---
title: "Channel Intensive Cultivation Strategy for Weak Brands"
description: "The term 'intensive cultivation' has become a marketing keyword this year, as companies shift focus from channel competition to terminal competition. For weak brands in the FMCG industry, this strategy involves deep distribution and regional market cultivation to effectively operate and control terminals, thereby winning competitive advantage."
author: "唐道明"
publisher: "New Distribution"
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published: "2015-08-05"
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# Channel Intensive Cultivation Strategy for Weak Brands

> The term 'intensive cultivation' has become a marketing keyword this year, as companies shift focus from channel competition to terminal competition. For weak brands in the FMCG industry, this strategy involves deep distribution and regional market cultivation to effectively operate and control terminals, thereby winning competitive advantage.

The term "intensive cultivation" frequently appears in various professional market management media, and has become one of the most clicked terms in corporate marketing policies and plans. It can be said that "intensive cultivation" is a marketing keyword this year. Many companies have shifted from focusing on channel competition to gradually focusing on terminal competition, conducting deep distribution and intensive cultivation of regional markets, and starting a new round of competition targeting terminals. Whoever can effectively operate and control terminals will win the competition.

1. The Meaning of Market Intensive Cultivation

So-called channel intensive cultivation refers to a company, in a specific regional market, using integrated marketing methods to fully tap market potential, cultivate and support distributors, improve network coverage and penetration, strengthen vivid display management at outlets, and use advertising and promotional activities to pull the market, ultimately achieving the goals of distributor and terminal promotion, thereby increasing market share and brand influence, and increasing sales of the company's products.

Due to changes in the market environment, many companies have begun to realize the necessity and importance of intensive cultivation and deep distribution of the market. Especially for some weak brands in the fast-moving consumer goods industry, facing siege and market division by many well-known strong brands, in order to effectively develop and maintain existing markets, it is necessary to intensively cultivate channels. However, due to constraints of various resources, how should this work be carried out? This is a problem faced by many small and medium-sized enterprises.

2. Background of Intensive Cultivation

1. Diversification of sales channels and retail terminals

In recent years, the Chinese market has undergone great changes, with many innovations in the types of sales channels and retail terminals. Corporate competition manifests as competition for channels and terminals, controlling the market from top to bottom through various channel links. The traditional wholesale market distribution model continues to exist and develop well in some regional markets. At the same time, multinational companies entering the Chinese market have brought advanced management experience, such as regional distribution models and joint distribution body models. Many domestic companies, combining the actual situation of the Chinese market, have successfully applied these sales models and achieved good market results. In terms of retail terminal formats, street-side small shops, community convenience stores, chain supermarkets, hypermarkets, and other forms of retail terminals are spread throughout the market. Different terminal formats target different market segments and consumer groups. How companies face such a market environment and how to choose channels and terminals based on their resource conditions is very important.

2. Intensified competition at terminals

A company's ability to control the market depends on the depth of channel management, that is, the channel levels the company can effectively manage and control. With intensified competition, from regional distributors, provincial distributors, city-level distributors, to county-level distributors as the main focus, the downward shift of channel management focus is an irreversible trend and one of the main themes in the marketing industry. The bottom line for distributor focus shift is township distributors, occupying terminals in township markets. For central cities, distributors are developing towards scale, with the emergence and increasing maturity of modern terminals such as hypermarkets and chain supermarkets. Companies are competing for resources of these distributors and terminals, and competition is fierce. Companies must manage channels well, and more importantly, win terminals, manage terminals, and control terminals to win the market.

3. Market consumption characteristics

Differences and diversity in consumer behavior determine the complexity of the market. First, China's market development environment is very unbalanced, with developed urban markets coexisting with backward rural township markets. Second, consumer demand levels are divided into high, medium, and low grades. Companies can compete in different market segments to meet the needs of a specific consumer group. How to deeply and thoroughly develop a market is another problem companies face. The key is to carefully study the market and consumers, analyze consumer purchasing behavior, and let products come into contact with consumers as much as possible.

