New products generally carry high risks and costs, and their promotion and sales are more challenging compared to established products. However, distributors often must vigorously promote new products. On one hand, manufacturers assign tasks requiring the promotion of new products; on the other hand, successfully launching new products marks the beginning of establishing a distributor's position and improving profitability. Many distributors recently acquired agency rights for new products at the Chengdu Sugar and Wine Fair, making promotion their top priority. We liken new product promotion to a battle, divided into three stages: reconnaissance, assault, and defense. Let's see how distributors should "fight" in each stage.

Step 1: Reconnaissance Stage – Calculate Costs, Make Plans, and Train Staff After acquiring agency rights, the period before the manufacturer ships goods is the best time for distributors to prepare. Key preparatory tasks include: understanding the product, grasping its selling points and buying points; understanding the market environment and sales of similar competing products to find a breakthrough; analyzing your own network channels to select the smoothest ones; designing profit margins and pricing systems; and making distribution plans, including timing, quantities, training sales staff, and assigning personnel and delivery vehicles. Different distributors have different priorities during preparation.

Yang Chunhua, General Manager of Panzhihua Dewei Industry and Trade Co., Ltd.: When promoting new products, first calculate costs clearly. Since shipping costs for non-local brands are high, we usually choose local brands. Local new products have lower shipping costs and are geographically closer, making them easier for consumers to accept. In terms of personnel, I prefer salespeople with industry experience; they have their own network resources, which can compensate for the company's shortcomings and reduce network development costs.

Qi Quanyi, Manager of Hubei Chibi Huiquan Trading Company: After introducing a new product, distributors should first formulate a promotion plan and determine the preferential policies that salespeople can promise to terminals. These policies should not be changed arbitrarily. Salespeople promoting new products receive a monthly subsidy of about 300 yuan in addition to their basic salary, plus sales commissions, ensuring stable income during the initial promotion period when profits are unstable. Once sales increase significantly, restore the salespeople to their normal base salary, as their commissions will already be substantial.

Manager Yang of Guiyang Nanming Wangshengda Trading Company: Through market research, we select new products with high market acceptance. After receiving the goods, we immediately send salespeople to visit customers with the new products and distribute them on the spot. Therefore, we stipulate that salespeople receive rewards for promoting new products, with extra bonuses for each new sales point developed.

Step 2: Assault Stage – Heavy Distribution Does Not Necessarily Mean Using Secondary Distributors After reconnaissance, everything is ready, and the general offensive begins! All preparatory work leads to the most critical part of new product promotion: distribution. In this stage, distributors need greater patience and wisdom to command the new product to capture market "fortresses."

Sun Yanfeng, General Manager of Shandong Zibo Gaoqing Fangyuan Trading Co., Ltd.: You must distribute the products yourself and try not to develop secondary distributors. Secondary distributors often only consider product profits and their own interests, but new product promotion requires not only maintaining the price system but also considering brand importance. During new product promotion, pay special attention to the importance of "volume." Only through extensive distribution can the market better understand and accept the new product. Since manufacturers initially focus on sales volume, tell salespeople not to be impatient; sales will vary in speed. Encourage salespeople to offer more preferential policies to terminals to encourage stocking.

Yang Chunhua, General Manager of Panzhihua Dewei Industry and Trade Co., Ltd.: Secondary distributors are sensitive to profits, so we generally do not use them when focusing on large-volume sales. When distributing heavily, emphasize "volume" over "price." First achieve social benefits, then pursue economic benefits. After consumers recognize and accept the product, gradually raise prices.

Qian Hongyan, General Manager of Hubei Huangshi Baquan Food Business: I recently promoted Lotte Odi's "Good Partner" milk beverage, selling several thousand boxes within a month, but this was not the result of heavy distribution. When selling to customers, we give at most two boxes at a time, or a few bottles per flavor. First, this prevents overstocking; fewer goods are easier to sell and do not create obstacles for downstream stocking. Second, small-scale distribution ensures cash payment, maintaining sufficient funds for more promotional activities. Applying for promotional funds from the manufacturer involves many procedures, and by the time approval comes, it's too late. Also, with fewer goods, you can clearly see market reactions and then take next steps. With too many goods, it's hard to tell. Currently, the repurchase rate for "Good Partner" has reached 60%.

