---
title: "“As Sales Rise, Prices Fall”: Beverage Brands Struggle Even in Peak Season"
description: "Li Chengjie notes that during the peak sales season for beverages, brands and manufacturers are fighting on the front lines, competing for freezer space and running promotions to meet annual sales targets. Given this year's economic and competitive pressures, maintaining growth is particularly challenging. The author offers five marketing details often overlooked by manufacturers and distributors, hoping to inspire them in this summer campaign."
author: "邢仁宝"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2024-08-10"
language: "en"
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original_source: "https://mp.weixin.qq.com/s/_bhIk-LYDpLeCG3r0reHZA"
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# “As Sales Rise, Prices Fall”: Beverage Brands Struggle Even in Peak Season

> Li Chengjie notes that during the peak sales season for beverages, brands and manufacturers are fighting on the front lines, competing for freezer space and running promotions to meet annual sales targets. Given this year's economic and competitive pressures, maintaining growth is particularly challenging. The author offers five marketing details often overlooked by manufacturers and distributors, hoping to inspire them in this summer campaign.

Li Chengjie

It's the peak sales season for beverages, and brands and manufacturers are fighting on the front lines, competing for freezer space and running promotions, all in a desperate bid to meet annual sales targets.

Given this year's economic and competitive landscape, the difficulty for brands still maintaining growth is immense. How to win this summer campaign? The author offers some thoughts and suggestions from five marketing details that manufacturers and distributors often overlook, hoping to provide some inspiration.

******As Sales Rise, Prices Fall******

**Case:** Manager Zhang of the office had just met his half-year target under pressure, and before he could catch his breath, the company's Q3 targets were assigned. Seeing the distributor's warehouse full of stock, he only wanted to quickly devise a distribution plan to reduce inventory. But within two days, sales staff discovered several clients in the wholesale market selling at low prices, severely disrupting the market price. Further investigation revealed that a client had brought in a truckload of low-priced goods from another region, nearly 10 yuan cheaper per case than the local price, and refused to let sales staff inspect it.

Later, through the product serial numbers sold at retail, they traced the source to a neighboring market. Manager Zhang knew that the neighboring market's half-year sales pressure was even greater than his; to meet targets, they had applied for many promotional policies, and it was likely that clients were dumping excess stock at discounted prices.

**Recommendations:** Under sales pressure, manufacturers inevitably invest more resources to meet targets, and clients, eager for rebates, easily collude with manufacturer sales staff to push inventory. But there are different ways to distribute: one is inventory transfer, where the destination is unknown (illegal diversion); the other is solid terminal execution, driving sell-through. To reduce illegal diversion and regulate pricing, consider the following:

1. **Avoid excessive intensity and frequency of tiered purchase rewards in wholesale channels.** The reward should be **no higher than the normal price difference**, and frequency **no more than once a month**. For clients with a history of irregular selling, use post-paid rewards as much as possible, with prior agreement that any violation will result in full forfeiture of rewards.

2. **Strengthen trade visits and inventory monitoring.** For clients with large inventories or who have repeatedly enjoyed promotional policies, ensure **at least two high-frequency visits per week** to understand their distribution and inventory changes. Pay special attention to sudden abnormal drops in inventory, and conduct on-site verification for so-called welfare orders. Also, repeatedly emphasize the penalties for irregular low-price selling during visits.

3. **Set reasonable targets and strengthen sell-through assessment.** Targets for clients and sales staff should be carefully set based on market inventory and sell-through after the half-year. For markets with high distribution pressure, **allocate resources such as freezing, stack displays, and promotional materials**, and focus assessments on process indicators for a period to avoid continuous inventory pushing.

**Freezer Placed, Sell-Through Disappoints**

**Case:** Product freezing is a routine move in the summer campaign for beverage manufacturers. At a morning sales meeting, salesperson Xiao Li raised a concern. During daily visits, Xiao Li actively placed his products in freezers, sometimes hiding them inside if the owner refused, but major brands including competitors did the same. After a month, Xiao Li found that his products' sell-through wasn't much better than competitors', and some products even gathered dust.

**Recommendations:** With intense industry competition, it's no longer enough to just place products in freezers. To attract consumers more than competitors, you need not only routine actions but also additional moves. Consider the following:

**1. Choose prime positions and clear pricing.** Not all spots in a freezer are equal. **The best spots are near the handle, at eye level, and easiest to grab.** For example, in a 6-layer freezer, the 4th layer is usually best; in a 5-layer freezer, the 3rd layer. Place clear price tags in front of products to display information comprehensively, linking the product to consumers' expected price instantly.

If the product is new or has promotions compared to competitors, use neck hangers, danglers, or freezer door stickers to make it visible immediately and highlight differences. Many manufacturers also create freezer door headers with brand logos to boost brand exposure.

**2. Incentives and resource investment.** The biggest challenge with freezer displays is maintenance. Besides investing in your own freezers or buying display space, **you can also run periodic instant incentives to interact with store owners.** For example, invest some funds and have inspectors randomly check freezer displays at core outlets (especially where competitors sell well but your freezing is poor). If a specified number of your products are found on the designated layer, give a 1:1 product gift immediately. Of course, notify stores in advance so they can build the habit of maintaining freezing rates.

**3. Innovate and make it fun.** When the freezer door opens, a voice message says: "On a hot summer day, grab a chilled XX, and there's a special offer if you buy now!" **This can make consumers choose your product in that moment of hesitation.** Recently, I noticed a Coca-Cola freezer in a convenience store with an ice-making machine underneath that quickly turns Coke into slush, giving consumers a delightful experience and boosting brand affinity.