4. Deep development of the market

How to manage and maintain existing markets at a deeper level is generally rarely considered by companies; they only think about developing and occupying more markets. But the breadth of the market is always limited, and constrained by corporate resources, companies cannot occupy all markets. At the same time, competition among companies is increasingly fierce, seizing markets. In this situation, companies must consider how to deeply develop existing markets, do deeper and more detailed work, and improve the sales performance and quality of individual markets.

3. Intensive Cultivation Strategy

After having a detailed understanding of the above market environment, companies should intensively cultivate the market according to actual conditions to better develop the market, effectively manage distributors, and achieve product sales targets and market share. In fact, the intensive cultivation strategy is also an overall marketing strategy for the company. This requires the company to first formulate an overall strategic plan, implement it step by step in stages, and in this process, require the active participation of all company staff, working together to achieve the strategic goal of market intensive cultivation. In specific operations, there are the following four key strategies:

1. Establish a distribution joint body with distributors

When a company intensively cultivates a regional market, it must rely on the support of local distributors, while providing guidance and assistance in all aspects, building channels, and establishing a close distribution joint body. Help distributors with distribution and inventory management, and establish a complete distributor management and service system.

The company's sales representatives should manage distributors. Sales representatives should cooperate with distributors to do basic channel construction and management. The main tasks are five: business planning, inventory management, retail coverage, transportation and warehousing, and point-of-sale advertising and promotional support. The company should clearly define the allocation of each function between the company and the distributor, and determine each party's work focus, so as to effectively manage distributors and jointly develop the market. For large distributors, assign a key account manager to work at their headquarters; for small distributors, one salesperson can manage several distributors at the same time.

One purpose of doing this is to establish a close distribution joint body with distributors, relying on the distributor's channel network and distribution capabilities to better promote deep distribution of products.

2. Focus on network coverage and conduct intensive distribution

Coca-Cola has a famous sales motto: Where there are people, there will be thirst, and thus demand for beverages. Therefore, if the product is within reach of consumers, it will surely occupy the market. So Coca-Cola formulated the famous 3A strategy: "Available, Affordable, Acceptable" (actually "Buy it, Afford it, Find it" in Chinese context), and "Find it" emphasizes expanding outlet coverage so that consumers can buy Coca-Cola anywhere. There is also a 3P principle, one of which is "Pervasiveness." Both strategies and principles emphasize that product sales should cover more outlets and achieve high outlet coverage.

Market intensive cultivation requires companies to rely on distributors. Distributors have extensive sales networks in specific regional markets, containing a certain number of second-tier wholesalers and retailers. At the same time, distributors are familiar with these downstream network members, and are required to have warehousing and distribution capabilities. Distributors can achieve network coverage. Companies must rely on these network resources for intensive distribution, letting products reach as many terminals as possible, and approach consumers through a distribution network with high coverage and multiple channels coexisting.

When increasing outlet coverage, companies should pay attention to the following three issues:

First, ensure the outlet layout is reasonable. Do not blindly pursue coverage breadth. While occupying market blank spots, control the number of outlets and ensure the quality of individual outlets. At the same time, dynamically manage outlets, eliminate ineffective outlets, enhance effective outlets, strengthen image outlets, consolidate strategic outlets, attack competitive outlets, and establish a reasonable network layout.

Second, the various formats of outlets should be balanced. Since various consumer groups have different consumption habits, and each retail format is also established for different target consumer groups, it is necessary to take into account various outlet formats so that various types of consumers can conveniently access the product.

Third, pay equal attention to mainstream channels and main promotion outlets. In channel construction, mainstream channels should be prioritized as main promotion places. If they cannot be main promotion, use main promotion outlets to supplement and coordinate.

3. Focus on single-store placement rate

After the company's products enter downstream channels with the assistance of distributors, the next key is to increase the single-store placement rate, occupy channel resources, maximize the market potential of that outlet, and increase sales at each outlet.

