---
title: "Find the Three Key Points, and New Product Launch Will No Longer Be Difficult!"
description: "This article discusses the key points for successfully launching new products in the FMCG distribution channel. It emphasizes the importance of three critical links: distributors' willingness to promote, retailers' willingness to sell, and consumers' willingness to buy, providing strategies to effectively connect the distribution chain."
author: "孟令宇"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2014-11-16"
language: "en"
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# Find the Three Key Points, and New Product Launch Will No Longer Be Difficult!

> This article discusses the key points for successfully launching new products in the FMCG distribution channel. It emphasizes the importance of three critical links: distributors' willingness to promote, retailers' willingness to sell, and consumers' willingness to buy, providing strategies to effectively connect the distribution chain.

Warm reminder: Click the “↑” next to “FMCG Distributor Professional Consulting” to learn more about marketing and distributor internal management.

The complete flow of a product is “manufacturer-distributor-retail store-consumer,” meaning the distributor purchases from the manufacturer, then distributes to retail stores, and finally the retail store sells the product to consumers. When this channel flow is completed, the new product has completed its launch process. In a narrow sense, new product sales are essentially the process of opening up the flow chain, and how to effectively open up the flow chain is the key to new product launch. Therefore, this article will focus on how to open up the flow chain and provide advice for distributors to effectively operate new product launches.

**Key Point 1: Distributors Are Willing to Promote**

As a key link in new product promotion, the distributor's promotion philosophy and marketing actions have an important impact on the success of the new product launch. Distributors must fully recognize the value and role of new products in their development and growth. New products not only have strong profitability but are also the best choice for optimizing product mix and enhancing operational safety, and are even a necessity for the survival and development of distributors. Therefore, distributors must clear obstacles to new product operation, stimulate new product sales power, and make every effort to ensure the success of new product promotion.

Clear obstacles to new product operation

Conceptual obstacles: Most distributors act as agents for new products with a trial sales attitude, paying insufficient attention and investment, resulting in ineffective promotion measures and difficulty in opening up sales. When this concept dominates distributor market operations, new product sales are generally not optimistic in most cases. Therefore, distributors should either not choose new products, or if they do, they must fully promote them. Only when distributors have this determination and mindset can new products be successfully promoted.

When new product promotion fails, the distributor suffers the greatest loss. Because poor new product movement is superficially a loss of retail store profits, but in reality, it is the distributor losing the trust of retail stores. In addition, poor new product movement also dampens the enthusiasm of sales personnel and reduces team cohesion and pioneering spirit.

Market risk obstacles: Distributors face two major risk mindsets: first, whether the product can open up sales; second, whether the market investment can be recovered. Faced with these two risks, first, sufficient product and market analysis must be done during the product selection process to reduce market risk. All commercial behaviors have a certain degree of risk, and the risk and return of commercial behavior are proportional. The key is for distributors to improve their ability to analyze and judge risks and use systematic methods to reduce market risk in product selection.

Marketing method obstacles: New products need new methods to sell. Many distributors have been operating for many years and feel they have accumulated rich marketing experience, but different products have different attributes and require different marketing strategies. Therefore, in the process of promoting new products, distributors should not be limited to existing marketing experience but should objectively analyze and explore suitable sales models for new products.

Internal marketing obstacles: Distributor sales personnel not paying attention to new product promotion is the most fundamental marketing obstacle. Through research on many new product launch processes, we found that many new products do not die in the market but die at the hands of the distributor's sales personnel. The sales personnel's resistance to new products and lack of effort in promoting them are the biggest obstacles to successful new product promotion, which must be taken seriously by distributors.

Stimulate new product sales power

First, elevate it to the height of distributor operational strategy. All internal departments must make promoting new products the core work, and all company personnel must recognize that if the company fails to promote new products, it will inevitably be eliminated by the market.

Second, increase the enthusiasm of sales personnel. Salespeople are accustomed to selling mature products that are easy to sell because selling such products is the simplest. New products require a sales process, requiring salespeople to introduce the product, marketing plan, profit space, etc., to retail store owners. Therefore, special rewards must be set for new product launches to ensure the enthusiasm of sales personnel, such as high commissions and high incentives for new products.

