New product launches may appear to be a strategic and tactical issue with ever-changing rules, but they deeply reflect a company's overall business strategy.

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 push and mature market promotion have become key to FMCG companies winning in the market.

Second is system. FMCG marketing is a vast system; any shortcoming 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.

Third is the 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.

Fourth is the 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 practical experience and operational perspectives, examining and focusing on key issues in new product launches through the dynamic process control of market inventory (盘市), distribution (铺市), observation (看市), assessment (判市), attack (攻市), activation (动市), and protection (护市). It aims to inspire FMCG companies and provide general characteristics and patterns of new product launches from an experiential perspective.

Market Inventory (盘市)

Market inventory is the prerequisite for ensuring the successful launch of a new FMCG product. We often call it the homework before the launch. An old Chinese saying goes, "Preparedness ensures success, unpreparedness spells failure." Market inventory before a new FMCG product launch is particularly important. How to conduct market inventory, and the level of detail, significantly impacts subsequent market activities. Given the characteristics of FMCG, we believe the following elements need careful inventory:

First, distributor resource inventory.

Distributors 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 one is the best. Distributor investigation involves both quantity and quality. In terms of quantity, the key is perspective. Experience shows that for FMCG distributors, soft and hard strengths should be balanced. Especially for small and medium-sized enterprises with poor cash flow, the vulgar concept of "any mother with milk is good" should be abandoned. Large enterprises with strong financial resources also need to pay attention to the distributor's own funds and personnel strength to reduce systemic resistance to new product launches.

Distributor credit and strength investigation:

1. Region: The regional market the distributor covers, and judgment of regional channel resources;

2. Level: The 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 distributor's understanding of the market based on experience, and judge their ability to withstand market risks;

5. Previously operated brands: Judge the distributor's soft strength based on the quality of brands they have represented, and determine if they match your product attributes;

6. Distributor's education, experience, and hobbies: Judge the distributor's character and professional ability;

7. Distributor's personal assets: Storefront, transport vehicles, warehouses, fixed assets, bank accounts, organizational books, capital amount, business license, peer evaluation, reputation, etc.

8. Others: Cooperation with related manufacturers, current business situation, etc.

Second, channel terminal inventory.

FMCG channels are wide channel systems. Therefore, researching channel terminals in the market is a deep and meticulous task, requiring not only good patience but also careful attention. Generally, there are 7-8 types of FMCG channel terminals, such as KA, catering, KB, wholesale, retail, entertainment, special channels, and group buying. Generally, channel terminal inventory requires making a basic judgment of the channel system and having a rough understanding of the sales share of each channel terminal, which facilitates reasonable allocation of human and promotional resources in marketing.

For example, if a product is to be launched in May, we conducted terminal research in Lincang, Yunnan, and obtained a rough distribution table of terminals in this market. Through this concise data, we can judge and estimate the approximate sales volume of various channel terminals.

Linxiang District, Lincang: KA 2, Catering 80, KB 20, Wholesale 30, Retail 280, Total 412. Linxiang District is a minority region with a relatively backward economy. KA is clearly not the main channel terminal in this market. The 280 retail stores indicate that this market is basically a very marginal and fragmented regional market. However, our research in Yingjiang County found that despite being a county-level market, due to its proximity to the border, 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 make major mistakes. Yingjiang County (including Heihe): KA 10, Catering 120, KB 20, Wholesale 14, Retail 146, Total 310.

For products with a "plate-in-plate" strategy, channel terminal research must be strict to specific store names and locations, store size, customer structure, consumption level, etc. Even the consumption standard per table and the consumption situation in halls and private rooms must be described in detail. Therefore, channel inventory is a very deep and meticulous task.

Third, 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, a new 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 yearbook should be the latest version; do not use outdated data to avoid misjudging market positioning.

2. Annual per capita economic 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 and habit insights. Consumer behavior and actual economic consumption capacity are not necessarily consistent. We say that Yunnan's total economic output is not very high in mainland China, but this does not prevent Yunnan's catering industry from being very developed. Henan's GDP has reached one trillion yuan, but Henan's catering consumption is still relatively conservative. Consumer behavior habits also manifest in media, entertainment, venues, values, etc. Therefore, consumer behavior insights involve both quantitative data and qualitative analysis. The main purpose of consumer insights in regional markets is to quickly find a good breakthrough for new product launches, especially for regional brands.

Fourth, competitive brand inventory.

Inventorying competitive brands mainly judges the barriers to entering the market for FMCG. Competitive brands are divided into direct and indirect competitors. We take Gejiu City, Honghe Prefecture, Yunnan, as an example to see the competitive brand inventory strategy.

