Tuesday, February 27, 2007

Trade Schemes for different FMCG Categories

Different FMCG categories should have different trade schemes. Lets take few categories.

1. Atta: Quantity Purchase Scheme will work here. This will have different slabs and will have higher encentive for higher slabs. Eg. On buy of 10 tonnes of Atta for a period of 2 months, 5 % additional discount will be given and a washing machine will be given

2. Salt: Its more of a wholesale driven category, where price is a crucial dimension. Just by cutting 30 paisa on a Kg of Salt, respective companies can increase their sales

3. biscuits: Here trade schemes are in form of some discount if they clear the bill on time. Its called CD - Cash Discount - normally companies give 1% CD. but its very important to understand that its more of a consumer pull category and trade push dosent work here

4. Soft Drinnks: QPS works here as well.

More discussion on this topic on FMCG Marketers.