Finally, distributors must ensure appropriate resource tilt, especially terminal resource tilt, such as advertising and display fees invested in terminals. Accounting, warehousing, and other departments should treat new product launch as core work because only distributors who can promote new products can obtain final profits.

**Key Point 2: Retail Stores Are Willing to Sell**

If distributors want to achieve good sales results in retail stores, they must do two major strategies well: retail store development strategy and retail store willingness to sell strategy.

Retail store development strategy: First, lock onto retail stores that can sell new products. Not all retail stores are suitable for selling new products. Distributors should analyze product attributes and target consumer groups to determine which channels the product sells well in and lock onto retail stores that can sell new products. This is the first and most critical step to ensure the success of the new product launch.

Second, through investigation of terminal outlets, classify retail stores according to expected product sales volume, that is, classify the retail stores under their control according to certain standards, distinguishing the quality of terminal outlets. Generally, evaluation can be based on the sales scale of the outlet, the location of the outlet, the inventory of goods in the outlet, and the product codes and dates of inventory products.

Finally, grasp the pace of new product retail store development. In the early stage of new product promotion, concentrate resources and develop the highest quality first-class retail stores in the shortest possible time; then focus on developing second-class retail stores, striving to maximize the number of terminals and create a full terminal atmosphere; after the market sales atmosphere for the new product is better, distributors can develop third- and fourth-class outlets as channel supplements. During the development process, distributors must establish the awareness that the quality of retail stores is more important than quantity. If only the distribution rate is unilaterally pursued during new product promotion, the new product will surely die.

Retail store willingness to sell strategy: Interest, pressure, and customer relationships are the three core factors affecting retail store owners' sales. First, let terminal owners gain benefits. This requires distributors to control retail prices, ensure profit space, formulate reasonable and effective product movement plans, ensure product sales turnover, and adjust channel promotion plans in a timely manner, formulate reward plans that small store owners are willing to accept, and increase terminal owners' sales enthusiasm.

Second, increase the sales pressure on retail store owners. As the saying goes, pressure creates motivation. For distributors, this is actually a process of squeezing warehouse space and occupying funds. The key point of stocking pressure is to improve the work ability of distributor sales personnel. Salespeople must establish a stocking pressure awareness, as sales performance comes from stocking pressure, and learn to use stocking pressure to choke competitors' throats. Sales personnel should also have a certain momentum and dare to use promotion policies for reasonable stocking pressure, but must adopt reasonable and appropriate methods, such as scenario description, using cumulative sales data to persuade terminal stores to stock up.

Finally, enhance customer relationships with retail store owners. The core of building customer relationships is service work. Distributors must make regular visits to retail stores because customer relationships are generated through continuous meetings and communication. Distributors should provide appropriate and in-place services to retail stores as much as possible, such as product returns and exchanges, timely product delivery, and training for terminal owners on sales skills.

**Key Point 3: Let Customers Be Willing to Buy**

Difficult movement is a problem faced by many distributors and a difficult problem they urgently want to solve. “Production-sales-use” is the complete life chain of a product. However, how can products smoothly move from the sales stage to the “use” mission? It is actually solving the problem of how to make customers willing to buy. Then, the first issue distributors must consider is what elements affect product movement, that is, what factors affect customer purchase? After clarifying the elements customers care about most when choosing products, targeted solutions can be applied to “cure the disease.”

First, let customers feel value for money during purchase. The completion of consumer purchase behavior most needs product quality support, and consumers must feel that the product is worth the price. This requires grasping consumers' purchase psychology, that is, “not buying cheap products, but buying products that offer a good deal.” Therefore, timely and flexible consumer promotion activities will increase customers' purchase desire, such as buy two get one free, second item half price, etc.

