Product sales seem to be 'no promotion, no sales.' If the product is not promoted, the channel or terminal will not proactively stock up; if the product is not promoted, the channel or terminal will not push your product; if the product is not promoted, channel or terminal loyalty will decrease; if the product is not promoted, market share will quickly be taken by competitors. These phenomena force companies to work hard on sales promotions to achieve market share expansion and sales growth.
Below are 21 channel promotion methods seen in the market, shared for reference.
1. Buy More, Get More of the Same Product This is a basic promotional method, such as buy 10 get 1 free, buy 8 get 1 free, or buy 5 get 1 free. The weaker the product's pull, the stronger the promotion. This type of promotion is generally used by manufacturers for products that are not bestsellers but are key pushes, as a way to force inventory onto terminals and increase their stock. In real marketing, the quantity stocked by terminals often becomes a key performance indicator for the manufacturer's product promotion. This method is simple, easily leads to price discounting, and if terminal sell-through is slow, it can lead to low-price dumping, disrupting the price system and shortening the product lifecycle. The premise for this method is: strong promotional support to ensure terminal sell-through speed, strict terminal control, and limiting the number of sets per outlet based on the promotion schedule to avoid killing the product.
2. Product Bundling Product bundling usually involves bundling a bestseller with a slow-moving product, or a bestseller with a new product. The main purpose is to ensure that while the bestseller sells well, the slow-moving or new product is more easily accepted by terminal outlets, reducing the difficulty of distribution, and encouraging terminals to promote the new or slow-moving product. This is generally used when the bestseller has high consumer self-selection and strong brand influence locally; otherwise, terminals won't accept slow-moving or new products, increasing their inventory or sales pressure.
3. Product Portfolio Promotion Product portfolio promotion combines market demand with corporate goals. For example, in a certain market, the mainstream consumer price points for baijiu are concentrated at 30, 60, and 80 yuan. The company's 30-yuan product is relatively strong with high demand, but the company wants to upgrade its price band and brand without significantly affecting sales. So they adopt a portfolio where the 30-yuan item accounts for about 50% of distribution, 60-yuan about 30%, and 80-yuan about 20%. The 30-yuan item doesn't bring much gross profit but generates volume and fights competitors; the 60-yuan and 80-yuan products are the real focus of the company's promotion.
4. Physical Gifts Frequent product promotions can bore terminals, so manufacturers sometimes change the promotion method while maintaining channel promotion space. For example, buy 2 cases of new product and get an air-conditioning blanket, or one-time purchase of 10 cases gets a mobile phone, or cumulative sales reaching a certain amount gets a tricycle. In practice, gifts like rice and cooking oil, which are close to daily life and easy to liquidate, are more easily accepted by terminals and achieve good results. However, terminals may also factor the gift into price profits, leading to lower product prices.
5. Cash Rebates Cash rebates are the most attractive promotion for terminals. For example, for a one-time purchase of 5 cases, a direct cash rebate of 100 yuan is given on the current payment. This promotion should not be used on single-item portfolio promotions, as it may cause some terminals to lower retail prices, affecting further sales. Promotion aims to maximize sales volume and ultimately maximize profit. This method should only be used as an immediate competitive tool, not frequently, otherwise terminals may become bored with other promotions—nothing beats cash—and it may hinder future promotions.
6. Cash + Physical Rewards When a product's sell-through is not strong, physical rewards alone may not motivate terminals to stock up, while cash rewards alone may seem like a price cut, lowering the product's retail price. Given these considerations, many companies adopt a cash + physical reward approach for channel promotion, but often provide a reason or justification for the cash portion. For example, for a one-time purchase of 20 cases at 240 yuan per case, give 1,200 yuan as sales staff wages or rent support, plus 4 cases of the product as a bonus, to stimulate terminal enthusiasm.
7. Box Recycling Rebates To further expand sales, some manufacturers use cash rebates for recycling empty boxes to stimulate terminal sales enthusiasm. This is especially useful when a product is popular but terminal profit is relatively low, to prevent a drop in sales enthusiasm. Or during new product launch, when the profit margin is not competitive, box recycling can increase terminal profit points and encourage push. As the product gains consumer acceptance, the rebate intensity is gradually reduced.
8. Display Rewards To fully showcase the product, increase purchase opportunities, and compete for shelf space, brands often compete for prime positions and more concentrated displays. If terminals comply with the manufacturer's display requirements, they receive monthly display rewards of 300-800 yuan (cash or physical gifts; cash is more attractive). Terminal staff spot-check compliance; violations may result in loss of the month's reward. Some manufacturers link display rewards directly to sales, setting dual targets for display and sales with tiered rewards. For example, a basic display fee of 300 yuan per month; if the specified sales target is met within the period, an additional 200 yuan per month is added; if higher targets are met, the additional fee increases. Some companies incorporate display fees into sales policies during new product launches to solve difficulties in getting terminals to stock and display. For example, for a one-time purchase of 10,000 yuan, return 6,000 yuan in cash as an annual display fee, paid monthly, with the first month's fee paid at the time of purchase.
9. Visual Merchandising Support Many companies, to fully promote their brand and convey promotional information, provide terminals with shop signs/facades (usually for good image and high baijiu sales), wine cabinets, cabinet tops, in-store KT boards, POP, light boxes, posters, lanterns, price tags, and in-store/out-of-store stack displays, either on an annual buyout or periodic basis. As long as the company's standards are met, terminals receive a certain amount of reward.
10. Dedicated Promoters Dedicated promoters are placed in terminal stores to directly promote and introduce products to target consumers and do brand promotion. The key is designing professional scripts, product selling points, brand promotion language, and training promoters in sales skills and adaptability. This is common in restaurants; circulation outlets are set up based on customer needs or the manufacturer's strategic actions.
