New products generally carry high risks and costs, making their promotion and sales 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 a distributor establishing their position and achieving better profitability. Many distributors recently obtained agency rights for new products at the Chengdu Sugar and Wine Fair, making the promotion of these new products their top priority. We compare new product promotion to a military campaign and divide it into three phases: reconnaissance, assault, and defense, examining how distributors should "fight" in each phase.
Step 1: Reconnaissance Phase – Cost Calculation, Planning, and Training Are All Essential After securing agency rights for new products, the period before the manufacturer ships goods is the best time for distributors to prepare. Preliminary preparations typically focus on the following: understanding the product, grasping its selling points and buying points; understanding the market environment and sales of similar competing products to find a market breakthrough for the new product; analyzing one's own network channels to select the most efficient ones; designing profit margins and pricing systems; and making a distribution plan, including timing, quantity, training sales staff, and assigning execution personnel and delivery vehicles. During preparation, different distributors have different priorities.
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 typically choose local brands; local new products have lower shipping costs and, being geographically close, are more easily accepted by consumers. In terms of personnel, I prefer salespeople with industry experience; they have their own network resources, which can compensate for the company's shortcomings in this area and reduce the cost of developing networks.
Qi Quanyi, Manager of Hubei Chibi Huiquan Trading Company: After introducing new products, distributors should first formulate a promotion plan and determine the preferential policies that salespeople can promise to retail 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 their income remains stable during the promotion period without pressure, since profits are unstable in the early stages. When sales of the new product increase significantly, salespeople return to their normal base salary because their commissions are already 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 product and distribute it on the spot. Therefore, we stipulate that salespeople receive rewards for promoting new products, with additional bonuses for each new sales point developed.
Step 2: Assault Phase – Heavy Distribution Does Not Necessarily Mean Using Secondary Distributors After reconnaissance is complete and everything is ready, the general offensive begins! All preliminary preparations are for the most critical part of new product promotion: distribution. In this phase, 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.: It is essential to distribute directly and avoid developing secondary distributors as much as possible. Secondary distributors often only consider product profits and their own interests, whereas new product promotion requires not only maintaining the price system but also considering brand importance. During new product promotion, special attention should be paid to the importance of "volume"; only through heavy distribution can the market better understand and accept the new product. Manufacturers initially focus on sales volume. However, salespeople should be told not to be impatient in the early stages; sales of new products will inevitably vary in speed. Salespeople can offer more preferential policies to terminals to encourage them to stock up.
Yang Chunhua, General Manager of Panzhihua Dewei Industry and Trade Co., Ltd.: Secondary distributors are sensitive to profits, so when focusing on large-volume sales, we generally do not use them. During heavy distribution, emphasize "volume" over "price"; first achieve social benefits, then pursue economic benefits, and gradually raise prices after consumers recognize and accept the product.
Qian Hongyan, General Manager of Hubei Huangshi Baquan Food Trading Company: I recently promoted Lotte Otli's "Good Partner" milk beverage, selling several thousand units within a month of taking it on, but this was not the result of heavy distribution. When selling to customers, we give at most two units at a time, or a few bottles per flavor. First, this prevents overstocking; with less stock, it sells better and does not create obstacles for downstream ordering. Second, small-scale distribution ensures cash payment, maintaining sufficient cash flow to conduct more promotional activities. Applying for promotional funds from the manufacturer involves many procedures, and by the time approval comes through, it's too late. Additionally, with less stock, market reactions are more visible, allowing for subsequent actions. With more stock, it's harder to see. Currently, the repeat purchase rate for "Good Partner" has reached 60%.
Step 3: Defense Phase – Strictly Maintain the Price System and Guard Against "Internal Traitors" After several "charges," the new product has finally "captured" the market's front-line "positions," and victory is in sight. But it is easier to conquer than to hold; if post-market maintenance is poor, the "positions" 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 collude with customers behind the boss's back to siphon off company interests?
Sun Yanfeng, General Manager of Shandong Zibo Gaoqing Fangyuan Trading Co., Ltd.: Regular visits create a sense of dependence among terminals; when goods are sold out, customers will call immediately, and some simply wait for you to deliver. In the early stages of new product promotion, terminals worry about poor sales; if overstocking occurs, we exchange for products with equal profit that sell better. Good after-sales service is the foundation for building a good reputation.
Qian Hongyan, General Manager of Hubei Huangshi Baquan Food Trading Company: The price system must be maintained. If the retail price is 4 yuan, it stays 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 inferior to similar products because it's cheaper, which would lead to declining sales.
Qi Quanyi, Manager of Hubei Chibi Huiquan Trading Company: It is essential to use honest salespeople, even if their abilities are slightly inferior. In my company, a salesperson arbitrarily gave terminals extra preferential policies during after-sales service, exceeding the company's plan and making it impossible to fulfill, 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 employed 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 facing resistance in distribution and struggling to break through, the reporter recommends the following "tips" to help those in difficulty.
Tip 1: Clever Display and Terminal Vitalization Qian Hongyan, General Manager of Hubei Huangshi Baquan Food Trading Company: Strive to attract consumer attention and purchase, driving terminal stock-up. Different terminals require different methods: in internet cafes, set product image ads as desktop backgrounds; in hotels, place products in the most visible spots in guest rooms; in chain supermarkets, display all five flavors on shelves for visual impact. Some small terminal stores refuse to stock up; my salespeople post POP ads at their doors, and if consumers want to buy such products, they promptly promote them. After purchase, let consumers taste on the spot; once recognized, the store owner will naturally stock up.
Tip 2: Clever Product Pairing to Defeat Market Rivals Qi Quanyi, Manager of Hubei Chibi Huiquan Trading Company: When we first started promoting "Qiaqia" sunflower seeds, the market was largely occupied by "Dahaoda," and sales were poor. Later, I discovered that another Qiaqia product, strange-flavored beans, was still new locally, so I changed strategy to focus on the beans. Unexpectedly, the market response was strong, sales were explosive, and supply often fell short of demand. We then combined Qiaqia 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 seeds gradually gained consumer acceptance. Six months later, we defeated "Dahaoda" and "Zhenxin," achieving a great victory. So pay attention to product pairing.
Tip 3: Clever Rebate Execution 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, flexibility is needed. Due to limited funds, many channels cannot order 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 becomes difficult.
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