---
title: "Inventory, Distribution, Observation, Assessment, Attack, Activation, and Protection: A Deep Dive into Key Issues in New Product Launches!"
description: "New product launches may appear to be strategic and tactical issues with ever-changing rules, but they deeply reflect a company's overall strategic thinking. For FMCG new product launches, speed is paramount, followed by systematic execution, regional and resource focus, and single-point breakthroughs. This article provides practical insights into the dynamic process control of new product launches—covering market inventory, distribution, observation, assessment, attack, activation, and protection—to offer guidance to FMCG companies."
author: "王传才"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2019-12-27"
categories: "Brand Marketing, Capital, Earnings & M&A, Management & Methods"
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# Inventory, Distribution, Observation, Assessment, Attack, Activation, and Protection: A Deep Dive into Key Issues in New Product Launches!

> New product launches may appear to be strategic and tactical issues with ever-changing rules, but they deeply reflect a company's overall strategic thinking. For FMCG new product launches, speed is paramount, followed by systematic execution, regional and resource focus, and single-point breakthroughs. This article provides practical insights into the dynamic process control of new product launches—covering market inventory, distribution, observation, assessment, attack, activation, and protection—to offer guidance to FMCG companies.

New product launches may appear to be strategic and tactical issues with ever-changing rules, but they deeply reflect a company's overall strategic thinking.
**The first characteristic of FMCG new product launches is speed**, because without speed, there is no successful future for FMCG.
This is why Chinese FMCG companies have emphasized execution and attention to detail in recent years; the most important reason is that the pace and efficiency of new product launches are increasing. Rapid market promotion and mature market development have become key to FMCG companies winning in the market.
**The second is systemization**. FMCG marketing is a vast system, and any weak link can affect the progress and efficiency of a product launch—from production to logistics, from planning to promotion, from management to execution, from resources to environment. Therefore, building a mature marketing system is a strategic goal that FMCG companies strive for.
**The third is a focus strategy on regions and resources**. For a new FMCG product to succeed, it must establish its own base market, because a stable base market provides cash flow, good experience, and room for strategic adjustment for the entire market.
**The fourth is single-point breakthrough for new FMCG products**. Do not underestimate the single-point breakthrough in FMCG; opportunistic breakthroughs may bring us key nodes for systematic thinking and breakthroughs. Therefore, I have always believed that single-point breakthroughs are valuable assets for FMCG companies.
This article provides FMCG companies with insights from an experiential and practical perspective, through the dynamic process control of new product launches—namely, inventorying the market, distributing, observing, assessing, attacking, activating, and protecting the market—to examine and focus on key issues in FMCG launches, offering some inspiration and general characteristics and patterns of new FMCG product launches from an experiential standpoint.
**-01-**
**Inventorying the Market**
Inventorying the market is a prerequisite for ensuring the successful launch of an FMCG product. We often call this doing homework before the new product launch. An old Chinese saying goes, "Forewarned is forearmed; without preparation, you will fail." The market inventory before launching a new FMCG product is particularly important.
How to inventory the market? The level of detail in the inventory has a significant impact on subsequent market activities. Given the characteristics of FMCG, we believe the following elements need careful inventory:
**1. Dealer Resource Inventory**
Dealers are important strategic resources for FMCG companies. If chosen well, the company may be very happy; if chosen poorly, the company may face many switching costs, just like in marriage—the right fit is the best.
Dealer investigation involves both **quantity and quality**. In terms of quantity, the main focus is on perspective selection. Experience shows that for FMCG dealers, soft and hard strengths should be balanced. Especially for small and medium-sized enterprises with poor cash flow, the vulgar concept of "any provider is good" should be abandoned. Large enterprises with strong financial resources also need to pay attention to the dealer's own funds and personnel strength to reduce systemic resistance to new product launches.
Dealer credit and strength investigation:
1. Region: The regional market the dealer covers, and judgment of regional channel resources;
2. Level: The level rating of the regional market in the overall marketing strategy; generally, provincial capital cities are rated A-level;
3. Address: Office, business address, warehouse address, etc.; it is best to know their home address;
4. Start of business: Evaluate the dealer's understanding of the market from their experience, and judge their ability to withstand market risks;
5. Previously operated brands: Judge the dealer's soft strength from the quality of the brands they represent, and determine whether they match the attributes of your product;
6. Dealer's education, experience, and hobbies: Judge the dealer's character and professional ability;
7. Dealer's personal asset status: Storefront, transport vehicles, warehouse, fixed assets, bank accounts, organizational books, capital amount, business license, peer evaluation, reputation, etc.
