Terminal market, the very end of the sales channel, is where products meet consumers and where manufacturers score the final goal of sales. Display resources in stores are limited, and display positions are graded into first, second, and third tiers. Display formats are ever-changing, making terminal display resources a natural focal point of competition among manufacturers of similar products. This is akin to the struggle for strongholds in warfare, where both sides compete in personnel, tactics, ammunition, command, and individual soldier quality, but the core ultimately revolves around product display.

Many frontline market practitioners often say that terminal marketing has three driving forces: display, in-store promotion, and sales promotion. Many experts also break down terminal marketing operations into multiple elements and links, but all without exception place display first.

  1. Display (position, quantity, quality) is directly proportional to sales. No display, no sales. The best-selling brands are often those that occupy the largest and best display resources, and monopolistic leading brands first monopolize display resources.

  2. Display position determines market success. Challenger brands primarily employ tactics such as close-in positioning, interception, seizing, squeezing, and penetrating the display positions of leading brands.

  3. Brand strength/expenditure determines the allocation of display resources. "The strong manufacturer bullies the distributor; the strong distributor bullies the manufacturer"—this is the unchanging rule in the manufacturer-distributor game. Generally, the display quantity and position of a product at the terminal are determined by factors such as brand influence, sales volume, gross margin, and business relationships. First-tier brands can easily occupy the best display positions and more display faces, even without spending a penny, coupled with more product lines and SKU entries, plus their scientific and professional display formats and terminal brand image building, they invisibly form 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 disadvantaged position of weak brands in display resource allocation be reversed? Of course. In a market economy, there are no unsolvable problems, only unacceptable costs. Retailers, who have transformed from the weak to the strong, also harbor 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 any size display and choose any position.

II. How to Secure Good Display Positions

  1. Strengthen business relationships at the terminal. "A single flower does not make spring; a hundred flowers in bloom bring spring to the garden." To sustain operations, attract consumers at all levels, and achieve higher operational efficiency, terminal stores cannot only sell leading brands; they must also support potential brands, high-profit products, low-price products, high-traffic products, seasonal products, and private labels. For other brands to secure good display positions and larger display areas without paying fees, they must have good business relationships. Business relationships require regular visits, long-term maintenance, and professional communication. Many excellent brands, after entering chain systems, fail to maintain follow-up 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 expenditure 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, return on investment, and brand loyalty" are irrelevant to stores.

Negotiate with stores through promotional activities such as special prices, buy-one-get-one, sweepstakes, and roadshows to secure special display support like pallets and end caps. Use the sales boost from promotions to request expanded shelf display area and better positions, and continue to occupy the expanded area after the event. Seize every opportunity, even if it's just one more display slot; small gains accumulate, and your display area will grow. If you don't care about these small matters, other brands will encroach on your territory, your display will shrink, and sales will decline.

  1. Seize opportunities to adjust and expand displays. Stores rarely give new brands ideal display positions and sufficient display area. By mastering the right timing, you can gradually improve positions and expand areas.

(1) When poorly selling brands are delisted and removed. (2) When stores adjust their display layouts. (3) When seasonal adjustments to product mix occur. (4) During major holidays, store anniversaries, and promotional events. (5) When competitor contracts expire. (6) When competitor-store relationships are strained. ...

Although terminal display is important, it is not omnipotent; it needs to be complemented with other marketing tactics to significantly boost sales. Many manufacturers invest heavily in terminals—expanding displays, adjusting positions, buying floor pallets, and running promotions—only to lose their shirts and cry "terminal trap." In fact, expanding displays, buying floor pallets, 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 just the tip of the iceberg for terminal marketing. It also requires soft terminal support such as product quality, brand communication, in-store promoters, and promotional plans. Otherwise, it's like laying an international-standard railway but still using a steam locomotive—speed won't increase. The failure of Ba Nian Run Fa's launch last year is a case in point. Their use of various terminal marketing elements was fragmented and inconsistent; for example, they bought a large floor pallet but had no promotional plan to follow up, no promoter to introduce the product, and the product placement was unattractive, so sales were naturally poor.

