Distribution is the first step for a new product to enter the market circulation, and this step is crucial. The road to new product distribution requires careful planning and attention to detail. Before launching a new product, it is essential to understand the characteristics of distribution, the standards for distribution, and to correctly formulate distribution strategies. The following will detail the intricacies of new product distribution.
- Understand the Four Significant Characteristics of Distribution
1.1 Adequate Preparation: Any battle fought without preparation or with insufficient preparation often ends in failure. For example, before starting distribution, fully extract the product's selling points and buying points; analyze the market environment and the sales situation of similar competing products to find the market breakthrough for the new product; thoroughly analyze the network channels and choose the easiest and most matching channels; design the profit space and price system; make a distribution plan, choose the distribution time, determine the distribution quantity, train salespeople, determine the executing personnel and delivery vehicles, and design the salary, subsidies, commissions, and even development rewards for sales personnel.
1.2 Short Timeframe: Without a time node, the distribution campaign can easily fall into a loose state with no progress and no pressure, making it difficult to achieve results. Generally, the market is required to complete the initial distribution task within 50 days. Usually, through three waves of distribution campaigns, the distribution rate of more than 80% of matched terminals is basically completed. In the first stage of 25 days, complete 60% of market distribution; in the second stage of 15 days, complete another 15%; in the remaining 10 days, complete another 10%; the remaining 15% are the "nail households" that need to be maintained and developed later.
1.3 Fast Speed: Concentrate superior manpower, material resources, and financial resources to achieve efficient and rapid market development in one go, completing distribution goals. To solve the problem of efficient distribution, many enterprises sometimes transfer personnel from other markets to form a "distribution commando team" to assist in distribution. In short, quickly completing distribution is a prerequisite for product launch.
1.4 Strong Strategy: Distribution requires strategy, and winning the first battle is crucial. Without a matching distribution strategy, it is impossible to form efficient execution, and the team is prone to losing morale in the face of repeated setbacks. Only with a matching strategy can the team be high-spirited and achieve distribution goals one victory after another. In practice, a combination of car sales, market assault teams, display replacement, free tasting, and other combined distribution methods is more likely to succeed. Many enterprises tend to adopt the mature product model of separating visits and sales during the distribution stage, which not only has poor results and low transaction rates but also demoralizes the distribution team and affects work efficiency.
- Determine the Three Standards for Distribution
Without standards, it is difficult to form a joint force, achieve explosive resonance effects, or create a shocking market effect.
2.1 Establish a Distribution Management System: Clarify the distribution area, routes, terminal types, and terminal quantities; clarify the responsible persons for distribution; standardize distribution standards and requirements. Formulate specific distribution reward and punishment rules and strictly implement them to achieve the daily, standardized, and institutionalized distribution work. Execute according to the distribution plan, requiring the distribution team to hold a morning meeting every day to report distribution progress and assign the day's distribution tasks, breaking down tasks to individuals. At the end of the workday, hold an evening meeting to review the day's work, submit distribution forms, and have the supervision team inspect. For key customers and critical moments, the sales manager should personally lead the team on the front line to boost morale.
2.2 Standardize Product Display Standards: Good display and vividness not only stimulate consumers' eyes but also generate market momentum, allowing consumers and terminal customers to feel the active atmosphere of the new product. Therefore, clarify product display requirements, maximize and enliven product displays, and let the product "make a shining debut" within the "first" line of sight.
2.3 Implement One-Stop Service for Distributed Products: Adhering to the principle of "whoever distributes benefits, whoever distributes is responsible," assign responsibility to individuals and "carry the pole to the end." Strictly delineate areas and require distribution personnel not only to place the product in terminals (restaurants, famous cigarette and liquor stores, small shops/supermarkets, etc.) but also to find ways to distribute the product to "consumers." Business personnel should take the lead in helping terminal stores sell the new product, achieving full tracking service for distributed products. Through effective distribution and certain marketing means or strategy combinations, make the product effectively connect with the market, so that when consumers need it, they can see it, buy it, and be willing to buy it, truly completing effective distribution.
