This Chinese New Year is destined to be an extraordinary holiday. First, it is the first most important holiday for Chinese people after the pandemic restrictions were lifted. Second, combined with the May Day Golden Week travel data, the National Day Golden Week travel data, and the early announcement of the number of days for the Spring Festival Golden Week, it is clear that this Spring Festival will be a consumption "feast."
CNY planning is undoubtedly the top priority during this period. Based on my previous CNY planning experience, I'd like to share a few points.
CNY Overview
Before diving into CNY, you need to clarify two things:
First, the biggest difference between CNY and normal times is the huge consumption opportunities brought by population movement. What is the age structure of these people? How many are your target consumers? What is their consumption purpose (self-consumption, visiting friends and relatives)?
Second, CNY lasts nearly two months. Which time nodes must be firmly grasped? How can you focus limited resources, prioritize major tasks, and achieve your goals?
Let's first look at two data points that the industry generally agrees on:
It's easy to see that during CNY, the post-80s and post-90s account for 74% of the Spring Festival travel rush population, so the focus should be on younger demographics. Additionally, about 70-90% of people stock up for shopping 10 days before returning home or departing, so seize the peak sales period one week before the Spring Festival and one week before departure.
We need to conclude: Which people should resources be focused on? Which time points should resources be focused on? This effectively avoids fatigue and attrition in the campaign.
CNY Operational Background
Regarding the operational background, I suggest thinking from four dimensions.
1. Performance Dimension: During CNY, performance should grow year over year, aiming for new highs. Fully analyze data from the same period, set baseline targets, stretch targets, and other relevant indicators. Break them down as follows:
a. Total CNY performance target, broken down by month, channel type, and product. This is common practice, but the only thing to emphasize is that sales leaders should not make decisions hastily (first pat their heads, then pat their chests, and finally pat their backsides).
b. Distribution and sell-through performance: This refers to the formulation and breakdown of CP and TP. Let me briefly emphasize these two concepts.
CP is consumer promotion, targeting end consumers, also called consumer education or consumer communication. In short, it's about changing their minds, explaining a logical cognitive system, or making them excited in a specific scenario.
In short, you need to make them feel moved; if they are moved, they may take action, or if they are moved, a seed is planted in their minds. Both effects are good. Of course, you still need to think clearly about the purpose and logic, then formulate a plan and execute it perfectly.
TP targets channel partners, including two types: wholesalers, who mainly consider gross margin and turnover speed; and retailers, who, in addition to gross margin and sell-through speed, also consider attracting foot traffic and related sales, the so-called "customer aggregation effect."
For retail, the most important thing is to attract customers. With foot traffic, everything follows; without it, even if you make money, it won't last. Popularity is the most critical factor.
Once you thoroughly understand CP and TP, the logic for formulating distribution and sell-through becomes clear.
c. Resource support for performance: This refers to expense planning, including allocation and support.
For example: Each marketing unit should clearly know its expense rate, which is the bottom line for profitable sales. They should know the scope of expense support (display fees, entry fees, posters, rebates, commissions, etc.), adjustments for key accounts during special periods (KA customers, new distribution customers with key support, etc.), and penalties for violations that waste resources.
d. Performance timeline: Typical items include: When to implement price management? When will distributor payments be received? When will warehouse stocking be completed? When will ordering meetings be held? When to start clearing inventory? When to go all out for shipment? How to wrap up the tail end of CNY? All these need clear time nodes.
2. Outlet Dimension: Strictly speaking, this is about outlet layout, often ensuring that outlets with different channel attributes execute different standard actions during CNY to maximize efficiency.
For example: KA hypermarkets should seize the high ground of displays, balancing brand communication and sales; traditional and chain stores should improve display coverage to ensure product purchase convenience; special channels should increase stock levels to ensure efficient supply for special purchase opportunities (welfare group buying).
3. Time Dimension: Plan the time schedule, detailing the specific work items and target achievements for each stage and each day during CNY. In addition to the key sales nodes mentioned above, this time dimension is more about coordinating with the brand's online brand communication and offline scenario creation. Achieve synergy between online and offline, which I won't elaborate on further.
4. Warm-up Dimension: Christmas and New Year's Day warm-up, seize sales points for stocking, schedule, and display targets at 100% execution, and fire the first shot of CNY. Determine the warm-up execution time, with the core being a review of pre-holiday preparations, including:
a. Distributor side: Stocking, advance payment; b. Channel side: Schedules, displays; c. Promotion side: Promotional staff, tasting, gifts; d. Consumer side: Material production; e. Product side: Entry rate of different SKUs, gift packs, value packs, etc.
Core Actions for CNY Operations
First is the stocking plan, with key points: targets, funds, warehousing, ordering meetings, and advancing core work according to key channel attributes.
1. Distributor Capital Verification and Core Work
Capital verification requirements: 50% of funds in place by a certain date; 75% by a certain date; 100% by a certain date. Be clear on the indicators. The schedule should fully consider the inconvenience caused by the gradual suspension of logistics near the end of the year.
Core work – the "Six Attacks": Attack displays at how many points; attack wholesale at how many outlets; attack schedules at how many stores; attack special channels at how many outlets; attack platforms at how many platforms and how many activities; attack blank markets at how many blank markets.
