---
title: "Three Objectives and Two Pitfalls of a Distribution Conference"
description: "A distribution conference is a common promotional tool in the FMCG industry, used by manufacturers to boost sales and recruit distributors. Distributors also use these events to expand their network of secondary wholesalers and retail outlets, aiming to quickly place products in stores and capture market share. This article outlines the three key objectives of a successful conference—increasing sales, developing new customers, and easing cash flow while strengthening relationships—and highlights two common pitfalls to avoid."
author: "New Distribution"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
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published: "2014-12-21"
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# Three Objectives and Two Pitfalls of a Distribution Conference

> A distribution conference is a common promotional tool in the FMCG industry, used by manufacturers to boost sales and recruit distributors. Distributors also use these events to expand their network of secondary wholesalers and retail outlets, aiming to quickly place products in stores and capture market share. This article outlines the three key objectives of a successful conference—increasing sales, developing new customers, and easing cash flow while strengthening relationships—and highlights two common pitfalls to avoid.

Friendly reminder: Click the blue text above, “FMCG Distributor Professional Consulting,” to learn more about marketing and distributor internal management.

A distribution conference is a common promotional format in the industry. Manufacturers use this method to boost their sales and recruit more distributors. Distributors are also actively imitating this approach, cooperating with the manufacturers of the brands they represent to actively develop their own secondary wholesalers and terminal sales channels. Through distribution conferences, they quickly deliver products to sales outlets, occupy as much of the outlets' capital and shelf space as possible, and create a strong market offensive and hot-selling scene.

Distributors' distribution conferences can be categorized by customer type into conferences for distribution customers and conferences for sales outlets, and by venue into on-site conferences and door-to-door conferences. This article focuses on on-site conferences. Although the on-site conference format is a powerful and quick promotional method, if not executed well, it can easily become a "eat-drink meeting" with a lively scene but few orders, or a "face-losing meeting" with few participants and an awkward atmosphere. Therefore, to successfully hold an on-site distribution conference, certain details must be given attention.

Three Objectives and Two Pitfalls of a Distribution Conference

A successful distribution conference generally helps distributors achieve the following three objectives:

1. **Increase Sales**
   In a specific region, the distributor organizes the conference, with the company's sales staff assisting, inviting secondary wholesalers and large retailers in the area to participate. Through product introductions, policy presentations, and on-site lucky draws, participating representatives are encouraged to place orders. Typically, each customer orders at least 100 cases, and a single conference can generate several million in sales, completing in one day what would normally take a month.

2. **Develop New Customers**
   For entrepreneurs interested in becoming secondary wholesalers, the distribution conference is undoubtedly the best way to enter this circle. Distributors can leverage the favorable atmosphere and promotional policies of the conference to directly recruit them as their secondary wholesalers.

3. **Transfer Capital Pressure and Enhance Relationship Communication**
   It is common for distributors to face sales limitations due to insufficient capital. Through the conference, distributors can collect funds from participating operators in advance, with delivery or pickup scheduled days later. This not only temporarily uses the secondary wholesalers' funds to ease the distributor's cash flow tension but also gradually guides the formation of a regional alliance sharing capital, network, and warehousing. Additionally, many distributors have little interaction with local secondary wholesalers and retailers beyond occasional business. Such conferences can invite clients with direct or indirect business ties to the distributor and the company, fostering emotional communication and strengthening cooperative relationships.

However, due to inadequate execution, insufficient financial strength, and poor attention to detail, distributors often fall into two pitfalls:

1. **Leaning Left or Right**
   Distributors or sales supervisors unfamiliar with organizing such events may lean too far in one direction. Leaning left manifests as a formal meeting where the organizer dominates the conversation, giving a sense of forced indoctrination. Leaning right, on the other hand, involves casually mentioning promotional policies and turning the entire event into a mere feast.

2. **Failing to Maintain Proper Boundaries**
   Some distributors fail to maintain proper boundaries. To push large volumes of their products, they may resort to unfair competitive practices or fail to honor the promotional policies promised after the conference. In such cases, it would be better not to hold the conference at all.

Pre-Event Research: Finding the Entry Point

After understanding the practical significance of distribution conferences for distributors and the pitfalls they may encounter, we find that details often determine success or failure. Therefore, the first detail distributors should focus on is pre-conference research.

