30+ industry experts, 100+ B2B platform founders, and 800+ manufacturer and distributor friends will gather in Fuzhou to discuss the path of internet transformation for the FMCG industry.
Nowadays, when shopping, products are dazzling, and various promotional activities are everywhere. Today you give a spoon, tomorrow I give you a pot. This society is really crazy; today you offer 20% off, tomorrow I offer 80% off. Product homogenization is very serious, and competition is increasingly fierce. Imagine products being promoted in stores; consumers are already exhausted by the daily back-and-forth tactics and are passive in receiving information. What should we do? Without promotions, there are no sales; with too many promotions, sales don't increase, and a lot of money is spent. This requires us to perform surgery on promotions and make them efficient. By clarifying the following key points for differentiated promotions, consumers won't suffer from promotion fatigue, and sales will see a significant boost:
The Essence of Promotion The essence of promotion is to provide more value than the price, making it worth the money. Cater to consumer psychology and position the target consumer group well.
Tactical: Conduct short-term strikes against competitors, accelerate capital turnover, and increase regional market share. This is a short-term behavior.
Strategic: Build the brand, increase market share, and consider the long-term expansion of the enterprise's national brand (market share, resources, etc.). This is a long-term corporate behavior.
The Purpose of Promotion
Shorten the time for products to enter the market. Using promotional means aims to provide short-term incentives to consumers or distributors. Within a period, it mobilizes people's purchasing enthusiasm, cultivates customer interest and usage habits, and enables customers to understand the product as soon as possible.
Encourage consumers to make their first purchase to achieve the purpose of usage.
Encourage consumers to repurchase and establish consumption habits.
Boost sales performance. Undoubtedly, promotion is a form of competition; it can change some consumers' usage habits and brand loyalty. Driven by benefits, distributors and consumers may purchase in large quantities. Therefore, during the promotion period, consumption often increases, raising sales volume.
The need for competition. Whether an enterprise launches market aggression or a market pioneer launches counter-aggression, promotion is an effective application tool. Market aggressors can use promotion to strengthen market penetration and accelerate market share. Market counter-aggressors can also use promotion to counterattack and achieve the goal of blocking competitors.
Associated promotion. The primary goal of promotion is to sell the promoted product. However, during the promotion of Product A, it can drive the sales of related Product B. For example, promoting tea can boost the sales of tea sets. When more coffee pots are sold, coffee sales increase. In 1930s Shanghai, an American oil company gave away kerosene lamps to consumers, resulting in a significant increase in kerosene sales.
Festive rewards. Promotion can add brilliance to products during festivals or corporate anniversaries. When routine holidays arrive, or when the enterprise has major celebrations (such as openings or listings), conducting promotions can express gratitude and joint celebration to the broad consumer base.
Inventory clearance. Due to various reasons, near-expiry products appear in the market. To reduce losses, inventory clearance is conducted to accelerate capital turnover.
The Theme of Promotion Promotions must have a distinct theme and a reason, to avoid giving consumers the impression of low-price dumping. The theme must be concise, to the point, follow trends, and be creative. For example: Celebrate National Day, Welcome Mid-Autumn Festival, New Product Launch, Teachers' Day, Children's Day, etc.
The Target of Promotion Before promotion, it is essential to determine who the promotion is for. For example, if promoting to consumers, who is the target group? Women? Men? Age? Education? After positioning the target group, consider how to convey this information and what value and services to provide. Here are several types of promotion targets:
Manufacturer to wholesaler promotion; manufacturer to retailer promotion; manufacturer to consumer promotion; wholesaler to retailer promotion; wholesaler to consumer promotion; retailer to consumer promotion. This is single-level promotion.
Manufacturer to wholesaler to retailer promotion; manufacturer to retailer to consumer promotion; manufacturer to wholesaler to consumer promotion; wholesaler to retailer to consumer promotion. This is two-level promotion.
Manufacturer to wholesaler to retailer to consumer promotion. This is three-level promotion.
The Timing of Promotion Promotion time should be chosen during weekends or holidays when foot traffic is concentrated, which is convenient for creating a lively atmosphere. Also, always pay attention to the weather to avoid crowd interception due to bad weather. The time is generally 9:00-18:00, fully considering various factors.
The Location of Promotion The location should be chosen in key stores or squares with high foot traffic, which is convenient for activities and brand building.
The Personnel of Promotion The key is the promoter, who should receive good training beforehand, especially in FABE theory and practice. Also, logistics personnel should be trained to avoid stockouts during the promotion period.
Promotion Methods (Differentiated Promotion)
Free "Free" refers to a promotional method that charges no fees to target customers. It includes two forms: A. Free gift with purchase—mainly "reward packaging." B. Free trial—mainly "free samples."
Gifts "Gifts" refers to a promotional method that provides a preferential treatment to target customers when they purchase products.
Buy and get: Purchase and receive a gift. As long as customers buy a certain product, they can get a certain number of gifts. The most common methods include buy one get one free, buy five get two, buy one get three, etc.
Exchange and get: Purchase with compensation to receive a gift. As long as customers buy a certain product and make a slight compensation, they can exchange for other products.
- Discounts "Discounts" refers to a promotional method that gives different forms of price reductions to target customers when they purchase products.
Discount coupons, commonly known as coupons, are an ancient and popular promotional method. Coupons usually print the original price, discount ratio, purchase quantity, and validity period. Customers can use coupons to purchase and get benefits.
Current price discount: Selling at a discount based on the current price. This is the most common and effective promotional method. It allows customers to see the benefits on the spot and be satisfied, while sellers also achieve satisfactory target profits. Because the current price discount process is generally a bargaining process. Through bargaining, both parties can reach a basically satisfactory goal.
