Warm Tip: Click the blue text above to follow "FMCG Distributor Professional Consulting" for more marketing and distributor management insights.
When distributors choose products to represent, their biggest concern is whether they can pick a product that will sell well. Unknowingly, they get dazzled by manufacturers' smooth talk. Based on years of theoretical and practical experience, I have summarized six key points that are crucial for success from the product perspective. Therefore, when selecting products, distributor friends must keep their eyes wide open, set aside non-essential factors like manufacturer support, and return to the essence of things—to see whether the product itself has strong appeal.
A Good Name Confucius said: "If names are not correct, language will not be in accordance with the truth of things; if language is not in accordance with the truth of things, affairs cannot be carried on to success." A product name may seem simple, but it is actually difficult. A good product name should be easy for consumers to read and write, easy to remember and spread, and also close to consumers, familiar and meaningful, helping to evoke positive brand associations. It should also be unique, one-of-a-kind, and distinctive. When the product name is right, communication with consumers goes smoothly; when communication with consumers goes smoothly, marketing matters also go smoothly.
Therefore, new product communication can start with the name. A good new product name can make consumers keenly sense its own vibe. Products that resonate with consumers naturally receive their favor. Shunxin Agriculture launched a new juice drink called "Zheyang Zi A" (Such Purple), which made fashionable young women feel that this product was made just for them. The name "Zheyang Zi A" comes from the internet slang "Jiang Zi" (like this), and it also easily reminds consumers of the product's attribute of being a mix of purple fruits like blackcurrant, blueberry, and purple grape. At the same time, "Zheyang Zi A" is homophonous with the girls' catchphrase "Zheyang Zi A" (It's like this), making it easy to remember and spread, while still being distinctive.
One of the most classic naming cases is Coca-Cola's "Sprite." In English, it is "sprite," which originally means "goblin" or "spirit," and certainly would not suit Chinese habits. After continuous thinking and verification, it was finally named "Xue Bi" (Snow Jasper)! "Xue" conveys coldness; "Bi" means clear and blue. On a hot summer day, just hearing this drink's name makes you want to drink it. Such characters are worth more than "a thousand gold pieces" per character.
Conversely, there are many cases in the market where complex product names hinder communication. Wahaha has always been praised in the industry for its innovation and pioneering spirit, with successful products like AD Calcium Milk, Shuang Wai Wai, and Nutrition Express. However, at the end of 2008, Wahaha launched a carbonated drink called "Pi'er Cha Shuang" (Beer-Child Tea Refreshing), which was not beer but had a refreshing beer-like taste, and not green tea but had the nutritional health of green tea. The advertising was overwhelming, but the market response was lukewarm. Industry insiders commented that even retailers did not know whether to place this product with tea drinks, with carbonated drinks like Pepsi and Coca-Cola, or on the beer shelf. The brand name "Pi'er Cha Shuang" seemed to try to combine all the product's attributes, not missing any, but in the end, consumers might not think of it when buying tea drinks, carbonated drinks, or beer—pleasing none of the three. Clearly, the product name "Pi'er Cha Shuang" ignored the basic principle that brand naming should be simple and easy to remember.
Compared to spending large sums on advertising, it is worthwhile for companies to put more thought into new product names.
Good Packaging Different colors, materials, and capacities of packaging convey different messages to consumers. Good product packaging can convey rich brand information to consumers, create a shelf effect that differentiates it from similar products, and influence consumers in the last five seconds before they make a purchase decision. Against the backdrop of an uncertain economic situation and increased risk in marketing investment, product packaging, as the last medium of marketing communication, becomes particularly important!
Back then, Nongfu Spring of Yangshengtang used its bottle cap as a differentiated marketing selling point, and once moved many consumers who liked novelty with the slogan "Don't make this sound during class." It should be said that Nongfu Spring's differentiated packaging played a very significant role in the early stage of the bottled water market, which was highly homogenized.
A Good Selling Point Relevant research by Nielsen Market Research shows that the difference in advertising appeal can lead to product sales differences of more than three times. In an era of endless new products, abundant product variety, and crowded advertising information, the principle that "less is more" and "the fewer selling points, the more returns" has been accepted by many marketing professionals. However, various media still feature advertisements with complex appeals. The reason may be that company leaders and new product managers treat their new products like their own children, always believing their child has too many advantages to give up.