**Survey Customer Relationship Status**
   Once the idea of holding a conference arises, distributors should first extensively visit the market, collect various market information, and especially resolve any unresolved issues with customers quickly, deepening the customer relationship.

   The key to a successful conference is the distributor's customer relationships. If relationships are poor, the conference may have low attendance and fail to meet the expected number of customers. Therefore, it is necessary to survey the distributor's customer relationships in advance to avoid a situation where "the food is easy to prepare, but the guests are hard to invite" (of course, if the distributor is willing to hold a conference, it indicates confidence in customer relationships, but this should not be taken lightly; careful planning and invitations are needed, and the distributor must actively work on inviting customers, which is also a challenge).

   By visiting customers, investigate whether there are any issues in the company's operations. If any exist, even minor ones, they must be addressed and resolved in the early stages.

   Conduct market research to preliminarily understand what policies customers are interested in, and propose some initial ideas to test customers' willingness to attend.

   Pay attention to the time periods when customers can spare time to attend. Different channels have different business hours: for example, customers in agricultural markets are busiest in the early morning and evening; customers near schools have better business on Sundays (for primary schools, during drop-off and pick-up times); township customers are busier on market days; community customers are busier during commuting hours. Also, consider when major customers have important commitments. This information greatly helps in determining the final date and time of the conference.

**Survey Competitor Status**
   Gather information about competitors, including their promotional policies, whether they conflict with the conference's policies, and what complaints customers have about competitors, and how to avoid them. Investigate when other manufacturers and distributors (especially in alcohol, large food, and beverage categories) hold their conferences to avoid scheduling conflicts.

**Determine a Good Theme**
   Many distributors do not put much thought into their conferences, thinking it is unnecessary to make a simple event complicated. Common themes like "XX Brand 2011 Annual Distribution Conference" lack creativity and fail to impress participating distributors. A well-chosen theme can make a significant difference, enhancing brand alignment and giving distributors confidence in a win-win market.

**Determine Scale**
   Distributors should also determine the number of participants: how many customers will definitely attend, how many need strong invitations, how many will not attend but will order, and how many may need manufacturer personnel to persuade them. Confirm the feasibility of the conference; determine the time, venue, and number of banquet tables; determine the budget, including which costs the manufacturer can bear directly, indirectly, or jointly. Put effort into cost allocation and adjust sales staff commissions to ensure the conference yields a surplus.

Use Policies to Entice Customers

The policies for the conference require significant effort from the distributor. A novel policy will attract customer participation. Among the series of linked policies, there must be a standout highlight to keep the conference exciting and stimulate customers' desire to order.

- **"Come and Get"**
   Customers receive a gift just for attending. The gift should have perceived value, either provided by the manufacturer as a gift box or assembled by the distributor from products.

- **"Order and Win"**
   The conference policies should be more generous than usual, making customers feel that such support will not be offered again. If there are gifts, they must have perceived value and be relevant to the customer's current product lines, such as ham sausages, rice, salad oil, or even appliances, vehicles, bedding, travel, training, concert tickets, etc.

- **"More Orders, More Rewards"**
   The policies should have tiers to encourage larger orders. The tier thresholds should be based on the order amounts most customers will place, while also considering the enthusiasm of a few large customers.

- **"Reward After Reward"**
   Incorporate a lucky draw segment, awarding draw tickets based on order tiers, increasing customers' chances to win and motivating them to order more.

It is essential to emphasize that the conference is a cash-only event, with no credit allowed, to avoid fake orders and prize fraud. If a customer insists on credit, the relevant salesperson must guarantee that the payment will be made within a specified period (third-party guarantees put pressure on both the customer and the salesperson, and even if the customer ultimately fails to pay, they may feel guilty toward the salesperson, who in turn feels guilty toward the company, leading them to compensate in other ways). After formulating the policies, discuss them with a few trusted customers in advance to secure their support and avoid a cold scene at the conference.

On-Site: Control the Atmosphere

Controlling the pace of the conference is crucial. A smooth flow boosts customers' ordering enthusiasm, and a lively, passionate atmosphere can elevate expectations to unexpected levels. Therefore, the entire event schedule should be planned in advance, rehearsed, and staff assignments prepared.

**Venue Decoration: Find the Highlight, Atmosphere Matters**
   The theme of the venue must be prominent, visible to all attendees, and the host's speech should be clear. Microphones and speakers must be in good condition so everyone can hear clearly. Background music should be positive, energetic, and impactful.