**Busy Salespeople, Failing Performance**

**Case:** During the peak season, manufacturers impose many assessment requirements on frontline salespeople, and many companies introduce various sales incentives hoping they'll do more. This "want this, want that, want everything" state leaves many salespeople exhausted, so they selectively give up on harder-to-reach goals, and management's desired incentive effect is greatly diminished.

**Recommendations:** For the peak season, sales leaders must thoroughly assess their markets in advance, break down targets, and clarify the expected outcomes for each region and salesperson at each stage. Different markets require different approaches, and limited resources should be focused. Here are some suggestions:

1. **No more than three assessment items.** For frontline salespeople, process assessments should be limited to three items. During the peak season, besides sales volume, it's recommended to assess **freezer display compliance, checkout counter cut-case display compliance, and active outlet count.** Some companies also assess merchandising compliance, shelf (end-cap) display compliance, SKU count, and route visit completion. Choose the most critical items based on market and salesperson conditions.

2. **Standardize visits.** Under high performance pressure, salespeople may skip stops or make phone visits, but **high-quality visits to terminals are the foundation of all work at any stage.** Especially during the peak season, regular visits help understand product sell-through and competitor activity. More importantly, salespeople also act as terminal merchandisers, needing to replenish stock and tidy displays to maintain optimal product placement. Strictly require salespeople to follow planned routes, set up a penalty mechanism, and monitor via system backend or supervisor co-visits.

3. **Rank and set examples.** "No tracking, no results." During the peak season, performance assessments should be paired with daily, weekly, and monthly rankings so everyone knows their position in real time and can adjust. For top performers, share their experiences at morning/weekly meetings to foster a competitive and collaborative atmosphere.

**Ineffective Promotions, Frustrated Salespeople**

**Case:** Facing market promotion activities to boost distribution, salesperson Xiao Zhang showed inexplicable resistance. When the sales manager asked, it turned out that every promotion in Xiao Zhang's market required him to spend a lot of time selecting locations, coordinating venues, and even contacting distributors to deliver gifts. Sometimes he had to participate in planning the promotion, which delayed his regular sales work, and the sales made by promoters didn't count toward his own numbers.

**Recommendations:** Currently, many brands' market promotions are led by the manufacturer's regional marketing department, but due to staff shortages and unfamiliarity with the market, they need to communicate with salespeople. That's understandable, but to avoid situations like Xiao Zhang's, consider the following:

1. **Plan ahead and schedule reasonably.** The schedule for summer promotions should **be finalized by early June**, based on H1 regional sales, and communicated early with frontline salespeople. This includes location selection, promotion plans, and specific times, giving salespeople ample time to investigate and communicate, avoiding conflicts with their regular work.

2. **Help distribute terminal inventory.** Promotional products are often pulled directly from distributors, with the manufacturer reimbursing later. To fully motivate salespeople, **it's recommended to take products from nearby terminals at the event site, helping them distribute inventory immediately. The promotional difference can be covered by distributor products after the event** (manufacturers can ship products in advance to clients to reduce advance payments). This approach better demonstrates the manufacturer's commitment and credibility, and salespeople can use it to encourage secondary purchases, helping them meet their own sales targets.

3. **Focus on scenic spots and transportation channels.** This year, with various policies and self-media guidance, we've entered a new era of cultural tourism. Some cities and scenic spots have become internet-famous check-in spots. Brands should proactively cater to this in promotions. Especially in July-August, during the student summer vacation, there's a surge in travel to scenic spots, and self-driving travelers present opportunities in transportation channels.

**Promotions Not Competitive, Sell-Through Far Away**

**Case:** A brand manufacturer launched a "Buy One Get One Free" consumer promotion this summer, with big prizes like gold bars and a higher winning rate than last year. They expected much better sell-through than the same period last year, but after a month, the results were disappointing. Field visits revealed that many terminal owners were unaware of this year's promotion, and the visibility of promotional posters was less than 20%.

**Recommendations:** During the peak season, all major manufacturers launch unprecedented consumer promotions. To truly attract consumers in limited display space, you need not only differentiated promotions but, more importantly, comprehensive promotion communication. Here are some suggestions:

1. **Comprehensive promotion communication, highlight key points.** Regularly check whether salespeople are conveying promotion information to terminals during their route work. Ensure that posters, handwritten notices, or freezer stickers are placed in the best positions with maximum visibility at all serviced terminals. Highlight promotional advantages compared to competitors, such as winning rates or lottery details.

2. **Innovative promotions, multiple stimuli.** To enhance effectiveness, many manufacturers use methods like "red envelope doubling cards" to stimulate repeat purchases. Others offer a second chance for non-winners, such as scanning the cap code for a second draw or collecting caps for product redemption at stores. In short, consumer promotions need more flexible and effective methods. If management spends more time in the market, they'll surely discover innovative opportunities.

This article is just a starting point; there are many other aspects not covered in this intense summer beverage campaign. The author believes that details determine success, and execution is paramount. Under performance pressure, **only those manufacturers and distributors who stick to their business principles, learn from competitors, compare with themselves, and execute every action meticulously will go further and more steadily.**

Xing Renbao, with 14 years of marketing management experience, has served at Coca-Cola, Yili, Red Bull, and other well-known FMCG companies, focusing on marketing diagnosis, manufacturer-distributor relations, channel operations, and digital transformation.


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