top of page
  • unotags

How should FMCG companies incentivise their Retailers


For FMCG (Fast-Moving Consumer Goods) companies, retailers play a crucial role in driving sales and reaching customers. To foster stronger partnerships with retailers, it's essential to provide effective incentives that motivate them to promote your products. In this blog post, we will explore some crisp and clear strategies that can help FMCG marketing teams incentivize their retailers effectively.

1. Volume-based Discounts:

Offering volume-based discounts is an excellent way to incentivize retailers based on their sales performance. By providing tiered discounts or rebates linked to the quantity of goods purchased within a specific period, you encourage retailers to increase their order sizes. This not only boosts your overall sales but also rewards loyal partners who consistently sell higher volumes of your products.

2. Promotional Support:

Assisting retailers with promotional activities helps drive product visibility and generates more footfall or online traffic. Offer support by providing point-of-sale materials like banners, posters, shelf talkers, or digital assets such as social media content or email templates for promoting special offers or new product launches. Additionally, consider sharing co-op advertising costs when appropriate.

3. Training Programs:

Investing in retailer training programs is a win-win situation for both parties involved—your company gains knowledgeable sellers while the retailer enhances its selling skills and customer service levels. Conduct workshops or webinars focused on educating retail staff about your products' unique features and benefits along with effective selling techniques. Consider offering certifications upon completion as an added incentive.

4. Merchandising Support:

Helping retailers improve their store displays can significantly impact product visibility and consumer interest in purchasing from those stores regularly.

- Provide attractive merchandising units tailored specifically for displaying your products effectively.

- Share planograms (visual guides indicating how products should be displayed) to optimize shelf space utilization.

- Regularly monitor stock availability at each retailer and ensure timely replenishments.

5. Rewards Programs:

Implement a rewards program that allows retailers to accumulate points or earn incentives based on their sales performance over time. These programs can offer various benefits, such as exclusive discounts, gifts, or even cashback options. Make the redemption process simple and straightforward to encourage active participation.

6. Performance-based Contests:

Organize periodic contests among retailers to incentivize them further and create healthy competition within your distribution network. Set clear objectives (e.g., highest sales growth or most innovative marketing campaign) and reward winners with exciting prizes like travel vouchers, merchandise, or recognition at industry events.

7. Timely Communication & Support:

Maintain regular communication channels with your retail partners through newsletters, personalized emails, or mobile apps to keep them informed about new product launches, promotional campaigns, market trends, and any updates relevant for their business success. Offer dedicated customer support lines for quick query resolutions.


By implementing these crisp strategies focused on volume-based discounts, promotional support, training programs,

merchandising assistance,rewards programs,

performance-based contests,timely communication & support

FMCG companies can effectively incentivize their retailers.

These tactics not only foster stronger partnerships but also drive higher sales volumes by motivating retailers towards increased promotion of your products.

Remember that each strategy should be tailored according to your specific business needs while keeping in mind the interests of the retailer community you work with.

Building successful relationships with motivated retailers translates into improved brand visibility and increased consumer reach in today's competitive FMCG landscape

2 views0 comments


bottom of page