III. What Are the Principles of Terminal Vivid Display?

Terminal vivid display is about presenting products more vividly to consumers. FMCG consumers often make unplanned purchases—seeing product displays, promotions, and advertising prompts them to decide on the spot. Vivid display can enhance product presentation and stimulate purchase intent.

  1. Principle of Visibility Product displays should strive for prominent main aisle positions 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 trigger impulse buying. Therefore, product displays must be eye-catching, with large display faces, and strive for vividness and aesthetics.

All products on shelves must have their Chinese trademarks 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 display should be consistent.

  1. Principle of Maximum and 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 can 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 visibility but also prevents competitors from squeezing in or encroaching on 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.

  1. 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 sight lines, making the product display more layered and imposing. Unless the store has special regulations, products must be categorized and displayed centrally by specification and type.

When displaying all items centrally, follow the principle of vertical category display and horizontal efficacy display, classifying all company items on one shelf. This meets the needs of different consumers and increases sales, while also enhancing the company's image and product influence at the point of sale.

  1. 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 preferences.

Color, shape, and size contrasts between adjacent products should not be too large; vertical displays should have minimal color contrast between upper and lower items. Generally, transition from warm to cool tones (alternating warm and cool displays should pay attention to color harmony).

  1. Principle of Dynamic and Related Display On the basis of full display, intentionally remove a few products from the outermost layer of the shelf. This facilitates consumer access and signals good sales performance.

Discover associations between products based on usage purpose, function, and characteristics, such as placing conditioner next to shampoo.

  1. Principle of Golden Position When displaying a series of products on a pallet or shelf, always highlight the main product's position, giving the hero product/best-seller/new product/seasonal product the largest display space and golden position. This creates clear hierarchy, makes it easy for 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 about 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. Pallets, end caps, and areas near main aisles are also golden positions.)

  1. Principle of Convenience for Access Place products where consumers can access them most conveniently and easily, considering the age and height of target consumers. For example, children's products should be placed below 1 meter.

  2. 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."

  1. Principle of Accurate and Eye-catching Pricing Products and price tags must correspond one-to-one. Price tags include POP, price stands, stickers, etc., indicating product price or performance.

Clear and eye-catching price tags are one of the driving forces for purchase, enhancing the promotional effect of the display and making consumers understand what they are buying. 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, they may hesitate even if they want to buy, losing a sales opportunity.

  1. Principle of FIFO/LIFO FIFO: Place products with earlier manufacturing dates on the outermost layer and newer products inside to avoid product stagnation and expiration. For dedicated shelves and pallets, turn over products according to the company's required cycle (e.g., two weeks for daily chemicals), putting earlier products outside.

LIFO: For promotional packs, use LIFO during the promotion period.

  1. Principle of Leaning on the Big Tree Stay close to leading brands and stay away from followers and no-name brands that pester you.

IV. How to Build Terminal Brand Image?

Terminal brand building is a higher level of terminal display, involving image beautification and brand communication based on display.

As an old Chinese saying goes, "If you want to do good work, first sharpen your tools." Terminal image building cannot be separated from rich and novel 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 product category areas.
  3. Edge stickers: mainly used on shelf display and end cap shelves (where price tags are placed).
  4. End cap side signs: mainly used for end cap packaging.
  5. Shelf wings: used for shelf decoration.
  6. Pallet side panels/image combination floor pallets: mainly used for pallets to enhance promotional effect and brand image.
  7. Floor stickers: mainly pasted on the floor in front of shelf displays, pallets, and end caps.
  8. POP information signs: mainly used for promotional activities such as special prices, buy-one-get-one, sweepstakes, etc., to better attract customers, so they must be placed in prominent positions.
  9. Posters: image promotional posters.
  10. Standing signs/pull-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 stores.
  13. Promotional tables: for indoor and outdoor promotional activities.
  14. Umbrellas.
  15. Image-wrapped pillars: designed and produced according to the actual situation of the store, 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 are leaders in terminal marketing have professional terminal brand image building guidance departments that develop materials and provide training and guidance on terminal display and image building at the grassroots level. 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 position warfare, is your sales team fighting alone or in coordinated operations under the company's professional guidance?

-END-

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