustment period in the baijiu industry and intensified market competition, pressure from upstream enterprises, rising competition costs from peers, and higher demands from downstream customers caused Li Qiang's company's sales and profits to plummet. To ensure the company's sustainable development, considering the 2013 baijiu market situation, Li Qiang conducted a careful market survey and chose a mass-market baijiu brand to operate.

Reasons for Poor Sell-Through

Facing the slow sell-through of new products, Manager Li personally went to the market. During his visits, he found that the main reasons for slow sell-through of new products were as follows:

Low Overall Distribution Quality: Sales personnel purely pursued distribution rate, only focusing on completing the number of stores within a specified time, without conducting in-depth and detailed understanding of the target terminals for the product, leading to a mismatch between the product's target group and the purchase location. For example, some stores simply do not match the product, and some stores are in a half-dead operating state. This leads to slow product sell-through, causing the product and brand image to decline.

Distribution Without Management: After distribution, terminal management is equally important, requiring follow-up management and close service. Simply distributing without managing is worse than not distributing at all. During market visits, Manager Li found that the phenomenon of distributing without managing was everywhere. For example, in some terminal stores, the product was placed but in an inconspicuous position, so customers did not notice it; in others, the product was placed in the warehouse, and the shelves had no stock at all. The terminal network had width but lacked depth. Another situation is that the market distribution rate is good, but there are only many outlets, while the core outlets that truly generate sales are extremely few.

Weak Terminal Merchandising: Sales personnel go through the motions, appearing busy but actually just running to outlets, focusing solely on delivery, payment collection, and other routine business tasks. The sales volume of the distributed product becomes the only goal, and they do not seriously solve problems. Their daily work is just checking if the store has stock and whether they need more. It seems everyone is busy running business, but they only do superficial work and do not fully take responsibility to achieve true channel smoothness. For example, some salespeople forget product display and terminal merchandising (such as promotional materials, price tags, POP, film wrapping, KT boards supported by the company for brand promotion, which are almost invisible in the market), and some forget to introduce the product's unique selling points and characteristics.

Clever Strategies to Attack Targets

Plan Event Marketing to Attract Attention: To pry open a good market entry, create a sensational event that attracts social attention, especially the attention of liquor drinkers. These easily become news hotspots and hot topics on the street, quickly increasing brand awareness, making consumers think of the brand and generate purchase desire. Manager Li planned a promotional event “Drink XX Fine Wine, Win an Electric Bicycle,” strategically placing the electric bicycle prizes, and then combined with local media coverage of the electric bicycles. This attracted high attention from target consumers, rapidly increasing product awareness, thus solving the sell-through problem.

Strengthen the Quality of Terminal Promoters: Nowadays, liquor distributors adopt the method of stationing promoters at large hotels, supermarkets, core famous cigarette and liquor stores, and other terminal stores with high liquor sales and high customer traffic for on-site recommendation and promotion. Although similar promotional methods are adopted, due to different brand influences and promotional skills, the promotional effects vary greatly. In addition to ensuring that the liquor taste meets local consumer preferences, distributors should also train promoters in liquor culture knowledge and customer psychology. Because the quality of promoters and appropriate promotional methods can greatly improve promotional efficiency.

To improve the quality of terminal promoters and effectively enhance brand terminal performance, Manager Li established a strict management system to regulate and constrain the behavior of terminal promoters:

First, require terminal promoters to submit work information reports based on daily sales;

Second, sales managers regularly go deep into the market frontline to fully grasp the real situation at the terminal, objectively evaluate the performance of terminal staff, and implement established reward and punishment policies;

Third, systematically train promoters in both theoretical knowledge and practical skills, provide targeted supervision and guidance, and enhance their sense of responsibility and belonging.

Product Display Has Its Tricks

Terminal product display is silent advertising, creating a strong visual impact and attraction for consumers. It is the most intuitive interpretation of brand image and an important reason for impulse purchases. Combining the company's existing problems, Li Qiang standardized terminal display from the following three aspects to effectively enhance brand terminal performance.

1. Set Appropriate Display Positions. Based on first-hand market research data, Li Qiang found that the more customers come into contact with the product, the higher the purchase probability. Therefore, the company formulated specific display standards, such as the principle of prominent position (the position where consumers can see the product at first glance when entering the store); the principle of brand concentration (to showcase brand strength, enable consumers to obtain related and holistic brand associations, and deepen the product's impression in their minds), etc.

2. Conduct Vivid Displays. Vivid terminal displays not only attract consumer attention and stimulate purchase desire but also shape a distinct brand image, directly enhancing brand terminal performance. For example, set up reminder signs and notice boards in large hotels; post advertising posters in low-end stores, hang banners inside, hang lanterns under the eaves outside, and arrange POP posters and silk balls on the bar counter in hotels; print brand advertisements on table cards, menus, tablecloths, ashtrays, magazine racks, and clothing covers on dining tables.

3. Create a Hot-Selling Atmosphere at Display Points. Research results show that about 70% of consumer goods customers make impulse purchases at the terminal, so a good sales atmosphere can help companies increase sales by 30% to 50%. Therefore, Li Qiang comprehensively used scenes, stack displays, display cabinets, store POP displays, DM display racks, model displays, promotional videos, and the performance of shopping guides to attract customer attention and enhance the hot-selling atmosphere at the terminal. To obtain the best terminal performance, Li Qiang's company's terminal displays also combined industry and product characteristics, marketing strategies, and the location and structure of terminal stores, keeping consistency with advertising images and promotional activities, selecting appropriate timing for creation, and unifying detailed operational standards for placement to highlight the desired hot-selling atmosphere.

According to the dynamic strategic combination of “points” and “areas” in the regional market, adopting the strategy of “using points to drive lines, and lines to drive areas,” strengthening customer relationships and vivid advertising to achieve outlet sell-through, and with terminal research, quickly sell the product.

Source: Baijiu Distributor Academy

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