---
title: "Three Steps to Get Your Products into Every Effective Outlet"
description: "Terminal distribution is a crucial part of operating a model market, yet many companies distribute blindly, either setting overly ambitious goals that fail to deliver or lacking effective positioning so the products don't sell. How can companies distribute effectively? Determine effective outlets and set reasonable distribution goals. The terminal distribution target (distribution rate) for a model market should be based on the product's attributes and target consumers, establishing standards for effective sales outlets, then combining the strategic goals of the model market and market competition to finalize the target. This can be achieved in three steps."
author: "孟令宇"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2017-01-21"
language: "en"
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# Three Steps to Get Your Products into Every Effective Outlet

> Terminal distribution is a crucial part of operating a model market, yet many companies distribute blindly, either setting overly ambitious goals that fail to deliver or lacking effective positioning so the products don't sell. How can companies distribute effectively? Determine effective outlets and set reasonable distribution goals. The terminal distribution target (distribution rate) for a model market should be based on the product's attributes and target consumers, establishing standards for effective sales outlets, then combining the strategic goals of the model market and market competition to finalize the target. This can be achieved in three steps.

Terminal distribution is a crucial part of operating a model market, yet many companies distribute blindly, either setting overly ambitious goals that fail to deliver or lacking effective positioning so the products don't sell. How can companies distribute effectively?

**Determine Effective Outlets and Set Reasonable Distribution Goals**

There is no one-size-fits-all standard for terminal distribution targets in a model market. The distribution target (distribution rate) should be set based on the product's attributes and target consumers, thereby establishing standards for effective sales outlets, and then combined with the strategic goals of the model market and market competition to finalize the distribution target.

This can be achieved in three steps:

**Step 1: Define the Standards for Effective Sales Outlets**

Defining the standards for effective sales outlets is a strategic matter for the company and part of a systematic marketing strategy. Therefore, when formulating product strategy, the company should clearly define what constitutes an effective sales outlet. For the sales team and distributors, it is essential to deeply study the product's attributes, pricing system, and target consumers to determine the most suitable sales outlets. It is crucial to emphasize that standards vary significantly across different companies and products; do not copy others or set arbitrary standards.

Determining effective sales outlets in a model market requires considering multiple factors, generally including: **First, the type of outlet (hypermarkets, B-class supermarkets, convenience stores, restaurants, etc.); Second, the location of the outlet (commercial center, community business district, main traffic artery, etc.); Third, the scale of the outlet (area, product variety, sales volume, etc.).** If these cannot be well defined, conduct channel experiments to arrive at the standards for effective sales outlets.

**Step 2: Determine the Total Number of Effective Sales Outlets**

Once the standards for effective sales outlets are clear, the company organizes manpower and resources to conduct market research in the model market, using the standards to determine the total number of effective sales outlets. Create a statistical table for effective sales outlets based on different channels and regions (see table below).

**Step 3: Determine the Distribution Target for Your Product**

The distribution target is not about having as many outlets as possible; a reasonable target will maximize value. How to determine what is reasonable? **Here, two factors must be considered: the strategic positioning of the model market and the distribution situation of competitors.**

Set your distribution target based on strategic positioning and competitor distribution. If the strategic goal is to become the market leader (NO.1), then the distribution target should exceed all competitors, with the distribution rate roughly equivalent to the desired market share. If the strategic goal is to follow the market leader, then the distribution target should match the leader's distribution, outperforming other second- and third-tier brands.

**It is important to note that in a model market, you cannot simply decide to be the leader; you must assess your own capabilities and develop a strategy that best fits your situation.**

**Formulate Distribution Policies with Strategic Thinking**

Reasonable distribution policies are essential for quickly completing distribution and achieving targets. Formulating these policies requires strategic thinking, considering product costs, profit requirements, and market investment plans to determine the expense ratio, then allocating expenses tactically to form the best distribution policy.

From a tactical execution perspective, product distribution policies should focus on the following aspects.

**Product Promotion Strategy:** **This is mainly aimed at consumers, such as buy-one-get-one-free offers, lucky draws, etc.** The goal is to stimulate impulse purchases and promote product sell-through. Product promotions greatly help improve distribution rates, and terminal store owners value this. Based on recent practical experience, the investment ratio for product promotions should generally be maintained at 5% to 10%, with the most important being the choice of promotion method.

**Channel Promotion Strategy:** **This mainly refers to promotions aimed at distributors and terminal store owners.**

Distributors play a vital role in building a model market. Only with their strong cooperation can product distribution and sell-through promotions proceed smoothly. Therefore, it is necessary to establish incentive policies for distributors. A common incentive is sales rebates, but companies can also combine market performance to offer comprehensive reward programs. Regardless of the reward scheme, the goal is the same: to motivate distributors to actively cooperate in building the model market.

Promotions for terminal store owners aim to make them feel that selling your product is profitable. For example, you can set tiered rewards, cumulative purchase rewards, etc. **Regardless of the reward policy, a basic principle must be maintained: after channel promotions, terminal store owners must earn more from selling your product than from selling other brands.**

**Personnel Promotion:** **This includes the company's sales staff and, more importantly, the distributor's sales staff.** Building a model market has significant strategic importance, so you should assign your best salespeople and provide special rewards for those responsible for the model market.

Rewards for distributor sales staff are often overlooked by many companies. Remember that your products are mainly sold through distributor sales staff, and the market is mainly maintained by them. Therefore, it is essential to establish incentive policies for distributor personnel.

Formulating distribution policies requires integrating various factors and efficiently combining different promotional schemes. Marketing requires not only professional skills but also artistry. No expert can design a marketing plan out of thin air. A feasible plan must be based on in-depth market research, comprehensive analysis of the company's situation, and accumulated practical experience. Therefore, business owners should not be misled by purely theoretical viewpoints.

During the process of building a model market, after determining the distribution goals and policies in the early stage, complete the terminal distribution work with high speed and efficiency.

**Allocate Profit Across the Sales Chain According to Industry Standards**

Distributors and terminal stores are crucial links in the company's sales channel, playing vital roles. Since they operate on profit, the company must allocate profits reasonably. The primary basis for profit allocation should be industry standards. For example, if the gross profit for distributors in a certain product category is 15% and for terminal stores is 20%, food companies should set their pricing system based on these industry standards. In the short term, food companies can use channel promotions to motivate distributors or terminal stores.

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