Reminder: Click the blue text above to follow 'FMCG Distributor Professional Consulting' for more marketing and distributor internal management insights.

A common scenario: the boss assigns a new product distribution task, the salesperson goes out for a day, visits ten stores, finds it difficult, and reports back: "Supervisor, it's not moving!" The supervisor passes it up: "Manager, it's not moving!" ... Level by level, everyone thinks the product is "not moving," and the feedback reaches headquarters, where leaders scratch their heads and start adding distribution policies...

New products are certainly hard to distribute. As a salesperson, "don't give up after one setback"—don't be so quick to say "it's not moving." The model and formation for terminal selling is "engaging with the regular," but beyond the regular, there are some "accelerating levers" that win by surprise. Only after using all these regular and surprise methods and levers should you say "it's not moving!"

Accelerating Lever Direction 1: Distributor/Dealer Management Levers

Have you ever seen this scenario?

There's a terminal that the manufacturer's salesperson has visited eight times, but this terminal is like an ironclad nut that can't be cracked. The distributor goes, gives a nod, and says, "Sis, this is my product." The terminal owner exclaims, "Oh, Brother Zhang, why didn't you say so earlier? Come on, unload two cases!"

Have you seen a distributor acting like an old-timer and "forcing a sale" at the terminal? The terminal just says, "This drink might not sell well." The old lady distributor "flies into a rage": "Not sell well? I've been selling goods here for decades, don't I know what sells? Cut the nonsense, unload ten cases first. I'll drink two cans right now. If you can't sell them next month, I'll drink them all! I've been selling drinks for decades, don't I know what sells? Unload!"

Who is better at distributing new products: the manufacturer's staff or the distributor? Definitely the distributor! Why? The distributor's terminal relationships are something the manufacturer's staff can't match. The manufacturer's salesperson may be more professional, but their interface with the terminal is limited. Visiting once a week just to take orders, not delivering, not offering credit, and even promotional display prizes are delivered by the distributor. The distributor's relationship with the terminal is built on daily deliveries over a decade, kinship and connections, holiday gift exchanges and drinking together, years of solving problems like damaged goods, and even credit sales and financial support.

What to do when the manufacturer's staff can't distribute new products? Activate the distributor's power.

Terminal Distribution Accelerating Lever 1: Ride on the Distributor's Delivery Truck to Distribute:

New product not moving? Not enough manufacturer staff? Use all the methods mentioned earlier—"ice-breaking model," "profit story," "product appearance analysis," "terminal selling combination punches"—and do your best. Still not moving? Here's a simple solution: have the manufacturer's salesperson ride on the distributor's delivery truck to distribute. The distributor's staff have relationships but aren't professional, and their trucks carry many products, so they may not push your new product. When the manufacturer's salesperson has exhausted their own efforts, get on the distributor's truck, be sweet-talking and quick-handed, buy a pack of cigarettes in the morning, treat them to lunch at noon, and demonstrate by personally distributing. Motivate the distributor's driver and leverage their relationships—you'll definitely distribute to many more stores.

Terminal Distribution Accelerating Lever 2: Modify the Distributor's Staff Daily Assessment:

New product not moving? Ride on the distributor's truck? Modify the distributor's staff assessment: Distributor bosses aren't really selling goods; most have "stopped going out"—they stay home as bosses and listen to reports. The real sellers are the distributor's salespeople. Go along on the distributor's truck to deliver and you'll see why new products don't sell. Most distributors use vehicle sales visits, combining driver and salesperson. These people aren't selling; they're delivering. They only visit old stores, not new ones, and only sell old products, not new ones—since they're commission-based, opening new stores and selling new products is much harder than visiting old stores and selling old products.

Employees always do what you assess, never what you hope. If you want them to sell new products, you must work on the assessment.

Case:

Positive incentive: Increase commission for new product distribution, decrease for old products. New product commission: 2 yuan per case; old product: 1 yuan per case (most distributor salespeople are money-driven, but when they try, they find new products hard to sell and the 2 yuan hard to earn, so they go back to old products. Thus, positive incentives alone aren't enough; negative incentives must be combined).

Negative incentive: Set a fixed task for each salesperson: at least 200 cases per month. If they fail to meet this basic new product task, deduct from old product commission.

Period management: For example, during new product distribution, each vehicle must distribute to at least 3 new product outlets per day. For each outlet over 3, reward 5 yuan that evening; for each under 3, deduct 5 yuan. Weekly new product distribution ranking: first place gets 50 yuan, last place pays 50 yuan.

Process management: For example, during new product distribution, each new product outlet must open cases and put on shelves, following the "121" standard: one product, two facings, one poster. Any outlet failing inspection will have its new product distribution reward withdrawn.