Step 3: Defense Stage – Strictly Maintain Price System and Beware of "Insiders" After several "charges," the new product finally "captures" the market's front-line "positions," and victory is in sight. But it's easier to conquer than to hold; if post-market maintenance is poor, the "position" may still be "lost." What if terminal sales are weak after distribution and customers request exchanges? What if terminals arbitrarily adjust prices, disrupting the price system? What if salespeople secretly collude with customers behind the boss's back to extract company profits?

Sun Yanfeng, General Manager of Shandong Zibo Gaoqing Fangyuan Trading Co., Ltd.: Regular visits create a sense of dependence among terminals. When goods sell out, customers will call you immediately, or even wait for you to deliver. In the early stages of new product promotion, terminals worry about poor sales. If overstocking occurs, we exchange for better-selling products of equal profit. Good after-sales service is the foundation for building a good reputation.

Qian Hongyan, General Manager of Hubei Huangshi Baquan Food Business: The price system must be maintained. If the retail price is 4 yuan, it must be 4 yuan. If someone sells at 3.5 yuan, I will definitely stop them. This ensures profits and prevents consumers from thinking the new product is cheaper and therefore inferior to similar products, which would lead to declining sales.

Qi Quanyi, Manager of Hubei Chibi Huiquan Trading Company: You must use honest salespeople, even if their abilities are slightly inferior. In my company, some salespeople gave terminals unauthorized preferential policies during after-sales service, exceeding the company's plan and failing to fulfill them, damaging the company's reputation. Some salespeople even deceived both sides for personal gain. The former can be punished, but the latter must never be used again. Additionally, distributors should not treat manufacturer support funds as profit; they should take a long-term view to maintain good cooperative relationships with manufacturers.

Three Strategic Tips For distributors encountering resistance in distribution and unable to break through, the reporter recommends the following "tips" to help those in difficulty.

Tip 1: Clever Display of New Products to Vitalize Terminals Qian Hongyan, General Manager of Hubei Huangshi Baquan Food Business: Strive to attract consumers' attention and purchase, driving terminal stocking. Different terminals require different methods: in internet cafes, set the product image as the computer desktop wallpaper; in hotels, place the product in the most visible position in guest rooms; in chain supermarkets, display all five flavors on the shelves for direct visual impact. For small terminal stores that refuse to stock, my salespeople will post POP advertisements at their doors. If consumers want to buy such products, they promptly promote the product. After purchase, let them taste it on the spot. Once recognized, the store owner will naturally stock it.

Tip 2: Clever Product Matching to Defeat Market Rivals Qi Quanyi, Manager of Hubei Chibi Huiquan Trading Company: When we first started promoting "Qiaqia" sunflower seeds, the market was already dominated by "Dahaoda," and sales were poor. Later, I discovered that another Qiaqia product, strange-flavored beans, was still new locally. So we changed strategy and focused on promoting the beans. Unexpectedly, the market response was strong, sales were booming, and supply often fell short of demand. Subsequently, we combined Qiaqia sunflower seeds with the beans for distribution, and the results were indeed good. Since the beans were only popular with children, sales declined after a while, but Qiaqia sunflower seeds gradually gained consumer acceptance. Six months later, we defeated "Dahaoda" and "Zhenxin," achieving a great victory. So pay attention to product matching.

Tip 3: Clever Implementation of Rebates to Stimulate Terminal Sales Qi Quanyi, Manager of Hubei Chibi Huiquan Trading Company: Qiaqia's policy at the time was one free case for every 10 cases purchased. This works in big cities, but in county-level cities, it needs flexible handling. Due to limited funds, many channels cannot stock that much at once. Therefore, rebates should be proportional, such as half a case for every 5 cases, to encourage terminal stocking. If you rigidly apply the policy, the market will be hard to develop.

New product promotion is a problem all distributors face, whether novices or veterans. This issue provides many experiences from others, hoping to be helpful. But the market is ever-changing; finding your own "path to promotion" is most important. We will continue to follow the topic of "promoting new products" and related issues such as whether to develop secondary distributors, how to motivate salespeople, and how to maintain the price system.

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