---
title: "Manufacturer-Dealer Joint 'Six-Step' Approach: Rapid Distribution to Capture the Peak Season Market!"
description: "Statistics show that new products launched by manufacturers each year account for 20%-25% of total sales, prompting annual new product introductions to boost yearly performance. As regional performance leaders, dealers must grow with manufacturers, making new product launches and distribution a key focus. With a success rate of only about 2%, product selection is crucial for successful market entry and determines a dealer's growth and profitability. This article outlines four directions and eight factors for product selection, along with a six-step process for joint manufacturer-dealer distribution."
author: "翁文添"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2018-05-20"
language: "en"
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# Manufacturer-Dealer Joint 'Six-Step' Approach: Rapid Distribution to Capture the Peak Season Market!

> Statistics show that new products launched by manufacturers each year account for 20%-25% of total sales, prompting annual new product introductions to boost yearly performance. As regional performance leaders, dealers must grow with manufacturers, making new product launches and distribution a key focus. With a success rate of only about 2%, product selection is crucial for successful market entry and determines a dealer's growth and profitability. This article outlines four directions and eight factors for product selection, along with a six-step process for joint manufacturer-dealer distribution.

Statistics show that new products launched by manufacturers each year account for 20%-25% of total sales, so manufacturers introduce new products annually to boost yearly performance. As the regional performance leader for the manufacturer, dealers must grow together with the manufacturer, treating new product launches and distribution as key work projects. Since the success rate for new products is only about 2%, product selection is a crucial prerequisite for successful new product market entry and a major factor determining whether dealers can develop and profit.

Four Directions, Eight Factors: New Product Selection Without Blindness

Manufacturers can expand their operating regions based on their development pace, while dealers' operations are regionally restricted, typically by province, city, district, or county. **Large dealers can cover a province or city, while smaller dealers focus on districts and counties, making deep regional cultivation their most important agenda.** Additionally, manufacturers can only operate their own brands but may expand into cross-category products based on company development. Dealers can operate multiple brands and same-category or cross-category products. These differences determine that dealers differ from manufacturers in product selection, as detailed in the four directions and eight factors below.

Four Directions for Product Selection

**Category Scale.** The larger the category scale, the easier the entry. With a larger purchasing group, sales are easier to generate, reducing the risk of slow-moving inventory.

**Rising Trend.** When category sales are on an upward trend, products sell more and more, indicating growing consumer demand. Regardless of how much inventory the dealer takes, the market can basically sell it all. However, if the category, item, or brand the dealer takes on is declining, and the manufacturer's sales reps face sales targets, the pressure to push inventory may exceed the dealer's sales capacity, increasing capital and inventory pressure, potentially leading to returns and exchanges due to slow sales, resulting in losses.

**Long-term Products.** Many internet-famous or concept products have short sales cycles and quickly exit the market. In such cases, the dealer's early efforts in representing these products come to naught. Therefore, dealers must first seek long-term products with attributes like nutrition, health, and daily necessity.

**Regional Exclusivity.** Regional protection is a concept manufacturers must have, controlling product diversion; dealers should also strive to deepen and refine their operations in their designated areas, ensuring no price chaos, so both parties can enjoy sufficient profits and long-term development.

Eight Factors for Product Selection

**1. Product Packaging Design.** Convenience in use, carrying, storage, and reusability are current mainstream packaging trends. At the same time, the appearance design should appeal to the target consumers' aesthetics, attract their attention, and drive purchases.

**2. Great Taste and Texture.** Taste and texture are the second key focus for dealers. All FMCG products must meet deliciousness needs while balancing health and taste. Products that only pursue health may be praised but not purchased, while good taste can win consumer favor and encourage repeat purchases.

**3. Reasonable End Price.** If priced too high, products may move slowly; if too low, sales may be good but profits insufficient. Without profit, there is no way to satisfy the driving profit for intermediaries, conduct marketing, enhance brand awareness, or improve product strength and value. A reasonable price can reference same-category, same-spec products, combined with cost, and fluctuate within 10% based on brand power, not exceeding 20%. Consumers use cost-performance as a reference; too high reduces repeat purchase intention and frequency, while too low raises doubts about product quality.

**4. Sufficient Profit Margin.** Dealers must consider front-end costs, back-end costs, promotional expenses, operating expenses, financial costs, and other costs when operating in the market. Therefore, manufacturers need to provide sufficient profit margins for smooth operations, using high profits to drive dealers to promote products more vigorously.