Terminal Distribution Accelerating Lever 3: Special Project Reward for Distributor Staff New Product Distribution

New product not moving? It's easy to get on the distributor's truck, but intervening in the distributor's staff daily assessment is difficult. Why would the distributor let you do that? You need to help him make small improvements in staff assessment and management again and again, letting him taste the benefits each time, until he says, "Brother, you're good at this, why don't you handle it for me?" When you can fully intervene in the distributor's staff assessment, you truly control the distributor. In comparison, giving the distributor's staff short-term new product distribution reward projects is easier.

Case:

Manufacturer's salesperson: "Boss, Mr. Li came to inspect the market today and was very dissatisfied. He said my new product distribution is poor and gave me an ultimatum: this month's new product sales must be 600 cases, and if I don't sell 1,200 next month, I'm fired. I invited him to lunch, but he left with a black face without eating."

Distributor Boss Zhang: "He didn't even eat?! Ah, then I'll help you order some new products, but last month's new product points were all covered, and this new product really doesn't sell well."

Manufacturer's salesperson: "Brother Zhang, if you order and put it in the warehouse and it doesn't sell, it's still my problem. Besides, Mr. Li said he'll check my new product distribution rate next month! Actually, it's not that the new product doesn't sell, nor that all points are covered. I've counted: excluding the urban-rural fringe, there are still over 300 stores in the city that haven't been covered. Here's the list of blank stores for the new product."

Distributor Boss Zhang: "Ah, there are still over 300 not covered? Damn it, these bastards (referring to his drivers and salespeople) said they'd covered them all. I'll scold them at tomorrow's meeting."

Manufacturer's salesperson: "Don't scold them; if you do, I can't work here anymore. How about this: next month, we'll run a joint activity. I'll give you the list of 300 stores not covered. Next month, both your people and mine will target these 300 stores. We'll provide the money for rewards: for each store covered, a cash reward of 5 yuan. Report the list that evening, and after I verify, I'll issue the reward the next morning. You keep 2 yuan, and give 3 yuan to the brothers, okay?"

Distributor Boss Zhang: "Nonsense, what would I do with your 2 yuan? Distributing new products also increases my outlets and profits. You underestimate me. How about this: I'll add 3 yuan per store. Next month, for each new product store covered, give 8 yuan per store. You pay 5, I pay 3. How's that?"

Manufacturer's salesperson: "Great, you're generous. It's settled. I'll have a meeting with your drivers this afternoon."

Imagine: at the meeting with the distributor's drivers, show the list of stores not covered, tell them next month everyone does their best to distribute. For each store covered, reward 8 yuan, settled that day and paid the next day. Do you think these drivers will be motivated? Once they're all mobilized, won't distribution speed up? When pushed, they can use their relationships shamelessly, offer credit, or use the product line to drive sales (like using white liquor to bring beer, or instant noodles to bring other products). Once they really get moving on new products, they'll definitely be better than the manufacturer.

Terminal Distribution Accelerating Lever 4: Invite the Distributor Boss to Join Distribution

New product not moving? You can ride on the distributor's truck, intervene in staff assessment, and also have the distributor boss personally help you distribute. When the distributor asks for fees and support, I'll say "Yes, but..." and behind the "but" is the support I want, such as the distributor adding staff and vehicles for new product distribution, the distributor ordering new products, or the distributor implementing special new product assessments for staff. In addition, there's a very effective condition: "I require us to sign an agreement: you, as the boss, must personally join me on the truck for three days of distribution during the new product launch!" This condition often surprises the distributor, but they easily accept it—it's not a big deal. Why do this? As mentioned, bosses have long stopped going out. This time, the manufacturer's manager pulls the distributor boss onto the truck for distribution, with three benefits:

First, "borrowing a boat to cross the sea": with the distributor boss present, many terminals give face, making distribution easier.

Second, "demonstration effect": in front of the distributor boss, the manufacturer's manager uses all their skills to distribute. The boss sees that although the product is new, it can sell if you try, and will go back and set hard targets for their drivers and salespeople.

Third, "borrowing power": the distributor's drivers and salespeople will be shocked: "This old guy has stayed home for years, but now he's personally coming out to distribute for a new product!" Seeing the boss's emphasis on this product, they'll naturally take it seriously.

Terminal Distribution Accelerating Lever 5: Develop the Distributor's Credit Sales Capability

New product not moving? Use the distributor's relationships to ride on his truck, intervene in staff assessment to mobilize his employees, sign an agreement to get the boss to help, and also encourage the distributor to offer credit sales, using his "money" to distribute. For target outlets, let the distributor offer credit. Ways to persuade the distributor to offer credit:

  1. Provocation: "You're such a big boss, can't you even offer credit for a few cases? If word gets out, terminals will look down on you. Besides, these are local stores; people can't run away. What are you afraid of?"

  2. Industry analysis: "In this business, you must offer credit to some stores. It's an industry rule. Hotels take goods on monthly settlement, not cash. If you don't offer credit, others will."

  3. Coercion: "The company won't stop doing the restaurant channel just because you don't offer credit. They'll definitely open a restaurant distributor, and that distributor might become a full distributor soon."

