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For FMCG products, terminal distribution is the first step in terminal management. Without product sales at the terminal, how can we talk about terminal management? Moreover, the distribution rate directly determines product sales volume! In actual sales management, continuously improving the distribution rate is one of the main assessment indicators for enterprises. So, how can companies quickly and effectively get products to the terminal and win quickly in the "beachhead landing"? Marketing expert Liu Jie offers the following key principles for successful distribution:
1. Correctly Understand the Concept of Distribution When we mention distribution, we often simply understand it as sales personnel promoting products to terminal stores, with the sole purpose of getting products into the terminal. In fact, distribution is an activity that integrates terminal relationships, terminal publicity, promotional promotion, and shelf management. It is a combined activity of market development, maintenance, and management. In other words, distribution is not just about getting products to the terminal; at the same time, the company's sales personnel must also perform a series of extended actions, such as posting POP materials, organizing shelf displays, and handling soon-to-expire products.
2. Fully Understand the Goals of Distribution There are two main goals of distribution. The first, which we are familiar with, is to quickly and accurately place products in front of consumers, making them easy to buy—this is called "products to the terminal." The second goal, often overlooked, is to place products into consumers' minds as much as possible, making them willing to buy. This requires attention to product display and promotional follow-up when products reach the terminal—this is called "products to the mind."
3. Correctly Understand and Apply Different Distribution Forms How a company distributes quickly and effectively should consider factors such as the characteristics of its own products, team management level, target market features, and competitive product status, choosing different distribution forms to maximize distribution efficiency! Marketing expert Liu Jie believes that the specific forms of distribution mainly include the following:
Blanket Distribution As the name implies, blanket distribution refers to the company implementing comprehensive distribution to all target terminal stores in the target market, comprehensively improving the product's distribution rate, thereby quickly enhancing brand exposure. This form is mainly suitable for products with high purchase convenience requirements, such as mineral water and instant noodles, and requires high comprehensive strength, team size, personnel quality, and management level.
Selective Distribution Selective distribution mainly refers to the company selectively distributing to some terminals in the target market, generally choosing terminals with strong influence in the regional market as distribution targets, not pursuing comprehensive product exposure. This form is mainly suitable for mid-to-high-end brands entering the market.
Point Distribution Point distribution, as the name implies, only distributes to points. It refers to the company choosing only a few leading terminals in the regional market for distribution, creating "flagship stores" for the product and focusing on brand image building. This form is suitable for ultra-high-end brands.
Strike Distribution Strike distribution is a strategic form of distribution, mainly referring to a distribution strategy where the company aims to effectively strike competitors at the terminal. The company generally locks onto the key terminal stores of major competitors and, under the premise of high profits and large promotions, directly impacts competitive products, weakens opponents, and quickly achieves product entry into competitors' key terminal stores.
Avoidance Distribution Avoidance distribution is the opposite of strike distribution. It mainly refers to the company choosing areas where competitors are relatively weak to distribute, avoiding the strong areas of competitors. The goal is to form advantages in local areas, then gradually encircle, forming a comprehensive product coverage. This form is mainly suitable for small and medium-sized enterprises with weaker strength.
4. Basic Principles for Successful Distribution Successful distribution must be carried out step by step under a planned and orderly process. Enterprises must follow some basic principles to maximize distribution efficiency. These basic principles mainly include the following aspects:
Precise Research Principle Regardless of the distribution form adopted, before implementing distribution, the company should first effectively count the target outlets in the target market and form a terminal archive database. At the same time, it should clarify the areas where mainstream consumer groups are relatively concentrated and understand the market distribution situation of major competitors.
Targeted Principle During the distribution process, the company should choose targeted products or product combinations according to different terminal types, determining which products are mandatory and which are optional for different types of terminals. For example, which products should be mainly entered into KA systems? Which products should be mainly entered into convenience chain stores? And so on.
Timeliness Principle The timeliness principle mainly refers to the company paying attention to dynamic cycles during the distribution process. For terminals that have already completed product entry in the first round, an effective and timely personnel visit management system should be established, paying attention to timely replenishment and other related service work.
Small Steps, Quick Runs Principle This principle emphasizes that in the first round of distribution, the company should not blindly pursue the quantity of products per terminal store. Instead, it should implement distribution through small batches and frequent replenishment. This principle not only creates the effect of fast product movement but also effectively avoids a large number of soon-to-expire or expired products if products sell poorly.
Brand-Driven Principle The power of the brand is strong. Terminals accept brand products much more than non-brand products. The company can first achieve a breakthrough in the first round through mature brand products, then gradually follow up with other products, or form a distribution item combination of mature brand products and other products, using mature brand products to bring other products into terminal stores.
Close Watch on Competitors Principle All market actions of a company must consider competitor factors, and distribution is no exception! During the distribution process, the company has two choices: one is the strategy of sticking close to competitors, distributing similar products that sell well; the other is implementing a differentiation strategy, choosing distribution products with obvious differences from competitors.
5. Establish a Dynamic Distribution Management System Distribution is a continuous and dynamic behavior. A company cannot achieve full entry into target outlets overnight. Improving the distribution rate requires repeated cycles! For terminal stores where products have already entered, the company should pay attention to product display and sales movement, do a good job in after-sales service, and continue distribution actions for stores not yet entered. Both points require the company to establish a complete dynamic distribution management system to ensure a steady increase in the distribution rate and avoid losing old stores while adding new ones!
Marketing expert Liu Jie believes that a company's terminal distribution behavior is like a "beachhead landing" in war; time and timing are crucial! If competitors complete comprehensive distribution in one month, but you take a year, how can you fight the battle? Whether a company can distribute well largely determines the success or failure of competition!
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