Click the image for details Current background analysis: Development bottlenecks for FMCG distributors: Many industries are declining, such as beer, beverages, instant noodles, etc., and manufacturers often share or directly transfer operational risks to distributors; channels are too fragmented, and channel driving force is weakening; difficulties in recruiting, employing, and retaining staff, along with rising warehousing and other operational costs; well-known brands have demanding operational requirements – capital, personnel, warehousing, vehicles, social resources, and other operational pressures, with fast product turnover but low profits; non-well-known brands have lower operational pressure and larger profit margins, but poor turnover, and after-sales service from manufacturers is not guaranteed. How can distributors adjust their business structure in the new environment to achieve a "dual-wheel drive (new and old products)" in product operations and maximize profitability? Today, we only discuss how distributors can successfully play with new products. Choice is greater than effort; choosing a good product is half the success Almost every industry and enterprise launches new products every year to meet business needs and consumer demands. Thousands of new products can be overwhelming, with various claims and styles, leaving distributors who are selecting new products at a loss, and a small mistake could lead to lifelong regret. How to choose new products? What is a good product? First, clarify your purpose for adding new products, the types of new products, and the characteristics they need to meet, and search with questions and direction. Analyze your overall strength and current development stage, and match the conditions for operating your products. Characteristics of a good product – high appearance, high cost-performance, and strong consumer experience. For example, for baijiu, don't talk about ethyl acetate and other alien language to ordinary consumers; first, it should be comfortable to drink, and then after drinking, it should not cause dry mouth, headache, or slow recovery – these direct reactions are enough. Especially for products with strong self-experience like food and drink, taste innovation is crucial. Yanghe created soft-style baijiu, Master Kong's rock sugar pear, Wahaha's nutrition express – all of these achieved thorough taste innovation. Pseudo-innovations and conceptual ready-to-drink products are destined to be short-lived, like the earlier "Ta Ta" and "She She" beverages. The selling point of a good product must align with consumer mindset, not change it. For example, "Use your brain often, drink six walnuts regularly" – the idea that eating walnuts nourishes the brain already exists in consumers' minds, so no guidance or cultivation is needed; only the functional claim needs to be expressed. The author once contacted a baijiu manufacturer that mainly produced walnut wine, claiming it nourishes the stomach. Later, research found that walnuts do have this effect, but consumers only pay for the brain-nourishing claim. However, Jing Brand's Jing Wine and Maopu, which use goji berries and tartary buckwheat as raw materials, both succeeded. Characteristics of a good product's owner – no cutting corners in quality, craftsmanship spirit, good corporate reputation and credibility. Executives have clear, pragmatic, and non-radical thinking; the team is dynamic; the manufacturer has strong strength and invests heavily in the market. Of course, these are not just empty promises from the manufacturer; you need to develop a discerning eye and easily distinguish between humans and demons through small actions. Of course, besides meeting some necessary rigid characteristics, the rest is about the distributor's own compatibility and fit. The right one is the best. Think before you act After the product arrives, don't rush to operate the market. Conduct preliminary market research and reconnaissance, sort out terminals, and aggregate resources; formulate market operation plans, communicate with manufacturer personnel, and connect resources; set expected goals and prepare the various resources needed to match those goals; establish a compensation and assessment system to achieve expected goals and match organizational personnel. Details to note: All tactical actions should be as specific, simple, and easy to execute as possible. Goal requirements: In the early stage, don't set too many goals; preferably one, at most two. For example, the first stage focuses on effective terminal distribution rate; the second stage focuses on consumer pull – roadshows, tastings, tasting sessions, etc. Resource integration must use the most advantageous existing resources to match the product's needs. Assessment must be precise, and everyone should be motivated Assessment must be targeted. Taking beer as an example: in the early stage, focus on outlet development, with sales as secondary; high base salary, low commission, high process management bonus; in the later stage, focus on sell-through and sales, while also considering the process. Of course, different products have different operational approaches, but the compensation and assessment system must be reasonably formulated based on the expected results needed at each stage of product operation. Organizational follow-up and logistical support New products are best operated by dedicated personnel; otherwise, they may be suffocated in the cradle by executors. The team members needed for the new product should be arranged before the intention to launch the new product. One hole for one radish; avoid scattering like flowers Products must be placed in effective terminals, and later supplemented with targeted sell-through actions. It's best to create sample stores and sample streets within your jurisdiction, rather than scattered stars. Slow but steady; cash is king No matter how difficult the market attack, always insist on cash transactions. Benefits: buyers have cash pressure, which helps recommend new products for cash conversion; for distributors, it facilitates capital turnover. Disadvantages of non-cash: not conducive to sell-through, not conducive to capital turnover; refuse credit sales. Simmer slowly; take your time Avoid excessive channel promotion intensity after launching new products. When consumer acceptance is low, channel promotion has little effect. Excessive promotion not only fails to accelerate sell-through but may also cause price collapse. Even if sell-through accelerates later, there will be no resources to invest. During the introduction and growth stages, focus resources on consumer promotion and brand promotion; during maturity and decline stages, focus on channel promotion. Greatness is achieved through persistence; stick to it In the author's actual research, many big distributors who succeeded with brands like Niulanshan Erguotou and Six Walnuts often didn't succeed with their first choice but with the third or fourth. The reason is that new products need cultivation, especially new categories. When the cultivation of new products coincides with the explosive period, the distributor succeeds. So, some products need long-term operation and persistence, while others need short-term. Of course, luck cannot be completely ruled out. Follow the trend and keep pace with the times The marketing environment is constantly changing. Outdated thinking is destined to lag behind trends. Win by advantages, lose by trends. Develop in sync with market environment changes. For example, in early promotion and publicity, if you still rely on traditional methods like posters and newspapers, you'll get half the results with twice the effort. If you use new media, event marketing, and other emerging communication tools, you'll get twice the results with half the effort. The above is elaborated from the perspective of a relatively mature distributor on how to play with new products. Similarly, distributors vary in strength, development stage, and operational thinking, but the "way" of operation is roughly the same. The classic 4P theory in marketing – product, price, place, promotion – with channels becoming increasingly fragmented, the stimulating effect of promotion diminishing, and consumers obtaining information through diverse and convenient means, developing a good product is an important topic for all enterprises. Only big single products can build big enterprises and help distributors become major players. Zhu Chaoyang, a combination of academic and practical, a cutting-edge practical marketing expert, skilled in regional market breakthroughs and building wolf-like marketing teams. 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