Background Lao Chen, a distributor in Nanchang, Jiangxi, is a veteran in the beverage business. His company, established over a decade ago, primarily operates in traditional circulation channels. Through years of market operations and development, he has accumulated a large number of secondary wholesaler resources and an extensive distribution network. In the first half of this year, Lao Chen received two important pieces of news: first, a renowned food and beverage company C (hereinafter referred to as "Company C") was about to launch an energy drink. Lao Chen knew Company C well; given its history of high market investment and high product survival rates, this product was bound to be a rising star in the energy drink category. Second, Company C's traditional circulation distributor in Nanchang was suffering heavy losses due to poor management, and their contract with Company C was about to expire. Upon learning this, Lao Chen could hardly contain his excitement; he decided to secure the distribution rights for this beverage in Nanchang. With his mind made up, Lao Chen immediately contacted Company C's branch in Nanchang. After several rounds of negotiations, leveraging his detailed terminal and secondary wholesaler data, professional market analysis, and extensive distribution network, he successfully outshone competitors and earned a "trial" opportunity. If the initial distribution was successful, a contract would be signed immediately. Thus, Lao Chen's "New Product Distribution Showcase" was about to begin.
Launch Hosting a Tasting Event to Generate Buzz The first order of 800 cases of beverages arrived quickly, but Lao Chen did not rush to distribute. Instead, based on the company's secondary wholesaler data, he screened a batch of qualified secondary wholesalers and then contacted Company C's office to hold a new product tasting event. At the start of the meeting, the advertising sample of Company C's energy drink and terminal display renderings were played. After that, Company C's market representative gave an overall analysis of this year's energy drink market, followed by a detailed market analysis of the product. Then, a unified taste test was conducted comparing this energy drink with other energy drinks on the market. By this point, the secondary wholesalers had a deeper understanding of the product. At this moment, Lao Chen took the stage to showcase his oratory skills, providing a professional analysis and description of the local market characteristics, consumer habits, and the product's profit potential. By the end of the tasting event, it was clear the secondary wholesalers were eager and optimistic about the product's market prospects. As expected, after the meeting, the secondary wholesalers flocked to inquire about the purchase incentive policies, as no one wanted to miss a money-making opportunity. However, Lao Chen was well aware that secondary wholesalers generally have low loyalty and often share in the good times but not the bad. If the product's market feedback was poor, they would quickly switch sides. Moreover, in traditional channels, new products have weak vitality, and product tier and vitality are inversely proportional in the market. Therefore, a new product entering the market needs careful nurturing from the distributor to survive. But distributors have limited resources, so they need to leverage the power of secondary wholesalers. Yet, secondary wholesalers won't believe in the product's vitality without seeing tangible returns. Thus, the tasting event was just to generate buzz and pique their interest.
Action Focused Distribution to Create a Model Terminal After the tasting event, Lao Chen gathered the participating secondary wholesalers in a room to announce a market distribution plan. This plan was not a full-scale rollout but focused on three key routes for concentrated distribution. At this point, Lao Chen said sincerely, "This distribution plan is also to be responsible for you, bosses. The product is good, but consumer acceptance may not be high. If the trial sales go well, we can then proceed with large-scale distribution without delay, avoiding risks and overstocking for everyone." Upon hearing this, the secondary wholesalers unanimously agreed and pledged full support. With this, the first phase of Lao Chen's buzz-building came to a perfect close. The second phase was about to begin. A week later, following the distribution plan, Lao Chen, together with the secondary wholesalers, including himself, pooled human and material resources and began planned, concentrated distribution along the three routes. First, they had to secure key large terminals, which had good display effects and were conducive to creating a hot-selling atmosphere. Second, they targeted terminals with good relationships, leveraging these relationships to maximize their promotional and display roles. Finally, they needed to tackle harder-to-enter terminals; with the groundwork laid by the first two steps, these remaining terminals would be easy pickings. Due to the concentration of resources, high-density distribution was achieved in a very short time. Coupled with the manufacturer's personnel follow-up, the vivid display and promotional material setup quickly met the manufacturer's standards. Instantly, a hot-selling atmosphere for the energy drink was created, and the model market was successfully established. Thanks to rapid distribution and excellent vivid displays, good results soon followed, with product turnover reaching a commendable level—a first victory.
Review Market Tour and Order Boom The focused distribution on the three routes was highly effective, creating a solid model market. At this point, Company C began urging Lao Chen to strike while the iron was hot and proceed with full-scale distribution. However, Lao Chen had his own plans; he told Company C not to rush, as he wanted to add icing on the cake. Subsequently, Lao Chen held another on-site meeting, gathering the secondary wholesalers who had attended the tasting event. This time, instead of a hotel, he arranged several vehicles to take them to the model market for inspection, allowing the secondary wholesalers to see the terminal displays firsthand and understand the product's sales performance. He used facts to show them the strong vitality of the energy drink, once again generating buzz for the product. After inspecting the model market, they returned to the hotel for a meeting. The meeting began with Company C's representative analyzing the sales and terminal feedback from the three routes. Then, the secondary wholesalers involved in the concentrated distribution were invited to share their promotion experiences and discuss existing problems. In response to these issues, Company C's business supervisor and Lao Chen provided on-the-spot answers and solutions. This approach made the secondary wholesalers deeply feel the manufacturer's sincerity and confidence in the energy drink. By this point, the secondary wholesalers had a completely new understanding of the new product. Facts speak louder than words; they must have believed that this new product had excellent market prospects. At the end of the meeting, Lao Chen announced the incentive policies for ordering and display, triggering an order boom and simultaneously launching full-scale distribution. A month later, the terminal distribution rate for the energy drink exceeded 85%, setting a new historical high for all Company C products in the Nanchang urban area. Channel terminals gained immense confidence in the product, leading to key recommendations during sales. Within just one month, sales surpassed Company C's original target. Lao Chen's successful distribution of the energy drink earned unanimous recognition from Company C, and a full-line distribution contract was signed immediately. With this, the "New Product Distribution Showcase" came to a perfect end. -END-