How to manage trade scheme in FMCG sales.

How to manage trade scheme in FMCG sales.

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Scheme means the financial or non financial benefit given by the manufacturer to the distribution channel to promote sales volume.  Some  schemes are , discount , any gift, any free quantity or a  holiday trip.  Suppose a company may give 1 piece free against purchase of 20  piece  or some company may give 2 % extra against purchase of 10 carton or there may be a holiday trip against purchase of some value, like 500000  etc. Scheme operates for 4 channel partners  ,  like super stockiest, distributor, retailer and wholesaler .                                                                        

Schemes for super stockiest or distributor are called primary scheme Or scheme given against purchase from company is called primary scheme. These schemes are  not very much difficult to manage. There may be some value or quantity purchase for  a predefined time period  , like 1 month, 2 months or 3 months.  These type of schemes/incentives are easy to manage.

In this topic we will discuss about schemes for retailer or wholesaler.  These types of scheme are called secondary scheme Or scheme given against sale from distributor/ super stockiest are called secondary scheme. First of all after getting scheme details from the company , you need to inform your  sales team and distributor or super stockiest. Then take a print out of scheme details and go the market. Then make the customer ( Retailer or Wholesaler ) understand properly and encourage them to achieve that particular quantity or value. One thing to remember here is that , you cannot go the entire territory and hence you need help from your sales team(PSR/RSA/SO/ISR).                                                             

Now scheme announcement is completed and here comes your responsibility to check whether the scheme has been announced properly or not. Check randomly while market visit. You can check retailer /wholesaler purchase bills,  if they achieved already. Make phone calls to your key wholesaler /retailer to ensure scheme operation. Check progress of their purchase and remind them balance amount/quantity.

Review with your sales team , ask them question about ongoing scheme. Maximum time it has been observed that ground level label sales force cannot explain scheme details properly. As a result there is a high possibility of dispute in the market. Once the scheme period is over  ,  check the scheme benefits are being passed on to the market. This is very crucial stage. Timely settlement of scheme encourages the customer to deal with your brand in future. 

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