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How to effectively operate in a regional market is a topic of great interest to many distributor friends. I believe that to do well in a regional market, we should start from the following perspectives: First, we need to find where the market breakthrough opportunities lie; if we can't find the opportunity, we'll never know where to sell good products. Second, build up the terminal network and establish frontline distributors. Third, manufacturers and distributors should work together to execute terminal promotions to drive sales growth. These are the key points we should pay attention to when operating in a market.
Optimize Regional Layout and Discover Market Opportunities
First, I want to share how to seize market opportunities and find breakthrough points. This requires us to observe where market opportunities exist, because market opportunities are closely related to the distributor's resources. For example, when manufacturers make new investments, launch new advertisements, allocate new budgets, or introduce new policies, these create market opportunities. Distributors can then match these with corresponding resources to succeed in the market.
Secondly, we should watch for changes in competitors. Internal disintegration of competitors or problems in their manufacturer-distributor cooperation can lead to terminal shrinkage and market decline.
Finally, it's important to emphasize demand: new consumer groups and the establishment of new sales terminals are both new market opportunities.
Once market hotspots are identified and new activities are discovered, distributors need to consider whether their own resources can effectively integrate with these opportunities, then determine their core focus and concentrate efforts on the areas that need breakthroughs. For example, when new products are showcased at a new product event, distributors should consider which types of terminals are suitable for selling those products, focusing on key terminals and key regions.
If you distribute products to all terminals at once, especially new products, consumer acceptance may be poor. In some places, products may sell well, but in others they won't move. If products don't sell, it becomes very difficult to do second or third rounds of distribution.
Therefore, when distributors discover market opportunities and choose to represent new products, they should adopt a gradual approach to distribution. Start by distributing to key terminals with good locations, high foot traffic, and strong customer relationships. Let new products build momentum in these key terminals, using key markets as breakthrough points to open up the local market.
Optimize Resource Allocation and Improve Product Portfolio and Value Chain
We should choose new products with clear differentiation, products that combine point and surface coverage, and products with distinct selling points. Today's consumers are overwhelmed with information and have little patience or time to listen to product introductions. This requires excellent product displays and good customer relationship maintenance. With so many products on the shelves, first, can the product be seen? Second, can the store owner's recommendation language impress consumers? So the product's selling points must be very clear to benefit at the terminal level, encouraging store owners and their spouses to promote your product, thereby boosting sales.
When selecting new products, also consider the profit combination between products. If your product sells too slowly and you've done a lot of advertising, you need a continuous product portfolio, using old products to drive new ones so they can roll forward. When distributor friends look for new products at the sugar and wine fair, they must check whether the existing hot-selling old products' terminals can support the new products they're seeking. If there's good support, the mutual compatibility and driving effect between products will be strong.
In terms of pricing policy design, we also need to think deeply. When distributing a new product or entering a new market, one important issue is the design of the value chain. A terminal store may have hundreds of similar products, and the best-selling ones are always those that bring the owner the most profit or are most familiar to them; otherwise, the owner won't easily recommend them to consumers. So the product's value chain must be well-designed. Initially, the main price difference should be given to core stores. For ordinary stores, you might have 8 yuan; for key stores, 10 yuan. There must be a difference between ordinary and core stores.
Key Points for Terminal Construction and Maintenance
Once you decide to represent a product, how to effectively operate the terminals becomes extremely important.
To make terminals work, first, you need effective terminal planning. For example, if there are 2,000 terminal stores, distributors can select 500 for a pilot program. Choose 500 terminals with good locations, high foot traffic, and strong customer relationships, then distribute products and test the market. After a period, you can summarize which terminals are suitable for selling that product.
Second, promotions are necessary. Just as watering and fertilizing help seeds sprout, the same applies to new products. Giving certain promotions to terminal stores helps the product gain a foothold.
Third, maintain good customer relationships. It's important to have the store owner's spouse actively recommend your product. Not only should you give terminal owners profit, but also teach them how to introduce the product to consumers in the simplest way, using a few sentences to impress consumers and drive sales.
Fourth, establish modern supermarket channels. Because supermarket costs are high and turnover cycles are long, many distributors are reluctant to do supermarket channels.
However, supermarkets remain a very important channel. You can observe that hot-selling products in the market are basically available in supermarkets. Supermarkets are not just a sales channel; they are also a channel to build product and corporate image. Food safety is the most concerning issue for consumers, and supermarkets have a much better image than terminal stores. When consumers see a product in a supermarket, they feel it has class, and at least they think the quality is reliable and worth buying, which strengthens their purchase confidence.
When terminals are well done, the next step is managing second-tier distributors. We must be clear that second-tier distributors are just a supplement, covering terminals outside our core stores. Management of second-tier distributors should include giving them their own territories to achieve good distribution coverage locally, providing them with good service and support, and strengthening communication.
Promotion and Marketing Around Moving Products
The most important thing to emphasize is terminal sales. To increase terminal sales, first, conduct terminal promotions such as tastings, buy-one-get-one offers, and big prizes, continuously giving consumers discounts to create repeat purchases. Second, have themed activities. Whether it's a "Gourmet Taiwan Tour" theme or a "Happy Northeast Tour" theme, the key is to have themed activities to better attract consumers. Third, target terminal store owners. Give them a memorable impression that selling my product not only brings high profits but also excellent service, so they will prioritize recommending our product. Fourth, create a good atmosphere. All hot-selling products have large, impressive displays, and promotional staff should also be in place.
Consumer promotions, advertising and publicity, terminal promotions, themed activities—remember these four points. To carry out these activities, you need a team and cooperation with manufacturers. Manufacturers and distributors must not work independently. Breaking through a market is the desire of both manufacturers and distributors. Therefore, to do well in a regional market, manufacturers and distributors must combine and cooperate. Manufacturers should support distributors with policy formulation, material support, and high-altitude advertising, while distributors should leverage local network communication, local shopping guide platforms, and local alliances for market development.
Finally, a brief summary of how to break through the market. First, discover market opportunities by keenly observing regional market hotspots and changes in consumer groups. Second, optimize resource allocation: ensure product portfolios have complementarity, design a complete value chain between products, and fully leverage the advantages of each product. Third, "dress up" the terminals, meaning execute promotional activities well, which requires close cooperation between manufacturers and distributors, each doing their part to make terminal activities successful.