---
title: "In Terminal Operations, No Merit Means Failure!"
description: "The importance of terminal operations is widely recognized in the industry, but many companies fail to implement them effectively. This article emphasizes that terminal development and management are essential for all enterprises and distributors, outlining key strategies and critical points for success."
author: "丁永证"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2016-10-02"
categories: "Distribution & Channels"
language: "en"
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markdown: "https://xinjignxiao.com/en/articles/in-terminal-operations-no-merit-means-failure-f2a9fe51.md"
original_source: "https://mp.weixin.qq.com/s/gydeagVLzo_9xmtsQWL3qA"
translation: "https://xinjignxiao.com/zh/articles/%E5%81%9A%E7%BB%88%E7%AB%AF-%E6%97%A0%E5%8A%9F%E4%BE%BF%E6%98%AF%E8%BF%87-f2a9fe51.md"
attribution: "New Distribution — https://xinjignxiao.com/en/articles/in-terminal-operations-no-merit-means-failure-f2a9fe51/"
citation: "丁永证. “In Terminal Operations, No Merit Means Failure!.” New Distribution, 2016-10-02. https://xinjignxiao.com/en/articles/in-terminal-operations-no-merit-means-failure-f2a9fe51/"
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---

# In Terminal Operations, No Merit Means Failure!

> The importance of terminal operations is widely recognized in the industry, but many companies fail to implement them effectively. This article emphasizes that terminal development and management are essential for all enterprises and distributors, outlining key strategies and critical points for success.