8. Others: Cooperation status with related manufacturers, current business situation, etc.
**2. Channel Outlet Inventory**
FMCG channels are wide-channel systems, so researching channel outlets in the target market is a deep and meticulous task that requires not only patience but also carefulness. Generally, there are 7–8 types of FMCG channel outlets.
Examples include KA, catering, KB, wholesale, retail, entertainment, special channels, and group buying. Generally, channel outlet inventory requires making a basic judgment of the channel system and having a rough understanding of the sales share of each channel outlet, which facilitates the rational allocation of human and promotional resources in marketing.
For example, if a product is to be launched in May, we conducted outlet research in Lincang, Yunnan, and obtained a rough distribution table of outlets in this market. With this concise data, we can judge and estimate the approximate sales volume of various channel outlets.
**Linxiang District, Lincang: KA 2, Catering 80, KB 20, Wholesale 30, Retail 280, Total 412.**
Linxiang District, Lincang, is a relatively economically underdeveloped ethnic region; KA is clearly not the main channel outlet in this market. The 280 retail outlets indicate that this market is essentially a very marginal and fragmented regional market.
However, when we researched Yingjiang County, we found that although it is a county-level market, due to its proximity to the border, its actual trade is more developed than the commercial channels of the prefecture-level city of Lincang. If we only rely on regional divisions and make assumptions, our market strategy could face major mistakes.
**Yingjiang County (including Heihe): KA 10, Catering 120, KB 20, Wholesale 14, Retail 146, Total 310.**
For products that are "plate within plate" (a strategy for high-end products), channel outlet research must be strict to specific store names and locations, store size, customer structure, consumption level, etc. Even the per-table consumption standard and the consumption situation in the hall and private rooms should be described in detail. Therefore, channel inventory is a very deep and meticulous task.
**3. Consumption Capacity Inventory**
Consumer capacity inventory is important indicator data for a company to decide at what price and in what way to communicate with consumers.
Consumer capacity inventory includes both macro-level economic indicators and micro-level descriptions of consumer behavior habits and actual consumption capacity. Before entering a market, an FMCG product's media strategy and promotional methods are closely related to consumer consumption capacity.
**(1) Effective consumer population.** If our product targets children aged 5–15, we should use the child population as the main statistical indicator. If our product covers all people, we mainly count the total population. Population indicators generally come from the local government's annual statistical yearbook.
But note that the statistical yearbook should be the latest version; do not use outdated data to avoid misjudging market positioning;
**(2) Annual per capita income and economic consumption indicators.** Regional economic indicators are usually described in depth in the government work report at the annual People's Congress; consider collecting this information;
**(3) Consumer behavior habit insights.** Consumer behavior is not necessarily consistent with actual economic consumption capacity. We say that Yunnan's total economic output is not very high in mainland China, but this does not hinder Yunnan's catering industry from being very developed.
Henan's GDP has reached one trillion yuan, but catering consumption in Henan is still relatively conservative. Consumer behavior habits also manifest in consumer media, entertainment, venues, values, etc. Therefore, consumer behavior insight is both quantitative and qualitative analysis. The main purpose of consumer insight in regional markets is to quickly find a good breakthrough for new product launches, especially for regional brands.
**4. Competitive Brand Inventory**
Inventorying competitive brands mainly helps judge the barriers to entering the market for an FMCG product. Competitive brands are divided into direct and indirect competitors. Let's take Gejiu City, Honghe Prefecture, Yunnan, as an example to see the competitive brand inventory strategy.
Gejiu is China's famous Tin Capital, with a small city scale of 200,000 people, but a high consumption structure. When we launched a milk fruit plate product, the competitive brand inventory revealed the barriers to entering this market.
**First, national brands.** Because Gejiu was once the seat of the prefecture government and the tin industry is developed, many national brands are optimistic about this market. In Gejiu, the main national dairy brands include:
Wahaha's Nutrition Express. This is the biggest and most direct competitor for Duohe Dairy's new product launch. From the product line perspective, Duohe Dairy's product is exactly like Nutrition Express.
