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Currently, there is a wide variety of market promotion activities. When it comes to ensuring rapid sell-through of terminal products, dealers are more inclined to use promotions as a marketing tool. When dealers carry out promotions with minimal manufacturer support or even entirely on their own, pursuing sales volume is one reason, but if the input-output ratio is too low, making it unprofitable, it clearly fails the original purpose of the promotion. Thus, with the operational mindset of “less input, more output,” many dealers' terminal promotions exhibit distinct characteristics: small scale, low cost, single form, and high frequency.
Forms of Dealer Promotions
Dealers tend to follow trends in promotion forms. If another merchant's activity works well, they immediately suggest it to the manufacturer or simply imitate it. Looking at various promotions on the market, most are similar. If classified by form and mode, they can be broadly divided into routine promotion models and non-routine promotion models (i.e., thematic promotions).
Routine promotions are a common model used by dealers, with content that rarely changes: discount sales, free samples, and buy-one-get-one offers. Of course, the forms and gimmicks can be constantly varied. Creating novelty is the highest level of routine promotions.
The characteristics of routine promotions are summarized as follows:
- Long-term or periodic: Routine promotions generally last a long time. For example, Shuanghui ham sausage launched a calcium-added product in Shandong with a year-long buy-one-get-one-free promotion.
- Fixed: Fixed location and fixed time are the most prominent features. Some companies and dealers even call routine promotions “weekend promotions.”
- Quick effect: The effect is immediate—sales rise—but the long-term impact and influence are poor.
- On-site announcement: Routine promotions are usually announced via POP displays, display boards, posters, and staff explanations at the promotion site, not through mass media.
Application scope of routine promotions:
- Suitable for operators: small and medium-sized enterprises and small/medium agents or dealers with limited economic strength.
- Suitable for products: new product launches or existing products facing competition from similar products.
- Suitable for terminals: stores with trained staff or stationed promoters and high foot traffic.
Non-routine promotion models (also known as thematic promotions) are another type of promotion that dealers often participate in. These activities are usually planned by the manufacturer in terms of plan, theme, scale, and form, and then executed by the dealer or implemented independently. Non-routine promotions are less frequent, larger in scale, leave a deeper impression on consumers, and can have a profound impact on long-term market sales trends. Therefore, when a manufacturer presents a feasible plan, many dealers are willing to follow and take the risk.
Characteristics of non-routine promotions:
- Guidance: When operating non-routine promotions, the plan proposer usually provides comprehensive guidance to dealers on plan operation, procedures, scale, and media communication.
- Thematic: Non-routine promotions aim to leave a deep impression on consumers, so the operator will propose an attractive theme and slogan to attract more attention. For example, a manufacturer's theme activity proposed “Calcium supplementation needs ‘calcium insurance’.”
- Timeliness: Non-routine promotions have a set period; the “first come, first served” urgency is an important feature that attracts attention.
Application scope of non-routine promotions:
- Suitable for operators: large, medium, and small enterprises and agents or dealers at all levels.
- Suitable for cycles: suitable for phased promotions with intervals, usually monthly, quarterly, semi-annually, or annually.
- Suitable for venues: large outdoor areas or hypermarkets, or arranged as a network of promotion points.
Misconceptions and Key Points in Routine Promotions
Although routine promotions are often effective for dealers due to their “short, flat, fast” approach, there are also many cases of improper operation or inappropriate choices that lead dealers into a vicious cycle of “sales rise with promotion, fall without it” and “chronic suicide.” Dealers should be aware of several misconceptions when conducting routine promotions:
Misconception 1: Promotion always leads to sales. If the promotion method is wrong or the gimmicks are outdated, these “hard injuries” remain, and even the best promoters will only achieve half the result with twice the effort.
Misconception 2: Daily promotions are always good. Routine promotions are prone to “fatigue.” Many dealers think that daily promotions and discounts will surely attract consumers, but the reality is that promotion costs rise while sales remain lukewarm.
Misconception 3: Imitation is the key. Observing effective and popular promotion methods and then following up with similar operations is a common tactic. This has some market basis, but if you simply copy without innovation or adaptation, you will only follow in others' footsteps with far inferior results.
From these misconceptions, it is clear that operating routine promotions requires skill and strategy. Only by using rich techniques and appropriate promotion strategies can dealers make routine promotions “non-routine” and achieve high returns with small investments. Based on past market experience, the following key points are summarized for sharing.
