Distribution is the first step in bringing a new product to market, and it is crucial. The path of new product distribution requires careful planning and attention to detail. To succeed, one must first understand the characteristics of distribution, the standards to follow, and how to formulate effective strategies. Below is a detailed explanation of what makes new product distribution so meticulous.
I. Understand the Four Major Characteristics of Distribution
1. Thorough Preparation: Any battle fought without preparation or with insufficient preparation often ends in failure. For example, before distribution, fully extract the product's selling points and buying points; analyze the market environment and sales of similar competing products to find a breakthrough for the new product; thoroughly analyze the network channels and select the easiest to enter and most suitable ones; design profit margins and pricing systems; make a distribution plan, choose the timing, determine the quantity, train sales staff, assign execution personnel and delivery vehicles, and design compensation, subsidies, commissions, and even development rewards for sales staff.
2. Short Timeframe: Without a time node, the distribution campaign can easily fall into a loose state without progress or pressure, making it difficult to achieve results. Generally, the market is required to complete the initial distribution task within 50 days. Typically, through three waves of distribution, a coverage rate of over 80% of matching outlets is achieved. The first phase lasts 25 days, completing 60% of market distribution; the second phase lasts 15 days, completing another 15%; the remaining 10 days complete another 10%; the remaining 15% are stubborn outlets that need to be maintained and developed later.
3. High Speed: Concentrate superior manpower, material resources, and financial resources to achieve efficient and rapid market development in one go, completing distribution goals. To solve the problem of efficient distribution, many companies sometimes pull personnel from other markets to form a special distribution task force to assist. In short, quickly completing distribution is a prerequisite for product launch.
4. Strong Strategy: Distribution requires strategy, and winning the first battle is crucial. Without a matching distribution strategy, efficient execution cannot be formed, and the team is prone to losing morale in the face of repeated setbacks. Only with a matching strategy can the team remain high-spirited and achieve distribution goals one victory after another. In practice, a combination of methods such as vehicle sales, market突击队 (assault teams), display replacement, and free tasting is more likely to succeed. Many companies tend to adopt the mature product model of separating sales visits and orders during the distribution phase, which is not only ineffective with low closing rates but also demoralizes the distribution team, affecting work efficiency.
II. Determine the Three Standards for Distribution
Without standards, it is difficult to form a combined force, achieve explosive resonance, or create a stunning market effect.
1. Establish a Distribution Management System.
Clearly define the distribution area, routes, terminal types, and terminal quantities; clarify the responsible persons for distribution; and standardize distribution requirements. Formulate specific reward and punishment rules and strictly implement them to make distribution work routine, standardized, and institutionalized. Execute according to the distribution plan, requiring the distribution team to hold morning meetings daily to report progress and assign daily tasks, breaking down tasks to individuals. In the afternoon, hold evening meetings to review the day's work, submit distribution forms, and have the supervision team inspect. For key customers and critical moments, the sales manager should personally lead the team on the front line to boost morale.
2. Standardize Product Display Standards.
Good display and vividness not only stimulate consumers' eyes but also create market momentum, allowing consumers and terminal customers to feel the active atmosphere of the new product. Therefore, clarify product display requirements to maximize and enliven the display, making the product "shine" within the "first" line of sight.
3. Implement One-Stop Service for Distributed Products.
Adhering to the principle of "whoever distributes benefits, whoever distributes is responsible," assign responsibility to individuals and "stick to the end." Strictly delineate areas, requiring distribution personnel not only to place products in terminals (such as restaurants, liquor stores, small shops, and supermarkets) but also to find ways to sell products to "consumers." Sales staff should take the lead in helping terminal stores boost sales of new products, achieving full tracking service for distributed products. Through effective distribution and certain marketing tactics or strategy combinations, align products with the market so that when consumers need them, they can see them, buy them, and be willing to buy them, truly completing effective distribution.
III. Distribution Strategy Is Key to Success or Failure
A qualified general never sacrifices soldiers' lives to win a war. An excellent commander is good at choosing the right situation rather than the right people. Therefore, a matching strategy is more likely to achieve distribution success and demonstrate team execution.
1. Create Market Momentum to Reduce Distribution Difficulty.
To facilitate smooth distribution, companies can create buzz in local media before distribution, such as local newspapers, TV, outdoor advertising, etc., to attract the attention of outlets. They can also use in-store posters and banners to create ground-level momentum. Well-funded manufacturers can choose a higher-end hotel to hold a "new product launch meeting" (tasting event), inviting government officials, distributors, and media to expand brand influence.
2. Standardize Promotion Language to Demonstrate Professionalism.
Unified language and scripts in distribution promotion can highly demonstrate the professional quality of the business, avoiding improvisation and off-topic remarks. For example, introduce the product's features, policies, market strategy, and how to help customers move inventory. Also, introduce the quality of the liquor, preferably inviting customers to taste it on the spot, then explain the base liquor used, the unique process, and the praise from master tasters.
3. New Product Distribution Is Absolutely Not Channel Stocking; FMCG Requires More Movement.
A reasonable distribution quantity can give customers the illusion that the product is moving quickly. In the first round, one unit per item per store ensures both display needs and product sales. Since the initial order is small, the frequency of orders will be high. Of course, customers will not take the initiative to order, so the salesperson must do follow-up maintenance. Generally, the second and third orders from terminal outlets are key to successful product launch and are a prerequisite for building their sales enthusiasm. For small and medium-sized enterprises, when unable to invest heavily in advertising and PR to pull terminal sales, they must find ways to distribute for cash. Cash distribution makes terminal customers take it seriously and is relatively easier to get them to actively promote.
4. Design Activities and Policies That Appeal to Customers.
Many terminal stores sometimes care less about your product and more about the distribution rewards. It is crucial to determine appropriate, novel, and attractive promotional items based on distribution requirements. For example, tiered distribution rewards, purchase rewards, account opening rewards, promotional item support, free products, display rewards, etc., making customers feel they are getting a bargain, which makes cash distribution relatively easier.
5. Concentrate Corporate Resources for Point Breakthroughs and Create Demonstrations.
In key regional markets, choose key terminals for breakthroughs, and use the demonstration effect to drive distribution from point to area. During new product distribution, select existing old customers or relationship customers for special policy distribution rewards to quickly establish image stores, create a hot-selling atmosphere, set benchmarks, and use the influence of image stores to penetrate surrounding small terminals, achieving the goal of using point activation to drive area distribution and seizing channel resources through effective distribution.
6. Customer Relationships Are Important; They Come from Diligence and Persistence.
During distribution, salespeople tend to choose relationship stores and have fear or resistance to unfamiliar stores, or avoid them after one setback, thus losing many effective terminals. Salespeople must not only fully utilize stores with good relationships as demonstrations and use entered stores to induce unentered ones, but also face difficulties head-on, visit and communicate more, and even help unfamiliar store owners with tasks within their ability to build relationships and enhance customer relations, such as organizing shelves, cleaning, and suggesting business improvements. Through diligence and persistence, they can move terminals and achieve smooth distribution. Do not lose confidence because of a customer's rejection.
7. Concentrating Vehicle Fleets and Personnel to Create Momentum Can Impact Terminals.
During distribution, a promotion fleet composed of multiple people can be established for team distribution. Use the psychology of team warfare, and through the parade of the distribution fleet to create momentum, attract terminals and create a sensational effect. During the process, clearly divide tasks among team members and achieve smooth distribution through coordinated teamwork.
All these are based on continuous training, strict planning, summarizing shortcomings, tracking guidance, and constantly solving differences among various terminal outlets to achieve efficient market distribution.
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