Click to read the original article for details. In the current FMCG market, where competition is increasingly fierce and brand homogenization is severe, terminal development is a positional battle: "short-blade combat, the brave win." To win, it is necessary to formulate a powerful terminal strategy based on the company's overall strength, specific products, and actual market conditions, and to build a strong terminal service team for planned and step-by-step terminal development.

Common Mistakes in Terminal Development In reality, we find that many companies make mistakes during terminal development, leading to poor results.

Mistake 1: Overly Ambitious Goals That Are Unrealistic Many companies prefer to invest substantial human, material, and financial resources in market coverage, but are reluctant to allocate some funds for necessary understanding and analysis of target markets and sales terminals before distribution. This results in distribution goals lacking a decision-making basis and wasting significant funds. Additionally, some companies blindly believe that bigger goals are better, excessively pursuing coverage rates, even vowing to distribute products to the market in a short time, while the company's own strength, staffing, and resources are far from sufficient.

Mistake 2: Unclear Distribution Goals Distribution goals also have priorities: should we first cover the urban (city) market or surrounding township markets? Should we prioritize catering terminals or circulation terminals? These decisions should be clear, but many companies often achieve poor distribution results due to unclear priorities and lack of organization.

Mistake 3: Lack of Specific and Feasible Distribution Plans "In January and February, distribute all products to the XX market" or "Within three months, distribute products across our regional market." Such distribution plans are mostly vague concepts that cannot be measured. What exactly should be done each day within a month? How many stores should be covered daily? Are the distribution targets catering terminals or circulation terminals? What is the standard for measuring whether products have reached terminal stores? What strategies and methods should be adopted?

Mistake 4: Inadequate After-Sales Service To successfully place products on terminal shelves, many salespeople are willing to verbally promise various conditions to terminal operators, such as return or exchange if products don't sell well. Regardless of whether they can fulfill these promises, they first get the goods distributed, but ultimately lose the trust of terminal retailers because the company refuses to accept returns or exchanges.

Correct Procedures for Terminal Development So, what procedures should be followed for terminal development?

1. Conduct Research on Terminals and Channels

  • Understand the competitive landscape in the regional market: What are the competing brands? How are they performing? What marketing strategies and promotional tools are they using?
  • Understand the local characteristics, customs, consumption habits, and consumption levels of the target area.
  • Understand customer business conditions: Why do terminal customers prefer to sell competing products? What are the monthly sales volumes of competitors? What are the terminal customers' brand awareness, financial strength, main business, sales capability, management capability, and business district status?
  • During the survey, conduct "street sweeping" to build a detailed regional terminal database, then classify precisely. Based on terminal network distribution, achieve detailed and professional service management for future distribution with fixed points, fixed periods, fixed times, fixed personnel, fixed routes, fixed sales volumes, and fixed standards.

2. Formulate Correct and Effective Terminal Development Policies

  • Based on research results, discuss and coordinate the variety, specifications, quantity, price, strategy, and channel selection for distribution products according to the company's overall guidelines for the target area.
  • Determine promotional items as the bridge to enter the market, including which products will be promotional, their varieties, specifications, quantities, and the ratio of promotional items to products.

3. Train Sales Personnel Due to the communication funnel effect: 100% of what you want to say, only 80% is actually said, 60% is heard, 40% is understood, 20% remains after three days, and 5% after three months. This leads to distortion of terminal information during distribution. Therefore, before distribution, sales personnel should be trained and simulated so they can accurately and concisely convey distribution policies and information to terminal customers.

4. Conduct a Certain Scale of Market Coverage Combined with Product Promotion Based on the survey, classify customers according to their recognition and acceptance of the product, importance, relationship level, and development order, and proceed with the first-tier development in line with the company's sales plan.

5. Strengthen Terminal Maintenance Through Service For terminals already stocked, achieve: best display position, maximum display space, highest cleanliness, optimal shelf management, and terminal promotional item placement to showcase a good brand image, create strong sensory stimulation and a selling environment for consumers, and form a pressure-like atmosphere completely superior to competitors. Additionally, use diverse and highly effective point-of-sale promotional activities to create a lively sales atmosphere. After these terminals meet the sell-through standard, proceed with the second-tier development.

