Tip: Click the “↑” above to follow “FMCG Distributor Professional Consulting” for more marketing and distributor internal management content. Keywords: Opening township sub-distributors, using low-priced products to nurture channels, county-level distributor services, sales rep visits
Opening township sub-distributors: For most townships (except those very close to the county seat and small in size), relying solely on county distributor vehicle sales coverage is difficult to do well—such coverage often results in high prices, frequent stockouts, untimely service, and channel gaps. Moreover, villages and scenic spots within townships are even more likely to become blind spots. To develop townships thoroughly, it is essential to open sub-distributors. Compile statistics on the opening of distributors/sub-distributors and terminal distribution in all key township markets in the area, and launch a “Township Account Opening Plan.” Before the peak season, develop sub-distributors in each key township to extend the sales network—can this increase sales? Do not blindly pursue speed; have basic standards for opening accounts. For example, if you open a township sub-distributor for beer, but that sub-distributor is unwilling to supply on credit to hotels, then you have given up half the township beer market.
Using low-priced products to nurture channels: Townships need low-priced products; high-priced products also have sales, but early sales are small, so relying solely on high-priced products makes it difficult to develop township markets—sub-distributors won't play along. Launch low-priced products in township markets to reduce the difficulty of developing township sub-distributors. Use low-priced products to nurture the township distribution channel, then follow up with high-priced products—can this increase sales?
County-level distributor services: Townships generally cannot open distributors (due to small volume and inability to pick up full truckloads); instead, they open second-tier sub-distributors supplied by county-level distributors. Some distributors treat townships as “their own market to cultivate, providing timely service and helping sub-distributors do market work”; some consider townships merely as “profitable areas” and add margins, refusing to deliver if volumes are small; others adopt an attitude of “do it if convenient, skip if not.” This leads to untimely deliveries causing stockouts, high delivery prices, and county distributors and township sub-distributors competing for key township customers. In the off-season, service to townships often decreases because in the peak season, county distributors proactively send vehicles to townships, but in the off-season, they often wait for township sub-distributors to request goods and only deliver when a full truckload is accumulated. If county distributors do not support or provide inadequate service, township sub-distributors cannot perform well because the county distributor's service level determines township sales.
Manufacturer sales rep visits: Township transportation is inconvenient, making it a blind spot for manufacturer personnel visits. However, relying solely on county distributors' self-discipline to assist sub-distributors in doing well in townships is unlikely. Manufacturer sales reps should increase visit frequency to township sub-distributors, supervise county distributors' ex-factory prices, delivery, bottle returns, service, and gift distribution, and also supervise sub-distributors' service and pricing to terminals. Additionally, they should personally visit terminals, control several large stores, find blank spots in township markets, and urge sub-distributors to improve terminal service capabilities... In fact, townships are easier than county seats—township customers are more approachable and have lower expense expectations. The only difficulty is inconvenient transportation, but there are many solutions, such as having sales reps take shuttle buses with folding bicycles to visit township terminals; or having them ride motorcycles; or having them take buses to townships and then borrow customers' bicycles to visit townships and villages; if that fails, store an old bicycle at a key customer in each township... As long as you don't slack off, there are always more solutions than difficulties. If you develop township sub-distributors, introduce the right product mix, increase visit rates, and manage and improve county distributors' service capabilities to townships, can you increase sales?
This article is excerpted from Mr. Wei Qing's book "Terminal Sales Secret Manual" published by Peking University Press.
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