Nutrition Express's strong execution is bound to be the biggest challenge for Duohe Dairy. Facts have proven that when Duohe Dairy's 1-liter product became popular in Gejiu and even the Yunnan market, Nutrition Express quickly launched a 1-liter version and firmly locked onto our product in price strategy.
Liziyuan series dairy beverages have been deeply cultivating Yunnan, and their low-end products and high distribution rate have an impact on us that cannot be underestimated.
**Second, local strong products and brands.** After all, consumers' perception of milk products is more based on a simple form. Yunnan is also a highly competitive market for China's dairy industry.
In terms of quantity, there are nearly ten large-scale dairy enterprises in Yunnan, including Dengchuan, Xuelan, Laise'er, Qianjin, Haizi, Zhadian, etc., not including Liziyuan and Wahaha, which have already built factories in Yunnan. Therefore, we must have a very clear understanding of local brands and be cautious about their tactical moves.
Substitute competitive products. There are even more substitute competitive products from the beverage industry. Uni-President's Fresh Orange, Master Kong, Coca-Cola, etc. As FMCG, substitute competitive products have a significant impact because changing consumer beverage habits means fighting against old forces.
Counterfeit products impacting the market. As the milk fruit plate moved in the market, a very similar product appeared: Milk Fruit Garden. This product not only has a very similar name but also copies the entire design style. The main concern with counterfeit products is the price system, as their costs may be very low.
The market inventory before a new FMCG product launch should ideally result in a clear market report. A concise market report is very important for management to formulate the launch strategy for the regional market. The report should not be comprehensive but rather lean, simple, transparent, and accurate. Only then can the decision to launch a new product be based on scientific and rational grounds.
**-02-**
**Distribution**
**Distribution is the key link determining the success of an FMCG product.**
At a national marketing conference, a multinational FMCG company said something very sincere: the most important gap between domestic FMCG companies and multinational FMCG companies is market distribution rate. They gave an example to illustrate the importance of distribution rate for FMCG companies:
Generally, multinational companies like P&G, Coca-Cola, Master Kong, and Uni-President have market distribution rates above 80%. Domestic excellent FMCG companies like Wahaha and Nongfu Spring can generally reach 60–70%. Poor local companies have very low distribution rates, generally only 30–40%. Therefore, distribution rate is the most important key indicator for the successful entry of a new FMCG product.
New product distribution is a task that requires both effort and skill. The execution of new product distribution is a marker of a company's grassroots marketing capability, so FMCG companies across the country talk about execution. There is a key node to note in FMCG new product distribution:
**1. Formulation and implementation of distribution policies.** Due to the abundance of FMCG products, merchants' shelves are becoming increasingly limited. So even if you offer free consignment, merchants may not have shelves for you. Therefore, appropriate distribution policies are the guarantee for successful new product distribution. At the same time, distribution policies should prevent becoming a hidden killer of future market cross-regional selling. Facing thousands of outlets, distribution policies must ensure they do not affect future market operations.
**2. Investment and output of distribution advertising resources.** To reduce resistance to new product distribution, supporting three-dimensional media placement is also a necessary foundation. Merchants are no longer as naive as before; without advertising resource investment, distribution will be very slow. Mature FMCG companies will launch a round of advertising campaigns when launching new products.
**3. Dealer mobilization and participation.** Without dealer participation, it is unrealistic for a company to complete distribution independently. Therefore, we see that many mature FMCG companies may have few of their own personnel, but their dealer personnel are absolutely strong. We say we need to find dealers with strong operational capabilities, and the dealer's personnel structure is a criterion for judgment.
Generally, dealers will temporarily increase temporary staff to complete distribution in a short time. At this time, the company should provide pre-job training and guidance for operators and supervise and manage the distribution process.
**4. Timing of distribution.** The timing of new product distribution is also very important. For example, beer products generally do not choose to distribute on a large scale in winter; liquor products generally choose winter distribution; non-alcoholic beverages generally choose summer distribution.
The development of things has its dialectical side. Many products also use seasonal reversal for distribution and achieve good market results. For example, distributing new beverage products in winter. The advantage of winter beverage distribution is that distribution costs can be greatly reduced; the disadvantage is that consumer activation is not ideal.
**5. Terminal material display during distribution.** Based on experience, terminal material display during distribution is generally considered to follow before or after distribution. Posting before distribution helps create momentum, educate consumers, and create an environment conducive to distribution through ground activities; posting after distribution helps activation, as consumers start to compare the product with the promotional poster, facilitating trial purchases.
