Formerly "FMCG Distributor Professional Management Consulting" has been renamed to New Distribution Long press the QR code or click "Read Original" to register. 30+ industry experts, 100+ B2B platform founders, 800+ manufacturer and distributor friends, gather in Fuzhou to discuss the internet transformation path of the FMCG industry.
Companies want to launch new products, but salespeople are the opposite – they fear new products the most. Why? Although new product launches can increase salespeople's sales volume, there is no doubt that the company will also continuously increase sales targets. At the same time, before the new product launch, many tasks must be done by salespeople, taking time away from visits, such as conducting pre-launch market research, surveying terminals, distributors, competitors, and consumers, and following the orders of those "lazybones" in the marketing department who never go to the market and only know how to direct. When the new product launches, the carpet-bombing distribution activities undoubtedly fall on them. If the product doesn't get distributed or the distribution rate is low, they will be scolded by leaders. After distribution, they have to worry about secondary turnover, with the company monitoring changes in the secondary turnover rate daily. If sales are poor, they also have to help the company or distributors handle inventory... In short, for salespeople, nothing about a new product launch is good! If it fails, it's even worse!
Moreover, salespeople have one more fear: if the product price is high, no one will accept it in the early stage, making it impossible to promote further, and they have to endure grievances everywhere!
Since new product promotion is said to be difficult, and during the promotion period the price is indeed higher than competitors or breaks the salesperson's psychological bottom line, what should salespeople do?
Case: When Coca-Cola's Qoo series was launched, its price was set 20% higher than competitors, but through well-organized market operations, it ultimately achieved a prominent market position. Not only did it gain the largest market share, but it also continued to launch new products, such as Qoo Vitality Water and Qoo Whitening series in recent years. The products have always been priced higher than competitors, yet they sell even better!
Many other companies have also successfully launched products at higher prices than competitors. This is common in any enterprise.
In fact, product pricing is now generally based on consumers' acceptance, with fewer products priced according to profit requirements. Although competitor-based pricing is also common, many companies set prices slightly higher than competitors (for FMCG, one to several yuan higher), not necessarily lower. It is a common phenomenon for companies to price products higher than competitors or position them at a higher level.
As long as salespeople can uncover the supporting points for the high price during visits and communication, and get customers to accept them, high-priced products are not unsellable; in fact, they can sell better than competitors and better than expected.
Based on real-world validation, when the price is high during new product promotion and cannot be reduced through internal adjustments, salespeople should make efforts in the following areas:
- Distribute as widely as possible to create a clustering effect Distribution is the "final kick" for a new product launch and is the "first trick" for any salesperson promoting a new product. A high price only means that it may be difficult for intermediaries to sell to consumers, but during distribution, intermediaries are more concerned about the price difference (margin) than the price itself. So, even if the product price is high, it is possible to distribute well by leveraging the margin or other benefits.
Compared to the company, although the product price is high, there must be some advantage in the intermediary margin. In this regard, salespeople must clearly distinguish between high price and high margin to eliminate obstacles to distribution and sales, and quickly achieve distribution goals.
- Develop a visit guide for new product launches If the product price is indeed high and the margin is not large enough to attract distributors or consumers, meaning that during promotion, distributors or consumers may have objections, then before salespeople visit, the company should uniformly develop a "launch visit guide" or "objection handling guide."
Dig out all the problems that distributors or consumers might raise during the new product launch, as well as the doubts in salespeople's minds, and try to find all the advantages of the new product (even including the company's), use these advantages to address the problems (of course, they must be fully persuasive!), and describe them in colloquial language. This forms the main part of a "new product launch visit guide."
It can be said that during a new product launch, whether the price is truly high or even reasonable, the first reaction at any distributor or terminal is "the product is too expensive!" Getting favorable terms is the instinct of the buyer in any transaction. This "launch visit guide" will clearly distinguish between truly high prices and buyers wanting discounts, which is very helpful for salespeople to resolve these objections.
Bringing up the problems first and finding a unified, best solution is an important part of new product promotion.
- Find as much evidence as possible of strong sales power and high price justification New product launches are like having a baby – the newer the baby, the more loved by parents. So, whether it's the company or the salesperson, they must find the supporting points behind the new product, such as brand power, the product's own appeal, channel strength, sales team strength, etc. The newer the product, the easier it should be to find these points.