Gejiu is China's famous tin capital. The city is not large, with a population of 200,000, but the consumption structure is high. We launched a milk fruit plate product, and the competitive brand inventory can show the barriers to entering this market.

First, national brands. Since Gejiu was once the seat of the prefecture government and the tin industry is developed, many national brands are optimistic about this market. In the Gejiu market, the main national dairy brands include:

Wahaha's Nutrition Express. It is the biggest and most direct competitor for Duohe Dairy's new product launch. Because from the product line perspective, the product launched by Duohe Dairy is exactly the same as 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 product. And in pricing strategy, it firmly bit our product.

Liziyuan series dairy drinks have been deeply cultivating Yunnan; their low-end products and high distribution rate 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 market with intense regional competition in China's dairy industry. In terms of quantity, there are nearly ten dairy companies of scale in Yunnan, including Dengchuan, Xuelan, Laissier, Qianjin, Haizi, Zhadian, etc., not including Liziyuan and Wahaha that have built factories in Yunnan. Therefore, we must have a 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, such as Uni-President Fresh Orange, Master Kong, Coca-Cola, etc. As FMCG, substitute competitive products have a significant impact because changing consumer beverage habits is fighting against old forces.

Counterfeit products impacting the market. With the market activation of milk fruit plate, a very similar product appeared: milk fruit garden. This product not only has a similar name but also copies the entire design style. The main concern with counterfeit products is the price system, because their costs may be very low.

Market inventory for a new FMCG product launch should ideally form 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.

Distribution (铺市)

Distribution is the key link determining the success of FMCG. 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: generally, multinational companies like P&G, Coca-Cola, Master Kong, and Uni-President have market distribution rates above 80%. Excellent domestic FMCG companies like Wahaha and Nongfu Spring can generally reach 60-70%. Poor local companies have very low distribution rates, generally 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 sign of a company's grassroots marketing capability, so all FMCG companies talk about execution. There are key points to note in new FMCG product distribution:

  1. Distribution policy formulation and implementation. Due to the abundance of FMCG products, merchants' shelves are becoming smaller. Even with free consignment, merchants may not have shelf space. Therefore, an appropriate distribution policy is the guarantee for successful new product distribution. At the same time, the policy should prevent becoming a hidden killer of future market cross-regional selling. Facing thousands of terminals, the distribution policy must ensure it does not affect future market operations.

  2. Distribution advertising resource input and output. To reduce resistance to new product distribution, supporting three-dimensional media投放 is also a necessary foundation. Merchants are no longer as naive as before; without advertising communication resources, distribution will be very slow. Mature FMCG companies will launch a round of advertising campaigns when new products are launched.

  3. Distributor mobilization and participation. Without distributor 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 distributor personnel are absolutely strong. We say we need to find distributors with strong operational capabilities, and the distributor's personnel structure is a criterion. Generally, distributors 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 the staff, 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 use seasonal reversal for distribution and achieve good market results. For example, distributing new beverage products in winter. The advantage of winter distribution is that distribution costs can be greatly reduced, but the disadvantage is that consumer activation is not ideal.

  5. Terminal material display during distribution. Based on experience, terminal material display should be considered before or after distribution. Posting before distribution is conducive to creating momentum, educating consumers, and creating an environment conducive to distribution through ground activities; posting after distribution is conducive to activation, as consumers start to compare the product with the promotional poster, which encourages trial purchases.

  6. Several details in distribution:

1) Safety. New product launches inevitably impact the market of other products, especially those that rely on local resources. Product safety and personal safety during new product distribution must be given high attention. In the past, regional conflicts during new FMCG product launches have occurred, such as the fight 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 it. Moreover, timeliness helps consumers quickly recognize the product.

3) Crisis. New product launches must have crisis management, especially for FMCG, which is easily attacked by non-market factors in regional markets, such as competitors' negative publicity 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 form momentum, it is easy to influence difficult terminals, and our negotiation leverage will increase.

5) Management. According to the actual needs of the regional market, reasonably and flexibly adjust vehicles and personnel to ensure effective forces are used in the most critical areas. At the same time, set up temporary organizations to ensure logistics supply. We often see many organizations and companies in a flurry during new product distribution; some places have too many people, some places are very tense. This is because of a lack of management control, leading to chaos.

6) Compatibility. The relationship between new product distribution and old product maintenance is significant for 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. Also, test channel compatibility.

7) Gap filling. After completing the large-scale distribution, classify and analyze terminals that are difficult to enter and propose solutions. This will bring the new product distribution rate to a relatively high level.

