When manufacturers cooperate with distributor companies, the distribution work for new product launches is particularly important. Distributor companies typically handle multiple brands, and if the push for a new product launch is not strong, it may lead to distributor staff being indifferent to the new product, resulting in incomplete distribution and delayed launch progress. Therefore, motivating the distributor sales team's enthusiasm and pace is crucial.
Case Study: In a certain market, distributor boss Mr. Lu had just taken on the agency for a pesticide company's products, becoming the regional distributor for the local market. The manufacturer's sales representative, Xiao Zhang, was responsible for managing and maintaining this client.
After the first order arrived, Xiao Zhang and Mr. Lu jointly formulated a distribution plan and passed it on to the distributor team. Xiao Zhang visited the distributor's office every two days, asking, "How's the distribution going?" The distributor boss always replied, "We're working on it." After half a month, the distribution results were far from satisfactory. The distributor had 1,200 sales outlets, but only 120 had been covered, and order quantities were very small.
When Xiao Zhang communicated with the distributor about the work, the distributor was full of complaints—"Your products aren't good. During our distribution, our salespeople said: low brand awareness, high prices, packaging not up to standard, stores have stock and don't need it now, policies are worse than competitors, product quality isn't good enough..." The distributor boss also said, "Look, I've allocated 5 vehicles specifically for distributing your new product, but because of your product's own issues, I can't do anything." As a result, the distribution in this market failed, causing the distributor to lose confidence, and Xiao Zhang's work fell into a passive state.
Looking closely at the above case, it's not hard to see that Xiao Zhang made several serious mistakes: he only provided a simple pricing system without familiarizing himself with the market; there was no incentive policy for the distributor's sales team to push the new product distribution; he didn't go to the market with the distributor's salespeople, nor did he provide guidance or help for distribution; and he didn't systematically summarize the gains and losses during distribution or replicate successful experiences.
In fact, in any sales process, products will encounter various rejections and temporary non-acceptance reasons from terminals. Finding the deep-rooted causes will surely lead to flexible solutions. The worst thing is when no one digs into the real reasons or summarizes and implements solutions.
Below are some suggestions from the author for new product distribution.
- Deep communication with the distributor to reach consensus and transmit it to the sales team
The distributor boss is responsible for purchasing, while the sales team is responsible for selling. With the boss's instructions and the manufacturer's full cooperation, salespeople can better cooperate. First, through a sales meeting, jointly with the distributor boss, explain the importance of selling the new product, covering both the significance of the distributor carrying the new product and the manufacturer's distribution requirements, item by item, conveying "strict orders" to increase the whole team's attention to new product distribution.
- Jointly formulate sales standards and requirements with the distributor, quantifying indicators
Based on the actual operating conditions of similar products in the local market, develop a distribution strategy that leverages the product's competitive advantages. The manufacturer's representative should work with the distributor to create a detailed distribution plan, including time periods, cycles, number of outlets, item requirements, display requirements, etc., broken down item by item, so the distributor team can "see" how to do it. Only with standards can there be good execution; unquantified requirements are "floating clouds," leaving you confused when tracking and reviewing. Doing this work before distribution will reduce many unhealthy market risks later and leave the distributor team with the impression that the manufacturer has requirements, standards, is serious, and is professional, which is conducive to standard execution.
- Rewards and assessments are essential; new products need new tricks to motivate the sales team
Without a reward and punishment mechanism, even with standards and requirements, it's hard to truly motivate the team. As the saying goes, "No reward, no effort." The manufacturer's representative should work with the distributor to create a special assessment and incentive policy for new product distribution, using temporary "high incentives" beyond other products to boost team enthusiasm. For example: a 5% commission for distribution within one month, with a 3% difference for subsequent normal maintenance; a 20 yuan incentive per store for first-time full-item orders, orders of 20 cases or more, and prominent effective displays.
When the manufacturer's representative and distributor set the pricing strategy, these costs should be calculated. For both the manufacturer and distributor, to ensure effective early distribution, both should provide some practical temporary policies and support, avoiding superficial gestures, because without successful distribution, no one benefits.
- Collaborative distribution, being on the front line, and providing feedback for correction
After completing the above planning, enter the field distribution stage. The manufacturer's representative must visit and distribute together with the distributor's salespeople, providing on-site guidance and collaborative selling. During this process, you can learn real information from the front line, and professional collaboration will also boost the distributor salespeople's enthusiasm. If you don't go to the front line, it's hard to verify the information reported by distributor staff, and their work progress and status are difficult to gauge.
- Maintain good rapport with salespeople and have the proper attitude expected of a manufacturer
As a manufacturer's salesperson, you should maintain a good attitude in front of the distributor's salespeople: neither humble nor arrogant, neither impatient nor rash, approachable but authoritative, understanding the difference between work friendship and personal friendship, and keeping communication simple and guided. These frontline brothers have a tough job, so don't be stingy with praise and encouragement. For those who don't perform well, point it out mainly, and don't easily complain to the distributor boss. "He who wins the people's hearts wins the world." If you're someone who works hard on the front line, your attitude will infect them. Never just command without participating in the battle.
- Communicate business progress with the distributor boss, highlight the strengths of excellent salespeople, and spread positive energy
After work in the evening, when talking with the distributor boss about your collaborative distribution process, be sure to praise the outstanding members of his team and express dissatisfaction with underperformers in a subtle way. Don't take credit in front of the distributor boss or the sales team; give credit to the distributor sales team. They need satisfaction and a sense of honor, which will boost their drive, and the manufacturer's personnel will appear more impressive in the distributor company. This helps unite people and work together to complete the initial distribution work.
- Hold business review meetings, set rankings, identify reasons, and let excellent salespeople share experiences
Regularly hold distribution review meetings to identify reasons for poor distribution, summarize effective methods, and recognize routes and areas with better distribution. Let the responsible salespeople share their experiences to drive learning and reflection across the team. At the same time, set up distribution progress rankings to enhance everyone's competitive awareness and sense of honor.
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(Excerpt from "Terminal Visit and Sales General Model")
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