What has been the most interesting sales promotion you have engineered so far?
The most interesting and unique sales promotion that we have rolled out has been a programme called 'Sajhedari Vishwas Bhari', and as the name suggests, this is a circle of trust between Videocon Telecom and its channel partners. Under the programme, we offered valuable gifts including Videocon LEDs, LCDs and other branded consumer durables.
Unlike any other conventional scheme where gifts/prizes are offered post the completion of the scheme period and the achievement of targets etc, here these gifts were offered to the participating retailers at the time of enrolment itself, with no strings attached and no documentation whatsoever.
The basic premise of the programme was 'trust'. These gifts were extended over and above the regular margins and commissions of the channel partners, thus offering the highest incentive per activation in monetary value across the industry for Videocon's retailer base.
The programme rolled out in March 2013 and, as we speak, given the popularity and success of the programme, Videocon Telecom has rolled out the third phase of the programme and this time, with over 30,000 retailers are participating in the programme.
Who is the primary target for the promotion?
Telecom sales happen through a widespread retail network. These retail outlets are multi-brand outlets. In other words, these outlets sell products of almost all service providers. Here, trade recommendation plays a very important role. There is a saying, 'jo dikhta hai woh bikta hai' (what you see is what you get). In telecom, the saying gets a little more extended - 'jo dikhta aur recommend hota hai, woh bikta hai'. This was precisely the primary target audience for the promotion - our retailers, who gave their recommendations.
Why was the promo designed in such a manner?
We believe in sharing our success with our partners, and that was the integral part of the programme design. For Videocon Telecom, earning retailer trust at all the levels is very important, as they are the lifeline of our business. This initiative acknowledges the trust, support and contribution that they have put in the brand over the years. This retailer programme was designed to ensure maximum reach of the brand and to take our consumer commitment to newer heights.
Further, when the telecom industry went through a regulatory setback with the 2G scam, we had to abruptly shut down our operations, which actually left behind a whole bunch of channel related issues. And when we made a comeback, it was imperative that we win back the confidence of our channel partners and give them some instant gratification, which formed the basic premise of the programme.
What were the challenges?
The challenges were huge, right from the time of conceptualising the scheme to getting internal management approvals since the gifts were being extended upfront and there is a risk of non-performance from retailers. Then, there were huge logistics involved in terms of delivering gifts to the retailers since we are talking of 30,000 retailers who have enrolled for the scheme. So in all, it was quite a challenging task from conceptualisation to implementation.
What was the impact of these schemes on the sales and the brand?
This programme became extremely popular which not only helped build retailer confidence but also created consumer pull. When the programme was launched, the industry growth was stagnant. But Videocon clocked an impressive 15 per cent growth in subscriber addition and revenues. Our unique activating outlets increased by 14 per cent between February and July 2013 and further by 19 per cent from July till now.
Gross additions saw a phenomenal growth of 37 per cent as compared to the previous quarter. Recharging outlets grew by 12 per cent during this time. All enrolled retailers had consented on in-shop branding which we provided in a customised format. This helped increase our brand's visibility to a great extent.
Don't sales promotions harm a company/brand in the long term?
Today, sales promotions are among the most essential retailer engagement initiatives with which brands can connect effectively with the audience, and can ensure long lasting relationships. Typically, in the service industry, where retailers or the trade channel play the most important role in customer lifecycle management, sales promotions become an integral part of business. We will be in this business for years and will be dealing with the same set of channel partners for years to come. It is more of a mutual business dealing. So it is important to keep your partners engaged and gratified.
'Sajhedari vishwas bhari'
Aim
To win back the confidence of our channel partners and give them some instant gratification, post the setback of the 2G scam in the telecom industry
Target
Our network of retailers
Plan
We offered gifts including Videocon LEDs, LCDs and other branded consumer durables. Unlike any other conventional scheme where gifts/prizes are offered post the completion of the scheme period and achievement of targets etc, here these gifts were offered to the participating retailers at the time of enrollment itself
Outcome
Videocon clocked an impressive 15 per cent growth in subscriber addition and revenues. Our unique activating outlets increased by 14 per cent between February and July 2013 and further by 19 per cent from July till now. Gross additions saw growth of 37 per cent as compared to the previous quarter
Arvind Bali
Director & CEO, Videocon Telecom