New product distribution is a typical stage of "burying your head in work," but it is best to accumulate some insights into the density and depth of channel terminals, which will provide necessary information for subsequent market operations.

Observation (看市)

Observing the market is the first review after completing the full distribution task. How to observe the market? Those who know look at the details; those who don't just watch the excitement. After new FMCG product distribution, mainly look at ten indicators:

First indicator: Distribution rate. Sales personnel should go deep into streets and alleys to see the effect of the previous hard work, judge whether the approximate distribution rate reaches 70% or more, and see where replenishment can be accelerated.

Second indicator: Display surface. In response to the messy placement due to time constraints during distribution, issue product terminal display standards, quickly adjust product placement, and achieve the best display effect for the new product.

Third indicator: POP. Check whether terminal POP can guide and educate consumers, and based on your market situation, put forward 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 retail merchants and consumers, widely collect reactions from all levels of the market, organize market reactions, and form reports.

Fifth indicator: Distributors. Communicate the problems after distribution with distributors, strive for necessary adjustments to terminals, and strive for resource tilt from distributors 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 if it falls under distributor management, transfer to the distributor for handling.

Eighth indicator: Model points. To drive the regional market, new FMCG products can selectively create model points, which drive the construction of other stores. At the same time, model points can also become points for employee education and skill and execution training.

Ninth indicator: Supply chain. After distribution, enter the activation stage. Sales management personnel 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: Personnel adjustment. Re-divide work and adjust the personnel structure of those involved in distribution so that each professional segment has professional personnel monitoring 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 rules for 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.

Assessment (判市)

Judgment of market conditions comes from familiarity and mastery of first-hand market data. Judging market conditions 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 judging the market situation for new products.

Consumer aspect

Whether consumers enthusiastically pursue and actively make trial or even repeat purchases is a very important indicator of consumer acceptance of a new product. Consumer reactions are always three-dimensional; the key is that frontline personnel should develop the habit. For new FMCG products, consumer acceptance includes taste, packaging, advertising, price, convenience, etc. Every point of consumer feedback is the basis for improvement. Therefore, understanding and researching consumer aspects play a fundamental role in judging the market problems faced by new products.

Retailer aspect

The retailer aspect mainly considers from an operational perspective. According to the general rules of new FMCG product launches, initially, due to opaque prices, retail stores have high expectations for profits. As new product prices bottom out 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 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 the product is attractive to young consumers but may not be attractive to housewives.

We must admit that we cannot have too much time and energy to track consumer footprints, but retailers are different. They are in contact with end consumers every day, and the amount and accuracy of information are greatly improved. Therefore, communicating with retailers about consumer issues is a shortcut to obtaining core consumer groups.

Competitor aspect

Competitors are often our best teachers. Because competitors will interpret whether our strategy is accurate from all levels. When our 1-liter product achieved certain results at the terminal, competitor Wahaha immediately launched a 1-liter product 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 judging our own success or failure. Competitors' pricing strategies are also a mirror for us; good competitors are indeed a good textbook!

Trends

FMCG is always an industry chasing trends. As market judgment, if we can move from simple surface thinking to trend and forward-looking thinking, new product market competition may include competitive elements that conform to trends. What is the big 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, these products still occupy a very important position in their companies' 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 was surging.

Fruit juice drinks, functional drinks, tea drinks, and even current dairy drinks. In fact, the big trend has a significant impact on determining the correct direction and mainstream marketing style of FMCG. Regional market judgment requires looking at a larger market scope and thinking about cutting-edge market promotion plans.

Judging the market is generally the task of senior decision-makers, but if regional managers can 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 judging the market situation of new FMCG product launches:

First indicator: Is the new product entering the consumer consumption stage or is it stuck in the channel as 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: Are consumers making only trial purchases or repeat purchases, and what is the approximate ratio? We must judge the frequency of consumer purchases, because whether consumers accept and adopt the new product mainly depends on this key indicator.

Third indicator: Is the competitor's reaction a phased reaction or a strategic reaction? For example, Duohe Dairy has this problem. The dairy drink products launched by Duohe Dairy inevitably overlap with Wahaha's dairy drink products. As a giant enterprise, whether Wahaha disdains or attaches great importance to Duohe determines the different strategies Duohe Dairy chooses in regional markets.

Fourth indicator: The prominent problems and systemic problems revealed during the new product launch. The problems revealed during new FMCG product launches include both urgent and breakthrough problems, as well as long-term and systemic problems. During the launch, attention should be paid to collecting this information to prepare for strategy adjustments.

