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9 Trade Schemes in FMCG That Can Boost Sales 3X
by Bizom
July 25 | 08 min read
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Fast Moving Consumer Goods (FMCG) companies constantly seek innovative strategies to stay ahead and drive sales growth in today’s fiercely competitive market. Among the various tactics employed, trade schemes play a pivotal role in enhancing sales and capturing a larger market share. These schemes serve as incentives for distributors, wholesalers, and retailers, creating a win-win situation for all stakeholders involved.
Trade schemes in FMCG encompass a wide range of promotional activities and discount structures designed to entice customers and drive higher sales volumes. These schemes not only increase brand visibility but also foster brand loyalty, ultimately boosting revenue and market penetration. According to Mckinsey, about 20% of yearly revenue is spent on trade promotions and schemes by FMCG firms worldwide. With the right trade schemes in place, FMCG companies can unlock substantial growth potential and even achieve sales figures that surpass their expectations.
In this blog, we will explore nine highly effective trade schemes in the FMCG sector that have the potential to triple sales. By understanding and implementing these schemes strategically, FMCG businesses can propel their growth and thrive in today’s dynamic marketplace. So, let’s dive in and discover the trade schemes that can revolutionize sales in the FMCG industry.
Trade schemes to boost your sales 3x
The following are 9 highly efficient trade schemes in the FMCG sector, if used strategically, can aid FMCG businesses to reach new heights:
1. Volume-based discounts
Volume-based discounts are a potent trade scheme in the FMCG sector that can drive exponential sales growth by incentivizing retailers and distributors based on product quantity. Accurate sales data analysis is essential for effective implementation. Identifying volume thresholds allows FMCG companies to design tiered discount structures aligned with their goals. Streamlining the process with automated discount calculations ensures precision.
These discounts not only boost sales but also strengthen trade partnerships, enhance brand visibility, and expand market reach. By encouraging larger order volumes, FMCG companies unlock substantial revenue potential and gain a competitive edge.
Bizom offers real-time sales data visibility, enabling accurate tracking of products sold by trade partners. This data empowers businesses to design tiered discount structures based on predefined volume thresholds. Bizom further streamlines the process with automated calculation and application of volume-based discounts, eliminating errors and ensuring timely incentives for trade partners.
2. Trade promotion programs
Trade promotion programs are a highly effective trade scheme in the FMCG sector that can significantly boost sales. These programs involve various promotional activities, such as special pricing, discounts, bundled offers, and co-marketing initiatives, aimed at incentivizing retailers, distributors, and consumers.
FMCG companies can stimulate demand, encourage trial purchases, and increase brand visibility by offering attractive trade promotions. These programs not only drive immediate sales but also help build long-term customer loyalty.
Bizom plays a vital role in bringing trade promotion programs to life. The platform provides FMCG companies with the necessary tools to design, execute, and monitor trade promotions effectively. It enables businesses to manage promotional budgets, track program performance, and measure the return on investment (ROI).
3. Channel partner incentives
Channel partner incentives are a highly effective trade scheme in the FMCG sector that can drive remarkable sales growth. This scheme involves offering incentives to channel partners, including distributors, wholesalers, and retailers, to motivate them to promote and sell FMCG products.
By providing attractive incentives such as rewards, bonuses, or commissions, FMCG companies can encourage channel partners to actively promote their products and invest in marketing efforts. These incentives not only increase sales but also foster stronger partnerships and brand advocacy.
Bizom provides FMCG companies with the necessary tools to design, track, and manage incentive programs seamlessly. By leveraging Bizom’s retail intelligence capabilities, businesses can easily set up incentive structures, monitor performance, and ensure timely rewards. With Bizom, FMCG companies can optimize channel partner incentives, aligning them with business objectives and encouraging desired behaviors.
4. Seasonal promotions
Seasonal promotions are a highly effective trade scheme in the FMCG sector that can drive significant sales growth during specific seasons or holidays. By capitalizing on the increased consumer demand and festive spirit, FMCG companies can offer special promotions and limited-time offers to entice customers and boost sales.
During seasonal promotions, FMCG companies can introduce exclusive product variants, bundle deals, or limited-edition packaging to create a sense of urgency and excitement among consumers. These promotions not only attract new customers but also encourage existing customers to stock up on products for the season.
Effective implementation involves careful planning, timely execution, and strategic marketing. Bizom facilitates seamless management of seasonal promotions. It enables FMCG companies to plan, execute, and monitor promotional campaigns, track inventory, and analyze sales performance in real-time. Businesses can ensure flawless execution of seasonal promotions by leveraging Bizom, resulting in increased sales and heightened brand visibility during peak seasons.