11. Support for Major Accounts In baijiu competition, many companies provide support to major sales accounts, such as promotional staff, rent, utilities, and wages, based on cooperation standards. Support is given at different ratios according to the terminal's sales task levels and completion, to fully mobilize terminal sales enthusiasm and cooperation.
12. Volume-Based Rewards Terminal outlets in a region have different sales capabilities, leading to large differences in results. To increase profit points for excellent customers, stimulate their push and sales enthusiasm, and also motivate others to improve, companies use regular policy support, tiered rewards for meeting volume targets, and fuzzy rewards for overachievement. This stimulates and maintains terminal sales enthusiasm and standardization. In today's push for sales maximization, this standardized approach is often implemented by strong regional brands.
13. Cumulative Sales Rewards To maintain strong sales momentum and solve the pressure of one-time purchases, companies set cumulative sales reward systems over a period. For example, when cumulative sales reach a certain amount, a certain percentage reward is given, either credited to the next purchase or given as equivalent products. If targets are not met, no reward; if exceeded, higher percentage rewards apply.
14. Task Completion Rate Rewards This is a price subsidy given to terminals for completing sales tasks within a specified time, encouraging them to actively sell the company's products. This incentive is usually agreed upon in advance: first, the sales period is specified; second, the quantity to be sold is specified; third, the reward levels for different situations are specified. The faster and more tasks are completed, the greater the reward; otherwise, rewards are smaller or nonexistent.
15. Sales Ranking Rewards Sales ranking rewards come in two forms: periodic sales competition rankings and annual sales rankings. In periodic competitions, rewards are given based on ranking, such as within a month, the top three customers receive a high-end smartphone, a washing machine, and a microwave, respectively. Annual rankings reward excellent customers with luxury travel, premium appliances, cash, etc., in addition to contractual rewards. For major contributors, manufacturers may even provide delivery vehicles for free use, with the manufacturer retaining ownership and the customer having usage rights. This ranking method introduces a 'horse race' system, turning customer competition into an honor battle, achieving the manufacturer's true market promotion goals. On the other hand, for well-performing customers, there must be some control measures to prevent them from becoming too demanding and dominating the manufacturer.
16. Rebate Combination Rewards To control customers, prevent sales risks, combat cross-region dumping, and ensure compliance with agreements, manufacturers implement combined rebates: explicit rebates, implicit rebates, process rebates, category sales rebates, and overall sales rebates. Explicit rebates refer to clear reward policies; implicit rebates are vague on rewards but clear on work requirements. Process rebates are rewards for various details in the sales process, such as distribution rate, market share, reasonable inventory rate, payment collection rate, compliance with price policies, and cooperation with new product promotions. These indicators can be linked to rebate policies. Category sales rebates are incentives for channels to strongly push a specific category. For example, channels prefer to sell popular categories; without incentives, other products may underperform. For instance, a distillery's rebate policy for distributors: full compliance with price policy, 2% rebate; exceeding sales targets, 3% rebate; no cross-region dumping, 2% rebate; active cooperation with market promotion, 3% rebate; achieving distribution rate, 2% rebate; etc. Under such policies, distributors clearly understand that only genuine cooperation with the manufacturer yields maximum profit. When redeeming rebates, use more physical items and less cash. Physical rebates include daily necessities, overseas travel, computers, transportation tools, or training that help improve channel performance.
17. Seasonal Rewards Seasonal incentives are used to encourage distributors or core large customers to stock up during off-seasons, helping the manufacturer seize market share or sales and prevent competitors from taking advantage. In addition to regular promotional policies, manufacturers give off-season storage rewards, with the magnitude depending on the season. Off-season rewards are larger and decrease as peak season approaches, encouraging distributors and core accounts to stock up more in off-seasons.
18. Payment Speed Rewards Core large accounts usually purchase large quantities and sell well, but they may owe payments. To encourage proactive and timely payment, manufacturers may introduce payment speed policies at certain points. The shorter the payment time, the greater the reward. For example, if payment is made in cash within 10 days of the transaction, a 3% reward is given; if payment is delayed beyond 10 days, interest is charged in addition to normal settlement. This encourages terminals to pay promptly. In the home appliance industry, many companies incentivize distributors to prepay by offering high rewards and interest rates higher than bank rates based on payment date.
19. Payment Method Rewards Payment method rewards refer to deferred payment, installment payment, or batch payment. Customers can take goods first, with the manufacturer granting a certain credit limit, and pay later, in installments, or per batch. This accommodates cash flow difficulties for some merchants and also attracts more distributors and large customers to actively stock and sell.
20. Customer Plaque Rewards For distributors or terminal customers with strong sales strength and large volumes, to increase loyalty and a sense of honor, manufacturers give not only material rewards but also visible honors, such as titles like 'XX Year Sales Champion,' 'XX Year Market Development Champion,' or 'XX Year Market Growth Champion.' For customers, both material and spiritual rewards are needed. Awarding such plaques recognizes their sales performance and also stimulates other customers. Leveraging customers' competitive nature is an effective incentive.
21. Platform Upgrade Rewards Many manufacturers, to deepen cooperation with downstream customers, give customers shares to enhance their sense of ownership and form integrated alliances; or upgrade second-tier distributors to regional distributors; or upgrade small regional distributors to cross-regional distributors. For example, Gree allows distributors to take equity or controlling stakes to jointly establish sales companies, making distributors partners and forming a manufacturer-distributor alliance. Another example: Hengshui Laobaigan gives core terminal customers a certain proportion of shares, establishes a children's education fund, etc., forming a joint sales system that deeply binds downstream customers.
Source: Baijiu Distributors College Tips will be paid 400-2000 yuan once adopted.