************On October 23-24, during the Autumn Sugar and Wine Fair, New Distribution will host the "2018 FMCG City Distribution Logistics Conference." New Distribution will invite industry experts, FMCG warehousing and distribution specialists, and distributors transforming to unified warehousing and distribution platforms to discuss and answer questions about future trends in FMCG city distribution logistics and practical cases of distributor transformation to unified warehousing and distribution, hoping to bring you different inspiration and thinking! The specific agenda is as follows:

List of Participating Companies In no particular order Hunan Zonglan Diandan Network Technology Co., Ltd. Jingbang (Wuhan) International Freight Forwarding Co., Ltd. Mengniu Dairy Qinghai Hanxiang E-commerce Co., Ltd. Unilever Service (Hefei) Co., Ltd. Shanghai Branch Huicong Hunan Xuan'ang Food Co., Ltd. Guangzhou Tongdaoren Information Technology Co., Ltd. Qingdao 888 Trading Co., Ltd. Uni-President Enterprises (China) Investment Co., Ltd. Hunan Province Zhongxiang Gongpei Logistics Co., Ltd. Shenglong Ingredients COSCO Shipping Logistics Warehousing and Distribution Co., Ltd. Guangxi Yongpai Liquor Industry Co., Ltd. Shangqiu Kangrong Trading Co., Ltd. Jinan Dingzhong Economic and Trade Co., Ltd. Liaoning Bimai Agricultural Technology Co., Ltd. Kunming Xiongjia Trading Co., Ltd. Shaanxi Houheng Trading Co., Ltd. Guangzhou Dingwo Enterprise Information Consulting Co., Ltd. Shaodong Jiajiale Commercial Firm Boda Trading Industrial Bank Changsha Branch Wuhan Muchen Convenience Store Chain Co., Ltd. Fujian Fuxing Yuncang Logistics Co., Ltd. Guizhou Yilimi E-commerce Co., Ltd. Jiangxi Xiao Laoer E-commerce Co., Ltd. Jinshan Koufu Shanxi Taihang Yuanjing Supply Chain Management Co., Ltd. Shanxi Dezhun Supply Chain Management Co., Ltd. Shaoyang Tongdeli Trading (Xiangbang Logistics) Huanfu Tongda Express City Distribution Beijing Xinjingxiang Food Co., Ltd. Wuhan Huizhong Tianhong Liquor Co., Ltd. Changsha Paide Biotechnology Co., Ltd. Chao'an Tuqiang Guizhou Yihe Bopin Supply Chain Management Co., Ltd. Jiangxi Kang'en Industrial Development Co., Ltd. Xiangtan County Yisuhe Town Yuhua Paper Store Luoyang Yuanlang Trading Co., Ltd. Tongchuan Yaozhou Huayuan Supermarket Co., Ltd. Hunan Yongfu Jiujiu Trading Co., Ltd. Zhejiang Chengchengtong Logistics Co., Ltd. Chongqing Kaiguo Materials Trading Co., Ltd. Beijing Xianmaixianmai Data Technology Co., Ltd. Hanchuan Qixing Trading Co., Ltd. Tongxin Jiuzhi Trading Co., Ltd. Guizhou Meiguo Guoguo Network Technology Co., Ltd. Hubei Anjie Logistics Co., Ltd. Hubei Kuaixiao Hulian Technology Development Co., Ltd. ......

Representatives of Distributor Transformation (Tentative) In no particular order Chairman of Jiangsu Huashang City Distribution Network Co., Ltd., Rong Jun Chairman of Hubei Yijiaren Logistics Co., Ltd., Wang Bo General Manager of Sichuan Chengdu Xingrenxing Trading Co., Ltd., Jiang Shuming Chairman of Shandong Yunbang Warehousing and Logistics Co., Ltd., Liu Jichen Chairman of Chongqing Lingyu Consumer Goods Supply Chain Management Co., Ltd., Tu Mingyu Chairman of Guangzhou Zhongshan Wanrong Marketing Co., Ltd., Yang Su Chairman of Sichuan Bajie Supply Chain Management Co., Ltd., Yuan Xia Co-founder of Hubei Pengdun Meiyitian Supply Chain Management Co., Ltd., Li Qiangyun Chairman of Henan Xuchang Jiulegou E-commerce Co., Ltd., Zhang Jianyong Founder of Hebei Changyi Logistics Co., Ltd., Ma Haichao General Manager of Hebei (Chengde) Wulian Yuncang Co., Ltd., Meng Yucun Chairman of Xinjiang Urumqi Su'an Jinchi Logistics Co., Ltd., Zhang Xun Chairman of Jilin Sansheng Lianguo, Zhang Hailing Founder of Hebei Dunjie Supply Chain Management Co., Ltd., Qiang Huitao General Manager of Hunan Damei Supply Chain Management Co., Ltd., Liao Lei ......

On October 23-24, the 2018 China FMCG City Distribution Logistics Conference hosted by New Distribution will be held in Changsha. Industry experts have sent their blessings; click the video to watch; more details below.

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