Click 'Read Original' for details. Reasonable and effective promotional methods can activate new products' features in the shortest time and rapidly increase market share among similar products; otherwise, they may lead to passive channel stagnation. When launching new products, distributors need to manage various channel links, including sub-distributors, retail terminals, supermarkets, and competing products. Based on the characteristics of each link, distributors can design different promotional methods to achieve the most ideal market coverage. Reasonable and effective promotional methods can activate new products' features in the shortest time and rapidly increase market share among similar products; otherwise, they may lead to passive channel stagnation. Distribution Channel: 'Tiered Promotion' Boosts New Product Market Coverage Our company recently promoted a Product A. Due to its large profit margin, we implemented a 'tiered promotion' strategy. The promotion was set in three stages, successfully launching Product A and achieving a high market coverage rate. This method suits distributors with relatively ample funds and large supermarket clients—Mr. Li, owner of Hangzhou Dingsheng Trading Company in Zhejiang. 1. Tiered Stage One We set tiers at 100, 200, and 400 cases, with rewards of 0.7 yuan/case, 1 yuan/case, and 1.5 yuan/case respectively. The first stage set lower tiers but larger reward margins, mainly considering small clients with limited scale and funds. This stage lasted one week. 2. Tiered Stage Two Tiers were set at 400, 600, and 800 cases, with rewards of 1 yuan/case, 1.5 yuan/case, and 2 yuan/case respectively. At this stage, the new product had received positive response in urban areas and gradually radiated to other regions. Considering the interests of large and medium clients, we raised the tiers. For small clients, they needed to focus on selling Product A, even abandoning other brands, to meet the rebate standards. Due to the success of the first stage and the product's advantages, sales of Product A gradually increased. At this time, large and medium clients with ample funds hoarded large quantities, which could affect price stability. To address this, the company issued a price list for sub-distributors at all levels, clearly stating that violations of pricing policies would result in immediate supply suspension. This stabilized market prices and alleviated concerns about price instability among sub-distributors. This stage lasted two weeks. 3. Tiered Stage Three With the smooth progress of the first and second stages, Product A achieved effective market coverage and rapid sales growth. At this point, the company organized regional sales competitions, evaluating performance by region, setting entry qualifications and reward amounts. The lure of high bonuses greatly motivated clients, leading them to hoard large quantities, maximizing the use of their inventory and funds. This stage lasted one month. 'Tiered promotion' can quickly improve market coverage and boost sales. However, it is a double-edged sword. If the product sells well in the market and moves smoothly, large and medium clients may hoard large quantities to obtain more rebates, inevitably disrupting market prices and affecting price stability. Therefore, after launching tiered promotions, it is essential to clearly define the minimum selling prices for sub-distributors at all levels, with immediate supply suspension for violations. However, price control for first-tier products may have a deterrent effect on clients, but it may not be effective for small brands. Thus, the effectiveness of price control is crucial to the success of promotional activities. Moreover, 'tiered promotion' requires strong support from manufacturers, and it is recommended that distributors act according to their capabilities. Retail Channel: 'You Display, We Gift' Strengthens Terminal Display Our company previously conducted a promotional campaign for a C beverage product, organizing new product promotions in large shopping malls or supermarkets. Through games, Q&A, roadshows, and other activities, we created an atmosphere, gathered crowds, and enhanced the product's visibility, expanding its consumer base—Mr. Zhou, owner of Ningbo Hengda Food Co., Ltd. in Zhejiang. 1. New Product Launch When launching a new product, it is necessary to increase its exposure at retail terminals and attract consumers' attention, which requires expanding the display area at retail terminals. When promoting a new B beverage, the company implemented a series of measures with the guiding principle of 'set a quota, give gifts.' The company set reward conditions: for purchases exceeding 200 cases, for every 2 bottles displayed on the shelf, one bottle of the same product was given as a gift. This measure was immediately recognized by retail terminals, and the display effect was obvious. The distribution rate of B beverage greatly improved. The 'set a quota, give gifts' activity lasted over a month, achieving effective exposure at terminals and increasing sales. For impulse-purchase products like beverages, consumers go to the nearest retail terminal when needed, and