Name-Atharva Uppalwar

Roll no -60

Sales Incentive Framework

Perspective and types of incentives

1)In the fast-moving consumer goods (FMCG) industry, incentive plans are pivotal tools to drive
employee performance, aligning individual goals with organizational objectives. Various types of
incentive plans cater to the unique dynamics of this fast-paced sector, where competitiveness, sales
targets, and operational efficiency are paramount.

2)One prevalent incentive in the FMCG industry is performance-based bonuses. These bonuses are
tied directly to individual or team achievements, whether it's meeting sales targets, improving
production efficiency, or exceeding quality standards. By linking financial rewards to specific
accomplishments, employees are motivated to consistently perform at their best. This not only
boosts morale but also ensures a direct correlation between effort and compensation.

3)Sales commissions are another widely used incentive in the FMCG sector. Given the industry's
emphasis on revenue generation, offering commissions to sales teams provides a clear incentive to
drive product sales. Commission structures can be tiered, encouraging higher levels of performance
with increased rewards for surpassing sales quotas. This approach not only motivates sales
professionals but also directly contributes to the company's bottom line.

4)Profit-sharing programs are gaining popularity in the FMCG industry as well. These plans distribute
a portion of the company's profits among employees, fostering a sense of collective ownership and
teamwork. When employees see a direct link between their efforts and the company's financial
success, it creates a shared commitment to achieving and maintaining profitability. Profit-sharing
plans can enhance collaboration and a collective sense of responsibility, critical in an industry where
team dynamics significantly impact overall performance.

5)Recognition programs also play a crucial role in the FMCG sector. Acknowledging and celebrating
individual or team accomplishments contribute to a positive work environment. In an industry where
quick decision-making and rapid execution are essential, recognizing and appreciating employees'
efforts can boost morale and maintain a high level of motivation. Non-monetary incentives, such as
employee of the month awards, public recognition, or opportunities for career advancement, are
effective ways to engage and retain talent.

6)Career development opportunities serve as a unique incentive in the FMCG industry. Employees in
this sector often seek roles that offer growth potential and diverse experiences. Providing training
programs, mentorship initiatives, and clear paths for career progression can be powerful incentives.
The promise of professional development not only attracts top talent but also retains existing
employees who are eager to advance their careers within the organization.

The example of the company which I have taken is Doms Industries Limited which is India’s fastest
growing stationery products company. The company’s incentive structure is categorized into 2
categories
Primary sales structure

% Sales Amount
90%-95% 21000
96%-100% 24000
101%-105% 27000
106%-110% 30000
120%+ 33000

Secondary Sales Structure

% Sales Amount
90%-95% 7500
96%-100% 12500
101%-105% 17500
106%-110% 22500
120% 27500

Sales Review and reporting system in DOMS

Sales Representative Name Employee Id Territory/Area

Information
Route Visit Frequency Planned Visits
Working Hours Total Hours worked Breakdown of working
hours
Outlet Coverage Total Outlet Visited Buying outlets Non buying outlets
SKU performance Total SKU available Unique line billing
Primary Sales Total Primary Sales Growth/decline in
primary sales
Secondary Sales Total Secondary Sales
Feedback from Retailer Feedback Specific requests or
retailers concerns
Next Week Plans Planned route visits Focus areas of Upcoming events or
improvement Promotions
Approval Signature of Manager Date

Key Data Analysed by the Sales Manager:

1)Daily sales volume and value by product, category, and brand: Identify best-selling items and
potential underperformers.

2)Inventory levels at different distribution channels Ensure product availability and prevent
stockouts.

3)Promotion effectiveness and return on investment: Evaluate the impact of marketing campaigns
and optimize spending.

4)Market share trends and competitor activity: Track industry dynamics and adjust strategies
accordingly.
5)Performance of new product launches: Measure success and make adjustments to marketing and
sales approaches.