Samsung's program for improvement of channel health

Samsung Electronics India Information and Telecommunication Ltd (SEIIT) today announced the launch of 'Score with Samsung'--industry's first such initiative to improve channel health. Being the co-sponsor of the World Cup Soccer in May, it has designed this award program around the game. This program is specific to monitors and optical disk drives, and emphasizes the need for all channel partners to do business 'profitably' and 'regularly'.

Channel partners would be paid 'rewards' based on the total 'Goals' scored under the program period (Jan 9 to Feb 23, 2002). All channel partners who meet the basic criteria will win. In addition to this, 18 channel partners would be chosen to experience the excitement of the World Cup live.

Said JS Jong, Director, SEIIT, "In the current economic conditions, our channel partners are facing challenges due to squeezing margins, profitability and inappropriate business practices like over-trading etc. Their health is our responsibility. Our success is based on the partnerships we share with them. Score with Samsung is our effort to ensure higher business profitability and regularity of business for our partners. Spun around the exciting game of Soccer, this reward program will bring tremendous benefits to our partners."

Features of the program that will benefit the channels are as follows.

Regular sales: The emphasis of the scheme is on the channel partner doing business on a daily basis. The channel partner is rewarded to buy more frequently in smaller lots rather than buying in bulk. This will ensure faster turns and lower inventory carrying costs.

Total broadbasing: It is a broad-based program. The minimum units that a channel partner has to purchase are 45 units of monitors or 200 optical disc drives.

Upper limit: To ensure that partners do business as per their inherent business capabilities and do not over stretch/over trade, there is an upper limit to the purchase.

Rewards for all: To ensure there is uniformity, all big and small scale partners can participate on an equal footing. The rewards are totally linear. This means that as a percentage, the rewards given on the business transacted would be the same across all partners.

Focus on high ends: There is an emphasis on product for the future like CD writers and 17 inch range of monitors.

Reward for quality of business: A very unique aspect has been added to reward partners who do business in a healthy manner by making healthy margins. 18 of the top quality partners will get to witness the World Cup Soccer in Korea.

Focus on C&D cities: To ensure a uniform playing field for all, a new category 'D' has been introduced. Further to give a fillip to C and D cities, special accelerators are being put up for them. This will ensure a wider nationwide focus.

Commenting on the reward program, Shyam Modi, Director, MC Modi and Company, said, "We are very excited about the 'Score with Samsung' program. We appreciate Samsung's initiative and efforts in boosting the channel morale. It is a tactfully designed program which will help the entire channel network of the country in doing business in a better manner and reap bigger benefits."

There is a pre-defined number of monitors and optical disk drives--each of which constitutes a goal. There are certain qualifying purchases that the channel partners (CP) have to do to participate in the program. There are certain Special Goals termed as 'Free Kicks' that put the CP on a fast track for victory. The focus is on regularity of participation in the program to achieve a fast stock turnover and hence higher profitability. Based on the total number of goals the CP accumulates, there are grand rewards in cash/kind and of course 18 lucky partners will be escorted to Korea to witness the excitement of World Cup Soccer.