Advertisment

EFFECTIVENESS OF PROMOTIONAL SCHEMES?

author-image
DQC News Bureau
Updated On
New Update


Advertisment

We will not

benefit from these promotional schemes, as the vendors never consult us when they introduce such offers
PK

Sharma




CEO, Comnet Vision

Promotional campaigns are just gimmicks... 



When vendors launch promotional campaigns, it is only to sell as many products as they can. In the bargain, partners lose out.

Since these schemes are discounted, the bottomline never increases for the channel and money gets blocked. Promotional campaigns imply that the market is not growing at the rate that it should. 

Advertisment

Schemes are just a gimmick by vendors to increase their revenue and marketshare. So they push sales by offering such programs. The IT industry, for example, has been on a standstill since the last two years, whereas it should have been growing at a pace of 30%. Since this is not happening, we see vendors offering heavily discounted schemes. 

Vendors launch schemes keeping end-users in mind... 



Any type of scheme launched is done keeping the end-customers in mind. Even if the vendor runs the offer for its partners, in reality, the customer is the one who benefits. It is baseless to even think that channels will benefit from these promotional campaigns, as vendors never consult partners when they plan to introduce a scheme. All promotional offers only bring hassles to the partners and one should protest against them. 

Too many schemes at the same time...



There are too many schemes running simultaneously in the market. Vendors are afraid that the market growth is not to their liking. No vendor will allow a competitor to take away his marketshare. And so, we see all of them running separate schemes at the same time. This affects the overall market, as growth is decided by the sales achieved over a period of 12 months. At the end of the day, promotional campaigns don´t help the market to grow, as they cannot be run for a whole year.

Advertisment

Schemes decrease a partner´s profit... 



Every time there is a promotional campaign, partners are forced to accept it. There´s no choice, because if we don´t, we will lose the vendor. These schemes only increase our paperwork, manpower and squeezes the bottomline. At the end of the day, it´s a waste of money. Even if you are selling more products, they are sold at a lesser price, and the profit for partners also decreases. 

Every time there is a promotional campaign, products are sold at a brisk pace. However, immediately after the campaign, there is a dull moment. This is because customers who would have bought a product later, buys it when the scheme is going on.

Although we

don´t discuss with our partners about the offers, we conduct a study and find out

if it will benefit them
Rajeev Singh



Senior Manager - Marketing, CI & ID, Canon India
Advertisment

Partners look forward to promotional schemes...



We know that it is the channel that helps us reach the customers and we at Canon make sure that partners, along with customers, are benefited by each and every scheme. There have been many campaigns, wherein we offer partners trips to foreign locales. We bear all the expenses ­ travel, food, stay and entertainment. 

They have to only pay for their personal shopping expenses. Schemes are not aimed at pushing sales, but to reward our partners for their performance. Partners also eagerly look forward to these promotional schemes, especially when the rewards are foreign trips. They work hard to be eligible for such incentives. 

Partners are benefited by these schemes... 



Although we don´t discuss with our partners about offers that will be launched, we make a study and find out what benefits the channel. Accordingly, we introduce various schemes. In the IT industry, partners get frugal margin. These festive promotional schemes help a great deal in spiking up the sales as well as increasing the partner´s bottomline. It is not always true that we discount the product when we sell it to end-customers. We also give free gifts to users along with the product. This way both, partners as well as customers, are taken care of. 

Advertisment

Every scheme caters to a different category... 



It is important to realize that every market is very volatile and thus launching the right scheme at the right time is very important. Every offer caters to a different category. We cannot offer a scheme meant for the home segment to the corporate customers. These schemes are obviously going to be different, and hence there are so many offers in the market. This year in Q3, our growth has been the best compared to the first two quarters and we owe this growth to the numerous incentives that we are running. 

Promotional offers results in overall growth... 



It is very important to run promotional offers as it peps up the market. It´s true that after a scheme, there is a dull phase.

However, if you analyze the whole year, there has been positive growth in the market. Every time a scheme is launched by Canon, there´s been positive response both, from partners and customers. 

We aggressively promote these offers because it helps us gain more marketshare in various product categories. According to a recent IDC report, Canon enjoys 21% share in the inkjet printer segment, which is a 5% increase from the last quarter (AMJ). This only shows that how well our promotional schemes are doing. We are positive that it will keep on doing well in the future.

Advertisment