How to find them? It's like the "several major advantages" of new product sales mentioned in many pharmaceutical companies' investment brochures – strong consulting company guidance throughout, mysterious undisclosed formulas, huge market space and consumption space, intimate service and guidance, strong brand support, new concepts and new markets, etc. Although the price is high, there are actually many aspects hidden behind it that can make distributors money. At the same time, the company fully understands consumer needs, and there are important factors hidden behind it that make consumers "must buy." In short, although the price is high, the product is "value for money," and consumer spending has been researched by the company, so they will definitely buy enthusiastically!
Of course, we cannot boast without basis; we should truly explore. For example, in the salesperson's own market, there may be other important factors such as weak competitors or high consumer spending power, which are all evidence for persuading customers during new product promotion.
- Try to secure distribution policies (not sales policies), such as free gifts, drink samples, etc. The distribution process is different from the sales process after distribution. The key performance indicator for distribution is not sales volume but effective distribution points, with the goal of getting more customers to try the product. Therefore, it is very important to promote one-time purchases by consumers, and securing distribution policies to get customers to accept the product quickly is also very reasonable.
Everyone is familiar with sales policies, but they may be confused about the difference between distribution policies and sales policies. Distribution policies are generally one-time and non-continuous, while sales policies mainly promote circulation. So, distribution policies are more oriented toward terminals and consumers, such as display rewards and purchase gifts for terminals, and more gifts for consumers. Effective distribution policies can help the product penetrate all corners of the market.
- Find value-added methods, such as services, convenience, etc. If the product price is high and you want consumers to be willing to pay more, then the company or salesperson must find ways to add value, such as providing better service, greater convenience, more convenient packaging, faster delivery, and more satisfaction beyond the product price.
Of course, salespeople can also provide value-added services to customers through their own efforts during communication, using satisfaction beyond price to offset complaints about the price.
A high price for a new product does not necessarily mean it is hard to sell, nor does it mean the product cannot succeed. During new product promotion, discovering more advantages and providing more value-added content are the main ways to solve the problem of high prices.
New Food Era · New Distribution —— 2016 China "FMCG + Internet" Summit Forum ——
This is a grand event focused on how the FMCG industry channels will transform under the trend of Internet+
Agenda 08:00-09:00 Registration 09:00-09:05 Host opening 09:05-09:35 2016 China FMCG Industry Trend Analysis Report – Zhao Bo 09:35-10:05 FMCG Enterprise Transformation Strategy and Path – Liu Chunxiong 10:05-10:35 Opportunities and Challenges Brought by FMCG Channel Reform – Liu Zhao, CEO of Waiqin365 10:35-11:05 Alibaba Retail Link All-Around Empowerment – Guo Kunkun, Alibaba Retail Link 11:05-11:25 Channel Efficiency in the Internet Era – Fu Xiaoyun, Vice President of Benlai Holding 11:25-12:00 Roundtable Forum – Brand Transformation: Improvement vs. Reconstruction? Guests: Liu Zhao, Liu Chunxiong, Fang Gang, Chen Feng, Shi Zhengchuan, Deng Xia 12:00-13:30 Lunch 13:30-13:50 Distributor Transformation: City Distribution Trends – Wang Qi, CEO of Weijie City Distribution 13:50-14:20 Roundtable Forum – Why Distributors Should Do Logistics in Transformation Guests: Zhao Bo, Wang Qi, Liu Zhongmin, Tang Guangliang, Wang Cheng, Sheng Yan 14:20-14:40 How FMCG Enterprises Can Take Off with the Internet – Wang Hui, E-commerce Operations Director of Xijiu 14:40-15:00 Detailed Explanation of Zhongshang Huimin's One Machine, Two Wings Strategy – Su Xiaoxin, Vice President of Zhongshang Huimin 15:00-15:20 Category Value and B2B E-commerce Development Strategy – Wang Chaocheng, CEO of Yijiupi 15:20-15:40 Supply Chain Finance as a Lubricant for B2B to Drive Traditional Business – Chen Xian, CEO of 51 Order 15:40-16:00 Zhanghe Cloud Factory Helps Upgrade FMCG Supply Chain – Yang Lixiang, CEO of Zhanghe Tianxia 16:00-16:30 Integrating Small and Micro Retail, Rebuilding Business Ecology – Miao Dong, Vice President of Quanshi 16:30-16:50 The Next Decade: B2B is the Main Investment Battlefield – Zhao Mingwei, Vice President of Junlian Capital 17:00-17:30 Roundtable Forum – Who is the King of FMCG B2B Models? Guests: Fu Xiaoyun, Zhuang Jianzhong, Jiang Tao, Zeng Weiqin 17:30-19:30 Dinner
For manufacturers and distributors who want to transform, this grand event is not to be missed. Interested friends can long press the QR code below or click "Read Original" to register.
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