- Distribution Strategy is the Key to Success or Failure
A qualified general never sacrifices soldiers' lives to win a war. An excellent commander is good at choosing the right situation rather than the right people. Therefore, a matching strategy is more likely to achieve distribution success and reflect team execution.
3.1 Create Market Momentum to Reduce Distribution Difficulty: To facilitate smooth distribution, enterprises can create momentum in local media before distribution, such as local newspapers, television, outdoor advertising, etc., to fully attract the attention of outlets. They can also use posters and banners outside terminal stores to create ground-level momentum. Manufacturers with strength can choose a higher-end hotel to hold a "new product launch meeting" (tasting session), inviting government functional departments, distributors, and media to expand brand influence.
3.2 Standardize Promotion Language in Distribution to Demonstrate Professionalism: Unified language and scripts in distribution promotion can highly demonstrate the professional quality of the business and avoid improvisation and off-topic remarks. For example, introduce the product's characteristics, policies, market operation strategies, and how to help customers sell through. Also, introduce the quality characteristics of the liquor, preferably inviting customers to taste it on the spot, then introduce the base liquor used for blending, the unique process, and the praise from wine tasting masters.
3.3 New Product Distribution is Absolutely Not Channel Stockpiling; FMCG Requires More Movement: A reasonable distribution quantity can give customers the illusion that the product is selling quickly. In the first round of distribution, one item per product per store can ensure both product display needs and product sales for customers. Since the initial order is small, the order frequency will be high. Of course, customers will not take the lead in ordering, so business personnel must do a good job of tracking and maintenance. Generally, the second and third orders from terminal outlets are key to the successful launch of the product and are prerequisites for building their sales enthusiasm. For small and medium-sized enterprises, when it is impossible to invest heavily in advertising and public relations to pull terminal sales, they must find ways to distribute for cash. Cash distribution is more likely to be valued by terminal customers and relatively easier to get their active promotion.
3.4 Design Activities and Policies that Can Move Customers: Many terminal stores sometimes value not your product but the distribution rewards during distribution. It is crucial to determine appropriate, novel, and attractive promotional items according to distribution requirements. For example, tiered distribution rewards, purchase rewards, account opening rewards, promotional item support, free products, display rewards, etc., making customers feel they are getting a bargain, which relatively makes cash distribution easier.
3.5 Concentrate Enterprise Resources for Point Breakthroughs and Create Demonstrations: In key regional markets, choose key terminals for breakthroughs, and use the demonstration effect to drive distribution from point to area. In new product distribution, choose existing old customers or relationship customers for special policy distribution rewards to quickly establish image stores, form a booming sales atmosphere, set benchmarks, and use the influence of image stores to penetrate and distribute to surrounding small terminals, achieving the goal of using point activation to drive area distribution and using effective distribution to seize channel resources.
3.6 Customer Relationships are Very Important; They Originate from Diligence and Persistence: During distribution, salespeople tend to choose relationship stores and have fear and resistance to unfamiliar stores, or avoid them after one setback, which invisibly loses many effective terminals. During distribution, salespeople must not only fully leverage stores with good relationships as demonstrations and use entered stores to induce unentered stores, but also face difficulties head-on, visit and communicate more, and even help unfamiliar store owners with力所能及 tasks to build relationships and enhance customer relationships, such as organizing shelves, cleaning, and suggesting how to operate. Through the salesperson's diligence and persistence, they can move terminals and achieve smooth distribution. Do not lose confidence because of a customer's single rejection.
3.7 Concentrating Fleets and Personnel to Create Momentum in Distribution Can Impact Terminals: During distribution, a promotion fleet composed of multiple people can be established for team distribution, using the psychology of team warfare and the street parade of the distribution fleet to attract terminals and create a sensational effect. During distribution, clearly divide tasks among team members and achieve smooth distribution through collaborative teamwork.
All these are based on continuous training, strict planning, summarizing shortcomings, tracking guidance, and continuously solving the differences of various terminal outlets to achieve efficient market distribution.
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