A new product's success in its promotion period depends on whether it can achieve at least three positive cycles at target outlets; we judge whether a new market's development is successful by whether the main product can achieve at least three positive cycles at core outlets. If 'reorders' occur three or more times within the planned period, we can basically judge whether a product can survive in that market and whether a market can be successfully developed. We call this the 'Three Reorders Principle' of net sales. Net sales refer to the volume sold out of outlets, the actual sales volume truly realized by the product and market. Only when outlets form continuous positive 'reorders' can the enterprise's sales channels flow smoothly. To achieve 'three reorders' in net sales, we need to start with the 'Seven Rates of Turnover'.

First: Distribution Rate Except for special channels like group buying, if outlets don't have the product, there's no way to talk about generating 'reorders'. Therefore, the prerequisite for outlets to form positive reorders is distribution and replenishment; only through distribution and replenishment can outlets have stock. During new product promotion and new market development, mastering the following basic methods to increase distribution rate is essential:

  1. Focus. In the early stages of promotion, due to limitations in product trial, sales team building, resource investment, etc., the seemingly 'casting a wide net to catch big fish' often results in 'skimming the surface'. Distribution must be focused on a portion of channels or regions, on one hand to summarize experience and explore models, on the other hand to develop one area successfully at a time, forming 'effective strongholds'. Just like hammering a nail into a wall, we can only drive it in with the point (focus), not with the head.
  2. Find weak points. Similarly, when hammering a nail into a wall, it's much easier to aim at the gap between two bricks (weak point) than at the brick itself (strong point); hitting the brick might even bend the nail without driving it in. Therefore, when distributing, it's best to first choose areas where competitors have gaps, weaknesses, or other crises, then concentrate our resources to strike at competitors' soft spots.
  3. Explosive distribution. Within the focused area, or after a successful model is formed through pilot trials, launch explosive distribution. The principle comes from 'rapids floating stones': how can water make stones float? Only when the water has a large drop, fast flow, and high volume can it float stones. The existing dominant brand in the market is like the 'stone', while the new product is like 'water'; for water to wash away the stone, it must carry out 'explosive distribution'.
  4. Master distribution patterns for different product types. Different types of products have different target consumer groups, shopping channels, and purchasing habits. Marketing personnel should be good at 'learning from consumers' and grasp distribution patterns from the consumer's perspective: for example, crispy noodles are mainly consumed by primary and secondary school students, so distribution should first directly cover school outlets; baijiu is mainly consumed by adults, with the ignition point in restaurants and hotels, so distribution should first directly cover corresponding catering outlets.

Second: Visibility Rate Many products enter outlet stores but are 'trapped' in the warehouse, not on the shelves at all. Consumers who neither know about nor see a new product cannot possibly buy it. The reason 'visibility rate' is often lower than 'distribution rate' lies in the following three points: first, insufficient maintenance and follow-up service by sales personnel or distributors; second, the product cannot be quickly digested, failing to attract 'active' or 'passive' attention from the outlet; third, the product is a low-profit mature product. To increase visibility rate, countermeasures need to be formulated for the above three aspects. First, based on the number of outlets, arrange a certain visit cycle for sales personnel, with regular follow-up service; second, before the outlet develops 'passive' attention, accurately investigate the real reason why the product cannot be quickly digested, then formulate push-pull strategies to sell the product and attract the outlet's 'active' attention and support; third, when the product is in the mature stage and outlets lack profit, don't continue to give discounts or promotions on old products; instead, mobilize outlets to accelerate the promotion of new products, improving the display area and vividness of new products at outlets.

Third: Recommendation Rate The recommendation rate depends on three types of people: first, outlet owners or staff; second, the manufacturer's marketing and sales promotion personnel; third, consumers who have already purchased the product. Although the principle that a satisfied consumer can bring 250 potential consumers to the manufacturer always plays a role, in the early stages of new product promotion, since consumers haven't fully trusted the new product, relying on word-of-mouth to increase recommendation rate is clearly 'distant water can't quench present thirst'. Therefore, the focus of increasing recommendation rate mainly relies on the first two types of people. Whether an outlet is willing to strongly recommend a new product often depends on whether the new product can bring greater and longer-term profits. Therefore, the price design of new products often needs to be 'high open, low go', giving outlets higher profit margins and thus mobilizing their enthusiasm to recommend new products. There are many ready-made techniques for marketing and sales promotion personnel to make recommendations. More importantly, marketing personnel should continuously explore new methods based on industry characteristics and competitive situations. Henan Shangdu Feed Group, in the early stage of market development, its entry point was holding promotional meetings in various places. Promotional meetings usually have a public welfare nature. For example, to open a certain market, the feed company's sales personnel would first survey the region's annual sales volume, farmers, distributors, common livestock and poultry diseases, etc., then select a date to hold a promotional meeting, inviting local distributors and large farmers. At the meeting, livestock experts invited by the company would explain breeding knowledge, disease prevention and treatment, nutrition knowledge, etc., and of course, briefly introduce the host's products, leaving a good impression on the terminal farmers.

