---
title: "From Methods to Priorities: 31 Key Metrics for Efficient Terminal Distribution"
description: "As competition in the terminal market intensifies, the importance of terminals has grown, yet high entry fees make them a double-edged sword for many businesses. Terminal distribution is a crucial and challenging step in developing and controlling terminals. This article analyzes and elaborates on efficient product terminal distribution strategies, aiming to provide reference for enterprises in their terminal marketing efforts."
author: "丁永征"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2015-07-20"
language: "en"
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# From Methods to Priorities: 31 Key Metrics for Efficient Terminal Distribution

> As competition in the terminal market intensifies, the importance of terminals has grown, yet high entry fees make them a double-edged sword for many businesses. Terminal distribution is a crucial and challenging step in developing and controlling terminals. This article analyzes and elaborates on efficient product terminal distribution strategies, aiming to provide reference for enterprises in their terminal marketing efforts.

As competition in the terminal market intensifies, the status of terminals has been elevated, and high entry fees make many merchants both resent and love terminals. Terminal distribution is an important step in developing and controlling terminals, and it is also one of the most difficult steps. How can we successfully, quickly, and efficiently distribute products and effectively control terminals?
This article aims to analyze and elaborate on efficient product terminal distribution strategies, hoping to provide reference and guidance for enterprises in their terminal marketing process.
**I. Follow a "SMART" Center**
In the process of 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" principle gives terminal personnel a clear framework.
S (Specific): Terminal distribution goals must not be too general or vague; they must be specific, clarifying what products, what strategies, and what results are expected. Whether entering terminal shopping malls, hypermarkets, nightclubs, or hotels, all must be specified.
M (Measurable): Through distribution, set quantifiable goals for market share and coverage in the region, and create daily distribution plans and actual completion tables.
A (Achievable): Based on preliminary research, require frontline personnel to complete distribution to a certain number of outlets and product varieties within a specified time frame (preferably one week).
R (Relevant): For example, in winter beer terminal distribution, the goal is not to sell a certain amount of beer during this period, but to assess how many terminal stores accept our product, maintaining high market coverage in the off-season to lay the foundation for peak season sales.
T (Time-bound): Terminal distribution requires a clear timeline, emphasizing speed beyond the norm, winning with speed; otherwise, competitors can easily imitate.
**II. Two Standards for Terminal Distribution**
There are two important indicators for terminal distribution: horizontal width and vertical depth.
Horizontal width refers to the breadth of distribution. The wider the terminal network, the more opportunities target consumers have to see and consume our products. In fact, network width is a typical approach to win by volume. Generally, the more mass-market the consumer goods, the more they need network width to achieve widespread consumption.
Vertical depth refers to the quality of distribution terminals, including each terminal's sales volume, customer contact numbers, and brand influence. The greater the network depth, the better the sales momentum and brand appeal of individual terminals. Network depth is like the depth of tree roots, reflecting the strength of direct brand competitiveness.
Moreover, the development of network width and depth often does not synchronize; that is, generally, one either pursues width first or depth first. Is there a way to balance the development of network width and depth to avoid neglecting one for the other? According to the spirit of deep distribution, product market development adopts a progressive model that prioritizes depth first, then width. Specifically, first select terminals that can best showcase the product image and most likely trigger consumption, forming the first wave of core consumer groups, establishing advantages in local areas, and then begin large-scale coverage improvement.
**III. Three Guarantees for Distribution**
During terminal distribution, sales personnel 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 the early stages of terminal distribution, promotional efforts are strong, and credit sales are generally not allowed. For individual terminals, follow-up visits should be conducted to control risk and keep it within reasonable limits.
2. Strengthen terminal merchandising to ensure repeat customers.
Terminal visual presentation directly affects terminal sales. Prevent stockouts, conduct timely follow-ups and replenishment, and ensure smooth secondary sales.
3. Strengthen manufacturer-distributor communication to ensure smooth information flow.
Often, by the time the manufacturer's distribution is complete, distributors still don't know the product's price, let alone promotional policies. Sometimes promotional policies are intercepted by distributors, which is worth pondering. Ensure information flows smoothly.
**IV. Four Key Points for Distribution**
1. Product Strategy:
Terminal distribution should emphasize product diversification and determine the product mix: high-end products to build brand image for the company and product; as long as terminal visual presentation is done well, our goal is achieved. Mid-range products aim for profit and sales volume; packaging, design, pricing, and promotions should be carefully considered. Low-end products are strategic products aimed at suppressing competition; if necessary, sacrifice this product, even at a loss, to beat competitors. Therefore, use the product mix wisely; it's unrealistic to expect one product to build image, generate sales, and yield profit simultaneously, and it's easy for competitors to follow. Additionally, it's best to combine new and old products in the mix.
