Introduction to trade marketing: assignment 1

Ayaan Aziz -19043

Muhammad Maarij -19532
Product chosen: Head and shoulders
Sunsilk
Shops visited:
1. Agha Jaan superstore and general item (phase 6, dha)
At this particular store only 185 ml sku was available. Salesman from
the company distributes it to them directly. Head and shoulders are
distributed for Rs 245 and has a retail price of Rs 275, this allows a
margin of Rs 30, however sometimes the shop allows discount to its
loyal customers by selling it for Rs 260 reducing the margins to Rs
15. No trade discounts are given to the retailor as a small quantity is
purchased and no promotional activity is done by them. For sunsilk
the margins are slightly higher as it is distributed for Rs 245 but sold
for Rs 285 allowing a higher margin of Rs 40.
2. Arbaz general store (phase 6, dha)
At this store they sold head and shoulders for Rs 260 and the cost
price they would get was Rs 245, keeping their margins at Rs 15.
Whereas for sunsilk they order a large quantity hence get it at a cost
of 215 which is then sold for Rs 285 allowing a margin of Rs 70.
However, no promotion for the customer was available and no BTL
marketing was visible.

3.New lucky super store (phase 4, dha)

At this store they buy their stock directly from the company. In head
and shoulders for ordering more than 50 cartons they get a single unit
at Rs 180 which is then sold for Rs 275 allowing a margin of Rs 95.
Whereas sunsilk doesn’t provide them with trade discounts but only
larger stores that are willing to dedicate a shelf to sunsilk hence they
get it at cost price of Rs 210 and sell it at Rs 285 with a margin of Rs
75. No promotion is given to the customer and no other form of
advertisement was visible.