EMPERIO Marketing Lab
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Improve distributor incentives in Kanpur

Kanpur, Uttar Pradesh · Fictional practice case

The decision

A distributor gets bonuses for shipments. It shipped 10,000 packs but retailers sold 7,000. A trial bonus pays ₹2 on verified incremental sell-through above 7,000, capped at 2,000 packs. Contribution before the bonus is ₹7 per extra pack.

How should the brand pay for growth without encouraging excess stock?

Worked solution

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Case at a glance
10,000 packs shipped. 7,000 packs sold to shoppers. ₹5 contribution per incremental qualifying pack
  1. Audit beginning inventory, retailer sales and returns. Confirm that the baseline accounts for seasonality and outlet coverage.
  2. At 1,500 verified extra sales, the bonus costs ₹3,000 and incremental contribution is ₹10,500 before the bonus, or ₹7,500 after.
  3. Pay on verified sell-through with aged-stock and return guardrails. Compare matched territories to detect forward purchases or falsified sales.

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