**6. Several details in distribution:**
(1) Safety. New product launches inevitably impact the markets of other products, especially those that rely on local resources. Product safety and personal safety during distribution must be given high priority. In the past, regional clashes during new FMCG product launches have occurred, such as the clash between Jianlibao and Master Kong.
(2) Timeliness. New product distribution must emphasize timeliness, especially for weak brands. If it is lukewarm, competitors can easily exploit gaps. Timeliness also helps consumers quickly recognize the product.
(3) Crisis. Crisis management must be in place for new product launches, especially for FMCG, which is vulnerable to non-market attacks in regional markets, such as negative publicity from competitors or throwing depreciated products.
(4) Difficulty. New FMCG product distribution should follow the principle of easy first, difficult later. We cannot complete distribution in a regional market at once, but if we create momentum, it will be easier to influence difficult outlets, and our bargaining chips will increase.
(5) Management. According to the actual needs of the regional market, reasonably and flexibly adjust vehicles and personnel to ensure that effective forces are used in the most critical areas. At the same time, establish temporary organizations to ensure logistical support. We often see many institutions and companies in a flurry during new product distribution, with some places overstaffed and others very tense. This is due to a lack of management control, leading to chaos.
(6) Compatibility. The relationship between new product distribution and old product maintenance is of great significance to FMCG. If it is a substitute new product, the old product's terminal inventory will become an obstacle to distribution; before distribution, the backlog of old products should be handled. If it is a non-substitute product, the display and shelving of two or more products should be managed. At the same time, channel compatibility should be tested.
(7) Gap filling. After completing the overall distribution, classify and analyze the more difficult outlets and propose solutions, so that the distribution rate of the new product reaches a relatively high level.
New product distribution is a typical stage of hard work, but it is best to accumulate some insights into the density and depth of channel outlets, which will provide necessary information for subsequent market operations.
**-03-**
**Observing the Market**
Observing the market is the first review after completing the overall distribution task. How to observe the market? Those who know look for the essence; those who don't just watch the excitement. After distribution, there are ten indicators to observe:
**First indicator: Distribution rate.** Sales personnel should go deep into the streets and alleys to see the results of the previous hard work, judge whether the approximate distribution rate has reached 70% or more, and see where replenishment can be accelerated;
**Second indicator: Display surface.** In response to the messy placement caused by time constraints during distribution, issue terminal display standards and quickly adjust product placement to achieve the best display effect;
**Third indicator: POP.** Check whether terminal POP can guide and educate consumers, and based on your market situation, put forward your requirements and suggestions to the marketing department, issue POP posting standards, and remind sales personnel to maintain and manage terminal POP;
**Fourth indicator: Visit terminals.** Mainly listen to the opinions of terminal retailers and consumers, widely collect reactions from all levels of the market, organize market feedback, and form reports;
**Fifth indicator: Dealers.** Communicate the problems after distribution with dealers, strive for necessary adjustments to terminals, and seek resource tilt from dealers to transfer effective resources to the new product;
**Seventh indicator: Check policies.** The market has certain terminal policies during distribution. After distribution, check the implementation of distribution policies, punish business personnel who intercept policies, and transfer issues within dealer management to dealers for handling.
**Eighth indicator: Model stores.** To drive the regional market, new FMCG products can selectively create model stores, which can drive the construction of other stores. At the same time, model stores can also serve as points for employee education and training in skills and execution.
**Ninth indicator: Supply chain.** After distribution, the activation stage begins. Sales managers should promptly check the regional market supply chain to ensure the market is always in a state of smooth flow and ensure smooth supply of goods.
**Tenth indicator: Adjust personnel.** Redistribute and adjust the personnel structure of those involved in distribution so that each professional segment has dedicated personnel to monitor execution.
The main purpose of observing the market is to **establish a sustainable and healthy market.**
The above ten indicators are basic aspects, so FMCG companies will inevitably follow these patterns in new product launches. If a regional market manager can use these indicators for market construction comparison, they can achieve stable expansion of the regional market.
**-04-**
**Assessing the Market**
Judging the market situation comes from familiarity and mastery of first-hand market information. Market judgment has moved from simple surface observation to deep thinking about problems, from focusing solely on oneself to comprehensive market judgment. There are several aspects to assessing the market situation for new products.
