---
title: "Case Analysis | Distributors Achieve New Product Success in \"Eight Steps\""
description: "How can distributors ensure the success of new products in regional markets? While each experienced distributor has unique insights, commonalities exist. This case study analyzes the general approach and methods of an excellent distributor in launching new products."
author: "张宇"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2019-11-25"
categories: "Brand Marketing, Dealer Operations"
language: "en"
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citation: "张宇. “Case Analysis | Distributors Achieve New Product Success in \"Eight Steps\".” New Distribution, 2019-11-25. https://xinjignxiao.com/en/articles/case-analysis-distributors-achieve-new-product-success-in-eight-steps-813c577e/"
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---

# Case Analysis | Distributors Achieve New Product Success in "Eight Steps"

> How can distributors ensure the success of new products in regional markets? While each experienced distributor has unique insights, commonalities exist. This case study analyzes the general approach and methods of an excellent distributor in launching new products.

How can distributors ensure the success of new products in regional markets? For this question, every distributor with years of experience will have their own unique insights and lessons. Due to differences in market characteristics across regions, variations in category and channel operations, and differing perceptions of market strategies between manufacturers and distributors, the success of each new product carries a "case-specific" nature that is hard to replicate, but that doesn't mean there are no commonalities. Here, we won't rush to answer the above question but instead analyze the general thinking and methods of excellent distributors in new product operations through specific cases.

**-01- Case: "Eight Steps" to Achieve New Product Success**

Wang Hui is a distributor in a county in Anhui, mainly handling beverages and beer, with network coverage in the county seat and several surrounding towns. His primary channel is foodservice, and he has a good reputation locally. Wang Hui has 4 delivery trucks and over 10 salespeople, with annual sales reaching 30 million yuan, making him a major player locally. However, Wang Hui always felt the work was tiring because beverages and beer are labor-intensive with low profits. So he wanted to try distributing baijiu (white spirits) to increase profits and fill the market gap when beverages and beer enter the off-season. However, competition in Anhui's baijiu market is fierce, with local brands like Gujing, Yingjia, and Kouzi dominating the market, leaving little share for others.

After comparing multiple options and negotiations, Wang Hui chose a T product under the Z brand, which has some recognition in Anhui, and became the local general agent. T product is a new product from Z brand priced at 80 yuan for foodservice, matching the local mainstream consumption. In the early stages, the manufacturer promised certain advertising and policy support but also required Wang Hui to achieve 90% foodservice coverage within one month and 80% circulation coverage within three months.

Since he had never dealt with baijiu before and the manufacturer's requirements were high, this was undoubtedly a challenge for Wang Hui. But since he had taken it on, he had to find ways to complete it. Based on his experience with beverages and beer, Wang Hui did not rush to distribute but advanced step by step according to his own plan:

**Step 1: Detailed Market Research**
Wang Hui organized salespeople to survey the market, focusing on competitors' prices, policies, activities, distribution, and sell-through. He spent 5 days sorting out the current market situation of competitors to have a clear picture.

**Step 2: Divide Areas and Plan Routes**
Based on the company's existing outlet resources, he divided the urban and township areas into several zones, marking which outlets were easy to start with and which were tough nuts, and planned the distribution order from easy to difficult.

**Step 3: Develop Distribution Policies**
From the market survey, competitors basically had no activities, but terminal owners had low acceptance of new brands. So first, ensure terminal profits to increase their enthusiasm for stocking. To this end, Wang Hui adopted a form of giving physical gifts with distribution and formulated detailed distribution policies as follows:

> One-time cash purchase of 120 cases of T product: get an Apple iPhone;
> One-time cash purchase of 70 cases: get a tablet;
> One-time cash purchase of 20 cases: get a travel slot;
> One-time cash purchase of 10 cases: get a shopping card;
> One-time cash purchase of 5 cases: get a barrel of oil;
> One-time cash purchase of 2 cases: get a case of beer...

The distribution policy was very attractive, but did not give away the product itself, ensuring price stability.

**Step 4: Pre-launch Mobilization**
Before distribution, Wang Hui held a mobilization meeting for all sales staff and formulated a distribution competition reward policy. The salespeople were divided into four groups, each with two people and a vehicle, distributing with the vehicle; every day they distributed along the planned routes in their respective areas, with evaluations every two days, scoring based on the number of outlets and sales volume. The first place received 200 yuan, the second 100 yuan, fully motivating the salespeople.

**Step 5: Concentrated Distribution**
With all preliminary work ready, they began concentrated distribution. According to the plan, distribution was carried out in two rounds. The first round was a street-by-street distribution, visiting every foodservice outlet on the route, ensuring policy implementation where possible, and recording details and reasons for those not covered. The second round focused on attacking the remaining outlets to win them over.

**Step 6: Summary**
During distribution, Wang Hui worked as hard as the salespeople, getting up early and staying late. Every morning, he held a morning meeting to boost morale; every evening, he summarized the difficulties encountered and discussed solutions one by one, ensuring daily clearance to remove obstacles for the next day's distribution.

