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All things are difficult before they are easy, but we also know that a good beginning is half the battle!
Launching a new product is no longer as simple as it used to be, when distributors would pay for goods and then distribute them at the suggested retail price. Industry competition, channel competition, network impact, and consumer choices all make new product launches more challenging. Merchants often ask me what preparations are needed before launching a new product. This article explains the steps for launching a new alcoholic beverage in a regional market.
Step 1: Set Five Policies Before Launch
Set your launch strategy before going to market. A good strategy can double your results with half the effort, while a blind start can be counterproductive and demoralizing, turning the market into a 'half-baked' situation. Pay special attention to the following policies:
1. Display Policy: Offer rewards for product displays to secure shelf space. Prepare display contracts in advance. For example, require a 3x3 product display and give one free bottle per month for maintaining the display. This is currently the most effective way to showcase products in key outlets; adjust according to your market conditions.
2. First Order Policy: Offer incentives for the first order to encourage stocking. Keep the threshold low to stimulate purchases. For example, buy 2 cases of product in cash and receive a free bottle of cooking oil (or other high-value items like rice, flour, or an electric cooker). This is a one-time offer and cannot be extended.
3. Key Outlet Policy: Prepare key outlet policies and contracts in advance. Common basic items include monthly rebates, quarterly rebates, merchandising rewards, wedding banquet recommendation rewards, and tasting event support.
4. Launch Theme Activity: Plan a consumer promotion activity to accompany the launch. Use the event to create buzz and lower the barrier to trial, increasing the likelihood of first-time purchases.
5. Salesperson Incentive Policy: Prepare incentives for your sales team before the launch. Basic reward items include:
Sales commission, e.g., 60% paid in the current month and 40% at year-end;
Task achievement bonus: set monthly targets; if achieved, give a fixed reward or multiply the monthly commission by a factor, e.g., monthly commission * 1.1;
Outlet development reward: give a reward for each new outlet opened;
Phased rewards, including phased distribution rewards and phased display rewards.
These five policies must be determined before launching. Also, prepare all necessary materials in advance and provide systematic training to sales staff so they can clearly and fluently communicate the policies to outlets.
Step 2: Select Target Outlets with 5 Key Points
Before launching, thoroughly survey all terminal outlets in the area and selectively choose target outlets. Beverage merchants understand the '80/20' principle; avoid spreading resources too thin. Focus limited resources on effective outlets for good results. Follow these steps:
1. Determine Outlet Types: For small bottle liquor, focus on C-class restaurants and small supermarkets; for boxed liquor, focus on tobacco and alcohol stores.
2. Identify Business Districts: For example, 'restaurant streets', core office areas, government agency surroundings, and central plaza areas are all mainstream business districts.
3. Choose Outlets Near Competitors: Prioritize outlets where same-price competitors have high sales. Classify outlets into three levels:
Core outlets: those willing to cooperate deeply and sign core outlet contracts; they are the main venues for sales, atmosphere, and volume growth;
Display outlets: those with good locations and image, with certain sales capability; they help increase distribution rate and supplement atmosphere and sales; sign display contracts with them;
Ordinary outlets: those with average conditions or weak willingness to cooperate; can postpone efforts.
4. Concentrate Initial Outlets: For the first batch, choose outlets in a specific advantageous area. Follow these principles: 1) easy first, then difficult; 2) core areas first, then ordinary areas; 3) thoroughly cover each area. Concentration helps focus team energy and resources to create atmosphere and drive sales in a small area, and facilitates follow-up work.
5. Register Initial Outlets: For the first batch of outlets, establish a filing system in advance. Record detailed information for each outlet, such as name, phone number, location, policies enjoyed, current main products, store size, and group purchase resources, to facilitate follow-up visits. Many merchants overlook this simple but important task.
Step 3: Complete Rapid Distribution in 5 Steps
Rapid distribution has clear advantages: speed, efficiency, no time for competitors to react, consistent execution, team training, and quick impact. Follow these steps:
1. Prepare Tools: Prepare terminal visit record forms, terminal summary forms, products for distribution, gifts, and promotional materials (price tags, display racks, etc.).
2. Plan Routes: Analyze the target area and plan several routes based on outlet distribution and traffic conditions. Aim for each team to cover one route per day.
3. Form Assault Teams: Organize sales staff into assault teams. The best combination is one team with one vehicle and three people, led by the sales manager or supervisor, with salespeople learning on the job.
4. Execute Distribution: With tools ready, start distribution according to the planned teams and routes. Remember to fill out terminal visit record forms and terminal summary forms.
5. Summarize and Revisit: After a team completes three routes, spend half a day summarizing and studying, then revisit the routes from the previous three days with tools.
Step 4: Hold Launch Meetings Based on Situation
Holding a launch meeting is the main way to launch a product in a regional market, quickly building influence.
Early Launch Meeting: If the distributor has good channel resources, invite familiar target customers to a launch meeting before distribution. Announce policies collectively and invite orders to achieve a quick start.
Mid-Launch Meeting: If distributor resources are limited and cannot support a meeting at launch, hold the launch meeting after the first round of distribution when a second order is needed. Announce policies collectively and invite orders.
The above are my personal insights on launching new alcoholic beverages in regional markets. From entry to bestseller in a specific market is a long process that requires meticulous consumer cultivation.
Source: Tiantian Tangjiuhui