2. Pricing Strategy:
Emphasize "stability with change." Use the "tianji horse racing" strategy.
A. Penetration Pricing: When the product is a low-end old product in decline, this pricing can attack competitors and enhance terminal competitiveness.
B. Skimming Pricing: For new product introduction, skimming pricing yields profit and builds image.
C. Discount Pricing: Offer discounts based on distribution quantity, often in the form of buy-more-get-more. It's recommended to rebate at month-end to encourage secondary sales.
3. Promotion Strategy:
Develop diverse promotional strategies based on regional differences, emphasizing "cater to their preferences."
For example:
A. For professional sales venues like shopping malls and supermarkets, use price promotions.
B. For nightclubs, hotels, and retail outlets, use physical promotions: such as giving freezers, electric bikes, rice, etc.
C. For consumers, use gift promotions.
D. For large venues with specific requirements, such as nightclubs, malls, and supermarkets, assign personnel for personal selling.
4. Personnel Management:
Industry differences dictate differences in work processes, promotional methods, and communication. Strengthening personnel training is crucial. Training content includes basic product knowledge, corporate culture, marketing theory, communication skills, and building self-confidence. In personnel management, we not only focus on results but also strengthen process control, such as store count, attendance, distribution varieties, distribution volume, terminal names, phone numbers, and competitor information, all listed in tables and included in performance appraisals, directly linked to sales personnel promotions and distributor rebates.
**V. Five Major Forms of Terminal Distribution**
1. Carpet-style Distribution:
Include all dining 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.
2. Area-style Distribution:
Select a certain number of influential terminals in the regional market as distribution targets, strengthen high distribution rates, increase product-consumer contact opportunities, and enhance brand competitiveness.
3. Point-style Distribution:
Select a few leader terminals in the regional market for distribution, create brand "flagship stores," and leverage the influence of leader terminals to drive coverage from point to area.
4. Strike-style Distribution:
For brands with strong own strength and clear competitive advantages over regional competitors, target competitors' quality terminals, stimulate with high profits and big promotions to get products in, and quickly boost sales through thoughtful service and efficient terminal promotions, weakening competitors' advantages while enhancing own terminal influence.
5. Avoidance-style Distribution:
For brands entering markets where competitors have strong brand strength and terminal control, and own brand is weaker, to prevent rapid competitor retaliation, use avoidance-style distribution: avoid strong competitors' strengths, start from competitors' weak areas or blank/non-quality terminals, and eventually achieve point-to-area, layer-by-layer encirclement, and regional segmentation to enhance own terminal competitiveness.
**VI. Seven Principles of Terminal Distribution**
1. Precise Research Principle:
Research content roughly includes: survey the number of retailers in the regional market to determine distribution time and personnel; obtain competitor information to prepare terminal strategies; obtain terminal retailers' contact information for distribution and follow-up visits.
2. Targeted Principle:
Select product varieties and grades based on terminal type, scale, and tier to ensure products meet target consumer needs to the greatest extent.
3. Timeliness Principle:
After confirming terminal sales intent and signing sales agreements, distribute to terminals promptly. During sales, replenish terminals promptly based on sales to prevent stockouts affecting sales.
4. Small and Frequent Principle:
Currently, terminals cannot settle immediately, and credit sales are serious. It's best not to distribute too much at once; adopt a small and frequent principle to reduce debt or return risks.
5. 80/20 Principle:
Generally, 80% of market performance comes from 20% of terminals. Therefore, in early distribution, follow the 80/20 principle, putting 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-tier terminals, and 20% on third-tier terminals.
6. Brand-driven Principle:
Select a main product with high-quality packaging and design, set appropriate pricing and promotional strategies to build brand image, achieve single-product breakthrough, and drive distribution of other products.
7. Competitor Principle:
The purpose of terminal distribution is to increase product awareness, reputation, and loyalty, maximizing sales profit. Therefore, consider competitors' follow-up and imitation in price, packaging, and promotions, avoid being exploited, and develop strategic products, prices, and promotions to suppress competitors and maximize sales.
**VII. Nine Major Strategies for Terminal Distribution**
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 creates consumer awareness; due to the lag effect of advertising, consumers only purchase after accepting the ad to a certain degree, allowing time to arrange distribution. On the other hand, advertising helps control channels because channel purchases are often influenced by ads. Therefore, distributing after advertising can smoothly get channels to accept the product, shortening distribution time.