Reduced price special sale: Lowering the price of a product for a certain period and selling at a special price. A characteristic of reduced price special sales is their phased nature. Once the promotional purpose is achieved, the price returns to the original level. Reduced price special sales are generally implemented only at the market terminal. However, once manufacturers intervene, it may become a long-term promotional strategy. The forms of reduced price special sales usually include "packaging discount labels," "shelf discount labels," and "special sale notices."
Low-price operation: Selling products at a price lower than the market prevailing level. Low-price operation is a sales strategy; its overall price level must be lower than other operators in the long term. Moreover, from the beginning, low-price operators should launch with preferential prices. In the long run, although low-price operation yields small local profits, this promotional strategy can strongly attract consumer groups and achieve overall high profits.
- Contests "Contests" refers to a promotional method that uses people's competitive and curious nature to attract target customers to participate by holding fun and intellectual contests.
Collection and quiz contests: The contest organizer attracts consumers to participate through collection activities or quiz questions. It also includes guessing contests, talent selection contests, and stamp collection contests. There are mainly three types of participants in contests; the organizer should select target customers based on needs.
- Activities "Activities" refers to a promotional method that attracts customer attention and participation by holding activities related to product sales.
Including: press conferences, product exhibitions, lotteries and raffles, entertainment and games. Creating events: By creating events with communication value, making them social, newsworthy, and hot topics, and using news hype to achieve promotional purposes. "Event promotion" can attract public attention and thereby arouse target customers' interest in the products or services related to the event, ultimately stimulating customers to buy or consume. If the created event can cause widespread social controversy, then "event promotion" will achieve perfect results.
Win-Win "Win-Win" refers to a promotional method where two or more market entities jointly promote to achieve mutual benefits. In other words, two or more enterprises jointly hold a promotion for common profit, which is "Win-Win SP."
Direct Effect "Direct Effect" refers to promotional methods with certain direct effects. The characteristics of "Direct Effect SP" are on-site and personal presence. Through these two characteristics, a strong sales atmosphere can be created.
Point-of-sale advertising, direct mail guidance (DM): Guiding customers to purchase a certain product through direct mail. Product demonstration: Demonstrating the product's features and advantages on-site to prompt consumers to buy through seeing is believing. Product demonstration is an immediate promotional method. Through demonstration, customers' visual, auditory, olfactory, gustatory, and tactile senses can be satisfied, thereby satisfying their psychology and achieving immediate purchase. It also includes: product display, promotional newspapers, sales commissions, franchise use, celebrity endorsement.
- Service "Service" refers to a promotional method that maintains customer interests and provides certain preferential services to facilitate customer purchase and consumption. It can be said that "Service SP" best embodies the concept of customer satisfaction; it is the concrete manifestation of CS (Customer Satisfaction) philosophy.
Including: sales service, open-shelf sales, promise sales, ordering and customization, home delivery, free training, installment payment, deferred payment, membership system operation.
- Combination "Combination" refers to a promotional method that combines two or more promotional methods to achieve more efficient results. We know that there are eight promotional methods mentioned above, and each can be combined with the other seven, resulting in 49 forms of combination SP.
After-Sales Service Support for Promotion Before the activity: Before promotion, review the details such as product items, specifications, prices, promotional materials, methods, time, personnel, division of labor, theme, location, and expected results to achieve proficiency.
During the activity: Always pay attention to consumer changes, do a good job of on-site after-sales service, keep the display shelves full, do vivid displays, and make promotional records.
After the activity: Conduct a promotional effect evaluation, compare with pre-promotion and expected results, check, summarize, analyze reasons, and file for reference.
New Food Era · New Distribution —— 2016 China "FMCG + Internet" Summit Forum ——
This is a grand event focused on how the FMCG industry channels will transform under the trend of Internet+ transformation
Conference Agenda 09:00-09:30 Registration 09:30-09:35 Host opening 09:35-10:05 2016 China FMCG Industry Trend Analysis Report——Zhao Bo 10:05-10:25 FMCG Enterprise Transformation Strategy and Path——Liu Chunxiong 10:25-10:45 Opportunities and Challenges Brought by FMCG Channel Reform——Liu Zhao, CEO of Waiqin365 10:45-11:25 Alibaba Retail Link All-Around Empowerment——Guo Kunkun, Alibaba Retail Link 11:25-12:00 Roundtable Forum——Brand Transformation: Improvement vs. Reconstruction? (Guests to be confirmed) 12:00-13:30 Lunch 13:30-14:00 Distributor Transformation: City Distribution Trends——Wang Qi, CEO of Weijie City Distribution 14:00-14:30 Roundtable Forum——Why Should Distributors Transform into Logistics? 14:30-15:00 Detailed Explanation of Zhongshang Huimin's One Machine, Two Wings Strategy——Su Xiaoxin, Vice President of Zhongshang Huimin 15:00-15:30 Detailed Explanation of Zhanghe Cloud Factory Strategy——Yang Lixiang, Zhanghe Tianxia (Speech content to be confirmed) 15:30-16:00 Supply Chain Finance: The Lubricant for B2B to Drive Traditional Business——Chen Xian, CEO of 51 Order 16:00-16:30 Principles and Approaches of 2B Investment——Xu Xiaoping, Founder of ZhenFund (Guest to be confirmed) 16:30-17:00 Small Retail, Big Business Opportunities: China's Retail Transformation and Upgrade——Wang Jianfeng, General Manager of E-commerce Department, Yurun Group 17:00-17:30 Roundtable Forum——Who Is the King of FMCG B2B Models? (Guests to be confirmed) 18:00-20:00 Dinner
For manufacturers and distributors who want to transform, this grand event is not to be missed. Interested friends can long-press the QR code below or click "Read Original" to register.
Registration Method: Long-press the QR code below or click "Read Original" ↓↓↓ Click "Read Original" [Register]