**1. Consumer aspect**
Whether consumers are enthusiastically pursuing, actively trying, and even repeatedly purchasing is a very important indicator of consumer acceptance of the new product.
Consumer reactions are always three-dimensional; the key is that frontline personnel should develop the habit of paying attention. In terms of consumer acceptance of new FMCG products, taste, packaging, advertising, price, convenience, etc.—every point from consumers is the basis for improving the new product. Therefore, understanding and researching the consumer aspect plays a very important foundational role in judging the market problems facing the new product.
**2. Retailer aspect**
The retailer aspect mainly involves thinking from a business perspective. According to the general pattern of new FMCG product launches, initially, due to opaque prices, retail stores have high expectations for profits. As prices drop and competitive brands enter, retailers' profit expectations will enter a stable period.
Retailers also provide information about competitor reactions. In fact, much competitive information is obtained from retailers. Good retailer relationships are very beneficial for indirectly understanding competitor market reactions.
The third piece of information retailers provide is consumer composition. We can make a simple comparison: if retail stores near schools have high sales volume, while supermarket terminals have relatively average sales, we can basically judge that this product is very attractive to young consumers but may not be attractive enough to housewives.
We must admit that we cannot spend too much time and energy tracking consumer footprints, but retailers are different; they are in contact with end consumers every day, and the volume and accuracy of information are greatly improved. Therefore, communicating with retailers about consumer issues is a shortcut to obtaining core consumer groups.
**3. Competitor aspect**
**Competitors are often our best teachers.**
Because competitors will interpret from all levels whether our strategy is accurate. When our 1-liter product achieved certain results at the terminal, competitor Wahaha immediately launched a 1-liter version in specific regional markets, and Fresh Orange increased its winter offensive in the Yunnan market.
Therefore, carefully studying competitors' reactions to the market is of great significance for us to judge the success or failure of our own market. Competitors' price strategies are also a mirror for us; good competitors are indeed a good textbook!
**-05-**
**Trends**
FMCG is always an industry that follows trends. As market judgment, if we can move from simple surface thinking to trend and forward-looking thinking, then new product market competition may include competitive elements that conform to trends. What is a major trend? It is a judgment of the development direction of the industry. Let's take the development of non-alcoholic beverages in recent years as an example.
The non-alcoholic beverage market in China started from the children's market. The earliest Chinese beverage market was actually simple products like fruit milk launched by Wahaha and Robust. Now it seems very naive, but even so, this product still occupies a very important position in their corporate development.
Then Coca-Cola entered the Chinese market. Their red storm and market promotion quickly brought the urban beverage market into a Coca-Cola-dominated era.
Then came the water beverage market, from mineral water to purified water to natural water; the Chinese water market has been turbulent.
Fruit juice drinks, functional drinks, tea drinks, and even current dairy drinks—the major trends have a significant impact on determining the correct direction and mainstream marketing style of FMCG. Regional market judgment requires the ability to look at a broader market scope and think about cutting-edge market promotion plans.
Market judgment is generally the responsibility of senior decision-makers, but if regional managers can engage in dialogue with senior management at a higher level, it invisibly increases the value of regional managers. Therefore, all FMCG companies encourage forward-looking thinking based on doing their own jobs well.
**There are several very specific indicators for assessing the market situation of new FMCG product launches:**
First indicator: Whether the new product is entering the consumer consumption stage or is stuck in channel inventory. Since it is the launch stage, it is sometimes difficult to judge whether the new product is actually consumed or retained by the channel, which has a major impact on the next market plan and the timing of consumer activation;
Second indicator: Whether consumers are only trial purchasing or repeat purchasing, and what is the approximate ratio? We must judge the frequency of consumer purchases, because whether consumers identify with and accept the new product mainly depends on this key indicator;
Third indicator: Whether competitor reactions are phased or strategic. For example, Duohe Dairy has this problem. The dairy beverage products launched by Duohe Dairy inevitably overlap with Wahaha's dairy beverage products in competition. As a giant enterprise, whether Wahaha ignores or attaches great importance to Duohe determines the different strategies Duohe Dairy chooses in regional markets.
Fourth indicator: The prominent and systemic problems revealed during the new product launch. The problems revealed during new FMCG product launches include both urgent, breakthrough problems and long-term, systemic problems. During the launch, attention should be paid to collecting this information to prepare for strategy adjustments.