While strengthening placement rate, companies must pay attention to terminal vivid display management. Especially for large retail terminals, strengthen product display and promotional effects, show the best image of the product to consumers through vivid display, increase product visibility, and attract consumer attention. At the same time, highlight the brand image of the company and product. In Coca-Cola's market strategy, effective vivid display is one of the most important parts.

The company's sales representatives should guide the construction and management of retail terminals and do a good job of vivid product display. Vivid display mainly includes the following aspects:

First, product display and inventory management. Product display requires products to occupy advantageous positions, occupy more display space, and strengthen on-site shelf management to ensure neat and beautiful product display. The key is to have certain standards and strive for standardization.

Second, the position and method of product and point-of-sale advertising. Terminal advertising generally refers to storefront POP advertising and other promotional advertisements, which can enhance the atmosphere of on-site sales and increase promotional effects. Coordinate advertising, promotional activities, and other aspects to increase single-store placement rate.

Through terminal display management and promotional advertising management, the sales behavior of channel terminals can be standardized. Companies can appear with a unified image in the channel, enhance brand image, stimulate terminal consumption, and effectively maintain market order and control terminals.

4. Manage sales personnel well

In network intensive cultivation, company sales personnel need to continuously go deep into the market, visit terminals, assist distributors in carrying out work and handling market problems. Sales personnel play a management and supervision role, which can effectively promote the implementation of market intensive cultivation plans. Sales personnel going deep into the market have a lot of work to do, such as formulating customer development plans, visiting customers in the market, solving on-site problems, following up orders and coordinating orders, collecting payments, filling various sales and market reports, travel time, personal affairs, attending various meetings, and other things. With so much work to do, it is very important for sales personnel to reasonably use time, so doing a good job of time management for sales personnel is key.

In terms of time allocation, sales personnel can follow the following three aspects:

First, sales personnel should make more development plans and increase market visit time. Going deep into the market can learn more market information, have more contact with channel members, and assist distributors and retail terminals in analyzing and solving problems.

Second, cancel unnecessary reports and reduce workload. Information is very important to companies, and various reports are a main channel for companies to collect information. Companies should formulate several key forms according to actual needs, such as daily reports, monthly reports, competitor information reports, etc. In designing forms, on the premise of ensuring basic information, strive for simple and clear design, easy to fill in. Next, more importantly, information transmission and processing should be timely and effective. Sales and marketing departments should fully analyze and utilize information, adjust sales strategies in a timely manner according to the situation, and better guide sales.

Third, standardize the customer visit behavior of sales personnel to fully and reasonably use time, and at the same time improve the skills of sales personnel. When visiting the market, sales personnel generally should follow the "four fixed" principle, reasonably allocate and use time every day. First, fix the route, plan the daily visit route, and be familiar with the number and types of stores on this route. Second, fix the means of transportation, with the principle of convenience and cost saving. Finally, fix time and fixed points, which should be comprehensively considered based on the route and transportation means. Determine the stay time at this store according to the store type, and also consider the time needed to travel from this store to the next store, so as to meet the requirements of fixed time and fixed points.

In short, require sales personnel to reasonably allocate their daily and monthly time, do a good job of time management, and do market work meticulously and deeply.

In the fast-moving consumer goods industry, marketing channels are gradually showing a trend of flattening, and the channel focus continues to shift downward. At the same time, competition between companies in channels and terminals is gradually increasing. Companies must effectively establish and control sales channels, and strengthen control and influence over channels. Under such market background, companies adjust their marketing strategies, and channel intensive cultivation strategy becomes the direction for companies to adjust their marketing strategies. When operating channel intensive cultivation, companies will make targeted operations according to their actual situation, but in overall thinking, it requires companies to ensure distributor interests, provide service support and management control, establish a distribution joint body with distributors, manage sales personnel well, assist distributors in market construction and management, conduct intensive distribution, achieve high placement rate through terminal management, and do market work deeply. The key is to pay attention to details. Through channel intensive cultivation, companies improve channel quality, effectively control channels and terminals, and win competitive advantages.

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