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The most direct and important indicator of a distributor's performance in handling a product is the terminal sell-through after distribution. Because the terminal is the final step where consumers decide to purchase, and it is where the distributor ultimately realizes profits. If the distributor operates well, the terminal can guide consumption, enhance brand image, and increase product flow, securing better and more survival space and resources for the distributor. With intensifying competition in the baijiu industry, terminal sell-through has become the core lifeline of a distributor's market sales. Therefore, solving the terminal sell-through problem is the top priority for increasing sales. So, how can distributors solve the sell-through problem after distribution?
【Case Study】 Li Qiang is a county-level distributor who has been in the baijiu business for many years. Leveraging years of accumulated relationships and customer resources, he achieved considerable development. However, with the arrival of the baijiu industry adjustment period and intensified market competition, pressure from upstream enterprises, rising competition costs from peers, and higher demands from downstream customers caused a sharp decline in Li Qiang's company sales and profits. To ensure the company's sustainable development, considering the 2013 baijiu market situation, Li Qiang conducted a careful market survey and chose a mass-market baijiu brand to operate.
Reasons for Poor Sell-Through Facing slow product sell-through, Manager Li personally visited the market. During his visits, he identified several main reasons for the slow sell-through of new products:
Low Overall Distribution Quality Sales personnel purely pursued distribution rate, focusing only on completing the number of outlets within a specified time, without conducting in-depth understanding of the target terminals for the product. This led to a mismatch between the product's target group and the purchase location. For example, some stores were completely mismatched with the product, and some stores were in a half-dead operating state. This all contributed to slow product sell-through, causing the product and brand image to decline.
Distribution Without Follow-Up Management After distribution, terminal management is equally important. It requires follow-up management and close service. Simply distributing without managing is worse than not distributing at all. During market visits, Manager Li found that the phenomenon of "distribute but not manage" was everywhere. For instance, in some terminal stores, the product was placed but in inconspicuous positions where customers couldn't notice it; in others, the product was placed in the warehouse, but the shelves had no stock. Terminal outlets had width but lacked depth. Another situation was that the market distribution rate was good, but there were only many outlets, while the core outlets that truly generated sales were extremely few.
Weak Terminal Merchandising Sales personnel put in effort but not results. They seemed busy, but in reality, they were just running to outlets, focusing solely on delivery, payment collection, and other routine business tasks. The sales volume of the distributed product became the only goal, and they didn't seriously solve problems. Their daily work was just checking if stores had stock and whether they needed more. It seemed everyone was busy running business, but they were only doing superficial work and not fully taking responsibility to achieve true channel smoothness. For example, some salespeople forgot about product display and terminal merchandising (such as promotional materials, price tags, POP, shrink wrap, KT boards, etc., supported by the company for brand promotion, which were almost invisible in the market), and others forgot to introduce the product's unique selling points and characteristics.
Clever Tactics to Attack Targets Plan Event Marketing to Attract Attention To open a good market entry point, create a sensational event that attracts social attention, especially from liquor consumers. These events easily become news hotspots and hot topics on the streets, rapidly increasing brand awareness, making consumers think of the brand and generate purchase desire. Manager Li planned a promotional activity "Drink XX Fine Wine, Win an Electric Bicycle," strategically placing the electric bicycle prizes, and then combined with local media coverage of the electric bicycles. This resulted in high attention from target consumers, rapidly increasing product awareness, and thus solving the sell-through problem.
Strengthen the Quality of Terminal Promoters Nowadays, liquor distributors adopt the practice of stationing promoters in large hotels, supermarkets, and core name-brand cigarette and liquor stores—terminals with high liquor sales volume and high foot traffic—for on-site recommendation and promotion. Although similar promotional methods are used, due to different brand influences and promotional skills, the promotional effects vary greatly. In addition to ensuring that the liquor taste meets local consumer preferences, distributors should also train promoters in liquor culture knowledge and customer psychology. Because if the promoters' quality and promotional methods are appropriate, promotional efficiency will be greatly improved.
To improve the quality of terminal promoters and effectively enhance brand terminal performance, Manager Li established a strict management system to regulate and constrain the behavior of terminal promoters:
First, terminal promoters are required to submit work information reports based on daily sales;
Second, sales managers regularly go deep into the market frontline to fully grasp the real situation at terminals, objectively evaluate the performance of terminal staff, and implement established reward and punishment policies;
Third, systematically train promoters in both theoretical knowledge and practical skills, provide targeted supervision and guidance, and enhance their sense of responsibility and belonging.
Product Display Has Its Tricks Terminal product display is silent advertising, creating strong visual impact and attraction for consumers. It is the most intuitive interpretation of brand image and an important reason for impulse purchases. Combining with the company's existing problems, Li Qiang standardized terminal display from the following three aspects to effectively enhance brand terminal performance.
Set Appropriate Display Positions Based on first-hand market research data, Li Qiang found that the more customers who come into contact with the product, the higher the purchase probability. Therefore, the company formulated specific display standards, such as the principle of prominent position (the position consumers see first when entering the store); the principle of brand concentration (to showcase brand strength, enable consumers to obtain related and holistic brand associations, and deepen the product's impression in their minds), etc.
Conduct Vivid Displays Vivid terminal displays not only attract consumer attention and stimulate purchase desire but also shape a distinct brand image, directly enhancing brand terminal performance. For example, set up reminder signs and notice boards in large hotels; post advertising posters in low-end stores, hang banners inside stores, hang lanterns under the eaves outside doors, and arrange POP posters and decorative balls on the bar counter in hotels: table cards, menus, tablecloths, ashtrays, magazine racks, clothing covers, etc., with brand advertisements printed on them.
Create a Hot-Selling Atmosphere at Display Points Research results show that about 70% of consumer goods customers make impulse purchases at the terminal. Therefore, a good sales atmosphere can help companies increase sales by 30% to 50%. Therefore, Li Qiang comprehensively used scenes, displays, showcases, in-store POP displays, DM display racks, model displays, promotional videos, and the performance of shopping guides to attract customer attention and enhance the terminal's hot-selling atmosphere. To achieve the best terminal performance, Li Qiang's company terminal displays also considered industry and product characteristics, marketing strategies, and the location and structure of terminal stores, keeping consistency with advertising images and promotional activities, selecting appropriate timing for creation, and unifying detailed operational standards for placement, to create the desired hot-selling atmosphere.
Based on the dynamic strategic combination of "points" and "areas" in the regional market, adopt the strategy of "using points to drive lines, and lines to drive areas," strengthen customer relationships and vivid promotional materials to achieve outlet sell-through, and with terminal research, quickly sell the product.
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