---
title: "New Product Launch - Refined Terminal Management"
description: "The development and design of new products carry a significant corporate mission. Firstly, innovation is the soul of enterprise progress and an inexhaustible driving force for development. To achieve long-term growth, companies must ensure product updates to meet consumer demands. Through product line sorting and development, companies continuously eliminate lower-margin products and improve profitability. Secondly, by understanding and forecasting market demand, they develop innovative, market-aware products to maintain competitiveness. Thirdly, new product launches are both a refinement of existing channels and an opportunity to develop new markets. Finally, new product development also serves to optimize and upgrade consumption structures. The market characteristics of dairy products indicate that traditional extensive models are no longer applicable, and precise launch processes can achieve high efficiency. The three basic terminal actions include standard display, free tasting, and terminal shouting. Refined channel management in display, promotion, tasting, inventory, sales, personnel, costs, and channels is essential for product sell-through."
author: "吕驰"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2016-07-22"
language: "en"
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---

# New Product Launch - Refined Terminal Management

> The development and design of new products carry a significant corporate mission. Firstly, innovation is the soul of enterprise progress and an inexhaustible driving force for development. To achieve long-term growth, companies must ensure product updates to meet consumer demands. Through product line sorting and development, companies continuously eliminate lower-margin products and improve profitability. Secondly, by understanding and forecasting market demand, they develop innovative, market-aware products to maintain competitiveness. Thirdly, new product launches are both a refinement of existing channels and an opportunity to develop new markets. Finally, new product development also serves to optimize and upgrade consumption structures. The market characteristics of dairy products indicate that traditional extensive models are no longer applicable, and precise launch processes can achieve high efficiency. The three basic terminal actions include standard display, free tasting, and terminal shouting. Refined channel management in display, promotion, tasting, inventory, sales, personnel, costs, and channels is essential for product sell-through.

Undeniably, the development and design of new products carry a rather "heavy" corporate mission. First, innovation is the soul of enterprise progress and an inexhaustible driving force for development. To achieve long-term development, companies must ensure product updates to adapt to consumer demands. By continuously sorting and developing product lines, companies eliminate lower-margin products and improve profitability. Second, by understanding and forecasting market demand, they develop innovative, market-aware products to maintain market competitiveness. Third, new product launches are both a refinement of existing channels and the best opportunity to develop new markets (channels). By enriching product lines and leveraging product characteristics (function, packaging), companies can maintain and consolidate existing markets and develop new regions and channels. Finally, new product development also bears the role of optimizing and upgrading consumption structures. For example, more regional dairy companies are transitioning to low-temperature products, which not only improves profitability but also optimizes the dairy product structure, avoiding red ocean competition. The market characteristics of dairy products (fast-moving consumer nature, increasing competitors, intense competition) indicate that traditional extensive models (launch first, then gradually innovate through market testing) are no longer applicable, while precise launch processes (launch strategy, communication strategy, brand marketing strategy) can achieve high efficiency in enterprise development.

Three Basic Terminal Actions
1. Standard Display
Product display follows four principles: centralized display, vertical display, frontal display, and light-on-top-heavy-on-bottom principle, ensuring good visual impact and a standardized, corporate image. Stack display standard: a standard stack composed of horizontal freezers. Products are stacked slightly above the freezer, with stacking height consistent with competitors.
2. Free Tasting
In the early stage of product launch, standard free tasting operations are conducted at terminals, providing a set quantity of products for consumers to try for free. Standard scripts help consumers form good product perception (taste, selling points), promoting first purchase.
3. Terminal Shouting
"Shouting" is the "final kick" to close a deal at the terminal. "Shout" = selling point promotion. In the early stage of launch, continuous shouting at terminals repeatedly conveys core selling points to consumers, serving as effective promotion. "Sell" = sales policy. Combined with preferential policies (buy-give activities, discounts), it drives product sales.

In the early stage of product launch, while focusing on the three basic terminal actions, strengthen refined channel management (display management, tasting management, material management, personnel management, promotion management), maintain product tracking services, and achieve product sell-through.