Fourth: Purchase Rate When the product completes the 'thrilling' transformation from commodity to money, the purchase behavior truly occurs, and the large amount of work done earlier by the enterprise begins to show its role and value. However, if 10 customers come to a store, all see your product, and all hear your recommendation, how many ultimately buy your product? Which competing products do the others buy? This is the fourth step that must be improved: purchase rate. Henan Guang'an Feed Group, during market development, was adept at using '5-yuan coupons'. Holding this coupon to designated distributors to buy Guang'an feed could save 5 yuan. Rural farmers, upon receiving the coupon, if they ignored it, would feel as if someone had given them '5 yuan' and they threw it away, always reluctant; so they would hold the coupon and try it, thus forming a first purchase. Shangdu Group often, after promotional meetings, to let farmers see the effect, would give some farmers free samples to 'try'. Farmers who got the benefit, after trying the samples for a week or two, would make a first purchase if they felt the samples were good.

Fifth: Repeat Purchase Rate Many distributors and frontline sales personnel often say that putting the product in front of consumers is 'my business', but whether consumers 'come back' after buying is 'the company's business'. This sounds reasonable, but in essence it is completely wrong. Theoretically, whether consumers come back mainly depends on 'product power'; if consumers are dissatisfied, they won't buy a second time. However, in practice, consumers often have different preferences for different brands, and sometimes even can't decide which brand to buy. For marketing personnel, it's not only about learning how to make consumers buy, but also mastering how to make them buy multiple times, continuously, and long-term. Some feed companies, after selling products, provide 24-hour problem-solving for users; some even organize specialized technical service expert teams to solve problems on-site, and continuously hold large-scale technical service lectures locally to make users repeatedly buy their feed. At the same time, they often calculate 'economic details' for users. For example, farmers often seek cheapness, thinking that when pork prices are good, they use good feed, and when bad, cheap feed; at this time, the manufacturer needs to provide convincing data, calculating 'feed-to-meat ratio' and 'feed-to-egg ratio', to see which breeding plan has the lowest cost and better output.

Sixth: Brand Request Rate Based on our survey of consumer purchase behavior at outlets, for most FMCG products, if a consumer buys a product three or more times consecutively, when purchasing this type of product for the fourth time, they often request that brand by name. This is also the important basis for the 'Three Reorders Principle' mentioned at the beginning of this article. For a new product promotion or new market development, achieving and increasing 'purchase rate' is the 'first step' to complete substantive sales; achieving and increasing 'repeat purchase rate' is the 'second step'; achieving and increasing 'brand request rate' is the third step, and also the sign of successful completion of the promotion and development period. Rising from 'repeat purchase rate' to 'brand request rate' requires marketing personnel to continuously work on making consumers return for a second, third, and multiple times.

Seventh: Loyalty Rate 'Brand request' means naming a specific brand to buy. When that product is unavailable or the store owner recommends a competitor's product, consumers may change their original purchase intention and buy another brand. When consumers rise from 'brand request' to 'loyal' consumers, they not only 'request' a specific brand but also firmly refuse other brands recommended by others, and even give up buying at that outlet if the product is unavailable. A high loyalty rate means a high outlet reorder rate; a low loyalty rate means that once consumers succumb to the 'temptation' of competing products, they will abandon you. Therefore, the level of loyalty rate reflects the stability of outlet reorders, and even more, the stability of a product and market. However, loyalty cannot be achieved in one battle; it depends on long-term unremitting efforts in the market. On one hand, consumers should have high satisfaction with the product's positioning, core functions, product form, and added value; on the other hand, enterprises must continuously conduct brand education for core consumer groups, integrating the brand into their hearts. Just as under years of brand education for cola products, some consumers insist on only drinking 'Coca-Cola', some young people insist on only drinking 'Pepsi', and some consumer groups only drink 'Coca-Cola' or 'Pepsi', refusing other cola brands. Achieving and increasing 'loyalty rate' is an important guarantee for good product reorders at outlets, a key step for healthy market growth and maturity, and the highest realm of enterprise marketing.