   Product displays should be novel and eye-catching to attract customers' attention. Product brochures, company profiles, and price tags for samples should be clear.

   Set up hanging flags, posters, banners, roll-up banners, X-stands, and players. If possible, use a projector so customers can clearly see products and policies. Outside the venue, hang banners to help customers find the location, and if necessary, place arches, balloons, and product inflatables.

   Arrange seating in advance to avoid seating conflicting customers together or nearby, and prevent problematic customers from leaking negative information or learning about special treatment policies that should not be disclosed.

   Prepare the cashier area with sufficient receipts, invoicing supplies, and counterfeit detectors. If customers use cards, have POS terminals ready, and ensure the safety of funds. Remind customers to keep their receipts and any prize tickets.

**Combine Pre-Event Invoicing with On-Site Invoicing**
   Nowadays, fewer brands actually write many orders on-site. Typically, a portion of funds is collected from network merchants in advance, especially from large customers, before the conference. On-site orders come from smaller customers and impulsive buyers influenced by the atmosphere. Pre-event invoicing and collection also help control conference costs, preventing overruns due to unexpected attendance, and avoid a cold scene if brand influence is insufficient.

**Create a Lively On-Site Atmosphere**
   The more vibrant the atmosphere, the higher the enthusiasm for ordering, and the greater the influence on small customers and those hesitating. The atmosphere is not just about physical elements like background images, X-stands, banners, flags, and arches, but also soft atmosphere. For example, coordinate with loyal distributors in advance to continuously increase their on-site order amounts, stimulating others to compete. Additionally, set up awards for the highest on-site order and the highest cash order to encourage on-site ordering and create a strong sales atmosphere.

   If the budget allows, not only decorate the hotel venue but also create atmosphere on busy streets. This is particularly effective for township customers and when holding conferences in county towns.

**Must Include Lucky Draws and Gifts**
   Since it is a distribution conference, if gifts are distributed in advance or not provided at all, attendance will drop sharply. A mere meal is no longer attractive to many distributors. Make customers feel that they cannot get gifts or participate in draws without attending, discouraging them from expecting gifts without attending, ensuring accurate attendance and high energy.

**Boost Attendance**
   On the day of the conference, check all preparations in advance. Front desk staff should handle reception, registration, gift distribution, ensuring each customer receives only one gift to avoid duplicates.

   Sales staff should warmly greet customers, be attentive, introduce policies, and handle orders without neglecting anyone. Monitor attendance and call customers to ensure all expected attendees arrive. Arrange orders, especially for key customers, to lead by example (some customers can order before the conference to avoid overcrowding and missed orders).

   Control the pace to avoid dragging on and causing impatience. Product introductions should not exceed half an hour, interspersed with customer order announcements to build momentum. Arrange speeches from manufacturer representatives to show support.

   When introducing products, emphasize how to drive sell-through, addressing concerns about slow sales and returns. Pay attention to customers who have not ordered. During the meal, sales staff should work hard, leveraging the awkwardness of not ordering to push for orders, and use the influence of those who have ordered to encourage all customers to place orders.

Post-Event Follow-Up: Execute Thoroughly

After the conference, distributors should quickly summarize, especially apologizing to any neglected or dissatisfied customers, offering small gifts as compensation when appropriate, and thanking active customers to strengthen relationships.

   Quickly communicate with the manufacturer to arrange stock and deliver orders. For customers who did not attend, provide moderate support. Follow up on sales performance and adjust promptly to avoid product backlog that dampens enthusiasm and leads to returns.

   If some customers order significantly more than usual (over five times), consider not delivering all at once to avoid warehouse congestion and negative impact. Communicate with the manufacturer to finalize expense reimbursements and express gratitude for their support.

**Post-Conference Control: Prevent Exploitation**

There are various types of conferences, but for large orders, customers may pick up goods in batches, and some may pay a deposit upfront and the rest later. Sales staff must stay informed during regular sales activities. If information is delayed or the finance department's records are inaccurate, customers or staff may exploit loopholes. Many companies neglect post-conference control, unaware of the risks.

   The best and most effective method is to use conference management software for tracking and analysis. For example, Suzhou Youshang Software Co., Ltd.'s Supplier S6 software includes a dedicated module that links with sales staff's mobile apps, allowing them to monitor the execution of each conference during daily sales. This helps identify which sales come from conferences versus normal sales, which receivables are from conferences, and which monthly collections are from conferences.

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