---
title: "Terminal Marketing: Winning the Battle for Shelf Space"
description: "Terminal display is strategically crucial in FMCG marketing, as it directly influences sales and brand competition. To secure prime display positions, brands must build strong retailer relationships, negotiate with promotional support, and seize opportunities to expand their presence. Effective terminal display follows principles such as visibility, full stocking, vertical concentration, and strategic placement near leading brands, supported by proper use of promotional materials and staff training."
author: "刘连喜"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2015-03-28"
language: "en"
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# Terminal Marketing: Winning the Battle for Shelf Space

> Terminal display is strategically crucial in FMCG marketing, as it directly influences sales and brand competition. To secure prime display positions, brands must build strong retailer relationships, negotiate with promotional support, and seize opportunities to expand their presence. Effective terminal display follows principles such as visibility, full stocking, vertical concentration, and strategic placement near leading brands, supported by proper use of promotional materials and staff training.

I. The Strategic Position of Terminal Display
Terminal market refers to the very end of the sales channel, where consumers come into direct contact with products, and where manufacturers make the final push to sell. Since in-store display resources are limited, with positions graded as first, second, or third class, and display formats ever-changing, terminal display resources naturally become the battleground for competing manufacturers of similar products.
Many frontline market practitioners often say that terminal marketing has three pillars: display, in-store promotion, and sales promotion. Many experts also break down terminal marketing operations into numerous elements and steps, but all without exception place display first.
1. Display (position, quantity, quality) is directly proportional to sales.
No display, no sales. The best-selling products are often those that occupy the largest and best display resources, and monopolistic leading brands first monopolize display resources. Take the shampoo industry as an example: P&G's shampoos occupy half of the display space in over 90% of retail outlets.
2. Display position determines market success or failure.
Challenger brands primarily employ tactics such as close positioning, interception, seizing, squeezing, and penetrating the display positions of leading brands. For instance, in recent years, C-Bons has had a slogan: "Stay close to P&G, stay away from Bawang." When I worked at Bawang, I was responsible for markets where many stores gave Bawang products large display areas and good image building, but the surrounding brands were second-tier ones like LAF, DiCai, Kao, and Cele, along with unknown brands. Bawang's price and market positioning were significantly higher than these circulating brands, and this display situation severely impacted sales because mid-to-high-end consumers first consider the two leading brands, P&G and Unilever. Bawang, placed in the miscellaneous brand zone, lost the opportunity to attract the attention of its primary target consumers and could not leverage the close-range interception advantage of its sales promoters. So I also formulated a policy: "Stay close to P&G, stay away from the miscellaneous brands!"
3. Brand strength/expense investment determines the allocation of display resources.
"Big manufacturers bully merchants, big merchants bully manufacturers"—this is the unchanging rule in the manufacturer-retailer game. Generally, the display quantity and position of a product at a terminal are determined by factors such as brand influence, sales volume, gross margin, and business relationships. First-tier brands can easily, even without spending a penny, secure the best display positions and more display space, coupled with more product lines and SKU numbers, plus scientific and professional product display formats and terminal brand image building, invisibly forming a solid "terminal barrier." Second- and third-tier brands have to develop in the nooks and crannies of shelves, and the huge display disparity is like an insurmountable chasm.
Can the weak position of lesser brands in display resource allocation be reversed? Of course. In a market economy, there is no unsolvable problem, only unacceptable costs. Retailers, who have transformed from the weak to the strong, also have resentment against the strong brands that once oppressed them, and are willing to support emerging brands with high profit contributions to counterbalance leading brands and optimize product mix. As long as you are willing to pay display fees, you can get as much display space as you want and choose any position.
Last year, at a Trust-Mart in Wenzhou, I saw a shampoo brand I had never noticed before (I can't recall the exact name, maybe Obersney). Its regular display was larger than Bawang's and C-Bons', and it had also purchased an end cap, a 6-square-meter image floor display, and a 4-square-meter display pillar, with six promoters around the special display intercepting and hawking. At that time, I thought Bawang and C-Bons each sold only 70,000-80,000 yuan in that store. This brand's monthly expenses were at least 50,000 yuan, requiring retail sales of at least 100,000-200,000 yuan to support such huge costs. Was it losing money to make a splash? An employee accompanying me on the store visit told me that this brand's monthly sales were nearly 200,000 yuan (for the full product line), higher than Bawang and C-Bons combined. I could only marvel: "How bold is the person, how great is the output!"