**Step 7: Terminal Visualization**
After reaching 90% coverage, it was necessary to make consumers see the product everywhere to create a hot-selling atmosphere. So Wang Hui assigned a new task to the salespeople: terminal visualization work. This was incorporated into the assessment system, with deductions for non-compliance and rewards for good performance. Through a series of terminal visualization efforts, plus the manufacturer's outdoor advertising support, the city was soon filled with T product's image promotions.

**Wang Hui's Six Requirements for Terminal Visualization:**

> 1. Each store must display at least two T product posters, maintained long-term;
> 2. Each store's bar counter must have a display of at least 6 bottles, with 1 case of wine given to the terminal monthly;
> 3. Each store must have a table card on the table;
> 4. Select key foodservice outlets for table setting, placing 2 bottles of T product on each table daily, and after one month, give them to the restaurant;
> 5. For key foodservice outlets, create a mural in each store;
> 6. For high-volume stores, provide signage support...

**Step 8: Activities to Drive Sell-through**
With distribution and visibility, consumers gradually formed some awareness of T product, but it still needed a stimulus. So Wang Hui began using weekends to conduct promotional activities in main streets and large towns, mainly free tasting and roadshows, two sessions per week, with lucky draws to attract consumer participation. At the same time, he placed promoters in some restaurants and cooperated with them on "eat dishes, get free wine" activities. After three months of operation, T product finally sold well in the county.

**Analysis: "Strategy + Execution" Ensures Success**
From the entire process of Wang Hui's successful new product operation, there are two key elements: the success of strategy and the success of execution. The former pointed the direction for the entire distribution campaign, while the latter provided continuous momentum for subsequent advancement.

**Wang Hui's Six Requirements for Terminal Visualization:**
1. Each store must display at least two T product posters, maintained long-term;
2. Each store's bar counter must have a display of at least 6 bottles, with 1 case of wine given to the terminal monthly;
3. Each store must have a table card on the table;
4. Select key foodservice outlets for table setting, placing 2 bottles of T product on each table daily, and after one month, give them to the restaurant;
5. For key foodservice outlets, create a mural in each store;
6. For high-volume stores, provide signage support...

The starting point for a distributor to formulate a new product operation strategy is not the product itself, but the regional market. Not all products are suitable for a specific market, but every market has best-selling products. What a distributor needs to do is find the product that may sell well based on local market characteristics and tailor a plan to realize that possibility.

In the case, the Z brand chosen by Wang Hui was able to stand firm in the competitive baijiu market first because it had a certain brand awareness. That is, Wang Hui did not choose a purely "new" product; consumers had some recognition of it, which greatly reduced the cost and resistance of later promotion.

Second, the sales channel matched. T product was mainly for foodservice, and Wang Hui's main sales channel was also foodservice. Although the category differed from beverages and beer, this did not affect the grafting of customer resources. Third, it matched the mainstream consumer price band. Price and brand are the most important factors for foodservice consumers, making T product an easy choice for mass consumption.

The above points show that Wang Hui's product selection strategy was successful. When formulating the distribution plan, Wang Hui started from market research, task division, and policy formulation, determining the timing, stages, and intensity of distribution. This not only improved the success rate of the distribution campaign but also considered the stability of the product price system, achieving both short-term goals and long-term interests.

**Team Execution Comes from Action and Persistence**
In real new product promotion, a puzzling scene often appears: the boss is enthusiastic about promoting the new product, but the salespeople are indifferent, lukewarm, showing a "one-sided enthusiasm" phenomenon. Where is the problem? First, insufficient pre-sale communication; salespeople have low recognition of the new product. Second, sales incentives are insufficient to stimulate salespeople's enthusiasm.

In fact, efficient action and strong execution of the sales team require not only material rewards and punishments but also team confidence, key resource guarantees, independence of the sales team, and persistence for at least one peak season.

Wang Hui's mobilization meeting before distribution was precisely to address these issues. In terms of task and assessment formulation, Wang Hui ensured the independence of the sales execution team. Specifically, it was an independent team with independent salary and independent assessment, truly focusing the sales team's attention and execution on the new product's distribution, display, promotion, and sell-through.

Afterwards, Wang Hui's process supervision of the entire distribution campaign was to boost team confidence and ensure the progress of the distribution campaign. From the results, the distribution and subsequent terminal visualization achieved good results. Next, it was necessary to persist for one peak season to further consolidate and expand the new product's market share.

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## Citation metadata

- Publisher: New Distribution
- Author: 张宇
- Published: 2019-11-25
- Canonical: https://xinjignxiao.com/en/articles/case-analysis-distributors-achieve-new-product-success-in-eight-steps-813c577e/
- Original source: https://mp.weixin.qq.com/s/FqmgDC0NbigTGjtRFzUISg

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