Case study: Case: 1. Client: An IT software client has approached NetCarrots to help them develop a channel incentive program as they are currently having issues with their current incentive / rebate programs. 2. Software is sold through boxes (which have CDs and one license) for individual customers and through ‘license packs’ (paper) for customers who require multiple licenses. The latter obviously works out cheaper on a per license basis. 3. Some of their concerns are: There is no price stability as IT Resellers tend to undercut each other to get business The rebates that they currently provide on reaching certain targets aid in this price cutting as resellers, in order to hit these targets, sell out at lower than reseller price. Schemes are run quarterly so if the client is to shift to a program which has a longer duration then it would impact their sales 4. In terms of tracking the end customer it is easy for the client to track corporate or license pack customers as these licenses are usually registered with the company. Using the program the client would like to also track individual customers. Please provide your thoughts on the following: 1. The construct/ strategy of the program (and the value proposition) 2. How would you tackle this price cutting which happens 3. Tackle the client’s concern on drop in sales if schemes are not run quarterly 4. Track and reward sales to the reseller partners including sales of boxes to end customers. Do include a slide on any assumptions that you may have