  4. Enticement: "If you offer credit of 100 yuan per store, for 100 stores that's 10,000 yuan. Set aside 30% for bad debts—that's enough, right? How much would you lose? 3,000 yuan! But don't forget, you also earn 2,000 yuan from selling 10,000 yuan worth. So you lose 1,000 yuan net! We'll compensate you for that 1,000 yuan! If you offer credit to 100 stores, we'll invest 1,000 yuan in display fees (so the factory invests 1,000 yuan in market expenses, and the distributor sells 10,000 yuan on credit)."

  5. Specific methods: For example, give each driver/salesperson a credit limit of 1,500 yuan, with a maximum of 100 yuan per store. Drivers get 10 yuan reward per store for cash sales, but only 3 yuan for credit sales. Credit sales are settled on a rolling basis (the second order's delivery collects the first order's payment). Credit target stores can only be old customers. Then set up an accounts receivable board, track abnormal accounts daily...

Terminal Distribution Accelerating Lever 6: Use the Distributor's Product Line to Drive Sales

New product not moving? You can ride on the distributor's truck to borrow his relationships, intervene in staff assessment to mobilize his employees, get the distributor boss on the truck, encourage credit sales to use his "money," and also use the distributor's "products" to distribute. You can use the distributor's strong first-line products to bring in our new product. For example, if the distributor also handles Coca-Cola and Wanglaoji, we can persuade him to create a purchase reward bundle: "Two cases of Coca-Cola, one case of Wanglaoji, and one case of our new product—four cases as a bundle. For each bundle purchased, reward one case of Coca-Cola." Terminals will buy the bundle for the sake of Wanglaoji and Coca-Cola, and their high distribution rates will drive our new product's distribution.

Note: This combination bundle purchase reward policy must be paired with "combination display." Place our new product, Wanglaoji, and Coca-Cola (the four-case bundle) in a prominent position at the storefront. If displayed for a month, reward another case of Wanglaoji. The combination purchase bundle plus combination display reward can instantly increase our new product's distribution rate and significantly improve its display for a month. As long as the product isn't too bad, it will definitely move after a month!

Special note: The combination purchase bundle is absolutely not a buy-one-get-one-free. Don't make it "buy ten cases of Coca-Cola, get one case of our new product free." That would kill the new product: not only would it not be displayed, but the store owner would think it's a freebie, not worth pushing, and would discount it if it doesn't sell.

Terminal Distribution Accelerating Lever 7: Organize the Distributor Structure

New product not moving? First consider leveraging the distributor's relationships, the boss's face and deterrence, the staff's capabilities, the distributor's financial strength, and product line driving ability. Still can't do it? Some points just can't be covered? Maybe the distributor doesn't have the capability or network for these outlets, or even if we get orders, the goods can't be delivered—for example, the distributor lacks general taxpayer status and can't supply supermarkets, or lacks entry permits to deliver to universities. What to do? Structure determines function. Either force the distributor to change (too hard and slow), replace the distributor (too costly), or set up sub-distributors.

Why can't the manufacturer cover many outlets, but the distributor can? Because the manufacturer lacks relationships, while the distributor has visited countless times. Similarly, why can't the distributor cover some outlets? Because the distributor hasn't visited them before (these are enemy-occupied areas). But these outlets always have a regular supplier. Find out who delivers to them—they have established visits and relationships. Make this person our sub-distributor. Not only give them product sales profit, but also "buy points": list the outlets they need to cover and give them opening rewards for new product target outlets. This is much more effective than doing it ourselves. Finding and mobilizing a sub-distributor is like peacefully liberating a region.

Accelerating Lever Direction 2: Improve Visit Efficiency

A common sight: some companies blindly copy Kangshifu and Coca-Cola's terminal route visit model, compile terminal customer data, create route manuals, and have salespeople visit 30-40 terminals daily on fixed routes, repeating weekly. After this "learning to walk in Handan," they find this model yields few orders and little sales, wastes resources, and eventually fails. Why?

  1. Wrong target store selection, can't close deals: When the brand is weak, visiting in route order has a very low close rate. Salespeople face constant rejection, get few orders a day, and become discouraged. Fewer orders lead to laziness and slackness. Over time, this negative cycle can even collapse team management, increase turnover, and lead to fake reports...

  2. Wrong visit frequency, can't meet outlet requirements: Different industries require different visit frequencies. Beverages and instant noodles are fast-moving consumer goods; visiting weekly gets orders. Daily chemical products may not sell as fast (a store owner might take a month to sell a case of conditioner or hand cream). So revisit the visit cycle based on your industry's flow rate. Similarly, large and small stores have different consumption rates: a one-size-fits-all weekly visit may cause some stores to run out of stock, while others get no orders even after eight visits.

