Target Based Trade Incentive Scheme

Target based scheme are promotions executed between companies and retailers. These schemes help increase retailer’s interest in selling particular brands product, which helps in increasing store’s sales share. There are multiple products on the market, and retailers have limited space on shelves to display all. It’s in retailer’s best interest to give more visibility to brands running target based scheme as this will help them achieving the targets, and earn more.


These schemes incentive can be in the form of cash discount, domestic & international tours, FOC products (free of cost), cars, bikes, electronics products, etc. However regular monthly incentive schemes carry sales percentage or free products as reward.


The brand should consider the following points while planning and executing a target based scheme:-


  • Scheme qualification targets should always be based on individual retailers potential, instead of flat targets for all
  • Sales data of past three months and seasonality factor should be considered while finalizing the targets
  • Duration of the scheme should be minimum one month to have retailers earning sizeable rewards
  • Same scheme matrix and rewards should not be repeated each month. Innovative practices help keep retailers engaged with the brand
  • To ensure the effective communication of scheme to the last leg: -


  • Have scheme well drafted on a word file and shared over the email and in hard copy form with all the stakeholders
  • To have sales team communicating the scheme effectively to retailers, a brainstorming session within the sales teams must be conducted to decide the best approach
  • Audit calls to sample size of retailers from each market is recommended to ensure that all the retailers are aware about the campaign


  • Retailers should be reminded on weekly frequency about the scheme, their current standings and gap from targets, or next slabs incase they have already qualified
  • Scheme rewards should be disbursed within 30 days as this helps earning retailers loyalty and make them more excited about doing well in ongoing schemes


Recent Case Studies