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The importance of terminal operations has reached a consensus across the industry. Terms like 'winning at the terminal' and 'the terminal is king' are regarded as classics by the business community. However, from an operational perspective, the market results show 'loud thunder, small raindrops'—every marketer has not treated terminal development as a strategic task.
For a period, there was a misconception in the marketing community that so-called deep distribution, direct distribution models, and the 'disk-in-disk' theory were merely forward-looking marketing theories, tools used by consulting firms to fool enterprises. Even if used, they were seen as operational models for first-tier brand companies. For small brands with low sales, directly engaging in terminal work was considered very difficult, even unrealistic.
If such thinking existed three years ago and was understandable, now, if one still clings to their circulation territory, the enterprise can only face a dead end.
Every marketing professional, including our distributor teams, must seriously approach terminal development and operations from the enterprise's standpoint, strategic height, operational level, and competitive needs. Operating terminals is the inevitable path for all enterprises and distributors:
I. The Importance of Terminal Operations
- The Need for Opportunities and Challenges. Intensifying market competition has led to further channel下沉, with original channel models undergoing profound changes. County-level agents are gradually being replaced by township-level agents. All enterprises are facing terminals directly, helping distributors control terminals.
If around 1998, companies like Sibao first proposed the terminal concept, and conditions for terminal operations were not yet mature, then after 15 years of development, enterprises focusing on terminal operations have sprung up like mushrooms. The deep distribution systems represented by Master Kong and Coca-Cola, and the skilled application of the 'disk-in-disk' theory in Anhui liquor, have achieved significant results. However, many small enterprises are busy with sales, theories lag behind, and the battle for terminals is intensifying. Therefore, in this battle for terminal operations, every marketer must be highly alert, doing their utmost, with dedication, responsibility, and wisdom. Standing by or being negligent will miss opportunities and make us the culprits of our enterprises.
The Need for Model Transformation. In FMCG, the focus is on channels, and the key to channels is the terminal. If five years ago, sales representatives could still work around distributors, now they will find market operations increasingly difficult because relying on stimulating distributors to adjust market patterns is becoming a joke. Now, terminal competition is no longer between distributors but between enterprises' top players. In terminal operations, tasks such as physical promotions, empty package exchanges, placement of large promotional items like freezers and display cabinets, establishing terminal files, and market research all require marketing personnel. Working around distributors will not bring significant market changes. The marketing environment is changing, marketing models are changing, and our operational thinking must also change, shifting to a terminal-focused mindset.
The Need for Competitive Development. As competition escalates, both products and promotions are upgrading, and market investment is increasing. In previous years, enterprises often saw promotional activities that promoted but didn't sell. The main reason was that promotion flow, product flow, and information flow became weak at the terminal, with much being intercepted, leading to ineffective terminal operations. Now, many enterprises directly participate in terminals, inevitably intensifying competition. If they don't participate in terminal competition, their products will be squeezed out of the market.
II. Key Points in Operating Terminals
Markets are made, not shouted. Therefore, marketing personnel must seriously approach terminal operations from the enterprise's height, grasp the key points, and do practical work:
Selection of Terminal Model: There are generally three models for terminal work: deep distribution, disk-in-disk, and direct distribution. As for what consulting firms say about some models being outdated, that's nonsense and irresponsible to enterprises. Enterprises should choose their marketing model based on their own strength, marketing environment, and competitive conditions.
Terminal Development: Terminal development is a systematic project worthy of research and study by every enterprise.
Develop terminal development plans and processes: including terminal distribution processes, new product launch plans, consumer pull, secondary distribution plans, strong terminal stock-up plans, and terminal investment agreements.
Recruitment, training, assessment, and management of terminal personnel. There are no small matters in terminals; the key is to focus on details and management. Otherwise, terminal development is just empty talk.
Develop terminal development plans: There is much foundational work to do, such as:
A. Survey and organize basic terminal files: During the process of visiting terminals, we can collect useful information. Some terminals are large but sell little alcohol, while others may look insignificant but sell a lot. This is crucial for terminal investment.
B. Terminal follow-up visits and information feedback. Market problems that need solving and negotiations for terminal investment are all addressed during follow-up visits.
- Implementation, monitoring, and information feedback of terminal development. Terminal development must be done step by step, not all at once. Ensure information feedback and monitor to prevent deviations in terminal management.
A. For store sign production, freezers, and display cabinets, there must be agreements with sales volume restrictions.
B. Terminal development must consider consumer education. For example, white liquor enterprises have shifted from 'disk-in-disk' in catering terminals to consumer 'disk-in-disk.' Guiding consumers, especially opinion leaders, has become the trend and direction for enterprise terminal development.
C. For terminal sales, statistics must be kept and completion of terminal sales must be urged.
- Terminal evaluation. The purpose of terminal work is to establish model markets, create atmosphere, and make money. Therefore, enterprises should evaluate all terminals from a high perspective, assessing investment and demonstration effects, comprehensively evaluating market issues to provide favorable guarantees for healthy market development.
Understanding terminal development includes:
Developing product markets in existing terminals, upgrading original terminal products, e.g., from ordinary beer to new generation or higher-end products.
Deep development of existing market terminals. Many catering or retail terminals have our products, but our sales may not dominate or even move slowly. Therefore, strengthen communication, visit existing terminal personnel, enhance merchandising, and post POP materials to gradually activate products.
- Terminal Management
Terminal market management is meticulous work that requires constant repetition. Terminal management includes three aspects:
First, daily management of terminal sales personnel.
Second, daily management of catering and circulation terminals, including tedious tasks like POP posting, checking the use of freezers and display cabinets, and utilization of store signs. Any slack can significantly reduce the return on our market investment. Therefore, marketing personnel must take responsibility, have a strong sense of duty and mission, and not let enterprise resources go to waste.
Third, risk control management of terminals. Many distributors are reluctant to do terminal work largely because terminal accounts are a headache. Therefore, when doing terminal work, seek breakthroughs in mindset and methods to prevent market risks.
Terminal work is a mission. To do business, one must do terminals. Although terminal work is hard and tiring, every marketing professional must truly take responsibility.
Once an enterprise chooses to do terminals, there is no turning back. After all, once the arrow is shot, there's no turning back. If you don't do well, not doing well is a fault.
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