Managing Schemes, Trade Discounts & Margins

Welcome to this lecture on Managing Schemes, Trade Discounts & Margins, part of the comprehensive course FMCG Sales Fundamentals & Field Distribution. In the fast-paced world of Fast-Moving Consumer Goods, trade promotions and pricing incentives are vital tools used to drive volume, secure retailer commitment, and move inventory through the distribution channel effectively. This session explores how various financial incentives are structured, calculated, and executed directly in the field. You will learn how manufacturers balance aggressive sales targets with margin protection to ensure that trade promotions stimulate demand without eroding overall profitability for either the brand or its channel partners. By the end of this lecture, you will understand the mechanics behind trade promotions, how to prevent scheme leakage during settlement cycles, and the distinct roles that retailer and distributor margins play in maintaining a healthy, motivated supply chain. Key topics covered in this lecture: Trade Promotions and structural objectives Volume Discounts and Quantity Purchase Schemes (QPS) Cash Discounts and settlement cycles Retailer and Distributor Margins Scheme Leakage Prevention and field execution