In the The Fast-Moving Consumer Goods (FMCG) to gain a competitive edge, companies must go beyond traditional selling. In this article, we will delve into why companies are doubling down on AI-powered SFA and how AI is transforming the future of field sales operations. We will also explore real-time use cases of AI in FMCG Sales, boosting efficiency and decision making.
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In today’s competitive Fast Moving Consumer Goods (FMCG) markets, staying ahead requires innovative strategies to surpass competitors and drive sales growth.
One of the most effective tactics in their arsenal is trade schemes, which serve as powerful incentives for distributors, wholesalers, and retailers, creating a win-win scenario for all involved. These schemes encompass a variety of promotional activities and discount structures designed to enhance brand visibility, build customer loyalty, and drive higher sales volumes. According to McKinsey, FMCG firms worldwide allocate about 20% of their annual revenue to trade promotions and schemes. By leveraging the right trade schemes, FMCG companies can unlock substantial growth opportunities and achieve sales figures that far exceed their expectations.
However, the effectiveness of these schemes hinges on meticulous management. Without proper control, businesses risk overspending and potential financial losses. Additionally, ineffective scheme management can erode your competitive edge, making it crucial to have a robust system in place.
This blog highlights the importance of scheme budgeting and explores various types of budget controls you can implement to prevent overspending and boost your sales. But before we begin, let’s first understand the necessity of scheme budgeting.
Promotional schemes, while essential for stimulating sales and incentivizing distributors, can become financial liabilities if not controlled properly. Unchecked spending can lead to budget overruns, putting financial strain on organizations.
This is where scheme budgeting comes into play. It helps you in:
Botree DMS provides a seamless, efficient way to manage your trade schemes and transactions, ensuring smooth operations and an enhanced user experience. By maximizing financial control, maintaining business security, and staying ahead in the competitive FMCG market with Botree DMS, you can ensure sustainable growth and success.
The Scheme Budget feature in Botree Distribution Management Software (DMS) empowers leaders in FMCG, Pharma, and CPG companies to manage these schemes with precision by setting predefined rules. Schemes can be configured and managed based on various criteria such as budget limits, time frames, or at distributor level. When the set criteria are met, the scheme is automatically deactivated.
Botree DMS offers three robust scheme budgeting options:
1. Scheme Level Centralized Budget
This option allows you to set a financial cap for each promotional scheme. For instance, consider a nationwide campaign with a budget cap of ₹50,00,000. As distributors across various regions participate, the budget gets utilized. Once the ₹50,00,000 is exhausted, the scheme is automatically deactivated, ensuring financial discipline and preventing any further expenditure.
Example: Imagine launching a product promotion across multiple states. With a centralized budget of ₹50,00,000, you can track spending in real-time. Once the cap is reached, the scheme stops, maintaining your budgetary limits and preventing overspending.
2. Unlimited Budget (Time-bound)
This option allows you to define specific start and end dates for your promotional schemes with an unlimited budget. The scheme runs only within the designated time frame and is deactivated once the period expires, ensuring timely execution and control. This is ideal for long-term customer engagement strategies where consistent participation is crucial, such as loyalty points programs.
Example: For a loyalty points program running throughout the year, you can set the scheme to be active from January 1 to December 31, with no financial cap. This ensures continuous customer engagement without worrying about budget constraints, fostering long-term loyalty and retention.
3. Distributor Level Budget
This option lets you allocate budgets based on individual distributor sales targets. For instance, Distributor A might have a budget of ₹80,000, while Distributor B has ₹60,000. Each distributor can utilize the scheme until their respective budgets are exhausted, ensuring tailored financial control and fair resource distribution.
Example: If Distributor A has a higher sales target, they receive a larger budget. This approach ensures that each distributor has the necessary resources to meet their goals without exceeding their allocated budget, promoting equity and focused resource management.
Botree DMS’s Scheme Budget feature ensures effective management and control of promotional activities, helping you maximize financial control and achieve better sales outcomes. Whether you are managing a large-scale national campaign or specific regional promotions, Botree DMS provides the tools you need to stay ahead in the competitive FMCG market.
By integrating these budgeting options, you can streamline your promotional strategies, enhance distributor relationships, and maintain robust financial health.
Meet Mr. Vinit Kumar, Product Owner and a seasoned IT professional with over a decade of diverse experience in solutions like DMS, SFA, CRM, and ERP. His expertise lends a fresh perspective to product management. Having spearheaded multiple products & projects, his collaboration with Botree aims to propel product innovation to new heights.
