Introduction: Deploy key promotional activities at critical nodes, motivate employees and channel partners, and achieve a breakthrough.

Author |邢仁宝 (Xing Renbao)
Review |何雯 (He Wen) Layout |张雨薇 (Zhang Yuwei)

With just over a month remaining until the 2024 Spring Festival, it's that time of year again when FMCG manufacturers and distributors gear up for a fierce battle. No one knows how tough this year will be, but we must enter the arena and wade through the waters. In an era of uncertainty, resilience and insight are more crucial than ever. Drawing on past experience, this article explores practical incentive methods to boost performance during the 'strong start' phase for beverages, targeting distributors, secondary/tertiary wholesalers, retail outlets, sales staff, and support staff. The aim is to offer insights that may inspire manufacturers and distributors.

Distributor End: Clear Rhythm, Gradient Guidance, Controlled Execution

During the 'strong start' phase, brands hold ordering conferences one after another. With limited time, manufacturers want to capture more customer funds, so taking proactive and aggressive measures to strike first is more effective.

1. Payment Timeliness Incentive: If distributors complete 40% of their monthly target payment by January 10, they enjoy an additional rebate of 1 yuan per case. If they complete 90% by January 20, they enjoy an additional rebate of 0.5 yuan per case. The prerequisite is completing the monthly target. To avoid price mixing and cross-region selling, rebates are given in the form of gifts, with a list of options provided in advance: delivery trucks, mobile phones, tea tables, travel vouchers, sports watches, etc. This method suits manufacturers with strict payment rhythm requirements, encouraging customers to allocate limited funds and preventing funds from being occupied by other brands midway.

2. Excess Sales Incentive: During the 'strong start' period, after distributors achieve their sales targets, the excess portion earns a 2 yuan per case promotional reward. The rebate amount is credited as prepayment and corresponding products will be delivered with orders after the New Year. This method suits potential customers who are conservative and tend to brake during the sprint phase, so the excess incentive should be strong enough to fully mobilize their enthusiasm.

3. Distribution Incentive: During the 'strong start' period, if payment progress is not behind schedule, distributors enjoy a 3 yuan per case distribution incentive, based on backend sales system distribution data, over 7-15 days. This suits customers with large year-end inventory that need manufacturer help to quickly distribute.

4. Welfare Customer Incentive: Customers have their own relationship networks, and during the Spring Festival, there are opportunities to connect with enterprises and institutions for welfare needs. It is recommended that manufacturers offer certain discounts or physical incentives to encourage customers to actively expand distribution opportunities. However, special attention must be paid to verifying the authenticity of welfare customers, as many irregular cross-region shipments occur this way, and even welfare customer goods may have delivery addresses changed after shipment.

For distributor payment incentives, manufacturers must be cautious, fully assess regional market inventory and sales targets, and develop differentiated incentive plans to avoid a one-size-fits-all approach or 'target-only' mentality, while also preventing price mixing and irregular product flow.

Secondary/Tertiary Wholesale End: Clear Requirements, Vague Rewards, Leverage Momentum

Wholesalers in the distribution system play roles as sales reservoirs and rapid distribution channels, especially crucial during key sales nodes. Common incentive methods include:

1. Stack Display Incentive: At wholesaler stores (or outside their warehouse offices if no storefront), execute stack displays of 50-200 cases, neatly stacked, placed in the most visible spot near the cash register, maximizing the display of 'strong start' promotional materials and clearly showing whole-case purchase promotions. This method is best for urban wholesale market customers, as participation can have a demonstration effect for the brand.

2. Profit Subsidy Incentive: During extraordinary times, tiered promotions that increase profits for secondary wholesalers are effective, e.g., 50 cases per order gets 5 cases free; 100 cases gets 15 cases free. The specific intensity should be determined by manufacturers based on market conditions, but direct discounts should be used cautiously as they can lead to irregular product flow. It is recommended to limit time and frequency, preferably in early to mid-January, or use a 'old product + new product' package to blur price intensity, and delay delivery of rewards proportionally.

3. Distribution Support Incentive: Incentives aimed at helping distribution align better with future healthy manufacturer-distributor relationships. This generally includes: market promotional material support (posters, barriers, price tags, lanterns, couplets, etc.), delivery cost subsidies (fuel, handling fees), and warehouse rent subsidies. Of course, these incentives require clear execution or purchase targets, based on comparable period data, so customers can reach them with a stretch.

Retail Outlet End: Sales-Oriented, Multi-Dimensional Promotion, Systematic Support

As the final point of product sales, terminal turnover is the true measure of product sales. Incentives for the channel end mainly include:

1. Stack Display Incentive: Lock in core channels and outlets for whole-case stack displays, offering display fees or purchase rewards. This has become the most important core business action for major brands during the 'strong start' node. However, limited channel resources and locations require precise selection. It is recommended to choose stores in the top 30% of daily sales, and prioritize locations with high Spring Festival foot traffic such as traffic intersections, communities, and entertainment venues. During execution, ensure 'strong start' gift boxes and bags are fully displayed on stacks. Also, arrange frequent visits by sales staff to replenish stock and prevent competitors from taking display positions.