The most important thing in new product advertising is to communicate the core benefit to consumers and the differentiation from similar products. A phrase like "Nongfu Spring is a bit sweet" differentiated Nongfu Spring from similar products; "27 layers of purification" made consumers think of Robust's pure quality; consumers afraid of getting heaty would think of Wanglaoji. These are all successful cases of focused and precise advertising appeals. In contrast, the appeal "Drink Red Bull when thirsty; drink Red Bull when sleepy or tired" is too much and too mixed. When thirsty, consumers might first think of water; when sleepy or tired, they might first think of rest, or maybe some health supplements—where does Red Bull fit in?
Advertising master Ogilvy said: "If a good theme for a refrigerator ad can sell refrigerators to couples married last year, it can also sell to couples married this year." Refining a precise and focused advertising appeal is not easy, so once established, it should not be easily changed. Advertising is an art of repetition; the less you communicate, the more you get.
Under the premise of conveying the product's core benefit, the more an ad can attract consumers' attention and media attention, the better. During economic adjustment periods, creative and novel ads can save advertisers a considerable amount of media investment.
A Good Test It is common to see new product ads launched hastily with great fanfare, only to be quickly halted due to lukewarm market response. Companies intend to seize the initiative, but inadvertently become martyrs who educate the market for others instead of pioneers who harvest the market. From an advertising perspective, there are two reasons: first, the product itself has problems and cannot gain market recognition; if the direction is wrong, no matter how good the creativity, everything is in vain. Second, the creativity is wrong; the ad does not clearly convey the product's core benefit to consumers. Some are praised but not purchased, and some are neither praised nor purchased. In the final analysis, it is all because strict testing was not conducted before the ad was officially launched.
It should be said that most new products, from concept generation to development, are accompanied by consumer research processes, and before the ad is launched, there are also various forms of testing such as focus groups. Even if the results of all these tests are fine, the step of selecting a regional market for testing is still indispensable. After all, the former is only research under certain conditions and experiments divorced from market reality; the real market is much more complex than limited research and virtual experiments.
During the ad trial broadcast period, companies can, on one hand, understand consumers' reactions to the product concept and core benefit points highlighted in the ad, to further optimize the ad creativity and product selling points. Whether consumers attempt to purchase after seeing the new product ad is an important basis for confirming whether the new product has a market and how big it is. On the other hand, companies can understand the return on investment of the established media strategy and media mix in the real market, estimate the media budget and market space after the new product's official launch, and further optimize the media strategy for the new product's launch. For example, Wanglaoji herbal tea, in its early launch stage, also underwent repeated testing and continuous improvement, ultimately refining the core selling point "Afraid of getting heaty? Drink Wanglaoji" before it became a hit.
During economic adjustment periods, testing before the official launch of new product ads is particularly important. This is because economic adjustment periods are accompanied by adjustments in consumer psychology and behavior. Recently, the financial storm has swept the globe, and everyone is tightening their wallets. Products, whether in design, packaging, or communication, must strive for effectiveness and simplicity. If one blindly pursues luxury, there will certainly be no market.
A Good Media Strategy The first VCD in China was made by Anhui Wan Yan Company, but it was the faster-promoting "Aiduos" that harvested the profits of the VCD market. Philips of the Netherlands launched the first video recorder three years ahead, but it was Japanese electronics manufacturers with faster R&D that dominated the global video recorder market. It is regrettable that some companies lose the market because of their snail-paced new product development and promotion. Technological progress and intensified competition have greatly shortened new product development cycles and accelerated the pace of market launch. How to quickly increase awareness and seize the market in the early stage of a new product launch is the first theme that lingers in the minds of new product managers.
Whether to adopt continuous, flighting, or pulsing advertising modes depends on the product type and its uniqueness, the depth of the company's pockets, and competitors' media strategies. Obviously, for new products, pulsing advertising is more conducive to quickly increasing awareness in a short period, catching competitors off guard, facilitating distribution recruitment, and thus rapidly igniting the market.