II. How to Secure Good Display Positions
1. Strengthen customer relationships at the terminal. "A single flower does not make spring; a hundred flowers in bloom bring spring to the garden." For a retail store to sustain operations, attract consumers at all levels, and achieve higher business efficiency, it cannot only sell leading brands; it must also support potential brands, high-profit products, low-price products, high-traffic products, seasonal products, and private labels. For other brands to get good display positions and larger display areas without paying fees, they must have good customer relationships. Customer relationships require regular visits, long-term maintenance, and professional communication. Many excellent brands, after entering chain systems, fail to follow up and maintain stores across regions, leading to their product displays being gradually eroded by competitors, declining sales, and eventual delisting.
2. Learn to think in the retailer's way, and use promotional activities and expense support as leverage to gain display support. Retailers focus on buyer promotions, pursuing "foot traffic, average transaction value, visit frequency, purposeful purchases, impulse purchases, unit output, single-item gross profit contribution, and sales rankings." Manufacturers' one-sided consumer promotions and so-called "market share, input-output ratio, and brand loyalty" mean nothing to the store.
Negotiate with the store through promotional activities such as special prices, buy-one-get-one, sweepstakes, and roadshows to secure special display support like floor stacks and end caps. Use the sales boost from promotions to request the store to expand your product's shelf display area and adjust its position, and continue to occupy the expanded display area after the event. Don't miss any opportunity, even if it's just one more SKU display spot. Small gains accumulate, and your display area will grow. If you don't care about these small things, other brands will encroach on your territory, your display will shrink, and sales will decline.
3. Seize opportunities to adjust and expand display. Stores rarely give new brands ideal display positions and sufficient display area. As long as you seize the right moments, you can gradually improve your position and expand your area.
(1) When a brand with poor sales is delisted and removed.
(2) When the store adjusts its display layout.
(3) When seasonal adjustments are made to product mix.
(4) During major holidays, store anniversaries, and promotional events.
(5) When a competitor's contract expires.
(6) When a competitor's relationship with the store is tense.
...
Although terminal display is important, it is not omnipotent; it needs to be combined with other marketing tactics to significantly drive sales. Many manufacturers invest heavily in terminals—expanding displays, adjusting positions, buying floor stacks, and running promotions—only to lose their shirts and cry "terminal trap." In fact, expanding displays, buying floor stacks, and beautifying terminal displays are not wrong. The failure lies in these companies not truly grasping the essence of terminal marketing. Display, though a crucial part of hard terminals, is only the tip of the iceberg. It also requires soft terminal support such as product quality, brand communication, sales promoters, and promotional plans. Otherwise, it's like laying an international-standard railway but still using a steam locomotive—the speed won't increase! The failure of Bairei Runfa's launch last year is a case in point. The various elements of terminal marketing were applied sporadically and incoherently; for example, they bought a large floor stack but had no promotional plan to follow up, no promoters to introduce the product, and the product placement was unattractive, so sales were naturally poor.
III. What Are the Principles of Vivid Terminal Display?
Terminal vividness means presenting products more vividly to consumers. FMCG consumers often make unplanned purchases—seeing product displays, promotional activities, and advertising appeals triggers immediate decisions. Vividness can enhance product display effectiveness and stimulate purchase intent.
1. Principle of Visibility
Product displays should strive to be in the main aisle where consumers can easily see them. This is the primary condition for making a sale. Let consumers see the product clearly and attract their attention to stimulate impulse buying. Therefore, product displays should be eye-catching, with large display surfaces, striving for vividness and aesthetics.
All products on shelves must have their Chinese trademark facing consumers uniformly. No other brands should be mixed in horizontally or vertically, achieving a neat, beautiful, and eye-catching display. The overall style and tone of the product display should be unified.
2. Principle of Maximum Full Display
The goal of product display is to occupy more display space and increase the quantity on shelves as much as possible. Only by occupying more display space than competing brands will customers have a higher chance of buying your product.
As an old Chinese saying goes, "Goods sell in piles." Make sure your products fill the shelves to achieve a full display. This not only increases product visibility but also prevents competitors from squeezing and penetrating your display space.
When an item is out of stock, place an out-of-stock sign in front of the display or expand the display of the same series or similar products to protect the display area.
3. Principle of Vertical and Centralized Display
Vertical and centralized display not only captures consumers' attention but also makes it easy to create vivid and effective displays, because people's visual habits are first up and down, then left and right. Vertical centralized display aligns with habitual sightlines, making the product display more layered and imposing. Unless the store has special regulations, products must be displayed by specification and category in a centralized manner.
When displaying the full range, follow the principle of vertical category display and horizontal efficacy display, placing all company products on one shelf in categories. This meets the needs of different consumers and increases sales, while also enhancing the company's image and increasing product influence at the point of sale.