Display Management
1. Terminal Classification
Standard display according to different types of resource stores (stores with one in-store freezer, half in-store freezer, or minimum display area freezer). The optimal display position is generally 75CM-120CM from the ground, on shelves 3-5 layers, most visible and convenient for consumers. In the early stage of new product launch, the display area for new products should not be less than 30% of the total display area. As sales change, optimize display positions and expand display areas. New temporary display points must also strictly follow product display standards (centralized, vertical, frontal, light-on-top-heavy-on-bottom) for multi-point display.
2. Vivid Display
Flexibly use terminal materials (hanging flags, jump cards, explosive stickers, shelf insert cards, shelf blockers) combined with standard display principles to make terminal displays more vivid and attractive.
3. Stack Display
Island stacking display refers to a large pile display like an island in aisles or open spaces outside end caps. It should be placed in the center of wide aisles so customers can see products from all sides. Stack displays are divided into normal temperature and low temperature stacks. Generally based on large safety stock, use special-shaped materials (arch doors, fences, X-stands) to create image stacks, conducive to product image and selling point display.
4. Product and Display Cooperation
Strengthen maintenance of terminal products (timely fill gaps in displays), maintain product display surfaces, and ensure product cleanliness to uphold product image. Maintaining terminal product image is maintaining corporate image.

Promotion Management
1. Make Promotion Plans
Prepare different POP promotional materials in advance based on different promotional effects. By function, POP is divided into attracting POP, guiding POP, and explanatory POP. By shape and usage: for upper store areas (hanging flags, banners), wall posting (posters, wall flags, column wraps), shelf use (price cards, horizontal signs, jump flags), and floor use (vertical flags). Flexibly use promotional materials to achieve different effects (attract consumer attention, convey product selling points, build corporate image).
2. Terminal Media Construction
Selectively build key stores for terminal media construction. Through video advertisements and special-shaped materials, build corporate image while achieving promotion.
3. Prior Application, Post Maintenance
Apply for material production in advance, monitor activities during (photo self-check + specialist inspection), and maintain materials after.
4. Coordinate External Periodic Activities
During the new product launch cycle, the three terminal actions are effective. Coordinate with company promotional activities to conduct "tasting + selling" external activities, roadshows, etc., to concentrate exposure and increase first purchase opportunities.

Tasting Management
1. In the early stage of launch, to increase trial rates, persist in terminal tasting activities (fixed times and sessions on weekdays, all-day on weekends) to increase first trial opportunities and achieve first purchase.
2. To ensure consumer experience, use the freshest products in the store for tasting, strictly follow free tasting standards, and guide consumers to recognize product taste and selling points.

Inventory Management
1. Ensure Full Inventory. Calculate safety stock coefficient based on actual sales, target sales, and packaging attributes to ensure safety stock. Maintain standard display surfaces while ensuring inventory fullness.
2. Optimize Inventory. In the early stage, streamline delivery processes and optimize routes. On one hand, strengthen control over large-date products; on the other, control return/exchange ratios. Timely optimize terminal inventory to ensure freshness under safety stock. Generally, 100% return/exchange for the first three months; after three months, strengthen control over large-date products (return/exchange handling, in-store bundling) to ensure freshness.
3. Follow Sales Principles, Implement FIFO. To implement FIFO at terminals, policy support and appropriate monitoring are necessary. Since tasting and selling occur simultaneously, sales personnel might use large-date products for tasting, affecting consumer first experience.

Promotion Management
1. According to product marketing strategy, arrange activity schedules and link different activities. Through "rolling progressive" promotional arrangements, strive for continuous heat and ignite consumer attention.
2. Plan activity schedules in advance and implement precisely at terminals (prior policy notification and procurement/distribution of promotional items).

Target Management
1. Task Breakdown. Based on marketing planning goals, break down product tasks by region, channel, store, category, and item, precise to quarter, month, week, day. The more detailed the breakdown, the higher the likelihood of achieving goals.
2. Incorporate Process Assessment. What is assessed is what employees implement. In the early stage, include product display standards, standard scripts, and tasting attempts in employee assessments, and pay new product commissions based on completion rates. The more standardized the process, the easier the goals.
3. "Three Clear" for Terminal Sales Personnel. From production to market to sales, relevant personnel must understand tasks and completion. Promoters must be clear about their tasks, task completion, and performance assessment, always acting with purpose.