Judging the market is generally done on a monthly or quarterly basis, forming systematic reports. The report should balance focal issues and long-term issues, ensuring that there are both practical solutions and future adjustment directions. This will institutionalize the new FMCG product launch system.

Attack (攻市)

Hit the snake at its head, attack the opponent's weak point. Attacking the market means attacking the opponent's weaknesses and using the shortest time to achieve rapid market entry. The opponent's weaknesses are fleeting, and for new FMCG products, all advantages are temporary. Therefore, the attack strategy is a tactical means used by local brands against giants. There are several methods for new FMCG products to attack competitors:

  1. Product weaknesses. It is safe to say that any product has its market weaknesses. Take Wahaha Nutrition Express as an example. Duohe Dairy launched the milk fruit plate that swept Yunnan, and we cleverly aimed at Nutrition Express's weaknesses.

From the variety 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 drink launched by a comprehensive FMCG company, while milk fruit plate is launched by a fresh milk producer, which is more guaranteed in milk quality;

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 differentiated, emphasizing the non-replicability of competitors.

These unique product characteristics fully exposed the weaknesses of Wahaha Nutrition Express in the Yunnan market!

  1. 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 cannot follow: the catering channel. Therefore, attacking the opponent's catering channel is a killer move for regional brands.

  2. Communication weaknesses. National brands have universal advantages, and their communication often chooses national media, but regional brands should also be good at using regional media. Through close contact with consumers, they can break the high-end blockade. Sometimes, appropriate use can also effectively prevent opponents.

  3. Lightning strategy. Generally, national FMCG companies focus on leveraging distributor strength to do national markets, mainly due to opportunity costs. Regional brands can use this weakness of national brands, break the competitive brand's market rhythm through efficient execution, and use lightning warfare to catch opponents off guard. Lightning warfare has a bit of a surprise attack meaning, but as long as it can strike the opponent tactically first, it can buy time for regional brand growth.

In fact, after a new FMCG product launch, the market is ever-changing. Even the strongest opponent has weaknesses; the key is how to use and attack the opponent's weaknesses.

But attacking the market must only be a phased strategy. Once opponents discover their weaknesses, especially some national brands, their resources are very rich. Therefore, attacking the market can never dominate. Moreover, for FMCG, plain and simple is true; pursuing sensational marketing cannot last long. We see that whether it is multinational giants like Coca-Cola or domestic giants like Wahaha, they have achieved today's success through solid basic skills. On the contrary, those brands that operate with ever-changing strategies are often short-lived.

Activation (动市)

Consumer activation is an eternal topic for new FMCG product launches. The means and methods of activation are rich and varied. Similarly, in the Chinese market, new FMCG product launches still use promotions instead of activation. 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, new FMCG product activation is shifting towards experiential marketing.

Activation trend one: Experience replaces purchase gifts. I have always been a firm opponent of using physical objects for FMCG promotions. Because FMCG has high-frequency purchases and low unit prices, physical promotions can lead to a vicious cycle in the market. Experiential marketing allocates part of the advertising budget 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 do didactic advertising but bargain with media, and through integration with media, media becomes a well-deserved shelf.

Activation trend three: Brand PR marketing. With the Olympic Games approaching 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. 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 with the internet deeply rooted in people's minds and the maturity of electronic trading platforms, 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 population. Therefore, databases from new product market research and supermarket sales data become invaluable. Many FMCG companies have established network platforms connected to supermarket sales systems, making consumer needs clear at a glance. Special channel systems also create conditions for one-to-one marketing, such as the popular foreign liquor in hotels 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 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.

Protection (护市)

After a new product launch, it remains the focus of the regional market for a considerable time, and market maintenance needs to be gradually established. Unlike inventory, distribution, etc., protection aims to establish an institutionalized sales product platform, continuously provide standardized manuals, and maintain the sales system elements so that the new product enters a relatively stable growth period.

Mature FMCG companies are best at protection. 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, record every detail of the new product's market performance, and adjust market activities and behaviors through phased analysis of original market conditions.

Form systems. Learn from the experience of large enterprises such as 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 themselves 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, and use processes to sort out the technical links of product maintenance.

Crisis mechanism. Be sure to establish a crisis system for new product maintenance and construction. With the enhancement 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 product crises.

The last point is the frequency and scale of FMCG product launches. Unlike durable consumer goods, FMCG faces market changes, and the frequency of new product launches is much higher than durable goods.

First, quantity. Generally, it is normal for an 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 under a winter environment. We cannot prepare for new product launches according to 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 enterprises, 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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