1. Terminal construction is the foundation of routine promotions. Market terminals are like the base for routine promotions. If the base is not solid, promotions will not pay off. Before conducting routine promotions, dealers need to do three things well:
- Hard terminal construction: Package all product outlets with a unified visual color scheme. A product that did this well and was once popular is the Cailan eye mask, a model of hard terminal construction.
- Soft terminal construction: Training terminal staff and maintaining customer relationships are often overlooked. Dealers need to establish a complete terminal training system with manufacturer support to improve the sales force of frontline teams.
- Fixed placement of salespeople and promoters: Assigning salespeople or promoters to specific points is a management innovation. In the author's company, the “stronghold management system” was promoted as a highlight of market management, implementing a “build a nest to attract phoenixes” strategy: sales increased, promoter income rose, and excellent promoters quickly gathered.
2. Routine promotions need a combination of points and areas. When conducting routine promotions, dealers should first consider suitable promotion points. If everyone promotes everywhere, it only disperses energy, materials, and money. Dealers should select promotion points only from effective terminals, and never think that a store with poor sales needs a promotion. “Dead water cannot raise live fish” is a market lesson. After selecting appropriate promotion points, a detailed routine promotion schedule can be used to analyze information such as promotion arrangements, execution, effect evaluation, sales statistics, and experience exchange across all points. This gives dealers an overview of the market and allows timely adjustments and overall coordination.
3. Grasp the timing and cycle. Some dealers, when launching new products, immediately start routine promotions with buy-more-get-more offers. A brief analysis shows that the results will be contrary to their intentions. They hope consumers will quickly accept the new product and achieve a sales breakthrough, but in reality, consumers may not be moved by such activities, may not try the product, and may even question the price and quality of the new product. This clearly shows that dealers did not consider the timing of the promotion. Choosing the right timing, promotion reason, and promotion cycle are three key points dealers should grasp when formulating routine promotion strategies.
Issues to Note When Dealers Participate in Non-Routine Promotions
In practice, only a few dealers can independently operate non-routine promotions; most complete them with manufacturer support or under their guidance. Since non-routine (thematic) promotions require significant financial, human, and material resources in a short time, the operational risk lies not only with the manufacturer but also with the dealer in terms of future market development, team management, capital investment, and after-sales service. Therefore, when dealers receive a non-routine promotion notice or plan from the manufacturer, they should not be overjoyed but must rationally analyze the following points.
1. Feasibility and practical significance of the non-routine promotion plan. When executing non-routine promotions, a complete and detailed operation plan is usually provided. However, since such plans are often designed with universality in mind, they may lack consideration for regional differences and market characteristics. Dealers should not simply apply the plan as is. First, they must recognize that there will be differences in their region and anticipate where these differences may occur. Second, they should consider the practical significance of the promotion: Is it to generate more sales or to enhance brand image? Is it to attract new consumers or to encourage existing consumers to stock up?
2. Resources matching the non-routine promotion. The procedures for non-routine promotions are more complex than routine ones. Dealers need to consider costs, venue negotiation, promotion teams, after-sales service, media interaction, and promotional material support.
- Promotion costs: Spend according to your means; do not overestimate future returns and neglect upfront expenses.
- Venue selection: The right venue greatly affects the outcome; complete this task early.
- Promotion team: Non-routine promotions require higher-quality personnel. Avoid the mindset of “make do with whoever is available”; provide special training for non-routine activities.
- After-sales service: Many non-routine promotions leave after-sales issues; dealers must be mentally prepared and have contingency plans.
- Media interaction: Creating news highlights and interacting with media is a huge potential advantage of a good promotion plan.
- Promotional material support: Ensure all necessary promotional and related publicity materials are available.
3. Research on consumer psychology. Before conducting non-routine promotions, dealers should understand what consumers are thinking, their purchasing preferences, and what consumption and promotion information they are exposed to.
- Based on consumer thoughts, propose a promotion theme that resonates with them.
- Based on purchasing preferences, develop promotional offers that provide added value and satisfy consumer preferences, winning long-term trust.
- Based on current popular or similar promotion information, innovate in form and theme to create a fresh communication impact.
4. Competitors' possible counter-strategies and solutions. When conducting non-routine promotions, dealers should also monitor market and competitor dynamics and develop countermeasures against competitor promotion interceptions.
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