In order to quantify the intangibles and incentives to the multi brand dealers (dealers who stock multiple goods as well as competing brands) and the associated channel members, a Company(X) formulates a point score card, which is called as brand building points. This brand building point is added to the sales target achieved points for redemption. The sales target achieved point is allotted as per the table 3 of this question. The sum of brand building point and sales achieved points is the total point that can be redeemed by the dealer against certain goods, as shown in the second table.
The detail of the system is shown in the tables below
There are 10 multi brand dealers in Nasik and the sales that they have achieved in the end of a quarter are:
Malling Enterprise exhausted all its points while redeeming three Nike Caps and an Umbrella, what is its brand building points?
Total point earned by Malling Enterprise through sells alone = 15+(24000-23000)*0.25 = 265.
Points required to avail three Nike Caps and an Umbrella = 3*100+40 = 340.
Hence, Malling Enterprise must have earned through brand building activities = 340 - 265 = 75.
Create a FREE account and get:
- All Quant Formulas and shortcuts PDF
- 170+ previous papers with solutions PDF
- Top 5000+ MBA exam Solved Questions for Free