Second, do well in terminal display. To do well in terminal display, adhere to four core principles: the best display position, placed where consumers can see and get it most easily; maximize product display, with full shelves and stacks; highlight new product placement, with the most profitable products in the most prominent position; and the best display image, with products placed centrally and full use of promotional materials.

Third, create a good point-of-sale atmosphere. The so-called point-of-sale atmosphere refers to making consumers notice the new product, feel the sales heat of the new product, and even be infected by the strong sales atmosphere, actively paying attention to the product. To achieve a good point-of-sale atmosphere, first fully utilize materials, such as outdoor display boards, posters, banners, display boxes, indoor display boards, triangular price tags, explosion tags, and shopping bags.

In addition, implement classified execution of terminal store atmosphere creation. Among them, stores with monthly sales of 1,000 yuan are standard stores, with display requirements of top three positions and use of new product promotional materials; stores with monthly sales of at least 3,000 yuan are image stores, with display requirements of first position, new product store signs and promotional materials; stores with monthly sales of at least 4,500 yuan are flagship stores, where new product display must occupy a strong position, and the new product location must be good, preferably in high-traffic areas, with store signs, outdoor, and indoor billboards simultaneously present, and display packaging such as column wrapping, stack boxes, and TG end caps.

Fourth, ensure recommendation by sales guides. In supermarket-type terminal stores, in-store sales guides are the core factor in product recommendation. Sales guides can be full-time explicit promoters or in-store personnel doing implicit promotion. At this time, strengthening the training and management of sales guides and improving their promotion efficiency is particularly important for product movement.

First, training for sales guides mainly includes promotion knowledge training and skill training. Enterprise knowledge, product knowledge, and marketing knowledge are the basis for their promotion activities, while behavioral skills, communication skills, and closing skills are necessary for successful promotion activities. When promoters master certain promotion knowledge and skills, distributors should formulate complete incentive measures, increase profit stimulation for new products, and implicit promotion commissions above 5 yuan.

Fifth, carry out promotional activities. The so-called promotional activities refer to an auxiliary sales model for product sales, conducive to rapid breakthrough of new products. Promotional activities must be executed according to requirements and specifications to achieve maximum effect. Among them, promotional activities have three key points: publicity function, through on-site atmosphere creation and publicity, making customers have a certain understanding of the new product; tasting sales, for food new products, tasting is the most effective movement method, letting customers feel it personally; promotion function, through on-site promotional sales, making customers experience the psychology of getting a good deal, achieving sales.

Sixth, improve product freshness. Consumers are very sensitive to the product code date of food products, which is an important factor affecting purchase. When the product exceeds half of its shelf life, consumers are no longer willing to buy, and an old-date product placed in the terminal will affect the sales of 5 to 10 new-date products. Therefore, distributors must promptly handle the recall of old-date terminal products and always remember that the fresher the product, the better the sales.

Product freshness is the fundamental factor for distributors' profitability. If distributors do not adjust products with longer dates in a timely manner, the market loss will be greater, and product freshness superior to competitors is an effective means to attack competitors. In addition, recalling old-date products, with no risk for terminal stores, is a fundamental means to increase customer relationships with terminal stores. So, how to improve product freshness?

First, strictly implement the dynamic stock transfer process, strengthen the hands-on ability of sales personnel, transfer from slow-selling outlets to fast-selling outlets, and accelerate product exchange and circulation.

Second, in terminals with sales guides, adjust reward measures to mobilize the enthusiasm of sales guides to sell products with longer dates, such as increasing partial commissions for sales guides to increase the digestion of old-date products; third, continuously carry out promotional activities to digest old-date products, such as increasing bundle sales in B-type store supermarkets.

Finally, digest long-date products through special channels, such as schools, factories, military, breakfast stalls, hot pot restaurants, etc., and also through gift box packaging during Dragon Boat Festival, Mid-Autumn Festival, and Spring Festival.

In summary, the three key points for successful new product launch include: self-movement, distributors willing to promote; terminal movement, retail stores willing to sell; customer movement, consumers willing to buy. Doing these three key points well can effectively open up the chain, establish a highway for product flow, and thus achieve successful new product launch.

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