Key points: Conduct thorough market research to understand consumer and channel attitudes toward advertising; make full preparations, completing all preliminary distribution work while advertising; control distribution timing to create anticipation but not too long to reduce consumer interest.
2. Tasting Method:
When new products first launch, terminals often lack awareness and confidence, causing significant resistance. If we start by activating consumers, directly working on end 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.
3. Distribution Reward Strategy:
Use reward policies during the distribution phase to reduce resistance and terminal rejection. There are many types of distribution rewards: fixed rewards, purchase rewards, account opening rewards, distribution risk funds, promotional item support, free products, and cash subsidies. For liquor products, this is a critical step; if you can effectively capture terminal attention, distribution activities are half successful.
Key points: Effectively grasp terminal interests, achieve good results at minimal cost; distribution reward policies should not affect future normal price systems, avoiding market price chaos; reward methods should be flexible and diverse.
As the peak season approaches, distribution rewards use stack displays: placing a certain quantity of products in prominent terminal locations, with compensation from the company. A took preemptive action and conducted comprehensive distribution in City A.
A placed 10 products at terminal entrances and bar counters, offering 30 yuan per month. Terminal hotels only make 2-3 yuan profit per bottle sold, so the strong reward effectively motivated terminals.
This stack display for liquor not only showcases the brand but also occupies terminal inventory and effective space. It also provides higher benefits to terminals without worrying about market price chaos.
Using this method, A significantly improved market coverage and share, and when competitors counterattacked, the channel was already full, successfully blocking them.
4. Avoid the Strong and Attack the Weak Strategy:
For new brands entering the market, directly competing with competitors may lead to "bloody" failure. Facing distribution resistance, adopt this strategy to find alternative paths. Avoid competition in distribution terminals, focusing on overlooked terminal blind spots.
Key points: Find competitors' weak links; choose attack methods and anticipate competitor retaliation; continuously refine and adjust plans based on market changes.
5. Point-to-Area Strategy:
Enterprises can also adopt a key breakthrough strategy: point to line, line to area. First activate and do well with some quality terminals, leverage their demonstration effect, establish "leader terminals," build confidence among other terminals, and achieve the goal of using point activation to drive area distribution. "Terminal leaders" are retailers with large scale, long operation, and influence over other channel members. They are the main models for other retailers; when entering the market, use their prestige and influence in the distribution field to reduce distribution resistance.
6. Free-rider Strategy:
To reduce distribution resistance for new products, use the free-rider strategy: bundle new products with best-selling products, leveraging the original product's channel power to "carry" sales, reducing resistance and getting new products to retail terminals quickly. However, if new products have different consumer groups, price systems, or operation methods, don't mechanically attach them to existing products; otherwise, new product introduction may be hindered and old product sales may suffer.
Key points: Choose dominant brands or varieties in the market; the two products or brands should ideally be complementary; can leverage competitors' influence and channels.
7. Moderate Initial Stock Method:
For small and medium enterprises, especially low-awareness new brands, without large-scale advertising to pull hotel sales, cash distribution is difficult. If cash is required, sales costs may be higher. In such cases, provide moderate initial stock to reduce resistance and achieve higher distribution rates. That is, provide hotels with initial stock without immediate payment, requiring cash on the second order after selling out. But the initial stock quantity must be strictly limited, combined with necessary promotional activities, to quickly enter a virtuous cycle.
Key points: Products should be low-priced and easy to purchase; choose hotels with good reputation and strength to avoid bad debts; best not to distribute too much at once, adopt small and frequent principle to reduce debt or return risks.
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 distribute the manufacturer's products.
9. Creating a Best-seller Illusion Method:
The company identifies target terminals, sends personnel to pose as customers and repeatedly ask for the brand. After many inquiries, the terminal gets the impression that the product should sell well, making distribution easier. Some companies even give free stock and then buy it back, creating an illusion of popularity, reducing distribution resistance.
Efficient distribution requires high attention from all personnel. With attention, everyone can think together and act together. Additionally, practice the frontline work method. Solve problems at the frontline; frontline work solves problems well. Practice frontline work with the "three blisters" spirit.
(1) Mouth blisters: Communicate more and communicate thoroughly, especially conveying company activities accurately to avoid deviations and misunderstandings.
(2) Hands blisters: As salespeople, cultivate your own field, do more hands-on work like posting promotional posters and organizing products.
(3) Feet blisters: Salespeople's legs, frankly, are like rabbit legs; they need to run more.
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