Standard Operating Procedure for Product Launch: 5 Steps

Step 1: Product Positioning Before launching a product, it is essential to have an accurate positioning:

  1. Determine the product's characteristics: Is it a snack food, convenience food, or health food?
  2. Determine the target consumer group: Is it for family or individual consumption? Is it for middle-aged or elderly consumers?
  3. Determine the price system: Will it be high-end, mid-range, or low-end?
  4. Determine the distribution channels: Will it use traditional channels, KA (key accounts), rural channels, urban channels, or a combination of multiple or partial channels?

Step 2: Market Positioning Based on the product positioning, determine the direction of market development and the gradual process:

  1. Decide whether to break into small regional markets one by one, then gradually expand to national and global markets.
  2. Or decide to achieve broad market coverage first, then gradually identify key local markets.

Step 3: Personnel Positioning After the above positioning is determined, personnel can be positioned accordingly: Based on the pace of market development and expected progress, allocate appropriate personnel for market development and control. Should you build a learning-oriented team or primarily poach talent from other companies?

Step 4: Management Positioning Drucker, in his book "Management: Tasks, Responsibilities, Practices," pointed out that the two basic functions of an enterprise are marketing and innovation. Only marketing and innovation produce economic results; everything else is "cost." This shows the importance of sales in the entire enterprise. What enables a company in the FMCG industry to survive and develop—technology or marketing? Production technology can be continuously improved, and process flows can be innovated and perfected. Market opportunities are fleeting. The FMCG industry is highly imitable; technology should be a means to ensure product quality, health, safety, and enjoyment. Coca-Cola's mysteriously guarded formula and Procter & Gamble's dazzling leading technologies have misled many in the FMCG industry. In reality, Coca-Cola's formula and P&G's technology are not worth much; their true value lies in the consumer culture and brand connotation they promote, which is the secret to their global marketing success. Regardless of how robust the technology center or sales system is, the survival and development of an enterprise ultimately depend on the success of management. Managing the sales system is not as operational as managing other departments. The sales system is a vital system for the survival and development of an enterprise, but due to its mobility and breadth, it often lacks proper control in many private enterprises, leading to profitability in the early stages and bankruptcy in the mid-term. Many private enterprises adopt old management models, such as low base salary plus high commission, or even zero base salary plus high commission, to control the sales force, while neglecting true management. This sales management model leads to a disorganized workforce, where employees focus solely on pushing volume to earn high commissions, without considering brand promotion or market capacity. Some salespeople, to earn high commissions, severely damage customer interests and harm the company's image in their market. Once the product is completely dead in that market, they move to another market or another company with similar management practices.

Such management models are completely unsuitable for the development of modern enterprises. International multinational corporations, after identifying problems and making multiple corrections, have developed a new management model for the sales industry—the digital management model—which is now implemented in many companies. Companies like Coca-Cola and P&G, which lead this management model, have strong hardware and software support and are representative in the industry. Similarly, many developing companies spare no expense to poach talent from such companies, but they fail to achieve the essence, leaving the company in chaos. The main reasons are:

  1. The poached personnel do not fully grasp the essence of this management model.
  2. They lack the hardware and software support that multinational corporations have. Similarly, some companies can achieve good development and effectively manage their sales teams by combining multinational management concepts with their own conditions to create suitable management methods. That is: (1) Establish long-term and short-term goals and development plans so that employees clearly understand each step they take and do not lose direction. There will be no changing orders or goals daily. (2) According to the company's current scale, minimize the sales team and gradually improve the sales system. (3) Regional supervisor responsibility system: Regional supervisors have relatively concentrated power, enabling quick decision-making; geographical concentration reduces costs; personnel concentration facilitates management; and it is conducive to meeting challenges within the region. The regional responsibility system increases salespeople's initiative, motivating them to develop local business and build interpersonal relationships. (4) Report-based management is also the core of digital management, with a series of reports such as daily, weekly, monthly reports, inventory reports, competitor summaries, customer development progress reports, and employee evaluation forms. (5) The audit department audits and archives various reports, providing data for the sales department to analyze the market, formulate promotional plans, annual plans, and plans to counter competitors. The audit department also conducts spot checks on the authenticity of the implementation of various sales plans. (6) Change from a single performance-based evaluation to a diversified evaluation, such as market coverage rate, new market development progress, dealer relationship maintenance, and visualization, to assess employees' comprehensive abilities. (7) Conduct regular or irregular market spot checks to verify work conditions. (8) Implement an effective reward and punishment system: severely punish those who violate company rules, and for special cases, announce them company-wide as a warning. Reward those who contribute. (9) Implement a survival-of-the-fittest system to increase employee motivation and prevent laziness. (10) According to company development, appropriately increase investment in hardware and software, such as introducing computer management systems, analysis systems, and increasing the number of offices and branches. (11) Establish a selection mechanism for important positions: appointments should consider not only talent but also character. Grant full authorization, adhering to the principle of "trust those you employ, and do not employ those you doubt."

Step 5: Promotion Positioning After completing the above steps, the company's long-term development comes into play.

