On April 7, at the 2023 (8th) China FMCG Innovation Conference, New Distribution specially invited Yun Zhixing, National Marketing Director of Dayao Beverage, to the conference site, where he delivered a speech titled "Seven Don'ts for New Product Promotion". Yun Zhixing previously served as Business/Marketing/Promotion/Inspection Manager at Inner Mongolia Yili Industrial Group; Manager/Director/Partner at Beijing Xianxing Marketing Consulting Company; and currently serves as Marketing Director/Director of Inner Mongolia Dayao Beverage. According to industry rumors, Dayao soda sales exceeded 3 billion yuan in 2021, nearly on par with Nongfu Spring's NFC juice sales; from a regional brand originating in Inner Mongolia to covering 31 provinces, municipalities, and autonomous regions nationwide, its catering channel terminal network has exceeded 1 million outlets. What did Dayao Beverage do right? How should new product promotion be carried out? The following is the content of President Yun's speech (partially abridged). From the central and western regions of Inner Mongolia to the northwest, then to the northeast and north China, Dayao Beverage took about four years to complete its northern market layout and is currently accelerating its layout in markets south of the Yangtze River. Dayao's rapid development certainly has its own suitable ideas and methods. Actually, speaking of the word innovation, objectively speaking, I am also a newcomer to FMCG, especially a newcomer to beverages; I have only been in this for four and a half years. Today, from Dayao's perspective, I will briefly share with you new product promotion. Don't lack innovation From the manufacturer's perspective, it's actually about how to promote new products. I think the biggest problem is that many companies don't give new products enough time; as soon as they launch a new product, they expect sales and profits. From my own judgment, this is quite dangerous. Because any good product should first return to the product itself; but many marketing experts and companies hand this responsibility to the marketing department or R&D department, using their own feelings, creativity, and concepts to lead new product development. The product's inherent "differentiation" is insufficient, and key points such as naming, packaging, and content adopt follow-the-leader or imitation tactics. It's not that following is bad, but it's very difficult to grow big and succeed. Don't be one-sided Bosses mostly come from two roles: the first is production-oriented bosses, and the second is sales-oriented bosses. In my experience, truly financial or entity business owners are very rare. In the thinking path of production-oriented bosses, there is often a serious product sentiment, thinking "their own child" is the most beautiful and their product is invincible. But whether a new product can survive requires market screening and validation. Use pilot markets to verify whether the product concept is successful, whether channel selection is reasonable, whether the price system meets demand, and whether communication and promotion strategies are on track. The process of building pilot markets is the process of collecting feedback information and optimizing operations. Why do consumers think your product is good? Why should they buy your product? In which channels? Including the source of information. All actions must return to the market, let the market speak, and optimize our products through consumers' most authentic feedback. Pilot markets can take as little as 1-2 years or as long as 3-4 years; new product promotion is never subjective or achieved overnight. Don't stay away from customers Conventional new product operations mostly focus on circulation channels; the channel strategy is to first choose hypermarkets, CVS, and other modern circulation channels, then radiate to traditional circulation channels, passing through multi-level distribution and various channel terminals, finally reaching consumers. The competitive environment in circulation channels is relatively harsh. Especially in hypermarkets, there are numerous SKUs, and new products can easily be drowned out by terminal "teammates," making it hard to reach consumers. In other words, our products are actually very far from consumers. Although the internet provides a very good purchasing medium, the product experience is actually far from us. Additionally, in circulation channels, each category has leading brands, and intense competition gives us no opportunity, so we firmly chose the catering channel. We found it has several particularly charming aspects: First, the channel is relatively clean with no intense competition; Second, it is not promotion-dependent, ensuring distributor profits; Third, it is right next to consumers, available for purchase at any time. New product promotion should consider where our consumers are, what the product's consumption scenarios are, how consumption opportunities are presented, and how to closely engage consumers. Throughout Dayao's promotion, we found that each region has its own characteristics, and getting products into local specialty restaurants may be the key to our success. Scenario experience enhances consumer awareness; advertising cannot replace consumer feelings. Don't rely on promotions Letting distributors make stable profits is our biggest goal. Unreasonable task budgets and unclear marketing work plans cause distributor inventory backlogs. Coupled with slow sell-through of new products at terminals, channel promotions, consumer promotions, and other promotional activities that undermine the price system become the go-to choice for many companies and distributors. Don't create excessive inventory difficulties for distributors; if terminals don't move products, actively assist distributors with product sell-through support. Dayao Beverage spends very little on advertising but invests heavily in ground promotions. For example, in 2023, we planned 45,000 small-scale ground promotion activities, such as tasting/pull activities at specialty restaurants, pedestrian streets, food streets, and shopping malls, to effectively approach consumers and boost terminal sell-through. These tangible efforts increase consumers' frequency and stickiness with Dayao, effectively reducing distributors' risk investment. If you want to do long-term business, the price system must be stable. Dayao does not support any form of promotional activities that lower prices; nor does it support distributors artificially causing cross-regional product flow to earn rebates, harming everyone's interests. No price wars, only value wars. Don't be disorganized In business, the biggest cost is disorganization and rework. How to quickly increase volume? How to quickly gain market share? Without a simple, standardized, replicable model, work is particularly difficult. The process of building pilot markets is the process of accumulating methods. Dayao's marketing "three axes" are effective means formed through sorting and accumulating multiple pilot markets. Each stage's work is matched with three sets of plans, making distributors' operational actions simpler and directly effective, like "foolproof." Nowadays, there are many new models, theories, and methods; don't follow the crowd. Promoting new products, including distributors taking on new products, really can't be rushed. You must find your own suitable ideas and methods and turn them into fixed marketing tools. Don't be profit-driven Some companies, in their operations, don't consider how distributors survive; they just want to leverage distributors' resources, and the cost to distributors is significant. 1. During rapid corporate growth, we need to honor contracts and keep promises; 2. We must genuinely help customers solve the problem of making money. Let me share a touching story. We started laying out the northwest and northeast markets in 2019, and the possibility of recruiting quality customers was very small. Big distributors were unwilling to cooperate, and small customers lacked qualifications. We brought relatives and friends from Inner Mongolia to do Dayao across the country, some starting with just 100,000 yuan! At that time, a group of brothers joked, wherever they went, they said, "Our Dayao business has small investment and quick returns; one truck of Dayao costs 30,000 yuan!" At that time, distributors had no salespeople, so factory managers accompanied distributors to open stores, deliver goods, and do activities. Several distributors paid off debts of two to three million yuan in three or four years and walked the streets with pride. In the past two years, Dayao has done something particularly impressive—poverty alleviation, solving livelihood issues for a group of people. We don't easily touch distributors' interests, and respecting them is also important. Don't ignore ethics First, when choosing a new product, distributors should not just look at policies but at the product's opportunity and vitality. Second, they should look at the manufacturer's service capability—whether it can improve operational levels and whether it has good tools and methods to help you make money. Third, check whether the team's character and behavior are acceptable; if they have small-mindedness, demand bribes, or love petty gains, it's best not to cooperate. Dayao's core team cultivation is slow; all are internally trained and promoted. Their abilities may not be outstanding, but their values are the same. New products require new teams. When hiring, especially for market and sales positions, basic moral standards must be the top priority, representing the company's image. This is the best protection for customers, and only then can new product efforts succeed. Establish standards, set benchmarks, build a good team style, and genuinely serve customers—this is Dayao's original intention. Click Read Original to see more highlights of the 8th China FMCG Innovation Conference...