  3. Rigid visit model, can't meet market needs: Periodic route visits are a market tool that must fit the market's stage-specific needs. Otherwise, it becomes a burden. For example, if competitors are running big promotions in development zones and urban-rural fringes, and you're still calmly visiting city terminals once a week, that's dogmatic. Terminal visits are disconnected from market priorities, hindering distribution progress.

  4. Logistics system problems: In pre-sell visits (order first, deliver later), whether the next day's orders are delivered on time directly affects relationships and the salesperson's ability to get orders next time. In vehicle sales visits, the efficiency of on-site picking, unloading, and return loading directly affects how many stores can be covered in a day.

  5. Management issues: A large terminal sales force needs a mature, detailed assessment, inspection, and management system. Building this system is not just copying a few forms.

How to avoid these pitfalls? This article first explains new distribution accelerating levers from the perspective of improving visit efficiency:

Terminal Distribution Accelerating Lever 8: Find Opportunity Stores:

Case:

Jianlibao has historically had over-concentrated product items (many new products launched, but few survived), and has experienced business turmoil, causing a severe decline in terminal distribution. Today, if Jianlibao wants to distribute new products, visiting door-to-door in the traditional model has little hope of closing deals (some terminals might even think Jianlibao has gone bankrupt). But Jianlibao is now managed by Uni-President, performance has stopped declining and rebounded, with sales of over 1 billion yuan in 2010. This shows that many terminals in China still stubbornly sell Jianlibao! Do these terminals that still sell Jianlibao have affection and trust for the brand? Are there consumers in the surrounding trade area who are still loyal Jianlibao customers? So, for Jianlibao's new product distribution, is it easier to distribute to unfamiliar stores or to stores that already carry Jianlibao? Of course, it's the stores that already carry Jianlibao! These are Jianlibao's "opportunity stores." Only by targeting these "opportunity stores" can distribution close deals!

New product launches are always like this: out of 100 stores, a few sell well. So sales supervisors should identify these fast-moving outlets during new product distribution, walk through them, chat with the owners, observe the store's characteristics, and see what methods they use for product, display, promotion, and pricing... As long as you look, ask, and feel, you'll find patterns. Then it dawns on you: "I see, stores near schools can sell this product," "Ah, the stores that don't sell are too low-end; we need to focus on high-end stores," "I see, locals prefer local brands, so my foreign product can't distribute initially. But stores near tourist attractions can sell it because the customers are outsiders," "Ha, I found the trick: first have salespeople walk through terminals, build customer data, and list stores with unresolved issues, complaints, or customer grievances about competitors—these stores are easier to break into," "Ha, I see: first focus on urban-rural fringes. Competitors are strong in the city, but their distributors have poor delivery and service there."

Terminal Distribution Accelerating Lever 9: Concentrated Visits to Opportunity Stores:

In areas where brand appeal isn't strong, don't follow the traditional weekly route visits—weak brands rarely get orders from broad visits. First, screen your opportunity stores, arrange concentrated visits by salespeople, design promotional policies for these stores, take them down, and establish a "revolutionary base" for the new product. After the new product is distributed, moves, and "gains a foothold" in these outlets, then expand the visit scope.

Terminal Distribution Accelerating Lever 10: Free Graded Visit Model:

This is the most extensive model: assign visit areas to salespeople, establish basic customer data, then set order tasks and let them decide daily which customers to visit (salespeople know best which stores need more visits and which need fewer). Note: you must require a minimum visit frequency for all terminals (e.g., you can decide which large accounts need more visits and which small ones fewer, but all terminal customers must be visited at least once a month; otherwise, it's a missed visit and will be penalized). This method suits small and medium enterprises and distributors with loose management. Note that this model gives employees high daily autonomy—meaning high variability. High variability makes employees prone to slacking and skipping work. So require employees to visit a fixed number of stores daily (e.g., choose 30 stores to visit) and record details. Supervisors should spot-check workloads to prevent missed visits, absenteeism, and fake reports.

Terminal Distribution Accelerating Lever 11: 5+1 Graded Visit Model:

Six days of visits per week: 5 days for regular route visits (e.g., visit 30 customers in route order daily), and Saturday for a second visit to opportunity outlets, large stores, or key stores. For example, stores where competitors have distributed new products need high-frequency visits—to squeeze out their displays, increase our terminal relationships and sell-through opportunities. Our new product distribution stores need high-frequency visits—to increase displays, execute promotions, and boost sell-through. Stores with display agreements, exclusive agreements, or promotion agreements need high-frequency visits to maintain agreement execution.

Terminal Distribution Accelerating Lever 12: 20+10 Graded Visit Model:

Classify terminals into A, B, C grades based on area, sales, etc. A-grade stores are large stores; it's best to separate them and create a dedicated visit route manual, with a specialist visiting every two days (the quality requirements for salespeople covering KA supermarkets and large restaurants differ from those for small stores; it's best to separate them). For B and C stores, create a graded terminal visit route manual. For example, a salesperson visits 30 stores daily: 20 C-class stores visited once a week, and 10 B-class stores visited twice a week—meaning B-class store names might appear twice in the same route manual. This method is essentially similar to the 5+1 model, except 5+1 concentrates repeat visits on one day, while 20+10 pulls out A stores for dedicated visits, then B stores get a regular visit plus a repeat visit on another day of the week, and C stores are visited once a week on the route.

