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When "channel wins, terminal reigns" has become a classic in the marketing world, terminal competition has become the focus of enterprise competition. Improving terminal control is an important way to enhance market competitiveness and maintain a lasting competitive advantage. Enterprises and distributors increasingly value terminal market development and construction, aiming to quickly launch products, increase coverage and share, strengthen terminal market control, and enhance competitive advantage through rapid terminal market activation.

"How many terminals suffer, how many merchants shed tears." As terminal market competition intensifies, the status of terminals is increasingly elevated. High entry fees make many merchants struggle, hating and loving terminals at the same time—cursing inwardly while smiling outwardly. Terminal distribution is an important step in developing and controlling terminals, and it is also one of the most difficult steps. So how can a fast-moving consumer product be successfully, quickly, and efficiently distributed to the market and reach the terminal directly? This article aims to analyze and elaborate on efficient product terminal distribution strategies, hoping to provide reference and guidance for enterprises in terminal marketing.

I. Follow "One Center"

That is, center on "SMART." In beer industry terminal distribution, both sales representatives and distributors are often blind, distributing just for the sake of distribution, failing to achieve the manufacturer's original intention and expected results. The "SMART" center gives terminal personnel a guideline.

  • S—Specific: The terminal distribution target in the beer industry must not be too general or vague; it must be clear: what products, what strategies, and what effects to achieve. Is it entering terminal shopping malls, hypermarkets, nightclubs, hotels, or other terminal stores?
  • M—Measurable: Through this distribution, our goal is to achieve a certain percentage of product share and coverage in the regional market. It must be quantified, with daily distribution plans and actual completion tables.
  • A—Achievable: Based on preliminary research, frontline personnel are required to complete distribution to a certain number of stores and varieties within a specified time frame (preferably one week).
  • R—Result (direction, goal): For spring beer terminal distribution, our goal is not to sell a certain amount of beer during this period, but to examine the number of retailers meeting indicators and how many terminal stores accept our products. That is the direction of our work.
  • T—Timeable: Due to the strong seasonality of the beer FMCG industry, terminal distribution requires a clear time frame, emphasizing speed beyond the norm, winning by speed; otherwise, it is easily imitated by competitors.

II. Principles of Terminal Distribution

  1. Principle of precise research: "Without investigation, there is no right to speak." Similarly, without meticulous and thorough preliminary research, terminal distribution is difficult to carry out. Research content generally includes: surveying the number of retailers in the regional market to determine the time and number of personnel for terminal distribution; obtaining competitor information to prepare terminal strategies; and obtaining contact information of terminal retailers for distribution and follow-up visits.
  2. Principle of targeting: Select the product variety and grade according to the type, scale, and class of the terminal to ensure products meet target consumer needs to the greatest extent.
  3. Principle of timeliness: After confirming terminal sales intention and signing a sales agreement, distribute to the terminal promptly to avoid delays. During the sales process, replenish terminals in a timely manner based on sales conditions to prevent stockouts that affect sales.
  4. Principle of small and frequent distribution: Currently, terminals cannot settle in cash, and credit arrears are serious. It is best not to distribute too much at once; adopt the principle of small and frequent distribution to reduce the risk of bad debts or returns.
  5. Principle of 80/20: Generally, 80% of market performance is created by 20% of terminals. Therefore, in the early stage of distribution, according to the 80/20 principle, put 80% of effort on quality terminals that account for about 20% of total terminals, i.e., focus 80% of effort and resources on first- and second-class terminals, and 20% on third-class terminals.
  6. Principle of brand driving: Choose a main product with high-quality packaging and design, higher quality, appropriate pricing and promotion to shape the brand image, achieve single-product breakthrough, and drive distribution of other beer products. In mature strategic markets, we can use the main product's brand advantage to directly distribute new products and drive new product launches.
  7. Principle of competitive products: The purpose of terminal distribution is to increase product awareness, reputation, and loyalty, but ultimately to maximize sales profit. Therefore, terminal beer distribution must consider competitors' follow-up and imitation of our products in price, packaging, and promotion, even being exploited by competitors. It also requires formulating strategic products, prices, and promotions to suppress competitors and maximize sales.

