Schemes: Help Boost Business?

discounted prices for channel partners as well as end-users.

 

During the festivities, Microsoft Hardware India announced 25 promotions, Dil Chahta Hai promotions and the gaming combo packs to help its partners to maximize their business during the festivities. Sahara Computers organized a month-long “Festival Carnival” in around 50 cities across India, to help its Channel Partners to tap the wider target audience.

 

LG announced Desktop as well as Laptop scheme for partners. Similarly, IBM had also announced a Diwali blast for its registered Tier 2 Business Partners for its System x Volume/Express Server. Intel India organized a Diwali Carnival by announcing an offer on its quad core and dual core processors for its customers and channel partners. Lenovo promoted its latest Lenovo 3000 Y410 notebook. Canon also celebrated the gala of the Diwali spirit with its exciting offers. Xbox 360 along with Panasonic launched “Super Stylish Super Saver offer”. TVS Electronics announced “Navratri 2 New Year Offer”, in order to increase their partner’s base and towns.Genius announced Dhanvarsha scheme offer for the channel partners, which includes the resellers as well as the volume partners, and gives them a chance to win up to 120 gms of silver.

 

D-Link India unveiled the Empower Partner Programme for Systems Integrators (SIs) and resellers with a slew of offers and benefits. “The schemes are intended at forging closer ties with our partners and also upgrading their skill sets to enable them to move up the value chain,” said Tushar Sighat, Vice-President (Channel Business) of D-Link India.

 

He also added that to motivate channel partners and strengthen relationship between them, the company is encouraging partners to train themselves for future market and move existing partners up to generate additional revenues from the new business line.

 

Intex Technologies announced a special scheme “Buy & Win Bonanza” designed exclusively for its Structured Cabling Solutions (SCS) range. Acer India announced exclusive retail scheme called “Acer Mania”, designed specifically for their retail partners across the country for the OND 2007 quarter.

 

Cyberstar Infocom rolled out OND Q4 07 Molex promotional scheme catering to channel partners across India. BenQ introduced 

cash incentives for its channel partners on selected projector models. According to Max Hsu, Business Head (CE Division) of BenQ India, channel partners are the face of the company. Hence, the company comes up with various schemes to encourage its channel partners, at regular intervals. “The incentive schemes in addition to being a gift for the festive season is also an attempt to motivate the partners to further increase their profit margins,” he added.

 

Such promotional activities result in easy availability of products that encourage channel partners to sell and ultimately creates good buying experience. Says Geetha K.B., Product Manager, Microsoft Hardware India, “For Microsoft Hardware, channel partners are 

very important and to support them we run channel promos very regularly, which help the channel partners to sell Microsoft stocks faster and increase their overall margins. The schemes that we offer motivate our partners to sell better. It also reinforces the fact that they truly are part of the Microsoft family. Such motivations are important for our partners to constantly improve their performance. Today, Microsoft Hardware reaches out to customers across India through a network of 9,500-plus dealers/retailers in 93 cities and we are expecting to reach 100 cities soon. In addition, we will be increasing focus on the upcountry markets.” R. Manikandan, 

Business Group Head, IT Division, LG Electronics India Pvt. Ltd., said, “LG has always been a channel-friendly company with dedicated efforts towards channel health and profitability. We have always taken a lead in quicker settlement of channel schemes. We realize that partners are today looking at vendors who can enhance their profitability and LG’s channel schemes are perfect examples of that.”

 

Added George Van Der Merwe, COO, Sahara Computers, “Festive season is the best time to tap the prospective buyers. Our main focus behind such offers is to provide support to our partners and to increase our sales through addressing our target audience at the right time and educating the end-user on the technology available.”

 

Apart from various schemes, the companies also focus on introducing new products as a part of competition to offer their best to partners and users. As a festive gift to their end- consumers, ViewSonic Corp announced the launch of its new CASA series of LCDs from 17" to 22" models. With such well-drafted schemes, companies create a pull for their products, which help them sell out their stocks. “The objective behind launching such schemes is to cheer up our partners who are the largest contributor to our business all through past one year,” added Atul Jain, Country Manager, Netgear India and SAARC.

 

The index of industrial production (IIP) grew at 11.8 per cent in October 2007, bouncing back from 6.8 per cent in September. Driven by a 13.3-per cent manufacturing growth, this is the fastest in the past six months. A robust festive demand has been the key factor. This is evident from a 12.5-per cent increase in consumer goods on account of strong growth in durables as well as non-durables. Such a spectacular growth was obvious for two reasons: pre-Diwali buying buoyed demand while a low growth of 4.5 per cent in October 2006 improved the present number. The sharp rise in consumer durables growth in October partly shows a similar statistical blip, as the sales last year this time showed the traditional post-festival fall.

 

Through schemes, vendors as well as channel partners are motivated to increase their performance and gain more mileage from the sale. The schemes play a key role in not only increasing business but also increase their sales margin. The sales do spike up during the scheme periods.

 

Schemes definitely are ways of strengthening channel relationship. The vendor companies offer huge schemes to partners to increase their profitability, build better channel relationships, sell out their stocks, and give satisfaction to the end-consumer by giving them 

various choices. Not only schemes, vendor companies also support their partners in promoting the schemes. “Our channel partners are the front-end soldiers of our sales and marketing army, who are in regular touch with the customers. They are the ones who understand the finer nuances of customer preferences and the market dynamics. Our sales and marketing team members are always available to 

provide them support in terms of products, issues, etc. Special training is provided to our channel partners on the products. Also, apart from supporting partners technically, we help them by regularly advertising the products. This includes  ;POP / POS, in shop branding and ads in key publications,” informs Geetha.

 

However, despite so many promotional schemes and offers, partners feel that the festive season, commencing right from Durga Puja to Christmas, registered a downfall in the sale of IT products.

 

A technology product is sold on the basis of its strength and not on the basis of offers or channel schemes. The partners opined that sales of IT wares have not picked up post-Diwali. Marriage season too has led to a downfall, as consumers prefer giving gifts in cash or kind. A partner commented, “People prefer to buy consumer electronics or personal storage devices during festival rather than buying a technology solution.

 

Even after Diwali, market has not flourished, as expected. This can be due to the rising prices of all IT products which may not be always affordable for the customers.” Even though the market has not started booming post-Diwali despair, many vendors like Sahara Computers have already announced Christmas schemes for partners. With Christmas and New Year round the corner, it is yet to be seen whether the New Year will bring bounce to the IT market.