Terminal Distribution Accelerating Lever 13: Optimize Terminal Visit Routes:

Building terminal visit basic data is to enable salespeople to visit terminal customers systematically, continuously turning blank stores into stocked stores, single-product stores, multi-product stores, and model stores. Supervisors can use basic data to analyze blank stores, single-product stores, and other terminal structure indicators, judge market space, and set targeted sales and distribution goals, thereby locking the target outlet list. However, sometimes improper use of terminal route data can hinder distribution performance, so continuous optimization is needed:

  1. Update route manuals: Each year, 20-30% of restaurants and small supermarkets close and new ones open. Failing to update terminal customer data in time wastes terminal resources and leads to incomplete visits. It also causes idle work (according to the route manual, you should visit 30 stores today, but due to demolition, 9 stores on that route have closed). So salespeople should note new openings in their area and delete old ones. Supervisors should reward salespeople for reporting new openings and penalize them for missing them.

  2. Catch seasonal outlets: Fish restaurants by reservoirs, mountain farm stays, and seaside tourist restaurants and supermarkets are typical seasonal outlets, often operating from May to October and closing in winter. Also, school stores close during holidays (but internet cafes get busy). Additionally, various city events like kite festivals, beer festivals, Canton Fair, Nadam Fair, dragon boat festivals, and even railway construction or city relocation boost a batch of outlets. These are seasonal and event outlets. They have no sales normally but see a surge in a short period. Observant salespeople and supervisors note the patterns of these local outlets and build customer data in advance. During the "season" (e.g., in April when the weather warms and seaside tourist restaurants are about to open), terminals have a huge demand for stock, and competitors often haven't reacted yet. If you're the first to visit these stores, sales will naturally be unstoppable.

  3. Temporarily stop regular route visits and concentrate on key areas: Weekly route visits are the regular method, the "orthodox" approach. But what about unusual situations? For example, competitors are aggressively distributing to attack our market? Need to push stock before Chinese New Year? Need to concentrate on activities to redeem last year's display or exclusive agreements at terminals? Then you must temporarily stop route visits and concentrate on visiting competitor distribution outlets to counterattack, concentrate on following trucks to push stock, and concentrate on redeeming agreement rewards as soon as possible...

Terminal Distribution Accelerating Lever 14: Hit the Visit Time Gap:

Even a tiger dozes off; when it does, you can snatch food from its mouth.

Case:

During the New Year, most companies give 7 days off. What do they do on the 8th day? Many hold annual meetings, group拜年 meetings, training, and assign annual tasks. Immersed in holiday joy, they usually don't hit the market until after the Lantern Festival (15th). Then they drink with distributors, and before you know it, it's the 20th of the first lunar month. Think about it: in the north, there's the tradition of "breaking the fifth" (opening business on the 5th). Many terminals open with firecrackers on the 5th. Do they have money? They're holding a pile of cash from selling New Year goods. Do they have stock? They sold out during the holiday. They have money but no goods, and competitors aren't working yet. This is the terminal's hunger period for stocking. It's like money and fools. For salespeople, it's heaven! I've personally experienced this: I require my consulting companies to start work on the 4th (and require distributors' staff to open on the 5th). On the 5th, I and company leaders personally lead distribution. It's great! It's not selling; it's unloading! Customers who usually take one or two cases now dare to unload ten. The first year I felt a bit guilty, thinking it was cruel to employees. But that month, our performance nearly doubled year-on-year, without spending an extra cent on promotions. At month-end, we held a celebration, gave bonuses, paid triple overtime, and selected performance champions. Employees took compensatory leave in the following months. Morale was high, and it didn't affect spirits at all. I've used this method for four years now, but competitors' bigwigs are still the same during the New Year—they haven't woken up yet.

Terminal Distribution Accelerating Lever 15: Improve Vehicle Distribution and Loading/Unloading Efficiency

This method suits vehicle distribution situations:

  1. Save empty-run time: Before departure, call major customers and those whose bosses are often away, inform them of our distribution policy and approximate arrival time, ask the boss to wait, and preferably prepare the payment to avoid empty runs.

  2. Save on-site picking time: At the distribution site, arrange goods in the vehicle by category neatly (e.g., some daily chemical distributors weld shelves in the truck to stack products for easy picking), saving salespeople time searching for goods.

  3. Save return loading time: For long-distance vehicle distribution (e.g., to townships), if a certain item's load is insufficient, it affects distribution results. Returning to load wastes too much time. Use several small box trucks for distribution ahead, with a large truck following as a transfer warehouse to save return loading time.