Market judgment is generally conducted on a monthly or quarterly basis, forming systematic reports. Reports should balance focal issues and long-term issues, ensuring both practical solutions and future adjustment directions, so that new FMCG product launches become institutionalized.
**-06-**
**Attacking the Market**
**Strike the snake at its head; attack the opponent's weak point.** Attacking the market means attacking the opponent's weak points and using the shortest time to achieve rapid market entry for the new product. The opponent's weak points in the market are fleeting, and for new FMCG products, all advantages are temporary. Therefore, attacking strategies are tactical means used by local brands against giants. There are several methods for new FMCG product launches to attack competitors:
**1. Product weaknesses**
It is safe to say that any product has its market weaknesses. Let's take Wahaha Nutrition Express as an example. Duohe Dairy launched the Yunnan-famous milk fruit plate, and we cleverly targeted Nutrition Express's weaknesses.
From the product line perspective, Nutrition Express uses one fruit plus milk, while milk fruit plate uses three fruits plus milk;
From the raw materials perspective, Nutrition Express uses inland milk, while milk fruit plate uses milk from the red soil plateau;
From the endorsement perspective, Nutrition Express is a dairy beverage launched by a comprehensive FMCG company, while milk fruit plate is launched by a fresh milk producer, with better quality assurance;
From the origin perspective, Nutrition Express completely omits the origin concept, while milk fruit plate is typical plateau sunshine milk plus three plateau fruits, plus Yunnan's unique passion fruit;
From the communication perspective, Nutrition Express is consumer-oriented, emphasizing universal nutritional rules, while milk fruit plate is characterized by differentiation, emphasizing the non-replicability of competitors.
These unique product characteristics fully exposed the weaknesses of Wahaha Nutrition Express in the Yunnan market!
**2. Channel weaknesses**
Similarly, Wahaha is a brand that attaches great importance to channels and has strong channel coverage, but Duohe Dairy found a channel that Wahaha simply cannot follow: the catering channel. Therefore, attacking the opponent's catering channel is a killer move for regional brands.
**3. Communication weaknesses**
Although national brands have universal advantages and often choose national media for communication, regional brands should also be good at using regional media, breaking through high-end blockades through close contact with consumers. Sometimes, appropriate use can also effectively block opponents.
**4. Lightning strategy**
Generally, national FMCG companies tend to rely on dealer resources to do national markets, mainly due to opportunity cost considerations. Regional brands can use this weakness of national brands, break the competitive brand's market rhythm through efficient execution, and use blitzkrieg to catch opponents off guard.
Blitzkrieg has a bit of a surprise attack connotation, but as long as we can tactically strike the opponent first, we can buy time for the growth of regional brands.
In reality, after a new FMCG product launch, the market is ever-changing. Even the strongest opponent has weaknesses; the key is how to use and strike the opponent's weaknesses.
But attacking the market is only a phased strategy. Once opponents discover their weaknesses, especially some national brands, their resources are very abundant. Therefore, attacking the market can never dominate, and for FMCG, plain and simple is true; pursuing sensational marketing cannot last long.
We see that whether it is the multinational giant Coca-Cola or the local heavyweight Wahaha, they have come this far with solid fundamentals. On the contrary, those brands that operate with ever-changing strategies are often fleeting.
**-07-**
**Activating the Market**
Consumer activation is an eternal topic for new FMCG product launches, and the means and methods of activation are rich and varied. Similarly, in the Chinese market, activation for new FMCG product launches has so far been replaced by promotions, although there are countless classic promotions, they have become a no-profit game of "killing a thousand enemies and losing eight hundred." From the trend perspective, activation for new FMCG product launches is shifting comprehensively toward experiential marketing.
**Activation trend one: Experience replaces purchase gifts.** I have always been a firm opponent of using physical objects for promotions in FMCG. Because FMCG has the characteristics of high-frequency purchases and low unit prices, physical promotions can lead to a vicious cycle in the market. Experiential marketing involves allocating a portion of the funds used for advertising to consumer interaction activities, which is also a realistic need for social development and human liberation.
**Activation trend two: Media as super shelves.** Media becoming shelves is the future trend for new FMCG product activation. Companies no longer simply place didactic advertisements but bargain with media, and by combining with media, media becomes a worthy shelf.
