“Trade Promotion Incentive Scheme: Concept and Implementation Synergy”

Topics: Milk, Dairy product, Dairy Pages: 34 (9212 words) Published: March 26, 2011
1.0Executive Summary:

This project is a part of trade marketing. Due to increasing competition in the market, it has now become necessary to sell to the trade first so as to get space in the retailer’s shelf. Mother Dairy Fruits & Vegetables Private Limited launches many trade promotion activities and schemes.

As the summers approached and schools and colleges in Delhi/NCR were to close for the summer vacations along with many government offices, it was likely for the milk sales to fall. To retain the sales of Poly Pack Milk, Mother Dairy proposed an incentive scheme to the Retailers, Wholesale Dealers and Home Delivery Agents that sold Mother Dairy milk.

The scheme was proposed in all regions of Delhi/NCR. The offer given was of an additional incentive of up to [pic]1.5 per liter for volumes of milk converted from other competitor brands like Amul, Paras, Gopaljee, etc., to Mother Dairy. The scheme was available for a period of 30 days for each enrolled customer. The project included two aspects, understanding the concept of trade promotional activities and the implementation of the same. 386 retailers were enrolled in the scheme from all over Delhi/NCR. Daily sales data were collected and the incentives were reimbursed. On analyzing the outcome of the incentive scheme it was observed that the scheme was not very effective in retaining the volume of milk sales as compared to the non-vacation period. But it may be assumed that the scheme helped in retaining some amount of the milk sales. Milk being a perishable commodity cannot be stored for long. And so during vacations, it is obvious and natural for the sales to drop and so retaining milk volumes even with a scheme is quiet difficult. As a recommendation to the organization, revised schemes are proposed at the end of the project report. Since complete retention of milk sales may not be possible, the organization may need to revise the existing incentive scheme to cater to key retailers selling Mother Dairy milk or to cater to a large number of retailers so as to retain a major part of the milk sales. Since other than extra incentives, no other offer may attract the retailers/ wholesale dealers during vacations, it is advisable that the organization continues with the incentive scheme with efficient implementation and improved monitoring. 2.0Indian dairy Industry

Traditionally, In India dairying has been a rural cottage industry. Semi-commercial dairying started with the establishment of military dairy farms and co-operative milk unions throughout the country towards the end of the nineteenth century. In earlier years, many households owned their own ‘family cow’ or secured milk from a neighbor who had one. With the increase in urban population fewer households could afford to keep a cow for private use and moreover there were other problems also like the high cost of milk production, problems of sanitation, etc. Gradually the family cow in the city was eliminated and city cattle were all sent back to the rural areas. Gradually farmers living near the cities took advantage of their proximity to the cities & began supplying milk to the urban population; this gave rise to fluid milk-sheds we see today in every city of our country. Prior to 1850s most milk was necessarily produced within a short distance of the place of consumption because of lack of suitable means of transportation and refrigeration. The Indian Dairy Industry has made rapid progress since independence. A large number of modern milk plants and product factories have been established. These organized dairies have been successfully engaged in the routine commercial production of pasteurized milk and dairy products. With modern knowledge about the protection of milk during transportation, it became possible to locate dairies were land was less expensive and crops could be grown more economically. Today India with approximately 134mn cows and 125mn buffaloes has the largest population of cattle in the...
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