2. Unboxing Red Packet Incentive: Using 'one product, one code' digital promotions has been effective for some manufacturers in recent years. A QR code is placed inside the case; when store staff open the case to stock shelves, they scan the code to receive a cash red packet, encouraging terminal customers to actively promote the product—the more they sell, the more they earn. Meanwhile, brands can strategically adjust winning probabilities and amounts in the backend system to achieve 'one policy per region' during the 'strong start' period.

3. Tiered Distribution Incentive: This is an application of digital promotions in BC integration. After consumers purchase products, they scan the bottle/can inner code to participate in consumer promotions, and also scan the store code mini-program for store verification. This links product sales data with stores. Then, backend can set store-specific promotions, e.g., if 10 people purchase in a month, the store gets 1 purchase coupon; if 20 people, 5 coupons, and so on. The terminal store mini-program interface shows a countdown reminder of remaining people needed to redeem coupons, effectively stimulating proactive sales.

4. Gift Bundle Incentive: This method is generally used when manufacturers deal with old inventory, but it's also suitable for the 'strong start' phase. For beverages during this period, focus on gift boxes and whole-case sales, and gift bundling should be multi-packaged. Gift selection must fit the Spring Festival consumption scene and brand positioning, such as candy boxes, exquisite window decorations, zodiac plush toys, etc. In terminals with good sales staff control, higher-value gifts like branded USB drives or premium cups can be offered to consumers purchasing larger quantities.

Sales Staff End: Special Bonuses, Dashboard Rankings, Survival of the Fittest

During special sales nodes, incentives for sales staff should be stronger to fully mobilize the team's competitive and learning atmosphere.

1. Special Assessment Incentive: Set single-project rewards for key execution actions during the 'strong start' period, such as 100-case stack displays, cash register stack displays, model store visual merchandising, gift box orders, special channel shaped stacks, and floor dragon displays. This greatly enhances the execution of detailed actions. It is also recommended that sales teams use daily sales dashboards for internal dynamic rankings during individual execution.

2. Excess Target Incentive: This sets rewards for exceeding sales targets, recommended on a per-case basis, higher than regular sales commissions, to stimulate sales staff to keep pushing forward and not hide sales. However, target allocation must be reasonable and fully agreed upon with sales staff; otherwise, it can cause internal motivation issues and affect activity effectiveness. Many companies set a prerequisite that the entire team must complete sales targets, but this can dampen the incentive effect, as it allows underperformers to affect proactive employees.

3. Model Employee Incentive: The 'strong start' phase is the best time to build an execution culture, and establishing sales models is recommended. Select based on overall performance, process indicators, or team internal scoring, such as sales growth awards, channel development breakthrough awards, best 100-case stack awards, etc. Not only should there be a ceremonial award ceremony, but also corresponding bonuses, and winners should have priority for future promotions.

Support Staff End: Full Linkage, Deep Frontline Engagement, Welfare Expansion

During the 'strong start' phase, incentives for internal support staff should also be synchronized, boosting overall team morale. Frontline sales often think support staff sit in air-conditioned rooms and don't understand frontline hardships, so this is a good opportunity to strengthen team integration. Many years ago, at Coca-Cola Shanxi Plant, during the 'strong start' and Mid-Autumn/National Day periods, internal staff were required to schedule shifts for in-store merchandising. Participation was very high, not only for extra subsidies but also to enhance understanding of business and market conditions, improving team cohesion.

1. Collaborative Visit Incentive: Support staff accompany frontline sales on route visits, helping with terminal visual merchandising, stack displays, suggested orders, and other basic actions. They receive bonuses based on sales staff ratings and daily sales target achievement.

2. Sales Commission Incentive: Support staff perform merchandising and product sales in stores and supermarkets, earning bonuses based on POS receipts for the day. However, they must receive professional training before entering stores, including sales scripts and strategies to handle customer objections.

3. Welfare Expansion Incentive: Fully leverage internal channel expansion opportunities by offering employees welfare purchase order rewards. This method still requires careful verification of order authenticity by the business department to avoid irregular cross-region shipments.

All past is prologue. 2024 has begun. Facing industry changes due to economic downturn, those who go farthest are not opportunists but those who diligently hone their skills. By deploying key holiday promotions well and motivating employees and channel partners who have both ability and willingness, we can feel warmth and vitality even in the coldest winter.

邢仁宝 (Xing Renbao), with 14 years of marketing management experience, has served at Coca-Cola, Yili, Red Bull, and other renowned FMCG companies, focusing on corporate marketing diagnosis, manufacturer-distributor relations, channel operations, and digital transformation.