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The importance of terminal operations has reached a consensus across the industry. Terms like "Decisive Terminal" and "Terminal is King" are regarded as classics in the business world. However, from an operational perspective, the market results show: much thunder, little rain. Every marketing professional has not treated terminal development as a strategic task.
There was a period when the marketing community held certain misconceptions, believing that so-called deep distribution, direct distribution models, and the "disc-in-disc" theory were merely forward-looking marketing theories, just tools for consulting firms to fool enterprises. Even if used, they were only operational models for first-tier brand companies. For small brands with low sales, directly engaging in terminal operations was still very difficult, even unrealistic.
If such understanding existed three years ago with some hesitation, it could be understood. But if one still clings to their traditional distribution channels now, the enterprise can only face a dead end.
Every marketing professional, including our distributor teams, must seriously address terminal development and operations from the perspective of the enterprise's position, strategic height, operational level, and competitive needs. Operating terminals is the only path for all enterprises and distributors:
**I. The Importance of Terminal Operations.**
**1. The Need for Opportunities and Challenges.** Intensifying market competition has led to further channel下沉, and the original channel models have undergone profound changes. County-level agents are gradually being replaced by township-level agents. All enterprises are facing terminals directly, helping distributors control terminals.
If around 1998, companies like Sbao first proposed the concept of terminals, and the conditions for terminal operations were not yet mature, then after 15 years of development, enterprises focusing on terminal operations have sprung up like mushrooms. The deep distribution systems represented by Master Kong and Coca-Cola, and the skillful application of the "disc-in-disc" theory in Hui liquor, have achieved tremendous and significant results. However, many small enterprises are busy with sales, theories have lagged behind, and the battle for terminals is intensifying. Therefore, in this battle for terminal operations, every marketing professional should be highly alert, doing their utmost, with dedication, responsibility, and wisdom in terminal market operations. Standing by or being negligent will miss opportunities and make us the culprits of the enterprise.
**2. The Need for Model Transformation.** In FMCG, the focus is on channels, and the key to channels lies in terminals. If five years ago, sales representatives could still work around distributors, now they will find market operations increasingly difficult because relying on stimulating distributors to adjust the market landscape will gradually become a joke. Now, terminal competition is no longer between distributors but between enterprises' top players. In terminal operations: physical promotions, empty package exchanges, investment in large promotional items like freezers and display cabinets; establishment of terminal files, market research—all require marketing personnel to do. Working around distributors will not bring significant market improvements. The marketing environment is changing, marketing models are changing, and our operational thinking must also change, shifting to a terminal-oriented approach.
**3. The Need for Competitive Development.** With escalating competition, both products and promotions are upgrading, and market investment is increasing. In previous years, promotional activities often resulted in "promotion without sales," mainly because the promotion flow, product flow, and information flow became a spent arrow by the time they reached the terminal, with much being intercepted, leading to ineffective terminals. Now many enterprises directly participate in terminals, inevitably intensifying competition. If they do not participate in terminal competition, their products will be pushed out of the market.
**II. Key Points in Terminal Operations.**
The market is built, not shouted. Therefore, marketing personnel must seriously treat terminal operations from the enterprise's height, grasp the key points, and do practical work:
**1. Selection of Terminal Model:** There are generally three models for terminal operations: deep distribution, disc-in-disc, and direct distribution. As for what consulting firms say about some models being outdated, that is nonsense and irresponsible to enterprises. Enterprises should choose their marketing model based on their own strength, marketing environment, and competitive conditions.
**2. Terminal Development:** Terminal development is a systematic project worthy of research and study by every enterprise.
1) Develop terminal development plans and processes: including terminal distribution processes, new product launch plans, consumer pull, secondary distribution plans, strong terminal inventory occupation plans, terminal investment agreements, etc.
2) Recruitment, training, assessment, and management of terminal personnel. There are no small matters in terminals; the key is to focus on details and management. Otherwise, terminal development is just empty talk.
**3) Develop terminal development plans:** There is much foundational work to do, such as:
A. Investigation and organization of terminal basic files: During the process of iodized salt at terminals, we can collect useful information. Some terminals are large but sell little alcohol; some look insignificant but sell a large volume. This is crucial for terminal investment.
B. Terminal follow-up visits and information feedback. Market problems to solve and negotiations for terminal investment are all resolved during follow-up visits.
**4) Implementation, monitoring, and information feedback of terminal development.** Terminal development must be carried out step by step, not overnight. Ensure information feedback, monitor closely, and guard against deviations in terminal management.
A. For the production of store signs, freezers, and display cabinets, there must be agreements and sales volume limits.
B. Terminal development must consider the enlightenment education of terminal consumers. For example, white liquor enterprises' terminal marketing has shifted from the "disc-in-disc" of catering terminals to the consumer "disc-in-disc." Guiding consumers, especially leader consumers, has become the trend and direction for enterprise terminal development.
C. For terminal sales, statistics must be kept and the completion of terminal sales must be supervised.
**5) Terminal Evaluation.** The purpose of doing terminals is, first, to establish model markets and create atmosphere, and second, to make money. Therefore, enterprises should stand at a certain height, evaluate all terminals, assess investment and demonstration effects from a global perspective, comprehensively evaluate market issues, and provide favorable guarantees for the healthy and sound development of the market.
**Understanding of terminal development:**
1) Development of product markets at existing terminals, upgrading original terminal products, from selling ordinary beer to selling new generation or higher-grade products.
2) Deep development of existing market terminals. Many catering or retail terminals, although our products have entered, our product sales may not dominate, or even remain unsold for a long time. Therefore, strengthen communication, visit existing terminal personnel, enhance merchandising, POP posting, and other activities to gradually activate products.
**3. Terminal Management.**
Terminal market management is meticulous work that requires constant repetition. Terminal management includes three aspects:
First, daily management of terminal sales visit personnel.
Second, daily management of catering and circulation terminals, including POP posting and other terminal visualization tasks, checking the utilization of freezers, display cabinets, and store signs. With any slack, our market investment may be greatly discounted. Therefore, marketing personnel must take responsibility, have a strong sense of responsibility and mission, and not let enterprise resources go to waste.
Third, risk control management of terminals. In fact, many distributors are reluctant to do terminals largely because terminal accounts are a headache. Therefore, when doing terminals, seek breakthroughs in mindset and methods to guard against market risks.
Terminal work is a mission on our shoulders. To do business, one must do terminals. Although terminal work is hard and tiring, every marketing professional must truly take responsibility.
Once an enterprise chooses to do terminals, there is no turning back. After all, an arrow shot cannot be retrieved. If not done well, no merit means failure.
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08:00-09:00 Registration
09:00-09:05 Host opening
09:05-09:35 2016 China FMCG Industry Trend Analysis Report — Zhao Bo
09:35-10:05 FMCG Enterprise Transformation Strategy and Path — Liu Chunxiong
10:05-10:35 Opportunities and Challenges Brought by FMCG Channel Transformation — Liu Zhao, CEO of Waiqin365
10:35-11:05 Reconstructing Distribution Channel System, Promoting Urban Retail Upgrade — Tian Yuan, General Manager of Alibaba Retail Link Backend
11:05-11:25 Channel Efficiency in the Internet Era — Fu Xiaoyun, Vice President of Benlai Holding
11:25-12:00 Roundtable Forum — Brand Transformation: Improvement vs. Reconstruction?
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13:30-13:50 Distributor Transformation: City Distribution Trend Development — Wang Qi, CEO of Weijie City Distribution
13:50-14:20 Roundtable Forum — Why Should Distributors Do Logistics in Transformation?
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14:20-14:40 How FMCG Enterprises Leverage the Internet to Take Off — Wang Hui, E-commerce Operations Director of Xijiu
14:40-15:00 Detailed Explanation of Zhongshang Huimin's "One Machine, Two Wings" Strategy — Su Xiaoxin, Vice President of Zhongshang Huimin
15:00-15:20 Category Value and B2B E-commerce Development Strategy — Wang Chaocheng, CEO of Yijiupi
15:20-15:40 Supply Chain Finance as a Lubricant for B2B Driving Traditional Business — Chen Xian, CEO of 51 Order
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## Citation metadata

- Publisher: New Distribution
- Author: 丁永证
- Published: 2016-10-02
- Canonical: https://xinjignxiao.com/en/articles/in-terminal-operations-no-merit-means-failure-f2a9fe51/
- Original source: https://mp.weixin.qq.com/s/gydeagVLzo_9xmtsQWL3qA

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