How can distributors ensure the success of new products in regional markets? Every distributor with years of experience has their own unique insights and lessons. Due to differences in regional market characteristics, category and channel operations, and varying manufacturer-dealer strategies, each new product success is somewhat unique and hard to replicate, but there are commonalities. Here, we don't rush to answer the question but analyze the general approach and methods of excellent distributors through a specific case. Case: "Eight Steps" to Make New Products Sell Well 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, primarily through the catering channel, and 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 exhausted because beverages and beer are hard work with low profits, so he wanted to try distributing baijiu (Chinese liquor) 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 Gujing, Yingjia, and Kouzi dominating the market, leaving little share for others. After comparing and negotiating, Wang Hui finally 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 priced at 80 yuan for the catering channel, matching the local mainstream consumption. In the early stages, the manufacturer promised advertising and policy support but also required Wang Hui to achieve 90% catering 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 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 proceeded 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 status, and sell-through. They 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, they divided the urban area and towns into several areas, marking which outlets were easy to start with and which were tough, and planned the distribution order from easy to difficult. Step 3: Develop Distribution Policy From the market survey, competitors basically had no activities, but terminal owners had low acceptance of new brands, so the priority was to ensure terminal profits and increase their enthusiasm for stocking. To this end, Wang Hui adopted a form of giving physical gifts with distribution and formulated a detailed distribution policy 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 quota;
  • 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-Distribution Mobilization Before distribution, Wang Hui held a mobilization meeting for all salespeople 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 sweep-style distribution, visiting every catering 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 completion and clearing 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 and create a hot-selling atmosphere. So Wang Hui assigned a new task to the salespeople: terminal visualization work, which 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, soon the city was full of T product image promotions. Wang Hui formulated six requirements for terminal visualization:
  1. Each store must post 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 liquor given to the terminal monthly;
  3. Each store must place a table card on tables;
  4. Select key catering stores 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 catering stores, create a mural in each store;
  6. For stores with good sales, provide support for storefront signage... Step 8: Activity Pull to Promote Sell-Through With distribution coverage and visibility, consumers gradually formed 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 hotels and cooperated with hotels to carry out "order dishes, get free liquor" 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 points the direction for the entire distribution action, while the latter provides continuous momentum for subsequent advancement. Strategy Formulation Based on Market Control The starting point for a distributor's 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 distributors need to do is to find the product that may sell well based on local market characteristics and tailor a plan to realize that possibility. In the case, the reason why the Z brand chosen by Wang Hui could stand firm in the fiercely competitive baijiu market is first, it has a certain brand awareness; that is, Wang Hui did not choose a purely "new" product, and consumers have some recognition of it, greatly reducing the cost and resistance of later promotion. Second, the sales channel matches: T product is mainly for the catering channel, and Wang Hui's main sales channel is also catering. Although the category differs from beverages and beer, this does not affect the grafting of customer resources. Third, it matches the mainstream consumption price band; price and brand are the most concerned factors for catering 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, which not only improved the success rate of distribution 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 phenomenon often occurs: the boss is enthusiastic about promoting the new product, but the salespeople are indifferent, lukewarm, and unresponsive, showing an imbalance of "the barber's pole is hot on one end." Where is the problem? First, insufficient pre-sale communication, and 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 not only require material rewards and punishments but also the mobilization of team confidence, guarantee of key resources, 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, an independent team, 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 action was to mobilize team confidence and ensure the progress of the entire distribution action. From the results, the distribution and subsequent terminal visualization achieved good results. Next, it is necessary to persist for one peak season to further consolidate and expand the new product's market share. - END- The best FMCG distributor learning platform in China Focusing on providing professional, practical, and applicable tutorials for enterprises and distributors Committed to helping Chinese FMCG distributors grow rapidly The most professional and practical knowledge base in the FMCG industry Reply with the red number below to get the corresponding content Reply with number 1 to view the complete knowledge base | 001 Excellent Article Selection | 002 Distributor Market Operation | 003 Terminal Visit Management | 004 Sales Supervisor Skills | 005 Sales Improvement Techniques | 006 Channel Expansion | 007 Managing Distributors | 008 Distributor Development | 009 Distributor Internal Operations Management | 010 Team Management | 011 Efficient Distribution Techniques | 012 Sales Manager's Skills | 013 KA Operation Methods and Strategies | 014 First Lesson for New Salespeople | 015 Internet, Brands | 016 Distributor B2B Transformation | [Long press QR code to follow]