In terms of specific media budget allocation ratios, some industries habitually follow the 352 rule, where the marketing spending ratio for the introduction, growth, and maturity stages is 3:5:2. This rule seems low-risk, but for new products that have undergone strict testing and companies with mature distribution channels, it is overly cautious. It is not conducive to quickly seizing consumers' mind space in a short period. The new product may die before it even starts, becoming the frog that dies in warm water, ultimately causing great waste.
Generally speaking, the more advertising investment, the higher brand awareness and product sales. The effect of advertising is best in the early stage. As advertising spending increases, the cumulative effect still increases, but the marginal effect diminishes. When advertising spending reaches a certain level, the effect enters a plateau, and it is difficult to see significant improvement (for example, in recent years, the advertising for Brain Gold has been greatly reduced compared to before). Therefore, the 532 rule is more suitable for new product marketing budget allocation, where the marketing spending ratio for the introduction, growth, and maturity stages is 5:3:2. This achieves the goal of increasing investment in the early stage when advertising effect is best and quickly starting the market, while also ensuring a certain proportion of marketing investment in the growth and maturity stages, avoiding the sudden death of new products due to overly concentrated marketing investment. During economic adjustment periods, overly concentrated marketing investment in the early launch stage may also cause resentment and resistance from consumers who are tightening their belts.
Good Terminal Communication Last night before going to bed, I watched a beverage ad that cost 1 million yuan to produce and 50 million yuan to broadcast. Today, when I went to the supermarket after work to buy a drink, the ad from last night still flashed in my mind. Suddenly, my eyes lit up—another brand had launched a promotion of buying one get one free, with an eye-catching display. I couldn't resist; I grabbed it and rushed to the checkout. I had completely forgotten the brand image ad. I believe you are not surprised or unfamiliar with such a scene.
"Hearing a hundred times is not as good as seeing once." No matter how good the online communication is, if consumers cannot see the product in the store, it is all in vain. This is the power of distribution channels. Two products with different distribution speed and channel coverage may end up with vastly different results.
Against the backdrop of an unclear economic situation and the declining effectiveness of advertising, cost-effective terminal communication should receive more attention. Relevant research by Nielsen Market Research shows that for a new product with limited total marketing investment, even if online advertising investment is small, as long as terminal displays, shelf displays, and various promotional methods are increased to encourage trial purchases, it can still stimulate sales.
When consumers come to the sales terminal to inquire about a product, they come with both demand and interest in the product, as well as doubts about it. At this time, the role of terminal sales staff who directly face consumers becomes prominent. The job of terminal sales staff is to strengthen and consolidate consumers' existing confidence and goodwill toward the product, while dispelling their doubts and concerns, ultimately prompting consumers to decide to purchase the product. This requires terminal sales staff to be thoroughly familiar with the product information. The company's job is to use various methods to motivate them to actively recommend their products and improve their product knowledge.
"Seeing a hundred times is not as good as trying once." Distributing samples or inviting trial tastings at the sales terminal to target consumer groups, although costly, is still a worthwhile deal compared to online advertising investment. Nestlé Coffee does this very well. In major supermarkets in large and medium-sized cities, you can almost always see Nestlé Coffee's terminal displays, tastings, and promotions. You can immediately see the difference from other promotions: exquisite and beautiful promotional stands, beautiful and generous promotional girls, unified standard scripts... As soon as you enter the supermarket, you encounter promotional girls in red clothing offering free coffee tastings, while nearby promotional girls tirelessly inform about promotional discounts, and behind them, promotional staff on the display recommend to approaching customers. The entire promotional action is orderly, and the interception effect is so strong that few people escape. All this reflects the big brand image of a multinational company.
Like this article? Feel free to click the top right corner to share it to your Moments.
About us: WeChat ID: FMCG Distributor Professional Consulting Management Account Introduction: 20 years of FMCG distributor operation and management experience, professionally targeting distributor internal management.
Click the "Read Original" below to enter our micro-community for interactive communication and questions.
Learning and Exchange QQ Group: 344257092
Reply 1 to enter the micro-official website to view historical messages.