---
title: "How to Turn Around a Market That Has Been 'Ruined'?"
description: "In the FMCG industry, marketing teams and distributors often face the challenge of taking over a 'ruined market'—one that has deteriorated from a previously good state, making it harder than a new market due to poor terminal relationships, unresolved issues, and lack of breakthroughs. To break the deadlock, this article proposes a systematic approach: first, set clear goals through 'four determinations' (market, policy, target, incentive), then take proactive actions through 'four do's' (stocking, display, notification, reward), ultimately revitalizing the market."
author: "海游"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2020-03-23"
categories: "Brand Marketing, Industry Trends, Management & Methods"
language: "en"
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markdown: "https://xinjignxiao.com/en/articles/how-to-turn-around-a-market-that-has-been-ruined-431465f4.md"
original_source: "https://mp.weixin.qq.com/s/qfXSFW703fLDkmyYT0VUdw"
translation: "https://xinjignxiao.com/zh/articles/%E6%8E%A5%E7%AE%A1%E4%BA%86%E4%B8%80%E4%B8%AA%E5%B7%B2%E7%BB%8F%E5%81%9A-%E7%83%82-%E7%9A%84%E5%B8%82%E5%9C%BA-%E8%AF%A5%E5%A6%82%E4%BD%95%E7%A0%B4%E5%B1%80-431465f4.md"
attribution: "New Distribution — https://xinjignxiao.com/en/articles/how-to-turn-around-a-market-that-has-been-ruined-431465f4/"
citation: "海游. “How to Turn Around a Market That Has Been 'Ruined'?.” New Distribution, 2020-03-23. https://xinjignxiao.com/en/articles/how-to-turn-around-a-market-that-has-been-ruined-431465f4/"
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---

# How to Turn Around a Market That Has Been 'Ruined'?

> In the FMCG industry, marketing teams and distributors often face the challenge of taking over a 'ruined market'—one that has deteriorated from a previously good state, making it harder than a new market due to poor terminal relationships, unresolved issues, and lack of breakthroughs. To break the deadlock, this article proposes a systematic approach: first, set clear goals through 'four determinations' (market, policy, target, incentive), then take proactive actions through 'four do's' (stocking, display, notification, reward), ultimately revitalizing the market.

In the FMCG industry, brand marketing teams are like a revolving door—one day they join Company A, the next Company B; distributors are similar, switching from Brand A to Brand B, making lifelong partnerships rare. However, a common headache for both brand marketers and distributors is taking over a market that has been 'ruined'.

'Ruined markets' share several characteristics:
> **1) They evolved from 'good markets'; without having been good, they couldn't be ruined; 2) They are harder than 'new markets'—new distributors are reluctant to take them over; 3) Frequent distributor changes have led to poor terminal relationships; 4) There are many unresolved legacy issues; 5) No breakthrough point can be found in products or channels.**

If you're working in such a market, consider the following approaches.

**-01- Clarify Goals: 'Four Determinations' for the Market**

**1. Determine the Battlefield: Assess Potential and Landscape**

The biggest issue in a 'ruined market' is product positioning. With a range of products, which single SKU has the potential to break the ice? This choice is crucial. Once the product is set, channel, price, and promotion issues can be resolved. Choosing wrong means wasted effort; without clarity on product selection, you can't define your target battlefield, leaving you with energy but no direction.

The core logic for determining the battlefield is:

**1) Sufficient Capacity:** This includes both sales volume and profit potential. Only categories with large sales volume can achieve higher success rates, as they are already accepted by consumers, reducing the need for heavy investment in awareness, transactions, and relationships. Large profit potential ensures that once the market is activated, distributors can operate sustainably.

**2) High Growth:** This includes past and future growth. Products should have high growth potential. Study historical data of all brand products—which single SKU once had glory? What was its peak volume? How can it achieve glory again?

**3) Large Share:** The target product should have a strong position within the brand's portfolio, meaning it holds a dominant share of sales.

Products meeting these three criteria are essentially the ice-breaking sword, thus selecting the battlefield. Price, channel, and promotion then become internal issues, to be handled flexibly based on competitors.

**2. Determine Policies: Know Yourself and Your Enemy**

I once encountered a puzzling promotion: a gift box product was promoted on a flyer with an original price of 49.9 yuan per unit and a promotional price of 49.2 yuan. Such a promotion neither boosts sales nor benefits channel profits—what's the point?

The core logic for determining policies is:

**1) Channel Price System:** Product sell-through requires both pull and push. Pull comes from consumers, push from terminal store owners. Thus, the supply price and retail price at terminals are crucial. In today's highly homogeneous market, these two prices in a 'ruined market' should ideally have an advantage; know competitor pricing and fight close to them.