Personnel Management
1. Strengthen Pre-job Training. In the early stage, increase business training for promoters (product selling points, standard scripts, tasting operation standards).
2. Proactive Interception and Shouting. Proactive interception at terminals is a key to sales (temporary promoters intercept with tasting + standard scripts; long-term promoters shout and repeatedly convey core selling points).
3. Strengthen Post-inspection. Establish a market inspection team to regularly inspect markets based on self-checks by store managers and station heads. Assess implementation of company standards (display standardization + vividness, standard scripts) and policies (promotions, training), incorporate into performance assessments, and enhance terminal execution.

Cost Management
1. General Cost Principles (channel buy-give, terminal buy-give, joint buy-give): a. If a store cannot guarantee implementation of applied costs, the cost is not approved; b. If a store cannot provide closing materials for approved costs, the cost is not closed.
2. Personnel Cost Management. a. Regular promoter count = total sales / 100,000 yuan / person / month; b. Special promoters per company requirements, e.g., independent promoters for important new products.
3. Image Cost Management. Control input-output ratio for image costs, follow image store management requirements.

Channel Management
1. Refinement of Existing Channels. The sales process of new products is a process of controlling existing channels, both by continuously striving for resources through successful sales and by implementing management upgrades through a series of actions and policies.
2. Development of New Channels and Outlets. Product sales form feedback and supplementation across channels: hot sales in KA stores can drive sales in convenience stores and traditional terminals; development of glass bottle and plastic bag products drives home delivery channels.
3. Multi-SKU Combined Distribution. Based on marketing strategy, flexibly combine multiple SKUs (category, packaging, flavor) for different channels to improve survival rates of new channels and outlets. a. Plan around category structure to enhance category competitiveness and profit contribution; b. For weak products and markets, plan product strategies to increase market share.
4. Model Market (Store) Creation. Based on previous sales data, create model stores and successfully replicate model experience to other regions and markets. Model stores are divided into image model stores and sales model stores. Generally, image model stores have decent sales, and stores with good sales usually have decent images.
5. Development of Special Channels. Develop special channels based on product characteristics. For example: "City Memory" series for tourist attractions; functional products for catering channels; basic products for group purchase channels; vending machines in high-traffic areas (office areas, schools, subways, office buildings).
6. Business Terminal Visits. Fix visit times and frequencies, maintain customer relationships.

Basic Market Tools
Basic market construction tools include Three Tables and Two Cards (customer information card, sales tracking daily report, business personnel work log). Through joint visits and role exchange with sales personnel, truly understand the details, functions, and significance of these tools to better guide sales personnel.

Customer Information Card
1. a. The customer information card is the ID card of each retail outlet, recording sales status after development, and is an important source for other deep marketing reports.
b. Through complete customer information card data, timely grasp inventory quantity and product dates in channels, ensuring freshness advantages, accelerating product turnover, promoting sales growth, and facilitating accurate store inventory planning.
c. Analyze single-store product structure, sales cycles, and curves to identify growth points, use data to guide store owners, convince them, and ultimately order according to the recommended 1.5 times safety stock.

Sales Tracking Daily Report
Based on the product distribution tracking table, clearly understand weekly sales achievement rates for each salesperson and channel in the region. Combined with previous data, provide important basis for setting next targets, order plans, and sales breakdowns.

Business Personnel Work Log
Reflects daily distribution, stocking, and sales status for each business area. Business supervisors must analyze data changes daily and take timely measures to ensure distribution, stocking, and sales targets are met on time.

Data Management Principles: Data without basis cannot be reported; reported data must be accurate and true.
1. Table Checks: Check table data filling twice a week, especially the "Business Personnel Work Log".
2. Telephone Spot Checks: Based on table content, such as "Terminal Outlet Detail Table", verify through telephone spot checks.
3. Field Checks: According to business personnel visit schedules, field-check the authenticity of data in the Three Tables and Two Cards.
4. Supervision: If false market data is found, strictly assess and order immediate correction.

Conclusion
Terminals have always been a battleground for enterprises. The FMCG industry also holds the belief of "terminal is king." However, how to efficiently output at terminals? Refined management is the top priority for enterprise development.


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