III. Forms of Distribution

  1. Carpet-style distribution: Include all catering terminals in the region as distribution targets, aiming to rapidly increase market coverage and quickly enhance brand influence. This form is common for mass-consumption liquor brands. For example, Yanjing Beer used a large fleet of tricycles to carry out carpet-style distribution in Beijing, distributing to every store, maximizing distribution rate, and rapidly increasing terminal market share.
  2. Area-style distribution: Select a certain number of influential terminals in the regional market as distribution targets, strengthen higher distribution rate, increase product exposure to consumers, and enhance brand competitiveness. This form suits mid-to-high-end brands entering the market. For example, when a mid-to-high-end white liquor product entered a prefecture-level city, it selected 80 B-level stores with convenient transportation and high foot traffic as distribution targets, quickly improving product coverage and brand influence.
  3. Point-style distribution: Select a few leader terminals in the regional market for distribution, build brand "flagship stores," and use the influence of leader terminals to drive coverage from point to area. This form suits ultra-high-end brands. For example, when a foreign wine brand entered a provincial capital, it first selected 20 hotels above 4-star level as distribution targets, quickly establishing the brand's super-aristocratic status, then shifted focus to A-level stores.
  4. Strike-style distribution: For brands with strong strength and clear competitive advantages over regional competitors, target competitors' quality terminals, stimulate with high profits and big promotions to get products into terminals, and through thoughtful service and efficient terminal promotions, quickly increase product sales, weaken competitors' advantages, and enhance own terminal influence.
  5. Avoidance-style distribution: For brands entering markets where competitors have strong brand strength and terminal control, while own brand is weaker, to prevent rapid competitor retaliation, adopt avoidance-style distribution: avoid the strong competitors' edge, start distribution from areas where competitors are weak or from blank or non-quality terminals, eventually connecting points to form areas, encircling layer by layer, and segmenting regions to enhance own terminal competitive advantage.

IV. Distribution Strategies

  1. Advertising follow-up method: This is a pull-style distribution method: advertise first (TV, outdoor, POP, etc.) before product distribution. The focus is to stimulate demand first, then use demand to drive product flow. On one hand, advertising first creates consumer awareness; because advertising effects are lagging, consumers need a certain level of exposure before purchasing, allowing time to arrange distribution. On the other hand, advertising helps control channels because channel purchases are often influenced by advertising, even a major factor. Therefore, distributing after advertising can smoothly get channels to accept products and shorten distribution time. The key is to conduct thorough market research to understand consumer and channel attitudes toward advertising; also make full preparations, completing all preliminary distribution work while advertising; third, time the distribution well, creating anticipation in the market before distributing, but not dragging too long to avoid reducing consumer interest.

    Case: Jing Brand (Jingjiu) pays great attention to terminal POP advertising investment. POP ads are placed simultaneously with the first distribution—when goods arrive, ads arrive. During the first distribution, dedicated personnel must place framed advertising pictures, small red tassels, ballpoint pens, etc., and regularly check and maintain them, using advertising to quickly enhance brand influence and promote sales.

  2. Tasting method: When new products are first launched, terminals often lack awareness and confidence, so distribution faces significant resistance. If we start by activating consumers, directly working on terminal consumers to stimulate purchase enthusiasm, once consumers are activated, retailers will anticipate good sales and proactively seek to distribute the product, greatly reducing distribution resistance.

    Case: When Jinxing Cool Beer was launched, to help terminal consumers quickly recognize and accept the product, each target terminal store was given a pack of tasting beer, but it could not be sold; it was only allowed for free tasting by consumers.

  3. Quantity reward strategy: In new product launches, using quantity reward strategies to stimulate terminal purchase enthusiasm is quite effective. Quantity rewards include cash rewards, product rewards (e.g., buy ten get one free), and physical rewards (e.g., buy 100 cases of a certain white liquor and get an air conditioner).

    Case: A beer brand, to increase terminal case sales distribution and volume, offered rewards for one-time purchases of 10, 20, 30, 40, and 50 cases, with per-case rewards of 0.5, 0.8, 1.0, 1.2, and 1.5 yuan respectively, achieving good results.

  4. Avoid-the-strong strategy: Enterprises can also adopt the strategy of avoiding the strong and attacking the weak, finding alternative paths, often greatly increasing distribution speed. For example, choose distribution timing to avoid competition. Most products have off-peak and peak seasons. When most enterprises choose the peak season for distribution, you can do the opposite and distribute in the off-season, avoiding fierce peak-season competition.