5. Principle of Heavy Below, Light Above, and Color Coordination
Place heavy and large products at the bottom, and small and light products at the top, for easy consumer access and to align with aesthetic habits.
The color, shape, and size contrast between adjacent products should not be too large; the color contrast between products displayed vertically should not be too large. Generally, transition from warm to cool tones (alternating warm and cool displays should pay attention to color harmony).
6. Principle of Dynamic Display and Related Display
On the basis of a full display, intentionally remove a few products from the outermost layer of the shelf. This not only facilitates consumer access but also shows the product's good sales status.
Discover the relevance between products based on usage purpose, function, and characteristics, such as placing conditioner next to shampoo.
7. Principle of Golden Position
When displaying a series of products on a stack or shelf, always highlight the main product's position, giving the hero product/best-seller/new product/seasonal product the largest display space and the golden position. This makes the priority clear, allows customers to see at a glance, and boosts sales.
For horizontal display, try to place products at the golden position at eye level.
(The area 120-160 cm from the floor; on a seven-tier shelf, the third and fourth tiers are golden; on a five-tier shelf, the first and second tiers are golden. Floor stacks, end caps, and areas near the main aisle are all golden positions.)
8. Principle of Easy Access
Place products where consumers can most conveniently and easily pick them up, considering the age and height of different target consumers. For example, children's products should be placed below 1 meter.
10. Principle of Cleanliness and Safety Stock
Ensure all displayed products are neat and clean.
Ensure that the variety and specifications of in-store inventory do not fall below the "safety stock line."
11. Principle of Accurate and Eye-Catching Pricing
Products and price tags must correspond one-to-one. Price tags include POP, price stands, and stickers that indicate product price or performance.
Clear and eye-catching price tags are one of the driving forces for increased purchases. They not only enhance the promotional effect of the display but also let consumers buy with confidence. You can compare prices with similar products and write out special prices and discount figures to attract consumers. If consumers don't know the price, even if they want to buy, they may hesitate, losing a sales opportunity.
12. Principle of FIFO/LIFO
FIFO: Place products with earlier production dates at the outermost layer and newer products inside to avoid product expiration. For dedicated shelves and floor stacks, follow the company's required cycle (e.g., two weeks for daily chemicals) to rotate products, putting earlier-produced items outside.
LIFO: For promotional packs, use LIFO during the promotion period.
14. Principle of Leaning on the Big Tree
Stay close to leading brands and stay away from the entanglement of follower brands and miscellaneous brands.
IV. How to Build Terminal Brand Image?
Terminal brand building is a higher level of terminal display, involving image beautification and brand communication on the basis of display.
As an old Chinese saying goes, "If you want to do a good job, you must first sharpen your tools." Therefore, terminal image building cannot be separated from rich and innovative material support, such as:
1. Shelf billboards and hanging flags: mainly used above product display shelves, can also be used as hanging flags.
2. Brand image hanging flags: mainly hung above the product category area.
3. Shelf edge strips: mainly used on the shelf layers of shelves and end caps (where price tags are placed).
4. End cap side panels: mainly used for end cap packaging.
5. Shelf wings: used for shelf decoration.
6. Floor stack side panels/image combination floor stacks: mainly used for floor stacks to enhance promotional effect and brand image.
7. Floor stickers: mainly pasted on the floor in front of shelf displays, floor stacks, and end caps.
8. POP information cards: mainly used for promotional activities such as special prices, buy-one-get-one, and sweepstakes. They attract customers better, so they must be placed in prominent positions.
9. Posters: image promotional posters.
10. Advertising standees/roll-up banners: at the site or entrance of promotional activities.
11. Store signs/vehicle advertisements.
12. Small display racks/small display cabinets: mainly used on both sides of end caps and other special displays in the store.
13. Promotional tables: for indoor and outdoor promotional activities.
14. Umbrellas.
15. Image-wrapped pillars: designed and produced according to the store's actual conditions, mainly used for image promotion and special displays.
...
For terminal brand companies, developing and designing image materials is no problem at all; the key lies in training and usage. Many brands that lead in terminal marketing have professional terminal brand image building guidance departments that develop materials and provide training and guidance on grassroots terminal display and image building. They also develop "Product Display Manuals," "Terminal Brand Building Manuals," and "Guidelines for Applying for and Using Promotional Materials."
I have seen many salespeople of terminal brands who don't even know what image materials their company has and how to apply for and use them. So I say, if terminal marketing is not done well, the problem lies in the market, but the root cause is at headquarters.
Terminal display/terminal brand building is the frontline position for product sales. In this battle for position, is your sales team fighting alone or coordinating under the company's professional guidance?
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