  1. Positioning of promotion methods: When conducting a promotion, its purpose must be determined—whether it is simply to increase product sales or to enhance brand influence to gradually increase sales.
  2. Best timing for large-scale promotions: Should large-scale promotions be conducted first to facilitate market distribution, or after the market coverage rate reaches a certain level to stimulate the market?
  3. Promotions can be divided into the following types: (1) Product tasting promotions: After the product is launched in the local market, promotions must be conducted at key retail stores to assist sales. Use promotions and one-on-one tasting to guide consumers, creating a desire to purchase based on our selling points, ultimately leading to purchase. Use product tasting to let consumers experience the difference in taste compared to other products. (2) Advertising guidance: When the market coverage rate reaches a certain level, based on the local market situation and the overall coverage of developed markets, and while saving costs and ensuring effectiveness, use TV media advertising for guidance. (3) Social effect guidance: Use charity events, donations, and other methods to enhance the reputation of the company and product, and leverage media reporters for promotion and momentum. (4) Cooperative guidance: Cooperate with companies in the industry that share common selling points, both intentionally and unintentionally, to jointly promote the selling points (mainly for products with novel selling points). (5) Terminal market promotion: Use assistance to retail customers with store signs, displays, and end caps to increase product visibility for guidance. (6) Profit guidance: Offer customers higher profit margins than competing brands to stimulate consumption. (7) Ground guidance: Use lightbox advertisements, bus body advertisements, and community promotions to guide consumers. (8) Other forms of guidance, such as soft articles and roadshows.

The above five steps are derived from my years of practical work experience. However, I believe that private enterprises must first solve the survival problem and not be overly ambitious, making decisions that are detrimental to development or even lead to bankruptcy. Below is a combination I believe can lead to good company development: A good product (quality assurance) + a good marketing system (strong team) + moderate profit margins (customer operability) + good marketing planning (brand development awareness) + execution (management capability) = company profitability (development)

Distribution (store coverage) is the most direct and effective method for introducing a product to the market, occupying terminals, and increasing market coverage, especially in the FMCG industry. So, what is distribution? Distribution, also known as store coverage, is a market promotion method where the company or in cooperation with local distributors designs a visit route, and business promoters visit retail terminals such as street corner stores, window shops, and small to medium supermarkets to persuade them to agree to sell the company's products. It is the most direct way to ensure consumers can "buy" the product at any point of sale. In the process of launching a new product, we often refer to TV advertising as "air strike (pull)", while distribution is the "ground bombing (push)". The combination of the two constitutes a three-dimensional market "promotion war"! The success of distribution efforts is a key factor in the successful launch of a product! A successful "ground bombing (push)" distribution campaign requires a good promotion execution team and organizational plan. To quickly improve distribution effectiveness, after field visits and observations with promoters, we have summarized the "6 winning elements in the distribution promotion process." These six elements are like the "6 elements" of a narrative: time, place, people, cause, process, and result. Below is a brief explanation of each:

  1. Time: Grasping the right time is key to success. When promoting products to retail terminals, it is important to choose the right time for sales pitches. First, avoid meal times: when the owner's family is gathered around the dining table, it is most taboo to make a rash sales pitch; polite owners will politely decline, while impolite ones may give you a cold shoulder. Second, avoid times when the owner is too busy: when the owner is busy with business and has no time to attend to you, do not chatter endlessly; it is futile and may even be misunderstood as having ulterior motives. Third, avoid times when the owner is in a bad mood: learn to read the situation; everyone has emotions, and if you happen to catch the owner in a bad mood, avoid being the target of their anger! In such cases, it is best to retreat quickly and find another opportunity to break through.

  2. Place: Occupy favorable terrain; details are golden. During distribution, since most of the time you face smaller retail terminals with limited sales areas, some promoters feel cramped when communicating with owners and cannot find a reasonable position to reduce psychological pressure. The correct approach is to maintain a calm and confident expression, act appropriately, and when the customer sits down to talk, casually find a place to sit, avoiding a condescending posture that might create psychological pressure and cause rejection.

  3. People: Identify the key decision-maker and skillfully use "auxiliary people." During actual distribution visits, some promoters often mistake consumers shopping in the store for the owner, and after a long explanation, realize they have addressed the wrong person, which is embarrassing! Or they waste time talking to someone who has no authority, ultimately wasting time without achieving the goal. On the other hand, we should also make full use of other people in the "scene," such as using gifts, samples, or small gifts to "bribe" the owner's children, which often achieves the effect of "achieving the goal through a roundabout route"! As a promoter, you must be attentive and flexible in dealing with people in the "scene," identify the key decision-maker, and effectively use the "roundabout" strategy!

  4. Cause: Clearly state the theme and purpose of the activity. Be sure to clearly tell the owner the theme and purpose of the distribution work. During distribution, we often accompany it with strong promotional efforts, but if used improperly, it can bring negative effects to future market advancement, causing customers to adopt a wait-and-see attitude, buying only when there is a promotion and not when there is none. Clearly explain why the activity is being implemented and its purpose to gain customer recognition.

  5. Process: Grasp the pulse of the conversation and remain calm. "Process" is the substantive process of introducing the product to the customer. First, you need to "store" rich product and industry knowledge, adhere to the sales principle of "come straight to the point and cater to their preferences," read the situation, remain calm, neither humble nor arrogant, and be generous to win favor. Avoid straying too far from the topic and forgetting your purpose. Grasp the pulse of the conversation, guide the customer toward the product, and prompt the intention to "buy"!

  6. Result: Be good at summarizing and continuously improving. Summarize the successes and failures of each day or each promotion. One of the best ways is to list all the rejections you faced during the day on a blank sheet of paper, then analyze and summarize them, and carefully study countermeasures! Through constant "sparring," your sales skills will improve day by day.

After field observation, we conducted a comprehensive practical training on the above 6 elements for distribution personnel. In subsequent distribution work, the success rate of the business personnel increased, their confidence was effectively boosted, and ultimately the product coverage far exceeded our pre-estimated coverage targets!

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