Terminal Distribution Accelerating Lever 16: Team Distribution

A single salesperson may be refused by terminals. For key routes and stores, switch to team distribution: 3-5 people on a vehicle. Upon arrival, one person shows samples, sells, delivers, collects money, and keeps accounts; one helps the owner organize shelves and displays; one puts up posters and does visual merchandising; one outside calls out to deliver to other stores; one watches the vehicle and goods... With strength in numbers, distribution results are often far better than solo efforts.

Terminal Distribution Accelerating Lever 17: Improve Order Delivery Rate

  1. Order standards: Especially at the start of route visits (before the distributor's order delivery process is smoothed out), first clarify with the distributor the standards for valid orders, such as whether orders must exceed one case, and whether the distributor agrees to split-case delivery.

  2. Clear addresses: On the first day of taking orders, salespeople must write the customer's address clearly, even with a sketch, and submit to the supervisor for review before passing to the distributor for delivery.

  3. Abnormal delivery feedback: When the distributor's driver delivers, for abnormal orders (store not found or store refusing goods), report to the supervisor. After verification, the supervisor tells the driver whether to cancel or redeliver.

  4. Salesperson tracks delivery rate: During new product distribution, require salespeople to call on the third day after taking an order to check if it was delivered. If not, immediately report to the supervisor to track why the distributor's driver didn't deliver.

  5. Weekly meeting review: Supervisors meet weekly with the distributor and drivers to review orders not delivered on time, confront both sides, explain reasons, and decide whether to cancel or redeliver. Define responsibility and penalize the distributor's delivery subsidy or deduct rebates as agreed.

Accelerating Lever Direction 3: Promotion & Management Levers

Terminal Distribution Accelerating Lever 18: Eliminate Worries, Use Lower Distribution Thresholds and Return/Exchange Policies

Use split-case distribution and mixed-case distribution to lower the terminal's purchase threshold, and offer return/exchange promises to eliminate terminal worries. These are conventional methods, but they definitely reduce distribution difficulty and improve performance.

Terminal Distribution Accelerating Lever 19: Amplify the "Mass Base," Use Account Opening Rate Policies to Improve Distribution:

Kangshifu's traditional approach: To start terminal visit mode in a new market, the first month is spent compiling terminal customer data, recording complaints, and handling leftover issues. In the second month's first week, use mature products for terminal distribution policies. For example, "Kangshifu Zhenpin Hongshao Niurou instant noodles: buy one case, get four packs free, limited to one case per store." Think about it: does Kangshifu Zhenpin Hongshao Niurou, a mature product, need "buy one get four free" to distribute? Obviously not. So why launch this promotion? To increase the account opening rate (account opening rate = customers with transactions / total customers). When a terminal salesperson faces a new customer, if the first visit gets no order, the second gets no order, often the third visit the salesperson doesn't want to go. Even if they go, it's just a formality, not serious selling. The result: a salesperson claims to visit 300 terminals, 10 salespeople visit 3,000, but after six months, statistics show only 1,800 of those 3,000 actually bought from the salesperson. The other 1,200 never paid attention! That means we built data for 3,000 terminals, but actually only cover 1,800 effectively, with 1,200 being stubborn non-buyers! What to do? In the first month of formal terminal visits, use a mature product for a promotion policy, not to sell, but to "deliver milk"—let salespeople visit terminals with good news, quickly make the first transaction with as many terminals as possible, and build real relationships. Increase the account opening rate, lay the "mass base," and then distributing new products becomes much easier.

Terminal Distribution Accelerating Lever 20: Highlight Advantages for Distribution, Seize Opportunity Products, and Distribute Opportunity Products in Series:

(1) Highlight advantageous products: Uni-President instant noodles once lost a strategic move to Kangshifu. Kangshifu had the big flavor "Hongshao Niurou" early on, while Uni-President only crystallized its advantageous flavor "Laotan Suancai" in recent years. Uni-President's Laotan Suancai noodles have good consumer response, and Kangshifu doesn't have this flavor, so it's Uni-President's differentiated advantage. What should Uni-President's salespeople do? Maximize the distribution rate of the advantageous product, try to distribute Laotan Suancai first in every terminal, and place it in the best facing and position. Maximize sales opportunities for advantageous products—not only to increase sales but also to quickly raise the account opening rate and build terminal relationships, promoting other new product distribution.

(2) Highlight opportunity products: What is an opportunity product? As the name implies, a product with sales opportunities. How to find opportunity products? First, look at your own products: your advantageous products are certainly opportunity products. Second, look at competitors: which of their products sell well locally? That tells you what type of opportunity product is needed. Third, look at local consumer preferences: that also gives clues. Finally, look at channels: different channels need different products. For example, supermarkets need "products that look discounted," townships need low-priced and "looks like a deal" products, Metro needs case-packed products, and group buying needs products with vague pricing (to facilitate gift-giving). Look at your products, competitors, consumer preferences, and channel needs to find opportunity products with sales potential. Distribute these opportunity products—if you choose the right product, distribution naturally speeds up!

