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1. Single-Product Buy-One-Get-One This is the most basic promotional tactic in the market, typically offering deals like buy ten get one free or buy eight get one free on a single product. This approach is generally used by manufacturers to push their main products, increase terminal inventory, and coordinate with media campaigns to drive terminal sales. Terminal stocking levels have become a key performance indicator for manufacturers' product launches.
However, this tactic is relatively simple and can lead to terminals discounting products to clear stock, disrupting the pricing system and making the full market launch challenging.
This tactic is only suitable for strong brands with robust media support to ensure fast terminal turnover. Strict control over terminals is essential, limiting the number of sets per outlet according to the promotion schedule to avoid killing the product.
2. Product Bundling Bundling promotions typically pair best-selling products with slow-moving items or new products. The goal is to maintain sales of best-sellers while making it easier for terminals to accept slow-moving or new products, reducing distribution difficulty and encouraging terminal promotion.
This approach works best when the best-selling product has high consumer pull and strong local brand influence; otherwise, terminals may reject the bundled items due to increased inventory or sales pressure.
3. Physical Gifts Frequent product promotions can bore terminals, so manufacturers sometimes switch to physical gifts while maintaining channel margins. Examples include giving an air-conditioning blanket with two cases of new products, a mobile phone for a one-time order of ten cases, or a tricycle for cumulative sales reaching a certain level. Practical gifts like rice and cooking oil are well-received as they are easy to convert to cash, but terminals may factor the gift value into pricing, potentially lowering product prices.
4. Cash Rebates Cash rebates are the most attractive promotion for terminals. For instance, a one-time order of five cases might qualify for a 100 RMB cash rebate on the invoice. This tactic should not be used in combination with single-product promotions, as it could lead to price cuts at the retail level, harming future sales.
Promotions aim to maximize sales and profits. Cash rebates should be used sparingly as a tactical tool, not frequently, to avoid making other promotions seem less appealing and to prevent setting obstacles for future campaigns.
5. Box Recycling To boost sales, some manufacturers offer cash for empty boxes. Depending on the product and promotional focus, boxes may be bought back at 12 or 18 RMB each within a set period to incentivize terminal staff. This is especially useful when a product is popular but margins are thin, or during new product launches when profit margins are not competitive. The incentive can be gradually reduced as the product gains consumer acceptance.
6. Display Rewards To showcase products and increase purchase opportunities, brands compete for prime shelf space and larger displays. Terminals that comply with manufacturer display requirements may receive monthly rewards of 200 or 300 RMB, subject to spot checks; violations result in losing the reward for that month.
Many savvy manufacturers link display rewards directly to sales, setting dual targets for display and sales volume to encourage both compliance and selling enthusiasm.
7. Visual Merchandising Support To enhance brand and promotional visibility, manufacturers may provide terminals with storefront signs (especially for well-known liquor brands), wine cabinets, shelf-edge strips, in-store KT boards, POP displays, light boxes, posters, lanterns, price tags, and indoor/outdoor case stacking. These may be bought out annually or for specific periods, with rewards given if terminals meet company standards.
8. Dedicated Promoters Dedicated promoters use face-to-face communication to introduce and recommend products to target consumers. Key aspects include developing professional scripts highlighting product selling points, brand messaging, and training promoters in sales skills and adaptability. This is common in restaurants, while in distribution outlets it depends on customer needs or manufacturer strategy.
9. Expense Support Rewards In the competitive liquor market, some companies offer support to high-volume terminals, including promotional staff, rent, utilities, and wages, based on mutually agreed cooperation standards. Support levels vary according to sales targets and completion rates, motivating terminals to sell and cooperate actively.
10. Volume-Based Rewards Terminal outlets have varying sales capabilities, leading to significant differences in results. To reward top performers and motivate others, manufacturers use tiered rewards based on standard policy support and volume targets, plus ambiguous rewards for overachievement. This helps maintain terminal enthusiasm and compliance. In today's push for maximum sales, such standardized operations are typically implemented by strong regional brands.
11. Customer Recognition Awards For terminals with strong sales performance, it's important to provide both material and visible recognition to enhance loyalty and a sense of honor. Awards such as "XX Year Sales Champion," "XX Year Market Development Champion," or "XX Year Market Growth Champion" can be granted. Both material and spiritual rewards are valued; such plaques acknowledge customer sales achievements and also motivate other customers. Leveraging customers' competitive nature can be an effective incentive.
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