their choice depends on the limited products they see there. Even if they intend to buy a specific similar product, if it is unavailable, they quickly find a substitute—the most visible and abundant product on the shelf. Therefore, Mr. Zhou's method of 'gifts for display' effectively increased the display area, exposure, and distribution rate of the product at retail terminals, playing a crucial role in promoting such impulse-purchase products. Supermarket Channel: 'Popularity Promotion' Creates a Hot Sales Atmosphere Our company previously conducted a promotional campaign for a C beverage product, organizing new product promotions in large shopping malls or supermarkets. Through games, Q&A, roadshows, and other activities, we created an atmosphere, gathered crowds, and enhanced the product's visibility, expanding its consumer base—Mr. Wang, owner of Hangzhou Hongyun Food Co., Ltd. in Zhejiang. 1. Promotion Event Site The company held a supermarket promotion themed 'I'm the Coolest in Midsummer.' The theme board was 4m x 3m, standing 5m high, featuring waves, coconut trees, and product images, giving a strong sense of coolness and standing out among many promotions. Combined with advertising materials and recorded promotional broadcasts played over speakers, a lively promotional atmosphere was created. At the same time, Q&A and treasure hunt games were held. To participate in the treasure hunt, one needed a 'game ticket,' obtained by purchasing any two bottles of C product and presenting the receipt. Participants could win small gifts, attracting consumers to join the interactive activities. Roadshows and tasting events were also in full swing, drawing more and more consumers, creating a bustling scene for C product. Mr. Wang's promotional activity was highly innovative, using the theme 'I'm the Coolest in Midsummer' for differentiated promotion, unlike traditional supermarket promotions that typically involve a promotional table, one or two promotional girls, posters, competitive prices, or attractive gifts. Such promotional activities maximized the creation of a lively sales scene, and the continuous gathering of consumers enhanced product visibility, playing a role in promoting the new product. However, this type of activity has an obvious disadvantage: it requires high capabilities from the distributor, high requirements for the event venue, and strong support and cooperation from the manufacturer. Competitor Promotion: 'Exclusive Agreement' Achieves Terminal Interception When a new product is launched, similar competing products may also appear. To ensure sales of the new product and reduce or even eliminate the impact of competitors, the company signs 'exclusive agreements' with retail terminals. After enjoying various financial support from our company, retail terminals cannot sell similar competing products. For example, when promoting A-brand children's milk, the company signed agreements with clients prohibiting them from selling B-brand children's milk. In return, the company provided promotional gifts, umbrella stands, price discounts, and other financial support to help retail terminals move products. The company regularly visits outlets to inspect shelves. If competing products are found, sales representatives are required to remove them. Retail terminals not only cannot sell competing products but also cannot display related promotional materials like door headers or posters. The company tracks outlets through sales representatives to check implementation, aiming to ensure that even the 'shadow' of competing products is invisible, creating a dedicated store for A-brand children's milk. 'Exclusive agreements' help improve the distribution rate and sales of new products. Under the agreement, only one terminal sells the product in a certain area, so the outlet's profitability and product sales depend to some extent on its sales performance of this product. In this situation, outlet clients will actively conduct market research and take various measures to boost sales, such as running promotions, urging sales representatives to ensure proper distribution, display, replenishment, and ordering. As a result, not only do outlet clients increase their revenue, but the new product also gains rapid promotion. Mastering channel promotion is key to new product promotion, and every link should not be underestimated. Through the channel promotion cases of several distributor bosses, it is evident that tailored promotional designs for each link bring different effects and benefits. Distribution channel promotion leads to rapid improvement in new product distribution rate; Retail terminal channel promotion enhances new product exposure and expands display area; Supermarket channel promotion creates a lively promotional atmosphere, allowing consumers to face the new product, try it, and increase its visibility and consumer base; Promotion targeting competitors expands the sales scope of the new product and also mobilizes the enthusiasm of retail terminals. If distributors can grasp the promotion of these important channel links, they are bound to achieve great sales. Source: Sugar, Tobacco, and Alcohol Weekly