Cheers for Schemes

Though the festival season is just a few weeks away, understandably the economic downturn leading to slowing demand means there are lesser cheers around. These are bad times for vendors and channel partners, as the festival season is generally looked upon to provide the boost in sales. With the onset of the festive season, both vendors and partners are devising innovative and exciting schemes to boost their businesses. Not just that, a weakening rupee has meant product prices spiraling.

The offers under the various schemes might be a balm in that context offsetting the expected loss in sales as a result. Schemes normally generate enough excitement that is essential for pumping up the motivation factor-it's definitely more an impact effect and generation of business momentum than having a direct sales correlation. Both channel partners and vendors need more of that excitement this year to dispel the gloom.

The nature of these schemes is also witnessing innovations every year. From taking the partners on holidays to exotic destinations, to having interest free EMI schemes, to bundling goodies ranging from pen drives to broadband connections-the need for innovation and customization is being increasingly conveyed to the vendors. Even though consumers are becoming more conscious towards spending, such schemes seem to have a positive impact on sales. That is what both vendors and partners are expecting this year, will somehow offset their losses in the last few months.

While the sole objective behind such schemes/promotions is to help channel partners boost their sales by promoting the end product, more and more partners this year are looking for a 360 degree support from the vendors in not just availing the scheme but making the most out of them. In return, the vendors are trying every marketing gimmick in the book (or outside) with the overall structuring of these schemes.

The subtle transformation of these schemes is visible every year and it has become more apparent in 2013. Vendors are slowly moving away from the erstwhile stock keeping based incentives format to a logically progressive sellout based incentives format. Since partners want promotional schemes which are more saleable, vendors also try to put new products as incentives/rewards. Sometimes channel partners are allowed to decide on the reward of their choice based on their preferences. The real bonus for resellers in such innovative schemes is that they can now mix and match slabs depending on their preference and convenience. This year will probably see a combination of all.

More and more partners are looking this year for schemes which are region and tier specific. Certain schemes which are announced by the vendors in the metros may not yield the same results in the B and C class cities. The buying patterns and consumer behavior in small cities differs when compared to metros. Also, many resellers cannot achieve volume sales and not even small targets during the scheme period. A vendor must find out which schemes would attract the channel in small cities and at what level. And the slowdown is also dictating quite different spending patterns in different locations.

Not many beg to differ on how partner schemes are definite propellers for partners to sell more during the festive season. End consumers are inclined to spend more during festivals, with the festive cheer fueling their purchase decision. In fact, this is the best time of the year for partners to convert leads easily and in more numbers. Festive schemes typically tend to be skewed towards inciting consumer purchase and naturally aid more sell out by partners. But the worst slowdown in India in recent memory and the general negative sentiments around might drastically alter the picture this year.

Even as vendors continue to innovate in terms of partner schemes, partners too realize that schemes have become more relevant in these difficult times wherein competition is stiff and margins thin. With the festival season almost there, most vendors are already in the process of announcing attractive schemes to win that extra mind share of their partners, for whom anything more than the usual (especially this year) is always welcome. After all, many are still hoping that the current situation might dampen the sales figures, but festive cheers should be enough to tide off the crisis at least temporarily. By end of next month, it will be clear if partners or vendors will have anything to cheer about this time.