(3) Opportunity products in series: Opportunity and advantageous products distribute fast and move quickly. Next, think about making opportunity products into a series, with multiple specifications and channels. This is also a good way to leverage strength to speed up distribution. For example, if Fumando instant noodles' Hongshao Niurou flavor already sells well locally, to improve performance, is it faster to launch a new Mianba series or to concentrate on launching a new Fumando flavor? Of course, launching a new flavor, specification, or item under an old brand moves faster! Similarly, if Product A is already popular in hotels, is it faster to distribute new Product B in the circulation channel, or to slightly modify A's packaging and create a circulation version of A? Of course, A's circulation version. Opportunity products are already recognized by consumers; maximize their sales opportunities, distribute in multiple channels and specifications, and sell in series. This is another four-ounce-moving-a-thousand-pound method.

Terminal Distribution Accelerating Lever 21: Distribution Policy Plus Sell-Through Policy

As long as the product sells at the terminal, you won't worry about terminals not wanting it. So in the terminal distribution policy, also include sell-through policies to promote sales and speed up distribution. Sell-through policies generally include:

  1. Product display standards and display rewards
  2. Safety stock standards
  3. Products clearly priced according to company guidance, correcting abnormal prices
  4. Consumer promotion execution standards and rewards, such as gift displays and promotional poster hanging
  5. Exclusivity policies, such as no other products on special during our special period, and model store reward recipients must promise not to carry specified competitors or allow special displays for competitors
  6. Staff rewards, such as bottle opening fees and sales staff rewards

Case

For new product distribution, offer "buy 10 cases, get 6 free" to terminals, with a maximum purchase of 40 cases. Simultaneously, run a "buy one, get one free" consumer promotion. The company promises to exchange if it doesn't sell within two months, but requires terminals to cooperate with the following:

  1. Cash payment
  2. Open cases and display 4 facings in-store, post one product poster and one "buy one, get one" activity poster in prominent positions, and stack at least 10 cases outside
  3. Maintain safety stock; replenish immediately if below 10 cases
  4. Clearly price at 3 yuan per bottle
  5. Exchange "buy one, get one" prizes for consumers promptly and collect caps

The terminal's purchase reward (the free cases) will not be issued immediately; company staff will visit to verify. If the terminal meets all the above conditions, the company will redeem the reward two months after the terminal's initial purchase. Otherwise, the reward is forfeited.

Terminal Distribution Accelerating Lever 23: Use the Strong to Drive the Weak: Combination Purchase and Display Policy:

Suppose there are 1,000 stores locally. Product A has an 80% distribution rate, Product B has 20%. That means 800 stores carry A, and 200 carry B. There's a 600-store gap! Understand? A can drive B (note: absolutely not "buy A, get B free," which would kill B—terminals won't push products they didn't pay for, and if it doesn't sell, they'll slash prices). The fastest method is a purchase reward bundle: "Three cases of A plus one case of B as a bundle. For each bundle purchased, reward one case of A." How many stores would be interested? 800 stores—800 stores would buy the bundle "for A's sake." B's distribution rate could suddenly jump, potentially increasing B's store count from 200 to 600, 700, or even close to 800 in a month. Next, promote B's sell-through, so combine purchase with display. The complete policy: "Three cases of A plus one case of B as a bundle. For each bundle purchased, reward one case of A, but the reward is not issued immediately. The terminal must display one case of A and one case of B in a designated prominent position, maintain safety stock, and replenish immediately if below. At month-end, we'll add another case of A as a reward, issued after inspection." The combination purchase policy paired with combination display can use the strong to drive the weak, quickly raising the weak product's distribution rate. More importantly, the combination display policy greatly improves B's display performance—every store places B in the best position, alongside best-selling A. Can B not sell?

Similarly, you can use A's consumer promotion to drive B's distribution. For example, A runs a "buy one, get one" promotion where the prize is a bottle of B. To redeem prizes for A, terminals must have B in stock, which also speeds up B's distribution.

Terminal Distribution Accelerating Lever 24: Optimize Distribution Policies

(1) Mobilize the masses, full-channel promotion policy:

Many hands make light work. If new product distribution is slow, see if you can unite a united front to speed it up—don't only give benefits to terminals. If any link among second-tier wholesalers, distributors, or terminals is neglected, it creates obstacles. For example, give distributors and second-tier wholesalers a full-channel "buy one case, get two packs" policy, requiring them to pass it to terminals. But if they don't get extra benefits for passing on the bonus, they lack motivation, slowing distribution. Similarly, with a "buy one, get one" bottle cap promotion, if the small store owner collects 10 caps from consumers and exchanges 10 bottles, and the manufacturer also exchanges 10 bottles, the owner makes no profit, finds it troublesome, and makes excuses not to exchange. When distribution is slow, change the policy to a full-channel promotion: for example, "Distributors and second-tier wholesalers get a full-channel 'buy one case, get two packs,' requiring them to pass it to terminals. Additionally, second-tier wholesalers get an extra reward: buy 50 cases, get 1 case free." Or, "For the 'buy one, get one' activity, if the terminal collects 10 caps, the company exchanges 11 bottles; the extra bottle is the terminal's handling fee."