**Activation trend three: Brand PR marketing.** As the Olympics approach in China, FMCG companies are increasingly paying attention to and utilizing event marketing. Moreover, from the development trend, Chinese society is increasingly emphasizing sustainable development, and event-based marketing will be accepted by more and more Chinese companies.
**Activation trend four: Use of electronic platforms.** It is hard to imagine that a few years ago, Chinese companies found it difficult to accept communication through the internet, but as the internet becomes deeply rooted and electronic trading platforms mature, consumer activation through electronic platforms will increasingly become a trend.
**Activation trend five: One-to-one marketing.** It is hard to imagine how FMCG companies can do one-to-one marketing with such a large target audience, so the databases from market research and supermarket sales data become invaluable.
Many FMCG companies have established network platforms connected to supermarket sales systems, making consumer needs fully visible. Special channel systems also create conditions for one-to-one marketing in FMCG, such as foreign liquor in restaurants and bars, which has achieved good market performance through one-to-one marketing.
The emergence of new activation trends does not mean that traditional activation methods immediately fail in the Chinese market. Due to China's vast territory, even in economically developed areas, outdated activation methods may still be very avant-garde in underdeveloped areas. Therefore, we believe that suitable activation plans generally have the characteristic of being tailor-made. The creative use of media in activation plays a huge role in promoting market structure upgrades.
**-08-**
**Protecting the Market**
After a new product launch, it remains the focus of the regional market for a considerable time, and market maintenance work needs to be gradually established. Unlike inventorying and distribution, protecting the market aims to establish an institutionalized sales product platform, continuously provide standardized manuals, and maintain the elements of the sales system so that the new product enters a relatively stable growth period.
Mature FMCG companies are best at protecting the market. Why? Because thousands of new product launches have honed their skills. For emerging FMCG companies, after the new product launch enters the market maintenance period, we provide the following suggestions and opinions.
**Establish archives.** Establish a complete set of archives during the new product market activities, recording every detail of the new product's market performance, and adjust market activities and behaviors through periodic analysis of original market conditions;
**Form systems.** Learn from the experience of large companies like P&G, Coca-Cola, Uni-President, Master Kong, and Wahaha, and establish a set of market management system texts, continuously revising them in practice. Many FMCG companies have grassroots employees from large companies; let them contribute some experience;
**Clear processes.** New FMCG product maintenance involves many key links. It is recommended to formulate clear processes for new product launch maintenance, using processes to sort out technical links in product maintenance;
**Crisis mechanism.** It is essential to establish a crisis system for new product maintenance and construction. With the improvement of Chinese consumers' subject consciousness, crisis management is crucial for any Chinese FMCG company. Not to mention fledgling FMCG companies, even century-old Nestlé and P&G face constant crisis attacks on their products.
**The last point is the frequency and scale of FMCG launches.** Unlike durable consumer goods, FMCG faces market changes, and the frequency of new product launches is much higher than that of durable goods.
**First, quantity.** It is normal for a general FMCG company to launch 4–5 new products a year. Many large multinational FMCG companies can launch up to a hundred new products a year. Therefore, the FMCG market has always been a stage of brilliance;
**Second, the timing of new product launches is also difficult to define.** It must be recognized that the FMCG market environment is completely in a winter environment. We cannot prepare for new product launches based solely on our own unilateral assumptions. Sometimes we may change the timing of new product promotion due to changes in the market competition environment. Therefore, the timing of new FMCG product launches needs judgment and adjustment;
**Third, the resource investment for new product launches is also a huge variable.** FMCG companies have high requirements for cash flow, especially in the Chinese market environment. Therefore, many FMCG companies budget for a loss period when they first enter the Chinese market.
Fourth, the success rate of new FMCG product launches is not very high, especially compared to durable consumer goods.
The sign of a country's economic development is often not monopolistic resource enterprises but standardized consumer goods companies, especially FMCG companies, because FMCG sometimes consumes not just products but more often a culture. In this sense, Chinese FMCG companies' understanding of society, humanity, and trends will become parameters that determine the success of new product launches. In this sense, Chinese FMCG still has a long way to go.
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## Citation metadata

- Publisher: New Distribution
- Author: 王传才
- Published: 2019-12-27
- Canonical: https://xinjignxiao.com/en/articles/inventory-distribution-observation-assessment-attack-activation-and-prot-875e3219/
- Original source: https://mp.weixin.qq.com/s/lgFdU_WSpl4TE6bnxhNmow

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