5. Trade allowances
Trade allowances are a valuable trade scheme in the FMCG sector that can drive substantial sales growth. This scheme involves providing financial incentives or discounts to retailers and distributors for various purposes, such as encouraging product display, supporting marketing activities, or offsetting costs associated with carrying FMCG products.
By offering trade allowances, FMCG companies motivate trade partners to invest in promoting their products, ensuring prominent shelf placement, and active participation in marketing campaigns. These allowances can take the form of upfront payments, reimbursement of marketing expenses, or discounts on bulk purchases.
Bizom provides FMCG companies with the necessary tools to track and allocate allowances, ensuring transparency and accuracy in financial transactions. By leveraging Bizom, businesses can streamline the process, monitor the utilization of allowances, and assess their impact on sales and trade partner engagement.
6. Rebate programs
Rebate programs are a compelling trade scheme in the FMCG sector that can drive substantial sales growth and incentivize repeat purchases. This scheme involves offering monetary incentives or refunds to retailers, distributors, or end consumers based on predetermined criteria.
Rebate programs create a win-win situation, benefiting both FMCG companies and participants. By implementing rebate programs, FMCG companies encourage trade partners and customers to make repeated purchases, thereby driving loyalty and increasing sales volume. These programs often have specific requirements, such as purchasing a certain quantity, meeting sales targets, or participating in promotional activities.
Bizom enables efficient management of rebate programs. It provides FMCG companies with the tools to track purchases, validate eligibility, and calculate rebate amounts accurately. With Bizom, businesses can streamline the rebate process, ensuring timely payouts and fostering trust among trade partners and customers.
7. Trade financing
Trade financing is a strategic trade scheme in the FMCG sector that can fuel sales growth by providing financial support to trade partners. This scheme involves offering flexible payment terms, credit facilities, or loans to distributors, wholesalers, or retailers to facilitate the purchase and distribution of FMCG products.
By providing trade financing options, FMCG companies enable their trade partners to manage cash flow effectively, invest in larger product quantities, and expand their business operations. This not only strengthens the trade ecosystem but also drives increased sales volume.
Bizom provides FMCG companies with tools to track and manage credit terms, automate payment processes, and monitor financial transactions. With Bizom, businesses can streamline trade financing operations, ensuring smooth transactions and timely payments.
8. Point-of-purchase (POP) displays
Point-of-Purchase (POP) displays are a dynamic trade scheme in the FMCG sector that can significantly boost sales and capture consumer attention. These displays are strategically placed at the point of sale, enticing customers to make impulse purchases or try new products.
By creating eye-catching and attractive POP displays, FMCG companies can showcase their products in a visually appealing manner. These displays often incorporate elements such as product samples, interactive features, or promotional offers to engage and entice customers.
Bizom empowers FMCG companies to design and optimize POP displays. By leveraging sales data and market insights, businesses can identify high-traffic areas and customize displays to maximize impact. With Bizom, companies can track display performance, measure ROI, and fine-tune strategies for future campaigns.
9. Loyalty programs
Loyalty programs are a compelling trade scheme in the FMCG sector that can boost sales and foster long-term customer loyalty. These programs involve offering rewards, exclusive benefits, or incentives to customers who regularly purchase FMCG products.
By implementing loyalty programs, FMCG companies encourage repeat purchases and create a sense of value and appreciation among customers. These programs can include point-based systems, tiered membership levels, or personalized offers tailored to individual preferences.
Bizom plays a vital role in implementing and managing loyalty programs effectively. It enables FMCG companies to track customer purchases, manage rewards, and analyze customer behavior. With Bizom, businesses can personalize offers, target specific customer segments, and measure the success of loyalty initiatives.
Endgame
It’s safe to establish that trade schemes play a pivotal role in driving sales growth and market success in the FMCG sector. From volume-based discounts to seasonal promotions, channel partner incentives to rebate programs, these schemes offer powerful tools to motivate trade partners, engage customers, and increase brand visibility.
Each of the nine schemes present a unique opportunity for FMCG companies to leverage and drive remarkable growth. To implement these trade schemes effectively and maximize their impact, businesses can upgrade to Bizom. With Bizom’s comprehensive platform, FMCG companies gain real-time visibility into sales data, streamline processes, and make informed decisions. From managing volume-based discounts to tracking trade promotion programs and optimizing loyalty initiatives, Bizom provides the necessary tools to drive success.
Don’t miss out on the chance to supercharge your sales growth. Visit Bizom today and discover how our platform can transform your trade schemes into revenue-generating engines. Avail a free demo and take the next step towards achieving unprecedented sales growth in the FMCG sector with Bizom’s innovative solutions.
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