(2) Use "targeted gifts for different channels" for distribution:

For new product terminal distribution, is "buy one case of beer, get a 500g bag of salt" okay? Hotels accept it—they can use salt for cooking. Grandma shops and small supermarkets accept it—they can sell salt. But what about "famous tobacco and liquor specialty stores"? What would they do with so much salt? When the manufacturer's manager visits the market, these store owners might exclaim in panic: "Your company can't send salt anymore! We've stocked enough salt from your beer promotions to last ten years!" Similarly, is "buy one case of beer, get a pack of laundry detergent" okay? Supermarkets and circulation channels accept it, but hotels and restaurants aren't happy—they don't need that much detergent and can't sell it. How about giving food as a gift? Everyone needs to eat: "buy beer, get rice"? Supermarkets can sell it, restaurants can use it, so everyone might be happy. But high-end hotels think your rice is low-end and don't want it. Forget it! Just give the product itself as a gift. To avoid price erosion from giving the same product, use different varieties for cross-promotion: "buy A, get B" nationwide? Not necessarily. If B doesn't sell well in that regional market, or B's grade doesn't suit that channel, problems arise. It's hard to please everyone with one policy. Different channels and terminals need different products and gifts, but we often overlook this when making a one-size-fits-all distribution policy. So adjust the policy: first clarify which channels to distribute in, then tailor distribution varieties, thresholds, gifts, and policies for different channels and store sizes.

(3) Use single-store policies and catalog marketing for distribution:

List the stubborn stores that won't accept distribution, analyze the reasons, which usually fall into these categories:

  • Unresolved issues: e.g., the store has expired products that need resolution, but the salesperson lacks resources and authority.
  • Distribution standard issues: the store isn't suitable for this product, so remove it from the catalog.
  • Visit efficiency issues: e.g., the store's peak business is at night, the boss is there in the evening, but the salesperson visits during the day; adjust the visit time.
  • Salesperson capability issues: e.g., it's a large store, and the salesperson lacks negotiation skills; the supervisor needs to handle it personally.
  • Policy strength issues: e.g., the store focuses on high-margin products and isn't interested in the current policy; adjust the distribution product, policy strength, gift format, or even tailor a single-store policy.
  • Distributor service issues: e.g., the store requires credit, but the distributor can't offer it or has insufficient delivery capability; communicate with the distributor or find a capable sub-distributor to cover this point.
  • Network relationship issues: our distributor has no relationship with this store, and the terminal has a fixed supplier; find that supplier to be our sub-distributor.
  • Brand influence issues: the company's brand and products have little influence in these stores, so they refuse; select opportunity stores for concentrated visits.

Reflect on these directions, discard stores that can't be satisfied for now, and for the rest that can be solved, create policies for each store. Assign the catalog list to salespeople, supervisors, distributors, and sub-distributors. The company provides support, sets deadlines for distribution, and uses both rewards and penalties.

(4) Separate promotion and sales for distribution:

Finally, there's a batch of large stores that salespeople can't distribute to. Why? The company supplies to the distributor at net price, and the authority for terminal display fees, credit sales, damaged goods exchange, and equipment placement isn't with the salesperson—it's all up to the distributor. Even if the terminal wants a beach umbrella, the salesperson can't decide, so naturally they can't distribute. What to do? Either adjust the policy to separate "promotion" and "sales," giving salespeople some "promotion" authority. Or make the distributor the main body for both "promotion" and "sales," assess the distributor, and force them to spend money to distribute.

(5) Real-time calibration of promotion policies to improve distribution:

Supervisors and managers work hard to craft new product distribution policies. But even with the most careful thought in the office, when tried in practice, loopholes often appear. For example, the earlier examples of giving salt or rice with beer were inappropriate, and the "buy one, get one" was good but lacked a "handling fee" for terminals, causing resistance. So throughout the distribution process, it's crucial to have bottom-up communication, quick response, and quick correction.

Adjust policies while following the truck: In the first two days of distribution, supervisors must personally follow the truck to verify policy loopholes. Salespeople should also quickly report any loopholes to supervisors for modification.

Adjust policies through data tracking: Throughout distribution, monitor distribution data daily. If numbers look abnormal, go to the front line immediately to understand why, and decide what support and adjustments are needed (e.g., change promotion intensity, persuade the distributor to offer credit, allocate funds to handle terminal leftover issues).

Adjust policies through competitor monitoring: After we start distribution, competitors may counterattack strongly, so a very effective promotion policy yesterday might become "outdated" today due to competitor counter-policies. Require employees to report competitor dynamics daily. If abnormalities are found, immediately decide whether to adjust policies to counterattack.