2. KA and Special Channel Actions
New Year's Day warm-up: Value packs (promotional prices, sufficient single-item inventory), Spring Festival elements, focus on business districts, special channels.
KA and special channel management: KA schedule timeline, improve per-store output of KA stores, systematic stocking of large-pack products (system entry), create how many image stores, and stock quantity for special channel points.
3. Circulation Channel Actions
Traditional management: How many floor stack targets, how many end cap targets, how many column displays.
Wholesale management: Increase wholesale special display coverage to what level, how many wholesale stack box targets, how many hanging net targets, how many special display targets.
4. Platforms and Promotion
Platform schedule management: Schedule requirements (product selection, promotional price limits), stocking and rhythm.
CNY promotion: How many activity stores, how many activity sessions, how many MINI shows.
Next is the action plan, with key points: stabilize price, expand outlets, build positions, promote activity.
1. Stabilize price: At what time node to stop heavy promotions to prepare for the price gap during CNY.
2. Expand outlets: Requirements for distribution rate at different levels of outlets, and requirements for outlet activity rate.
3. Build positions: Choose base markets, base regions, base outlets, and standardize their development.
4. Promote activity: Standardized execution of DM flyers, single-product promotions, promotional staff, and promotional items.
Then are execution details: Standardized execution for KA, special channels, circulation, and platforms.
1. KA Customer Negotiation:
Before negotiation, understand the customer's historical performance, service system, system display status, CP activities, schedule execution, and same-period expense rate;
During negotiation, clarify core elements: Clear goals (performance/display/CP/schedule); Improvement of store control is a prerequisite for contract renewal; Priority supply – priority for new product listings; Expense betting;
After negotiation, follow up on actions: Achievement of advance payment targets; Execution of system store displays, schedules, and CP activities; New product listing dynamics; Expense usage rate.
2. Image Store Creation: Seize store resources + create image materials + arrange activity stores, with responsible persons and execution times assigned. For example: The purpose of building large township stores is to cater to the Spring Festival peak season, focus on building large township stores, enhance channel sales power, and set display targets for how many stores? Requirements for supporting large township stores (A-class large stores with area ≥1000m); Tracking mechanism: Extract data progress via SFA every Thursday before 5 PM; Display standards, etc.
3. Special Channels and Circulation: For special channels, focus on gas stations, service areas, stations and airports, parks, and tourist spots. For circulation, create momentum in wholesale markets.
4. E-commerce Platforms: Platform selection, entry order, price control, etc.
Finally, activity management, with key points: elements, activity planning, formats, sessions, and verification.
1. Activity Planning (including the following 9 points):
a. Determine activity theme b. Determine activity time c. Determine activity type d. Determine activity format: Tasting + shopping guide + buy-and-gift + others (lottery/game interaction/manufacturer linkage/cross-industry cooperation, etc.) e. Determine execution area: Provincial capital/prefecture-level city/county/township f. Determine execution items: Focus on single-item promotion, with other items attached (main promoted item display area not less than 50%) g. Determine activity location: National A/B-class stores, holiday foot traffic hubs (commercial streets, community squares, community entrances, supermarket entrances, parks, Spring Festival markets, etc.) h. Determine location requirements: Indoor 4m2 or above/outdoor 2 tents or more i. Determine activity element requirements: On-site activity materials must use the company's uniformly issued holiday theme elements
2. Activity Location and On-site Layout Guidelines (Case):
In-store location 1: a. Maximize the main aisle position in the store, use material elements to create atmosphere; b. On-site layout: floor stack display + tasting table, add buy-and-gift interactive sessions.
On-site layout elements: Tasting table, floor stack, KT board enclosure, floor sticker, rainbow bridge, door frame, hanging tags. In-store location 2: a. Outside the store at the checkout exit, large supermarket entrances/exits (where foot traffic must pass); b. On-site layout: floor stack display + tasting table, add buy-and-gift interactive sessions. On-site layout elements: Tasting table, display rack (paper small display cabinet), KT board enclosure, floor sticker, rainbow bridge, door frame, hanging tags.
3. Verification Notes (Clarify the content of the table below):
CNY Needs Help Analysis
CNY cannot be executed arbitrarily. You need to go to the front line, listen to and experience the difficulties of frontline personnel. Does the policy formulation match the actual market needs? What needs adjustment? What needs strengthening or abolishing? In short, design a demand help center that analyzes help requests while assisting grassroots in solving problems.
Finally, let me list a few common issues in CNY execution:
1. Insufficient terminal stocking, channel ordering meetings need expense support: In January, the price of main single-item products increased, but terminal retail price adjustments take time, leading to low enthusiasm for terminal stocking.
Suggested solution: Provide additional incentive support for main promoted items at ordering meetings.
2. Shipping issues due to extreme weather: Affected by weather and logistics, shipping cycles are long, and freight costs have risen, affecting product competitiveness.
Suggested solutions: a. Increase production capacity; b. Increase warehouse transfers; c. Complete warehouse transfers and shipping of existing cash orders before the specified time.
3. Mismatch between sales rhythm and stocking rhythm: Grasping the Spring Festival rhythm, distributors face high capital pressure and need rapid turnover.
Suggested solution: Adjust the timing of stocking policies.