**2) Promotion Models:** There are various promotion models, but price wars are the fastest short-term. Brand marketing budgets are limited, so not all products can be promoted, but heavy promotion on one SKU is common. Therefore, **product combination promotions are a common ice-breaking method in 'ruined markets.'**

For example: Single SKU A flavor costs 30 yuan per unit, B flavor is promoted at 18 yuan this month; combined promotion A+B sells for 48 yuan per set, achieving promotion without damaging the price structure.

**3. Determine Targets: No Battle Without Goals**

With the battlefield set, prices fixed, and channel profits smoothed, lacking targets leads to half-hearted efforts. So, **the ice-breaking battle in a 'ruined market' must have targets, including but not limited to outlet expansion, display counts, target distribution stores, and unit counts.**

**4. Determine Incentives: Incentives Are the Escort for Goals**

Each person should compare daily progress against targets; those meeting daily targets get daily incentives, those failing face daily assessments. Additionally, set weekly and monthly ranking awards. Daily assessments and incentives should be settled at morning meetings—winners share, laggards reflect and receive help to identify problems.

**-02- Proactive Work: 'Four Do's' for the Market**

**1. Do Stocking: Get Products Distributed**

Without distribution, everything remains an idea. **A 'ruined market' is characterized by few cooperative outlets, poor relationships, even trust crises. The first principle of market ice-breaking is speed; the best way to resolve this contradiction is credit-based distribution.**

Credit sales are a double-edged sword, but with two controls, benefits outweigh drawbacks: **First, set a cap on the number of stores per salesperson for credit sales, so they choose the most suitable terminals; second, set a cap on units per store, greatly reducing return risk.**

**2. Do Display: Get Products Visible**

Distribution without display is not true distribution; distribution not aimed at sell-through is not true distribution. **The core principle of display: visible from outside the store (eye-catching displays, large floor stacks), and visible everywhere inside (shelves, coolers, multiple points, floor stacks).**

**Display fees should be flexible, not fixed. In 'ruined markets,' terminals often don't sell but rely on 'eating display fees.'** Link display fees to order quantity or sales volume. For example: basic display requires 10 units near the cash register, earning 1 unit as display fee; additional support: 1 bottle for each extra unit, and an extra unit for monthly sales reaching 100 units.

**3. Do Notification: Make Products Easy to Sell**

After all preparations, consumer notification is key. Content includes but is not limited to promotion details, prices, product info. Common methods for consumer notification involve three steps:

Step 1: Post notices and posters; require sales staff to do it, store owners to maintain, linked to display fees.

Step 2: Sales staff conduct routine route visits, upload photos via terminal systems, ready for inspection.

Step 3: Brand and distributor inspection teams patrol to ensure the quantity and quality of notice boards.

**4. Do Rewards: Sell More**

Well-timed rewards effectively stimulate team sales potential. Common reward models follow five steps:

**Step 1:** Divide the regional market into zones, noting channel, outlet quantity, and quality distribution.

**Step 2:** Set 1-2 targets for the region, such as distribution store count, unit count, month-end payment, display count, or model store creation. It's recommended not to exceed 2 targets to avoid confusion.

**Step 3:** Determine the daily minimum target—the smallest unit for tracking.

**Step 4:** Clarify daily and monthly incentive policies. For example: 30 yuan reward for daily achievement, plus 1000 yuan for cumulative monthly achievement; 30 yuan penalty for daily failure, plus 500 yuan reward if monthly cumulative achieved; if monthly target missed, all rewards are clawed back, but penalties stand.

**Step 5:** At month-end, rank comprehensive performance, rewarding the top 20% of the team, with rewards decreasing by rank.

**Finally:** Ensure clear division of labor and accountability. The distributor owner or GM handles supply, materials, and delivery; sales supervisors track daily data, build key store images, and assist laggards to ensure progress; finance or clerks handle display agreements, fee audits, and daily reward disbursement; sales managers oversee overall training and market visits. Work together to support frontline sales.

**In Conclusion:**

The FMCG industry has long entered an era of overcapacity and oversupply. Under brand sales pressure, low-price cross-region dumping is common. Old product prices are undermined, margins can't support profitability, and aging inventory grows, ultimately reducing distributor service capability, creating one 'ruined market' after another.

**To break the deadlock, brands can either push high-margin new products or use the 'Four Determinations' and 'Four Do's' to rescue the market. However, it's even more desirable to see brands plan targets rationally, enforce market order, and ensure healthy development—after all, prevention is the most important thing.**


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## Citation metadata

- Publisher: New Distribution
- Author: 海游
- Published: 2020-03-23
- Canonical: https://xinjignxiao.com/en/articles/how-to-turn-around-a-market-that-has-been-ruined-431465f4/
- Original source: https://mp.weixin.qq.com/s/qfXSFW703fLDkmyYT0VUdw

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