FMCG GYAAN with M.SETHI
FMCG GYAAN What is Price Calculation & Trade Schemes in FMCG IN FMCG: From Company--Dealers/Distributors/Stockists--Whole-Salers/Retailers--Customer What are Trade Schemes Trade Schemes are usually additional support in terms of Sales Promotion or Trade Promotion or Temporary Price Reduction extended to the trade considering quite a many factors like Competitor’s Activities, Seasonality, Company’s own agenda etc. etc. Trade Schemes are of 2 types: Primary Scheme & Secondary Scheme (Not to be confused with the Primary Sale & Secondary Sale mentioned above). These schemes vary from brand to brand (of a company) and change on a monthly sometimes fortnightly basis. Just one more thing before we finally explore the pricing aspect mathematically, there are generally 2 methods by which pricing of products is done within a company: Mark-Up or Mark-Down and on that basis, the schemes, margins etc. are arrived at for its trade. The on...