    Case: "Jinshiyuan" liquor introduced the market in the off-season, creating consumer suspense, then suddenly distributed widely before the peak season, quickly occupying markets with radiating functions like Nanjing, Yangzhou, and Wuhan. Another example: Jing Brand, facing the off-season for white liquor in summer, did the opposite, seizing the opportunity when competitors were resting, catching them off guard, achieving 70% distribution rate in B- and C-level stores, laying the foundation for winter volume. By the time winter volume increased and competitors reacted, it was too late. Jing Brand already had its own consumer base, and the brand had established its image in terminals and among consumers, making it difficult for competitors to shake its position.

  5. Point-to-area strategy: Enterprises can also adopt a key breakthrough strategy, using points to drive lines and lines to drive areas. First activate and do well with a portion of quality terminals, fully leveraging their demonstration effect—establishing "leader terminals" to build confidence among other terminals, achieving the goal of using point activation to drive area distribution. "Terminal leaders" are retailers with large scale, long operation history, and influence over other channel members. They are the main models for other retailers. When entering the market, use the prestige and influence of "terminal leaders" in the distribution field to reduce distribution resistance.

    Case: A white liquor enterprise, during distribution, established model stores to reduce resistance. In each area, according to a 10:1 ratio, it selected community retail stores with good locations and relatively large turnover, providing appropriate initial stock, complete product lines, store decoration, signboards, light boxes, and "XX Product Designated Store" bronze plaques for key support, establishing model stores. After a period, other retail stores proactively came to request distribution.

  6. Free-rider strategy: Enterprises can also use the free-rider strategy, using best-selling products to drive new product distribution. Bundle new products with best-selling products, using the original best-selling product's channel power to "carry sales," reducing new product distribution resistance and enabling new products to quickly reach channel terminals and meet consumers.

    Case: Yichuan Dukang Liquor distributed through bundling. In a regional market, it found a distributor for the mature local brand Liquan Beer as its agent. To get Yichuan Dukang quickly to terminals and shorten distribution time, it adopted bundling with Liquan Beer to reduce difficulty. Specifically, during the distribution period, purchasing one case of 28-degree or 35-degree Yichuan Dukang came with one case of Liquan Beer. Many retail store owners, based on years of cooperation with the distributor and Liquan Beer's popularity, were willing to accept this sales method. Yichuan Dukang's distribution was very successful, with terminal reach exceeding 90%; within a short time, restaurants, hotels, food stalls, and convenience stores in the city all had Yichuan Dukang on shelves.

  7. Appropriate initial stock method: In the current fiercely competitive terminal environment, for new products, especially low-awareness brands, cash distribution is very difficult. In such cases, appropriate initial stock—i.e., "top-down" (providing goods on credit for the first order)—can reduce distribution resistance and achieve higher distribution rates.

    Case: Appropriate initial stock reduces distribution resistance. A white liquor enterprise, to reduce resistance and speed up distribution, provided appropriate initial stock to selected terminals based on sales capability and credit rating: A-level stores got 2,000 yuan worth of goods, B-level 1,500 yuan, C-level 1,000 yuan. On the second distribution, previous arrears were settled; after one sales year, all arrears were settled before year-end rebates were given.

  8. Emotional communication method: Before distribution, invest emotionally in terminal managers, using relationship building to stimulate their interest and sales enthusiasm for the product and brand, making them willing to proactively distribute the manufacturer's products.

    Case: In a northern city, there was a large night market famous nationwide; beer products were long monopolized by local brands. To open this market, a beer company first organized stall owners for a free two-day sightseeing tour to a national AAAA scenic spot, including a visit to a garden-style brewery, and through in-depth product and brand selling point promotion, made the owners accept the brand from the heart, almost all agreeing to sell the brand on a cash basis. As a result, within one week, distribution rate among over 100 stalls reached 100%, and exclusive sales rate reached 95%. Another white liquor brand, to open catering terminals in a prefecture-level city, first sent invitations to 90 pre-selected target terminal managers, inviting them to a business reception hosted by the manufacturer, emphasizing that only terminal managers attending in person with business cards and ID could receive a fine gift (a password suitcase worth 200 yuan). Most terminals sent representatives. At the reception, marketing personnel fully communicated with terminal managers, conducted on-site product tasting, and explained product features and marketing policies, making managers fully realize the brand's profit potential; 40% expressed willingness to order on the spot. After the reception, marketing personnel followed up with terminal managers based on records and implemented distribution; over 80% of terminals smoothly achieved distribution. The remaining 20%, though hesitant, having received gifts, found it hard to refuse and agreed to order more or less, ultimately achieving a 98% distribution rate among target terminals.