**5. Excellent Product Quality.** Quality is a combination of reputation and factory production processes, including packaging, outer cartons, and content quality. Dealers should choose products from manufacturers with scale and responsibility. Once quality issues arise, new products may be forced to exit the market entirely.

**6. Sufficient Production Capacity.** When future product sales are good, manufacturers must have sufficient capacity to provide adequate production volume, ensuring no stockouts. If capacity cannot keep up and stockouts exceed 45 days, all distribution efforts must be restarted, giving competitors an opportunity.

**7. Marketing Investment.** Marketing investment includes advertising, promotion, merchandising, display, display aids, and market service personnel. Investment enhances brand awareness, product strength, distribution rate, and sales volume. Dealers should choose manufacturers capable of large-scale market investment.

**8. Good Manufacturer Service.** From order to delivery and warehousing speed, handling of market issues, etc., all fall within the scope of manufacturer service. Dealers should choose manufacturers with clear market plans and comprehensive after-sales service.

Policy Push: New Products Quickly Reach Dealers

Before launching new products, manufacturers typically introduce launch policies to quickly push them to dealers, who then sell to distributors and secondary wholesalers, and finally to terminals for market distribution. Specifically, **manufacturers first hold new product briefings for dealer sales staff, providing product samples,** training them on product knowledge and sales and distribution techniques. At the same time, they offer distribution incentives for dealer sales staff, which greatly boosts their enthusiasm and willingness to distribute. For distributors and secondary wholesalers, manufacturers provide display samples, with distributors distributing samples to terminals and secondary wholesalers displaying new products at their stalls to attract terminal owners' purchases.

**Manufacturer sales reps accompany dealers to visit regional distributors and secondary wholesalers, developing and distributing simultaneously.** Manufacturers provide gifts and bundle policies to increase distributor and secondary wholesaler profits, order willingness, and order quantities.

**For terminals, manufacturers provide purchase policies and samples to assist dealers in distribution,** sometimes offering case-opening policies to encourage terminals to display products on shelves. For terminals with large displays or end caps, they provide display fees and other display support. For consumers, manufacturers offer trial tasting fees, buy-one-get-one offers, and promotional discounts to increase new product sell-through rates.

**During new product launches, manufacturers implement marketing policies to facilitate smooth sales,** allowing new products to quickly move from the manufacturer through dealers, distributors, secondary wholesalers, and terminals to consumers. Dealers should leverage these resources to ensure rapid distribution and quick consumer purchases, ensuring a smooth journey.

Six Steps: Manufacturer-Dealer Joint Rapid Distribution

Dealers should follow these six steps when cooperating with manufacturers on distribution: **First, pre-distribution preparation, including distribution personnel, vehicles, backup stock, gifts, display materials, delivery notes (orders), POP, etc., all in place for any contingency.** Then conduct systematic pre-distribution training for sales staff, covering product knowledge and selling points, pricing system, profit structure, display techniques, promotional policies, Q&A, etc. Additionally, before distribution, dealers should inventory terminals within their coverage area to ensure the product-channel mix matches, implement differentiated promotional combinations across channels, and reasonably arrange distribution quantities, personnel, routes, and timing.

**After starting terminal distribution, dealers should manage the distributed items, ensure proper display and visual merchandising,** adjust distribution policies in a timely manner, collect issues, and conduct post-distribution visits; when possible, dealers can repeat distribution to terminals to increase distribution rate, with supervisors accompanying visits for key terminal customers. After a temporary pause in distribution, to improve maintenance efficiency, dealers can organize distributed terminals, fix visit routes, assign regular sales staff for terminal visits, and then secure multiple orders.

After completing distribution, improving new product sell-through becomes the primary task. At this point, dealers should focus on visual merchandising and brand building at key terminals, reasonably arrange promotional activities and product promotion, including POP, store signs, billboards, advertising walls, advertising umbrellas, and other brand and image materials, to boost terminal sales and avoid delisting due to poor performance.

The author summarizes the above new product distribution process: dealers and manufacturers are a community driving brand growth; the manufacturer's development path is also the dealer's path. Dealers just have an additional choice: they can choose the manufacturer or the product. But to survive and achieve sustainable development, new product selection and distribution are closely linked and are the top priority in operations. **Go all out, leverage manufacturer resources and policies, achieve comprehensive distribution and results in the region, and dealers can grow and develop together with manufacturers.**

Source: Food Board (ID: tyjspb)

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