  9. Creating a best-seller illusion method: Enterprises identify target terminal stores, send personnel to pose as customers and consume the brand's products. After repeated inquiries, the terminal store gets the impression that the product should sell well; then the marketer finds distribution easier. Some enterprises even first distribute for free, then buy back the products, creating the illusion of a best-seller and reducing distribution resistance.

    Case: When Shuijingfang was first launched, it first held a press conference, then immediately distributed widely. A few days later, the company sent people to buy back all Shuijingfang from the market as customers, creating the illusion of "new product launch, supply exceeds demand." This bold move was something many manufacturers dared to think but not do, yet the effect was immediate. Moreover, within just a year and a half of launch, Shuijingfang used this tactic several times, always giving the impression of "frequent stockouts."

V. Emphasize Four Key Points

  1. Product strategy: In terminal beer distribution, emphasize a multi-product strategy and determine the product mix. Emphasize that each product has its role: High-end products build the company and product brand image; even if they don't achieve sales for a long time, as long as terminal display is well done, our goal is achieved. Terminal products need profit and volume; packaging, design, pricing, and promotion execution should be carefully considered. Low-end products are strategic products aimed at suppressing competition; if necessary, sacrifice this product, even lose money, to beat competitors. Therefore, use the product mix well; trying to use one product to build image, achieve sales, and profit simultaneously is unrealistic and easily followed by competitors. One product should complete one task; each has its role.

    Additionally, in the product mix, it is best to combine new and old products for terminal distribution.

  2. Pricing strategy: Emphasize "stability with change." Use the "tianji horse racing" strategy (comparing strengths and weaknesses).

    • A. Penetration pricing: To make products more competitive than competitors, enterprises often use penetration pricing. This applies to low-end old products in decline; this pricing mainly attacks competitors and improves terminal competitiveness.
    • B. Skimming pricing: For new beer products in the introduction stage of the life cycle, use skimming pricing to extract profits and build image.
    • C. Discount pricing: Beer terminal distribution often uses quantity discount pricing, mostly in the form of buy-more-get-more. It is recommended to rebate at month-end to achieve secondary sales.

  3. Promotion strategy: Diversify promotions based on regional differences, emphasizing "give them what they like." Specific operations:

    • A. For shopping malls, supermarkets, and other professional sales venues (e.g., Sida, Jiutouya), use price promotions.
    • B. For nightclubs, hotels, and terminal retail points, use physical promotions: such as giving freezers, electric bikes, rice, etc.
    • C. For consumers, use gift promotions.
    • D. For particularly large venues with requirements (nightclubs, malls, supermarkets), assign personnel for personal selling. Therefore, promotion forms are diverse; salespeople must boldly innovate and be versatile to optimize terminal distribution.

  4. Personnel management: Strengthen training before terminal distribution and process management. Industry differences determine workflow differences, and beer industry terminal distribution forms, promotion methods, and communication vary greatly. Therefore, strengthening personnel training is particularly important, including basic product knowledge, corporate culture, marketing theory, communication skills, and building self-confidence. In personnel management, we not only value results but also strengthen process control, such as store count, store names, distribution varieties, distribution volume, terminal names, phone numbers, and competitor situations, all listed in tables and included in performance appraisal, directly linked to salespeople's promotions and distributor rebates.

VI. Strengthen Three Guarantees

In terminal distribution, salespeople and distributors may use "unconventional means" to complete company tasks, harming company interests. Therefore, the following guarantees should be in place:

  1. Strengthen account management to ensure risk is zero (or minimal): In early terminal distribution, promotions are strong; in principle, credit is not allowed. For certain terminals, do follow-up visits to control risk and keep it within reasonable limits.
  2. Strengthen terminal merchandising to ensure repeat customers: "Stockouts are fiercer than tigers!" Terminal display directly affects terminal sales. Strictly prevent stockouts, visit and replenish in time, and ensure smooth secondary sales.
  3. Strengthen manufacturer-distributor communication to ensure smooth information flow: Often, after the manufacturer's distribution ends, many distributors still don't know our product prices, let alone promotion policies. Sometimes promotion policies are intercepted by distributors, which is worth pondering. Ensure smooth information flow.

Efficient terminal product distribution is an urgent issue for every manufacturer and merchant. How to stay ahead and lead far is worth pondering for every merchant.

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